HomeMy WebLinkAboutFiscal Year 2012 Basic Financial StatementTOWN OF NANTUCKET, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2012
TOWN OF NANTUCKET, MASSACHUSETTS
REPORT ON EXAMINATION OF BASIC FINANCIAL STATEMENTS
JUNE 30, 2012
TABLE OF CONTENTS
Page
Independent Auditors’ Report .......................................................................................................................................... 1
Management’s Discussion and Analysis ......................................................................................................................... 3
Basic Financial Statements ........................................................................................................................................... 13
Statement of Net Assets ............................................................................................................................................ 14
Statement of Activities ............................................................................................................................................... 16
Governmental Funds – Balance Sheet ...................................................................................................................... 18
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to the Statement of Net Assets ... 19
Governmental Funds – Statement of Revenues, Expenditures and Changes in Fund Balances ............................. 20
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
Funds to the Statement of Activities ..................................................................................................................... 21
Proprietary Funds – Statement of Net Assets ........................................................................................................... 22
Proprietary Funds – Statement of Revenues, Expenses and Changes in Fund Net Assets..................................... 24
Proprietary Funds – Statement of Cash Flows .......................................................................................................... 26
Fiduciary Funds – Statement of Fiduciary Net Assets ............................................................................................... 28
Fiduciary Funds – Statement of Changes in Fiduciary Net Assets ........................................................................... 29
Notes to Basic Financial Statements ......................................................................................................................... 30
Required Supplementary Information ............................................................................................................................ 64
General Fund Budgetary Comparison Schedule ....................................................................................................... 65
Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund – Budget and Actual ...... 66
Retirement System Schedules ................................................................................................................................... 68
Retirement System Schedule of Funding Progress ............................................................................................... 69
Retirement System Schedule of Employer Contributions ...................................................................................... 70
Other Postemployment Benefit Schedules ................................................................................................................ 71
Other Postemployment Benefit Plan Schedule of Funding Progress and Employer Contributions ....................... 72
Other Postemployment Benefit Plan Actuarial Methods and Assumptions ........................................................... 73
Notes to Required Supplementary Information .......................................................................................................... 74
Nantucket County Component Unit Combining Statements ......................................................................................... 77
Nantucket County – Combining Balance Sheet ..................................................................................................... 79
Nantucket County – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........... 80
Additional Information .................................................................................................................................................... 81
Nantucket Planning and Economic Development Commission – Schedule of Indirect Cost Rate ........................ 82
Nantucket Planning and Economic Development Commission – Schedule of Public Support ............................. 83
1
Independent Auditors’ Report
To the Honorable Board of Selectmen
Town of Nantucket, Massachusetts
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, the Nantucket County discretely presented component unit, and the aggregate
remaining fund information of the Town of Nantucket, Massachusetts, as of and for the fiscal year ended June 30,
2012, which collectively comprise the Town’s basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Town of Nantucket's management. Our responsibility is to
express opinions on these financial statements based on our audit.
We did not audit the financial statements of Nantucket Islands Land Bank discretely presented component unit.
Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and
our opinion, insofar as it relates to the amounts included for the Nantucket Islands Land Bank discretely
presented component unit, is based on the report of the other auditor.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. 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, based on our audit and the report of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the discretely presented component units, each major fund, and the aggregate remaining
fund information of the Town of Nantucket, Massachusetts, as of June 30, 2012, and the respective changes in
financial position and cash flows, where applicable, thereof for the fiscal year then ended in conformity with
accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2012 on
our consideration of the Town of Nantucket, Massachusetts’ internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the Town of Nantucket’s financial statements as a whole. The combining and individual fund
statements and schedules, as listed in the table of contents, are presented for the purpose of additional analysis
and are not a required part of the financial statements. Such information is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the financial
2
statements. The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United State of America. In our opinion, the information is fairly stated in all material respects in relation to the
financial statements taken as a whole.
The Nantucket Planning and Economic Development Commission schedule of indirect cost rate and schedule of
public support revenues and expenditures by grant, as listed in the table of contents, are presented for the
purpose of additional analysis and are not a required part of the basic financial statements. We have applied
certain limited procedures to these schedules, which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the additional information. However, we did not audit the
information and express no opinion on it.
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and required supplementary information, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential
part of financial reporting for placing the basic financials statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge
we obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
October 31, 2012
Town of Nantucket, Massachusetts 3 Basic Financial Statements
Management’s Discussion and Analysis
Town of Nantucket, Massachusetts 4 Basic Financial Statements
Management’s Discussion and Analysis
As management of the Town of Nantucket, we offer readers of these financial statements this narrative overview
and analysis of the financial activities for the fiscal year ended June 30, 2012. The Town complies with financial
reporting requirements issued by the Governmental Accounting Standards Board (GASB), and Management’s
Discussion and Analysis are part of these requirements. The GASB is the authoritative standards-setting body
that provides guidance on the preparation of financial statements in conformity with Generally Accepted
Accounting Principles (GAAP). External users of these financial statements, such as investors and rating
agencies, rely on consistent reporting standards in order to compare the financial position of the Town of
Nantucket with that of other governmental entities.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Town of Nantucket’s basic financial
statements. These basic financial statements comprise three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to provide
readers with a broad overview of finances, in a manner similar to private-sector business.
The statement of net assets presents information on all assets and liabilities, with the difference between the two
reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of
whether the financial position is improving or deteriorating.
The statement of activities presents information showing how the government’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and
earned but unused 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 and charges (business-type activities). The governmental
activities include general government, public safety, education, public works, community preservation, human
services, culture and recreation and interest. The business-type activities include the activities of the sewer
department, solid waste, airport, Our Island Home, and the Siasconset and Wannacomet water departments.
The government-wide financial statements include not only the Town of Nantucket itself (known as the primary
government), but also the County of Nantucket (County) and the Nantucket Islands Land Bank (Land Bank),
which are legally separate entities. The County is included because the elected Board of Selectmen serves also
as County Commissioners. The Land Bank is included because a portion of the Town’s debt was incurred on
behalf of the Land Bank, and the Town guarantees other debt incurred by the Land Bank. Financial information
for these component units is reported separately within the governmental and proprietary fund statements
respectively.
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
categories: governmental funds, proprietary funds, and fiduciary funds.
Town of Nantucket, Massachusetts 5 Basic Financial Statements
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund statements focus on near-term inflows 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 fund balance
sheet and the governmental fund 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 Nantucket adopts an annual appropriated budget for its general fund. A budgetary comparison
schedule has been provided for the general fund as required supplementary information to demonstrate
compliance with this budget.
Proprietary funds. The Town maintains two types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-
wide financial statements. The Town uses enterprise funds to account for its sewer department, solid waste,
airport, Our Island Home, and the Siasconset and Wannacomet water departments’ activities and activities of the
Nantucket Islands Land Bank component unit.
Internal service funds are used by the Town to report the activity of self-funded insurance programs, including
health and workers’ compensation insurance. Governmental accounting principles allow self-funded insurance
programs to be reported in either the general fund or in an internal service fund. The insurance programs benefit
both the governmental and business-type activities of the Town; however, the governmental activities include
more employees and retirees than the business-type activities. For that reason, the internal service funds are
included within the category of governmental activities in the government-wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds are not reflected in the government-wide financial statement because the resources
of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
Notes to the 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.
Town of Nantucket, Massachusetts 6 Basic Financial Statements
Financial Highlights as of the close of fiscal year 2012
The total of assets exceeded liabilities (i.e., net assets) by $188 million for governmental activities, and
$130 million for business-type activities.
Governmental funds reported combined ending fund balances of $38.8 million.
Unassigned fund balance for the general fund totaled $14.4 million.
Total governmental funds debt totaled $66.6 million, and total enterprise fund debt totaled $95.1 million.
Government-wide Financial Analysis
The following chart provides a summary of Governmental activities financial data for fiscal year 2012, with
comparative fiscal year 2011 information.
Governmental Activities
Balance at Balance at
June 30, June 30,
2012 2011
Assets:
Current assets……………………………………………$ 51,366,752 $ 49,028,623
Noncurrent assets (excluding capital)………………… 159,445 227,651
Capital assets, not being depreciated………………… 178,612,012 197,704,996
Capital assets, net of accumulated depreciation…… 50,911,135 29,835,474
Total assets………………………………………… 281,049,344 276,796,744
Liabilities:
Current liabilities (excluding debt)……………………… 6,331,757 6,937,422
Noncurrent liabilities (excluding debt)………………… 20,335,490 17,445,111
Current debt……………………………………………… 6,523,236 6,689,432
Noncurrent debt………………………………………… 60,036,071 62,489,407
Total liabilities……………………………………… 93,226,554 93,561,372
Net Assets:
Capital assets net of related debt……………………… 182,940,477 177,625,537
Restricted………………………………………………… 2,459,409 3,150,056
Unrestricted……………………………………………… 2,422,904 2,459,785
Total net assets……………………………………$187,822,790 $183,235,378
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. For
governmental activities, assets exceeded liabilities by $187.8 million at the close of fiscal year 2012. The largest
portion of the Town’s net assets, $183 million, reflects investment in capital assets (e.g., land, buildings,
machinery, and equipment), less any outstanding debt which was borrowed in order to build or acquire those
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 capital assets is reported net of 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.
Town of Nantucket, Massachusetts 7 Basic Financial Statements
An additional portion of the net assets, $2.5 million, represents resources that are subject to external restrictions
on how they may be used. The remaining balance of unrestricted net assets, which reported a positive balance of
$2.4 million, may be used to meet the government’s ongoing obligations to citizens and creditors.
Governmental Activities
June 30, June 30,
2012 2011
Program revenues:
Charges for services……………………………………$ 4,072,262 $ 2,710,818
Operating grants and contributions…………………… 5,212,063 6,137,822
Capital grants and contributions……………………… 1,030,215 1,067,782
General revenues:
Real estate and personal property taxes……………… 61,491,535 61,440,131
Tax liens………………………………………………… 371,752 507,919
Motor vehicle and other excise taxes………………… 2,066,878 1,867,286
Hotel and meals taxes………………………………… 2,745,571 2,726,360
Penalties and interest on taxes……………………… 687,221 633,008
Community preservation fund surtax………………… 1,724,556 1,666,540
Payments in lieu of taxes……………………………… 7,329 13,822
Nonrestricted grants and contributions……………… 307,901 935,761
Unrestricted investment income……………………… 173,698 65,960
Gain (loss) on sale of capital assets………………… 813,011 73,530
Miscellaneous revenues………………………………… 431,349 734,238
Total revenues……………………………………… 81,135,341 80,580,977
Expenses:
General government…………………………………… 7,772,995 8,722,239
Public safety……………………………………………… 13,601,442 12,172,241
Education………………………………………………… 29,011,944 28,867,553
Public works……………………………………………… 4,692,304 4,082,163
Community preservation……………………………… 2,242,077 2,218,423
Human services………………………………………… 3,741,941 2,765,497
Culture and recreation………………………………… 2,170,903 2,119,755
Interest…………………………………………………… 2,082,337 2,354,427
Total expenses……………………………………… 65,315,943 63,302,298
Transfers and capital contributions…………………… (11,231,986) (8,967,926)
Change in net assets……………………………………$4,587,412 $8,310,753
June 30, June 30, Increase
2012 2011 (Decrease)
Net Assets:
Capital assets net of related debt………………………$ 182,940,477 $ 177,625,537 $ 5,314,940
Restricted………………………………………………… 2,459,409 3,150,056 (690,647)
Unrestricted……………………………………………… 2,422,904 2,459,785 (36,881)
Total net assets……………………………………$187,822,790 $183,235,378 $4,587,412
Town of Nantucket, Massachusetts 8 Basic Financial Statements
The governmental activities expenses totaled $65.3 million. Of that amount, $10.3 million was directly supported
by program revenues consisting of charges for services, operating and capital grants and contributions. General
revenues totaled $71 million, primarily coming from property taxes, motor vehicle excise, hotel/motel taxes, and
community preservation surtaxes. The governmental activities also reported $11.2 million in net transfers to the
enterprise fund which was for subsidies and transfers of capital.
The Town realized a gain on sale of capital assets in fiscal year 2012 in the amount of $813,000 as a result of the
sale of land that was previously in Tax Title and the sale of other various property easements.
In total, governmental activities net assets increased by approximately $4.6 million in fiscal year 2012. The key
components in this increase include the difference between the retirement of long-term debt ($6.7 million) which is
raised in the general fund and the depreciation expense recorded on capital assets ($3.1 million); and the
recognition of the amortization of the Town’s liability for Other Postemployment Benefits ($3 million). Overall
revenue and expenses increased approximately $600,000 and $2 million, respectively, over FY2011 amounts.
The revenue gains were mainly from increases in charges for services. The expense increases were mainly
related to public safety, public works and human services.
During fiscal year 2012, the Town transferred $22 million in capital assets from the non-depreciable construction
in progress category to depreciable capital assets. The largest portion of this transfer related to the new public
safety building.
Town of Nantucket, Massachusetts 9 Basic Financial Statements
The following chart provides a summary of Business-type activities financial data for fiscal year 2012, with
comparative fiscal year 2011 information.
Business-Type Activities
Balance at Balance at
June 30, June 30,
2012 2011
Assets:
Current assets……………………………………………$ 36,952,078 $ 23,766,428
Noncurrent assets (excluding capital)………………… 1,926,873 2,052,589
Capital assets, not being depreciated………………… 35,533,925 53,031,956
Capital assets, net of accumulated depreciation…… 163,983,524 144,407,097
Total assets………………………………………… 238,396,400 223,258,070
Liabilities:
Current liabilities (excluding debt)……………………… 2,916,348 3,640,054
Noncurrent liabilities (excluding debt)………………… 9,182,103 7,676,437
Current debt……………………………………………… 15,415,707 13,175,502
Noncurrent debt………………………………………… 81,065,978 76,157,893
Total liabilities……………………………………… 108,580,136 100,649,886
Net Assets:
Capital assets net of related debt……………………… 119,950,372 119,408,316
Unrestricted……………………………………………… 9,865,892 3,199,868
Total net assets…………………………………… 129,816,264 122,608,184
Program revenues:
Charges for services…………………………………… 32,847,185 27,568,533
Operating grants and contributions…………………… 746,499 1,287,762
Capital grants and contributions……………………… 4,041,191 3,307,275
General revenues:
Unrestricted investment income……………………… 11,993 -
Total revenues……………………………………… 37,646,868 32,163,570
Expenses:
Water……………………………………………………… 4,357,175 4,290,667
Sewer…………………………………………………… 5,760,776 5,613,007
Solid Waste……………………………………………… 8,851,378 8,679,984
Airport…………………………………………………… 15,331,231 13,158,406
Our Island Home………………………………………… 6,923,716 7,165,650
Total expenses……………………………………… 41,224,276 38,907,714
Transfers and capital contributions…………………… 11,231,986 8,967,926
Change in net assets……………………………………$7,654,578 $2,223,782
Town of Nantucket, Massachusetts 10 Basic Financial Statements
There was an increase of $7.7 million in net assets reported in connection with the Town’s business-type activities
(enterprise funds). The changes by fund are listed in the following table:
Business-Type Activities
Balance at Balance at Net
June 30, June 30, Increase
2012 2011 (Decrease)
Net Assets:
Siasconset Water……………………………………… $ 4,984,254 $ 4,511,758 $ 472,496
Wannacomet Water Company………………………… 15,007,073 14,807,334 199,739
Nantucket Memorial Airport…………………………… 54,901,337 49,836,676 5,064,661
Sewer Enterprise Fund………………………………… 45,875,433 45,804,424 71,009
Solid Waste Enterprise Fund…………………………… 6,716,639 7,516,473 (799,834)
Our Island Home………………………………………… 2,331,528 (314,979) 2,646,507
Total net assets……………………………………$129,816,264 $122,161,686 $7,654,578
One of the most significant factors of this change is the Nantucket Memorial Airport fund reporting a $5 million
increase in net assets. The majority of the increase is related to transfers from the general fund to cover prior year
deficits in the amount of $3.2 million. The remainder of the increase relates to capital grants reported for the
construction of runway 33 and the administration building as the related costs for these projects were fully
capitalized. On the operating side, the increases in airport charges for services and expenses were primarily
related to the increased cost of jet fuel.
The Our Island Home enterprise fund reported a $2.6 million increase in net assets mainly due to an increase in
Medicaid revenue received.
At the end of the current fiscal year, the Town reports $130 million in net assets for its combined business-type
activities.
Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of $38.8
million, of which $18.5 million is reported in the general fund, $5.4 million is reported in the Town capital projects
major fund and $14.9 million is reported as nonmajor governmental funds. The general fund is the Town’s chief
operating fund. At the end of fiscal year 2012, unassigned fund balance of the general fund totaled $14.4 million,
while committed and assigned fund balances totaled $4 million.
In according with accounting standards, the stabilization fund is reported within the unassigned balance of the
general fund and had a year end fund balance totaling $3.8 million.
Town of Nantucket, Massachusetts 11 Basic Financial Statements
During fiscal year 2012, total general fund balance showed a decrease of ($314,000). This was the net result of
approximately $5 million in free cash (unreserved fund balance) voted to fund the current year budget as well as
to subsidize the Town’s enterprise funds, and positive budgetary results.
As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance and total
fund balance to total fund expenditures. Unassigned fund balance represents 19% of total general fund
expenditures and transfers out, while total fund balance represents 25% of that same amount. Approximately
$607,000 of the assigned fund balance was designated at year end to support the 2013 budget. An additional
$1.5 million was assigned for year-end encumbrances and $2 million was committed for carry-over appropriations
and articles.
The Town Capital Projects major fund is used to account for major capital acquisitions, primarily financed through
long-term borrowing. The Capital Projects fund experienced an increase of $3.4 million in fund balance when
compared to prior year. The key component to the increase relates to the Town recognizing $3.2 million in bond
proceeds in the current year utilized to fund prior year expenditures related to the public safety building
construction. The building became operational in fiscal year 2012.
The Town also maintains a community preservation fund, classified within the nonmajor governmental funds
which had a year end fund balance of $5.9 million. This fund is attributable to the Town’s acceptance of the
Community Preservation Act, which allows the Town to impose a surcharge on property taxes and to receive
state funds for specified uses related to the acquisition, creation, preservation and support of open space, historic
resources, land for recreation use and community housing. In fiscal year 2012, the Town earned and accrued a
year end receivable for state matching community preservation funds, of approximately $497,000.
General Fund Budgetary Highlights
The General fund budget consists of those appropriations voted at Annual Town Meeting, carryover
encumbrances and appropriations from the previous year, amounts charged by the Commonwealth and deducted
from state revenues, and amounts required to be raised as a result of any deficits. The Town’s budget may be
changed by action of Town Meeting or, in the last two months of the fiscal year, by vote of the Board of Selectmen
and the Finance Committee, with statutory limitation as to amount. The original appropriation budget and the
carryover encumbrances and appropriations totaled $76.5 million. Changes during the year consisted largely of
allocations between and among departments and appropriations from free cash and prior year articles used
mainly to subsidize the operations of the Town’s enterprise funds.
Total actual revenue was higher than estimated revenue by $1.9 million, mainly attributable to real estate and tax
lien, hotel and meals taxes, and departmental receipts. At year end, outstanding purchase orders and carry-over
appropriations and articles totaled approximately $3.5 million, which is reported as committed and assigned in
fund balance at year end. The total of actual expenditures and the amounts reserved for future expenditures was
lower than the final budget by approximately $3.2 million, a positive variance. None of the Towns expenditures
exceeded the available appropriations.
Capital Asset and Debt Administration
Capital Assets
In conjunction with the annual operating budget, the Town annually prepares a capital budget for the upcoming
fiscal year and a Capital Improvement Plan (CIP) that is used as a guide for future capital expenditures.
Town of Nantucket, Massachusetts 12 Basic Financial Statements
The Town’s investment in capital assets for its governmental and business-type activities as of June 30, 2012,
totals $230 million and $199.5 million, respectively (net of accumulated depreciation). This investment in capital
assets includes land, buildings, land improvements, equipment, vehicles and infrastructure. Current year fixed
asset additions totaled $5 million for governmental activities, and $8.4 million for business-type activities. The
Town also placed in service $22 million in governmental assets previously reported as construction in progress,
primarily related to the new public safety building. The Town placed $24 million in business-type assets
previously reported as construction in progress, primarily related to airport construction.
Long-term and Short-term Debt
At the end of the current fiscal year, the Town of Nantucket had total long and short-term debt outstanding of
$161.6 million. The entire amount is classified as general obligation debt and is backed by the full faith and credit
of the Town. Of this amount, $10 million is in short-term notes and the remaining $151 million is outstanding long-
term debt. The governmental fund portion of the outstanding debt is $66.5 million. The enterprise funds’ portion
of the outstanding debt is $95 million.
Governmental Enterprise
Funds Funds Total
Short-term debt……………………………$ 1,000,000 $ 8,968,090 $ 9,968,090
Current portion of long-term debt……… 5,496,334 5,067,015 10,563,349
Noncurrent portion of long-term debt…… 59,973,182 81,065,978 141,039,160
Total………………………………………$ 66,469,516 $ 95,101,083 $ 161,570,599
Please refer to the notes to the financial statements for further discussion of the major capital and debt activity.
Economic Factors and Next Year’s Budgets and Rates
In fiscal year 2012, total assessed value of taxable property in the Town decreased by $364,259,714 or 2%. Tax
limitation laws in Massachusetts are primarily limits on tax revenue which consist of the prior year’s levy base,
plus 2.5%, plus revenue from new growth, plus any voter approved increases. The allowable increases to the
levy base for 2012 were $1,353,830 (2.5%) and $518,585 for new growth (.9%). The allowable tax levy was
further increased by debt payments on voter authorized borrowing.
The tax limitation laws protect municipalities from fluctuations in real estate values, whether those values are
increasing or decreasing, by forcing the tax rate to move in the opposite direction. In a declining real estate
market, tax rates increase to raise the allowable revenue. The residential rate for 2012 was $3.62 per $1,000 of
assessed value. The average residential assessed value was $1,489,345 million in 2012, a decrease of 2.4%
from 2011.
The 2012 Annual and Special Town Meetings approved a fiscal year 2013 total budget of $102,697,914 million,
including a total general fund budget of $76,038,855 million.
Requests for Information
This financial report is designed to provide a general overview of the Town of Nantucket’s finances for all those
with an interest in the government’s finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Finance Director, 16 Broad Street,
Nantucket, Massachusetts 02554.
Town of Nantucket, Massachusetts 13 Basic Financial Statements
Basic Financial Statements
Primary Government
Governmental Business-type
Activities Activities Total
ASSETS
CURRENT:
Cash and cash equivalents………………………………………………………….$ 37,661,060 $ 31,637,581 $ 69,298,641
Investments…………………………………………………………………………… 3,304,595 309,929 3,614,524
Investments, restricted……………………………………………………………… - - -
Receivables, net of allowance for uncollectibles:
Real estate and personal property taxes……………………………………… 3,472,823 - 3,472,823
Tax and trash liens………………………………………………………………… 2,538,594 - 2,538,594
Motor vehicle and other excise taxes…………………………………………… 174,010 - 174,010
User fees…………………………………………………………………………… 4,555 3,822,355 3,826,910
Departmental and other…………………………………………………………… 133,579 - 133,579
Special assessments……………………………………………………………… 25,171 49,532 74,703
Intergovernmental………………………………………………………………… 2,182,676 756,670 2,939,346
Deferred loss on refunding…………..……………………………………………… 68,206 - 68,206
Inventory……………………………………………………………………………… - 357,236 357,236
Working capital deposit……………………………………………………………… 1,810,600 - 1,810,600
Other assets…………………………………………………………………………… 9,658 - 9,658
Internal balances……………………………………………………………………… (18,775) 18,775 -
NONCURRENT:
Restricted assets:
Cash and cash equivalents……………….……………………………………… - - -
Investments………………………………………………………………………… - - -
Cash surrender value of life insurance………………………………………… - - -
Receivables, net of allowance for uncollectibles:
Intergovernmental………………………………………………………………… - 1,883,355 1,883,355
Special assessments……………………………………………………………… - 43,518 43,518
Deferred loss on refunding…………………………………………………………… 159,445 - 159,445
Land conservation rights……………………...……………………………………… - - -
Capital assets, not being depreciated……………………...……………………… 178,612,012 35,533,925 214,145,937
Capital assets, net of accumulated depreciation…………………………………… 50,911,135 163,983,524 214,894,659
TOTAL ASSETS………………………………………………………………………… 281,049,344 238,396,400 519,445,744
LIABILITIES
CURRENT:
Warrants payable……………………………………………………………………… 696,808 1,158,216 1,855,024
Accrued liabilities……………………………………………………………………… 34,751 32,701 67,452
Accrued payroll………………………………………………………………………… 1,503,698 165,360 1,669,058
Health claims payable………………………………………………………………… 778,820 - 778,820
Accrued interest……………………………………………………………………… 809,658 1,057,955 1,867,613
Payroll withholdings…………………………………………………………………… - - -
Security deposits……………………………………………………………………… - 331,928 331,928
Abandoned property………………………………………………………………… 1,507,511 - 1,507,511
Other liabilities………………………………………………………………………… 674,329 51,300 725,629
Compensated absences……………………………………………………………… 236,672 118,888 355,560
Workers' compensation……………………………………………………………… 89,510 - 89,510
Notes payable………………………………………………………………………… 1,000,000 8,968,090 9,968,090
Bonds and notes payable…………………………………………………………… 5,523,236 6,447,617 11,970,853
NONCURRENT:
Landfill closure………………………………………………………………………… - 4,029,000 4,029,000
Compensated absences……………………………………………………………… 946,690 475,555 1,422,245
Workers' compensation……………………………………………………………… - - -
Court judgments……………………………………………………………………… - - -
Unamortized premium on bonds and notes payable……………………………… - - -
Other postemployment benefits……………………………………………………… 19,388,800 4,677,548 24,066,348
Bonds and notes payable…………………………………………………………… 60,036,071 81,065,978 141,102,049
TOTAL LIABILITIES……………………………………………………………………… 93,226,554 108,580,136 201,806,690
NET ASSETS
Invested in capital assets, net of related debt………………………………………… 182,940,477 119,950,372 302,890,849
Restricted for:
Debt service………………………………………………………...………………… - - -
Permanent funds:
Expendable……….………………………………………………………………… 27,779 - 27,779
Nonexpendable…………………………………………………………………… 44,305 - 44,305
Gifts and grants……………………………………………………………………… 2,387,325 - 2,387,325
Unrestricted………………………………………………………………………………… 2,422,904 9,865,892 12,288,796
TOTAL NET ASSETS……………………………………………………………………$ 187,822,790 $ 129,816,264 $ 317,639,054
See notes to basic financial statements.
STATEMENT OF NET ASSETS
JUNE 30, 2012
Town of Nantucket, Massachusetts 14 Basic Financial Statements
Nantucket
Islands
County Land Bank Total
$ 2,821,856 $ 2,913,644 $ 5,735,500
- 5,670,079 5,670,079
- 1,171,692 1,171,692
- - -
- - -
- - -
- - -
- 175,586 175,586
- - -
- - -
- - -
- 214,788 214,788
- - -
247,347 355,693 603,040
- - -
- 1,829,499 1,829,499
- 2,847,448 2,847,448
- 646,696 646,696
- - -
- - -
- - -
- 30,000 30,000
28,458 240,424,440 240,452,898
66,954 16,500,932 16,567,886
3,164,615 272,780,497 275,945,112
995 298,420 299,415
- 396,277 396,277
3,337 - 3,337
- - -
- - -
9,424 - 9,424
- - -
- - -
37,928 - 37,928
- - -
- - -
- - -
- 4,764,125 4,764,125
- - -
- - -
- - -
- - -
- - -
169,652 348,900 518,552
- 29,853,741 29,853,741
221,336 35,661,463 35,882,799
95,412 222,310,006 222,405,418
- 4,676,947 4,676,947
- - -
- - -
- - -
2,847,867 10,132,081 12,979,948
$ 2,943,279 $ 237,119,034 $ 240,062,313
Component Units
Town of Nantucket, Massachusetts 15 Basic Financial Statements
Operating Capital
Charges for Grants and Grants and Net (Expense)
Functions Expenses Services Contributions Contributions Revenue
Primary Government:
Governmental Activities:
General government…………………… $ 7,772,995 $ 741,512 $ 686,576 $ - $ (6,344,907)
Public safety……………………………… 13,601,442 1,668,420 525,627 - (11,407,395)
Education………………………………… 29,011,944 780,977 3,607,586 - (24,623,381)
Public works……………………………… 4,692,304 276,502 224,840 513,177 (3,677,785)
Community preservation………………… 2,242,077 - - 517,038 (1,725,039)
Human services………………………… 3,741,941 82,788 67,071 - (3,592,082)
Culture and recreation…………………… 2,170,903 522,063 100,363 - (1,548,477)
Interest…………………………………… 2,082,337 - - - (2,082,337)
Total Governmental Activities………… 65,315,943 4,072,262 5,212,063 1,030,215 (55,001,403)
Business-Type Activities:
Water……………………………………… 4,357,175 5,059,598 230,778 - 933,201
Sewer……………………………………… 5,760,776 5,489,598 342,187 - 71,009
Solid waste………………………………… 8,851,378 3,060,459 - - (5,790,919)
Airport……………………………………… 15,331,231 12,939,901 168,330 4,041,191 1,818,191
Our Island Home………………………… 6,923,716 6,297,629 5,204 - (620,883)
Total Business-Type Activities……… 41,224,276 32,847,185 746,499 4,041,191 (3,589,401)
Total Primary Government……………$ 106,540,219 $ 36,919,447 $ 5,958,562 $ 5,071,406 $(58,590,804)
Component Units:
County……………………………………… 1,155,618 538,808 636,705 401,815 421,710
Land Bank………………………………… 5,831,601 14,652,988 1,566,321 - 10,387,708
Total Component Units………………. $ 6,987,219 $ 15,191,796 $ 2,203,026 $ 401,815 $10,809,418
See notes to basic financial statements.(Continued)
Program Revenues
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2012
Town of Nantucket, Massachusetts 16 Basic Financial Statements
Nantucket
Governmental Business-Type Islands
Activities Activities Total County Land Bank Total
Changes in net assets:
Net (expense) revenue from previous page…………$(55,001,403) $(3,589,401) $(58,590,804) $421,710 $10,387,708 $10,809,418
General revenues:
Real estate and personal property taxes,
net of tax refunds payable……………………… 61,491,535 - 61,491,535 - - -
Tax liens…………………………………………… 371,752 - 371,752 - - -
Motor vehicle and other excise taxes…………… 2,066,878 - 2,066,878 - - -
Hotel and meals taxes…………………………… 2,745,571 - 2,745,571 - - -
Penalties and interest on taxes………………… 687,221 - 687,221 - -
Community Preservation Fund surcharges…… 1,724,556 - 1,724,556 - - -
Payments in lieu of taxes………………………… 7,329 - 7,329 - -
Grants and contributions not restricted to
specific programs………………………………… 307,901 - 307,901 - - -
Unrestricted investment income………………… 173,698 11,993 185,691 - - -
Gain/(loss) on sale of capital assets…………… 813,011 - 813,011 - (48,991) (48,991)
Miscellaneous……………………………………… 431,349 - 431,349 151,654 - 151,654
Capital contributions………………………………… (28,355) 28,355 - - - -
Transfers, net………………………………………… (11,203,631) 11,203,631 - - - -
Total general revenues and transfers……………… 59,588,815 11,243,979 70,832,794 151,654 (48,991) 102,663
Change in net assets…………………………… 4,587,412 7,654,578 12,241,990 573,364 10,338,717 10,912,081
Net Assets:
Beginning of year, as restated…………………… 183,235,378 122,161,686 305,397,064 2,369,915 226,780,317 229,150,232
End of year………………………………………… $ 187,822,790 $ 129,816,264 $ 317,639,054 $ 2,943,279 $ 237,119,034 $ 240,062,313
(Concluded)
Primary Government Component Units
STATEMENT OF ACTIVITIES (Continued)
FISCAL YEAR ENDED JUNE 30, 2012
Town of Nantucket, Massachusetts 17 Basic Financial Statements
Component
Nonmajor Total Unit -
Town Governmental Governmental Nantucket
ASSETS General Capital Projects Funds Funds County
Cash and cash equivalents…………………………………$ 17,197,704 $ 5,370,795 $ 15,092,561 $ 37,661,060 $ 2,821,856
Investments…………………………………………………… 2,943,522 - 87,333 3,030,855 -
Receivables, net of uncollectibles:
Real estate and personal property taxes……………… 3,371,036 - 101,787 3,472,823 -
Tax liens ……………………….………………………… 2,499,570 - 39,024 2,538,594 -
Motor vehicle and other excise taxes………………… 174,010 - - 174,010 -
User fees………………………………………………… 4,555 - - 4,555 -
Departmental and other………………………………… 951 - 132,628 133,579 -
Special assessments…………………………………… -- 25,171 25,171 -
Intergovernmental………………………………………… 342,729 - 1,839,947 2,182,676 -
Due from other funds………………………………………… 555,126 - - 555,126 -
Other assets………………………………………………… 9,658 - - 9,658 247,347
TOTAL ASSETS…………………………………………… $ 27,098,861 $ 5,370,795 $ 17,318,451 $ 49,788,107 $ 3,069,203
LIABILITIES AND FUND BALANCES
LIABILITIES:
Warrants payable…………………………………………$ 464,476 $ 15,217 $ 211,006 $ 690,699 $ 995
Accrued liabilities………………………………………… 34,751 - - 34,751 -
Accrued payroll…………………………………………… 1,471,230 - 32,468 1,503,698 3,337
Payroll withholdings……………………………………… - - - - 9,424
Abandoned property……………………………………… 1,507,511 - - 1,507,511 -
Other liabilities…………………………………………… 401,692 - 272,637 674,329 37,928
Deferred revenues……………………………………… 4,643,054 - 332,448 4,975,502 -
Due to other funds……………………………………… 78,316 - 572,569 650,885 -
Notes payable…………………………………………… - - 1,000,000 1,000,000 -
TOTAL LIABILITIES………………………………………… 8,601,030 15,217 2,421,128 11,037,375 51,684
FUND BALANCES:
Nonspendable…………………………………………… - - 44,305 44,305 -
Restricted………………………………………………… - 5,355,578 14,957,124 20,312,702 1,647,742
Committed………………………………………………… 1,941,738 - - 1,941,738 -
Assigned………………………………………………… 2,182,323 - - 2,182,323 -
Unassigned……………………………………………… 14,373,770 - (104,106) 14,269,664 1,369,777
TOTAL FUND BALANCES………………………………… 18,497,831 5,355,578 14,897,323 38,750,732 3,017,519
TOTAL LIABILITIES AND FUND BALANCES……………$ 27,098,861 $ 5,370,795 $ 17,318,451 $ 49,788,107 $ 3,069,203
See notes to basic financial statements.
JUNE 30, 2012
GOVERNMENTAL FUNDS
BALANCE SHEET
Town of Nantucket, Massachusetts 18 Basic Financial Statements
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET ASSETS
JUNE 30, 2012
Total governmental fund balances……………………………………………………………………… $ 38,750,732
Capital assets (net) used in governmental activities are not financial resources
and, therefore, are not reported in the funds…………………………………………………… 229,523,147
Accounts receivable are not available to pay for current-period
expenditures and, therefore, are deferred in the funds………………………………………… 4,975,502
Internal service funds are used by management to account for retirees'
health insurance and workers' compensation activities.
The assets and liabilities of the internal service funds are included in
the governmental activities in the statement of net assets……………………………… 1,376,395
In the statement of activities, interest is accrued on outstanding long-term debt,
whereas in governmental funds interest is not reported until due……………………………… (809,658)
Long-term liabilities are not due and payable in the current period and, therefore,
are not reported in the governmental funds
Bonds payable…………………………………………………………………………………… (64,559,307)
Unamortized premiums on bonds and notes………………………………………………… (1,000,000)
Workers' compensation………………………………………………………………………… (89,510)
Compensated absences………………………………………………………………………… (1,183,362)
Other postemployment benefits………………………………………………………………… (19,388,800)
Net effect of reporting long-term liabilities……………………………………………… (86,220,979)
In the statement of activities, deferred losses are reported for refundings of
debt, which are amortized over the shorter of the remaining life of the
refunding bonds or refunded bonds. In governmental funds, defeasances
of debt are expensed when the refunding bonds are issued…………………………………… 227,651
Net assets of governmental activities………………………………………………………………… $ 187,822,790
See notes to basic financial statements.
Town of Nantucket, Massachusetts 19 Basic Financial Statements
Component
Nonmajor Total Unit -
Town Governmental Governmental Nantucket
General Capital Projects Funds Funds County
REVENUES:
Real estate and personal property taxes,
net of tax refunds…………………………………………………$ 61,795,660 $ - $ - $ 61,795,660 $ -
Tax liens……………………………………………………………… 325,055 - - 325,055 -
Motor vehicle and other excise taxes…………………………… 1,948,316 - 38,584 1,986,900 -
Hotel and meals taxes……………………………………………… 2,745,571 - - 2,745,571 -
Charges for services……………………………………………… 83,315 - 107,455 190,770 -
Community Preservation surcharges…………………………… - - 1,724,556 1,724,556 -
Penalties and interest on taxes…………………………………… 681,176 - 6,045 687,221 -
Payments in lieu of taxes………………………………………… 7,329 - - 7,329 -
Licenses and permits……………………………………………… 1,058,052 - - 1,058,052 -
Fines and forfeitures……………………………………………… 223,054 - - 223,054 -
Intergovernmental………………………………………………… 3,997,021 - 3,283,948 7,280,969 401,815
Departmental and other…………………………………………… 1,592,320 - 4,463,952 6,056,272 1,320,289
Investment income………………………………………………… 152,279 - 12,657 164,936 6,878
TOTAL REVENUES………………………………………… 74,609,148 - 9,637,197 84,246,345 1,728,982
EXPENDITURES:
Current:
County administration…………………………………………… - - - - 295,105
Registry of deeds……………………………………………… - - - - 477,412
Special projects………………………………………………… - - - - 380,695
General government…………………………………………… 7,179,875 20,690 428,232 7,628,797 -
Public safety…………………………………………………… 8,487,197 108,726 1,554,038 10,149,961 -
Education………………………………………………………… 22,496,281 - 2,377,203 24,873,484 -
Public works……………………………………………………… 2,582,349 34,005 751,682 3,368,036 -
Community preservation……………………………………… - - 2,660,023 2,660,023 -
Human services………………………………………………… 1,042,313 - 262,961 1,305,274 -
Culture and recreation………………………………………… 1,147,001 - 345,925 1,492,926 -
Pension benefits………………………………………………… 5,345,749 - - 5,345,749 -
Employee benefits……………………………………………… 6,134,157 - - 6,134,157 -
State and county charges………………………………………… 531,772 - - 531,772 -
Debt service:
Principal………………………………………………………… 6,656,685 - 1,170 6,657,855 -
Interest…………………………………………………………… 2,171,097 - - 2,171,097 -
TOTAL EXPENDITURES…………………………………… 63,774,476 163,421 8,381,234 72,319,131 1,153,212
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES…………………………………………………… 10,834,672 (163,421) 1,255,963 11,927,214 575,770
OTHER FINANCING SOURCES (USES):
Proceeds from bonds and notes………………………………… - 3,200,000 - 3,200,000 -
Proceeds from refunding bonds…………………………………… 1,329,900 - - 1,329,900 -
Premium from issuance of refunding bonds……………………… 212,513 - - 212,513 -
Payments to refunded bond escrow agent……………………… (1,519,037) - - (1,519,037) -
Transfers in………………………………………………………… 106,831 561,074 341,070 1,008,975 474,202
Transfers out………………………………………………………… (11,278,447) (179,206) (951,953) (12,409,606) (474,202)
TOTAL OTHER FINANCING SOURCES (USES)……… (11,148,240) 3,581,868 (610,883) (8,177,255) -
NET CHANGE IN FUND BALANCES……………………………… (313,568) 3,418,447 645,080 3,749,959 575,770
FUND BALANCES AT BEGINNING OF YEAR…………………… 18,811,399 1,937,131 14,252,243 35,000,773 2,441,749
FUND BALANCES AT END OF YEAR………………………………$ 18,497,831 $ 5,355,578 $ 14,897,323 $ 38,750,732 $ 3,017,519
See notes to basic financial statements.
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2012
Town of Nantucket, Massachusetts 20 Basic Financial Statements
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2012
Net change in fund balances - total governmental funds…………………………………………………… $ 3,749,959
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………………………………………………………………………………………… 5,047,157
Depreciation expense………………………………………………………………………………… (3,064,480)
Net effect of reporting capital assets………………………………………………………… 1,982,677
Revenues in the Statement of Activities that do not provide current financial
resources are fully deferred in the Statement of Revenues, Expenditures and
Changes in Fund Balances. Therefore, the recognition of revenue for various
types of accounts receivable (i.e., real estate and personal property, motor
vehicle excise, etc.) differ between the two statements. This amount represents
the net change in deferred revenue…………………………………………………………………… (854,845)
The issuance of long-term debt (e.g., bonds and leases) 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 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…………………………………………………………………… (3,200,000)
Debt service principal payments…………………………………………………………………… 6,657,855
Net effect of reporting long-term debt……………………………………………………… 3,457,855
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in the governmental funds.
Net change in compensated absences accrual…………………………………………………… 110,020
Net change in accrued interest on long-term debt………………………………………………… 113,864
Net change in workers' compensation……………………………………………………………… 159,864
Amortization of issuance costs……………………………………………………………………… 130,094
Amortization of deferred charge on refunding……………………………………………………… (80,056)
Amortization of premiums on bonds and notes payable………………………………………… 31,577
Other postemployment benefits…………………………………………………………………… (2,978,395)
Net effect of recording long-term liabilities and amortizing deferred losses…………… (2,513,032)
Internal service funds are used by management to account for health
insurance and workers' compensation activities.
The net activity of internal service funds is reported with Governmental Activities…………… (1,235,202)
Change in net assets of governmental activities…………………………………………………………… $ 4,587,412
See notes to basic financial statements.
Town of Nantucket, Massachusetts 21 Basic Financial Statements
Nantucket
Siasconset Memorial
Water Sewer Solid Waste Airport
ASSETS
CURRENT:
Cash and cash equivalents……………………………….………………$ 915,397 $ 7,400,158 $ 2,147,596 $ 11,533,140
Restricted cash and cash equivalents……………………………..…… - - - -
Investments………………………………………………………………… - - - -
Receivables, net of allowance for uncollectibles:
Land Bank accounts…………………………………………………… - - - -
User fees………………………………………………………………… 225,739 911,574 395,539 1,002,339
Sewer privilege fees…………………………………………………… - 49,532 - -
Intergovernmental……………………………………………………… - 133,831 - 622,839
Inventory…………………………………………………………………… - - - 227,213
Working capital deposit…………………………………………………… - - - -
Other assets………………………………………………………………… - - - -
Land deposits…………………………………………….………………… - - - -
Due from other funds……………………………………………………… 78,021 461,644 - 18,775
Total current assets………………………………………………… 1,219,157 8,956,739 2,543,135 13,404,306
NONCURRENT:
Receivables, net of allowance for uncollectibles:
Intergovernmental……………………………………………………… - 1,883,355 - -
Sewer privilege fees…………………………………………………… - 43,518 - -
Restricted cash and cash equivalents…………………………..……… - - - -
Restricted investments…………………………………………………… - - - -
Cash surrender value of life insurance…………………………………… - - - -
Land conservation rights…………………………………………………… - - - -
Capital assets, not being depreciated……………………...…………… 3,498,323 13,933,196 2,651,406 11,166,924
Capital assets, net of accumulated depreciation……………………… 8,516,935 68,521,849 6,369,948 51,335,315
Total noncurrent assets…………………………………………… 12,015,258 84,381,918 9,021,354 62,502,239
TOTAL ASSETS……………………………………………………………… 13,234,415 93,338,657 11,564,489 75,906,545
LIABILITIES
CURRENT:
Warrants payable…………………………………………………………… 3,596 84,520 140,315 780,548
Accrued liabilities…………………………………………………………… 5,003 - - 19,925
Accrued payroll……………………………………………………………… 411 15,100 563 58,271
Health claims payable……………………………………………………… - - - -
Security deposits…………………………………………………………… - - - 331,928
Accrued interest…………………………………………………………… 108,387 561,056 8,736 95,130
Other liabilities……………………………………………………………… - - - 51,300
Due to other funds………………………………………………………… - - - -
Compensated absences…………………………………………………… - 7,395 - 54,095
Notes payable……………………………………………………………… - - - 8,968,090
Bonds payable……………………………………………………………… 660,820 2,517,997 110,000 919,964
Total current liabilities……………………………………………… 778,217 3,186,068 259,614 11,279,251
NONCURRENT:
Landfill closure……………………………………………………………… - - 4,029,000 -
Compensated absences…………………………………………………… - 29,582 - 216,381
Notes payable……………………………………………………………… - - - -
Other postemployment benefits…………………………………………… 96,944 266,596 24,236 1,599,576
Bonds payable……………………………………………………………… 7,375,000 43,980,978 535,000 7,910,000
Total noncurrent liabilities………………………………………… 7,471,944 44,277,156 4,588,236 9,725,957
TOTAL LIABILITIES…………………………………………………………… 8,250,161 47,463,224 4,847,850 21,005,208
NET ASSETS
Invested in capital assets, net of related debt……………………………… 4,767,478 41,130,505 8,886,354 51,275,849
Restricted……………………………………………………………………… - - - -
Unrestricted:
Undesignated……………………………………………………………… 216,776 4,744,928 (2,169,715) 3,625,488
TOTAL NET ASSETS…………………………………………………………$ 4,984,254 $ 45,875,433 $ 6,716,639 $ 54,901,337
See notes to basic financial statements.
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2012
Business-type Activities - Enterprise Funds
Town of Nantucket, Massachusetts 22 Basic Financial Statements
Component
Unit
Governmental
Wannacomet Our Total Activities -
Water Island Business-Type Internal Service Nantucket Islands
Company Home Activities Fund Land Bank
$ 6,336,816 $ 3,304,474 $ 31,637,581 $ - $ 2,913,644
- - - - 1,171,692
- 309,929 309,929 273,740 5,670,079
- - - - 175,586
521,398 765,766 3,822,355 - -
- - 49,532 - -
- - 756,670 - -
130,023 - 357,236 - 214,788
- - - 1,810,600 -
- - - - 353,193
- - - - 2,500
- - 558,440 76,984 -
6,988,237 4,380,169 37,491,743 2,161,324 10,501,482
- - 1,883,355 - -
- - 43,518 - -
- - - - 1,829,499
- - - - 2,847,448
- - - - 646,696
- - - - 30,000
4,207,359 76,717 35,533,925 - 240,424,440
28,738,575 500,902 163,983,524 - 16,500,932
32,945,934 577,619 201,444,322 - 262,279,015
39,934,171 4,957,788 238,936,065 2,161,324 272,780,497
56,875 92,362 1,158,216 6,109 298,420
7,773 - 32,701 - 396,277
18,286 72,729 165,360 - -
- - - 778,820 -
- - 331,928 - -
284,646 - 1,057,955 - -
- - 51,300 - -
539,665 - 539,665 - -
25,648 31,750 118,888 - -
- - 8,968,090 - 4,764,125
2,238,836 - 6,447,617 - -
3,171,729 196,841 18,871,720 784,929 5,458,822
- - 4,029,000 - -
102,593 126,999 475,555 - -
- - - - 29,853,741
387,776 2,302,420 4,677,548 - 348,900
21,265,000 - 81,065,978 - -
21,755,369 2,429,419 90,248,081 - 30,202,641
24,927,098 2,626,260 109,119,801 784,929 35,661,463
13,312,567 577,619 119,950,372 - 222,310,006
- - - - 4,676,947
1,694,506 1,753,909 9,865,892 1,376,395 10,132,081
$ 15,007,073 $ 2,331,528 $ 129,816,264 $ 1,376,395 $ 237,119,034
Town of Nantucket, Massachusetts 23 Basic Financial Statements
Siasconset Nantucket
Water Memorial
Company Sewer Solid Waste Airport
OPERATING REVENUES:
Fee revenues…………………………………………...……………$- $ - $ - $ -
Golf course fee revenues………………………………………… - - - -
Rental income……………………………………………………… - - - -
Donated land………………………………………………………… - - - -
Charges for services……………………………………………… 1,150,107 5,312,936 3,060,459 12,921,369
Intergovernmental………………………………………………… - 342,187 - -
Other………………………………………………………………… - - - -
Contributions………………………………………………………… - - - -
TOTAL OPERATING REVENUES …………………………… 1,150,107 5,655,123 3,060,459 12,921,369
OPERATING EXPENSES:
Cost of services and administration……………………………… 188,183 2,161,378 8,310,385 11,322,671
Depreciation………………………………………………………… 146,216 2,036,045 493,906 2,403,673
Pension benefits…………………………………………………… - - - -
Employee benefits………………………………………………… 41,422 211,509 20,951 1,324,716
TOTAL OPERATING EXPENSES…………………………… 375,821 4,408,932 8,825,242 15,051,060
OPERATING INCOME (LOSS)……………………………… 774,286 1,246,191 (5,764,783) (2,129,691)
NONOPERATING REVENUES (EXPENSES):
Investment income………………………………………………… 5,071 5,388 - 18,532
Interest expense…………………………………………………… (306,861) (1,351,844) (26,136) (280,171)
Intergovernmental capital grants………………………………… - - - 4,209,521
Gain/(loss) on disposal of capital assets………………………… - - - -
TOTAL NONOPERATING
REVENUES (EXPENSES), NET…………………………… (301,790) (1,346,456) (26,136) 3,947,882
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS…………………………… 472,496 (100,265) (5,790,919) 1,818,191
Capital contributions…………………………………………………… - - - -
Capital contributions - privilege fees………………………………… - 171,274 - -
Transfers in…….……………………………………………………… - - 4,991,085 3,246,470
Transfers out…………………………………………………………… - - - -
CHANGE IN NET ASSETS……………………………………… 472,496 71,009 (799,834) 5,064,661
NET ASSETS AT BEGINNING OF YEAR, as restated…………… 4,511,758 45,804,424 7,516,473 49,836,676
NET ASSETS AT END OF YEAR…………………………………… $ 4,984,254 $ 45,875,433 $ 6,716,639 $ 54,901,337
See notes to basic financial statements.
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2012
Business-type Activities - Enterprise Funds
Town of Nantucket, Massachusetts 24 Basic Financial Statements
Component
Unit
Governmental
Wannacomet Our Total Activities -
Water Island Business-Type Internal Service Nantucket Islands
Company Home Activities Fund Land Bank
$- - $ - $ - $ 11,426,986
- - - - 2,983,802
- - - - 204,358
- - - - 1,460,400
3,909,491 6,297,629 32,651,991 - -
- - 342,187 - -
212,951 - 212,951 92,106 -
- 5,204 5,204 9,625,245 37,842
4,122,442 6,302,833 33,212,333 9,717,351 16,113,388
2,089,779 6,639,532 30,711,928 - 4,791,486
791,001 43,994 5,914,835 - -
- 9,549 9,549 - -
40,970 230,641 1,870,209 11,158,288 -
2,921,750 6,923,716 38,506,521 11,158,288 4,791,486
1,200,692 (620,883) (5,294,188) (1,440,937) 11,321,902
12,756 11,993 53,740 8,735 105,921
(752,743) - (2,717,755) - (1,040,115)
- - 4,209,521 - -
- - - - (48,991)
(739,987) 11,993 1,545,506 8,735 (983,185)
460,705 (608,890) (3,748,682) (1,432,202) 10,338,717
- 28,355 28,355 - -
- - 171,274 - -
- 3,227,042 11,464,597 197,000 -
(260,966) - (260,966) - -
199,739 2,646,507 7,654,578 (1,235,202) 10,338,717
14,807,334 (314,979) 122,161,686 2,611,597 226,780,317
$ 15,007,073 $ 2,331,528 $ 129,816,264 $ 1,376,395 $ 237,119,034
Town of Nantucket, Massachusetts 25 Basic Financial Statements
Siasconset Nantucket
Water Memorial
Company Sewer Solid Waste Airport
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users…………………………………………………………………………$ 929,178 $ 5,126,439 $ 3,277,123 $ 12,183,724
Employer and employee contributions to fund……………………………………………………………… - - - -
Receipts from other governments…………………………………………………………………………… - 342,187 - -
Receipts from other operating revenues…………………………………………………………………… - - - -
Payments to vendors………………………………………………………………………………………… (173,752) (1,366,171) (7,716,163) (7,931,950)
Payments to employees……………………………………………………………………………………… (12,330) (787,963) (19,628) (3,104,299)
Payments for interfund services used……………………………………………………………………… (41,422) (211,509) (20,951) (1,324,716)
NET CASH FROM OPERATING ACTIVITIES………………………………………………………………… 701,674 3,102,983 (4,479,619) (177,241)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in…………………………………………………………………………………………………… - - 4,991,085 3,246,470
Transfers out…………………………………………………………………………………………………… - - - -
Advances (to) from other funds……………………………………………………………………………… (10,435) (151,462) (63,374) (621,554)
NET CASH FROM NONCAPITAL FINANCING ACTIVITIES……………………………………………… (10,435) (151,462) 4,927,711 2,624,916
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from the issuance of bonds and notes………………………………………………………… 150,000 3,666,100 - 17,816,090
Capital grants………………………………………………………………………………………………… - - - 6,065,406
Sewer privilege fees…………………………………………………………………………………………… - 345,369 - -
Acquisition and construction of capital assets……………………………………………………………… (390,938) (202,613) - (5,864,062)
Net change in land deposits………………………………………………………………………………… - - - -
Principal payments on bonds and notes…………………………………………………………………… (675,000) (2,843,832) (110,000) (12,909,000)
Interest expense……………………………………………………………………………………………… (319,283) (1,038,671) (27,358) 25,446
Capital contributions.………………………………………………………………………………………… - - - -
NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES………………………………… (1,235,221) (73,647) (137,358) 5,133,880
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments……………………………………………………………………………………… - - - -
Investment income…………………………………………………………………………………………… 5,071 5,388 - 18,532
NET CASH FROM INVESTING ACTIVITIES………………………………………………………………… 5,071 5,388 - 18,532
NET CHANGE IN CASH AND CASH EQUIVALENTS……………………………………………………… (538,911) 2,883,262 310,734 7,600,087
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR…………………………………………… 1,454,308 4,516,896 1,836,862 3,933,053
CASH AND CASH EQUIVALENTS AT END OF YEAR………………………………………………………$ 915,397 $ 7,400,158 $ 2,147,596 $ 11,533,140
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
FROM OPERATING ACTIVITIES:
Operating income (loss)………………………………………………………………………………………$ 774,286 $ 1,246,191 $ (5,764,783) $ (2,129,691)
Adjustments to reconcile operating income (loss) to net
cash from operating activities:
Depreciation………………………………………………………………………………………………… 146,216 2,036,045 493,906 2,403,673
Loss on disposal of capital assets……………………………………………………………………… - - - -
Changes in assets and liabilities:
Increase in cash value of life insurance……………………………………………………………… - - - -
Insurance reimbursements……………………..…………………………………………………… - - - -
User fees………………………………………………………………………………………………… (220,929) (186,497) 216,664 (737,645)
Accounts receivable………………………………………………………………….………………… - - - -
Inventory………………………………………………………………………………………………… - - - 312,683
Other assets…………………………………………………………………………………………… - - - -
Warrants payable……………………………………………………………………………………… (9,987) (38,202) (388,458) 364,620
Accrued liabilities……………………………………………………………………………………… (3,096) - (5,727) (572,781)
Accrued payroll………………………………………………………………………………………… 292 3,212 56 17,613
Health claims payable………………………………………………………………………………… - - - -
Landfill closure………………………………………………………………………………………. - - 965,000 -
Other liabilities………………………………………………………………………………………… - - - 550
Accrued compensated absences…………………………………………………………………… - 1,281 - (81,981)
Other postemployment benefit……………………………………………………………………… 14,892 40,953 3,723 245,718
Total adjustments…………………………………………………………………………………… (72,612) 1,856,792 1,285,164 1,952,450
NET CASH FROM OPERATING ACTIVITIES…………………………………………………………………$ 701,674 $ 3,102,983 $ (4,479,619) $ (177,241)
NONCASH INVESTING CAPITAL AND FINANCING ACTIVITIES:
Intergovernmental subsidy of debt service principal………………………………………………………$- $ 124,853 $ - $ -
Intergovernmental subsidy of debt service interest………………………………………………………… - 346,240 - -
Bond premium amortization………………………………………………………………………………… (85,820) - - -
See notes to basic financial statements.
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2012
Business-type Activities - Enterprise Funds
Town of Nantucket, Massachusetts 26 Basic Financial Statements
Component
Unit
Governmental
Wannacomet Our Total Activities
Water Island Business-Type Internal Service Nantucket Islands
Company Home Activities Fund Land Bank
$ 4,104,512 $ 6,214,396 $ 31,835,372 $ - $ 18,864,899
- 5,204 5,204 9,723,617 -
- - 342,187 - -
- - - 92,106 1,702,600
(1,134,987) (1,219,101) (19,542,124) (11,152,940) (6,551,706)
(1,303,363) (5,235,372) (10,462,955) - (1,719,412)
(40,970) (230,641) (1,870,209) - -
1,625,192 (465,514) 307,475 (1,337,217) 12,296,381
- 3,227,042 11,464,597 197,000 -
(260,966) - (260,966) - -
(3,905) 348,285 (502,445) 225,783 -
(264,871) 3,575,327 10,701,186 422,783 -
6,960,000 - 28,592,190 - -
- - 6,065,406 - -
- - 345,369 - -
(1,573,465) (46,112) (8,077,190) - (5,401,636)
- - - - -
(5,840,000) - (22,377,832) - (5,592,312)
(297,039) - (1,656,905) - (1,040,115)
- 28,355 28,355 - -
(750,504) (17,757) 2,919,393 - (12,034,063)
- (309,929) (309,929) (273,740) (597,953)
12,756 11,993 53,740 8,735 105,921
12,756 (297,936) (256,189) (265,005) (492,032)
622,573 2,794,120 13,671,865 (1,179,439) (229,714)
5,714,243 510,354 17,965,716 1,179,439 3,143,358
$ 6,336,816 $ 3,304,474 $ 31,637,581 $ - $ 2,913,644
$ 1,200,692 $ (620,883) $ (5,294,188) $ (1,440,937) $ 11,321,902
791,001 43,994 5,914,835 - 988,783
- - - - 48,991
- - - - (20,568)
- - - 49,407 -
(17,930) (83,233) (1,029,570) - -
- - - - (49,932)
(13,641) - 299,042 - (70,191)
- - - - (52,350)
(373,336) (58,519) (503,882) 5,348 -
(8,813) (3,562) (593,979) - 129,746
6,249 26,048 53,470 - -
- - - 48,965 -
- - 965,000 - -
- - 550 - -
(18,598) (123,043) (222,341) - -
59,568 353,684 718,538 - -
424,500 155,369 5,601,663 103,720 974,479
$ 1,625,192 $ (465,514) $ 307,475 $ (1,337,217) $ 12,296,381
$- $ - $ 124,853 $ - $ -
- - 346,240 - -
(12,830) - - - -
Town of Nantucket, Massachusetts 27 Basic Financial Statements
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30, 2012
Private
Purpose Agency
Trust Funds Funds
ASSETS
Cash and cash equivalents……………………………………$ 568,942 $ 105,682
Investments…………………………………………………… 1,932,065 -
TOTAL ASSETS…………………………………………………… 2,501,007 105,682
LIABILITIES
Warrants payable……………………………………………… 1,961 4,838
Liabilities due depositors……………………………………… - 100,844
TOTAL LIABILITIES……………………………………………… 1,961 105,682
NET ASSETS
Held in trust for other purposes………………………………$ 2,497,532 $ -
See notes to basic financial statements.
Town of Nantucket, Massachusetts 28 Basic Financial Statements
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2012
Private
Purpose
Trust Funds
ADDITIONS:
Contributions:
Rental income…………………………………………………………………………………$ 5,700
Private donations……………………………………………………………………………… 51,852
Total contributions………………………………………………………………………… 57,552
Net investment income (loss):
Interest………………………………………………………………………………………… 85,226
TOTAL ADDITIONS……………………………………………………………………… 142,778
DEDUCTIONS:
Educational scholarships…………………………………………………………………… 59,568
Human services……………………………………………………………………………… 121,317
TOTAL DEDUCTIONS…………………………………………………………………… 180,885
CHANGE IN NET ASSETS……………………………………………………………… (38,107)
NET ASSETS AT BEGINNING OF YEAR…………………………………………………… 2,535,639
NET ASSETS AT END OF YEAR………………………………………………………………$ 2,497,532
See notes to basic financial statements.
Town of Nantucket, Massachusetts 29 Basic Financial Statements
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 30 Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Notes to Basic Financial Statements
The accompanying basic financial statements of the Town of Nantucket, 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 significant accounting policies are described
herein.
A. Reporting Entity
The Town is a municipal corporation that is governed by an elected five member Board of Selectmen.
For financial reporting purposes, the Town has included all funds, organizations, agencies, boards, commissions
and institutions. The Town has also considered all potential component units 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. As
required by GAAP, these basic financial statements present the Town (the primary government) and its
component units. Two entities have been included as component units in the reporting entity, because of the
significance of their operational and/or financial relationships with the Town.
Discretely Presented Component units – Discretely presented component units are entities that are legally
separate from the Town, but for which the Town is financially accountable, or whose relationship with the Town is
such that exclusion would cause the Town’s financial statements to be misleading or incomplete. These
component units are reported in separate columns to emphasize that they are legally separate from the Town.
In the Governmental Funds:
(1) The County of Nantucket (County) has the same geographical boundaries as the Town of Nantucket, and
the Town’s selectmen serve ex officio as the County Commissioners. The principal services provided by
the County are the Registry of Deeds and the Corrections Office.
In the Enterprise Funds:
(1) The Nantucket Islands Land Bank (Land Bank) was created by Chapter 669 of the Acts of 1983 of the
Commonwealth of Massachusetts to acquire and manage open space and resource protection within
Nantucket County. The Land Bank is administered by the Nantucket Islands Land Bank Commission
comprised of five elected members.
Availability of Financial Information for Component Units and Certain Town Enterprise Funds
The Nantucket Islands Land Bank issues separate audited financial statements. A copy of the complete financial
statements can be obtained by contacting them at 22 Broad Street, Nantucket, MA 02554.
Nantucket Memorial Airport issues separate audited financial statements. A copy of the complete financial
statements can be obtained by contacting them at 14 Airport Road, Nantucket, MA 02554.
The Wannacomet Water Company issues separate audited financial statements. A copy of the complete financial
statements can be obtained by contacting them at 1 Milestone Road, Nantucket, MA 02554.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 31 Basic Financial Statements
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 and its component units.
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
Major funds must be reported if the following criteria are met:
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
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.
Internal service funds and fiduciary funds are reported by fund type.
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:
Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment.
Grants and contributions that are restricted to meeting the operational requirements of a particular
function or segment.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 32 Basic Financial Statements
Grants and contributions that are restricted to meeting the capital requirements of a particular function or
segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. However, the effect of interfund services provided and used between functions is not eliminated as
the elimination of these charges would distort the direct costs and program revenues reported for the functions
affected.
Fund Financial Statements
Governmental fund financial statements are reported using the flow of 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., 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 unmatured interest on general long-term debt which is recognized when due, and certain
compensated absences and, claims and judgments which are recognized when the obligations are expected to
be liquidated with current expendable available resources.
Real estate and personal property tax revenues are considered available if they are collected within 60 days after
fiscal year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become
measurable and available when the cash is received and are recognized as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria
is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other
grant requirements are met.
The following major governmental funds are reported:
The General Fund is the primary operating fund. It is used to account for all financial resources, except those that
are required to be accounted for in another fund.
The capital projects fund is used to account for and report financial resources that are restricted, committed, or
assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other
capital assets of the governmental funds.
The nonmajor governmental funds consist of other special revenue and permanent funds that are aggregated and
presented in the nonmajor governmental funds column on the governmental funds financial statements. The
following describes the general use of these fund types:
The special revenue fund is used to account for and report the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other than permanent funds.
The permanent fund is used to account for and report financial resources that are legally restricted to the extent
that only earnings, not principal, may be used for purposes that support the governmental programs.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 33 Basic 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.
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 and component unit are reported:
The Siasconset Water enterprise fund is used to account for the Town’s water distribution activities within its
service area.
The Sewer enterprise fund is used to account for the Town’s sewer activities.
The Solid Waste enterprise fund is used to account for the Town’s landfill activities.
The Nantucket Memorial Airport enterprise fund is used to account for the operations of the Town’s airport.
The Wannacomet Water Company enterprise fund is used to account for the Town’s water distribution activities
within its service area.
The Our Island Home enterprise fund is used to account for the Town’s nursing home activities.
The internal service fund is used to account for the financing of services provided by one department to other
departments or governmental units. This fund is used to account for risk financing activities related to health
insurance and workers’ compensation.
The Nantucket Islands Land Bank component unit is used to account for the activity of the Nantucket Islands
Land Bank.
Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and
use the accrual basis of accounting. Fiduciary funds are used to account for assets held 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
pension trust fund or permanent fund, 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.
D. Cash and Investments
Government-Wide and Fund Financial Statements
Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with
an original maturity of three months or less from the date of acquisition. Investments are carried at fair value.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 34 Basic Financial Statements
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 the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of
accounting. The recognition of revenue related to accounts receivable reported in the governmental funds
financial statements are reported under the modified accrual basis of accounting.
Real Estate, Personal Property Taxes and Tax Liens
Real estate and personal property taxes are levied and based on values assessed on January 1st of every year.
Assessed values are established by the Board of Assessor’s for 100% of the estimated fair market value. Taxes
are due on November 1st and May 1st and are subject to penalties and interest if they are not paid by the
respective due date. Real estate and personal property taxes levied are recorded as receivables in the fiscal year
of the levy.
The Town has the legal authority to impose real estate tax liens on delinquent properties. Liens are recorded as
receivables in the fiscal year they are imposed.
Real estate receivables which have been secured via the tax lien process are considered 100% collectible.
Accordingly, an allowance for uncollectibles is not reported. An allowance of uncollectibles for other real estate
receivables is estimated based on historical trends and specific account analysis.
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 and Other Excise Taxes
Motor vehicle excise taxes are assessed annually for each vehicle registered 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. Boat excise taxes are assessed annually for each boat registered and are recorded as receivables in the
fiscal year of the levy. The Commonwealth is responsible for reporting the number of boats registered and the fair
value of those boats. The tax calculation is the fair value of the boat multiplied by $10 per $1,000 of value.
The allowance for uncollectibles is estimated based on historical trends and specific account analysis.
Departmental and Other
Departmental and other receivables consist primarily of police and fire details and are recorded as receivables in
the fiscal year accrued. The allowance of uncollectibles is estimated based on historical trends and specific
account analysis.
Special Assessments
Special Assessments consist of betterments assessed to residents of Golf View Drive in relation to the Town’s
Septic Loan Betterment program. The allowance of uncollectibles is estimated based on historical trends and
specific account analysis.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 35 Basic Financial Statements
Intergovernmental
Various federal and state grants for operating and capital purposes are applied for and received annually. For
non-expenditure driven grants, receivables are recorded as soon as all eligibility requirements imposed by the
provider have been met. For expenditure driven grants, receivables are recorded 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.
Water User Fees
Water User Fees for Siasconset Water are levied monthly based on individual meter readings.
Water User Fees for Wannacomet Water Company are levied monthly based on individual meter readings and
average bills.
All water fees are subject to penalties and interest if they are not paid by the respective due date. Unbilled water
fees at year-end are accrued and are recorded as revenue in the current period.
Sewer User Fees
Sewer User Fees are levied monthly based on individual meter readings and average bills and are subject to
penalties and interest if they are not paid by the respective due date. Unbilled user fees at year-end are accrued
and are recorded as revenue in the current period.
The Town has the ability to issue Water and Sewer liens for delinquent fees which are included as a lien on the
property owner’s tax bill. Water and Sewer charges and liens are recorded as receivables in the fiscal year of the
levy.
Allowances for uncollectible water and sewer fees are estimated based on historical trends and specific account
analysis.
Landfill User Fees
The outstanding receivable for Landfill User Fees is comprised of annual commercial fees assessed to
restaurants and inns and monthly tipping fees charged to private haulers.
Airport User Fees
The outstanding receivable for Airport User Fees is comprised primarily of fuel sales.
Sewer Privilege Fees
Sewer privilege fees consist of betterments assessed to homeowners in relation to upgrades to the Surfside
Wastewater Treatment Plant.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 36 Basic Financial Statements
F. Inventories
Government-Wide and Fund Financial Statements
Inventories of the Nantucket Memorial Airport and the Wannacomet Water Company are priced at the lower of
cost or market, with cost being determined on the first-in, first-out method basis. Expendable supplies and small
tools are not inventoried but rather expensed when purchased.
All other inventories are recorded as expenditures at the time of purchase. Such inventories are not material in
total to the government-wide and fund financial statements, and therefore are not reported.
G. Restricted Assets
Government-Wide and Fund Financial Statements
Certain assets of the enterprise funds and component units are classified as restricted because their use is
restricted by contract covenants.
H. Capital Assets
Government-Wide and Proprietary Fund Financial Statements
Capital assets, which include land, construction in progress, land improvements, plant, buildings, vehicles,
machinery and equipment, furniture, fixtures and company equipment, and infrastructure (e.g., roads, water
mains, sewer mains, and similar items), are reported in the applicable governmental or business-type activity
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 when actual historical cost could not be
determined. 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.
All purchases and construction costs in excess of $10,000 are capitalized at the date of acquisition or
construction, respectively, with expected useful lives of greater than one year.
Capital assets (excluding land) are depreciated on a straight-line basis. The estimated useful lives of capital
assets are as follows:
Estimated
Useful
Life
(in years)
Vehicles………………………………………… 5
Machinery and equipment……………………… 5-15
Runway improvements………………………… 20
Water infrastructure…………………………… 40-70
Buildings and improvements…………………… 33-50
Capital Asset Type
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.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 37 Basic Financial Statements
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the acquiring fund in the fiscal year of the purchase.
I. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may result in
amounts owed between funds.
Government-Wide Financial Statements
Transactions of a buyer/seller nature between and within governmental funds and internal service 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.
J. Interfund Transfers
During the course of its operations, resources are permanently reallocated between and within funds. These
transactions are reported as transfers in and transfers out.
Government-Wide Financial Statements
Transfers between and within governmental funds and fiduciary funds are eliminated from the governmental
activities in the statement of activities. 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
Transfers between and within funds are not eliminated from the individual fund statements and are reported as
transfers in and transfers out.
K. 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
L. Net Assets and Fund Equity
Government-Wide Financial Statements (Net Assets)
Net assets reported as “invested in capital assets, net of related debt” includes capital assets, net of accumulated
depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 38 Basic Financial Statements
capital related debt are not considered to be capital assets. Outstanding debt relating to future reimbursements
from the Massachusetts Water Pollution Abatement Trust is not considered to be capital related debt.
Net assets are reported as restricted when amounts are not available for appropriation or are legally restricted by
outside parties for a specific future use.
Net assets have been “restricted for” the following:
“Permanent funds - expendable” represents amounts held in trust for which the expenditures are restricted by
various trust agreements.
“Permanent funds - nonexpendable” represents amounts held in trust for which only investment earnings may be
expended.
“Gifts and grants” represents restrictions placed on assets from outside parties.
Fund Financial Statements (Fund Balances)
Governmental fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned
based on the extent to which the government is bound to honor constraints on the specific purposes for which
amounts in those funds can be spent.
The governmental fund balance classifications are as follows:
“Nonspendable” fund balance includes amounts that cannot be spent because they are either not in spendable
form or they are legally or contractually required to be maintained intact.
“Restricted” fund balance includes amounts subject to constraints placed on the use of resources that are either
externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or that are
imposed by law through constitutional provisions or enabling legislation.
“Committed” fund balance includes amounts that can only be used for specific purposes pursuant to constraints
imposed by formal action of the government’s highest level of decision-making authority, which is a Town Meeting
vote. Once committed, the limitation imposed by the vote remains in place until the funds are used on their
intended purpose or a Town Meeting vote is taken to remove or revise the commitment.
“Assigned” fund balance includes amounts that are constrained by the Town’s intent to be used for specific
purposes, but are neither restricted nor committed.
“Unassigned” fund balance includes the residual classification for the general fund. This classification represents
fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned
to specific purposes within the general fund.
The Town’s spending policy is to spend restricted fund balance first, followed by committed, assigned and
unassigned fund balance. Most governmental funds are designated for one purpose at the time of their creation.
Therefore, any expenditure from the fund will be allocated to the applicable fund balance classifications in the
order of the aforementioned spending policy. The general fund and certain other funds may have more than one
purpose.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 39 Basic Financial Statements
M. Long-term debt
Government-Wide and Proprietary Fund Financial Statements
Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net 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.
N. Investment Income
Excluding the permanent funds, investment income derived from major and nonmajor governmental funds is
legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL).
O. Compensated Absences
Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements,
state laws and executive policies.
Government-Wide and Proprietary Fund Financial Statements
Vested or accumulated sick leave are reported as liabilities and expensed as incurred.
Governmental Fund Financial Statements
Vested or accumulated sick leave, which will be liquidated with expendable available financial resources, are
reported as expenditures and fund liabilities.
P. Individual Fund Deficits
At June 30, 2012, there was an individual fund deficit within a special revenue fund related to police off-duty
details, which is classified as non-major governmental funds in the fund financial statements. This deficit is
expected to be funded through departmental collections during fiscal year 2013.
Q. Use of Estimates
Government-Wide and Fund Financial Statements
The preparation of basic financial statements in conformity with GAAP requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets
and liabilities at the date of the basic financial statements and the reported amounts of the revenues and
expenditures/expenses during the fiscal year. Actual results could vary from estimates that were used.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 40 Basic Financial Statements
R. 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 the equivalent of consolidated financial information.
NOTE 2 – CASH AND INVESTMENTS
A cash and investment pool is maintained that is available for use by all funds. Each fund type's portion of this
pool is displayed on the balance sheet as "Cash and cash equivalents". The deposits and investments of the
trust funds are held separately from those of other funds.
Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates
of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment
Pool (the Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans,
which are legal for the investment of funds of savings banks under the laws of the Commonwealth.
The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts
Municipal Depository Trust (MMDT), which was established by the Treasurer of the Commonwealth who serves
as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares.
The Town participates in MMDT, which maintains a cash portfolio and a short-term bond fund with combined
average maturities of approximately 3 months.
Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the Town of Nantucket’s deposits may
not be returned to it. The Town, including the primary government, Nantucket County, and Nantucket Islands
Land Bank component units, has adopted a deposit policy which stipulates that the Treasurer will review each
bank doing business with the Town on a quarterly basis. The policy does not restrict the value of uninsured or
uncollateralized investments held at any point in time.
Primary Government
At fiscal year-end, the carrying amount of deposits of the primary government totaled $66,044,483 and the bank
balance totaled $67,681,501. Of the bank balance, $2,802,537 was covered by the Federal Depositors Insurance
Company, $8,124,274 was covered by the Depositors Insurance Fund, and $56,754,690 was collateralized.
Component Unit-County
At fiscal year-end, the carrying amount of deposits of Nantucket County totaled $2,821,856 and the bank balance
totaled $2,840,262. Of the bank balance, $750,000 was covered by Federal Depository Insurance and the
remaining $2,090,262 was fully collateralized.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 41 Basic Financial Statements
Component Unit-Nantucket Islands Land Bank
The Land Bank considers securities purchased within six months of their date of maturity to be cash equivalents.
The Land Bank holds a substantial amount of cash in time certificates of deposit and Federal treasury obligations.
Cash and equivalents are insured by the Federal Depositors Insurance Company (“FDIC”), Depositors Insurance
Fund (“DIF”) and the full faith pledge of the Commonwealth of Massachusetts. From time to time, the Land
Bank’s cash balances fluctuate and can exceed the federally insured limit of $250,000.
At fiscal year-end, the carrying amount of deposits of the Nantucket Islands Land Bank totaled $4,743,143, of
which $300,294 was exposed to custodial credit risk.
The Land Bank, as part of a Land purchase in previous years, is required to maintain a reserve fund to cover the
purchase of Life Insurance to be used to pay off the note at the time of the seller’s death. These reserve funds
are included in restricted cash and cash equivalents in the accompanying financial statements.
Investments
As of June 30, 2012, the Town of Nantucket had the following investments:
Primary Government
Under 1-5
Fair Value 1 Year Years
Debt Securities:
Federal Home Loan Bank………………………………………$ 472,718 $ - $ 472,718
Federal Home Loan Mortgage Corporation.........................1,391,635 203,658 1,187,977
Federal National Mortgage Association.............................. 1,143,734 253,042 890,692
Federal Home Loan Mortgage Corporation Gold................ 927 - 927
United States Treasury Notes............................................. 2,537,575 354,696 2,182,879
Repurchase Agreements………………………………………2,165,609 2,165,609 -
Total Debt Securities............................................................. 7,712,198 $ 2,977,005 $ 4,735,193
Other Investments:
MMDT……………………………………………………………… 1,763,173
Total Investments..................................................................$ 9,475,371
Maturity
Component Unit-County
The County did not have any investments as of June 30, 2012.
Component Unit-Nantucket Islands Land Bank
At June 30, 2012, the Land Bank’s investments of $9,689,219 represent certificates of deposits that are insured
by the FDIC and Depositors Insurance Fund. The investments are stated at the fair market value, are unrated in
terms of credit risk quality ratings, and all mature in less than 1 year.
The Land Bank has entered into an agreement with the Town of Nantucket, which requires the Land Bank to
establish a working capital reserve fund; the balance of this fund is reported as designated investments. This
fund, along with the pledge of the Town of Nantucket of its full faith and credit, secures the Series 2007A and
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 42 Basic Financial Statements
Series 2009A bonds outstanding as of June 30, 2012. In addition, the Land Bank is prohibited from acquiring
additional real estate at any time that an amount equal to one year’s debt service in the reserve fund is not on
deposit.
Custodial Credit Risk – Investments
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to
recover the value of its investments or collateral security that are in the possession of an outside party. The
Town, including the primary government and Nantucket County component unit, does have an investment policy
addressing custodial credit risk which requires that all securities not held directly by the Town & County must be
held by a third party custodian approved by the Treasurer in the Town or County’s name and tax identification
number. The policy also requires that Treasurer receive monthly safekeeping reports from the custodian as well
as safekeeping receipts detailing each transaction from the account. The Land Bank currently follows investment
policies largely defined by the Commonwealth of Massachusetts, as well as internal Land Bank investment
policies.
Primary Government
The Town’s investments of $472,718 in Federal Home Loan Bank, $1,391,636 in Federal Home Loan Mortgage
Corporation, $1,143,734 in Federal National Mortgage Association $927 in Federal Home Loan Mortgage
Corporation Gold, and $2,537,575 in U.S. Treasury Notes are held by a broker-dealer where the Town’s assets
are segregated from the broker-dealer firm assets and are protected up to $500,000 under coverage through the
Securities Investor Protection Corporation (SIPC). Additionally, the broker-dealer carries excess insurance to
cover claims over the SIPC limit through Lloyd’s with a firm cap of $1 billion with no individual client limit. The
repurchase agreement consists of an overnight sweep agreement which is invested in U.S. Treasury Notes.
Interest Rate Risk
The Town, including the primary government and Nantucket County and Nantucket Islands Land Bank
component units, limits investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates. The policy limits investments of operating funds to one year or less and limits
investment maturities of trust funds and other special funds to periods not longer than seven years, maintaining
an average maturity no greater than three years for the investment portfolio.
Credit Risk
The Town, including the primary government and Nantucket County component unit adopted a formal policy
related to Credit Risk during fiscal year 2012. The policy restricts the investment of operating funds to U.S.
Treasury or Agency securities which carry “AAA” ratings. Trust and other special funds which are longer-term
investments may invest in fixed income securities which are held principally for capital preservation and income
potential, corporate debt that carries a rating of “A” or better by either Standard and Poor’s or Moody’s rating
services. If a security falls below the “A” rating, the security will be monitored by the Treasurer and advisor and
will be noted as an exception to the policy if held in the investment portfolio. The Treasurer will sell the securities
if a decline in value is expected. Of the Town’s investments at June 30, 2012 in debt securities, $5,545,663 are
rated AAA and $927 is unrated. Investments in U.S. Treasury notes are not considered to have credit risk.
Concentration of Credit Risk
The Town, including the primary government and Nantucket County and Nantucket Islands Land Bank
component units, places no limit on the amount the government may invest in any one issuer.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 43 Basic Financial Statements
Primary Government
Greater than 5 percent of the primary government’s investments are in the following securities:
Percentage of
Issuer
Federal Home Loan Mortgage Corporation............................ 15%
Federal National Mortgage Association.................................. 12%
Total Investments
NOTE 3 – RECEIVABLES
At June 30, 2012, receivables for the individual major, nonmajor governmental funds and internal service funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes……$ 3,841,429 $ (368,606) $ 3,472,823
Tax liens ……………………….……………… 2,538,594 - 2,538,594
Motor vehicle and other excise taxes……… 789,352 (615,342) 174,010
User fees……………………………………… 4,555 - 4,555
Departmental and other……………………… 267,703 (134,124) 133,579
Special assessments………………………… 25,171 - 25,171
Intergovernmental…………………………… 2,182,676 - 2,182,676
Total……………………………………………$ 9,649,480 $ (1,118,072) $ 8,531,408
At June 30, 2012, receivables for the enterprise funds consist of the following:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Water fees………………………………………$ 747,137 $ - $ 747,137
Sewer fees……………………………………… 961,106 - 961,106
Solid waste fees……………………………… 527,046 (131,507) 395,539
Airport fees…………………………………… 1,002,339 - 1,002,339
Our Island Home fees………………………… 962,852 (197,086) 765,766
Intergovernmental…………………………… 2,640,025 - 2,640,025
Total………………………………………………$ 6,840,505 $ (328,593) $ 6,511,912
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 44 Basic Financial Statements
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. At the end of the current fiscal year, the various
components of deferred revenue reported in the governmental funds were as follows:
Nonmajor
General Governmental
Fund Funds Total
Receivable:
Real estate and personal property taxes……$ 1,963,966 $ 101,787 $ 2,065,753
Tax liens………………….…………………… 2,499,570 39,024 2,538,594
Motor vehicle and other excise taxes……… 174,010 - 174,010
User fees………………………………………4,555 - 4,555
Departmental and other……………………… 953 132,626 133,579
Special assessments………………………… - 25,171 25,171
Intergovernmental…………………………… - 33,840 33,840
Total……………………………………………$ 4,643,054 $ 332,448 $ 4,975,502
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the primary government for the fiscal year ended June 30, 2012, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land………………………………………………………… $ 169,985,564 $ - $ - $ 169,985,564
Construction in progress…………………………………… 27,719,432 2,943,703 (22,036,687) 8,626,448
Total capital assets not being depreciated………… 197,704,996 2,943,703 (22,036,687) 178,612,012
Capital assets being depreciated:
Vehicles……………………………………………………… 8,821,004 853,785 (1,116,858) 8,557,931
Buildings……………………………………………………… 34,427,862 20,656,442 - 55,084,304
Machinery and equipment………………………………… 8,586,030 1,056,550 (1,972,612) 7,669,968
Infrastructure………………………………………………… 27,030,978 1,573,364 - 28,604,342
Total capital assets being depreciated……………… 78,865,874 24,140,141 (3,089,470) 99,916,545
Less accumulated depreciation for:
Vehicles……………………………………………………… (6,634,029) (673,322) 1,116,858 (6,190,493)
Buildings.…………………………………………………… (16,850,666) (1,107,707) - (17,958,373)
Machinery and equipment………………………………… (7,337,802) (429,890) 1,972,612 (5,795,080)
Infrastructure.………………………………………………… (18,207,903) (853,561) - (19,061,464)
Total accumulated depreciation……………………… (49,030,400) (3,064,480) 3,089,470 (49,005,410)
Total capital assets being depreciated, net…………………… 29,835,474 21,075,661 - 50,911,135
Total governmental activities capital assets, net………………$ 227,540,470 $ 24,019,364 $ (22,036,687) $ 229,523,147
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 45 Basic Financial Statements
The capital asset totals for the business-type activities at June 30, 2012 were as follows:
Beginning Ending
Balance Increases Decreases Balance
Business-type activities
Capital assets not being depreciated:
Land………………………………………………………… $ 17,142,428 $ - $ - $ 17,142,428
Construction in progress…………………………………… 35,443,031 7,073,961 (24,125,495) 18,391,497
Total capital assets not being depreciated………… 52,585,459 7,073,961 (24,125,495) 35,533,925
Capital assets being depreciated:
Land improvements………………………………………… 25,731,512 - - 25,731,512
Plant………………………………………………………… 61,730,450 - - 61,730,450
Infrastructure………………………………………………… 39,800,871 18,152,200 (40,000) 57,913,071
Buildings……………………………………………………… 53,351,963 7,164,461 - 60,516,424
Vehicles……………………………………………………… 4,808,630 90,262 (45,769) 4,853,123
Machinery and equipment………………………………… 18,674,345 84,340 - 18,758,685
Furniture, fixtures and computer equipment……………… 611,534 - - 611,534
Total capital assets being depreciated……………… 204,709,305 25,491,263 (85,769) 230,114,799
Less accumulated depreciation………………………………… (60,302,209) (5,914,835) 85,769 (66,131,275)
Total capital assets being depreciated, net…………………… 144,407,096 19,576,428 - 163,983,524
Total business-type activities, capital assets…………………$ 196,992,555 $ 26,650,389 $ (24,125,495) $ 199,517,449
The overstatement of capital assets of $446,498, in the Sewer Enterprise Fund as of June 30, 2011, was
discovered by management during the current year. Accordingly, an adjustment has been made in this report to
restate the Net Assets of the Sewer Enterprise Fund as of June 30, 2011 from $46,250,922 to $45,804,427.
Capital asset activity for the Nantucket County and Nantucket Islands Land Bank component units for the fiscal
year ended June 30, 2012 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Nantucket Islands Land Bank Component Unit
Capital assets not being depreciated:
Land………………………………………………………… $ 227,565,497 $ 12,858,943 $ - $ 240,424,440
Capital assets being depreciated:
Buildings, improvements and equipment………………… 22,156,475 1,034,045 (50,900) 23,139,620
Less accumulated depreciation…………………………… (5,667,698) (972,899) 1,909 (6,638,688)
Total capital assets being depreciated, net…………………… 16,488,777 61,146 (48,991) 16,500,932
Total Nantucket Islands Land Bank Component Unit,
capital assets…………………………………………………$ 244,054,274 $ 12,920,089 $ (48,991) $ 256,925,372
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 46 Basic Financial Statements
Beginning Ending
Balance Increases Decreases Balance
Nantucket County Component Unit
Capital assets not being depreciated:
Land………………………………………………………… $ 28,458 $ - $ - $ 28,458
Capital assets being depreciated:
Equipment…………………………………………………… 371,950 73,458 - 445,408
Total capital assets being depreciated……………… 371,950 73,458 - 445,408
Less accumulated depreciation for:
Equipment…………………………………………………… (328,651) (49,803) - (378,454)
Total accumulated depreciation……………………… (328,651) (49,803) - (378,454)
Total capital assets being depreciated, net…………………… 43,299 23,655 - 66,954
Total County Component Unit capital assets…………………$ 71,757 $ 23,655 $ - $ 95,412
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:
General government…………………………………………………………………$ 98,982
Public safety………………………………………………………………………… 1,024,188
Education…………………………………………………………………………… 839,485
Public works………………………………………………………………………… 990,792
Human services……………………………………………………………………… 8,384
Culture and recreation……………………………………………………………… 102,649
Total depreciation expense - governmental activities……………………………… $ 3,064,480
Business-Type Activities:
Water………………………………………………..…………………………………$ 937,217
Sewer……………………………………….………………………………………… 2,036,045
Solid waste……………………………………….…………………………………… 493,906
Airport……………………………………….………………………………………… 2,403,673
Our Island Home……………………………………….…………………………… 43,994
Total depreciation expense - business-type activities……………………………… $ 5,914,835
Nantucket County Component Unit:
Registry of Deeds……………………………………………………………………$ 49,803
Nantucket Islands Land Bank Component Unit:
Land Bank……………………………………………………………………………$ 972,899
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 47 Basic Financial Statements
NOTE 5 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables at June 30, 2012 are summarized as follows:
Siasconset Sewer Nantucket
General Water Enterprise Memorial Internal
Fund Company Fund Airport Service Total
General Fund……………………………… $ - $ - $ - $ 1,332 $ 76,984 $ 78,316
Nonmajor Governmental Funds………… 555,126 - - 17,443 - 572,569
Wannacomet Water Company…………… - 78,021 461,644 - - 539,665
Total……………………………………$ 555,126 $ 78,021 $ 461,644 $ 18,775 $ 76,984 $ 1,190,550
Due To:
Due From:
Interfund receivables and payables represent timing differences between financial transactions and the
corresponding transfer of cash between accounts.
Interfund transfers for the fiscal year ended June 30, 2012, are summarized as follows:
Nonmajor Nantucket Our Solid Waste Internal
General Capital Governmental Memorial Island Enterprise Service
Fund Projects Funds Airport Home Fund Fund Total
General Fund…………………………$- $ 175,108 $ 341,070 $ 2,792,264 $ 2,781,920 $ 4,991,085 $ 197,000 $ 11,278,447 (1)
Capital Projects……………….……… - 125,000 - 54,206 - - - 179,206 (2)
Nonmajor Governmental Funds…… 106,831 - - 400,000 445,122 - - 951,953 (3)
Wannacomet Water Company……… - 260,966 - - - - - 260,966 (4)
Total……………………………………$ 106,831 $ 561,074 $ 341,070 $ 3,246,470 $ 3,227,042 $ 4,991,085 $ 197,000 $ 12,670,572
Transfers In:
Transfers Out:
(1) Appropriations from the General Fund to fund prior year deficits in other funds, annual funding to the
Community School and General Fund subsidies to Enterprise Funds.
(2) Transfers within the Town’s various Capital Projects Funds and to Airport capital projects.
(3) Transfers to the General Fund from the 3C grant fund, and the Parks and Recreation Revolving Funds to
reimburse for indirect costs and to fund appropriations. Also, transfers from revolving funds to the Airport and Our
Island Home enterprise funds.
(4) Transfer to the Capital Project Fund from Wannacomet Water Company to fund prior year a deficit.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 48 Basic Financial Statements
NOTE 6 – SHORT-TERM FINANCING
Short-term debt may be authorized and issued to fund the following:
Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation
notes (RANS or TANS).
Capital project costs and other approved expenditures incurred prior to obtaining permanent financing
through issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS).
Short-term loans are general obligations and carry maturity dates that are limited by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the general fund and enterprise funds,
respectively. Details related to the short-term debt activity for the fiscal year ended June 30, 2012, are as follows:
Balance at Balance at
Rate June 30, Renewed/ Retired/ June 30,
Type Purpose (%) Due Date 2011 Issued Redeemed 2012
Governmental Funds
BAN MWPAT Title V Loan……………………… 0.00 N/A $ - $ 1,000,000 $ - $ 1,000,000
Enterprise Funds
BAN Bond Anticipation Note…………………… 1.25 02/24/12 2,600,000 - 2,600,000 -
BAN Bond Anticipation Note…………………… 1.50 02/24/12 3,550,000 - 3,550,000 -
BAN Bond Anticipation Note…………………… 1.00 06/08/12 - 6,089,000 6,089,000 -
BAN Bond Anticipation Note…………………… 1.25 06/07/13 - 8,968,090 - 8,968,090
BAN Bond Anticipation Note…………………… 1.50 02/24/12 150,000 - 150,000 -
BAN Bond Anticipation Note…………………… 1.50 02/24/12 2,050,000 - 2,050,000 -
BAN Bond Anticipation Note…………………… 1.00 06/08/12 - 2,050,000 2,050,000 -
Total Enterprise Fund………………………………………………… 8,350,000 17,107,090 16,489,000 8,968,090
Total……………………………………………………………………$ 8,350,000 $ 18,107,090 $ 16,489,000 $ 9,968,090
The Town entered into a $1,000,000 zero percent interim loan agreement with the Massachusetts Water Pollution
Abatement Trust (MWPAT). Proceeds of the interim loan are to be used to fund a community septic management
program. The Town has recorded the interim loan as short-term debt until the loan is permanently funded by the
MWPAT.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 49 Basic Financial Statements
NOTE 7 – LONG-TERM DEBT
Under the provisions of Chapter 44, Section 10, Municipal Law authorizes indebtedness up to a limit of 5% of the
equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the
debt limit". In addition, however, debt may be authorized in excess of that limit for specific purposes. Such debt,
when issued, is designated as being "outside the debt limit". Details related to the outstanding indebtedness at
June 30, 2012, and the debt service requirements are as follows:
Bonds and Notes Payable Schedule – Governmental Funds
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Issue Through Amount (%) 2011 Issued Redeemed 2012
Municipal Purpose Refunding Bonds of 1997…………… 2011 $ 10,896,166 4.75 - 6.00 $ 1,385,000 $ - $ 1,385,000 $ -
Municipal Purpose Bonds 2001…………………………… 2018 330,000 4.00 - 4.90 130,000 - 130,000 -
MWPAT Bonds 2001……………………………………… 2019 20,893 - 10,424 - 1,170 9,254
Municipal Purpose Bonds 2003…………………………… 2023 2,945,000 2.25 - 5.00 1,825,000 - 1,510,000 315,000
Municipal Purpose Bonds 2004…………………………… 2024 17,498,000 2.50 - 4.25 13,020,000 - 835,000 12,185,000
Municipal Purpose Bonds 2005…………………………… 2025 19,764,000 3.75 - 5.00 14,395,000 - 1,775,000 12,620,000
Municipal Purpose Bonds 2008…………………………… 2028 11,453,613 3.00 - 5.00 7,465,600 - 1,226,800 6,238,800
MWPAT Bonds 2008……………………………………… 2038 44,635,228 2.14 12,965,549 - 344,730 12,620,819
Municipal Purpose Bonds 2009…………………………… 2048 1,380,000 4.125 1,311,000 - 34,500 1,276,500
MWPAT Bonds 2009……………………………………… 2028 5,340,420 2.00 4,154,898 - 200,655 3,954,243
Municipal Purpose Bonds 2010…………………………… 2030 13,070,000 2.50 - 4.00 12,395,000 675,000 11,720,000
Municipal Purpose Bonds 2012…………………………… 2026 3,200,000 2.00 - 5.00 - 3,200,000 - 3,200,000
Municipal Purpose Refunding Bonds of 2012…………… 2018 1,329,900 2.00 - 4.90 - 1,329,900 - 1,329,900
Total Governmental Bonds Payable……………………………………………………………………………… 69,057,471 4,529,900 8,117,855 65,469,516
Unamortized Premiums on Bonds and Notes…………………………………………………………………… 121,368 - 31,577 89,791
Total……………………………………………………………………………………………………………………$ 69,178,839 $ 4,529,900 $ 8,149,432 $ 65,559,307
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 50 Basic Financial Statements
Debt service requirements for principal and interest for Governmental bonds payable in future fiscal years are as
follows:
Fiscal Year Principal Interest Total
2013………………$ 5,496,334 $ 2,201,215 $ 7,697,549
2014……………… 5,358,098 2,020,141 7,378,239
2015……………… 5,430,460 1,821,312 7,251,772
2016……………… 5,429,097 1,624,025 7,053,122
2017……………… 5,523,166 1,416,307 6,939,473
2018……………… 5,052,149 1,214,477 6,266,626
2019……………… 3,121,457 1,063,060 4,184,517
2020……………… 3,101,093 951,659 4,052,752
2021……………… 3,089,920 845,769 3,935,689
2022……………… 3,070,241 731,925 3,802,166
2023……………… 3,015,915 624,864 3,640,779
2024……………… 2,921,951 512,151 3,434,102
2025……………… 1,893,358 429,571 2,322,929
2026……………… 1,880,144 366,025 2,246,169
2027……………… 1,788,545 306,697 2,095,242
2028……………… 1,520,131 255,388 1,775,519
2029……………… 1,450,303 206,702 1,657,005
2030……………… 916,852 163,669 1,080,521
2031……………… 579,860 135,237 715,097
2032……………… 593,185 120,489 713,674
2033……………… 606,837 105,414 712,251
2034……………… 620,822 90,006 710,828
2035……………… 635,148 74,257 709,405
2036……………… 649,825 58,157 707,982
2037……………… 664,861 41,698 706,559
2038……………… 680,264 24,872 705,136
2039……………… 34,500 15,654 50,154
2040……………… 34,500 14,231 48,731
2041……………… 34,500 12,808 47,308
2042……………… 34,500 11,385 45,885
2043……………… 34,500 9,962 44,462
2044……………… 34,500 8,539 43,039
2045……………… 34,500 7,116 41,616
2046……………… 34,500 5,693 40,193
2047……………… 34,500 4,269 38,769
2048……………… 34,500 2,846 37,346
2049……………… 34,500 1,423 35,923
Total………………$ 65,469,516 $ 17,499,013 $ 82,968,529
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 51 Basic Financial Statements
Bonds Payable Schedule – Enterprise
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Project Through Amount (%) 2011 Issued Redeemed 2012
Municipal Purpose Bonds 2001…………………………… 2021 $ 850,000 4.00 - 5.00 $ 450,000 $ - $ 450,000 $ -
MWPAT Bonds 2004……………………………………… 2023 2,107,708 Various 1,420,858 - 102,052 1,318,806
Municipal Purpose Bonds 2004…………………………… 2023 1,216,000 2.25 - 5.00 780,000 - 660,000 120,000
MWPAT Bonds 2005……………………………………… 2024 11,587,521 4.50 - 5.25 4,839,965 - 370,289 4,469,676
MWPAT Bonds 2007……………………………………… 2026 53,642,118 Various 28,609,377 - 821,958 27,787,419
Municipal Purpose Bonds 2008…………………………… 2028 3,268,088 3.00 - 5.00 2,474,400 - 218,200 2,256,200
MWPAT Bonds 2009……………………………………… 2026 3,125,318 2.00 2,830,978 - 151,644 2,679,334
Municipal Purpose Bonds 2011…………………………… 2014 120,000 2.50 - 3.00 90,000 - 30,000 60,000
MWPAT Bonds 2011……………………………………… 2031 4,006,000 2.00 4,006,000 - 164,542 3,841,458
Municipal Purpose Bonds 2012…………………………… 2032 2,750,000 2.00 - 5.00 - 2,750,000 - 2,750,000
Municipal Purpose Refunding Bonds of 2012…………… 2021 916,100 2.00 - 5.00 - 916,100 - 916,100
Total Sewer Enterprise Bonds Payable………………………………………….………………………………… 45,501,578 3,666,100 2,968,685 46,198,993
Municipal Purpose Bonds 2004…………………………… 2013 390,000 2.25 - 5.00 110,000 - 40,000 70,000
Municipal Purpose Bonds 2005…………………………… 2013 1,751,000 2.50 - 4.00 580,000 - 195,000 385,000
Municipal Purpose Bonds 2006…………………………… 2015 219,000 3.75 - 5.00 100,000 - 20,000 80,000
Municipal Purpose Bonds 2008…………………………… 2017 1,522,312 3.00 - 5.00 650,000 - 275,000 375,000
Municipal Purpose Bonds 2011…………………………… 2036 5,000,000 2.00 - 5.00 5,000,000 - 140,000 4,860,000
Municipal Purpose Bonds 2012…………………………… 2032 2,759,000 2.00 - 5.00 - 2,759,000 - 2,759,000
Total Airport Enterprise Bonds Payable…………………………………………………………………………… 6,440,000 2,759,000 670,000 8,529,000
Municipal Purpose Bonds 2001…………………………… 2021 1,168,000 4.00 - 5.00 565,000 - 565,000 -
Municipal Purpose Bonds 2005…………………………… 2024 4,000,000 2.50 - 4.13 2,800,000 - 200,000 2,600,000
Municipal Purpose Bonds 2006…………………………… 2025 5,150,000 3.75 - 5.00 4,040,000 - 250,000 3,790,000
Municipal Purpose Bonds 2008…………………………… 2030 9,400,000 3.00 - 5.00 7,975,000 - 475,000 7,500,000
Municipal Purpose Bonds 2009…………………………… 2029 2,815,000 3.00 - 5.00 2,600,000 - 110,000 2,490,000
Municipal Purpose Bonds 2010…………………………… 2030 1,800,000 2.50 - 4.00 1,660,000 - 140,000 1,520,000
Municipal Purpose Bonds 2012…………………………… 2032 4,450,000 2.00 - 5.00 - 4,450,000 - 4,450,000
Municipal Purpose Refunding Bonds of 2012…………… 2021 460,000 2.00 - 5.00 - 460,000 - 460,000
Total Wannacomet Water Enterprise Bonds Payable…………………………………………………………… 19,640,000 4,910,000 1,740,000 22,810,000
Municipal Purpose Bonds 2006…………………………… 2015 2,000,000 3.75 - 5.00 1,105,000 - 205,000 900,000
Municipal Purpose Bonds 2009…………………………… 2029 6,373,000 3.00 - 5.00 5,890,000 - 250,000 5,640,000
Municipal Purpose Bonds 2010…………………………… 2030 1,400,000 2.50 - 4.00 1,330,000 - 70,000 1,260,000
Municipal Purpose Bonds 2012…………………………… 2016 150,000 2.00 - 3.00 - 150,000 - 150,000
Total Siasconset Water Enterprise Bonds Payable……………………………………………………………… 8,325,000 150,000 525,000 7,950,000
Municipal Purpose Bonds 2005…………………………… 2024 100,000 2.50 - 4.13 70,000 - 5,000 65,000
Municipal Purpose Bonds 2008…………………………… 2028 1,000,000 3.00 - 5.00 685,000 - 105,000 580,000
Total Solid Waste Enterprise Bonds Payable…………………………………………………………………… 755,000 - 110,000 645,000
Total Enterprise Bonds Payable…………………………………………………………………………………… 80,661,578 11,485,100 6,013,685 86,132,993
Unamortized Premiums on Bonds and Notes…………………………………………………………………… 321,817 1,076,663 17,878 1,380,602
Total……………………………………………………………………………………………………………………$ 80,983,395 $ 12,561,763 $ 6,031,563 $ 87,513,595
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 52 Basic Financial Statements
Debt service requirements for principal and interest for enterprise fund bonds payable in future fiscal years are as
follows:
Fiscal Year Principal Interest Total
2013………………$ 5,067,015 $ 2,943,557 $ 8,010,572
2014……………… 5,019,019 2,771,174 7,790,193
2015……………… 4,840,525 2,590,021 7,430,546
2016……………… 4,905,733 2,420,246 7,325,979
2017……………… 4,593,417 2,251,044 6,844,461
2018……………… 4,401,131 2,090,809 6,491,940
2019……………… 4,463,779 1,935,622 6,399,401
2020……………… 4,455,068 1,754,738 6,209,806
2021……………… 4,574,484 1,591,540 6,166,024
2022……………… 4,341,162 1,427,844 5,769,006
2023……………… 4,411,001 1,261,742 5,672,743
2024……………… 4,365,691 1,096,568 5,462,259
2025……………… 4,269,792 934,679 5,204,471
2026……………… 3,609,826 793,850 4,403,676
2027……………… 3,306,204 678,105 3,984,309
2028……………… 3,129,477 571,601 3,701,078
2029……………… 2,604,916 464,587 3,069,503
2030……………… 1,999,234 361,926 2,361,160
2031……………… 1,914,250 304,535 2,218,785
2032……………… 1,704,507 252,860 1,957,367
2033……………… 1,361,007 208,846 1,569,853
2034……………… 1,398,154 169,823 1,567,977
2035……………… 1,440,964 129,663 1,570,627
2036……………… 1,479,455 88,111 1,567,566
2037……………… 1,223,641 45,030 1,268,671
2038……………… 1,253,541 15,130 1,268,671
Total………………$ 86,132,993 $ 29,153,651 $ 115,286,644
In order to take advantage of favorable interest rates, the Town issued $2,706,000 of General Obligation
Refunding Bonds on June 7, 2012. The Town advanced refunded $2,970,000 of general obligation bonds by
placing the proceeds of the refunding bonds and additional Town funds in an irrevocable trust to provide for all
future debt service payments on the refunded bonds. As a result, the refunded bonds are considered to be
defeased and the liability has been removed from the statement of net assets. The reacquisition price exceeded
the net carrying amount of the old debt by $130,076. This advance refunding was undertaken to reduce total debt
service payments over the next 12 years by $342,475 and resulted in an economic gain of $303,421. At June 30,
2012, $2,970,000 of bonds outstanding from the advance refunding are considered defeased.
The Town is scheduled to be subsidized by the Massachusetts Water Pollution Abatement Trust (MWPAT) on a
periodic basis for principal in the amount of $2,017,186 and interest costs of $2,132,318, relating to certain
MWPAT bonds outstanding in the sewer enterprise fund. Thus, net principal debt repayments in the sewer
enterprise fund are scheduled to be $41,520,707. The principal subsidies are guaranteed and therefore a
$2,017,186 intergovernmental receivable has been reported in the sewer enterprise fund. Since the Town is
legally obligated for the total amount of the debt, such amounts have been reported in the accompanying basic
financial statements. The fiscal year 2012 principal and interest subsidies totaled approximately $124,854 and
$346,240, respectively.
For MWPAT loans issued for projects first appearing on Department of Environmental Protection’s Intended Use
Plan in 2002 and forward, the net debt service is structured to result in the financial equivalent of a loan with an
annual interest rate of 2%.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 53 Basic Financial Statements
Bonds and Notes Payable Schedule – Land Bank Component Unit
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Project Through Amount (%) 2011 Issued Redeemed 2012
Land Bank Bonds and Notes Payable………………… 2016 N/A 6.06% $ 6,650,000 $ 1,845,343 $ (4,200,000) $ 4,295,343
Land Bank Bonds and Notes Payable………………… 2032 N/A 4.00 - 5.50 24,989,835 6,725,000 (1,392,312) 30,322,523
Total Land Bank Component Unit Bonds Payable……………….………………………………………………$ 31,639,835 $ 8,570,343 $ (5,592,312) $ 34,617,866
Debt service requirements for principal and interest for Land Bank bonds and notes payable in future fiscal years
are as follows:
Fiscal Year Principal Interest Total
2013………………$ 4,785,829 $ 1,141,559 $ 5,927,388
2014……………… 2,400,315 954,701 3,355,016
2015……………… 2,475,279 878,251 3,353,530
2016……………… 2,570,736 796,349 3,367,085
2017……………… 2,151,704 711,504 2,863,208
2018-2022……… 10,048,520 2,491,090 12,539,610
2023-2027……… 7,023,520 1,109,312 8,132,832
2028-2032……… 3,161,963 177,031 3,338,994
Total………………$ 34,617,866 $ 8,259,797 $ 42,877,663
Bonds payable is comprised of the 2007 Series A Bonds dated December 1, 2007 and bearing interest at rates
ranging from 4% to 5.5% and mature serially from December 1, 2008 through December 1, 2027. The 2009
Series A Bonds dated March 13, 2009 bear interest at a rate of 2.95% and mature serially from June 30, 2009
through June 30, 2023. During the current fiscal year, the Land Bank issued 2012 Series A Bonds, in the
aggregate principle amount of $6,725,000, bearing interest at rates ranging from 2% to 3% and maturing serially
from February 15, 2013 to February 15, 2032. The bonds are secured by a second priority security interest in the
Land Bank’s present and future transfer fees and unrestricted revenue. The bonds are additionally secured by a
guarantee of the Town. Proceeds from the 2012 Series A Bonds were used to purchase the Siasconset Golf
Course.
The Town is subject to various debt limits by statute and may issue additional general obligation debt under the
normal debt limit.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 54 Basic Financial Statements
At June 30, 2012, the Town had the following authorized and unissued debt:
Governmental Activities
Purpose Amount
Bike paths……………………………………………………$ 599,250
Title V Septic……………………………………………… 2,000,000
Total General Government………………………………$2,599,250
Business-Type Activities
Purpose Amount
Landfill…………………………………………………..……$ 2,308,948
Sewer……………………………………………………… 11,831,872
Our Island Home……………………………………………175,000
Nantucket Memorial Airport………………………………30,032,100
Siasconsset Water Company…………………………… 2,100,000
Wannacomet Water Company……………………………1,100,000
Total Enterprise……………….……………………………$47,547,920
Land Bank Component Unit
Purpose Amount
Land Bank …………………………………………………$1,171,692
Total…………………………………………………………$ 51,318,862
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 55 Basic Financial Statements
Changes in Long-term Liabilities
During the fiscal year ended June 30, 2012, the following changes occurred in long-term liabilities:
Balance at Balance at
June 30, June 30, Current
2011 Additions Reductions 2012 Portion
GOVERNMENTAL ACTIVITIES:
Long-Term Bonds………………………………$ 69,057,471 $ 4,529,900 $ (8,117,855) $ 65,469,516 $ 5,496,334
Compensated Absences……………………… 1,293,382 148,656 (258,676) 1,183,362 236,672
Workers' Compensation……………………… 249,374 89,510 (249,374) 89,510 89,510
Other Postemployment Benefits……………… 16,410,405 5,005,600 (2,027,205) 19,388,800 -
Total Governmental Funds……………………$ 87,010,632 $ 9,773,666 $ (10,653,110) $ 86,131,188 $ 5,822,516
BUSINESS-TYPE ACTIVITIES:
Long-Term Bonds and Notes…………………$ 80,661,578 $ 11,485,100 $ (6,013,685) $ 86,132,993 $ 5,067,015
Compensated Absences……………………… 816,784 222,341 (444,682) 594,443 118,888
Other Postemployment Benefits……………… 3,959,010 1,207,600 (489,062) 4,677,548 -
Landfill Closure………………………………… 3,064,000 965,000 - 4,029,000 -
Total Business-type Funds……………………$ 88,501,372 $ 13,880,041 $ (6,947,429) $ 95,433,984 $ 5,185,903
LAND BANK COMPONENT UNIT:
Long-Term Bonds and Notes…………………$ 31,639,835 $ 8,570,343 $ (5,592,312) $ 34,617,866 $ 4,764,125
Other Postemployment Benefits……………… 348,900 - - 348,900 -
Total Land Bank Component Unit…………… 31,988,735 8,570,343 (5,592,312) 34,966,766 4,764,125
COUNTY COMPONENT UNIT:
Other Postemployment Benefits……………… 143,591 52,122 (26,061) 169,652 -
Total Component Units…………………………$ 32,132,326 $ 8,622,465 $ (5,618,373) $ 35,136,418 $ 4,764,125
Total………………………………………………$ 207,644,330 $ 32,276,172 $ (23,218,912) $ 216,701,590 $ 15,772,544
Long-term liabilities of the governmental activities, business-type activities, and Land Bank and County
component units are generally liquidated by the general fund, the business-type activities, and the Land Bank and
County component units, respectively.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 56 Basic Financial Statements
NOTE 8 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
Governmental accounting standards establish a hierarchy for fund balance classifications and the constraints
imposed on the uses of those resources. The reporting standards establish a hierarchy for fund balance
classifications and the constraints imposed on the uses of those resources. The Town reports two major types of
fund balances, which are nonspendable and spendable. Nonspendable fund balances are balances that cannot
be spent because they are not expected to be converted to cash or they are legally or contractually required to
remain intact. Examples of this classification are prepaid items, inventories, and principal (corpus) of an
endowment fund.
In addition to the nonspendable fund balance, the Town reports spendable fund balances based on a hierarchy of
spending constraints.
Restricted: fund balances that are constrained by external parties, constitutional provisions, or enabling
legislation.
Committed: fund balances that contain self-imposed constraints of the government from its highest level
of decision making authority.
Assigned: fund balances that contain self-imposed constraints of the government to be used for a
particular purpose.
Unassigned: fund balance of the general fund that is not constrained for any particular purpose.
Massachusetts General Law Ch.40 §5B allows for the establishment of Stabilization funds for one or more
different purposes. The creation of a fund requires a two-thirds vote of Town Meeting and must clearly define the
purpose of the fund. Any change to the purpose of the fund along with any additions to or appropriations from the
fund requires a two-thirds vote of Town Meeting. At year end the balance of the General Stabilization Fund is
approximately $3.8 million and is reported as unassigned fund balance within the General Fund.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 57 Basic Financial Statements
As of June 30, 2012, the governmental fund balances consisted of the following:
Town Nonmajor Total
Capital Governmental Governmental
General Projects Funds Funds
FUND BALANCES
Nonspendable:
Permanent fund principal……………………..$- $ - $ 44,305 $ 44,305
Restricted for:
Town capital projects…………...……………… - 5,355,578 - 5,355,578
Community preservation……………………… - - 5,915,827 5,915,827
Town revolving funds…………………………… - - 4,688,461 4,688,461
Federal and state grants……………………… - - 538,807 538,807
Education revolving funds…………….……… - - 736,639 736,639
Trust funds……….……………………………… - - 39,704 39,704
Federal and state education grants…………. - - 762,327 762,327
School lunch……………………..……………… - - 229,793 229,793
Gift funds………………………...……………… - - 1,086,191 1,086,191
School revolving funds………………………… - - 283,760 283,760
Road improvements…………………………… - - 647,836 647,836
Expendable permanent funds………………… - - 27,779 27,779
Committed to:
General government…………………………… 1,404,655 - - 1,404,655
Public safety…………………………………… 930 - - 930
Education………………………………………… 359,597 - - 359,597
Public works…………………………………… 176,461 - - 176,461
Human services………………………………… 95 - - 95
Assigned to:
General government…………………………… 814,424 - - 814,424
Public safety…………………………………… 191,695 - - 191,695
Education………………………………………… 217,271 - - 217,271
Public works…………………………………… 315,622 - - 315,622
Human services………………………………… 1,005 - - 1,005
Culture and recreation………………………… 444 - - 444
Employee benefits……………………………… 34,598 - - 34,598
Free cash for FY2013 budget………………… 607,264 - - 607,264
Unassigned……………………………………….. 14,373,770 - (104,106) 14,269,664
TOTAL FUND BALANCES (DEFICIT)………………$ 18,497,831 $ 5,355,578 $ 14,897,323 $ 38,750,732
GOVERNMENTAL FUNDS
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 58 Basic Financial Statements
As of June 30, 2012, the county fund balances consisted of the following:
Nonmajor Total
Governmental Governmental
General Funds Funds
FUND BALANCES
Restricted for:
Deeds excise……………………………………$- $ 1,049,015 $ 1,049,015
Other special revenue funds………………… - 598,727 598,727
Unassigned……………………………………….. 1,369,777 - 1,369,777
TOTAL FUND BALANCES……………………………$ 1,369,777 $ 1,647,742 $ 3,017,519
GOVERNMENTAL FUNDS
NOTE 9 – RISK FINANCING
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; and natural disasters for which the Town carries commercial insurance. The amount of claim
settlements has not exceeded insurance coverage in any of the previous three fiscal years.
The Town is self-insured for its health insurance and workers’ compensation activities. These activities are
accounted for in the internal service fund where revenues are recorded when earned and expenses are recorded
when the liability is incurred.
(a) Health Insurance
The estimate of Incurred But Not Reported (IBNR) claims is based on historical trends. At June 30, 2012,
the amount of the liability for health insurance claims totaled $778,820. This liability is the best estimate
based on available information. Changes in the reported liability since July 1, 2009, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal
Fiscal Year Estimate Payments Year-End
Fiscal Year 2010…………$ 721,784 $ 11,111,752 $ (11,050,453) $ 783,083
Fiscal Year 2011………… 783,083 10,816,282 (10,869,510) 729,855
Fiscal Year 2012………… 729,855 11,207,253 (11,158,288) 778,820
(b) Workers’ Compensation
Workers’ compensation claims are administered by a third party administrator and are funded on a pay-
as-you-go basis from a special revenue fund for workers compensation. Annual appropriations are made
to add to the fund. The estimated future workers’ compensation liability is based on history and injury
type.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 59 Basic Financial Statements
At June 30, 2012, the amount of the liability for workers’ compensation claims totaled $89,510. This
liability is the Town’s best estimate based on available information. Changes in the reported liability since
July 1, 2009, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal
Fiscal Year Estimate Payments Year-End
Fiscal Year 2010…………$ 93,146 $ 228,930 $ (145,426) $ 176,650
Fiscal Year 2011………… 176,650 219,799 (147,075) 249,374
Fiscal Year 2012………… 249,374 102,269 (262,133) 89,510
NOTE 10 – PENSION PLAN
Plan Description - The Town and the County contribute to the Barnstable County Retirement Association (the
System), a cost-sharing multiple-employer defined benefit pension plan administered by the Barnstable County
Retirement Board. Substantially all employees of both the Town and County are members of the System, except
for public school teachers and certain administrators who are members of the Massachusetts Teachers
Retirement System, to which the Town does not contribute. Pension benefits and administrative expenses paid
by the Teachers Retirement Board are the legal responsibility of the Commonwealth. The amount of these on-
behalf payments totaled approximately $2,357,000 for the fiscal year ended June 30, 2012, and, accordingly, are
reported in the general fund as intergovernmental revenues and pension expenditures.
The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of
the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments
granted between 1981 and 1997 and any increases in other benefits imposed by the Commonwealth’s state law
during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living
adjustments granted after 1997 must be approved by the Barnstable County Retirement Board and are borne by
the System. The System issues a publicly available, unaudited, financial report in accordance with guidelines
established by the Commonwealth of Massachusetts’ Public Employee Retirement Administration Commission
(PERAC). That report may be obtained by contacting the System located at 99 Willow Street, Yarmouthport,
Massachusetts, 02675.
Funding Policy - Plan members are required to contribute to the System at rates ranging from 5% to 11% of
annual covered compensation. The Town and County are required to pay into the System their share of the
system-wide actuarially determined contribution that is apportioned among the employers based on active current
payroll. Administrative expenses are funded through investment earnings. Chapter 32 of the MGL governs the
contributions of plan members and the Town. The Town’s contributions to the System for the fiscal year ended
June 30, 2012, 2011 and 2010 totaled $4,372,452, $4,263,340 and $3,925,224 respectively, which equaled its
required contributions for each fiscal year. The County’s contribution to the System for the fiscal years ended
June 30, 2012, 2011 and 2010 were $126,269, $110,888, and $152,865 respectively, which equaled its required
contributions for each fiscal year.
The schedule of funding progress, presented as required supplementary information, following the notes to the
basic financial statements, presents multiyear trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Additionally, the
schedule of employer contributions, presented as required supplementary information, following the notes to the
basic financial statements, presents multiyear trend information for required and actual contributions relating to
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 60 Basic Financial Statements
the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town’s
proportionate share of the plan’s annual contributions. This information is designed to be helpful for
understanding the scale of the information presented relative to the Town.
NOTE 11 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description – The Town of Nantucket administers a single-employer defined benefit healthcare plan (the
plan). The plan provides lifetime healthcare for eligible retirees and their spouses through the Town’s health
insurance plan, which covers both active and retired members, including the Town’s school teacher. Chapter 32B
of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are
negotiated between the Town and the unions representing Town employees and are renegotiated each
bargaining period. The Retiree Health Plan does not issue a publicly available financial report.
Funding Policy – Contribution requirements are also negotiated between the Town and union representatives.
The required contribution is based on a pay-as-you-go financing requirement. The Town contributes between 80
and 90 percent of the cost of current-year premiums for eligible retired plan members and their spouses. Plan
members receiving benefits contribute the remaining 10 to 20 percent of their premium costs. For fiscal year
2012, the Town contributed approximately $2.5, million to the plan.
Annual OPEB Cost and Net OPEB Obligation – The Town’s annual other postemployment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The components of the Town’s
annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town’s net OPEB
obligation are summarized in the following table:
Annual required contribution……………………………………$ 5,982,000
Interest on net OPEB obligation……………………………… 1,025,000
Adjustment to the ARC………………………………………… (750,000)
Annual OPEB cost (expense)……………………………… 6,257,000
Contributions made……………………………………………… (2,534,000)
Increase in net OPEB obligation……………………………… 3,723,000
Net OPEB obligation - beginning of year……………………… 20,513,000
Net OPEB obligation - end of year…………………………… $ 24,236,000
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for Fiscal year 2012 was as follows:
Percentage of
Fiscal Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/2012 $ 6,257,000 40% $ 24,236,000
6/30/2011 5,905,000 37% 20,513,000
6/30/2010 11,184,000 23% 16,808,000
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 61 Basic Financial Statements
Funded Status and Funding Progress – The funded status of the Plan as of the most recent actuarial valuation
date, July 1, 2010, is as follows:
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Projected Unit Credit (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
7/1/2010 $ - $ 82,253,000 $ 82,253,000 0% $ N/A N/A
7/1/2009 - 127,923,000 127,923,000 0% N/A N/A
7/1/2007 - 104,980,000 104,980,000 0% N/A N/A
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the
plan and the annual required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of funding
progress, presented as required supplementary information following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions – Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the
employer and plan members to that point. The actuarial methods and assumptions used include techniques that
are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the July 1, 2010, actuarial valuation, actuarial liabilities were determined using the projected unit credit cost
method. The actuarial assumptions included a 5.00% investment return assumption, calculated based on the
funded level of the plan at the valuation date. The UAAL is being amortized over a 30 year period. The
remaining amortization period at June 30, 2012 is 26 years.
NOTE 12 – LANDFILL CLOSURE
State and Federal laws and regulations require the Town to construct a final capping system on its landfill site
when it stops accepting waste and to perform certain maintenance and monitoring functions at the site after
closure. The Town’s landfill operates under an Administrative Consent Order (ACO) with the Department of
Environmental Protection. The ACO was amended in fiscal year 2010 to allow for landfill mining over a five year
period. The landfill currently maintains three cells, one unlined cell and two lined cells. The largest is the unlined
cell which has been closed (no longer accepts waste) and is currently being mined to reduce the total footprint of
the unlined area and to potentially increase future capacity. The first lined cell has been closed for several years.
The second lined cell is currently accepting waste and is estimated to be closed in fiscal year 2014. The final
capping of the cells is dependent on the successful continuance of the mining program, construction of new lined
cells, and the approval of the Department of Environmental Protection. The Town has reflected a $4 million,
closure liability at June 30, 2012, as an obligation of the solid waste enterprise fund. This amount is based upon
estimates of what it would cost to perform all closure costs and post-closure care for 30 years. Actual costs may
change due to inflation, changes in technology, or changes in regulations.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 62 Basic Financial Statements
NOTE 13 – COMMITMENTS
The Town has entered into contracts totaling approximately $13.5 million where $3 million relates to Town
projects, $6.7 million relates to Airport projects, $1.5 million relates to Wannacomet improvement projects, $1.6
million relates to Sewer improvement projects and $738,000 relates to Siasconset improvement projects.
NOTE 14 – CONTINGENCIES
The Town participates in a number of federal award programs. Although the grant programs have been audited
in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30, 2012, these
programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be
disallowed by the granting agencies cannot be determined at this time, although it is expected such amounts, if
any, to be immaterial.
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, 2012,
cannot be ascertained, management believes any resulting liability should not materially affect the financial
position at June 30, 2012.
The Town is contingently liable for $35% of any deficit, including the operating and debt service costs, which may
be incurred by the Woods Hole, Martha’s Vineyard and Nantucket Steamship Authority (the “Authority”). As of
December 31, 2011, the Authority had total amount of bonds outstanding, net of unamortized premiums of
$1,859,968 and the deferred loss on defeasance of $186,557, of $63,185,000, and the amount of monies in its
reserve fund totaled $3,102,712. For the fiscal year ended December 31, 2011, the Authorities costs of services
exceeded operating revenues $11,210,536, (Change in Net Assets). The Town is not required to make payment
to the Authority unless the amount in the Authority’s reserve is insufficient. Since 1962, the Town has never
made a payment to the Authority.
NOTE 15 – SIGNIFICANT EVENTS
The Nantucket Memorial Airport is one of over 100 transportation hubs in the United Stated that is facing the
possibility of federal spending cuts by the Federal Aviation Administration (FAA). The FAA currently funds and
staffs the island’s air traffic control tower. Federal grant agreements require the Airport to remain open
regardless of the operation of the air traffic control tower. If the cuts are implemented, the Airport expects that
operations would continue without the guidance of the control tower. The most significant financial impact that the
Airport expects would be a reduction in aviation fuel revenue due to a decrease in landings. This revenue source
is currently accounted for within a revolving fund and, accordingly, it is not anticipated to have a significant impact
on the Airport’s operating budget. The pending deadline of the budget cut decision is currently set for early in
2013.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 63 Basic Financial Statements
NOTE 16 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
During fiscal year 2012, the following GASB pronouncements were implemented:
GASB Statement #62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-
November 30, 1989 FASB and AICPA Pronouncements. The implementation of this pronouncement did
not impact the basic financial statements.
GASB Statement #64, Derivative Instruments: Application of Hedge Accounting Termination Provisions,
an amendment of GASB Statement No. 53. The implementation of this pronouncement did not impact the
basic financial statements.
The following GASB pronouncements will be implemented in future fiscal years:
The GASB issued Statement #60, Accounting and Financial Reporting for Service Concession
Arrangements, which is required to be implemented in fiscal year 2013.
The GASB issued Statement #61, The Financial Reporting Entity: Omnibus, which is required to be
implemented in fiscal year 2013.
The GASB issued Statement #63, Financial Reporting of Deferred Outflows of Resources, Deferred
Inflows of Resources, and Net Position, which is required to be implemented in fiscal year 2013.
The GASB issued Statement #65, Items Previously Reported as Assets and Liabilities, which is required
to be implemented in fiscal year 2013.
The GASB issued Statement #66, Technical Corrections – 2012, an amendment of GASB Statements
No. 10 and No. 62, which is required to be implemented in fiscal year 2013.
The GASB issued Statement #67, Financial Reporting for Pension Plans, an amendment of GASB
Statement No. 25, which is required to be implemented in fiscal year 2014.
The GASB issued Statement #68, Accounting and Financial Reporting for Pensions, an amendment of
GASB Statement No. 27, which is required to be implemented in fiscal year 2015.
Management is currently assessing the impact that the implementation of these pronouncements will have on the
basic financial statements.
Town of Nantucket, Massachusetts 64 Required Supplementary Information
Required Supplementary Information
Town of Nantucket, Massachusetts 65 Required Supplementary Information
General Fund Budgetary Comparison
Schedule
General Fund Budgetary Comparison Schedule
The General Fund is the general operating fund of the Town. It is used to account for all of the Town’s financial
resources, except those required to be accounted for in another fund.
Amounts Current Year
Carried forward Initial Original Final
From Prior Year Budget Budget Budget
REVENUES:
Real estate and personal property taxes,
net of tax refunds…………………………………………………$- $ 61,252,026 $ 61,252,026 $ 61,252,026
Tax liens……………………………………………………………… - - - -
Motor vehicle and other excise taxes……………………………… - 1,997,000 1,997,000 1,997,000
Hotel and meals taxes……………………………………………… - 2,240,000 2,240,000 2,240,000
Charges for services………………………………………………… - 9,000 9,000 9,000
Penalties and interest on taxes…………………………………… - 580,000 580,000 580,000
Payments in lieu of taxes…………………………………………… - 8,000 8,000 8,000
Licenses and permits……………………………………………… - 1,007,000 1,007,000 1,007,000
Fines and forfeitures………………………………………………… - 250,000 250,000 250,000
Intergovernmental…………………………………………………… - 1,606,689 1,606,689 1,606,689
Departmental and other…………………………………………… - 1,072,500 1,072,500 1,072,500
Investment income…………………………………………………… - 50,000 50,000 50,000
TOTAL REVENUES……………………………………………… - 70,072,215 70,072,215 70,072,215
EXPENDITURES:
Current:
General government…………………………………………… 1,929,121 6,460,039 8,389,160 10,518,219
Public safety……………………………………………………… 528,121 9,025,754 9,553,875 9,064,122
Education………………………………………………………… 783,257 22,789,121 23,572,378 23,261,130
Public works……………………………………………………… 469,681 3,312,650 3,782,331 3,130,326
Human services………………………………………………… 28,639 841,023 869,662 1,106,458
Culture and recreation…………………………………………… 4,366 978,106 982,472 1,166,140
Pension benefits………………………………………………… - 2,988,750 2,988,750 2,988,750
Employee benefits……………………………………………… - 8,963,860 8,963,860 7,258,907
State and county charges…………………………………………… - 532,144 532,144 532,144
Debt service:
Principal…………………………………………………………… - 6,751,900 6,751,900 6,751,900
Interest…………………………………………………………… - 2,301,960 2,301,960 2,301,960
TOTAL EXPENDITURES……………………………………… 3,743,185 64,945,307 68,688,492 68,080,056
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES…………………………………………………… (3,743,185) 5,126,908 1,383,723 1,992,159
OTHER FINANCING SOURCES (USES):
Transfers in…………………………………………………………… - - - 40,000
Transfers out………………………………………………………… - (7,835,552) (7,835,552) (11,278,447)
TOTAL OTHER FINANCING SOURCES (USES)…………… - (7,835,552) (7,835,552) (11,238,447)
NET CHANGE IN FUND BALANCE…………………………………… (3,743,185) (2,708,644) (6,451,829) (9,246,288)
BUDGETARY FUND BALANCE, Beginning of year………………… - 13,660,442 13,660,442 13,660,442
BUDGETARY FUND BALANCE, End of year…………………………$(3,743,185) $ 10,951,798 $ 7,208,613 $ 4,414,154
See notes to required supplementary information.
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2012
Budgeted Amounts
Town of Nantucket, Massachusetts 66 Required Supplementary Information
Actual Amounts Variance
Budgetary Carried Forward To Final
Amounts To Next Year Budget
$ 61,602,908 $ - $ 350,882
325,055 - 325,055
1,948,316 - (48,684)
2,711,174 - 471,174
83,315 - 74,315
681,176 - 101,176
7,329 - (671)
1,058,052 - 51,052
223,054 - (26,946)
1,640,021 - 33,332
1,592,320 - 519,820
51,408 - 1,408
71,924,128 - 1,851,913
7,167,598 2,219,079 1,131,542
8,487,197 192,626 384,299
22,496,281 576,868 187,981
2,582,349 492,083 55,894
1,042,313 1,100 63,045
1,147,001 444 18,695
2,988,749 - 1
6,134,157 34,598 1,090,152
531,772 - 372
6,656,685 - 95,215
2,147,721 - 154,239
61,381,823 3,516,798 3,181,435
10,542,305 (3,516,798) 5,033,348
106,831 - 66,831
(11,278,447) - -
(11,171,616) - 66,831
(629,311) (3,516,798) 5,100,179
13,660,442 - -
$ 13,031,131 $(3,516,798) $ 5,100,179
Town of Nantucket, Massachusetts 67 Required Supplementary Information
Town of Nantucket, Massachusetts 68 Required Supplementary Information
Retirement System Schedules of Funding
Progress and Employer Contributions
The Retirement System Schedule of Funding Progress presents multiyear trend information about whether the
actuarial value of planned assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
The Retirement System Schedule of Employer Contributions presents multiyear trend information for required and
actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer,
as well as the Town’s proportionate share of the plan’s annual contributions.
Retirement System Schedules
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
1/1/2011 $ 651,063,981 $ 1,173,483,848 $ 522,419,867 55.5% $ 239,437,303 218.2%
1/1/2010 554,876,554 1,030,210,321 475,333,767 53.9% 234,374,075 202.8%
1/1/2009 520,089,855 966,564,614 446,474,759 53.8% 249,971,296 178.6%
1/1/2007 517,396,087 825,863,068 308,466,981 62.6% 226,391,633 136.3%
1/2/2006 465,637,984 765,747,723 300,109,739 60.8% 215,474,180 139.3%
1/1/2004 378,317,300 647,655,411 269,338,111 58.4% 190,614,004 141.3%
1/1/2002 362,911,896 553,531,966 190,620,070 65.6% 173,610,557 109.8%
1/1/2000 300,396,700 462,462,500 162,065,800 65.0% 152,293,100 106.4%
1/1/1998 235,247,660 404,215,695 168,968,035 58.2% 121,161,677 139.5%
1/1/1996 157,044,089 276,107,221 119,063,132 56.9% 108,456,079 109.8%
1/1/1993 97,194,645 226,430,792 129,236,147 42.9% 97,074,725 133.1%
The Town's share of the UAAL, as of January 1, 2011, is approximately 10%.
See notes to required supplementary information.
BARNSTABLE COUNTY CONTRIBUTORY RETIREMENT SYSTEM
SCHEDULE OF FUNDING PROGRESS
Town of Nantucket, Massachusetts 69 Required Supplementary Information
(B/A)
Plan Year Annual (A) (B) Town's Percentage
Ended Required Actual Percentage Actual of System Wide
December 31 Contributions Contributions Contributed Contributions Actual Contributions
2011 $ 43,807,158 $ 43,807,158 100% $ 4,372,452 9.98%
2010 41,327,508 41,327,508 100% 4,263,340 10.32%
2009 39,820,453 39,820,453 100% 3,925,224 9.86%
2008 41,826,233 41,826,233 100% 3,643,915 8.71%
2007 36,738,676 36,738,676 100% 3,346,353 9.11%
2006 31,044,132 31,044,132 100% 2,761,460 8.90%
2005 27,846,430 27,846,430 100% 2,629,487 9.44%
(B/A)
Plan Year Annual (A) (B) County's Percentage
Ended Required Actual Percentage Actual of System Wide
December 31 Contributions Contributions Contributed Contributions Actual Contributions
2011 $ 43,807,158 $ 43,807,158 100% $ 126,269 0.29%
2010 41,327,508 41,327,508 100% 110,888 0.27%
2009 39,820,453 39,820,453 100% 152,865 0.38%
2008 41,826,233 41,826,233 100% 145,083 0.35%
2007 36,738,676 36,738,676 100% 138,012 0.38%
2006 31,044,132 31,044,132 100% 128,612 0.41%
2005 27,846,430 27,846,430 100% 112,420 0.40%
The Town and County's Actual Contributions equaled 100% of their Required Contributions for each year presented.
See notes to required supplementary information.
County of Nantucket
System Wide County of Nantucket
BARNSTABLE COUNTY CONTRIBUTORY RETIREMENT SYSTEM
SCHEDULE OF EMPLOYER CONTRIBUTIONS
System Wide Town of Nantucket
Town of Nantucket
Town of Nantucket, Massachusetts 70 Required Supplementary Information
Town of Nantucket, Massachusetts 71 Required Supplementary Information
Other Postemployment Benefits Plan
Schedules
The Schedule of Funding Progress compares, over time, the actuarial accrued liability for benefits with the
actuarial value of accumulated plan assets.
The Schedule of Employer Contributions presents multiyear trend information for required and actual
contributions relating to the plan.
The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of
trends in the amounts reported.
Other Postemployment Benefit Schedules
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Projected Unit Credit (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
7/1/2010 $ - $ 82,253,000 $ 82,253,000 0% $ N/A N/A
7/1/2009 - 127,923,000 127,923,000 0% N/A N/A
7/1/2007 - 104,980,000 104,980,000 0% N/A N/A
Annual Actual Percentage of
Year Required Contributions the ARC
Ended Contribution (ARC) Made Contributed
6/30/2012 $ 5,982,000 $ 2,534,000 42%
6/30/2011 5,680,000 2,201,000 39%
6/30/2010 10,647,000 2,587,000 24%
6/30/2009 10,745,000 2,534,000 24%
See notes to required supplementary information.
SCHEDULE OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS
Schedule of Funding Progress
Schedule of Employer Contributions
OTHER POSTEMPLOYMENT BENEFIT PLAN
Town of Nantucket, Massachusetts 72 Required Supplementary Information
Actuarial Methods:
Valuation date………………………………………… July 1, 2010
Actuarial cost method………………………………… Projected Unit Credit Cost Method
Amortization method………………………………… Amortization payments increasing at 4.50%
Remaining amortization period……………………… 30 years, open
Actuarial Assumptions:
Investment rate of return…………………………… 5.00%, pay-as-you-go scenario
Medical/drug cost trend rate………………………… 10.0% decreasing by .75% for 6 years and by .50%
for 1 year to an ultimate level of 5.00% per year.
Plan Membership:
Current retirees, beneficiaries, and dependents… 213
Current active members……………………………… 474
Total……………………………………………………687
See notes to required supplementary information.
ACTUARIAL METHODS AND ASSUMPTIONS
OTHER POSTEMPLOYMENT BENEFIT PLAN
Town of Nantucket, Massachusetts 73 Required Supplementary Information
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 74 Required Supplementary Information
NOTE A – BUDGETARY BASIS OF ACCOUNTING
Notes to Required Supplementary Information
1. Budgetary Information
Municipal Law requires the adoption of a balanced budget. An annual budget is prepared by Town
Administration, reviewed and forwarded by the Board of Selectmen, reviewed and recommended by the Finance
Committee to Annual Town Meeting for adoption by positive vote. Increases or decreases to the originally
adopted budget require approval at a Special Town Meeting. Transfers between and within departments
subsequent to the approval of the annual budget typically require approval at a Special Town Meeting or in certain
circumstances by vote of the Finance Committee and Board of Selectmen, as outlined in Massachusetts General
Law.
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. These carry forwards are
included as part of the subsequent fiscal year’s original budget.
Generally, expenditures may not exceed the legal level of spending (salaries, expenses and capital) authorized
for an appropriation account. However, the payment of debt service is statutorily required, regardless of whether
such amounts are appropriated. Additionally, expenditures for disasters, natural or otherwise, and final claims
and judgments may exceed the level of spending authorized by two-thirds majority vote of the Committee.
An annual budget is adopted for the general fund in conformity with the guidelines described above. The Town’s
original fiscal year 2012 budget includes $73 million in appropriations and other amounts to be raised and $3.7
million in amounts carried forward from the previous fiscal year. During fiscal year 2012, the Town’s budget
increased by $2.8 million mainly due free cash voted for unpaid bills and to subsidize the enterprise funds at the
annual Town meeting.
The Town Accountant’s Office has the responsibility to ensure that budgetary control is maintained. Budgetary
control is exercised through the accounting system.
2. 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,
2012, is presented below:
Net change in fund balance - budgetary basis…………………… $ (629,311)
Perspective difference:
Activity of the stabilization fund recorded in the
general fund for GAAP…………………………………………… 100,871
Basis of accounting differences:
Recognition of revenue based on available criteria……………… 227,149
Accrued expenditures……………………………………………… (12,277)
Recognition of revenue for on-behalf payments………………… (2,357,000)
Recognition of expenditures for on-behalf payments…………… 2,357,000
Net change in fund balance - GAAP basis…………………………$ (313,568)
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 75 Required Supplementary Information
3. Appropriation Deficits
During Fiscal year 2012, none of the Town’s general fund expenditures exceeded budgeted appropriations.
NOTE B – PENSION PLAN
The Town and the County contribute to the Barnstable County Retirement Association (“Retirement System”), a
cost-sharing, multiple-employer defined benefit pension plan (“Plan”) administered by the Barnstable County
Retirement Board. The Retirement System provides retirement, disability, and death benefits to members and
beneficiaries. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the Plan.
Plan members are required to contribute to the Retirement System at rates ranging from 5% to 11% of annual
covered compensation. The Town and County are required to pay into the Retirement System its share of the
systemwide actuarially determined contribution which is apportioned among the employers based on active
covered payroll.
The schedule of funding progress, presented as required supplementary information, following the notes to the
basic financial statements, presented multiyear trend information about whether the actuarial value of plan assets
is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Additionally, the
schedule of employer contributions, presented as required supplementary information, following the notes to the
basic financial statements, presents multiyear trend information for required and actual contributions relating to
the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town’s
proportionate share of the plans annual contributions. This information is designed to be helpful for
understanding the scale of the information presented relative to the Town. The following actuarial methods and
assumptions were used in the Retirement System’s most recent actuarial valuation:
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2012
Town of Nantucket, Massachusetts 76 Required Supplementary Information
Actuarial Methods and Assumptions:
Valuation Date…………………………………………………January 1, 2010
Actuarial Cost Method…………………………………………Entry Age Normal Cost Method
Amortization Method…………………………………………Increasing at 4.0% per year after fiscal 2015
and 2003 Early Retirement Incentives, retiree
sheriffs liability and remaining unfunded liability
Asset Valuation Method………………………………………5-year smoothing of investment returns greater
(less) than expected
Actuarial Assumptions:
Investment rate of return……………………………………8.00%
Projected salary increases…………………………………Varies by length of service with ultimate rates
of 4.75% and 5.25% for Groups 1 and 4, respectively
Cost of living adjustments………………………………… 3.0% for the first $12,000 of retirement income,
increasing to $13,000 in fiscal 2012.
Plan Membership:
Retired participants and beneficiaries receiving benefits……………………………………… 2,422
Terminated participants entitled to a return of their employee contributions………………… 649
Terminated participants with a vested right to a deferred or immediate benefit……………… 123
Active participants…………………………………………………………………………………… 4,786
Total…………………………………………………………………………………………………… 7,980
Remaining Amortization Period………………………………28 years from July 1, 2010 for 2002
NOTE C – OTHER POSTEMPLOYMENT BENEFITS
The Town administers a single-employer defined benefit healthcare plan (“the Retiree Health plan”). The plan
provides lifetime healthcare for eligible retirees and their spouses through the Town’s health insurance plan,
which covers both active and retired members, including teachers.
The Town currently finances its other postemployment benefits (OPEB) on a pay-as-you-go basis. As a result,
the funded ratio (actual value of assets expressed as a percentage of the actuarial accrued liability) is 0%. In
accordance with Governmental Accounting Standards, the Town has recorded its OPEB cost equal to the
actuarial determined annual required contribution (ARC) which includes the normal cost of providing benefits for
the year and a component for the amortization of the total unfunded actuarial accrued liability of the plan.
The Schedule of Funding Progress presents multi-year trend information which compares, over time, the actuarial
accrued liability for benefits with the actuarial value of accumulated plan assets.
Projections of benefits for financial reporting purposes are based on the substantive plan and included the types
of benefits provided at the time of each valuation and the historical pattern of sharing of benefit cost between the
employer and plan members to that point. The actuarial methods and assumptions used include techniques that
are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of
trends in the amounts reported.
Town of Nantucket, Massachusetts 77 Other Supplementary Information
Nantucket County Component Unit
Combining Statements
Town of Nantucket, Massachusetts 78 Other Supplementary Information
Nantucket County Component Unit
Combining Statements
County General Fund – primary operating fund for Nantucket County. It is used to account for all financial
resources, except those that are required to be accounted for in another fund.
County Deeds Excise Special Revenue Fund – accounts for the deeds excise tax revenue that is returned to
the County each year.
County Administration – accounts for the 15% of deeds excise tax revenue that is required to be
designated for County Administration.
Corrections Department – accounts for the 75% of deeds excise tax revenue that is required to be
designated for the County Corrections Department.
Registry of Deeds – accounts for the 10% of deeds excise tax revenue that is required to be designated
for the Registry of Deeds.
County Other Special Revenue Funds – accounts for the proceeds of specific revenue sources that are
restricted by law or administrative action to expenditures for specified purposes. This fund is comprised of the
sheriff funds, state and federal grants, Cape Cod license plate fund, escrow funds and gift funds.
Total Total
General County Correction's Registry Deeds Excise Other Special Nantucket
ASSETS Fund Administration Department of Deeds Fund Revenue Funds County
Cash and cash equivalents……………………………………$ 1,199,438 $ 150,400 $ 1,407 $ 871,884 $ 1,023,691 $ 598,727 $ 2,821,856
Other assets…………………………………………………… 222,023 - - 25,324 25,324 - 247,347
TOTAL ASSETS……………………………………………… $ 1,421,461 $ 150,400 $ 1,407 $ 897,208 $ 1,049,015 $ 598,727 $ 3,069,203
LIABILITIES AND FUND BALANCES
LIABILITIES:
Warrants payable……………………………………………$ 995 $ - $ - $ - $ - $ - $ 995
Accrued payroll…………………………………………… 3,337 - - - - - 3,337
Payroll withholdings………………………………………… 9,424 - - - - - 9,424
Other liabilities……………………………………………… 37,928 - - - - - 37,928
TOTAL LIABILITIES…………………………………………… 51,684 - - - - - 51,684
FUND BALANCES:
Restricted…………………………………………………… - 150,400 1,407 897,208 1,049,015 598,727 1,647,742
Unassigned………………………………………………… 1,369,777 - - - - - 1,369,777
TOTAL FUND BALANCES…………………………………… 1,369,777 150,400 1,407 897,208 1,049,015 598,727 3,017,519
TOTAL LIABILITIES AND FUND BALANCES………………$ 1,421,461 $ 150,400 $ 1,407 $ 897,208 $ 1,049,015 $ 598,727 $ 3,069,203
Deeds Excise Special Revenue Fund
NANTUCKET COUNTY
COMBINING BALANCE SHEET
JUNE 30, 2012
Town of Nantucket, Massachusetts 79 Other Supplementary Information
Total Other Total
General County Correction's Registry Deeds Special Revenue Nantucket
Fund Administration Department of Deeds Excise Funds County
REVENUES:
Intergovernmental………………………………………………$ 178,200 $ - $ - $ - - $ 223,615 $ 401,815
Departmental and other………………………………………… 407,011 171,920 250,000 114,614 536,534 376,744 1,320,289
Investment income……………………………………………… 4,604 96 310 1,868 2,274 - 6,878
TOTAL REVENUES…………………………………… 589,815 172,016 250,310 116,482 538,808 600,359 1,728,982
EXPENDITURES:
Current:
County administration……………………………………… 295,105 - - - - - 295,105
Registry of Deeds…………………………………………… 344,201 - - 59,753 59,753 73,458 477,412
Special Projects……………………………………………… - - - - - 380,695 380,695
TOTAL EXPENDITURES……………………………… 639,306 - - 59,753 59,753 454,153 1,153,212
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES…………………………… (49,491) 172,016 250,310 56,729 479,055 146,206 575,770
OTHER FINANCING SOURCES (USES):
Transfers in……………………………………………………… 474,202 - - - - - 474,202
Transfers out…………………………………………………… - (140,250) (250,000) (83,952) (474,202) - (474,202)
TOTAL OTHER FINANCING SOURCES (USES)…… 474,202 (140,250) (250,000) (83,952) (474,202) - -
NET CHANGE IN FUND BALANCES…………………………… 424,711 31,766 310 (27,223) 4,853 146,206 575,770
FUND BALANCES AT BEGINNING OF YEAR………………… 945,066 118,634 1,097 924,431 1,044,162 452,521 2,441,749
FUND BALANCES AT END OF YEAR………………………… $ 1,369,777 $ 150,400 $ 1,407 $ 897,208 $ 1,049,015 $ 598,727 $ 3,017,519
FISCAL YEAR ENDED JUNE 30, 2012
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NANTUCKET COUNTY
Deeds Excise Special Revenue Fund
Town of Nantucket Massachusetts 80 Other Supplementary Information
Town of Nantucket, Massachusetts 81 Additional Information
Additional Information
Reimbursed Reimbursed OtherDirect Direct Direct Indirect Direct Total Labor Costs Costs Costs Costs ExpendituresEXPENDITURES:Direct Salaries…………………………$ 94,495 $ - $ 24,265 $ - $ - $ 118,760 Payroll taxes…………………………… 1,359 - - - - 1,359 Consultants and professional fees… - 23,489 20,401 - 1,919 45,809 Travel…………………………………… - 1,505 1,201 - 113 2,819 Equipment……………………………… - 1,116 145 - 14 1,275 Supplies………………………………… - - 2,536 - 239 2,775 Advertising…………………………… - - 1,001 - 94 1,095 Postage………………………………… - - 706 - 66 772 Conference…………………………… - - 17 - 2 19 Dues and subscriptions……………… - - 423 - 40 463 Repairs and maintenance…………… - - 1,012 - 95 1,107 Health insurance……………………… 7,596 - - 12,656 1,480 21,732 General governance………………… - - - 17,481 - 17,481 Finance and treasurer's office……… - - - 3,372 - 3,372 Information technology……………… - - - 2,451 - 2,451 Utilities………………………………… - - - 7,321 - 7,321 TOTAL EXPENDITURES………… $ 103,450 $ 26,110 $ 51,707 $ 43,281 $ 4,062 $ 228,610 (a) (a) (b)(a) = Direct and indirect grant costs reimbursed through grant overhead.(b) = Direct and indirect grant costs not reimbursed. Indirect Cost Rate = All related costs not paid by grant/Direct labor paid by grant99,050 103,450 = 95.747%NANTUCKET PLANNING AND ECONOMIC DEVELOPMENT COMMISSIONSCHEDULE OF INDIRECT COST RATEFISCAL YEAR ENDED JUNE 30, 2012Highway Planning and General Fund UnreimbursedConstruction Grant Amounts allocable to 3C GrantTown of Nantucket, Massachusetts82Additional Information
Highway
Planning and
General Construction
Fund Grant Total
REVENUES:
Federal and state grants……………………………………………$- $ 224,548 $ 224,548
General fund subsidy………………………………………………… 4,062 - 4,062
TOTAL REVENUES…………………………………………… 4,062 224,548 228,610
EXPENDITURES:
Salaries……………………………………………………………… - 118,760 118,760
Payroll taxes………………………………………………………… - 1,359 1,359
Consultants and professional fees………………………………… 1,919 43,890 45,809
Travel………………………………………………………………… 113 2,706 2,819
Equipment…………………………………………………………… 14 1,261 1,275
Supplies……………………………………………………………… 239 2,536 2,775
Advertising…………………………………………………………… 94 1,001 1,095
Postage……………………………………………………………… 66 706 772
Conferences………………………………………………………… 2 17 19
Dues and subscriptions……………………………………………… 40 423 463
Repairs and maintenance…………………………………………… 95 1,012 1,107
General governance………………………………………………… - 17,481 17,481
Finance and treasurer's office……………………………………… - 3,372 3,372
Information technology……………………………………………… - 2,451 2,451
Utilities………………………………………………………………… - 7,321 7,321
Health insurance……………………………………………………… 1,480 20,252 21,732
TOTAL EXPENDITURES……………………………………… 4,062 224,548 228,610
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES………$- $ - $ -
NANTUCKET PLANNING AND ECONOMIC DEVELOPMENT COMMISSION
SCHEDULE OF PUBLIC SUPPORT
FISCAL YEAR ENDED JUNE 30, 2012
Town of Nantucket, Massachusetts 83 Additional Information