HomeMy Public PortalAboutBrewster 2003 Report on Examination of Basic Financial Statements TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
JUNE 309 2003
TOWN OF BREWSTER, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENT
JUNE 30 , 2003
TABLE OF CONTENTS
PAGE
Independent Auditor ' s Report 1
Management' s Discussion and Analysis 2 - 8
Basic Financial Statements
Statement of Net Assets 9
Statement of Activities 10 - 11
Governmental Funds — Balance Sheet 12
Governmental Funds — Statement of Revenues , Expenditures , and 13
Changes in Fund Balances
Reconciliation of the Governmental Funds Balance Sheet Total 14
Fund Balances to the Statement of Net Assets
Reconciliation of the Statements of Revenues , Expenditures , and 15
Changes in Fund Balances of Governmental Funds to the
Statement of Activities
General Fund — Statement of Revenues , Expenditures, and 16
Changes in Fund Balance — Budget and Actual
Proprietary Funds — Statement of Net Assets 17
Proprietary Funds — Statement of Revenues, Expenses , and 18
Changes in Fund Net Assets
Proprietary Funds — Statement of Cash Flows 19
Fiduciary Funds — Statement of Fiduciary Net Assets 20
Fiduciary Funds — Statement of Changes in Fiduciary Net Assets 21
Notes to Basic Financial Statements 22 — 52
R. E . BROWN & COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
25 CEMETERY STREET — P. O . BOX 230
Mendon, Massachusetts 01756
Phone : (508) 478 -3941 Fax : (508) 4784779
INDEPENDENT AUDITOR' S REPORT
To the Honorable Board of Selectmen
Town of Brewster, Massachusetts
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
Town of Brewster, Massachusetts, as of and for the year ended June 30, 2003 , which collectively
comprise the Town ' s basic financial statements as listed in the table of contents . These financial
statements are the responsibility of Town of Brewster, Massachusetts , management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis , evidence supporting the amounts and disclosures in the
financial statements . An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions .
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the Town of Brewster,
Massachusetts, as of June 30 , 2003 , and the respective changes in financial position and cash
flows , where applicable, thereof for the year then ended in conformity with accounting principles
generally accepted in the United States of America .
As described in Note 14 , the Town of Brewster, Massachusetts has implemented several
Governmental Accountinz Standards Board Statements, which changed the beginning fund equity
position of several funds and established net assets for governmental activities and business type
activities .
The management ' s discussion and analysis located on pages 2 through 8 , is not a required part of
the basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures ,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit the information
and express no opinion on it.
91. E. J9wt tcC an*
March 17 , 2005
Management ' s Discussion and Analysis
As management of the Town of Brewster (the "Town"), we offer readers of these basic financial statements this
narrative overview and analysis of the financial activities for the fiscal year ended June 30, 2003 . This is the first
year our financial statements have been prepared under the Governmental Accounting Standards Board Statement
Number 34 — Basic Financial Statements and Manajzement 's Discussion and Analvsis for State and Local
Governments . This new reporting model represents a major change when compared to prior financial statements .
We encourage readers to consider the information presented in this report. Because the Town implemented new
reporting standards in the current fiscal year, much of the information is not easily comparable to prior years .
However, in future years , comparisons will be more meaningful in understanding the Town ' s financial position
and the results of its operations .
Financial Highlights
• The assets of the Town exceeded its liabilities at the close of the fiscal year by $ 62 . 4 million (net assets) . Of
this amount, $ 16 million is considered unrestricted (unrestricted net assets) .
• The unrestricted net assets of the Town' s governmental activities are $ 12 . 5 million and may be used to meet
the government ' s ongoing obligations to citizens and creditors . The unrestricted net assets of the Town ' s
business-type activities are $ 3 . 5 million, of which $2 . 7 million may be used to meet the ongoing obligations
of the Town ' s water business-type activities and $ 800 thousand for the Town ' s golf department business-type
activities .
• The government ' s total net assets increased by $2 . 7 million, or 4 . 51 %, in fiscal 2003 . Within this total, net
assets of governmental activities increased by $2 million, a 3 . 38 % increase from fiscal 2003 . Also, net assets
of business -type activities increased by $700 thousand or 1 . 13 % from 2003 .
• At June 30, 2003 , the Town ' s governmental funds had a combined ending fund balance of $ 11 million. A
total of $ 9 . 4 million, or 85 % of the $ 11 million fund balance is considered unreserved at June 30, 2003 .
• The Town ' s general fund reported a fund balance of $4 . 6 million at the end of fiscal 2003 . The unreserved
fund balance for the general fund was $ 3 . 1 million or 13 . 1 % of total general fund expenditures . A total of
$460 thousand of the unreserved fund balance was designated for funding the fiscal year 2005 budget.
• The total cost of all Town services for fiscal 2003 was $28 . 7 million, $ 24 . 6 million of which was for
governmental services , and $4 . 1 million of which was for business-type activities .
• The Town issued a state house note in the amount of $285 ,000 for road betterments . Total principal
redemptions were $ 1 . 68 million, of which $ 1 million was in the governmental activities and $ 668 thousand
was in the business-type activities .
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Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town ' s basic financial statements .
These basic financial statements are comprised of three components :
1 . Government-wide Financial Statements
2 . Fund Financial Statements
3 . Notes to the Basic Financial Statements
Government-wide Financial Statements — The government-wide financial statements are designed to provide
readers with a broad overview of finances, in a manner similar to private-sector business .
The statement of net assets presents information on all assets and liabilities , with the difference between the two
reported as net assets . Over time, increases or decreases in net assets may serve as a useful indicator of whether
the financial position is improving or deteriorating .
The statement of activities presents information showing how the government ' s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs , regardless of the timing of related cashflows. Thus , revenues and expenses are reported in this
statement for some items that will only result in cash flows in future periods , (e . g. , uncollected taxes and earned
but unused vacation/sick leave) .
Both of the government-wide financial statements distinguish functions that are principally supported by taxes
and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a
significant portion of their costs through user fees or charges (business-type activities) . The governmental
activities include general government, public safety, education, public works , human services, culture and
recreation, employee benefits, debt service, and state and county assessments . The business-type activities
include water and golf department services .
Fund Financial Statements — A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives . Fund accounting is used to ensure and
demonstrate compliance with finance related legal requirements . All of the funds can be divided into three main
categories : governmental funds, proprietary funds and fiduciary funds .
Governmental Funds — governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements . However, unlike the government-wide
financial statements , governmental fund statements focus on near- term inflows and ou flows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information
may be useful in evaluating a government ' s near-term financing requirements .
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements . By doing so , readers may better understand
the long-term impact of the government ' s near-term financing decisions . Both, the Governmental Funds Balance
Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances provide
a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Town of Brewster adopts an annual appropriated budget for its general fund . A budgetary comparison
statement has been provided for the general fund to demonstrate compliance with this budget.
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Pronrietary 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 statement, as the resources of
those funds are not available to support the Town' s own programs . The accounting used for fiduciary funds is
much like that used for proprietary funds .
Private-purpose trust funds and agency funds are each reported and combined into a single, aggregate presentation
in the fiduciary fund financial statements under the captions "private purpose trust funds " and "agency funds" ,
respectively.
Notes to the basic financial statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements .
Government-wide Financial Analysis:
This is the first year that the Town has presented its financial statements in conformance with Government
Accounting Standards Board (GASB) Statements 34, 37 , and 38 . This new reporting model has dramatically
changed the presentation of the Town ' s financial data; therefore, comparative information is not provided .
Comparative information will be provided in all subsequent fiscal years .
The chart on the following page summarizes key financial components of the Town' s financial statements .
As noted earlier, assets exceed liabilities by $ 62,444, 088 at the close of fiscal year 2003 , The Town is able to
report positive balances in all categories of net assets, both for the government as a whole, and for its separate
governmental and business-type activities .
The largest component of the Town ' s net assets are its investment in capital assets (e . g. , land, buildings,
infrastructure, machinery, and equipment) , less any related outstanding debt used to acquire those assets, is
$43 ,470 , 547 , or 69 . 62% of total net assets . The Town uses these capital assets to provide services to citizens ;
consequently, these assets are not available for future spending . Although the investment in the Town' s capital
assets is reported net of its related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources , since the capital assets themselves cannot be used to liquidate these liabilities .
The second largest component of the Town' s net assets are its unrestricted net assets totaling $ 16 ,029 ,546
(25 . 67%) , which may be used to meet the government' s ongoing obligations to its citizens and creditors .
An additional portion of the net assets totaling $ 2, 943 ,995 (4 . 71 %) represents resources that are subject to
external restrictions on how they may be used.
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TOWN of BREWSTER - FINANCIAL HIGHLIGHTS
Total
Governmental Business-type } Primary
Activities Activities Government
3
FY 2003 FY 2003 FY 2003
Assets :
Current Assets $ 14 ,816 , 108 - $ 3 ,695 ,557 I - $ 18,5119665
Noncurrent Assets (excluding capital) 7, 125,648 10, 130 I 71135,778
Capital Assets 43,380 ,501 19 , 159,783 I 62,540,284
Total Assets 65,322 ,257 22 ,865,470 j j 88, 1871727
Liabilities : I
Current Liabilities (excluding debt) 1 ,629 ,004 179,632 1 ,808 ,636
Noncurrent Liabilities (excluding debt) 1 ,350,000 11350 ,000
Current Debt 1 ,053, 108 662,792 1 ,715 ,900
Noncurrent Debt 9 ,079 , 103 11 ,790,000 209869 , 103
Total Liabilities 13, 111 ,215 ! 12,632,424 1 25,743 ,639
a
Net Assets :
Capital Assets Net of Related Debt 36,763 ,556 6,7061991 43 ,4709547
Restricted 2,943 ,995 - - - 1 2 ,943 ,995
Unrestricted 12,503 ,491 31526 ,055 � " 1 16,029$ 46
Total Net Assets $ 52,211 ,042_) $ 10,233,046 ( $ 62 ,444 ,088
I !
Revenues
Program Revenues:
Charges for Services $ 11638,824 $ 5 ,5241274 $ 7 , 163 ,098
Operating Grants and Contributions 2 ,843 ,060 22,685 i 2 ,865 ,745
Capital Grants and Contributions 1 ,074 ,910 15,400 1 ,0900310
General Revenues:
Real Estate and Personal Property Taxes 17,477,607 17,477,607
Tax Liens 98 ,492 - - - 98 ,492.00
Motor Vehicle and Other Excise Taxes 1 ,239 ,263 - 1 ,239 ,263
Hotel/Motel Tax 5349273 - I 534 ,273
Penalties and Interest on Taxes 125,015 1259015
Payments in Lieu of Taxes 6,587 61587
Nonrestricted Grants and Contributions 560 ,823 560 ,823
Unrestricted Investment Income 180,423 - 180 ,423
Other Revenues 62,025 - { 62,025
Total Revenues 25,841 ,302 5,562,359 31 ,403 ,661
Expenses:
' j
General Government 21203 ,015 21203 ,015
Public Safety 31556,433 39556,433
Education 12,692,529 - - I 12,692,529
Public Works 1 ,820, 173 i j 11820 , 173
Human Services 443,695 - k 443 ,695
Culture and Recreation 711 ,918 711 ,918
Employee Benefits 2,296 ,289 - ! 21296 ,289
State and County Assessments 381 ,006 - _� 3810006
Interest 540,420 - ; 5402420
Golf - 2,824 ,694 2 ,824 ,694
Water - 1 ,236,225 112360225
Total Expenses 24 ,645,478 1 4 ,0601919 j 28,706,397
Transfers 825,096 (825$096) ( -
Change In Net Assets 2,0201920 - 676,344 . 21697 ,264
Net Assets - Beginning 50 , 190 , 122 9,556,702 59,746,824
Net Assets - Ending $ 52, 211 ,042 1 - $ 10,233,046 $ 62 ,444 ,088
Financial analysis of the Government 's Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements .
Governmental funds — The focus of governmental funds is to provide information on near-term inflows , outflows ,
and balances of spendable resources . Such information is useful in assessing financing requirements . In
particular, unreserved fund balance may serve as a useful measure of a government ' s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of
$ 10 ,997, 155 , a $ 1 . 8 million increase from the prior year ' s ending fund balance .
The general fund is the primary operating fund. At the end of the current fiscal year, unreserved fund balance of
the general fund was $3 , 144, 509 , while total fund balance stood at $4, 637 , 894 . As a measure of the general
fund ' s liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund
expenditures . Unreserved fund balance represents 13 . 1 % of total general fund expenditures , while total fund
balance represents 19 . 3 % of that same amount.
The stabilization fund has accumulated a fund balance of $ 1 , 688 ,766, which represents 7 . 1 % of general fund
expenditures . These funds can be used for general or capital purposes upon Town Meeting approval.
General Fund Budget Highlights
During the fiscal year the operating budget was amended by $772, 594 at two Special Town Meetings to fund
wage settlements , revaluation, fringe benefits , snow and ice , land acquisition, capital equipment purchases and
repairs for education, public safety and public works , and road maintenance and drainage projects . The Town
budgeted $22 . 2 million in revenues and $ 25 .2 in expenditures, drawing on transfers and prior year ' s surplus to
finance the difference . At year end, $ 532 ,211 of unexpended appropriation balances was closed out to
undesignated fund balance .
Capital Asset and Debt Administration
Capital Assets - In conjunction with the operating budget, the Town annually prepares capital budgets for the
upcoming fiscal year.
The Town ' s investment in capital assets for governmental and business type activities, as summarized below, as
of June 30, 2003 , amounts to $ 62 , 540,284, net of accumulated depreciation. The investment in capital assets
includes land, buildings , capital improvements , machinery and equipment, vehicles , infrastructure, and
construction in progress .
The governmental activities capital assets (net of accumulated depreciation) were increased by $ 66 ,703 during the
current fiscal year while the business -type activities capital assets (net of accumulated depreciation) were
increased by $ 126 , 105 . Total depreciation was $ 1 . 6 million, resulting in a total government-wide increase to
capital assets (net of accumulated depreciation) of $ 192 , 808 .
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Capital Assets
(Net of Depreciation)
I ,
Total
Govemmental Business-type I Primary
Activities { Activities I Government
FY 2003 i FY 2003 ( FY 2003
Land $ 26,515,312 } $ 2,874,212 $ 29,389,524
Buildings 12,714,568 I 2,187,513 14,902,081
Capital Improvements (other than buildings) 26,425 26,425
Machinery , Equipment, and Vehicles 1 ,472,800 3 878,274 21351 ,074
Infrastructure 2,2291509 9,672,845 11 ,902,354
Construction in Progress 421 ,887 3.546.939 y 31966,826
Total Capital Assets $ 43,3801501 I $ 19,159,783 i i $ 62,540,284
Long Tern: Debt - Outstanding long-term debt, as of June 30 , 2003 , totaled $22 ,485 ,003 , Within this total,
business -type activities have debt of $ 12 ,452,792 that is fully supported by their respective program revenues, and
governmental activities debt is $ 10,032 ,211 . Total debt consists of the following :
Long Term Debt at Year End
Outstanding
Governmental Activities June 30 , 2003
Punkhorn Land $ 23 ,632
Land Acquisition 17, 192
School Construction 61 ,488
Land Acquisition 1193896
School Construction 5 ,5000000
Library Construction 650,000
MWPAT Title V - Sewer 187 ,003
Road Betterments - Blueberry Rd. 93 ,000
Road Betterments - Beach Plum Rd. 105 ,000
Police Station 21890,000
Road Betterments - Highlands Rd. 100,000
Road Betterments - Millstone Rd. 285 ,000
Total Governmental Activities $ 10,032 ,211
Outstanding
Business-type Activities June 30, 2003
Golf Course $ 462424
Water Well 11 ,368
Golf Course 8 ,955 ,000
Water Mains 2,585 ,000
Telemetry System 145 ,000
Water Betterments - Sears Rd. 20,000
Water Betterments - Williams Drive 40,000
Standpipe #2 6509000
Total Business-type Activities $ 12,452,792
Grand Total All Long-Term Debt $ 22,485 ,003
Please refer to Notes 5 and 8 for further discussion of the major capital and debt activity .
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Economic Factors and Next Year ' s Budgets & Rates
• The estimation of State local aid funding was reduced by $ 50,000 . The town increased the estimated
local receipts by $ 125 ,000, which included new inspection fee revenues of $25 ,000
• Health care costs continued to rise , absorbing a portion of the new growth revenues .
• The fiscal 2003 tax rate was set at $ 7 . 79 , which represents a $2 . 90 decrease over fiscal 2002 .
• The Board of Selectmen voted during their classification hearing to maintain the same tax rate for all
classes of property.
• During fiscal 2003 the Town authorized borrowing for two real estate land acquisition, the rehabilitation
of the water standpipe number 1 and a private road betterment project.
• The Town obtained a Proposition 2 '/2 override, creating two (2) Firefighter positions .
• The town voted a transfer of $ 150 , 000 into the town' s stabilization fund in FY 03 .
• New Growth Revenues were certified at $491 , 041 .
• The town funded $ 1 . 7 million for Roof Repairs at the Elementary School from available resources (i . e . ;
stabilization fund, free cash and other available funds) . The town secured school building assistance,
which will reimburse the Town approximately $700 thousand .
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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TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF NET ASSETS
JUNE 30 , 2003
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS -TYPE
ACTIVITIES ACTIVITIES TOTAL
ASSETS
CURRENT :
CASH AND SHORT-TERM INVESTMENTS $ 10 ,931 , 101 $ 31531 , 781 $ 14 ,462, 882
INVESTMENTS 19603 ,416 - 11603,416
RECEIVABLES , NET OF ALLOWANCE FOR UNCOLLECTIBLES :
REAL ESTATE AND PERSONAL PROPERTY TAXES 180 , 383 180, 383
TAX LIENS 396 , 368 396,368
MOTOR VEHICLE EXCISE TAXES 69 ,927 69 ,927
USER FEES 94 ,402 94 ,402
DEPARTMENTAL AND OTHER 391 , 994 391 ,994
INTERGOVERNMENTAL 1 , 1971347 11197 , 347
SPECIAL ASSESSMENTS 45, 572 69 , 374 114 , 946
NONCURRENT :
RECEIVABLES , NET OF ALLOWANCE FOR UNCOLLECTIBLES :
INTERGOVERNMENTAL 61919 , 056 61919 ,056
SPECIAL ASSESSMENTS 206 , 592 10 , 130 216 ,722
CAPITAL ASSETS , NET OF ACCUMULATED DEPRECIATION 43 , 380 , 501 19 , 1591783 6295409284
TOTAL ASSETS 65 ,322 ,257 22 , 865 ,470 88, 187 , 727
LIABILITIES
CURRENT:
WARRANTS PAYABLE 11393 , 182 87 , 118 11480 , 300
RETAINAGE PAYABLE 17 ,479 - 17 ,479
OTHER LIABILITIES 66 , 542 13 , 253 79 , 795
ACCRUED INTEREST 101 , 801 79,261 181 , 062
BONDS AND NOTES PAYABLE 11053 , 108 662 ,792 11715 ,900
LANDFILL POSTCLOSURE CARE COSTS 50 ,000 - 50 ,000
NONCURRENT:
BONDS AND NOTES PAYABLE 91079 , 103 11 , 790 ,000 20 , 8691103
LANDFILL POSTCLOSURE CARE COSTS 11350 ,000 11350 ,000
TOTAL LIABILITIES 13 , 111 , 215 12 ,632 ,424 25 ,743 ,639
NET ASSETS
INVESTED IN CAPITAL ASSETS , NET OF RELATED DEBT 36 , 763 , 556 6 ,706 , 991 43 ,4701547
RESTRICTED FOR:
STREETS 531 , 839 - 531 , 839
PERMANENT FUNDS :
EXPENDABLE 78, 734 78 , 734
NONEXPENDABLE 84 , 588 84 ,588
OTHER PURPOSES 2 ,2481834 2 ,2481834
UNRESTRICTED 12 , 503 ,491 3 , 526 , 055 16 ,029, 546
TOTAL NET ASSETS $ 52 ,2111042 $ 10 , 233 ,046 $ 62 ,444, 088
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30,2003
PROGRAM REVENUES
OPERATING CAPITAL
CHARGES FOR GRANTS AND GRANTS AND NET(EXPENSE)
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS REVENUE
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
GENERAL GOVERNMENT $ 2,203,015 $ 219,506 $ 60,751 $ 930,990 $ (991,768)
PUBLIC SAFETY 3,556,433 285,304 809,205 - (2,461,924)
EDUCATION 12,692,529 107,634 1,212,870 - (11,372,025)
PUBLIC WORKS 1,820,173 759,568 331,982 133,972 (594,651)
HUMAN SERVICES 443,695 131,133 58,323 9,948 (244,291)
CULTURE&RECREATION 711,918 135,679 194,355 - (381,884)
EMPLOYEE BENEFITS 2,296,289 - 175,574 - (2,120,715)
STATE&COUNTY ASSESSMENTS 381,006 - - - (381,006)
INTEREST 540,420 - - - (540,420)
TOTAL GOVERNMENTAL ACTIVITIES 24,645,478 1,638,824 2,843,060 1,074,910 (19,088,684);
BUSINESS-TYPE ACTIVITIES:
GOLF 2,824,694 3,663,474 11,822 - 850,602
WATER 1,236,225 1,860,800 10,863 15,400 650,838
TOTAL BUSINESS-TYPE ACTIVITIES 4,060,919 5,524,274 22,685 15,400 1,501,440
TOTAL PRIMARY GOVERNMENT $ 28,706,397 $ 7,163,098 $ 2,865,745 $ 1,090,310 -"$--(17,587,244)i
See accompanying notes to the basic financial statements
(continued)
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TOWN OF BREWSTER,MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30,2003
PRIMARY GOVERNMENT
GOVERNMENTAL BUSINESS-TYPE
ACTIVITIES ACTIVITIES TOTAL
CHANGES IN NET ASSETS:
NET(EXPENSE)REVENUE FROM PREVIOUS PAGE $ (19,088,fi84). $ 1,501,440 --$-(17,587,244)7
',
GENERAL REVENUES:
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS PAYABLE 17,477,607 - 17,477,607
TAX LIENS 98,492 - 98,492
MOTOR VEHICLE AND OTHER EXCISE TAXES 1,239,263 - 1,239,263
HOTEUMOTEL TAX 534,273 - 534,273
PENALTIES AND INTEREST ON TAXES 125,015 - 125,015
PAYMENTS IN LIEU OF TAXES 6,587 - 6,587
GRANTS AND CONTRIBUTIONS NOT RESTRICTED
TO SPECIFIC PROGRAMS 560,823 - 560,823
UNRESTRICTED INVESTMENT INCOME 180,423 - 180,423
MISCELLANEOUS 62,025 - 62,025
TRANSFERS, NET 825,096 (825,096) -
TOTAL GENERAL REVENUES AND TRANSFERS 21,109,604 (825,096) 20,284,508
CHANGE IN NET ASSETS 2,020,920 676,344 2,697,264
NET ASSETS:
BEGINNING OF YEAR 50,190,122 9,556,702 59,746,824
END OF YEAR $ 52,211,042 $ 10,233,046 $ 62,444,088
See accompanying notes to the basic financial statements
(concluded)
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TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTALFUNDS
BALANCE SHEET
JUNE 30,2003
STONY NONMAJOR TOTAL
BROOK STABILIZATION GOVERNMENTAL GOVERNMENTAL
ASSETS GENERAL SCHOOL FUND FUNDS FUNDS
CASH AND SHORT-TERM INVESTMENTS $ 4,097,811 $ 1,811,896 $ 1,688,766 $ 3,332,628 $ 10,931,101
INVESTMENTS 1,522,757 - - 80,659 1,603,416
RECEIVABLES, NET OF ALLOWANCE FOR UNCOLLECTIBLES:
REAL ESTATE AND PERSONAL PROPERTY TAXES 180,383 - - - 180,383
TAX LIENS 396,368 - - - 396,368
MOTOR VEHICLE EXCISE TAXES 69,927 - - - 69,927
DEPARTMENTAL AND OTHER - - - 391,994 391,994
INTERGOVERNMENTAL 7,579,722 - - 536,681 8,116,403
SPECIAL ASSESSMENTS - - - 252,164 252,164
TOTAL ASSETS $ 13,846,968 $ 1,811,896 $ 1,688,766 $ 4,594,126 $ 21,941,756
LIABILITIES AND FUND BALANCES
LIABILITIES:
WARRANTS PAYABLE $ 1,009,214 $ 333,783 $ - $ 50,185 $ 1,393,182
RETAINAGE PAYABLE - 17,479 - - 17,479
OTHER LIABILITIES 8,460 - - 58,082 66,542
DEFERRED REVENUES 8,191,400 - - 1,175,998 9,367,398
NOTES PAYABLE - - - 100,000 100,000
TOTAL LIABILITIES 9,209,074 351,262 - 1,384,265 10,944,601
FUND BALANCES:
RESERVED FOR:
ENCUMBRANCES AND CONTINUING APPROPRIATIONS 1,032,735 - - - 1,032,735
PERPETUAL PERMANENT FUNDS - - - 84,588 84,588
UNRESERVED
DESIGNATED FOR SUBSEQUENT YEARS' EXPENDITURES 460,650 - - - 460,650
UNDESIGNATED REPORTED IN:
GENERAL FUND 3,144,509 - - - 3,144,509
SPECIAL REVENUE FUNDS - - 1,688,766 2,780,673 4,469,439
CAPITAL PROJECTS FUNDS - 1,460,634 - 265,866 1,726,500
PERMANENT FUNDS - - - 78,734 78,734
TOTAL FUND BALANCES 4,637,894 1,460,634 1,688,766 3,209,861 10,997,155
TOTAL LIABILITIES AND FUND BALANCES $ 13,846,968 $ 1,811,896 $ 1,688,766 $ 4,594,126 $ 21,941,756
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
GOVERNMENTALFUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE;
FISCAL YEAR ENDED JUNE 30, 2003
STONY NONMAJOR TOTAL
BROOK STABILIZATION GOVERNMENTAL GOVERNMENTAL
GENERAL SCHOOL FUND FUNDS FUNDS
REVENUES :
REAL ESTATE AND PERSONAL PROPERTY TAXES,
NET OF TAX REFUNDS $ 17,589,476 $ $ $ $ 17,589,476
MOTOR VEHICLE AND OTHER EXCISE TAXES 1 ,227,944 11227,944
INTERGOVERNMENTAL 2,476,382 902,040 3,378,422
PAYMENTS IN LIEU OF TAXES 61587 6,587
PENALTIES & INTEREST 105,730 105,730
FINES & FORFEITS 26,995 26,995
CHARGES FOR SERVICES 988,214 988,214
HOTELIMOTEL TAX 534,273 534,273
INVESTMENT INCOME 123,603 31 ,452 34,090 189, 145
CONTRIBUTIONS AND DONATIONS 162,037 162,037
DEPARTMENTAL AND OTHER 1 ,623,009 633,297 2,256,306
TOTAL REVENUES 23,713,999 31 ,452 2,719,678 26,465, 129
EXPENDITURES :
CURRENT:
GENERAL GOVERNMENT 11686,734 479,382 2, 166, 116
PUBLIC SAFETY 31371 ,402 128,617 3,500,019
EDUCATION 12, 170,259 437, 134 202,792 12,8101185
PUBLIC WORKS 1 ,511 ,711 403,214 1 ,91025
HUMAN SERVICES 408,044 3501 44305
CULTURE & RECREATION 555, 157 154,369 709,526
EMPLOYEE BENEFITS 21296,289 2,2969289
STATE & COUNTY ASSESSMENTS 381 ,006 381 ,006
DEBT SERVICE 19562,563 1 ,562,563
TOTAL EXPENDITURES 23,943, 165 437, 134 1 ,40025 259784,324
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (229, 166) (437 ,134) 31 ,452 1 ,315,653 680,805
OTHER FINANCING SOURCES IUSESI
PROCEEDS FROM BONDS AND NOTES 28500 285,000
OPERATING TRANSFERS IN 1 ,505, 149 200,000 150,000 278,343 2, 133,492
OPERATING TRANSFERS OUT (628,343) (680,053) (1 ,308,396)
TOTAL OTHER FINANCING SOURCES (USES) 876,806 200,000 150,000 (116,710) 1 , 110,096
NET CHANGE IN FUND BALANCES 647,640 (237, 134) 181 ,452 1 , 198,943 1 ,790,901
FUND BALANCES AT BEGINNING OF YEAR 31990,254 1 ,697,768 1 ,507,314 2,0101918 9,206,254
FUND BALANCES AT END OF YEAR $ 41637,894 $ 1 ,460,634 $ 1 ,688,766 $ 31209,861 $ 10,997, 155
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2003
TOTAL GOVERNMENTAL FUND BALANCES $ 10, 997, 155
CAPITAL ASSETS (NET) USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND , THEREFORE , ARE NOT REPORTED IN THE FUNDS 439380 ,501
ACCOUNTS RECEIVABLE ARE NOT AVAILABLE TO PAY FOR CURRENT-PERIOD
EXPENDITURES AND, THEREFORE , ARE DEFERRED IN THE FUNDS 91367 ,398
IN THE STATEMENT OF ACTIVITIES, INTEREST IS ACCRUED ON OUTSTANDING LONG-TERM DEBT,
WHEREAS IN GOVERNMENTAL FUNDS INTEREST IS NOT REPORTED UNTIL DUE ( 1013801 )
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 ( 10, 032,211 )
LANDFILL POSTCLOSURE CARE COSTS ( 114009000)
NET EFFECT OF REPORTING LONG-TERM LIABILITIES ( 119432,211 )
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 52, 211 ,042
See accompanying notes to the basic financial statements
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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, 2003
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUND $ 1 ,790,901
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 1 ,068, 122
DEPRECIATION EXPENSE ( 1 ,001 ,419)
NET EFFECT OF REPORTING CAPITAL ASSETS 66,703
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 (LE. REAL ESTATE AND PERSONAL PROPERTY, MOTOR
VEHICLE EXCISE, ETC.) DIFFER BETWEEN THE TWO STATEMENTS, THIS AMOUNT REPRESENTS
THE NET CHANGE IN DEFERRED REVENUE (623,827)
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 (285,000)
DEBT SERVICE PRINCIPAL PAYMENTS 1 ,014509
NET EFFECT OF REPORTING LONG-TEM DEBT 729,509
SOME EXPENSES REPORTED IN THE STATEMENT OF ACTIVITIES DO NOT REQUIRE THE USE OF
CURRENT FINANCIAL RESOURCES AND, THEREFORE, ARE NOT REPORTED AS EXPENDITURES
IN THE GOVERNMENTAL FUNDS.
NET CHANGE IN LANDFILL POSTCLOSURE CARE ACCRUAL 50,000
NET CHANGE IN ACCRUED INTEREST ON LONG-TERM DEBT 7,634
NET EFFECT OF RECORDING LONG-TERM LIABILITIES 57,634
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 2,020,920
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
GENERALFUND
STATEMENT OF REVENUES , EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2003
BUDGETED AMOUNTS
ACTUAL
ORIGINAL FINAL BUDGETARY VARIANCE
BUDGET BUDGET AMOUNTS OVER(UNDER)
REVENUES :
REAL ESTATE AND PERSONAL PROPERTY TAXES ,
NET OF TAX REFUNDS $ 17 ,343, 103 $ 17 ,343 , 103 $ 17,589,476 $ 2463373
MOTOR VEHICLE AND OTHER EXCISE TAXES 11000,000 110000000 13227, 944 227, 944
INTERGOVERNMENTAL 213313026 2 ,3311026 21290, 860 (40, 166)
PAYMENTS IN LIEU OF TAXES 71000 73000 61587 (413)
PENALTIES & INTEREST 50,000 50, 000 105,730 553730
FINES & FORFEITS 81000 8 ,000 26,995 18,995
HOTEUMOTEL TAX 415,000 415 ,000 534,273 119 ,273
INVESTMENT INCOME 50,000 50 ,000 123,603 73 ,603
DEPARTMENTAL AND OTHER 11040,000 11040,000 11623,009 583 ,009
TOTAL REVENUES 22, 244 , 129 22,244, 129 23 ,5281477 11284 ,348
EXPENDITURES :
CURRENT:
GENERAL GOVERNMENT 210899695 2 , 138,748 11986,281 152,467
PUBLIC SAFETY 3 ,281 ,727 315559427 31446,934 108,493
EDUCATION 12,3479412 12,441 ,950 12 ,366,624 75, 326
PUBLIC WORKS 11634, 794 11938,494 11840,453 98,041
HUMAN SERVICES 430,425 437 ,016 408, 844 28, 172
CULTURE & RECREATION 587 ,965 597 ,477 587,683 91794
EMPLOYEE BENEFITS 21143 ,958 21173,458 2, 121 ,387 52,071
STATE & COUNTY ASSESSMENTS 293 ,706 293 ,706 381 ,006 (87,300)
DEBT SERVICE 11573,010 11579 ,010 11578 ,297 713
TOTAL EXPENDITURES 24 ,3821692 25 , 155,286 24,717,509 437, 777
EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (21138 ,563) (21911 , 157) ( 1 , 189,032) 19722 , 125
OTHER FINANCING SOURCES (USES) :
OPERATING TRANSFERS IN 883 ,621 11179,874 13505, 149 325,275
OPERATING TRANSFERS OUT (578,500) (628,343) (49, 843)
TOTAL OTHER FINANCING SOURCES (USES) 883,621 601 , 374 876,806 275,432
NET CHANGE IN FUND BALANCE (1 ,254,942) (2,309,783) (312, 226) 11997 ,557
BUDGETARY FUND BALANCE, BEGINNING OF YEAR 3,990,254 31990, 254 31990,254
BUDGETARY FUND BALANCE, END OF YEAR $ 2,7351312 $ 1 ,680,471 $ 31678,028 $ 119979557
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30 , 2003
BUSINESS-TYPE ACTIVITIES
ENTERPRISE FUNDS
ASSETS GOLF WATER TOTAL
CURRENT:
CASH AND SHORT-TERM INVESTMENTS $ 777 , 796 $ 2 , 753 , 985 $ 3 , 531 , 781
USER FEES , NET OF ALLOWANCE FOR UNCOLLECTIBLES : - 94 ,402 94 ,402
SPECIAL ASSESSMENTS - 69 , 374 69 , 374
TOTAL CURRENT ASSETS 777 , 796 219179761 3 , 695 , 557
NONCURRENT :
CAPITAL ASSETS , NET OF ACCUMULATED DEPRECIATION 10 , 851 , 564 81308 , 219 19 , 159 , 783
SPECIAL ASSESSMENTS - 10 , 130 10 , 130
TOTAL NONCURRENT ASSETS 10 , 8511564 81318 , 349 191169 , 913
TOTAL ASSETS 11 , 629 , 360 11 , 236 , 110 22 , 865 ,470
LIABILITIES
CURRENT :
WARRANTS PAYABLE 11845 85 , 273 87 , 118
OTHER LIABILITIES - 13 , 253 13 ,253
ACCRUED INTEREST 17 , 675 61 , 586 79 ,261
BONDS AND NOTES PAYABLE 386 ,424 276 , 368 662 , 792
TOTAL CURRENT LIABILITIES 405 , 944 436 ,480 842 ,424
NONCURRENT :
BONDS AND NOTES PAYABLE 8 , 615 , 000 3 , 1751000 11 , 790 , 000
TOTAL LIABILITIES 91020 , 944 3 , 6111480 12 , 632 ,424
NET ASSETS
INVESTED IN CAPITAL ASSETS , NET OF RELATED DEBT 11850 , 140 41856 , 851 61706 , 991
UNRESTRICTED 758 , 276 2 , 767 ,779 31526 , 055
TOTAL NET ASSETS $ 2 , 6081416 $ 7 , 624 , 630 $ 10 , 233 , 046
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES , EXPENSES , AND CHANGES IN FUND NET ASSET
FISCAI YEAR ENDED JUNE 30 , 2003
BUSINESS TYPE ACTIVITIES
ENTERPRISE FUNDS
GOLF WATER TOTAL
OPERATING REVENUES :
CHARGES FOR SERVICES $ 3 ,663,474 $ 1 , 860 ,800 $ 51524 ,274
DEPARTMENTALAND OTHER 11 , 822 10 ,863 22 ,685
INTERGOVERNMENTAL 15,400 15 ,400
TOTAL OPERATING REVENUES 31675 ,296 19887 ,063 5 , 562 ,359
OPERATING EXPENSES :
GENERAL SERVICES 21046, 811 830, 830 21877 ,641
DEPRECIATION 337, 709 220, 055 557 ,764
TOTAL OPERATING EXPENSES 2 , 384 , 520 1 ,050 ,885 31435 ,405
OPERATING INCOME (LOSS) 1 , 290 ,776 836 , 178 2 , 1261954
NON-OPERATING REVENUES 1EXPENSESI ;
INTEREST EXPENSE (440 , 174) ( 185 ,340) (625 ,514)
INCOME (LOSS ) BEFORE OPERATING TRANSFERS 850 ,602 650 ,838 11501 ,440
OPERATING TRANSFERS :
OPERATING TRANSFERS OUT (682, 187) ( 142 , 909) (825 ,096)
CHANGE IN NET ASSETS 168 ,415 507 ,929 676 ,344
NET ASSETS AT BEGINNING OF YEAR 23440, 001 71116 ,701 91556 ,702
NET ASSETS AT END OF YEAR $ 2 ,608,416 $ 7 ,624 ,630 $ 10 ,233 ,046
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2003
BUSINESS TYPE ACTIVITIES
ENTERPRISE FUNDS
GOLF WATER TOTAL
CASH FLOWS FROM OPERATING ACTIVITIES :
RECEIPTS FROM CUSTOMERS AND USERS $ 3,675,296 $ 1 ,913,339 $ 5,588,635
PAYMENTS TO SUPPLIERS (1 , 126,462) (271 ,951 ) (1 ,398,413)
PAYMENTS TO EMPLOYEES (934 ,302) (475, 129) (11409,431 )
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 11614,532 1 , 166,259 2,780,791
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES :
OPERATING TRANSFERS OUT (682, 187) (142,909) (825,096)
NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES (682, 187) (1429909) (825,096)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES :
PRINCIPAL PAYMENTS ON BONDS AND NOTES (384,662) (282,834) (667,496)
ACQUISITION AND CONSTRUCTION OF CAPITAL ASSETS (65, 120) (618,749) (6839869)
INTEREST EXPENSE (440,935) (190,667) (6319602)
NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (890,717) (1 ,092,250) (1 ,982,967)
NET INCREASE (DECREASE) IN CASH AND SHORT TERM INVESTMENTS 41 ,628 (68,900) (27,272)
CASH AND SHORT TERM INVESTMENTS - BEGINNING OF YEAR 736, 168 21822,885 3,559,053
CASH AND SHORT TERM INVESTMENTS- END OF YEAR $ 777,796 $ 2,7531985 $ 3,531 ,781
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED IUSED1 BY OPERATING ACTIVITIES :
OPERATING INCOME (LOSS) $ 1 ,290,776 $ 836, 178 $ 2, 126,954
ADJUSTMENTS TO RECONCILE OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
DEPRECIATION 337,709 220,055 5572764
(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE 26,276 26,276
INCREASE (DECREASE) IN ACCOUNTS PAYABLE (13,953) 70,822 56,869
INCREASE (DECREASE) IN OTHER LIABILITIES 12 ,928 12,928
TOTAL ADJUSTMENTS 323,756 330,081 653,837
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 11614,532 $ 1 , 166,259 $ 2,780,791
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30 , 2003
PRIVATE
PURPOSE AGENCY
TRUSTFUNDS FUNDS
ASSETS
CASH AND SHORT-TERM INVESTMENTS $ 62 , 515 $ 28 , 984
DEPARTMENTAL - 71268
TOTAL ASSETS 62 , 515 36 , 252
LIABILITIES
WARRANTS PAYABLE - 34 , 205
OTHER LIABILITIES - 21047
TOTAL LIABILITIES - 36 , 252
NET ASSETS
HELD IN TRUST FOR OTHER PURPOSES $ 62 , 515 $ -
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED JUNE 30 , 2003
PRIVATE
PURPOSE
TRUSTFUNDS
ADDITIONS :
INVESTMENT INCOME : $ 11044
DEDUCTIONS :
EDUCATIONAL SCHOLARSHIPS 11000
CHANGE IN NET ASSETS 44
NET ASSETS AT BEGINNING OF YEAR 62 , 471
NET ASSETS AT END OF YEAR $ 62 , 515
See accompanying notes to the basic financial statements
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
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 :
Annual
Name Purpose Address Assessment
Nauset Regional To provide education services 78 Eldredge Parkway $ 62322 ,951
School District Orleans, MA 02653
Cape Cod Regional To provide vocational education 351 Pleasant Lake Ave $ 634, 860
Technical High Harwich, MA 02645
School
i
The Nauset Regional School District (the District) is governed by an eleven ( 11 ) member school
committee consisting of three (3 ) elected representatives from the Town of Brewster. The Town is
indirectly liable for debt and other expenditures of the District and is assessed annually for its share of the
operating and capital costs . Separate financial statements may be obtained by writing to the Treasurer of
the District at the above address . The Town has an approximately 47 . 02% equity interest in thejoint
venture ,
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 303 2003
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 intermunicipal agreement authorized by state statutes , the Town joined the Town of
Orleans , and the Town of Eastham to provide for sharing of the capital, operating and maintenance and
other costs of a Septic Treatment Facility (Tri-Town Septage Facility) for the mutual advantage of the
Towns . A three member Board of Managers for the joint venture is appointed for oversight purposes , such
Board consisting of the chairman of each Town' s Board of Selectmen. An annual budget for the operation
and management of the facility is prepared by the facility superintendent and submitted to the Board of
Managers .
B. Government-Wide and Fund Financial Statements
Government~ Wide Financial Statements
The government-wide financial statements (i . e . , statement of net assets and the statement of changes in
net assets) report information on all of the non-fiduciary activities of the primary government.
Governmental activities, which are primarily supported by taxes and intergovernmental revenues , are
reported separately from business- type activities, which are supported primarily by user fees and charges .
Fund Financial Statements
Separate financial statements are provided for governmental funds , proprietary funds, and fiduciary funds ,
even though fiduciary funds are excluded from the government-wide financial statements . Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements . Nonmajor funds are aggregated and displayed in a single column.
Major Fund Criteria
A fund is considered major if it is the primary operating fund of the Town or it meets the
following criteria :
a. If the total assets , liabilities, revenues , or expenditures/expenses of an individual
governmental or enterprise fund are at least 10 percent of the corresponding element (assets,
liabilities , etc . ) for all funds of that category or type (total governmental or total enterprise
funds), and
b . If the total assets, liabilities , revenues, or expenditures/expenses of the individual
governmental fund or enterprise fund are at least 5 percent of the corresponding element for
all governmental and enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund.
Fiduciary funds are reported by fund type .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
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 fiom 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 interf ind activity has been removed from the government-wide financial
statements . Exceptions are charges between the general fund and the various enterprise funds . Elimination
of these charges would distort the direct costs and program revenues reported for the functions affected.
Fund Financial Statements
Governmental Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting,
revenues are recognized when susceptible to accrual (i . e . , when they become both measurable and
available) . Measurable means the amount of the transaction can be determined and available means
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
Expenditures are recorded when the related fund liability is incurred, except for interest on general long-
term debt which is recognized when due, and the landfill post closure care costs, which is recognized
when the obligation is expected to be liquidated with current expendable available resources .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2003
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 Towns 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 stabilization fund is a special revenue fund used to account for the accumulation of resources
to provide general and/or capital reserves .
➢ The Stony Brook School fund is a capital project fund used to account for the construction costs of
the Stony Brook School .
➢ The nonmajor governmental funds consist of other special revenue , capital projects and
permanent funds that are aggregated and presented in the nonaj
mor governmental funds column
on the governmental funds financial statements . The following describes the general use of these
fund types :
o The special revenue fund is used to account for the proceeds of specific revenue sources
(other than permanent funds or capital projects funds) that are restricted by law or
administrative action to expenditures for specified purposes .
o The capital projects fund is used to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by enterprise
and trust funds) .
o The permanent fund is used to account for financial resources that are legally restricted to the
extent that only earnings , not principal, may be used for purposes that support the
governmental programs .
Proprietary Fund Financial Statements
Proprietary fund financial statements are reported using the flow of economic resources measurement
focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and
expenses are recorded when the liabilities are incurred.
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2003
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
Fiduciaryfund financial statements are reported using the flow of economic resources measurement focus
and use the accrual basis of accounting . Fiduciary funds are used to account for assets held by the Town
in a trustee capacity for others that cannot be used to support the governmental programs .
The following fiduciary fund types are reported :
The private purpose trust fund is used to account for trust arrangements, other than those properly
reported in the permanent fund (nonmajor governmental funds) , under which principal and investment
income exclusively benefit individuals , private organizations , or other governments .
The agency fund is used to account for assets held in a purely custodial capacity
Government- Wide and Fund Financial Statements
For the government-wide financial statements, and proprietary and fiduciary fund accounting, all
applicable Financial Accounting Standards Board (FASB) pronouncements issued on or prior to
November 30, 1989 , are applied, unless those pronouncements conflict with or contradict GASB
pronouncements .
D . Cash and Investments
Government- Wide and Fund Financial Statements
Cash and short term investments are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. Investments are
reported at fair value .
E. Accounts Receivable
Government~ Wide and Fund Financial Statements
The recognition of revenue related to accounts receivable reported in the government-wide financial
statements and proprietary and fiduciary funds financial statements are reported under the accrual basis of
accounting. The recognition of revenue related to accounts receivable reported in the governmental funds
financial statements are reported under the modified accrual basis of accounting .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
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 ''/a" limits the amount of increase in
property tax levy in any fiscal year. Generally, Proposition 2 '/2 limits the total levy to an amount not
greater than 2 '/z % of the total assessed value of all taxable property within the Town. Secondly, the tax
levy cannot increase by more than 2 '/z % of the prior year ' s levy plus the taxes on property newly added
to the tax rolls . Certain provisions of Proposition 2 '/z can be overridden by a Town-wide referendum.
Real estate receivables are secured via the tax lien process and are considered 100% collectible .
Accordingly, an allowance for uncollectibles is not reported.
Personal property taxes cannot be secured through the lien process . The allowance of uncollectibles is
estimated based on historical trends and specific account analysis .
Motor Vehicle Excise
Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded
as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number
of vehicles registered and the fair values of those vehicles . The tax calculation is the fair value of the
vehicle multiplied by $25 per $ 1 , 000 of value .
The allowance for uncollectibles is estimated based on historical trends and specific account analysis .
Water
User fees are levied semi-annually based on meter readings and are subject to penalties if they are not
paid by the respective due date . Water liens are processed in December of every year and included as a
lien on the property owner's tax bill . Water charges and related liens are recorded as receivables in the
fiscal year of the levy.
Since the receivables are secured via the lien process, these accounts are considered 100% collectible and
therefore do not report an allowance for uncollectibles .
Departmental and Other
Departmental and other receivables consist primarily of Title V and ambulance receivables and are
recorded as receivables in the fiscal year accrued . The allowance for uncollectibles is estimated based on
historical trends and specific account analysis .
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- 27 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2003
Intergovernmental
Various federal and state grants for operating and capital purposes are applied for and received annually .
For non- expenditure driven grants, receivables are recognized as soon as all eligibility requirements
imposed by the provider have been met. For expenditure driven grants, receivables are recognized when
the qualifying expenditures are incurred and all other grant requirements are met.
These receivables are considered 100% collectible and therefore do not report an allowance for
uncollectibles .
F. Inventories
Government- Wide and Fund Financial Statements
Inventories of the governmental funds and the water and golf enterprise funds are recorded as
expenditures at the time of purchase . Such inventories are not material in total to the basic financial
statements , and therefore are not reported.
G. Capital Assets
Government- Wide and Proprietary Fund Financial Statements
Capital assets , which include land, vehicles, buildings and improvements , capital improvements,
machinery and equipment, and infrastructure (e . g. , water mains , roadways , and similar items) , are
reported in the applicable governmental or business-type activities column of the government-wide
financial statements, and the proprietary fund financial statements . Capital assets are recorded at historical
cost, or at estimated historical cost, if actual historical cost is not available . Donated capital assets are
recorded at the estimated fair market value at the date of donation. Except for the capital assets of the
governmental activities column in the government-wide financial statements, construction period interest
is capitalized on constructed capital assets if material.
All purchases and construction costs in excess of $ 15 ,000 , and all land costs, are capitalized at the date of
acquisition or construction, respectively, with expected useful lives of five years or greater.
Capital assets (excluding land and construction in progress) are depreciated on a straight-line basis . The
estimated useful lives of capital assets are as follows :
Estimated
Useful Life
Asset Class (in years)
Buildings and Improvements 2040
Capital Improvements (other than buildings) 20
Machinery, Equipment and Vehicles 545
Infrastructure 40
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend
asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the fiscal year of purchase for the various funds .
H. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may
result in amounts owed between funds .
Government- Wide Financial Statements
Transactions of a buyer/seller nature between and within governmental funds are eliminated from the
governmental activities in the statement of net assets . Any residual balances outstanding between the
governmental activities and business -type activities are reported in the statement of net assets as "internal
balances " .
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual
fund statements . Receivables and payables resulting from these transactions are classified as ' Due from
other funds " or ' Due to other funds " on the balance sheet.
I. Interfund Transfers
During the course of its operations , resources are permanently reallocated between and within funds .
These transactions are reported as operating transfers in and operating transfers out.
Government- Wide Financial Statements
Operating transfers between and within governmental funds are eliminated from the governmental
activities in the statement of net assets . Any residual balances outstanding between the governmental
activities and business -type activities are reported in the statement of activities as " Transfers, net" .
Fund Financial Statements
Operating transfers between and within funds are not eliminated from the individual fund statements and
are reported as operating transfers in and operating transfers out.
J. Deferred Revenue
Deferred revenue at the governmental fund financial statement level represents billed receivables that do
not meet the available criterion in accordance with the current financial resources measurement focus and
the modified accrual basis of accounting. Deferred revenue is recognized as revenue in the conversion to
the government-wide (full accrual) financial statements ,
- 29 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
K. Net Assets and Fund Equity
Government- Wide Financial Statements (Net Assets)
Net assets are classified into three components .
a. Invested in capital assets , net of related debt — consists of capital assets including restricted
capital assets , net of accumulated depreciation and reduced by the outstanding balances of any
bonds, mortgages , notes , or other borrowings that are attributable to the acquisition, construction,
or improvement of those assets .
b . Restricted net assets — Consists of net assets with constraints placed on the use either by ( 1 )
external groups such as creditors , grantors, contributors, or laws or regulations of other
governments ; or (2) law through constitutional provisions or enabling legislation.
Net assets have been "restricted" for the following :
• Streets represent amounts committed by the Commonwealth for the repair and/or construction
of streets .
• Permanent fiords -expendable represents amounts held in trust for which the expenditures are
restricted by various trust agreements .
• Permanent funds -nonexpendable represents amounts held in trust for which only investment
earnings may be expended.
• Other specific purpose represents restrictions placed on assets from outside parties .
c . Unrestricted net assets — All other net assets that do not meet the definition of "restricted" or
"invested in capital assets, net of related debt. "
Fund Financial Statements (Fund Balances)
a. Fund balances consist of funds that are reserved for amounts , that are not available for
appropriation, that are legally restricted by outside parties for a specific future use, and
designations of fund balances that represent tentative management plans that are subject to
change .
Fund balances have been reserved for the following :
• Encumbrances and continuing appropriations represents amounts obligated under purchase
orders , contracts and other commitments for expenditures that are being carried over to the
ensuing fiscal year.
• Perpetual permanent funds represent amounts held in trust for which only investment
earnings may be expended.
- 30 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Fund balances have been designated for the following :
• Subsequent year 's expenditures represents amounts appropriated for the fiscal year 2004
operating budget.
b . Undesignated fund balances — all other fund balances that do not meet the definition of
"reserved" or "designated. "
L. Long-term debt
Government- Wide and Proprietary Fund Financial Statements
Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net
assets . Material bond premiums and discounts are deferred and amortized over the life of the bonds using
the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.
Governmental Fund Financial Statements
The face amount of governmental funds long-term debt is reported as other financing sources . Bond
premiums and discounts , as well as issuance costs, are recognized in the current period. Bond premiums
are reported as other financing sources and bond discounts are reported as other financing uses . Issuance
costs, whether or not withheld from the actual bond proceeds received, are reported as general
government expenditures .
M. Investment Income
Excluding the permanent funds , investment income derived from major and nonmajor governmental
funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Laws
(MGL) .
N. Compensated Absences
Employees are granted sick and vacation leave in varying amounts . Upon retirement, termination or
death, certain employees are compensated for unused sick and vacation leave (subject to certain
limitations) at their then current rates of pay. The total amount of sick and vacation costs to be paid in
future years is not material to the basic financial statements and has not been recorded on the basic
financial statements .
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- 31 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
O. Post Retirement Benefits
Government- Wide and Fund Financial Statements
In addition to providing pension benefits, health and life insurance coverage is provided for retired
employees and their survivors in accordance with Chapter 32B , of Massachusetts General Laws, under
various contributory plans . The cost of providing health and life insurance is recognized by recording the
employer's 50% share of insurance premiums in the general fund in the fiscal year paid. All benefits are
provided through third-party insurance carriers and health maintenance organizations that administer,
assume, and pay all claims . For the fiscal year ended June 30, 2003 , this expense/expenditure totaled
approximately $ 53 , 274 . There were approximately 37 participants eligible to receive benefits at June 30 ,
2003 .
P . Use of Estimates
Government- Wide and Fund Financial Statements
The preparation of the accompanying financial statements in conformity with accounting principles
generally accepted in the United States of America, requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could vary from estimates that were
used.
Q . Total Column
Government- Wide Financial Statements
The total column presented on the government-wide financial statements represents consolidated financial
information.
Fund Financial Statements
The total column on the fund financial statements is presented only to facilitate financial analysis . Data in
this column is not comparable to the consolidated financial information.
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 .
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- 32 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
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 2003 approved budget authorized
$23 , 670,244 in current year appropriations and other amounts to be raised and $ 712 ,448 in carryover
articles carried over from previous fiscal years . Supplemental appropriations of $ 772 , 594 were approved
at two Special Town Meetings for fiscal year 2003 .
The Town Accountant has the responsibility to ensure that budgetary controls are maintained and
monitored through the accounting system.
B. Budgetary — GAAP Reconciliation
For budgetary financial reporting purposes , the Uniform Municipal Accounting System basis of
accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of
accounting. A reconciliation of budgetary-basis to GAAP -basis results for the general fund for the fiscal
year ended June 30, 2003 , is presented below :
Net change in fund balance - budgetary basis $ (3121226)
Basis of accounting differences :
Increase in revenue for on-behalf payments - MTRS 175 , 574
Increase in expenditures for on-behalf payments - MTRS ( 1755574)
Increase in revenue for the MWPAT subsidy 91948
Increase in expenditures for the MWPAT subsidy (91948 )
Adjustment for current year articles 9133211
Adjustment for current year encumbrances 119 , 524
Adjustment for expenditures from prior year encumbrances (72 , 869)
Net change in fund balance - GAAP basis $ 647 , 640
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- 33 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 3 — CASH AND INVESTMENTS
State and local statutes place certain limitations on the nature of deposits and investments available to the
Town. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial
institution may not exceed certain levels unless collateralized by the financial institutions involved.
Investments can also be made in securities issued by or unconditionally guaranteed by the U. S .
government or agencies that have a maturity of less than one year from the date of purchase, repurchase
agreement guaranteed by the U. S . government or agencies that have a maturity of less than one year from
the date of purchase, repurchase agreements guaranteed by such securities with maturity dates of no more
than 90 days from the date of purchase , and units in the Massachusetts Municipal Depository Trust
(MMDT) . The Treasurer of the Commonwealth of he
oversees the financial management of
the MMDT, a local investment pool for cities, towns , and other state and local agencies within the
Commonwealth. The Town' s fair value of its investment in MMDT represents their value of the pool ' s
shares . The Town' s Trust Funds have expanded investment powers including the ability to invest in
equity securities , corporate bonds , annuities and other specified investments .
The composition of the Town ' s bank recorded deposits and investments fluctuates depending primarily
on the timing of property tax receipts , proceeds from borrowings, collections of state and federal aid, and
capital outlays throughout the year.
Short-term investments and investments are classified as to collateral risk into the following three
categories :
Category 1 : Insured or registered, or securities held by the Town or its agent in the Town's name .
Category 2 : Uninsured and unregistered, with securities held by the counterparty' s trust department or
agent in the Town's name .
Category 3 : Uninsured and unregistered, with securities held by the counterparty, or its trust
department or agent but not in the Town's name .
Mutual fund investments (MMDT) are not categorized because they are managed investment pools .
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- 34 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
As of June 30, 2003 , the carrying amount of the Town' s deposits totaled $2 , 651 , 537 and the respective
bank balances totaled $ 3 ,022 , 345 . Of the Town ' s bank balances, $ 300,000 was covered by Federal
Depository Insurance and $2,722 , 345 was uninsured and uncollateralized . The following details the
carrying amount of cash and short-term investments and investments as reported in the basic financial
statements at June 30, 2003 :
Cash and
Short-Term
Cash and investment balances at June 30, 2003 : Investments Investments Total
Cash
Checking, savings and NOW accounts $ 1 , 669 , 129 $ - $ 1 ,669, 129
Money market deposits 982 ,408 - 982 ,408
Petty cash 650 - 650
Total Carrying amount of cash 2,652, 187 - 21652, 187
Investments
Investments subiect to cateEorization (CateQory 1 )
Common stock - 80,659 80, 659
Investments not subiect to categorization
MMDT 11 , 902 , 194 - 11 ,902 , 194
Mutual funds - 1 ,522,757 15522 , 757
Total investments 11 ,902, 194 1 , 603 ,416 13 , 505 ,610
Total cash and investments at June 30, 2003 $ 14, 5541381 $ 15603 ,416 $ 16, 157,797
Reconciliation to Basic Financial Statements :
Statement
Statement of Fiduciary
of Net Assets Net Assets Total
Cash and short-term investments $ 14 ,462 , 882 $ 91 ,499 $ 14, 554, 381
Investments 1 , 603 ,416 - 1 , 603 ,416
$ 16, 066 ,298 $ 91 ,499 $ 16 , 1573797
- 35 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 4 — RECEIVABLES
The receivables at June 30, 2003 for the Town ' s individual major and nonmajor governmental funds, and
fiduciary funds in the aggregate, including the applicable allowances for uncollectible accounts , are as
follows :
Allowance
Gross for Net
Receivables : Amount Uncollectibles Amount
Real estate and personal property taxes $ 182, 183 $ ( 1 , 800) $ 180 ,383
Tax liens 396 , 368 - 396 , 368
Motor vehicle excise taxes 87 , 927 ( 18 ,000) 69 ,927
Departmental and other 418 ,460 (26 ,466) 391 , 994
Intergovernmental 8 , 116 ,403 - 8 , 116 ,403
Special assessments 2593432 - 259 ,432
Total $ 93460,773 $ (46 ,266) $ 9 ,414, 507
The receivables at June 30, 2003 , for the enterprise funds consist of the following :
Allowance
Gross for Net
Receivables : Amount Uncollectibles Amount
Water
User fees $ 943402 $ - $ 94,402
Special Assessments 793504 - 793504
Total $ 173 , 906 $ - $ 173 , 906
- 36 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with revenues that have been received, but not yet earned. At the end
of the current fiscal year, the various components of deferred revenue reported in the governmental funds
were as follows :
Nonmaj or
General Governmental
Receivable Type : Fund Funds Total
Property Taxes $ 145 , 383 $ - $ 145 , 383
Tax Liens 3963368 - 396 , 368
Motor vehicle excise taxes 69 ,465 - 69 ,465
Departmental and other 462 391 , 995 3923457
Intergovernmental 7 , 5793722 531 , 839 8 , 111 , 561
Special assessments - 252 , 164 2523164
Total $ 8 , 191 ,400 $ 1 , 175 ,998 $ 9 , 3671398
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- 37 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 5 — CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2003 , was as follows ;
Beginning Ending
Governmental Activities : Balance Increases Decreases Balance
Canital assets not beine depreciated :
Land $ 26,491 ,312 $ 24 ,000 $ - $ 26 , 515 ,312
Construction in progress 2 ,232 419 ,655 - 4213887
Total capital assets not being depreciated 26,493 , 544 4433655 - 26 ,937 , 199
Canital assets beine depreciated:
Building and improvements 17 , 189,253 - - 17 , 1893253
Capital improvement (other than buildings) 973397 - - 97 ,397
Machinery, equipment, and vehicles 5 , 368 ,014 311 ,746 - 5 ,679 ,760
Infrastructure 31888 ,264 312,721 - 4 ,2001985
Total capital assets being depreciated 26, 5421928 624,467 - 27 , 1671395
Less accumulated depreciation for:
Building and improvements (4,046 ,999) (427 ,686) - (4,4741685 )
Capital improvement (other than buildings) (675491 ) (3 ,481 ) - (70,972)
Machinery, equipment, and vehicles (31838 ,939) (368 ,021 ) - (43206,960)
Infrastructure ( 11769 ,245) (202 ,231 ) - ( 1 ,971 ,476)
Total accumulated depreciation (9 ,7223674) ( 1 ,001 ,419) - ( 10 ,7241093 )
Total capital assets being depreciated, net 16 ,8205254 (3763952) - 161443 ,302
Total governmental activities capital assets , net $ 435313 ,798 $ 663703 $ - $ 431380 ,501
- 38 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 305 2003
Beginning Ending
Business-Type Activities : Balance Increases Decreases Balance
Canital assets not being denreciated:
Land $ 21874 ,212 $ - $ - $ 2 , 874,212
Construction in progress 2 , 928 , 190 6185749 - 3 , 5465939
Total capital assets not being depreciated 55802 ,402 618 ,749 - 6,4211151
Canital assets being depreciated :
Buildings and improvements 21476 ,050 - - 2 ,476 ,050
Machinery, equipment, and vehicles 1 ,722 ,942 65 , 120 - 1 ,788 ,062
Infrastructure 13 ,782 ,623 - - 131782 ,623
Total capital assets being depreciated 17 ,9815615 65 , 120 - 18 ,046 ,735
Less accumulated depreciation for:
Buildings and improvements (226 ,956) (61 ) 581 ) - (288 ,537)
Machinery, equipment, and vehicles (758 ,270) ( 151 ) 518) - (909 )788)
Infrastructure (3 ,765 ) 113 ) (344 )665 ) - (45109 )778)
Total accumulated depreciation (4,7505339) (557 ,764) - (5 ,3081103 )
Total capital assets being depreciated, net 13 ,231 ,276 (492 , 644) - 12,7385632
Total business-type activites capital assets , net $ 19 ,033 ,678 $ 126 , 105 $ - $ 19 , 159 ,783
Depreciation expense was charged to functions/programs of the primary government as follows :
Governmental Activities :
General government $ 76 , 599
Public safety 293 ,096
Education 3013999
Public works 267 , 969
Human services -
Culture and recreation 61 , 756
Total depreciation expense - governmental activities $ 1 ,001 ,419
Business-Type Activities :
Water $ 220 , 055
Golf 337 , 709
Total depreciation expense - business-type activities $ 557 ,764
39 -
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Construction Commitments
The Town has active construction projects as of June 30 , 2003 . The projects include school building and
street improvements projects . At year end the Town' s commitments with contractors are as follows :
Spent Remaining
Project to Date Commitment
School Building $ 332 , 103 $ 1 ,249,403
Street Improvements 46 ,450 5315839
Total $ 378 , 553 $ 1 , 781 ,242
The commitment for the school building is being funded from available resources , and the commitment
for the street improvement projects are being funded by grants from the Massachusetts Highway
Department,
NOTE 6 — INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30 , 2003 , are summarized as follows ;
Operating Transfers In :
Nonmajor Stony
General Governmental Construction Stabilization
Operating Transfers Out: Fund Funds Fund Fund Total
Nonmajor Governmental Funds $ 680 ,053 $ - $ - $ - $ 680,053 ( 1 )
Water Enterprise Fund 682, 187 - - - 6821187 (2)
Golf Enterprise Fund 142, 909 - - - 142,909 (2)
General Fund - 278 , 343 200,000 150,000 628 ,343 ( 1 )
Total $ 1 ,505 , 149 $ 278 ,343 $ 200, 000 $ 150,000 $ 2, 133 ,492
( 1 ) Represents budgeted transfer to supplement the operating budget
(2) Represents budgeted transfers from the various enterprise funds to the general fund
- 40 -
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 7 — SHORT-TERM FINANCING
Under state law, and with the appropriate authorization, the Town is authorized to borrow funds on a
temporary basis as follows :
• To fund current operations prior to the collection of revenues by issuing revenue anticipation notes
(RANS) .
• To fund grants prior to reimbursement by issuing grant anticipation notes (GANS) .
• To fund Capital project costs incurred prior to selling permanent debt by issuing bond anticipation
notes (BANS) .
• To fund current project costs and other approved expenditures incurred, that are anticipated to be
reimbursed by the Commonwealth through the issuance of State Aid anticipation notes (SAANS) .
Short-term loans are general obligations of the Town and maturity dates are governed by statute. Interest
expenditures for short-term borrowings are accounted for in the general fund .
The following is a summary of changes in short-term debt for the year ended June 30, 2003 :
Rate Due Balance at Renewed/ Retired/ Balance at
Type Purpose (%) Date June 30, 2002 Issued Redeemed June 30, 2003
BAN Title V - MWPAT Var 12/31/2003 $ - $ 100,000 $ - $ 100,000
Total Governmental Funds $ - $ 100,000 $ - $ 100,000
- 41 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 8 - LONG-TERM DEBT
The Town is subject to a dual-level, general debt limit: the normal debt limit and the double debt limit.
Such limits are equal to 5 % and 10%, respectively, of the valuation of taxable property in the Town as
last equalized by the Commonwealth ' s Department of Revenue . Debt may be authorized up to the normal
debt limit without state approval. Authorizations under the double debt limit however require the approval
of the Commonwealth ' s Emergency Finance Board. Additionally, there are many categories of general
long-term debt which are exempt from the debt limit but are subject to other limitations .
The following is a summary of the changes in long-term debt for the year ended June 30, 2003 :
Bonds and Notes Payable Schedule -Governmental Funds
Interest Outstanding at Outstanding at
Project Rate (%) June 30 , 2002 Issued Redeemed June 30 , 2003
Punkhorn 4 . 65 $ 56, 548 $ - $ 32 , 916 $ 23 ,632
Land Acquisition 4 . 65 41 , 138 - 23 , 946 17 , 192
School 4 . 65 1473132 - 85 ,644 61 ,488
Land 4 . 65 286 , 894 - 166 ,998 119 , 896
School 5 . 15 5 , 925 ,000 - 425 ,000 5 , 500 ,000
Library 5 . 15 700 ,000 - 50 ,000 650 ,000
MWPAT Title V Septic Var 197 ,403 - 10 ,400 1877003
Road Betterments 4 . 20 108 , 500 - 15 , 500 93 ,000
Road Betterments 4 . 80 120 ,000 - 15 , 000 105 ,000
Police Station 5 . 51 3 ,060 ,000 - 170, 000 2 , 8901000
Road Betterments 3 . 80 1183000 - 18 , 000 100 ,000
General Obligation 3 . 40 1 , 105 - 1 , 105 -
Road Betterments 3 . 59 - 2853000 - 2853000
Total $ 10 ,7611720 $ 2853000 $ 1 ,014, 509 $ 10 ,032 ,211
The annual debt service requirements for principal and interest for Governmental bonds and notes
outstanding at June 30, 2003 are as follows :
Fiscal Year Principal Interest Total
2004 $ 953 , 108 $ 498 , 502 $ 15451 ,610
2005 730 ,900 457 , 393 1 , 188 ,293
2006 7303900 422 , 916 1 , 153 , 816
2007 730,900 387 , 762 1 , 118 , 662
2008 725 ,900 352 , 357 1 , 0783257
2009-2013 3 ,487 ,501 1 ,2181979 4 , 706 ,480
2014-2018 2 , 302 ,002 370 ,660 23672 ,662
2019 -2021 371 ,000 32 , 115 403 , 115
Total $ 10 ,032 ,211 $ 3 ,740, 684 $ 13 ,772 ,895
- 42 -
TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Bonds and Notes Payable Schedule -Water and Golf Enterprise Fund
Interest Outstanding at Outstanding at
Project Rate (%) June 30, 2002 Issued Redeemed June 30 , 2003
Golf Course 4 . 65 $ 111 ,086 $ - $ 643662 $ 46,424
Water Well 4 . 65 27 ,202 - 153834 11 ,368
Golf Course 4 . 75 93275 , 000 - 320 ,000 8 , 955 ,000
Water Mains 5 . 51 2,740,000 - 1553000 2, 585 ,000
Telemetry 5 . 51 170,000 - 25 , 000 1453000
Water Betterments - Sears Rd 3 . 80 26,000 - 6,000 20,000
Water Betterments - Williams Dr 3 . 80 461000 - 6,000 40,000
Standpipe #2 3 . 80 725 ,000 - 75 , 000 650 ,000
Total $ 13 , 120,288 $ - $ 667,496 $ 12,452 ,792
The annual debt service requirements for principal and interest for water and golf enterprise fund bonds
and notes outstanding at June 30 , 2003 are as follows ;
Fiscal Year Principal Interest Total
2004 $ 662,792 $ 598 ,344 $ 1 ,261 , 136
2005 620,000 567 ,393 1 , 1871393
2006 635 ,000 538 ,756 1 , 173 ,756
2007 655 ,000 509 ,756 1 , 164,756
2008 670,000 480,256 1 , 150,256
2009 -2013 3 , 5201000 1 ,918 ,656 51438 ,656
2014-2018 3 , 890,000 1 ,050, 125 4,9401125
2019-2021 1 , 800 ,000 137 ,401 1 ,93 7,401
Total $ 123452,792 $ 5 , 800, 687 $ 18 ,253 ,479
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Loans Authorized and Unissued
As of June 30, 2003 , the Town has loans authorized and unissued as follows .
Date
Description Authorized Amount
Water Mains - Slough Road 5/8/2001 $ 750,000
Elementary School - Septic 11 /20/1995 120,000
Septage Betterments 5/6/1996 285600
Septage Betterments 5/4/ 1998 2, 597
Septage Betterments 11 / 19/2001 200,000
Land Acquisition 11 / 19/2001 1 ,706,571
Water - Standpipe Rehab # 1 5/6/2002 725 ,000
Land Acquisition - Commerce Park 5/6/2002 200, 000
Road Betterments - Commons Way 5/5/2003 205 ,000
Road Betterments - Meetinghouse Village 5/5/2003 280,000
New Water Supply Well No . 5 5/5/2003 1655000
Total $ 4 , 382 , 768
School Building Assistance Bureau Reimbursements
Chapter 645 of the Act of 1948 as amended ("Chapter 645 ") created a statewide school building
assistance program. Pursuant to this program, cities and towns issued bonds for eligible school building
projects and were reimbursed over a period of years by the Commonwealth according to a statutory
percentage for such city or town.
Legislation enacted as part of the Commonwealth ' s Fiscal 2001 budget repealed 645 and created a new
school building assistance program codified as Chapter 70B of the Massachusetts General Laws . Among
other changes , the new program includes grants for alternatives to construction and calculates grants for
each project based on a number of factors . The new legislation does not affect the reimbursement
percentages for bonds previously issued under Chapter 645 , and the grants for certain "grandfathered"
projects will be based on the statutory percentages provided for in Chapter 645 .
The Town has been approved for a 65 % percent state school construction grant through the School
Construction Assistance Bureau (SBAB) to cover eligible project costs , including debt service associated
with the financing of these projects, subject to annual appropriation by the state legislature . The Town
received $ 660, 666 in FY 2003 from the SBAB for completed school construction projects .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Changes in Long-term Liabilities
The following is a summary of changes in long-term liabilities for the year ended June 30, 2003 :
Beginning Ending Current
Governmental Activities : Balance Additions Reductions Balance Portion
Bonds and notes payable $ 10,7611720 $ 285 ,000 $ ( 130143509) $ 10,032,211 $ 953 , 108
Landfill postclosure care costs 154505000 - (50,000) 154003000 50,000
Total governmental activity
long-term liabilities $ 121211 ,720 $ 285,000 $ ( 11064)509) $ 111432,211 $ 11003, 108
Beginning Ending Current
Business-Type Activities : Balance Additions Reductions Balance Portion
Bonds and notes payable $ 13 , 120,288 $ - $ (667,496) $ 12,4521792 $ 662,792
Total business-type activity
long-term liabilities $ 13, 120,288 $ - $ (667,496) $ 12,452,792 $ 662,792
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, 2003 :
Total Long- Town's Town's
Term Debt Estimated Indirect
Agency Outstanding Share Debt
Barnstable County $ 810,000 4 . 44% $ 355964
Nauset Regional School District 165514,462 47 . 02% 7,7659100
$ 171324,462 $ 7, 8012064
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 309 2003
NOTE 9 — STABILIZATION FUND
At June 30, 2003 , $ 1 ,688 ,766 has been set aside in the stabilization fund, which is classified as a major
fund in the governmental funds financial statements. The stabilization fund balance can be used for
general and/or capital purposes as approved by Town Meeting vote .
NOTE 10 — RISK FINANCING
The Town is exposed to various risks of loss related to torts ; theft of, damage to or destruction of assets ;
errors and omissions ; injuries to employees; employee ' s health and life ; and natural disasters .
Buildings are fully insured against fire, theft, and natural disaster to the extent that losses exceed
$ 1 ,000 ,000 per incident. The fully insurable value of Town buildings is $ 37 , 807 ,497 .
The Town is insured for general liability; however, Chapter 258 of the Massachusetts General Laws limits
the Town ' s liability to a maximum of $ 100,000 per claim in all matters except in actions relating to
federal civil rights, eminent domain and breach of contract. Such claims are charged to the general fund .
There were no such claims in 2003 .
The Town is a member of the Cape Cod Municipal Health Group , (CCMHG) which is a Massachusetts
Municipal Health Insurance Joint purchase group . The Group includes thirteen Towns, six school
districts , five fire districts , seven water districts, one recreation authority, and one education collaborative
as participants . Health benefits consist of a medical indemnity program and a Medex program with Blue
Cross Blue Shield of Massachusetts . The medical indemnity program consists of Master Health Plus and
Master Health, Master Medical, and Master Medical Carveout plans . In addition, the Group adopted an
Exclusive Provider Organization plan with Harvard Pilgrim Health Care called the Cape Cod Municipal
Managed Care Plan, effective July 1 , 1992 . Beginning July 1 , 1996, the group adopted Blue Cross Blue
Shield Network Blue, a comprehensive, self-funded exclusive provider organization plan. Also , beginning
July 1 , 1996 , the Group adopted a dental insurance plan.
The medical indemnity and Medex programs are on a claims-paid basis , and are administered by Blue
Cross Blue Shield of Massachusetts for a monthly administration fee based on the number of individual,
single parent/single child, and family plan subscribers for that particular month .
The Cape Cod Municipal Managed Care Plan and Pilgrim Preferred 65 are on a claims-paid basis , and are
administered by Harvard Pilgrim health care for a monthly administration fee based on a number of
individual and family plan subscribers for that particular month.
The Blue Cross Blue Shield network Blue Plan is on a claims-paid basis , and are administered by Blue
Cross Blue Shield of Massachusetts for a monthly fee based on a number of individual, single
parent/single child, and family plan subscribers for that particular month.
The dental insurance plan is on a claims-paid basis for subscribers whose employers pay a portion of the
monthly cost and a fixed premium basis for all other subscribers . The claims -paid portion of the plan is
administered by delta Dental for a monthly administration fee based on the number of subscribers .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
The Group has a specific excess medical and prescription drug claims reinsurance contract with an
insurance carrier covering claims paid in excess of $ 150,000, and $ 150,000 per individual, to a lifetime
maximum amount payable of $2 ,000,000, and $ 2,000,000 at June 30, 2003 for the medical indemnity
contracts . The Group no longer reinsures its Medex and Carveout Plans . The policy period covers claims
incurred within twelve months and paid within twenty-four months .
All refunds, surplus , and deficits are dealt with on a proportional and collective basis . In the case of a
certified surplus, the Board determines whether the excess funds will remain in the Board ' s trust fund for
the purpose of reducing the participants ' future premium cost, or be distributed to the Participating
Governmental Units in proportion to the number of Participating Governmental Unit ' s employees and
retirees covered under the contract purchased at the time the surplus was incurred. In the case of a
certified deficit, additional revenue will be raised and paid by the Participating Governmental Unit ' s
employees and retirees covered under the contract purchased at the time the deficit was incurred. Each
participant has to be part of the Group for two years before sharing surpluses .
The Group provides health care coverage for employees that qualify for and select health care coverage as
an employee benefit as well as retired employees . There are 198 Town of Brewster employees and 36
retirees who participate in the Group ' s health care programs . The Town contributes 75 % of the premium
cost for employees and 50% of the premium cost for retirees and surviving spouses .
As of June 30, 2003 (unaudited) , the Cape Cod Municipal Health Group had total assets of $23 ,756 , 671 ,
total liabilities of $ 15 ,317 , 858 (including $ 13 , 611 ,904 in estimated benefits obligations) and a total
surplus of $ 8 ,438 , 813 .
NOTE 11 — PENSION PLAN
A. Plan Descriptions
The Town contributes to the Barnstable County Contributory Retirement System (the " System"), a cost
sharing, multiple- employer, defined benefit pension plan administered by the Barnstable County
Retirement Board. Substantially all employees are members of the "System" except for public school
teachers and certain school administrators who are members of the Massachusetts Teachers ' Retirement
System (MTRS) to which the Town does not contribute .
The "System" and the MTRS are contributory defined benefit plans and membership in both the
"System" and the MTRS is mandatory upon commencement of employment for all permanent, full-time
employees . The "System" and the MTRS provide retirement, disability and death benefits to plan
members and beneficiaries .
Chapter 32 of the Massachusetts General Laws assigns authority to establish and amend benefit
provisions of the plan, and grant cost-of-living increases, to the State legislature . The " System" issues a
publicly available financial report, which can be obtained through the Commonwealth of Massachusetts ,
Public Employee Retirement Administration Commission ("PERAC") , One Ashburton Place, Boston,
Massachusetts 02108 .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
B. Funding Policies
Barnstable Countv Contributory Retirement Svstem
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 , 2003 , 2002, and 2001 were $ 641 , 378 , $ 628 , 868 , and $ 652 ,402 ,
respectively, which were equal to its required contributions for each of these years .
Massachusetts Teachers ' Retirement Svstem
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 $ 175 , 574 for fiscal year 2003 . In accordance with GASB
Statement No . 24, these on-behalf' payments have been recorded in the general fund as
intergovernmental revenues and pension expenditures .
NOTE 12 — COMMITMENTS AND CONTINGENCIES
The Town participates in a number of federal award programs . Although the grant programs have not
been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through
June 30, 2003 , however, these programs may still be subject to financial and compliance audits in future
years . The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be
determined at this time, although it is believed the amount, if any, would not be material .
The Town ' s landfill was capped in 2000 by order of the Department of Environmental Protection (DEP) .
The Town is responsible for post-closure monitoring of the site for thirty years (28 years remaining) , and
the estimated liability has been recorded in the Statement of Net Assets, Governmental Activities . The
$ 1 ,400,000 reported as landfill post-closure liability at June 30 , 2003 is based on what it would cost to
perform all post-closure care at June 30 , 2003 . 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, 2003 , cannot be ascertained, management believes any resulting liability should not materially affect
the financial position at June 30, 2003 .
NOTE 13 — SUBSEQUENT EVENT
On July 15 , 2003 , the Town issued a general obligation bond of $485 ,000 for road betterments . Principal
is payable annually in variable amounts beginning on July 15 , 2004 through July 15 , 2013 . Interest is
payable semi-annually on January 15`h and July 15 `hbeginning on January 15 , 2004 . The coupon interest
rate varies from 3 . 50% to 3 . 75 % through the term of the loan, and the net interest cost (NIC) is 3 . 62% .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 14 — IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
The accounting policies of the Town of Brewster, Massachusetts, conform to accounting principles
generally accepted in the United States of America (GAAP), as applicable to governmental units as
prescribed by the Governmental Accounting Standards Board (GASB) . In June 1999 , the GASB issued
Statement 34, Basic Financial Statements — and Management 's Discussion and Analysis —for State and
Local Governments, which established new financial reporting requirements for state and local
governments throughout the United States , The statement requires new information and restructures much
of the information that the Town has presented in the past. Other GASB Statements are required to be
implemented in conjunction with GASB 34 . Therefore , during fiscal year 2003 , the Town has
implemented the following GASB Statements :
• Statement #34 . Basic Financial Statements -and Management 's Discussion and Analysis for
State and Local Governments
• Statement #37 . Basic Financial Statements -and Management 's Discussion and Analysis for
State and Local Governments; Omnibus
• Statement #38 , Certain Financial Statement Note Disclosures
The most significant changes required by the new financial reporting standards are as follows :
• Management's discussion and analysis .
• Basic financial statements, which include :
o Government-wide financial statements, prepared using the economic resources measurement
focus and the accrual basis of accounting.
o Fund financial statements, consisting of a series of statements that focus on major
governmental and enterprise funds .
o Schedules to reconcile the fund financial statements to the government-wide financial
statements .
o Notes to the basic financial statements .
As a result of implementing these pronouncements, the following restatements have been made to
beginning fund balances and net assets :
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Fund Financial Statements :
The following beginning governmental fund balances have been restated to reflect the change in focus of
reporting from governmental and fiduciary fund types to major funds :
Non-
Special Capital Expendable Expendable
Description Revenue Projects Trusts Trusts Total
Fund balances at June 30, 2002
as previously reported $ 11681 , 589 $ 2 ,7811697 $ 23340 ,035 $ 75 ,513 $ 6, 8781834
To reclass funds to nonmajor
governmental funds in the new
reporting model ( 13681 ,589) (21781 ,697) (2)3405035) (75 )513) (6) 8783834)
Fund balances at June 30, 2002
as restated $ - $
Private
Stony Nonmajor Purpose
Brook Governmental Stabilization Trust
School Funds Fund Funds
Fund balances at June 30, 2002 as previously reported $ - $ - $ - $
Special revenue, capital projects, expendable,
and nonexpendable trust fund balances as previously
reported (per above schedule) - 6, 878 ,834 -
To establish major funds in the new reporting model 11697 ,768 (3 ,205 ,082) 1 ,507 , 314 -
To establish the private purpose trust fund from funds
previously reported in the expendable trust fund - (62)471 ) - 62,471
To reclass business-type activities from funds
previously reported in the capital project and
special revenue funds - ( 15600 ,363 ) -
Fund balances at June 30, 2002 as restated $ 1 ,697 ,768 $ 2,010,918 $ 1 ,507 ,314 $ 62 ,471
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
The beginning net assets of the water and golf governmental funds have been restated to reflect the
changes in focus of reporting from governmental fund types to business-type activities .
Water Golf
Retained earnings at June 30, 2002, as previously reported $ - $ -
Reclass previously reported water and golf capital projects
funds at June 30, 2002 to the business-type activities 8965579 97, 003
Reclass previously reported golf special revenue funds at
June 30, 2002 to the business-type activity - 606,781
To record net fixed assets at June 30, 2002 7 , 909, 525 113124 , 153
Reclass previously reported water and golf general funds at
June 30, 2002 to the business-type activity 1 ,9113529 16, 586
To record accounts receivable at June 30, 2002 200, 183 -
To record accrued interest at June, 30 2002 (66, 913 ) ( 18 ,436)
Reclass previously reported general long term debt at
June 30, 2002 to the business-type activity (3 ,734,202) (9 , 386,086)
Net assets at June, 30 2002, as restated $ 7, 116,701 $ 2,440 ,001
The beginning net assets of business-type activities are equal to the restated beginning net assets of the
golf special revenue, water and golf capital projects funds , and water and golf general funds, and the
reclassification of the water and golf general long term debt obligations .
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TOWN OF BREWSTER, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2003
Government- Wide Financial Statements
Beginning net assets for governmental activities was calculated as follows :
Total fund balances of general, special revenue, capital projects,
expendable and nonexpendable trust funds at June 30, 2002 $ 12,797,203
Add :
Capital assets (net of accumulated depreciation totaling $9,722,674)
at June 30, 2002 43 ,313 ,798
To record revenue under the full accrual basis of accounting 9,9911225
Less :
Previously reported capital projects, general fund, and special revenue
funds reclassified to business type activities (3 ) 528 ,478)
Outstanding governmental bonds payable at June 30, 2002 ( 10, 761 )720)
Landfill postclosure care costs balance at June 30, 2002 ( 1 ,450 ,000)
Accrued interest payable on outstanding governmental bonds
payable at June 30 , 2002 ( 109 )435 )
Previously reported expendable trust funds reclassified to private
purpose trust fund (62,471 )
Net assets at beginning of year - Governmental Activities $ 50, 190, 122
Future Implementation of GASB Pronouncements
During FY 2002 the GASB issued Statement #39 , Determining Whether Certain Orizanizations are
Component Units , an amendment of GASB Statement # 14 , which is required to be implemented during
FY 2004 . It is expected that this pronouncement will not significantly impact the basic financial
statements for the fiscal year ended June 30 , 2003 .
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