HomeMy WebLinkAboutFiscal Year 2009 Basic Financial Statements
TOWN OF NANTUCKET, MASSACHUSETTS
REPORT ON EXAMINATION OF
BASIC FINANCIAL STATEMENTS
FISCAL YEAR ENDED JUNE 30, 2009
TOWN OF NANTUCKET, MASSACHUSETTS
REPORT ON EXAMINATION OF BASIC FINANCIAL STATEMENTS
JUNE 30, 2009
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............................................................................................................................61
Schedule of Revenues, Expenditures and Changes in Fund Balance – General Fund – Budget and Actual..........62
Retirement System Schedules...................................................................................................................................64
Retirement System Schedule of Funding Progress...............................................................................................65
Retirement System Schedule of Employer Contributions......................................................................................66
Other Post-Employment Benefit Schedules ..............................................................................................................67
Other Post-Employment Benefit Plan Schedule of Funding Progress and Employer Contributions.....................68
Other Post-Employment Benefit Plan Actuarial Methods and Assumptions..........................................................69
Notes to Required Supplementary Information..........................................................................................................70
Nantucket County Component Unit Combining Statements .........................................................................................73
Nantucket County – Combining Balance Sheet.....................................................................................................75
Nantucket County – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances...........76
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, and the aggregate remaining fund information of the Town of Nantucket,
Massachusetts, as of and for the year ended June 30, 2009, 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, each major fund, and the aggregate remaining fund information of the Town of
Nantucket, Massachusetts, as of June 30, 2009, 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 January 5, 2010 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 made for the purpose of forming an opinion on the financial statements taken as a whole. The
combining fund statements, as listed in the table of contents, are presented for the purpose of supplementary
analysis and are not a required part of the financial statements of the Town of Nantucket, Massachusetts. Such
supplementary information has been subjected to the auditing procedures applied in the audit of the financial
2
statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements
taken as a whole.
Management’s discussion and analysis, located on the following pages, and the schedule of revenues,
expenditures and changes in fund balance – general fund – budgetary basis, retirement system schedule of
funding progress, retirement system schedule of employer contributions, other post-employment benefit plan
schedule of funding progress and employer contributions and other post-employment benefit plan actuarial
methods and assumptions located after the notes to the basic financial statements, are not a required part of the
basic financial statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on it.
Wakefield, Massachusetts
January 5, 2010
Town of Nantucket, Massachusetts 3 Management’s Discussion and Analysis
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, 2009. 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, claims and judgments and interest. The business-type activities include the
activities of the sewer department, solid waste, airport, 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
Town of Nantucket, Massachusetts 5 Basic Financial Statements
demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government-wide financial statements. However, unlike the government-wide
financial statements, governmental fund statements focus on near-term inflows 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, 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.
Financial Highlights as of the close of Fiscal 2009
• The total of assets exceeded liabilities (i.e., net assets) by $174 million for governmental activities, and
$117 million for business type activities.
• Governmental funds reported combined ending fund balances of $34 million.
• Unreserved fund balance for the general fund totaled $7.9 million.
• Total governmental funds debt totaled $78.2 million, and total enterprise fund debt totaled $112.3 million.
Town of Nantucket, Massachusetts 6 Basic Financial Statements
Government-wide Financial Analysis
The following chart provides a summary of Governmental activities financial data for fiscal year 2009, with
comparative fiscal 2008 information.
Governmental Activities
Balance at Balance at
June 30, June 30,
2009 2008
Assets:
Current assets……………………………………………$ 57,426,793 $ 57,632,959
Noncurrent assets (excluding capital)………………… 398,828 499,024
Capital assets, not being depreciated………………… 180,467,349 175,330,456
Capital assets, net of accumulated depreciation…… 29,394,863 27,777,272
Total assets………………………………………… 267,687,833 261,239,711
Liabilities:
Current liabilities (excluding debt)…………………… 7,225,372 6,579,717
Noncurrent liabilities (excluding debt)………………… 8,740,740 1,221,905
Current debt……………………………………………… 13,474,322 11,976,816
Noncurrent debt………………………………………… 64,739,985 65,196,354
Total liabilities………………………………………94,180,419 84,974,792
Net Assets:
Capital assets net of related debt……………………… 156,034,000 158,769,791
Restricted………………………………………………… 14,401,121 13,803,760
Unrestricted……………………………………………… 3,072,293 3,691,368
Total net assets……………………………………$ 173,507,414 $ 176,264,919
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 $174 million at the close of fiscal year 2009. The largest
portion of the Town’s net assets, $156 million, (90%), 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.
An additional portion of the net assets, $14.4 million (8%), represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net assets, $3 million (2%), may be
used to meet the government’s ongoing obligations to citizens and creditors. At the end of the current fiscal year,
the Town reports positive balances in all three categories of net assets.
Noncurrent liabilities include an accrued liability for other post-employment benefits in the amount of $7.4 million.
This is the result of the Town’s implementation of GASB Statement No. 45, Accounting and Financial Reporting
by Employers for Post-employment Benefits Other Than Pensions (OPEB). Current debt includes approximately
$6.8 million of multi-purpose bond anticipation notes payable as well as $6.6 million of general obligation bonds
due in fiscal year 2010.
Town of Nantucket, Massachusetts 7 Basic Financial Statements
Governmental Activities
June 30, June 30,
2009 2008
Program revenues:
Charges for services……………………………………$ 5,868,336 $ 7,408,010
Operating grants and contributions…………………… 5,795,452 5,462,762
Capital grants and contributions……………………… 1,270,878 1,991,891
General revenues:
Real estate and personal property taxes……………… 57,438,797 55,285,952
Tax liens………………………………………………… 392,078 295,646
Motor vehicle and other excise taxes………………… 2,201,004 2,367,735
Hotel/motel tax…………………………………………… 1,237,233 1,343,140
Penalties and interest on taxes……………………… 473,701 410,785
Community preservation fund surtax………………… 1,616,989 1,535,337
Payments in lieu of taxes……………………………… 7,296 3,645
Nonrestricted grants and contributions……………… 376,265 469,868
Unrestricted investment income……………………… 277,329 634,539
Miscellaneous revenues……………………………… 843,523 579,775
Total revenues……………………………………… 77,798,881 77,789,085
Expenses:
General government…………………………………… 8,835,601 6,832,016
Public safety……………………………………………… 14,346,976 10,691,407
Education………………………………………………… 27,861,059 27,607,296
Public works……………………………………………… 4,195,016 3,146,271
Community preservation……………………………… 1,895,017 2,105,908
Human services………………………………………… 9,699,805 7,473,662
Culture and recreation………………………………… 3,872,616 2,232,982
Interest…………………………………………………… 3,189,350 2,419,841
Total expenses…………………………………… 73,895,440 62,509,383
Transfers…………………………………………………… (6,660,946) (14,811,978)
Change in net assets…………………………………… $ (2,757,505) $ 467,724
Governmental Activities Balance at Balance at Net
June 30, June 30, Increase
2009 2008 (Decrease)
Net Assets:
Capital assets net of related debt………………………$ 156,034,000 $ 158,769,791 $ (2,735,791)
Restricted………………………………………………… 14,401,121 13,803,760 597,361
Unrestricted……………………………………………… 3,072,293 3,691,368 (619,075)
Total net assets……………………………………$ 173,507,414 $ 176,264,919 $ (2,757,505)
Town of Nantucket, Massachusetts 8 Basic Financial Statements
The primary governmental expenses totaled $74 million. Of that amount, $12.9 million was directly supported by
program revenues consisting of charges for services, operating and capital grants and contributions. General
revenues totaled $64.9 million, primarily coming from property taxes, motor vehicle excise, hotel/motel taxes, non-
community preservation surtaxes, restricted state aid and other miscellaneous charges.
Additionally, governmental activities reported capital contributions of $1.4 million to the sewer enterprise fund, and
$5.3 million of transfers to business-type activities. The capital contribution is recorded for debt that is to be
repaid with governmental funds which has been used to construct assets for the sewer enterprise fund. The $5.3
million in transfers to the solid waste enterprise fund consists of the Town’s initial budgeted transfer of $2,784,000
in taxes and general revenues to balance the solid waste budget; a mid-year decrease in anticipated solid waste
revenue projections, which increased the subsidy by $1,465,605; a reserve fund transfer of $305,500; and
$725,841 which represents the fiscal year 2008 certified retained earnings deficit.
In total, governmental activities net assets decreased by approximately $3 million in Fiscal 2009. The key
element of the decrease relates mainly to the implementation of GASB Statement No. 45 and the related expense
accrual in the amount of $7.4 million. The Town experienced a 26% decrease in charges for services, a 57%
decrease in capital grants, a 6% increase in operating grants and contributions and a 4% increase in real estate
tax collections. Expenses increased in virtually all functional categories, except for community preservation, with
the largest increase being in public safety.
Town of Nantucket, Massachusetts 9 Basic Financial Statements
The following chart provides a summary of Business-type activities financial data for fiscal year 2009, with
comparative fiscal 2008 information.
Business-Type Activities
Balance at Balance at
June 30, June 30,
2009 2008
Assets:
Current assets……………………………………………$ 56,471,897 $ 44,675,721
Noncurrent assets (excluding capital)………………… 2,259,318 2,367,761
Capital assets, not being depreciated………………… 108,259,314 74,107,339
Capital assets, net of accumulated depreciation…… 72,862,056 76,145,691
Total assets………………………………………… 239,852,585 197,296,512
Liabilities:
Current liabilities (excluding debt)…………………… 6,849,174 10,768,076
Noncurrent liabilities (excluding debt)………………… 3,570,066 327,726
Current debt……………………………………………… 37,143,451 12,710,329
Noncurrent debt………………………………………… 75,118,715 70,859,005
Total liabilities……………………………………… 122,681,406 94,665,136
Net Assets:
Capital assets net of related debt……………………… 109,858,055 97,664,074
Unrestricted……………………………………………… 7,313,124 4,967,302
Total net assets…………………………………… 117,171,179 102,631,376
Program revenues:
Charges for services…………………………………… 24,172,299 25,376,292
Operating grants and contributions…………………… 1,113,866 1,773,605
Capital grants and contributions……………………… 15,208,679 6,804,856
Total revenues……………………………………… 40,494,844 33,954,753
Expenses:
Water…………………………………………………… 4,600,314 3,941,308
Sewer…………………………………………………… 5,527,480 4,416,855
Solid Waste……………………………………………… 10,575,310 8,988,076
Airport…………………………………………………… 11,912,883 13,717,716
Total expenses…………………………………… 32,615,987 31,063,955
Transfers and capital contributions…………………… 6,660,946 18,111,978
Change in net assets…………………………………… $ 14,539,803 $ 21,002,776
Town of Nantucket, Massachusetts 10 Basic Financial Statements
There was a net increase of $14.5 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
2009 2008 (Decrease)
Net Assets:
Siasconset Water……………………………………… $ 4,072,117 $ 4,017,461 $ 54,656
Wannacomet Water Company………………………… 14,494,563 14,063,649 430,914
Nantucket Memorial Airport…………………………… 44,942,215 30,242,477 14,699,738
Sewer Enterprise Fund………………………………… 45,687,206 44,380,438 1,306,768
Solid Waste Enterprise Fund………………………… 7,975,078 9,927,351 (1,952,273)
Total net assets……………………………………$ 117,171,179 $ 102,631,376 $14,539,803
The most significant factor in this change is a $14 million increase in net assets for Nantucket Memorial Airport
which consisted mostly of state and federal capital grants for construction projects, including a new airport
terminal.
The decrease in the Solid Waste Enterprise Fund was mainly due to a decrease in tipping fees.
At the end of the current fiscal year, the Town reports $117 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, unreserved fund balance may serve as a useful measure of a government’s net resources available for
spending at the end of the fiscal year.
As of the end of the current fiscal year, governmental funds reported combined ending fund balances of $34.2
million, of which $10.8 million is general fund, and $23.4 million is nonmajor governmental funds. The general
fund is the chief operating fund. At the end of fiscal 2009, unreserved fund balance of the general fund totaled
$7.8 million, while total fund balance totaled $10.8 million.
As a measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and total
fund balance to total fund expenditures. Unreserved fund balance represents 10.8% of total general fund
expenditures and transfers out, while total fund balance represents 14.8% of that same amount. $3.2 million of
the unreserved fund balance was designated at year end to support the 2010 budget. An additional $2.9 million
was reserved for carry-over appropriations and encumbrances. While total fund balance showed a modest
increase, the unreserved, undesignated fund balance decreased by $2.5 million during the fiscal year, mainly due
to increases in designations for future budgets.
Town of Nantucket, Massachusetts 11 Basic Financial Statements
The Town also maintains a community preservation fund, classified within the non-major governmental funds
which had a year end fund balance of $5.9 million. Of this amount, $4.5 million is designated for ongoing
projects, by previous Annual Town Meeting votes. 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 2009, the Town earned and accrued a
year end receivable for state matching community preservation funds, of approximately $675,000.
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 $75.8 million. Changes during the year consisted largely of
allocations between and among departments. The net decrease from changes to the appropriation budget totaled
$826,000, which was a combination of $1.4 million in budget reductions and $726,000 in new appropriations.
Total actual revenue was lower than estimated revenue by $372,000. At year end, outstanding purchase orders
and carry-over appropriations and articles totaled approximately $2.9 million, which is reserved in fund balance at
year end. The total of actual expenditures and these amounts reserved for future expenditures was lower than
the final budget by approximately $1.6 million, a positive variance.
The net of actual revenue and expense, compared to budgeted amounts, was a positive variance of $1.2 million.
Capital Asset and Debt Administration
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.
The Town’s investment in capital assets for its governmental and business-type activities as of June 30, 2009,
totals $210 million in the governmental funds, and $181 million in the enterprise funds (net of accumulated
depreciation). This investment in capital assets includes land, buildings, land improvements, equipment, vehicles
and infrastructure.
Current year fixed asset additions totaled $9.2 million for governmental activities, and $35.1 million for business-
type activities.
Long-term and short-term Debt
At the end of the current fiscal year, the Town of Nantucket had total bonded debt outstanding of $190.5 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, $39.8 million is in short term notes and the remaining $150.7 is outstanding long term debt. The
governmental fund portion of the outstanding debt is $78.2 million. The enterprise funds’ portion of the
outstanding debt is $112.3 million.
Town of Nantucket, Massachusetts 12 Basic Financial Statements
Governmental Enterprise
Funds Funds Total
Short term………………………………$ 6,889,510 $ 32,888,725 $ 39,778,235
Current portion of long term………… 6,584,812 4,254,726 10,839,538
Noncurrent portion of long term…… 64,739,985 75,118,715 139,858,700
Total…………………………………$ 78,214,307 $ 112,262,166 $ 190,476,473
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
The Town’s tax base continued to grow in fiscal 2009. Taxable property increased by $195 million (.9%) in 2009.
New growth provided additional tax revenue of $1 million in 2009 or 2.1% of the prior year’s levy base.
The average residential assessed value was $1.9 million in 2009. The residential tax rate for 2009 was $2.76 per
$1,000 of assessed value.
The 2009 Annual and Special Town Meetings approved a fiscal year 2010 total budget of $109.5 million, including
a total general fund budget of $75.9 million. The projected residential tax rate for 2010 is $2.86 per $1,000 of
assessed value.
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………………………………………………………… $ 41,548,797 $ 41,539,300 $ 83,088,097
Restricted cash and cash equivalents……………………………………...……… - - -
Investments…………………………………………………………………………… 2,831,276 - 2,831,276
Investments, restricted……………………………………………………………… - - -
Receivables, net of allowance for uncollectibles:
Real estate and personal property taxes……………………………………… 3,672,256 - 3,672,256
Tax and trash liens………………………………………………………………… 1,902,085 - 1,902,085
Motor vehicle and other excise taxes…………………………………………… 166,017 - 166,017
User fees…………………………………………………………………………… 2,946 2,136,967 2,139,913
Departmental and other………………………………………………………… 924,032 - 924,032
Special assessments……………………………………………………………… 25,171 - 25,171
Intergovernmental………………………………………………………………… 4,048,966 12,829,755 16,878,721
Deferred loss on refunding…………..……………………………………………… 100,196 - 100,196
Inventory……………………………………………………………………………… - 557,426 557,426
Working capital deposit……………………………………………………………… 1,602,600 - 1,602,600
Other assets…………………………………………………………………………… - - -
Prepaid expenses…………………………………………………………………… 10,900 - 10,900
Internal balances……………………………………………………………………… 591,551 (591,551) -
NONCURRENT:
Restricted assets:
Cash and cash equivalents……………….……………………………………… - - -
Cash surrender value of life insurance………………………………………… - - -
Receivables, net of allowance for uncollectibles:
Intergovernmental………………………………………………………………… - 2,259,318 2,259,318
Deferred loss on refunding…………………………………………………………… 398,828 - 398,828
Capital assets, not being depreciated……………………...……………………… 180,467,349 108,259,314 288,726,663
Capital assets, net of accumulated depreciation………………………………… 29,394,863 72,862,056 102,256,919
TOTAL ASSETS………………………………………………………………………… 267,687,833 239,852,585 507,540,418
LIABILITIES
CURRENT:
Warrants payable……………………………………………………………………… 1,205,467 5,046,050 6,251,517
Accrued liabilities……………………………………………………………………… - 9,609 9,609
Accrued payroll……………………………………………………………………… 2,708,469 157,677 2,866,146
Health claims payable………………………………………………………………… 721,784 - 721,784
Accrued interest……………………………………………………………………… 991,622 1,142,272 2,133,894
Payroll withholdings…………………………………………………………………… 42,877 - 42,877
Security deposits……………………………………………………………………… - 336,330 336,330
Abandoned property………………………………………………………………… 22,094 - 22,094
Other liabilities………………………………………………………………………… 1,104,829 53,750 1,158,579
Compensated absences……………………………………………………………… 295,564 103,486 399,050
Workers' compensation……………………………………………………………… 93,146 - 93,146
Unamortized premium on bonds and notes payable……………………………… 39,520 - 39,520
Bonds and notes payable…………………………………………………………… 13,474,322 37,143,451 50,617,773
NONCURRENT:
Landfill closure………………………………………………………………………… - 2,428,000 2,428,000
Compensated absences……………………………………………………………… 1,182,257 413,940 1,596,197
Unamortized premium on bonds and notes payable……………………………… 157,309 - 157,309
Other post-employment benefits…………………………………………………… 7,401,174 728,126 8,129,300
Bonds and notes payable…………………………………………………………… 64,739,985 75,118,715 139,858,700
TOTAL LIABILITIES……………………………………………………………………… 94,180,419 122,681,406 216,861,825
NET ASSETS
Invested in capital assets, net of related debt………………………………………… 156,034,000 109,858,055 265,892,055
Restricted for:
Debt service………………………………………………………...………………… - - -
Permanent funds:
Expendable……….……………………………………………………………… 226,570 - 226,570
Nonexpendable…………………………………………………………………… 308,153 - 308,153
Other purposes……………………………………………………………………… 13,866,398 - 13,866,398
Unrestricted………………………………………………………………………………… 3,072,293 7,313,124 10,385,417
TOTAL NET ASSETS……………………………………………………………………$ 173,507,414 $ 117,171,179 $ 290,678,593
See notes to basic financial statements.
STATEMENT OF NET ASSETS
JUNE 30, 2009
Town of Nantucket, Massachusetts 14 Basic Financial Statements
County Land Bank Total
$ 3,570,395 $ 9,653,251 $ 13,223,646
- 206,570 206,570
- - -
- 1,118,379 1,118,379
- - -
- - -
- - -
- - -
45,507 130,253 175,760
- - -
1,580 - 1,580
- - -
- 115,479 115,479
- - -
- 42,500 42,500
- 341,681 341,681
- - -
- 3,660,474 3,660,474
- 535,492 535,492
- - -
- - -
28,458 203,012,641 203,041,099
394,868 16,827,230 17,222,098
4,040,808 235,643,950 239,684,758
92,375 200,292 292,667
- 307,604 307,604
9,282 - 9,282
- - -
- - -
383,604 - 383,604
- - -
- - -
37,337 - 37,337
- - -
- - -
- - -
- 3,975,000 3,975,000
- - -
- - -
- - -
81,699 348,900 430,599
- 28,760,399 28,760,399
604,297 33,592,195 34,196,492
423,326 187,146,972 187,570,298
- 3,867,044 3,867,044
- - -
- - -
- - -
3,013,185 11,037,739 14,050,924
$ 3,436,511 $ 202,051,755 $ 205,488,266
Component Units
Town of Nantucket, Massachusetts 15 Basic Financial Statements
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2009
Operating Capital
Charges for Grants and Grants and Net (Expense)
Functions/Programs Expenses Services Contributions Contributions Revenue
Primary Government:
Governmental Activities:
General government…………………… $ 8,835,601 $ 211,203 $ 602,752 $ - $ (8,021,646)
Public safety……………………………… 14,346,976 1,633,813 695,037 - (12,018,126)
Education………………………………… 27,861,059 515,790 3,994,507 - (23,350,762)
Public works……………………………… 4,195,016 66,298 1,200 596,187 (3,531,331)
Community preservation………………… 1,895,017 - - 674,691 (1,220,326)
Human services………………………… 9,699,805 3,120,051 32,079 - (6,547,675)
Culture and recreation…………………… 3,872,616 321,181 469,877 - (3,081,558)
Interest…………………………………… 3,189,350 - - - (3,189,350)
Total Governmental Activities………… 73,895,440 5,868,336 5,795,452 1,270,878 (60,960,774)
Business-Type Activities:
Water……………………………………… 4,600,314 4,714,969 370,915 - 485,570
Sewer……………………………………… 5,527,480 4,911,035 543,213 - (73,232)
Solid waste………………………………… 10,575,310 3,282,734 58,406 951 (7,233,219)
Airport……………………………………… 11,912,883 11,263,561 141,332 15,207,728 14,699,738
Total Business-Type Activities………… 32,615,987 24,172,299 1,113,866 15,208,679 7,878,857
Total Primary Government……………$ 106,511,427 $ 30,040,635 $ 6,909,318 $ 16,479,557 $(53,081,917)
Component Units:
County……………………………………… 2,201,665 957,093 572,942 - (671,630)
Land Bank………………………………… 6,009,300 11,530,788 445,493 - 5,966,981
Total Component Units………………. $ 8,210,965 $ 12,487,881 $ 1,018,435 $ - $5,295,351
See notes to basic financial statements.(Continued)
Program Revenues
Town of Nantucket, Massachusetts 16 Basic Financial Statements
Governmental Business-Type
Activities Activities Total County Land Bank Total
Changes in net assets:
Net (expense) revenue from previous page…… $(60,960,774) $7,878,857 $(53,081,917) $(671,630) $5,966,981 $5,295,351
General revenues:
Real estate and personal property taxes,
net of tax refunds payable…………………… 57,438,797 - 57,438,797 - - -
Tax liens………………………………………… 392,078 - 392,078 - - -
Motor vehicle and other excise taxes………… 2,201,004 - 2,201,004 - - -
Hotel/motel tax………………………………… 1,237,233 - 1,237,233 - - -
Penalties and interest on taxes……………… 473,701 - 473,701 - - -
Community Preservation Fund surcharges… 1,616,989 - 1,616,989 - - -
Payments in lieu of taxes……………………… 7,296 - 7,296 - - -
Grants and contributions not restricted to
specific programs……………………………… 376,265 - 376,265 - - -
Unrestricted investment income……………… 277,329 - 277,329 - - -
Miscellaneous…………………………………… 843,523 - 843,523 - - -
Capital transfers…………………………………… (1,380,000) 1,380,000 - - - -
Transfers, net……………………………………… (5,280,946) 5,280,946 - - - -
Total general revenues and transfers…………… 58,203,269 6,660,946 64,864,215 - - -
Change in net assets………………………… (2,757,505) 14,539,803 11,782,298 (671,630) 5,966,981 5,295,351
Net Assets:
Beginning of year………………………………… 176,264,919 102,631,376 278,896,295 4,108,141 196,084,774 200,192,915
End of year……………………………………… $ 173,507,414 $ 117,171,179 $ 290,678,593 $ 3,436,511 $ 202,051,755 $ 205,488,266
(Concluded)
Primary Government Component Units
STATEMENT OF ACTIVITIES (Continued)
FISCAL YEAR ENDED JUNE 30, 2009
Town of Nantucket, Massachusetts 17 Basic Financial Statements
Component
Nonmajor Total Unit -
Governmental Governmental Nantucket
ASSETS General Funds Funds County
Cash and cash equivalents…………………………………$ 14,103,352 $ 25,045,237 $ 39,148,589 $ 3,570,395
Investments…………………………………………………… - 2,662,443 2,662,443 -
Receivables, net of uncollectibles:
Real estate and personal property taxes……………… 3,582,663 89,593 3,672,256 -
Tax liens ……………………….………………………… 1,879,981 22,104 1,902,085 -
Motor vehicle and other excise taxes…………………… 166,017 - 166,017 -
User fees…………………………………………………… 2,946 - 2,946 -
Departmental and other………………………………… 427,304 100,618 527,922 45,507
Special assessments…………………………………… - 25,171 25,171 -
Intergovernmental………………………………………… 159,176 3,889,790 4,048,966 1,580
Due from other funds………………………………………… 1,090,184 19,852 1,110,036 645,929
Other assets…………………………………………………… - - - -
Prepaid expenses…………………………………………… 10,900 - 10,900 -
TOTAL ASSETS………………………………………………$ 21,422,523 $ 31,854,808 $ 53,277,331 $ 4,263,411
LIABILITIES AND FUND BALANCES
LIABILITIES:
Warrants payable…………………………………………$ 762,927 $ 436,449 $ 1,199,376 $ 92,375
Accrued payroll…………………………………………… 2,618,749 89,720 2,708,469 9,282
Accrued interest on short-term debt…………………… 35,189 - 35,189 -
Payroll withholdings……………………………………… 42,877 - 42,877 383,604
Abandoned property……………………………………… 22,094 - 22,094 -
Other liabilities…………………………………………… 1,096,633 8,196 1,104,829 37,337
Deferred revenues………………………………………… 4,650,413 1,004,296 5,654,709 -
Due to other funds………………………………………… 1,409,574 - 1,409,574 645,929
Notes payable…………………………………………… - 6,889,510 6,889,510 -
TOTAL LIABILITIES………………………………………… 10,638,456 8,428,171 19,066,627 1,168,527
FUND BALANCES:
Reserved for:
Encumbrances and continuing appropriations…… 2,906,103 3,969 2,910,072 75,740
Perpetual permanent funds………………………… - 308,153 308,153 -
Unreserved:
Designated for subsequent year's expenditures…… 3,236,873 - 3,236,873 -
Undesignated, reported in:
General fund……………………………………… 4,641,091 - 4,641,091 399,173
Special revenue funds…………………………… - 17,302,157 17,302,157 2,619,971
Capital projects funds…………………………… - 5,585,788 5,585,788 -
Permanent funds………………………………… - 226,570 226,570 -
TOTAL FUND BALANCES………………………………… 10,784,067 23,426,637 34,210,704 3,094,884
TOTAL LIABILITIES AND FUND BALANCES……………$ 21,422,523 $ 31,854,808 $ 53,277,331 $ 4,263,411
See notes to basic financial statements.
JUNE 30, 2009
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, 2009
Total governmental fund balances……………………………………………………………………… $ 34,210,704
Capital assets (net) used in governmental activities are not financial resources
and, therefore, are not reported in the funds…………………………………………………… 209,862,212
Accounts receivable are not available to pay for current-period
expenditures and, therefore, are deferred in the funds………………………………………… 5,654,709
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……………………………… 4,730,965
In the statement of activities, interest is accrued on outstanding long-term debt,
whereas in governmental funds interest is not reported until due……………………………… (956,433)
Long-term liabilities are not due and payable in the current period and, therefore,
are not reported in the governmental funds
Bonds payable…………………………………………………………………………………… (71,324,797)
Unamortized premiums on bonds and notes………………………………………………… (196,829)
Workers' compensation………………………………………………………………………… (93,146)
Compensated absences………………………………………………………………………… (1,477,821)
Other post-employment benefits……………………………………………………………… (7,401,174)
Net effect of reporting long-term liabilities……………………………………………… (80,493,767)
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…………………………………… 499,024
Net assets of governmental activities………………………………………………………………… $ 173,507,414
See notes to basic financial statements.
Town of Nantucket, Massachusetts 19 Basic Financial Statements
Component
Nonmajor Total Unit -
Governmental Governmental Nantucket
General Funds Funds County
REVENUES:
Real estate and personal property taxes,
net of tax refunds……………………………………………………………$ 56,719,726 $ - $ 56,719,726 $ -
Tax liens………………………………………………………………………… 227,632 - 227,632 -
Motor vehicle and other excise taxes………………………………………… 2,210,996 - 2,210,996 -
Hotel/motel tax………………………………………………………………… 1,237,233 - 1,237,233 -
Charges for services…………………………………………………………… 4,771,647 513,925 5,285,572 -
Community Preservation surcharges………………………………………… - 1,616,989 1,616,989 -
Penalties and interest on taxes……………………………………………… 469,719 3,982 473,701 -
Payments in lieu of taxes……………………………………………………… 7,296 - 7,296 -
Licenses and permits…………………………………………………………… 919,644 - 919,644 -
Fines and forfeitures…………………………………………………………… 240,648 - 240,648 -
Intergovernmental……………………………………………………………… 4,054,249 3,012,739 7,066,988 100,000
Departmental and other………………………………………………………… 232,970 389,231 622,201 1,417,885
Contributions…………………………………………………………………… - 96,821 96,821 -
Investment income……………………………………………………………… 205,782 234,677 440,459 26,880
Miscellaneous…………………………………………………………………… 864,416 2,190,934 3,055,350 -
TOTAL REVENUES…………………………………………………… 72,161,958 8,059,298 80,221,256 1,544,765
EXPENDITURES:
Current:
County administration……………………………………………………… - - - 300,223
Registry of Deeds…………………………………………………………… - - - 303,217
Sheriff's department………………………………………………………… - - - 896,411
Special projects……………………………………………………………… - - - 65,910
General government………………………………………………………… 4,750,523 1,839,795 6,590,318 375
Public safety………………………………………………………………… 8,427,484 570,050 8,997,534 13,835
Education…………………………………………………………………… 21,309,772 2,758,855 24,068,627 -
Public works………………………………………………………………… 2,400,913 5,630,723 8,031,636 -
Community preservation…………………………………………………… - 1,895,017 1,895,017 -
Human services……………………………………………………………… 5,882,311 35,163 5,917,474 -
Culture and recreation……………………………………………………… 1,717,131 518,900 2,236,031 -
Pension benefits…………………………………………………………… 5,445,915 - 5,445,915 73,159
Employee benefits…………………………………………………………… 6,697,224 - 6,697,224 -
Claims and judgments……………………………………………………… - - - 237,533
State and county charges……………………………………………………… 449,457 - 449,457 -
Debt service:
Principal……………………………………………………………………… 6,338,863 - 6,338,863 -
Interest……………………………………………………………………… 2,952,425 - 2,952,425 -
TOTAL EXPENDITURES……………………………………………… 66,372,018 13,248,503 79,620,521 1,890,663
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES……………………………………………………………… 5,789,940 (5,189,205) 600,735 (345,898)
OTHER FINANCING SOURCES (USES):
Proceeds from bonds and notes……………………………………………… 1,380,000 4,610,490 5,990,490 -
Transfers in……………………………………………………………………… 610,000 735,000 1,345,000 1,183,799
Transfers out…………………………………………………………………… (6,227,946) (610,000) (6,837,946) (1,183,799)
Capital transfer………………………………………………………………… (1,380,000) - (1,380,000) -
TOTAL OTHER FINANCING SOURCES (USES)…………………… (5,617,946) 4,735,490 (882,456) -
NET CHANGE IN FUND BALANCES…………………………………………… 171,994 (453,715) (281,721) (345,898)
FUND BALANCES AT BEGINNING OF YEAR………………………………… 10,612,073 23,880,352 34,492,425 3,440,782
FUND BALANCES AT END OF YEAR………………………………………… $ 10,784,067 $ 23,426,637 $ 34,210,704 $ 3,094,884
See notes to basic financial statements.
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2009
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, 2009
Net change in fund balances - total governmental funds…………………………………………………… $ (281,721)
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………………………………………………………………………………………… 9,254,440
Depreciation expense………………………………………………………………………………… (2,499,956)
Net effect of reporting capital assets………………………………………………………… 6,754,484
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…………………………………………………………………… 424,914
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…………………………………………………………………… (5,990,490)
Debt service principal payments…………………………………………………………………… 6,338,863
Net effect of reporting long-term debt……………………………………………………… 348,373
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…………………………………………………… (196,477)
Net change in accrued interest on long-term debt………………………………………………… (170,792)
Net change in workers' compensation……………………………………………………………… 1,190
Amortization of deferred charge on refunding……………………………………………………… (109,209)
Amortization of premiums on bonds and notes payable………………………………………… 43,076
Other post-employment benefits…………………………………………………………………. (7,401,174)
Net effect of recording long-term liabilities and amortizing deferred losses…………… (7,833,386)
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…………… (2,170,169)
Change in net assets of governmental activities……………………………………………………………… $ (2,757,505)
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………………………………. $ 5,640,761 $ 262,326 $ 945,951 $ 23,450,717
Restricted cash and cash equivalents…………………… - - - -
Investments………………………………………………… - - - -
Investments, designated…………………………………… - - - -
Receivables, net of allowance for uncollectibles:
Land Bank accounts…………………………………… - - - -
Insurance reimbursements…………………………… - - - -
User fees………………………………………………… 36,758 570,845 565,583 453,819
Intergovernmental……………………………………… - 8,936,940 - 3,892,815
Inventory……………………………………………………… - - - 457,607
Working capital deposit…………………………………… - - - -
Land deposits…………………………………………….… - - - -
Due from other funds……………………………………… 8,826 138,685 88,320 -
Total current assets………………………………… 5,686,345 9,908,796 1,599,854 28,254,958
NONCURRENT:
Receivables, net of allowance for uncollectibles:
Intergovernmental……………………………………… - 2,259,318 - -
Restricted cash and cash equivalents…………………… - - - -
Cash surrender value of life insurance…………………… - - - -
Capital assets, not being depreciated…………………… 5,542,583 59,541,168 2,651,406 31,168,222
Capital assets, net of accumulated depreciation………… 2,409,103 26,626,991 7,851,666 17,996,901
Total noncurrent assets…………………………… 7,951,686 88,427,477 10,503,072 49,165,123
TOTAL ASSETS………………………………………………… 13,638,031 98,336,273 12,102,926 77,420,081
LIABILITIES
CURRENT:
Warrants payable…………………………………………… 117,082 175,309 571,700 2,503,479
Accrued liabilities…………………………………………… - - - -
Accrued payroll……………………………………………… 3,072 21,525 1,879 106,010
Health claims payable……………………………………… - - - -
Security deposits…………………………………………… - - - 336,330
Accrued interest…………………………………………… 110,424 637,576 13,186 87,458
Other liabilities……………………………………………… - - - 53,750
Due to other funds………………………………………… 17,225 305,997 124,011 226,889
Compensated absences…………………………………… 4,634 9,020 - 57,320
Notes payable……………………………………………… 1,400,000 4,126,000 - 25,562,725
Bonds payable……………………………………………… 423,000 1,776,726 110,000 730,000
Total current liabilities……………………………… 2,075,437 7,052,153 820,776 29,663,961
NONCURRENT:
Landfill closure……………………………………………… - - 2,428,000 -
Compensated absences…………………………………… 18,536 36,078 - 229,279
Notes payable……………………………………………… - - - -
Other post-employment benefits………………………… 36,941 82,121 14,072 464,626
Bonds payable……………………………………………… 7,435,000 45,478,715 865,000 2,120,000
Total noncurrent liabilities………………………… 7,490,477 45,596,914 3,307,072 2,813,905
TOTAL LIABILITIES…………………………………………… 9,565,914 52,649,067 4,127,848 32,477,866
NET ASSETS
Invested in capital assets, net of related debt……………… 3,699,200 45,982,976 10,143,072 34,295,707
Restricted…………………………………………………………
Restricted………………………………………………………… - - - -
Reserved for appropriation………………………………… - - - -
Reserved for appropriation deficit………………………… - - - -
Designated for specific purposes………………………… - - - -
Unrestricted:
Undesignated……………………………………………… 372,917 (295,770) (2,167,994) 10,646,508
TOTAL NET ASSETS………………………………………… $ 4,072,117 $ 45,687,206 $ 7,975,078 $ 44,942,215
See notes to basic financial statements.
Business-type Activities - Enterprise Funds
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2009
Town of Nantucket, Massachusetts 22 Basic Financial Statements
Component
Unit
Governmental
Wannacomet Total Activities -
Water Business-Type Internal Service Nantucket Islands
Company Activities Fund Land Bank
$ 11,239,545 $ 41,539,300 $ 2,400,208 $ 9,653,251
- - - 206,570
- - 168,833 -
- - - 1,118,379
- - - 130,253
- - 396,110 -
509,962 2,136,967 - -
- 12,829,755 - -
99,819 557,426 - 115,479
- - 1,602,600 -
- - - 42,500
418 236,249 891,089 341,681
11,849,744 57,299,697 5,458,840 11,608,113
- 2,259,318 - -
- - - 3,660,474
- - - 535,492
9,355,935 108,259,314 - 203,012,641
17,977,395 72,862,056 - 16,827,230
27,333,330 183,380,688 - 224,035,837
39,183,074 240,680,385 5,458,840 235,643,950
1,678,480 5,046,050 6,091 200,292
9,609 9,609 - 307,604
25,191 157,677 - -
- - 721,784 -
- 336,330 - -
293,628 1,142,272 - -
- 53,750 - -
153,678 827,800 - -
32,512 103,486 - -
1,800,000 32,888,725 - 3,975,000
1,215,000 4,254,726 - -
5,208,098 44,820,425 727,875 4,482,896
- 2,428,000 - -
130,047 413,940 - -
- - - 28,760,399
130,366 728,126 - 348,900
19,220,000 75,118,715 - -
19,480,413 78,688,781 - 29,109,299
24,688,511 123,509,206 727,875 33,592,195
15,737,100 109,858,055 - 187,146,972
- - - 3,867,044
- - -
- - -
- - -
(1,242,537) 7,313,124 4,730,965 11,037,739
$ 14,494,563 $ 117,171,179 $ 4,730,965 $ 202,051,755
Town of Nantucket, Massachusetts 23 Basic Financial Statements
Siasconset Nantucket
Water Memorial
Company Sewer Solid Waste Airport
OPERATING REVENUES:
Lease and rental income………………………………… $ - $ - $ - $ -
Fee revenue………………………………………………… - - - -
Charges for services……………………………………… 627,328 4,913,018 3,282,734 10,999,153
Utility liens…………………………………………………… - - 52,423 -
Intergovernmental………………………………………… - 538,342 - -
Other………………………………………………………… - - - -
Contributions……………………………………………… - - - -
TOTAL OPERATING REVENUES …………………… 627,328 5,451,360 3,335,157 10,999,153
OPERATING EXPENSES:
Cost of services and administration……………………… 352,865 2,830,152 9,959,054 8,800,253
Depreciation………………………………………………… 48,415 1,520,548 505,920 1,513,167
Other………………………………………………………… - - 48,065 -
Employee benefits………………………………………… 39,592 87,296 17,814 1,303,480
TOTAL OPERATING EXPENSES…………………… 440,872 4,437,996 10,530,853 11,616,900
OPERATING INCOME (LOSS)……………………… 186,456 1,013,364 (7,195,696) (617,747)
NONOPERATING REVENUES (EXPENSES):
Investment income………………………………………… 5,179 2,888 6,934 152,895
Interest expense…………………………………………… (136,979) (1,769,172) (44,457) (295,983)
Intergovernmental capital grants………………………… - - - 15,460,573
Debt service - principal…………………………………… - 679,688 - -
TOTAL NONOPERATING
REVENUES (EXPENSES), NET…………………… (131,800) (1,086,596) (37,523) 15,317,485
INCOME (LOSS) BEFORE TRANSFERS
AND CAPITAL CONTRIBUTIONS………………… 54,656 (73,232) (7,233,219) 14,699,738
CAPITAL CONTRIBUTIONS………………………………… - 1,380,000 - -
TRANSFERS IN……………………………………………… - - 5,280,946 -
CHANGE IN NET ASSETS……………………………… 54,656 1,306,768 (1,952,273) 14,699,738
NET ASSETS AT BEGINNING OF YEAR………………… 4,017,461 44,380,438 9,927,351 30,242,477
NET ASSETS AT END OF YEAR…………………………… $ 4,072,117 $ 45,687,206 $ 7,975,078 $ 44,942,215
See notes to basic financial statements.
Business-type Activities - Enterprise Funds
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2009
Town of Nantucket, Massachusetts 24 Basic Financial Statements
Component
Unit
Governmental
Wannacomet Total Activities -
Water Business-Type Internal Service Nantucket Islands
Company Activities Fund Land Bank
$- $ - $ - $ 195,467
- - - 11,289,172
4,087,641 23,909,874 - -
- 52,423 - -
- 538,342 - -
206,663 206,663 - 46,149
- - 7,419,199 -
4,294,304 24,707,302 7,419,199 11,530,788
2,333,748 24,276,072 - 4,553,586
710,027 4,298,077 - -
- 48,065 - -
149,109 1,597,291 9,812,879 -
3,192,884 30,219,505 9,812,879 4,553,586
1,101,420 (5,512,203) (2,393,680) 6,977,202
159,073 326,969 11,511 445,493
(775,136) (3,021,727) - (1,455,714)
- 15,460,573 - -
- 679,688 - -
(670,506) 13,391,060 11,511 (1,010,221)
430,914 7,878,857 (2,382,169) 5,966,981
- 1,380,000 - -
- 5,280,946 212,000 -
430,914 14,539,803 (2,170,169) 5,966,981
14,063,649 102,631,376 6,901,134 196,084,774
$ 14,494,563 $ 117,171,179 $ 4,730,965 $ 202,051,755
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……………………………………………………………$ 620,510 $ 4,485,467 $ 3,322,153 $ 10,887,136
Employer and employee contributions to fund………………………………………………… - - - -
Receipts from other governments……………………………………………………………… - 538,342 - -
Receipts from other operating revenues……………………………………………………… - - - -
Payments to vendors…………………………………………………………………………… (211,191) (2,073,637) (7,463,422) (5,058,638)
Payments to employees………………………………………………………………………… (122,372) (674,901) (65,596) (3,367,916)
Payments for interfund services used………………………………………………………… (39,592) (87,296) (17,814) (1,303,480)
NET CASH FROM OPERATING ACTIVITIES…………………………………………………… 247,355 2,187,975 (4,224,679) 1,157,102
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in……………………………………………………………………………………… - - 5,280,946 -
Advances (to) from other funds………………………………………………………………… (1,093,008) 2,984,019 34,224 182,761
NET CASH FROM NONCAPITAL FINANCING ACTIVITIES…………………………………… (1,093,008) 2,984,019 5,315,170 182,761
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Proceeds from the issuance of bonds and notes……………………………………………… 7,773,000 120,000 - 16,850,000
Capital grants……………………………………………………………………………………… - 13,100,349 - 13,688,985
Acquisition and construction of capital assets………………………………………………… (1,052,780) (17,196,174) - (17,772,321)
Net change in land deposits…………………………………………………………………… - - - -
Principal payments on bonds and notes……………………………………………………… (180,000) (1,071,641) (110,000) (732,312)
Interest expense………………………………………………………………………………… (58,685) (1,827,679) (41,474) (314,707)
NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES……………………… 6,481,535 (6,875,145) (151,474) 11,719,645
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments………………………………………………………………………… - - - -
Life insurance premiums………………………………………………………………………… - - - -
Investment income……………………………………………………………………………… 5,179 2,888 6,934 152,895
NET CASH FROM INVESTING ACTIVITIES…………………………………………………… 5,179 2,888 6,934 152,895
NET CHANGE IN CASH AND CASH EQUIVALENTS………………………………………… 5,641,061 (1,700,263) 945,951 13,212,403
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR……………………………… (300) 1,962,589 - 10,238,314
CASH AND CASH EQUIVALENTS AT END OF YEAR…………………………………………$ 5,640,761 $ 262,326 $ 945,951 $ 23,450,717
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
FROM OPERATING ACTIVITIES:
Operating income (loss)…………………………………………………………………………$ 186,456 $ 1,013,364 $ (7,195,696) $ (617,747)
Adjustments to reconcile operating income (loss) to net
cash from operating activities:
Depreciation…………………………………………………………………………………… 48,415 1,520,548 505,920 1,513,167
Changes in assets and liabilities:
Water and sewer liens…………………………………………………………………… - - - -
Insurance reimbursements……………………..………………………………………… - - - -
User fees…………………………………………………………………………………… (6,818) (427,551) (13,004) (112,017)
Sewer fees………………………………………………………………………………… - - -
Solid waste fees…………………………………………………………………………… - - -
Sale of fuel and additives (net of discounts)…………………………………………… - - - -
Accounts receivable………………………………………………………………….…… - - - -
Loans……………………………………………………………………………………… - - - -
Intergovernmental………………………………………………………………………… - - - -
Inventory…………………………………………………………………………………… - - - 191,504
Working capital deposit…………………………………………………………………… - - - -
Prepaid expenses………………………………………………………………………… - - - 19,876
Warrants payable………………………………………………………………………… (15,287) (11,249) 35,646 (440,008)
Accrued liabilities………………………………………………………………………… - - - -
Security deposits………………………………...………………………………………… - - - 27,233
Accrued payroll…………………………………………………………………………… (340) 6,770 383 20,952
Health claims payable…………………………………………………………………… - - - -
Landfill closure…………………………………………………………………………… - - 2,428,000 -
Other liabilities…………………………………………………………………………… - - - 2,450
Accrued compensated absences……………………………………………………… (2,012) 3,972 - 87,066
Other Post-Employment Benefit………………………………………………………… 36,941 82,121 14,072 464,626
Total adjustments……………………………………………………………………… 60,899 1,174,611 2,971,017 1,774,849
NET CASH FROM OPERATING ACTIVITIES……………………………………………………$ 247,355 $ 2,187,975 $ (4,224,679) $ 1,157,102
See notes to basic financial statements.
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2009
Business-type Activities - Enterprise Funds
Town of Nantucket, Massachusetts 26 Basic Financial Statements
Component
Unit
Governmental
Wannacomet Total Activities
Water Business-Type Internal Service Nantucket Islands
Company Activities Fund Land Bank
$ 4,219,370 $ 23,534,636 $ - $ 15,780,422
- - 7,130,844 -
- 538,342 - -
- - - 241,616
(1,140,591) (15,947,479) (9,920,972) (6,493,513)
(1,088,117) (5,318,902) - (1,690,352)
(149,109) (1,597,291) - -
1,841,553 1,209,306 (2,790,128) 7,838,173
- 5,280,946 212,000 -
(936,930) 1,171,066 (340,260) -
(936,930) 6,452,012 (128,260) -
4,615,000 29,358,000 - -
- 26,789,334 - -
(2,836,957) (38,858,232) - (6,999,129)
- - - (40,000)
(1,255,000) (3,348,953) - (1,227,338)
(742,430) (2,984,975) - (1,224,246)
(219,387) 10,955,174 - (9,490,713)
- - (8,101) (1,332,713)
- - - (26,208)
159,073 326,969 11,511 445,493
159,073 326,969 3,410 (913,428)
844,309 18,943,461 (2,914,978) (2,565,968)
10,395,236 22,595,839 5,315,186 12,219,219
$ 11,239,545 $ 41,539,300 $ 2,400,208 $ 9,653,251
$ 1,101,420 $ (5,512,203) $ (2,393,680) $ 6,977,203
710,027 4,298,077 - 904,597
- - - -
- - (299,720) (15,453)
(74,934) (634,324) - -
- - - -
- - - -
- - - -
- - - (21,390)
- - -
- - - -
15,696 207,200 - (4,986)
- - (111,700) -
- 19,876 - 12,592
37,029 (393,869) 3,607 -
294 294 - (14,390)
- 27,233 - -
5,274 33,039 - -
- - 11,365 -
- 2,428,000 - -
(93,378) (90,928) - -
9,759 98,785 - -
130,366 728,126 - -
740,133 6,721,509 (396,448) 860,970
$ 1,841,553 $ 1,209,306 $ (2,790,128) $ 7,838,173
Town of Nantucket, Massachusetts 27 Basic Financial Statements
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30, 2009
Private
Purpose Agency
Trust Funds Funds
ASSETS
Cash and cash equivalents……………………………………$ 669,202 $ 739,302
Investments…………………………………………………… 1,757,702 -
TOTAL ASSETS…………………………………………………… 2,426,904 739,302
LIABILITIES
Warrants payable……………………………………………… - 60,724
Liabilities due depositors……………………………………… - 678,578
TOTAL LIABILITIES……………………………………………… - 739,302
NET ASSETS
Held in trust for other purposes………………………………$ 2,426,904 $ -
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, 2009
Private
Purpose
Trust Funds
ADDITIONS:
Contributions:
Private donations………………………………………………………………………………$ 7,661
Net investment income (loss):
Interest………………………………………………………………………………………… 144,600
TOTAL ADDITIONS……………………………………………………………………… 152,261
DEDUCTIONS:
General government………………………………………………………………………… 6,300
Educational scholarships…………………………………………………………………… 92,399
TOTAL DEDUCTIONS…………………………………………………………………… 98,699
CHANGE IN NET ASSETS……………………………………………………………… 53,562
NET ASSETS AT BEGINNING OF YEAR…………………………………………………… 2,373,342
NET ASSETS AT END OF YEAR………………………………………………………………$ 2,426,904
See notes to basic financial statements.
Town of Nantucket, Massachusetts 29 Basic Financial Statements
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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 Sheriff’s 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 025541.
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 025541.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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, 2009
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 nonmajor governmental funds consist of other special revenue, capital projects and permanent funds that are
aggregated and presented in the nonmajor governmental funds column on the governmental funds financial
statements. The following describes the general use of these fund types:
The Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than
permanent funds or capital projects funds) that are restricted by law or administrative action to expenditures for
specified purposes.
The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction
of major capital facilities (other than those financed by enterprise and trust funds).
The Permanent Fund is used to account for financial resources that are legally restricted to the extent that only
earnings, not principal, may be used for purposes that support the governmental programs.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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 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.
Government-Wide and Fund Financial Statements
For enterprise fund accounting, all applicable Financial Accounting Standards Board (FASB) pronouncements
issued on or prior to November 30, 1989, are applied, unless those pronouncements conflict with or contradict
GASB pronouncements.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 34 Basic Financial Statements
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.
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.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 35 Basic Financial Statements
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.
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 Fees
Water Fees for Siasconset Water are levied monthly based on individual meter readings.
Water 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 Fees
Sewer 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 Fees
The outstanding receivable for Landfill Fees is comprised of annual commercial fees assessed to restaurants and
inns and monthly tipping fees charged to private haulers.
Airport Fees
The outstanding receivable for Airport Fees is comprised primarily of fuel sales.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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
Office equipment……………………………… 5-10
Shop equipment………………………………… 10-15
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, 2009
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
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 38 Basic 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
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.
“Other purposes” represents restrictions placed on assets from outside parties.
Fund Financial Statements (Fund Balances)
Fund balances are reserved for amounts that are not available for appropriation or are legally restricted by outside
parties for a specific future use. Designations of fund balance represent tentative management plans that are
subject to change.
Fund balances have been “reserved for” the following:
“Encumbrances and continuing appropriations” represents amounts obligated under purchase orders, contracts
and other commitments for expenditures that are being carried over to the ensuing fiscal year.
“Perpetual permanent funds” represents amounts held in trust for which only investment earnings may be
expended.
Fund balances have been “designated for” the following:
“Subsequent year’s expenditures” represents amounts appropriated for the fiscal year 2010 operating budget.
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.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 39 Basic Financial Statements
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, 2009, there are several individual fund deficits within the special revenue funds and capital project
funds, which are classified as non-major governmental funds in the fund financial statements. These deficits will
be funded through available funds and grants during fiscal year 2010.
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.
R. Total Column
Government-Wide Financial Statements
The total column presented on the government-wide financial statements represents consolidated financial
information.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 40 Basic Financial Statements
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 and Nantucket County and Nantucket Islands
Land Bank component units, does not have a deposit policy for custodial credit risk.
Primary Government
At fiscal year-end, the carrying amount of deposits of the primary government totaled $79,892,205 and the bank
balance totaled $84,826,545. Of the bank balance, $1,144,388 was covered by the Federal Depositors Insurance
Company (“FDIC”), $1,633,813 was covered by Depositors Insurance Fund (DIF), $72,654,910 was collateralized
and $9,393,434 was exposed to custodial credit risk because it was uninsured and uncollateralized.
Component Unit-County
At fiscal year-end, the carrying amount of deposits of Nantucket County totaled $3,570,395 and the bank balance
totaled $3,702,986. Of the bank balance, $579,151 was covered by Federal Depository Insurance and the
remainder of $3,123,835 was collateralized, therefore the County did not have funds that were exposed to
custodial credit risk because of being uninsured or uncollateralized.
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.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 41 Basic Financial Statements
At fiscal year-end, the carrying amount of deposits of the Nantucket Islands Land Bank totaled $13,520,295, of
which $13,270,295 was exposed to custodial credit risk.
The Land Bank, as part of a Land purchase in previous years, is required to maintain a reserve fund to cover the
purchase of Life Insurance to be used to pay off the note at the time of the sellers death. These reserve funds are
included in restricted cash and cash equivalents in the accompanying financial statements.
Investments
As of June 30, 2009, the Town of Nantucket had the following investments:
Primary Government
Under 1-5 6-10
Fair Value 1 Year Years Years
Investment Type
Debt Securities:
Federal Home Loan Bank…………………………………$ 582,860 $ 154,172 $ - $ 428,688
Federal Home Loan Mortgage Corporation................... 965,781 - 643,812 321,969
Federal National Mortgage Association........................ 560,882 238,007 215,000 107,875
Federal Home Loan Mortgage Corporation Gold.......... 7,892 - 7,892 -
United States Treasury Note......................................... 2,471,563 203,828 1,189,931 1,077,804
Repurchase Agreements………………………………… 2,859,080 2,859,080 - -
Total Debt Securities..................................................... 7,448,058 $ 3,455,087 $ 2,056,635 $ 1,936,336
Other Investments:
MMDT………………………………………………………… 1,745,316
Total Investments.......................................................... $ 9,193,374
Maturity
Component Unit-County
The County did not have any investments as of June 30, 2009.
Component Unit-Nantucket Islands Land Bank
At June 30, 2009, the Land Bank’s investments of $1,118,379, represents 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 98E, Series
2007A and Series 2009A bonds outstanding as of June 30, 2009. 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.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 42 Basic Financial Statements
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 not have an investment
policy for custodial credit risk. 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 investments of $582,860 in Federal Home Loan Bank, $965,781 in Federal Home Loan Mortgage
Corporation, $560,882 in Federal National Mortgage Association $7,892 in Federal Home Loan Mortgage
Corporation Gold, and $2,471,563 in U.S. Treasury Notes are subject to custodial credit risk exposure because
the related securities are uninsured, unregistered, and held by the counterparty. The repurchase agreement
consists of an overnight sweep agreement.
Interest Rate Risk
The Town, including the primary government and Nantucket County and Nantucket Islands Land Bank
component units, does not have a formal investment policy that limits investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk
The Town, including the primary government and Nantucket County component unit has not adopted a formal
policy related to Credit Risk. Of the Town’s investments at June 30, 2009, $4,581,086 is rated AAA and $7,892 is
unrated.
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.
Primary Government
More than 5 percent of the primary government’s investments are in the following securities:
Percentage of
Issuer
Federal Home Loan Mortgage Corporation.................... 11%
United States Treasury Note.......................................... 27%
Repurchase Agreements…………………………………… 31%
MMDT………………………………………………………… 19%
Total Investments
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 43 Basic Financial Statements
NOTE 3 – RECEIVABLES
At June 30, 2009, receivables for the individual major, non-major 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…………… $ 3,945,856 $ (273,600) $ 3,672,256
Tax liens ……………………….……………………… 1,902,085 - 1,902,085
Excise taxes…………………………………………… 824,641 (658,624) 166,017
User fees………………………………………………… 2,946 - 2,946
Departmental and other……………………………… 1,334,180 (410,148) 924,032
Special assessments…………………………………… 25,171 - 25,171
Intergovernmental……………………………………… 4,048,966 - 4,048,966
Total……………………………………………………$ 12,083,845 $ (1,342,372) $ 10,741,473
At June 30, 2009, receivables for the enterprise funds consist of the following:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Water fees………………………………………………$ 546,720 $ - $ 546,720
Sewer fees……………………………………………… 570,845 - 570,845
Solid waste fees………………………………………… 680,385 (114,802) 565,583
Airport fees……………………………………………… 453,819 - 453,819
Intergovernmental……………………………………… 15,089,073 - 15,089,073
Total………………………………………………………$ 17,340,842 $ (114,802) $ 17,226,040
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…………… $ 2,174,165 $ 89,593 $ 2,263,758
Tax liens………………….……………………………… 1,879,981 22,104 1,902,085
Motor vehicle and other excise taxes………………… 166,017 - 166,017
User fees………………………………………………… 2,946 - 2,946
Departmental and other……………………………… 427,304 100,618 527,922
Special assessments…………………………………… - 25,171 25,171
Intergovernmental……………………………………… - 766,810 766,810
Total………………………………………………………$ 4,650,413 $ 1,004,296 $ 5,654,709
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 44 Basic Financial Statements
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the primary government for the fiscal year ended June 30, 2009, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land…………………………………………………………$ 171,176,126 $ - $ - $ 171,176,126
Construction in progress………………………………… 4,154,330 7,916,559 (2,779,666) 9,291,223
- -
Total capital assets not being depreciated………… 175,330,456 7,916,559 (2,779,666) 180,467,349
Capital assets being depreciated:
Vehicles…………………………………………………… 8,335,734 315,936 (28,000) 8,623,670
Buildings…………………………………………………… 31,531,194 2,349,685 - 33,880,879
Machinery and equipment………………………………… 7,667,798 217,182 (32,042) 7,852,938
Infrastructure……………………………………………… 23,592,312 1,234,744 - 24,827,056
Total capital assets being depreciated……………… 71,127,038 4,117,547 (60,042) 75,184,543
Less accumulated depreciation for:
Vehicles…………………………………………………… (5,362,015) (729,478) 28,000 (6,063,493)
Buildings.…………………………………………………… (15,337,863) (727,375) - (16,065,238)
Machinery and equipment………………………………… (6,828,492) (281,058) 32,042 (7,077,508)
Infrastructure.……………………………………………… (15,821,396) (762,045) - (16,583,441)
Total accumulated depreciation…………………… (43,349,766) (2,499,956) 60,042 (45,789,680)
Total capital assets being depreciated, net………………… 27,777,272 1,617,591 - 29,394,863
Total governmental activities capital assets, net……………$ 203,107,728 $ 9,534,150 $ (2,779,666) $ 209,862,212
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 45 Basic Financial Statements
The capital asset totals for the business-type activities at June 30, 2009 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………………………………… 56,964,911 34,517,850 (365,875) 91,116,886
Total capital assets not being depreciated………… 74,107,339 34,517,850 (365,875) 108,259,314
Capital assets being depreciated:
Land improvements……………………………………… 24,554,895 - - 24,554,895
Plant………………………………………………………… 15,606,580 - - 15,606,580
Infrastructure……………………………………………… 37,683,138 465,745 (18,882) 38,130,001
Buildings…………………………………………………… 20,024,892 181,670 - 20,206,562
Vehicles…………………………………………………… 4,368,417 143,691 - 4,512,108
Machinery and equipment………………………………… 18,092,544 1,776 - 18,094,320
Furniture, fixtures and computer equipment…………… 474,076 124,345 - 598,421
Total capital assets being depreciated……………… 120,804,542 917,227 (18,882) 121,702,887
Less accumulated depreciation……………………………… (44,658,851) (4,200,862) 18,882 (48,840,831)
Total capital assets being depreciated, net………………… 76,145,691 (3,283,635) - 72,862,056
Total business-type activities, capital assets…………………$ 150,253,030 $ 31,234,215 $ (365,875) $ 181,121,370
Capital asset activity for the Nantucket County and Nantucket Islands Land Bank component units for the fiscal
year ended June 30, 2009 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Nantucket Islands Land Bank Component Unit
Capital assets not being depreciated:
Land…………………………………………………………$ 195,732,972 $ 7,279,669 $ - $ 203,012,641
Capital assets being depreciated:
Buildings, improvements and equipment……………… 17,921,078 2,719,460 - 20,640,538
Less accumulated depreciation………………………… (2,996,574) (816,734) - (3,813,308)
Total capital assets being depreciated, net………………… 14,924,504 1,902,726 - 16,827,230
Total Nantucket Islands Land Bank Component Unit,
capital assets…………………………………………………$ 210,657,476 $ 9,182,395 $ - $ 219,839,871
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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:
Vehicles…………………………………………………… 277,183 - - 277,183
Equipment………………………………………………… 1,415,434 - - 1,415,434
Total capital assets being depreciated……………… 1,692,617 - - 1,692,617
Less accumulated depreciation for:
Vehicles…………………………………………………… (202,353) (31,840) - (234,193)
Equipment………………………………………………… (866,093) (197,463) - (1,063,556)
Total accumulated depreciation…………………… (1,068,446) (229,303) - (1,297,749)
Total capital assets being depreciated, net………………… 624,171 (229,303) - 394,868
Total County Component Unit capital assets…………………$ 652,629 $ (229,303) $ - $ 423,326
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:
General government……………………………………………………………… $ 50,657
Public safety………………………………………………………………………… 672,328
Education…………………………………………………………………………… 681,631
Public works………………………………………………………………………… 949,584
Human services…………………………………………………………………… 5,764
Culture and recreation……………………………………………………………… 139,992
Total depreciation expense - governmental activities……………………………… $ 2,499,956
Business-Type Activities:
Water………………………………………………..…………………………………$ 661,227
Sewer……………………………………….………………………………………… 1,520,548
Solid waste……………………………………….…………………………………… 505,920
Airport……………………………………….………………………………………… 1,513,167
Total depreciation expense - business-type activities………………………………$ 4,200,862
Nantucket County Component Unit:
Registry of Deeds……………………………………………………………………$ 43,032
Sheriff's Department………………………………………………………………… 186,271
Total depreciation expense - component unit activities………………………………$ 229,303
Nantucket Islands Land Bank Component Unit:
Land Bank……………………………………………………………………………$ 816,734
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 47 Basic Financial Statements
NOTE 5 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables at June 30, 2009 are summarized as follows:
Nonmajor Siasconset Sewer Solid Waste Wannacomet
General Governmental Water Enterprise Enterprise Water Internal Service
Fund Funds Company Fund Fund Company Fund Total
General Fund………………………$ 465,182 $ 19,852 $ - $ - $ 88,320 $ 418 $ 835,802 $ 1,409,574
Siasconset Water Company……… - - - - - - 17,225 17,225
Sewer Enterprise Fund…………… 285,112 - - - - - 20,885 305,997
Solid Waste Enterprise Fund…… 124,011 - - - - - - 124,011
Nantucket Memorial Airport……… 215,879 - - - - - 11,010 226,889
Wannacomet Water Company…… - - 8,826 138,685 - - 6,167 153,678
Total……………………………$ 1,090,184 $ 19,852 $ 8,826 $ 138,685 $ 88,320 $ 418 $ 891,089 $ 2,237,374
Due To:
Due From:
Interfund transfers for the fiscal year ended June 30, 2009, are summarized as follows:
Nonmajor Solid Waste
General Governmental Enterprise Internal Service
Fund Funds Fund Fund Total
General Fund…………………………$- $ 735,000 $ 5,280,946 $ 212,000 $ 6,227,946
Nonmajor Governmental Funds…… 610,000 - - - 610,000
Total……………………………………$ 610,000 $ 735,000 $ 5,280,946 $ 212,000 $ 6,837,946
(1) (2) (3) (4)
(1) Transfers to the General Fund from the Ferry Embarcation Fund ($180,000), Ambulance Reserve Fund ($380,000),
and the Waterways Improvement Fund ($50.000).
(2) General Fund appropriation to the Stabilization Fund ($500,000), and to School Revolving Funds ($235,000).
(3) General Fund subsidy to Solid Waste Enterprise Fund, including prior year Solid Waste Enterprise Fund deficit.
(4) General Fund appropriation for Workers' Compensation Insurance.
Transfers In:
Transfers Out:
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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, 2009, are as follows:
Balance at Balance at
Rate June 30, Renewed/ Retired/ June 30,
Type Purpose (%) Due Date 2008 Issued Redeemed 2009
Governmental Funds
BAN Stormwater Drainage Improvements………… 2.00 02/27/09 $ 5,500,000 $ - $ 5,500,000 $ -
BAN Stormwater Drainage Improvements………… 2.00 03/30/09 - 4,610,490 4,610,490 -
BAN Stormwater Drainage Improvements………… 1.75 02/26/10 - 889,510 - 889,510
BAN Police Station Construction…………………… 1.50 02/26/10 - 6,000,000 - 6,000,000
Total Governmental Funds.………………………………………………… 5,500,000 11,500,000 10,110,490 6,889,510
Enterprise Fund
BAN Airport……………………………………………… 2.25 02/27/09 8,712,725 - 8,712,725 -
BAN Airport……………………………………………… 1.75 02/26/10 - 8,712,725 - 8,712,725
BAN Airport Construction……………………………… 1.50 02/26/10 - 6,850,000 - 6,850,000
BAN Airport Construction……………………………… 1.50 02/26/10 - 4,000,000 - 4,000,000
BAN Airport Construction……………………………… 1.50 02/26/10 - 3,000,000 - 3,000,000
BAN Ariport Runway Design………………………… 1.50 02/26/10 - 2,000,000 - 2,000,000
BAN Airport Remodeling……………………………… 1.50 02/26/10 - 500,000 - 500,000
BAN Airport Departmental Equipment ……………… 1.50 02/26/10 - 500,000 - 500,000
BAN MWPAT…………………………………………… 1.22 12/31/10 - 4,006,000 - 4,006,000
BAN Sewer Equipment………………………………… 1.50 02/26/10 - 120,000 - 120,000
BAN Water……………………………………………… 1.50 02/26/10 - 1,800,000 - 1,800,000
BAN Water……………………………………………… 1.50 02/26/10 - 1,400,000 - 1,400,000
Total Enterprise Fund………………………………………………………… 8,712,725 32,888,725 8,712,725 32,888,725
Total…………………………………………………………………………$ 14,212,725 $ 44,388,725 $ 18,823,215 $ 39,778,235
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".
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 49 Basic Financial Statements
Details related to the outstanding indebtedness at June 30, 2009, and the debt service requirements are as
follows:
Bonds and Notes Payable Schedule – Governmental Funds
Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Advanced refunding of 91 landfill…………………………4.75 - 6.00 $ 3,162,732 $ - $ 725,455 $ 2,437,277
Advanced refunding of 91 sewer………………………… 4.75 - 6.00 1,967,181 - 450,818 1,516,363
Advanced refunding of 91 school…………………………4.75 - 6.00 336,818 - 336,818 -
Advanced refunding of 91 school…………………………4.75 - 6.00 403,269 - 196,909 206,360
Land acquisition………………………………………………4.00 - 4.90 190,000 - 20,000 170,000
MWPAT Title V Loan - 97-1148……………………………- 13,918 - 1,162 12,756
Recreational facility…………………………………………2.25 - 5.00 440,000 - 40,000 400,000
School remodeling………………………………………… 2.25 - 5.00 1,865,000 - 120,000 1,745,000
School remodeling………………………………………… 2.50 - 4.25 120,000 - 10,000 110,000
Land acquisition………………………………………………2.50 - 4.10 13,880,000 - 595,000 13,285,000
Road, sidewalk and bikepath………………………………2.50 - 3.00 220,000 - 110,000 110,000
Recreational facility…………………………………………2.50 - 4.00 275,000 - 25,000 250,000
Planning………………………………………………………2.50 - 3.00 50,000 - 25,000 25,000
Public wharf………………………………………………… 2.50 - 4.00 75,000 - 15,000 60,000
Assessors map………………………………………………2.50 - 4.00 35,000 - 5,000 30,000
Fire departmental equipment………………………………2.50 - 3.00 15,000 - 10,000 5,000
Departmental equipment……………………………………2.50 - 3.00 380,000 - 190,000 190,000
Computer hardware…………………………………………2.50 - 4.00 385,000 - 55,000 330,000
Remodeling………………………………………………… 2.50 - 4.13 465,000 - 30,000 435,000
Road and drainage………………………………………… 2.50 - 3.00 210,000 - 105,000 105,000
Bulkhead………………………………………………………2.50 - 4.00 80,000 - 15,000 65,000
Public wharf………………………………………………… 2.50 - 4.00 50,000 - 10,000 40,000
School remodeling………………………………………… 3.75 - 5.00 630,000 - 35,000 595,000
Planning………………………………………………………3.75 - 4.00 300,000 - 100,000 200,000
Outdoor recreational facility…………………………………3.75 - 5.00 495,000 - 40,000 455,000
Fire departmental equipment………………………………3.75 - 4.00 210,000 - 70,000 140,000
Bath house construction……………………………………3.75 - 5.00 220,000 - 15,000 205,000
Public works equipment……………………………………3.75 - 4.00 70,000 - 25,000 45,000
Land acquisition………………………………………………3.75 - 5.00 275,000 - 20,000 255,000
Advance refunding of 97 land bonds………………………3.75 - 5.00 17,705,000 - 1,475,000 16,230,000
Childrens beach ramp………………………………………3.00 - 5.00 200,000 - 15,000 185,000
Public safety communications………………………………3.00 - 5.00 3,000,000 - 335,000 2,665,000
Bikepath………………………………………………………3.00 - 5.00 650,000 - 50,000 600,000
Fairgrounds road……………………………………………3.00 - 5.00 1,375,000 - 345,000 1,030,000
Fire engine……………………………………………………3.00 - 5.00 450,000 - 90,000 360,000
Washington street building…………………………………3.00 - 5.00 200,000 - 10,000 190,000
Sidewalk design………………………………………………3.00 - 5.00 25,000 - 5,000 20,000
South Shore Road bike path………………………………3.00 - 5.00 425,600 - 30,600 395,000
Nobadeer Farm Road bike path……………………………3.00 - 5.00 100,000 - 10,000 90,000
Study of proposed bulk fuel facility…………………………3.00 - 5.00 250,000 - 50,000 200,000
NES building improvements……………………………… 3.00 - 5.00 600,000 - 35,000 565,000
CPS building improvements……………………………… 3.00 - 5.00 740,000 - 45,000 695,000
NHS building improvements……………………………… 3.00 - 5.00 1,590,000 - 90,000 1,500,000
MWPAT ………………………………………………………2.00 - 2.414 16,093,652 4,610,490 227,101 20,477,041
New School Playing Fields…………………………………3.00 - 5.00 1,200,000 - 80,000 1,120,000
School Bus Lanes and Parking Lot Improvements………3.00 - 5.00 250,000 - 50,000 200,000
Surfside wastewater design…………………………………4.125 - 1,380,000 - 1,380,000
Total Governmental Bonds Payable………………………$ 71,673,170 $ 5,990,490 $ 6,338,863 $ 71,324,797
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
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
2010………………$ 6,584,812 $ 2,395,651 $ 8,980,463
2011……………… 6,061,641 2,150,591 8,212,232
2012……………… 6,055,399 1,912,846 7,968,245
2013……………… 4,679,473 1,699,738 6,379,211
2014……………… 4,548,870 1,531,689 6,080,559
2015……………… 4,633,599 1,353,429 5,987,028
2016……………… 4,638,641 1,179,592 5,818,233
2017……………… 4,734,054 1,005,258 5,739,312
2018……………… 4,264,819 840,454 5,105,273
2019……………… 2,335,948 725,588 3,061,536
2020……………… 2,312,447 649,250 2,961,697
2021……………… 2,303,176 571,543 2,874,719
2022……………… 2,285,443 494,060 2,779,503
2023……………… 2,243,106 416,254 2,659,360
2024……………… 2,151,176 339,090 2,490,266
2025……………… 1,114,661 287,091 1,401,752
2026……………… 1,103,572 256,965 1,360,537
2027……………… 1,001,032 228,914 1,229,946
2028……………… 944,573 202,364 1,146,937
2029……………… 876,745 178,567 1,055,312
2030……………… 614,623 160,547 775,170
2031……………… 628,799 144,947 773,746
2032……………… 643,320 129,002 772,322
2033……………… 658,197 112,703 770,900
2034……………… 673,437 96,040 769,477
2035……………… 689,049 79,004 768,053
2036……………… 705,043 61,587 766,630
2037……………… 721,428 43,780 765,208
2038……………… 738,214 25,572 763,786
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………………$ 71,324,797 $ 19,366,042 $ 90,690,839
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 51 Basic Financial Statements
Bonds and Notes Payable Schedule – Enterprise Funds
Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Sewer…………………………………………………………4.00 - 5.00 $ 570,000 $ - $ 40,000 $ 530,000
MWPAT - 94-10………………………………………………Various 132,797 - 15,995 116,802
MWPAT CW-01-40…………………………………………2.00 - 5.50 1,577,990 - 78,285 1,499,705
Sewer…………………………………………………………2.25 - 5.00 960,000 - 60,000 900,000
MWPAT Sewer 98-143………………………………………4.50 - 5.25 717,304 - 46,163 671,141
MWPAT Sewer 98-144………………………………………4.50 - 5.25 160,842 - 9,993 150,849
MWPAT Sewer 98-145………………………………………4.50 - 5.25 178,104 - 10,725 167,379
MWPAT CW-02-50-A………………………………………Various 4,840,739 - 276,158 4,564,581
Sewer department…………………………………………. 3.75 - 4.00 40,000 - 10,000 30,000
MWPAT CW-02-50…………………………………………Various 3,876,814 - 141,610 3,735,204
MWPAT CW-05-21…………………………………………2.414 29,459,250 - 625,588 28,833,662
Stormwater planning…………………………………………3.75 - 4.00 30,000 - 10,000 20,000
Cleaning equipment…………………………………………3.00 - 5.00 165,000 - 45,000 120,000
Sewer construction………………………………………… 3.00 - 5.00 250,000 - 15,000 235,000
Sewer…………………………………………………………3.00 - 5.00 870,000 - 45,000 825,000
Waste Water Treatment Facility……………………………3.00 - 5.00 398,013 - 147,213 250,800
Sewer departmental equipment……………………………3.00 - 5.00 150,000 - 30,000 120,000
Sewer…………………………………………………………3.00 - 5.00 1,435,075 - 75,075 1,360,000
MWPAT CW 04-20…………………………………………2.00 3,837,370 - 712,052 3,125,318
Airport land acquisition………………………………………4.00 - 4.25 285,000 - 95,000 190,000
Airport…………………………………………………………2.25 - 5.00 230,000 - 40,000 190,000
Airport deparrtment equipment……………………………2.50 - 3.00 60,000 - 30,000 30,000
Airport improvement…………………………………………2.50 - 4.00 1,165,000 - 195,000 970,000
Airport improvement…………………………………………3.75 - 5.00 170,000 - 25,000 145,000
Airport equipment……………………………………………3.75 - 4.00 150,000 - 50,000 100,000
Airport equipment……………………………………………3.00 - 5.00 440,812 - 115,812 325,000
Airport improvements and protection………………………3.00 - 5.00 676,500 - 76,500 600,000
Airport equipment……………………………………………3.00 - 5.00 230,000 - 60,000 170,000
Airport equipment refurbishment………………………… 3.00 - 5.00 175,000 - 45,000 130,000
Water projects……………………………………………… 4.00 - 5.00 745,000 - 60,000 685,000
Water meters…………………………………………………4.00 - 4.25 450,000 - 150,000 300,000
Current refunding of December 1991 water………………2.25 - 5.00 150,000 - 150,000 -
Water…………………………………………………………2.50 - 4.13 425,000 - 25,000 400,000
Water…………………………………………………………2.50 - 4.13 425,000 - 25,000 400,000
Land acquisition………………………………………………2.50 - 4.13 2,550,000 - 150,000 2,400,000
Water…………………………………………………………3.75 - 5.00 2,795,000 - 110,000 2,685,000
Water…………………………………………………………3.75 - 5.00 625,000 - 65,000 560,000
Water…………………………………………………………3.75 - 5.00 470,000 - 15,000 455,000
Garage and maintenance facility………………………… 3.75 - 5.00 840,000 - 30,000 810,000
Rehab and administration building…………………………3.00 - 5.00 750,000 - 40,000 710,000
Source well and pump………………………………………3.00 - 5.00 1,300,000 - 65,000 1,235,000
Water storage tank………………………………………… 3.00 - 5.00 5,000,000 - 250,000 4,750,000
Water mains…………………………………………………3.00 - 5.00 1,250,000 - 65,000 1,185,000
Water system distribution improvements…………………3.00 - 5.00 1,000,000 - 50,000 950,000
Water mains…….……………………………………………3.00 - 5.00 100,000 - 5,000 95,000
Water tank……………………………………………………3.00 - 5.00 - 2,815,000 - 2,815,000
Water meter……………………………………………3.75 - 5.00 1,585,000 - 170,000 1,415,000
Water…………………………………………………………3.75 - 5.00 80,000 - 10,000 70,000
Water tank……………………………………………………3.00 - 5.00 - 3,900,000 - 3,900,000
Water tank……………………………………………………3.00 - 5.00 - 2,473,000 - 2,473,000
Solid waste facility……………………………………………2.50 - 4.13 85,000 - 5,000 80,000
Landfill cell……………………………………………………3.00 - 5.00 650,000 - 35,000 615,000
Material recovery facility……………………………………3.00 - 5.00 350,000 - 70,000 280,000
Total Enterprise Bonds Payable………………………… $ 74,856,610 $ 9,188,000 $ 4,671,169 $ 79,373,441
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 52 Basic Financial Statements
Debt service requirements for principal and interest for enterprise fund bonds and notes payable in future fiscal
years are as follows:
Fiscal Year Principal Interest Total
2010………………$ 4,254,726 $ 2,704,813 $ 6,959,539
2011……………… 4,284,593 2,538,564 6,823,157
2012……………… 4,019,193 2,391,910 6,411,103
2013……………… 3,846,666 2,252,849 6,099,515
2014……………… 3,795,782 2,099,149 5,894,931
2015……………… 3,649,668 1,944,555 5,594,223
2016……………… 3,713,225 1,805,826 5,519,051
2017……………… 3,429,324 1,678,665 5,107,989
2018……………… 3,390,019 1,564,502 4,954,521
2019……………… 3,450,615 1,452,134 4,902,749
2020……………… 3,519,818 1,309,731 4,829,549
2021……………… 3,632,114 1,182,163 4,814,277
2022……………… 3,476,636 1,056,189 4,532,825
2023……………… 3,569,282 926,209 4,495,491
2024……………… 3,521,744 795,908 4,317,652
2025……………… 3,408,579 668,206 4,076,785
2026……………… 2,731,310 558,881 3,290,191
2027……………… 2,470,348 471,540 2,941,888
2028……………… 2,281,242 391,390 2,672,632
2029……………… 1,744,262 312,285 2,056,547
2030……………… 1,126,122 256,396 1,382,518
2031……………… 1,153,638 228,880 1,382,518
2032……………… 1,181,827 200,691 1,382,518
2033……………… 1,210,705 171,813 1,382,518
2034……………… 1,240,289 142,230 1,382,519
2035……………… 1,270,595 111,924 1,382,519
2036……………… 1,301,642 80,877 1,382,519
2037……………… 1,333,447 49,071 1,382,518
2038……………… 1,366,030 16,488 1,382,518
Total………………$ 79,373,441 $ 29,363,839 $ 108,737,280
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 $2,367,761 and interest costs of $3,235,231. Thus, net MWPAT loan
repayments, including interest, are scheduled to be $57,622,245. The principal subsidies are guaranteed and
therefore a $2,367,761 intergovernmental receivable has been reported in the enterprise fund financial
statements. 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 2009 principal and interest subsidies
totaled approximately $101,000 and $410,000, respectively.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 53 Basic Financial Statements
Bonds and Notes Payable Schedule – Land Bank Component Unit
Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Land Bank Bonds and Notes Payable……………………6.063 $ 6,317,390 $ 3,000,000 $ 4,617,390 $ 4,700,000
Land Bank Bonds and Notes Payable……………………4.00 - 5.50 24,336,755 13,175,000 9,476,356 28,035,399
Total Land Bank Component Unit Bonds Payable……… $ 30,654,145 $ 16,175,000 $ 14,093,746 $ 32,735,399
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
2010………………$ 3,987,782 $ 1,017,953 $ 5,005,735
2011……………… 2,257,782 938,962 3,196,744
2012……………… 2,317,782 884,359 3,202,141
2013……………… 2,372,782 824,988 3,197,770
2014……………… 1,672,782 745,249 2,418,031
2015-2019……… 9,283,090 2,840,361 12,123,451
2020-2024……… 6,603,909 1,390,420 7,994,329
2025-2029……… 4,239,490 355,271 4,594,761
Total………………$ 32,735,399 $ 8,997,563 $ 41,732,962
The Land Bank’s notes payable are with various entities and bear interest at 6.063%. The notes payable balance
is amortized over periods of one to sixteen years. Bonds payable is comprised of the 1998 Series E Refunding
Bonds dated July 15, 1998, bear interest at rates ranging from 4.25% to 5.25% and mature serially from July 1,
2001 through July 1, 2019. The 2008 Series A Bonds dated December 4, 2007 bear interest at rates ranging
from 4% to 5.5% and mature serially from December 1, 2008 through December 1, 2027. 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.
On March 13, 2009, the Land Bank issued $13,175,000 in 2009 Series A Bonds with an average interest rate of
2.95%, maturing serially from December 1, 2009 through December 1, 2027, to advance refund $8,420,000 of
outstanding 1998 Series E refunding bonds with an interest rate ranging from 4.5% to 5.25%. The advanced
refunding resulted in an economic gain (difference between the present value of the old and new debt service
payments) of approximately $1.14 million.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 54 Basic Financial Statements
The Town is subject to various debt limits by statute and may issue additional general obligation debt under the
normal debt limit.
At June 30, 2009, the Town had the following authorized and unissued debt:
General Government
Purpose Amount
Bikepaths……………………………………………………$ 599,250
Public Safety Facility……………………………... ………7,300,000
Sewer………………………………………………………451,976
Total General Government………………………………$8,351,226
Enterprise
Purpose Amount
Sewer………………………………………………………$ 35,307,259
Solid Waste…………………………………………………1,683,000
Nantucket Memorial Airport………………………………22,718,600
Wannacomet Water Company………………………… 250,000
Total Enterprise……………….……………………………$59,958,859
Land Bank Component Unit
Purpose Amount
Land Bank …………………………………………………$1,118,379
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 55 Basic Financial Statements
Changes in Long-term Liabilities
During the fiscal year ended June 30, 2009, the following changes occurred in long-term liabilities:
Balance at Balance at
June 30, June 30, Current
2008 Additions Reductions 2009 Portion
GOVERNMENTAL ACTIVITIES:
Long-Term Bonds and Notes………… $ 71,673,170 $ 5,990,490 $ (6,338,863) $ 71,324,797 $ 6,584,812
Compensated Absences……………… 1,281,344 452,746 (256,269) 1,477,821 295,564
Workers' Compensation………………… 94,336 93,176 (94,366) 93,146 93,146
Other Post-employment Benefits……… - 9,685,253 (2,284,079) 7,401,174 -
Total Governmental Funds…………… $ 73,048,850 $ 16,221,665 $ (8,973,577) $ 80,296,938 $ 6,973,522
BUSINESS-TYPE ACTIVITIES:
Long-Term Bonds and Notes………… $ 74,856,610 $ 9,188,000 $ (4,671,169) $ 79,373,441 $ 4,254,726
Compensated Absences……………… 409,657 198,684 (90,915) 517,426 103,486
Other Post-employment Benefits……… - 952,534 (224,408) 728,126 -
Landfill Closure………………………… - 2,428,000 - 2,428,000 -
Total Business-type Funds…………… $ 75,266,267 $ 12,767,218 $ (4,986,492) $ 83,046,993 $ 4,358,212
LAND BANK COMPONENT UNIT:
Long-Term Bonds and Notes………… $ 30,654,145 $ 16,175,000 $ (14,093,746) $ 32,735,399 $ 3,975,000
Other Post-employment Benefits……… - 456,574 (107,674) 348,900 -
COUNTY COMPONENT UNIT:
Other Post-employment Benefits……… - 106,912 (25,213) 81,699 -
Total Component Unit Funds………… $ 30,654,145 $ 16,738,486 $ (14,226,633) $ 33,165,998 $ 3,975,000
Total………………………………………$ 178,969,262 $ 45,727,369 $ (28,186,702) $ 196,509,929 $ 15,306,734
The governmental activities long-term liabilities are generally liquidated by the general fund.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 56 Basic Financial Statements
NOTE 8 – 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 history. At June 30, 2009, the
amount of the liability for health insurance claims totaled $721,784. This liability is the best estimate
based on available information. Changes in the reported liability since July 1, 2007, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal
Fiscal Year Estimate Payments Year-End
Fiscal Year 2008…………$ 672,278 $ 8,198,903 $ (8,160,762) $ 710,419
Fiscal Year 2009………… 710,419 9,102,460 (9,091,095) 721,784
(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 trust fund for workers compensation. Annual appropriations are made to add to
the trust fund. The estimated future workers’ compensation liability is based on history and injury type.
At June 30, 2009, the amount of the liability for workers’ compensation claims totaled $93,146. This
liability is the Town’s best estimate based on available information. Changes in the reported liability since
July 1, 2007, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal
Fiscal Year Estimate Payments Year-End
Fiscal Year 2008………..$ 144,674 $ 312,975 $ (363,313) $ 94,336
Fiscal Year 2009……….. 94,336 102,296 (103,486) 93,146
NOTE 9 – 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
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 57 Basic Financial Statements
by the Teachers Retirement Board are the legal responsibility of the Commonwealth. The amount of these on-
behalf payments totaled approximately $1,802,000 for the fiscal year ended June 30, 2009, 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 increase 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, 2007, 2008 and 2009 totaled $3,058,753, $3,346,353, and $3,643,915 respectively, which equaled its
required contributions for each fiscal year. The County’s contribution to the System for the fiscal years ended
June 30, 2007, 2008 and 2009 were $128,612, $138,012 and $145,083 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
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 10 – POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS
Fiscal year 2010 is the initial year that the Town has implemented GASB Statement 45, Accounting and Financial
Reporting by Employers for Post-Employment Benefits Other Than Pensions (GASB 45). As allowed by GASB
45, the Town has established the net Other Post-Employment Benefits (OPEB) obligation at zero at the beginning
of the transition year and has applied the measurement and recognition requirements of GASB 45 on a
prospective basis plan.
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
2009, the Town contributed $2,534,000 to the plan, and member contributions totaled $506,800.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 58 Basic Financial Statements
Annual OPEB Cost and Net OPEB Obligation – The Town’s annual other post-employment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially
determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The components of the Town’s
annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town’s net OPEB
obligation are summarized in the following table:
Normal cost………………………………………………………$ 2,551,000
Amortization of unfunded actuarial accrued liability………… 8,194,000
Annual OPEB cost (expense)……………………………… 10,745,000
Contributions made……………………………………………… (2,534,000)
Increase in net OPEB obligation……………………………… 8,211,000
Net OPEB obligation - beginning of year……………………… -
Net OPEB obligation - end of year…………………………… $ 8,211,000
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2009 was as follows:
Percentage of
Fiscal Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/2009 $ 10,745,000 24% $ 8,211,000
Funded Status and Funding Progress – The funded status of the Plan as of the most recent actuarial valuation
date, June 30, 2007, is as follows:
Actuarial
Actuarial Accrued Unfunded
Actuarial Value of Liability (AAL) AAL Funded
Valuation Assets Projected Unit Credit (UAAL) Ratio
Date (A) (B) (B-A) (A/B)
7/1/2007 $ - $ 104,980,000 $ 104,980,000 0%
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.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 59 Basic Financial Statements
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 June 30, 2007, actuarial valuation, actuarial liabilities were determined using the projected unit credit cost
method. The actuarial assumptions included a 4.00% 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, 2009 is 29 years.
NOTE 11 – 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 landfill operates under an Administrative Consent Order (ACO) with the Department of
Environmental Protection. The ACO was amended in fiscal 2009 to allow for landfill mining over a five year
period. Landfill mining will reduce the footprint of the unlined area that will eventually be capped and closed. The
landfill maintains three cells with closure dates currently estimated to be fiscal 2013, 2014 and 2026. The Town
has reflected a $2,428,000 closure liability at June 30, 2009, 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.
Actual costs may be higher due to inflation, changes in technology, or changes in regulations.
NOTE 12 – COMMITMENTS
Construction Contracts:
The Town has a contract with Carlin Contracting for the Surfside Waste Water Treatment Facility upgrade and
expansion. At year end, the open contract totaled approximately $750,000.
The Town has a contract with Skanska USA Building, Inc. for construction of the new airport terminal. At year
end, the open contract totaled approximately $2,350,000.
The Town has various contracts with Earth Tech that include air terminal design and expansion, wastewater and
drainage infrastructure evaluation and mapping, upgrades to and expansion of the Surfside Waste Water
Treatment Facility. At year end, open contracts totaled approximately $2,650,000.
The Town has contracts with C. C. Construction for sewer pipe and stormwater drainage construction. At year
end, open contracts totaled approximately $550,000.
The Town has contracts with Edwards & Kelcey, Inc. for airport engineering projects, and terminal design. At
year end, open contracts totaled approximately $55,043,000.
The Town has contracts with CB & I Inc. for tow storage tanks located in Sconset storage tank and North Pasture
tank. At year end, the open contracts totaled approximately $7,200,000.
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 60 Basic Financial Statements
The Town has a contract the Lawrence Lynch for Backus Lane Playing Fields. At year end, the open contract
totaled approximately $400,000.
NOTE 13 – 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, 2009, 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, 2009,
cannot be ascertained, management believes any resulting liability should not materially affect the financial
position at June 30, 2009.
NOTE 14 – SUBSEQUENT EVENT
In accordance with Chapter 61 of the acts of 2009, An Act Transferring County Sheriffs to the Commonwealth, as
of January 1, 2010, the office of the Nantucket County Sheriff will be transferred to the Commonwealth. With this
transfer, all functions, duties and responsibilities of the Sheriff’s office will be transferred to the Commonwealth,
and the Sheriff will become an employee of the Commonwealth. As a result, all valid liabilities and debts of the
Sheriff’s office, which are in force on the effective date of the act, will become obligations of the Commonwealth
as of that date. Additionally, all assets of the Sheriff’s Office will be transferred to the Commonwealth.
NOTE 15 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
During fiscal year 2009, the Town has implemented the following GASB pronouncements:
The GASB issued Statement #45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other Than Pensions, which is required to be implemented in Fiscal 2010. This pronouncement required
additional disclosure and it impacted the basic financial statements
The GASB issued Statement #55, The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments. This standard did not impact the basic financial statements.
The GASB issued Statement #56, Codification of Accounting and Reporting Guidance Contained in the AICPA
Statements on Auditing Standards. The standards in this statement incorporate certain accounting and financial
reporting guidance included in the Statements on Auditing Standards of the AICPA into the state and local
governmental accounting and financial reporting standards. This pronouncement did not impact the basic
financial statements.
Future Implementation of GASB Pronouncements
The GASB issued Statement #54, Fund Balance Reporting and Governmental Fund Type Definitions, which is
required to be implemented in fiscal year 2011. The implementation of this GASB will impact the Town’s financial
statements, as it changes fund balance components into Nonspendable; Restricted; Committed; Assigned; and
Unassigned.
Town of Nantucket, Massachusetts 61 Required Supplementary Information
Required Supplementary Information
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……………………………………………$- $ 57,755,914 $ 57,755,914 $ 57,755,914
Tax liens………………………………………………………… - - - -
Motor vehicle and other excise taxes………………………… - 2,022,000 2,022,000 2,022,000
Hotel/motel tax…………………………………………………… - 1,280,000 1,280,000 1,280,000
Charges for services…………………………………………… - 4,737,887 4,737,887 4,737,887
Penalties and interest on taxes………………………………… - 410,000 410,000 410,000
Payments in lieu of taxes……………………………………… - 3,000 3,000 3,000
Licenses and permits…………………………………………… - 772,000 772,000 772,000
Fines and forfeitures…………………………………………… - 270,000 270,000 270,000
Intergovernmental……………………………………………… - 1,874,055 1,874,055 1,722,813
Departmental and other………………………………………… - 190,000 190,000 190,000
Investment income……………………………………………… - 550,000 550,000 550,000
Miscellaneous…………………………………………………… - 640,000 640,000 640,000
TOTAL REVENUES………………………………………… - 70,504,856 70,504,856 70,353,614
EXPENDITURES:
Current:
General government………………………………………… 1,201,397 5,779,164 6,980,561 6,510,078
Public safety………………………………………………… 327,117 8,883,550 9,210,667 9,073,193
Education…………………………………………………… 98,401 22,124,000 22,222,401 21,952,909
Public works………………………………………………… 319,588 3,452,600 3,772,188 3,211,537
Human services……………………………………………… 189,900 5,502,900 5,692,800 6,186,290
Culture and recreation……………………………………… 5,750 1,604,250 1,610,000 1,774,687
Employee benefits…………………………………………… 370 9,243,000 9,243,370 6,633,165
State and county charges……………………………………… - 4,093,976 4,093,976 4,095,676
Debt service:
Principal……………………………………………………… - 6,401,600 6,401,600 6,347,398
Interest………………………………………………………… - 2,849,300 2,849,300 2,973,502
TOTAL EXPENDITURES…………………………………… 2,142,523 69,934,340 72,076,863 68,758,435
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER)
EXPENDITURES………………………………………………… (2,142,523) 570,516 (1,572,007) 1,595,179
OTHER FINANCING SOURCES (USES):
Transfers in……………………………………………………… - 610,000 610,000 610,000
Transfers out…………………………………………………… - (3,736,000) (3,736,000) (6,227,946)
TOTAL OTHER FINANCING SOURCES (USES)……… - (3,126,000) (3,126,000) (5,617,946)
NET CHANGE IN FUND BALANCE……………………………… (2,142,523) (2,555,484) (4,698,007) (4,022,767)
BUDGETARY FUND BALANCE, Beginning of year…………… 10,050,100 10,050,100 10,050,100 10,050,100
BUDGETARY FUND BALANCE, End of year……………………$ 7,907,577 $ 7,494,616 $ 5,352,093 $ 6,027,333
See notes to required supplementary information.
Budgeted Amounts
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2009
Town of Nantucket, Massachusetts 62 Required Supplementary Information
Actual Amounts Variance
Budgetary Carried Forward To Final
Amounts To Next Year Budget
$ 56,295,800 $ - $ (1,460,114)
227,632 - 227,632
2,210,996 - 188,996
1,282,435 - 2,435
4,771,647 - 33,760
469,719 - 59,719
7,296 - 4,296
919,644 - 147,644
240,648 - (29,352)
2,252,249 - 529,436
232,970 - 42,970
205,782 - (344,218)
864,416 - 224,416
69,981,234 - (372,380)
4,694,010 1,279,311 536,757
8,437,196 392,809 243,188
21,305,657 572,910 74,342
2,405,712 419,567 386,258
5,882,311 209,017 94,962
1,720,754 15,384 38,549
6,457,047 17,105 159,013
4,093,372 - 2,304
6,338,863 - 8,535
2,954,975 - 18,527
64,289,897 2,906,103 1,562,435
5,691,337 (2,906,103) 1,190,055
610,000 - -
(6,227,946) - -
(5,617,946) - -
73,391 (2,906,103) 1,190,055
10,050,100 - -
$ 10,123,491 $ (2,906,103) $ 1,190,055
Town of Nantucket, Massachusetts 63 Required Supplementary Information
Town of Nantucket, Massachusetts 64 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)
1/1/1993 $ 97,194,645 $ 226,430,792 $ 129,236,147 42.9% $ 97,074,725 133.1%
1/1/1996 157,044,089 276,107,221 119,063,132 56.9% 108,456,079 109.8%
1/1/1998 235,247,660 404,215,695 168,968,035 58.2% 121,161,677 139.5%
1/1/2000 300,396,700 462,462,500 162,065,800 65.0% 152,293,100 106.4%
1/1/2002 362,911,896 553,531,966 190,620,070 65.6% 173,610,557 109.8%
1/1/2004 378,317,300 647,655,411 269,338,111 58.4% 190,614,004 141.3%
1/2/2006 465,637,984 765,747,723 300,109,739 60.8% 215,474,180 139.3%
1/1/2007 517,396,087 825,863,068 308,466,981 62.6% 226,391,633 136.3%
The Town's share of the UAAL, as of January 1, 2007, is approximately 8.9%.
See notes to required supplementary information.
Barnstable County Contributory Retirement System
Schedule of Funding Progress
Town of Nantucket, Massachusetts 65 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
2005 $ 27,846,430 $ 27,846,430 100% $ 2,629,487 9.44%
2006 31,044,132 31,044,132 100% 2,761,460 8.90%
2007 34,360,912 34,360,912 100% 3,346,353 9.74%
2008 39,899,322 39,899,322 100% 3,643,915 9.13%
(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
2005 $ 27,846,430 $ 27,846,430 100% $ 112,420 0.40%
2006 31,044,132 31,044,132 100% 128,612 0.41%
2007 34,360,912 34,360,912 100% 138,012 0.40%
2008 39,899,322 39,899,322 100% 145,083 0.36%
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 66 Required Supplementary Information
Town of Nantucket, Massachusetts 67 Required Supplementary Information
Other Post-Employment 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 Other Post-employment Benefit Plan 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 Post-Employment Benefit Schedules
SCHEDULE OF FUNDING PROGRESS AND EMPLOYER CONTRIBUTIONS
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)
7/1/2007 $ - $ 104,980,000 $ 104,980,000 0% $ N/A N/A
Annual Actual
Year Required Contributions Percentage
Ended Contribution Made Contributed
6/30/2009 $ 10,745,000 $ 2,534,000 24%
The Town implemented GASB Statement No. 45 for the fiscal year ended June 30, 2009.
Information for prior years is not available.
See notes to required supplementary information.
OTHER POST-EMPLOYMENT BENEFIT PLAN
JUNE 30, 2009
Schedule of Funding Progress
Scheduule of Employer Contributions
Town of Nantucket, Massachusetts 68 Required Supplementary Information
ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial Methods:
Valuation date………………………………………… July 1, 2007
Actuarial cost method………………………………… Projected Unit Credit Cost Method
Amortization method………………………………… Amortization payments increasing at 4.50%
Remaining amortization period……………………… 30 years as of July 1, 2008, closed
Actuarial Assumptions:
Investment rate of return…………………………… 4.00%, pay-as-you-go scenario
Medical/drug cost trend rate………………………… 5-9%
Plan Membership:
Current retirees, beneficiaries, and dependents… 196
Current active members……………………………… 580
Total……………………………………………………776
See notes to required supplementary information.
OTHER POST-EMPLOYMENT BENEFIT PLAN
FISCAL YEAR ENDED JUNE 30, 2009
Town of Nantucket, Massachusetts 69 Required Supplementary Information
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 70 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 2009 budget includes $73,670,340 in appropriations and other amounts to be raised and
$2,142,523 in amounts carried forward from the previous fiscal year. During fiscal year 2009, the Town’s budget
decreased by $826,483 mainly due to a combination of $1.4 million in budget reductions and a vote to transfer
available funds of $725,841 to the Solid Waste Enterprise Fund.
The Town Accountant’s Office has the responsibility to ensure that budgetary control is maintained. Budgetary
control is exercised through the accounting system.
2. Budgetary - GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of accounting
(established by the Commonwealth) is followed, which differs from the GAAP basis of accounting. A
reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal year ended June 30,
2009, is presented below:
Net change in fund balance - budgetary basis…………………$ 75,801
Basis of accounting differences:
Recognition of revenue based on available criteria………… 378,724
Accrued expenditures…………………………………………… (780,659)
Accrued payroll…………………….…………………………… 500,538
Recognition of revenue for on-behalf payments……………… 1,802,000
Recognition of expenditures for on-behalf payments………… (1,802,000)
Net change in fund balance - GAAP basis………………………$ 174,404
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2009
Town of Nantucket, Massachusetts 71 Required Supplementary Information
3. Appropriation Deficits
During fiscal year 2009, 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, 2009
Town of Nantucket, Massachusetts 72 Required Supplementary Information
Actuarial Methods and Assumptions:
Valuation Date…………………………………………………January 1, 2007
Actuarial Cost Method…………………………………………Entry Age Normal Cost Method
Amortization Method…………………………………………Increasing at 4.50% per year
Incentive, 21 years from July 1, 2007 for 2002
and 2003 Early Retirement Incentives and
remaining unfunded liability
Asset Valuation Method………………………………………5-year smoothing of investment returns greater
(less) than expected
Actuarial Assumptions:
Investment rate of return……………………………………8.25%
Projected salary increases…………………………………5.00%
Cost of living adjustments………………………………… 3.0% for the first $12,000 of retirement income
Plan Membership:
Retired participants and beneficiaries receiving benefits……………………………………… 2,267
Terminated participants entitled to a return of their employee contributions………………… 670
Terminated participants with a vested right to a deferred or immediate benefit……………… 117
Active participants…………………………………………………………………………………… 5,314
Total…………………………………………………………………………………………………… 8,368
Remaining Amortization Period………………………………1 year from July 1, 2007 for 1992 Early
NOTE C – OTHER POST-EMPLOYMENT 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 post-employment 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. Since this is the Town’s initial
year of implementation of GASB Statement 45, information for prior years is not available.
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 73 Other Supplementary Information
Nantucket County Component Unit
Combining Statements
Town of Nantucket, Massachusetts 74 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.
Sheriff’s Department – accounts for the 75% of deeds excise tax revenue that is required to be
designated for the County Sheriff’s 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
General County Sheriff's Registry Other Special Nantucket
ASSETS Fund Administration Department of Deeds Revenue Funds County
Cash and cash equivalents…………………………………$ 1,291,767 $ 220 $ 1,172,122 $ 425,607 $ 680,679 $ 3,570,395
Receivables, net of uncollectibles:
Departmental and other………………………………… 45,507 - - - - 45,507
Intergovernmental……………………………………… - - - - 1,580 1,580
Due from other funds……………………………………… 141,777 105,609 220 398,323 - 645,929
TOTAL ASSETS…………………………………………… $ 1,479,051 $ 105,829 $ 1,172,342 $ 823,930 $ 682,259 $ 4,263,411
LIABILITIES AND FUND BALANCES
LIABILITIES:
Warrants payable…………………………………………$ 19,215 $ - $ 40,000 $ 33,160 $ - $ 92,375
Accrued payroll…………………………………………… 8,742 - 540 - - 9,282
Payroll withholdings……………………………………… 383,604 - - - - 383,604
Other liabilities…………………………………………… 34,918 - - - 2,419 37,337
Due to other funds……………………………………… 564,266 - 80,215 - 1,448 645,929
TOTAL LIABILITIES………………………………………… 1,010,745 - 120,755 33,160 3,867 1,168,527
FUND BALANCES:
Reserved for:
Encumbrances and continuing appropriations…… 69,133 - - - 6,607 75,740
Unreserved:
Undesignated, reported in:
General fund……………………………………… 399,173 - - - - 399,173
Special revenue funds…………………………… - 105,829 1,051,587 790,770 671,785 2,619,971
TOTAL FUND BALANCES………………………………… 468,306 105,829 1,051,587 790,770 678,392 3,094,884
TOTAL LIABILITIES AND FUND BALANCES……………$ 1,479,051 $ 105,829 $ 1,172,342 $ 823,930 $ 682,259 $ 4,263,411
Deeds Excise Special Revenue Fund
NANTUCKET COUNTY
COMBINING BALANCE SHEET
JUNE 30, 2009
Town of Nantucket, Massachusetts 75 Other Supplementary Information
Total
General County Sheriff's Registry Other Special Nantucket
Fund Administration Department of Deeds Revenue Funds County
REVENUES:
Intergovernmental………………………………………$ 100,000 $ - $ - $ - $ - $ 100,000
Departmental and other……………………………… 327,871 139,590 697,955 93,061 159,408 1,417,885
Investment income…………………………………… (2,235) 185 23,657 2,645 2,628 26,880
TOTAL REVENUES…………………………… 425,636 139,775 721,612 95,706 162,036 1,544,765
EXPENDITURES:
Current:
County administration……………………………… 300,223 - - - - 300,223
Registry of Deeds………………………………… 281,582 - - 17,231 4,404 303,217
Sheriff's Department……………………………… 703,125 - 194,286 - - 897,411
Special Projects…………………………………… - - - - 65,910 65,910
General government……………………………… 375 - - - - 375
Public safety………………………………………… 12,835 - - - 12,835
Pension benefits…………………………………… - - 40,000 33,159 - 73,159
Claims and judgements…………………………… 237,533 - - - - 237,533
TOTAL EXPENDITURES……………………… 1,535,673 - 234,286 50,390 70,314 1,890,663
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES………………… (1,110,037) 139,775 487,326 45,316 91,722 (345,898)
OTHER FINANCING SOURCES (USES):
Transfers in…………………………………………… 1,183,799 - - - - 1,183,799
Transfers out…………………………………………… - (443,935) (646,756) (93,108) - (1,183,799)
TOTAL OTHER FINANCING SOURCES (US 1,183,799 (443,935) (646,756) (93,108) - -
NET CHANGE IN FUND BALANCES…………………… 73,762 (304,160) (159,430) (47,792) 91,722 (345,898)
FUND BALANCES AT BEGINNING OF YEAR………… 394,544 409,989 1,211,017 838,562 586,670 3,440,782
FUND BALANCES AT END OF YEAR…………………$ 468,306 $ 105,829 $ 1,051,587 $ 790,770 $ 678,392 $ 3,094,884
FISCAL YEAR ENDED JUNE 30, 2009
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NANTUCKET COUNTY
Deeds Excise Special Revenue Fund
Town of Nantucket Massachusetts 76 Other Supplementary Information