HomeMy WebLinkAboutNantucket CAFR 2016 - FINALTOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year
July 1, 2015 – June 30, 2016
On the cover: The mural at Gardiner’s Corner, more commonly referred to as the Compass Rose was
originally painted in the 1930s. H. Marshall Gardiner, who owned the camera store on which the mural
was painted, commissioned an artist to create the mural which was designed to commemorate locations
important to Nantucket; the island’s whaling history, and his family.
The mural has been renovated several times since the 1930’s including a renovation to return it to one of
its original forms about 10 years ago and more recently during 2016. Over the years the mural has
become somewhat of a Nantucket icon and public art form as numerous tourists often stop and pose in
front of it.
Above: The Daffodil Festival held in mid-spring is an enormously popular event on the Island. It
typically marks the beginning of the season when visitors begin to return to the Island after the
winter. The 2016 event, held from April 29 to May 1, was the 42nd annual installment of the
Festival.
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2016
C. Elizabeth Gibson, Town Manager
Prepared by the Finance Department
Brian E. Turbitt, Director of Municipal Finance
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2016
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ......................................................................................................................... 1-10
Certificate of Achievement For Excellence in Financial Reporting…………………………….......14
Organizational Chart .......................................................................................................................... 15
Principal Town Officials .................................................................................................................... 16
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................................ 17-19
Management’s Discussion and Analysis ........................................................................................ 21-33
Basic Financial Statements:
Statement of Net Position ............................................................................................................ 36
Statement of Activities ................................................................................................................. 37
Balance Sheet – Governmental Funds ......................................................................................... 38
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position .............................................................................................. 39
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................................................... 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ....................................... 41
Statement of Net Position – Proprietary Funds ............................................................................ 42
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds................ 43
Statement of Cash Flows – Proprietary Funds ............................................................................. 44
Statement of Fiduciary Net Position ............................................................................................ 45
Statement of Changes in Fiduciary Net Position ......................................................................... 46
Notes to Basic Financial Statements ........................................................................................ 47-88
Required Supplementary Information:
Schedule of Town’s Proportionate Share of Net Pension Liability….…………………………90Schedule of Town’s Contributions to Pension Plan……………….…………………………....90Schedule of County’s Proportionate Share of Net Pension Liability.…………………………..91
Liabbbbb…………………………………….88 Liability……………………………87Plan…………………………………………....87Pension…………………………………..89 Liability……………………………87PPlanPlan…………………………………………....87
Schedule of County’s Contributions to Pension Plan………………………………………….91Schedule of Landbank’s Proportionate Share of Net Pension Liability………………………..92Schedule of Landbank’s Contributions to Pension Plan……………………………………….92Schedule of Commonwealth’s Collective Share of Net Pension Liability – Massachusetts Teacher’s Retirement System……………………………………………..93 Schedules of Funding Progress – Other Postemployment Benefits……………………………94 Schedules of Contribution Funding – Other Postemployement Benefits………………………94 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and
Actual – General Fund.................................................................................................... 95-100
Notes to Required Supplementary Information………………………………………….....101-102
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2016
TABLE OF CONTENTS
Page(s)
Combining Statements:
Nonmajor Governmental Funds……………………………………………………………….......103-105
Combining Balance Sheet – Nonmajor Governmental Funds……………………....106-108
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ......................................................... 110-112
Internal Service Funds ........................................................................................................... 113
Combining Statement of Net Position – Internal Service Funds ..................................... 114
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ............................................................................................. 115
Combining Statement of Cash Flows – Internal Service Funds ....................................... 116
Fiduciary Funds ...................................................................................................................... 118
Statement of Changes in Assets and Liabilities – Agency Fund ..................................... 119
STATISTICAL SECTION
Narrative ..................................................................................................................................... 121
Net Position by Component – Last Ten Fiscal Years ...................................................................... 122
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 123-124
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 125
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 126
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years ............................................................................ 127
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 128
Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................ 129
Ratios of Outstanding Debt and General Obligation Debt – Last Ten Fiscal Years ....................... 130
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 131
Direct and Overlapping Governmental Activities Debt .................................................................. 132
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 133
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 134
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 135
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 136
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 137
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INTRODUCTORY SECTION
Hy-Line cruises, one of the primary steamship providers to the island, recently launched a new high-
speed catamaran. The new vessel which holds 493 passengers and cost $14 million to construct began
service shortly after labor-day and intends to make future boat travel back and forth to the island more
efficient.
Town and County of Nantucket
Board of Selectmen County Commissioners
James Kelly, Chairman
Dawn E. Hill Holdgate, Vice Chairman
Rick Atherton
Matthew Fee
Robert DeCosta
16 Broad Street
Nantucket, Massachusetts 02554
_________________
Telephone (508) 228-7255
Facimile (508) 228-7272
www.nantucket-ma.gov
_________________
C. Elizabeth Gibson
Town & County Manager
Letter of Transmittal
October 4, 2016
Honorable Board of Selectmen and Citizens of the Town of Nantucket, Massachusetts:
We are pleased to acknowledge that the Town of Nantucket has completed its third annual Comprehen-
sive Annual Financial Report (CAFR). The report, which was prepared by the Town’s Department of
Municipal Finance, is for the fiscal year ended June 30, 2016. This transmission is the continuation of
what is becoming an annual endeavor.
The Town is responsible for the accuracy, completeness and fairness of the data presented in the CAFR.
This letter of transmittal and the management’s discussion and analysis, located in the financial section
of the CAFR, provide a comprehensive financial overview of the Town and ensure that the financial and
general operations of Town government remain transparent, and therefore open for easy viewing.
The CAFR represents a complete set of financial statements prepared in conformity with generally ac-
cepted accounting principles (GAAP) in the United States of America, that are audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants. This CAFR
meets and exceeds those requirements and presents itself as an informative resource for all those interest-
ed in the financial activities of the Town.
The report is designed to be used by the elected and appointed officials of the Town and others who are
concerned with its management and progress such as bond analysts, banking institutions and rating agen-
cies as well as its citizens and taxpayers.
Since the report consists of management’s representations concerning the finances of the Town, manage-
ment assumes full responsibility for the completeness and reliability of all of the information presented.
In addition, management of the Town is responsible for establishing and maintaining an internal control
structure designed to ensure the assets of the Town are protected from loss, theft or misuse and to ensure
that adequate accounting data is compiled to allow for the preparation of financial statements in conformi-
ty with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of
Nantucket’s comprehensive framework of internal controls has been designed to provide reasonable ra-
ther than absolute assurance that the financial statements will be free from material misstatement.
Town of Nantucket, Massachusetts Page 1 of 137 Comprehensive Annual Financial Report
The Town of Nantucket’s financial statements have been audited by Roselli, Clark and Associates, a firm
of licensed certified public accountants. The goal of the independent audit is to provide reasonable assur-
ance that the financial statements of the Town are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor concluded, based upon
the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town’s financial
statements for the fiscal year ended June 30, 2016 are fairly presented in conformity with GAAP. The
independent auditor’s report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the Town is part of a broader, federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of
the financial statements, but also on the audited government’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the administra-
tion of federal awards. These reports are available in the Town’s separately issued Single Audit Reports
Pursuant to Title 2 US “Code of Federal Regulations” (CFR) Part 200, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement that analysis and should be read in conjunction with it. The
MD&A can be found immediately following the report of the independent auditors.
Profile of the Town
The Town is located on Nantucket Island and is adjacent to the islets of Tuckernuck and Muskeget. It is
situated in the Atlantic Ocean and lies approximately 25 miles south of Cape Cod. It is bound by Nantucket
Sound on the north and west, and by the Atlantic Ocean on the south and east. The Town has a total area of
304 square miles of which 45 square miles is land and 259 square miles is water. The island comprises the
County of Nantucket, the smallest county in Massachusetts by land area.
Town of Nantucket, Massachusetts Page 2 of 137 Comprehensive Annual Financial Report
Nantucket was deeded in 1641 by the English to merchants from Watertown, Massachusetts and Martha’s
Vineyard. In 1659 these merchants sold their interest in Nantucket to a group of investors led by Tristram
Coffin for 30 pounds and two beaver hats. These investors began to populate Nantucket and in the 1670s
the Nantucket whaling industry began. It was part of Dukes County, New York until 1691 when it was
transferred to the Province of Massachusetts Bay and became Nantucket County. Nantucket’s whaling
industry boomed until around the mid 1800’s when it was surpassed by New Bedford. This coupled with
the great fire of 1846 sent the Town into an economic decline from which it took the better part of a cen-
tury to recover. In the 1950’s speculative developers began buying large parts of the island and restoring
or developing them to eventually create a high-end market destination in the Northeast United States
which is what it has evolved into in the present day. In 2008 Nantucket was cited as having home values
amongst the highest in the United States, and presently, the Town’s equalized valuation (market value)
ranks fourth in Massachusetts behind Boston, Cambridge and Brookline.
Nantucket is a tourist destination and summer colony. The population of the island increases from just
over 10,000 year round to approximately 50,000 in the summer. It is approximately 90 air miles from
Boston and 170 air miles from New York City.
The island is accessible year-round
via ferry service served by the
Woods Hole, Martha’s Vineyard and
Nantucket Steamship Authority
(Steamship Authority) from the port
of Hyannis. In calendar year 2015,
the Steamship Authority transported
about 645,000 passengers, 66,000
passenger vehicles and 48,000 com-
mercial vehicles to Nantucket Island.
These all increased from 2014 by 3 –
6%.
The island is also served by Hy-line Cruises (the Hy-line),
which operates one high speed ferry year-round and until
recently, a larger, traditional ferry during peak seasons. Hy-
line had about 525,000 embarkations in calendar year 2015;
up 7.5% from 2014, and is very popular with professional
daily commuters and contractors due to the speed of the
transport and frequency of travel.
In September 2016, the Hy-Line launched a new high-
speed 1 hour catamaran with capacity for almost 500 pas-
sengers and discontinued the traditional two-hour ferry ser-
vice.
Town of Nantucket, Massachusetts Page 3 of 137 Comprehensive Annual Financial Report
The Nantucket Regional Transit Authority
("NRTA") provides seasonal fixed route shuttle
service and year- round advanced reservation
van service (“Your Island Ride”) for elders and
persons with disabilities in Nantucket. The
fixed route service operates daily mid-May
through early October with complementary
para-transit service; and a less frequent sched-
ule operates before Memorial Day and after
Labor Day. The Your Island Ride van service
operates year-round Monday through Friday.
The Town owns and operates its own municipal airport, Nantucket Memorial Airport, which provides
daily service to Boston, New York, Hyannis, Martha’s Vineyard and New Bedford, in addition to less
frequent travel to Philadelphia and Washington D.C. The airport is serviced by 5 airlines, some of which
are seasonal. Governed by the Nantucket Airport Commission, the airport is a self-supporting enterprise
fund. It is located 3 miles southeast of the center of town and in calendar 2015 with over 155,000 en-
planements it was the second busiest airport in the Commonwealth trailing only Logan International Air-
port in Boston.
Town of Nantucket, Massachusetts Page 4 of 137 Comprehensive Annual Financial Report
The Town provides a full range of other traditional
municipal services including police and fire protec-
tion, education, maintenance of streets, a sanitary
landfill with materials recovery and composting fa-
cilities, water and sewer services, parks and recrea-
tional facilities and a town-owned pier. In addition,
Nantucket also owns and operates Our Island Home,
a nursing facility that provides long-term skilled
nursing, short-term rehabilitation, palliative care
and respite care for elderly island residents. It is a
45-bed smoke-free facility dually licensed in
Medicaid and Medicare.
Nantucket prides itself on the quality of its school system. There are currently three Town administered
schools in Nantucket:
1. Nantucket High School (grades 9 – 12)
2. Cyrus Pierce Middle School (grades 6 – 8)
3. Nantucket Elementary School (grades PK – 5)
In February 2016, the Town broke ground on a new facility (the Nantucket Intermediate School). The
intention of this facility is to service children in the 3rd to 5th grades with a realignment of the above cate-
gories effective with the fiscal 2018 school year. The Intermediate School is part of a planned $50 mil-
lion improvement to the entire District which also includes the addition of classrooms to certain of the
existing schools. It will enroll approximately 400 students and alleviate the space challenges of a
growing student population.
The following is an artist rendition of the new facility:
Town of Nantucket, Massachusetts Page 5 of 137 Comprehensive Annual Financial Report
The Nantucket Public Schools are set up campus style and are all within walking distance of each other.
The new facility will be located adjacent to the existing elementary school which will be converted to pre-
k through 2. The Intermediate School is in the shaded area on the right hand side of the sketch below.
The executive branch of the public schools consists of a five-member School Committee elected to three-
year terms on a staggered basis. The School Committee is the policy setting board. The Superintendent
of Schools acts as the Chief Executive Officer responsible for enforcing the policies of the School Com-
mittee, and the School Business Manager acts as the Chief Financial Officer.
School enrollment for fiscal year 2016 is 1,570 (a 22% increase from 2006) and funding for schools is
provided via taxation and governmental revenues based on a minimum net school spending formula es-
tablished by the Massachusetts Department of Elementary and Secondary Education (ESE). The Town
currently spends almost double the minimum legal requirement on each student.
The mission of the Nantucket Public Schools, in partnership with the community, is a “commitment to
providing a challenging curriculum, skilled instruction, and a learning environment that responds to indi-
vidual student academic needs. Work is guided by research and the belief that every student is capable of
attaining high levels of educational achievement in preparation for meeting the rigorous demands of the
twenty-first century.”
The Town operates under the selectmen, town manager and open town meeting form of government. The
five elected Selectmen make policy decisions and the Town Manager is responsible for carrying out and
enforcing the policies of the Selectmen and for managing the day to day operations of the Town.
An annual operating budget is approved by Town Meeting in April. This annual budget serves as the
foundation for the Town’s financial planning and control. The budget is prepared by fund, function (e.g.
general government), department (e.g. finance) and category (e.g. Personnel Services, Purchase of Ser-
vices, Supplies, Other Charges & Expenses) allowing the department heads to allocate resources within
the department. Transfers between categories need approval from Town Meeting unless specifically ex-
empted by state statute.
Town of Nantucket, Massachusetts Page 6 of 137 Comprehensive Annual Financial Report
Factors Affecting Economic Condition
Property Taxes
The growth of the Town’s main source of revenues, property taxes, is capped by Proposition 2 ½ and can
only be overridden through a vote of Town Meeting and a ballot vote by the voters. While revenue in-
creases have been limited in recent years, fixed costs, including health insurance and pension costs, have
increased more proportionally. As a result, balancing the annual budget can be a challenge. Given its ge-
ographical location and the limitations of being an island, the Town does not have a large commercial and
industrial property tax base so it relies heavily on residential property taxes. Approximately 89% of the
Town’s property taxes are derived from residential taxes therefore new growth is essential to revenue
growth and the ability to sustain the Town’s annual costs. The following table summarizes the Town’s
building activity and new growth over the prior 5 calendar years:
Table 1
The Town’s strong growth as summarized in Table 1, has allowed the Town’s taxpayers the benefit of
reduced property taxes through a large levy capacity. In fact as a result of the strong unused levy capaci-
ty, the taxpayers benefitted from a 3% to 5% savings in each of the last 5 fiscal years.
This is summarized in Table 2 below:
Table 2
Calendar # of Residential Non-Residential Total
Year Building Permits Value Value Value
2015 966 206,697,965$ 21,942,351$ 228,640,316$
2014 924 192,783,729 20,912,023 213,695,752
2013 1,384 155,601,701 18,099,456 173,701,157
2012 1,485 147,981,125 14,540,467 162,521,592
2011 1,339 113,150,665 7,627,649 120,778,314
Total 6,098 816,215,185$ 83,121,946$ 899,337,131$
Fiscal Levy Unused
Year Limit Levy Levy Capacity Tax savings
2016 72,429,696$ 69,636,374$ 2,793,322$ 3.86%
2015 69,792,303 66,329,953 3,462,350 4.96%
2014 67,372,224 64,647,039 2,725,185 4.04%
2013 65,695,822 63,618,274 2,077,548 3.16%
2012 64,834,729 62,274,744 2,559,985 3.95%
Town of Nantucket, Massachusetts Page 7 of 137 Comprehensive Annual Financial Report
Industry
Tourism represents a significant portion of the Town’s private employment on the Island, and thus is an
important component of the Town’s economy. The management of Nantucket's tourism industry is aided
by the Town’s Visitor Services department, which is supported through revenues from the local option
Room Occupancy Tax collections. The Town re-
ceived $3.4 million, $3.0 million, $2.6 million and
$2.3 million in fiscal 2016, 2015, 2014 and 2013
respectively from this source. In addition, robust
construction over the past 7 years which is expected
to continue for at least the next 5 years has also had
a dramatic impact on these local revenues as work-
ers are often on the island for weeks at a time and
stay at guest houses and other available lodging.
Throughout the year, the Island hosts numerous
events. This has in effect lengthened the tourist sea-
son and had a positive impact on the local economy.
A number of these are annual events summarized in
the table to the right:
Wine Festival 2016 Holiday Stroll 2016
Independence Day Fireworks
Event Month
Daffodil Festival April
Wine Festival May
Book Festival June
Dance Festival June
Film Festival June
Independence Day Fireworks July
Independence Day Downtown Celebration July
Comedy Festival July
Race Week August
Boston Pops August
Cranberry Arts Fesitval October
Holiday Stroll Weekend December
Town of Nantucket, Massachusetts Page 8 of 137 Comprehensive Annual Financial Report
Economic Development
Harbor Place - The Town’s downtown center remains a vibrant hub for small retail establishments, hos-
pitality/resorts and restaurants. The Nantucket Island Chamber of Commerce, founded in 1937 and in-
corporated in 1954, has a diverse membership comprised of more than 650 businesses. The Town, includ-
ing the Nantucket Planning and Economic Development Commission and Visitor Services department,
has an on-going
relationship with
the Chamber in-
volving the Town's
economic issues.
In 2008 at the an-
nual town meeting,
the town approved
a study of an area
called Harbor
Place; previously
referred to as the
Wilkes Square Re-
development site,
which includes
National Grid,
ReMain Nantucket,
Winthrop ManagementLLP and Nantucket
Island Resorts.
To that end, the
Board of Select-
men established a
Downtown Revi-
talization Commit-
tee and charged it
with identifying goals for the Nantucket downtown area that balance economic strength with
community preservation, and encourage greater venues for social activity while recognizing the
importance of planning.
The focus of the study was to:
Attract a wide range of individuals through a multifunctional environment including: housing,
work, shopping, culture, entertainment, government, and tourist attractions.
Balance the human, social, and economic needs with the infrastructure requirements of parking,
public transportation, bike racks, road access, traffic flow, sidewalks, and water front walkways.
Attract commercial business to locate downtown by providing guidance on financing, zoning, and
preliminary site design.
Protect the unique qualities, historical significance, and feel of the Town.
Town of Nantucket, Massachusetts Page 9 of 137 Comprehensive Annual Financial Report
Incorporate attractive space for civic gatherings. The study area is approximately a 5.65-acre area
bounded by Main Street, Commercial Street, Washington Street, and New Whale Street. The site
is currently owned by multiple land owners. The site’s close proximity to downtown and its wa-
terfront location, present an extraordinary opportunity for the Town to develop its waterfront into
a mixed-use gateway that will be a common ground for year-round residents as well as seasonal
residents and visitors. The vision for the site offers strategic opportunities to resolve or clarify
long-standing infrastructure and transportation issues in Town, affords a strong vision for the
program including a hotel, residential development, retail, dining and social venues.
Recently, the land owners, who consist of National Grid, Winthrop Management LLP, ReMain Nantucket
and Nantucket Island Resorts collaborated to roll out a conceptual framework for the plan that includes 3
phases; (1) a transportation center, (2) relocation of the grocery store, and (3) a facelift of the area closest
to the waterfront with a mixed use component in the center of the new layout. The current roadways
would be realigned after the relocation/reconfiguration of the existing parking lot.
Key to the plan is the removal of the fuel tank farm behind Stop and Shop. In 2016, the Town executed a
purchase and sale agreement with Harbor Fund Corporation to relocate the fuel tank farm to an area out-
side the downtown. It is estimated that completion of the relocation will take several years but the first
major step is now underway with the purchase and sale agreement. Another major step is the transporta-
tion center which is intended to include a bus station, a multi-story paid parking garage and pedestrian
services. This is expected to accommodate the increase in activity of fast-boat traffic and make space
available for parking with the ultimate goal to attract year-round activity to the down-town area and thus
boosting the future, local economy even further. As part of the preliminary plan, the Town would ulti-
mately own the transportation facility as part of a 99 year lease.
Nantucket Cottage Hospital (NCH) – One of the largest construction projects currently underway on the
island is the new Nantucket Cottage Hospital. NCH is the only medical facility on the island providing
primary, urgent, emergency and surgical care, as well as outpatient services and appointments with medi-
cal and surgical specialists.
In recent years, the community has outgrown the 104
year old facility as studies have shown it is in need of
costly major maintenance and repairs; and despite its
affiliation with Massachusetts General Hospital MGH,
arguably one of the finest facilities in the world, it is in
danger of losing its accreditation with the Massachu-
setts Department of Public Health. In order to address
this dire need, NCH has undergone a fund-raising
campaign; and as of September 1, 2016 had raised $85
million of a planned $89 million total cost. $20 million
will be donated by MGH, with the remainder from private
benefactors; a number of them residents and property
owners on the island. No taxpayer dollars have been so-
licited as part of this project.
The new building will be roughly 106,000 square feet and
will be designed to maximize privacy, safety, and effi-
ciency in the way modern health care is delivered. The
plan also calls for improvements to the entire grounds.
Town of Nantucket, Massachusetts Page 10 of 137 Comprehensive Annual Financial Report
Old South Road Properties Richmond Great Point Development LLC (RGPD) has recently begun con-
struction of a planned mixed market rate/affordable rate 3 phase complex along Old South Road near
Nantucket Memorial Airport. The goal of RGPD is to make the best and most appropriate use of the
company’s land portfolio through the develop-
ment of a thoughtful mixed-use plan; and thus
providing a solution to the critical lack of di-
verse housing stock on the island.
Phase 1 is currently approved and under con-
struction on a 1.6 acre lot and consists of rental
apartments that include 28 market rate apart-
ment units. These are studio, one and two bed-
room options.
Phase 2 is in the proposal stage; and if ap-
proved, will sit on 14.5 acres that include 225
apartment units that include both market and
affordable rate units. These are also studio, one
and two-bedroom.
Phase 3 is also in the proposal stage and if approved will consist of 100 single family homes for 2, 3 and 4
bedroom homes which are both mixed and affordable rate housing.
Unassigned Fund Balances
One of the methods the Town uses to maintain reserves from year to year is to conservatively forecast
revenues. This allows the Town to use free cash (surplus) for reserves, capital projects or other non-
operating one-time expenses. Since the Town has a significant level of unused levy capacity as previously
discussed, the challenge of conservatively forecasting revenue is diminished and as a result, the Town has
been able to maintain and/or increase reserves from year to year.
The Town’s unassigned fund balance trend since 2010 is illustrated below:
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2010 2011 2012 2013 2014 2015 2016
Unassigned Fund Balances (Millions)
Town of Nantucket, Massachusetts Page 11 of 137 Comprehensive Annual Financial Report
Long-term Financial Planning
The Town prepares rolling five-year operating budget projections. The Town believes this will (1) pro-
vide better insight when preparing annual budgets; (2) alert the Town to any potential budget issues far
ahead of when these situations become real; and (3) allow the Town to determine when available financ-
ing for its capital needs can be provided or if a need for borrowing to finance projects is required.
The following represents the Town’s five-year revenue projections:
The Town expects that annual budget sources as forecasted will be sufficient to fund annual appropria-
tions.
Capital Improvements
The Town continues to invest aggressively in capital improvements. In the past several years the Town
has invested approximately $250 million in improving facilities and adding much needed infrastructure.
The following were key capital initiatives:
Improvement to Nantucket Memorial Airport, much of which was funded from Federal grants,
over $70 million. (approximately $11 million in 2016)
A new Public Safety (Police) building approximately $15.5 million.
Improvements to municipal water infrastructure: almost $25 million.
Improvements to Siasconset water infrastructure: almost $9 million.
Improvements to municipal sewer infrastructure: over $70 million, some of this funded through
the State subsidized, low interest loan program.
Improvements to Schools: almost $22 million. (Approximately $16 million in 2016 as part of a
planned $50 million new school)
Improvements to roads, sidewalks, curbs and catch basins: almost $10 million of which almost
half was funded through the State Chapter 90 Road Funding Program.
In addition, the Town has prepared a capital improvement plan that includes the purchase and/or con-
struction of over $300 million over the next ten years. These include major improvements to schools
($50 million), wastewater ($200 million), public safety ($17 million), Our Island Home nursing facili-
ty ($40 million) and new administrative offices ($30 million).
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certifi-
cate of Achievement for Excellence in Financial Reporting. This is a very prestigious award and in order
Fiscal Real and Personal Motor Vehicle Rooms and
Year Property Taxes Excise Meals Excise Permits State Aid Miscellaneous Total
2017 75,426,127 2,574,900 4,033,700 1,577,600 3,180,702 2,620,490 89,413,519
2018 77,261,968 2,317,400 3,803,600 1,556,600 3,180,702 2,582,765 90,703,035
2019 84,392,344 2,201,500 3,613,400 1,401,000 3,180,702 2,590,433 97,379,379
2020 90,356,213 2,113,400 3,441,100 1,242,500 3,180,702 2,593,961 102,927,876
2021 95,596,283 2,050,000 3,288,900 1,180,400 3,180,702 2,597,758 107,894,043
Town of Nantucket, Massachusetts Page 12 of 137 Comprehensive Annual Financial Report
to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted ac-
counting principles and applicable legal requirements.
The GFOA awarded this Certificate of Achievement for Excellence in Financial Reporting to the Town of
Nantucket for its comprehensive annual financial report for the fiscal year ended June 30, 2015. This was
the second year that the Town has achieved this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current compre-
hensive annual financial report will meet the Certificate of Achievement Program’s requirements, and we
are submitting it to the GFOA to determine its eligibility for this certificate.
The publication of this CAFR represents an important achievement in the ability of the Town of Nantuck-
et to provide enhanced financial information and accountability to its citizens, elected and appointed offi-
cials, and investors. The preparation of this report would not have been possible without the efficient and
dedicated services of the entire staff in the Finance Office. Special thanks also go to the certified public
accounting firm of Roselli, Clark and Associates for their advice and assistance in the preparation of this
report.
Respectfully submitted,
C. Elizabeth Gibson
Town Manager
Brian E. Turbitt
Director of Municipal Finance
Town of Nantucket, Massachusetts Page 13 of 137 Comprehensive Annual Financial Report
Certificate of
Presented to
Town of Nantucket
For its Comprehensive Annual
June 30, 2015
Executive Director/CEO
Financial Report
for the Fiscal Year Ended
Reporting
in Financial
for Excellence
Achievement
Text38:Massachusetts
Government Finance Officers Association
Town of Nantucket, Massachusetts Page 14 of 137 Comprehensive Annual Financial Report
Nantucket Voters
Elected Boards & Officials
Moderator Town Clerk School Committee
Superintendent
School Business Manager
Elementary School
Pierce
Middle
High School
Community School
Nantucket Water Commission
Siasconset Water Commission
Harbor & Shellfish Advisory
Historic District Commission
Board of Selectmen
Town Manager
Public Safety
Fire
Police
Marine
Emergency Management
Public Works & Parks
Engineering
Central Fleet Maintenance
Operations
Public Facilities
Solid Waste Management
Human Services
Our Island
Home
Senior Services
Council on
Aging
Veterans' Services
Commission on Disability
General Admin
Licenses & Permits
Human Resources
IT & GIS
Visitor Services
Energy
Office
Finance & Budget
Accounting
Assessor
Budgeting
Collector
Treasurer
Natural Resources
Conservation Commission
Endangered Species
Resource Management
Water
Quality
Planning & Land Use Services
Building
Health
HDC Staff
Planning
Zoning
Real Estate
Register of Deeds Land Bank Commission
Community Preservation Committee
Planning Board NP&EDC Nantucket Housing Authority
Town of Nantucket, Massachusetts Page 15 of 137 Comprehensive Annual Financial Report
PRINCIPAL TOWN OFFICIALS
As of June 30, 2016
Elected Officials
Board of Selectmen James Kelly, Chairman
Dawn E. Hill Holdgate, Vice Chairman
Rick Atherton
Robert DeCosta
Matthew Fee
Town Moderator
Town Clerk
Sarah Alger, Esquire
Catherine Flanagan Stover
School Committee Jennifer Iller, Chairman
Dr. Timothy Lepore, Vice Chairman
Melissa Murphy, Secretary
Pauline Proch
Zona Butler
Appointed Financial Committees
Audit Committee James Kelly, Chairman
Rick Atherton
David D. Worth
Finance Committee David D. Worth, Chairman
Stephen Maury, Vice Chairman
Clifford J. Williams
Peter A. McEachern
Henry Sanford
Joseph T. Grause, Jr.
John E. Tiffany
Principal Executive Officers
Town Manager
Superintendent of Schools
C. Elizabeth Gibson
W. Michael Cozort
Director of Finance Brian E. Turbitt
Town of Nantucket, Massachusetts Page 16 of 137 Comprehensive Annual Financial Report
FINANCIAL SECTION
The Nantucket Whaling Museum, a reminder of the great whaling era of Nantucket, received status as
an accredited museum by the American Association of Museums in 2008. The facility, which was a
candle factory converted to museum in 1929, houses a 46 foot skeleton (see below) of a sperm whale
that washed ashore in Nantucket in 1998.
INDEPENDENT AUDITOR’S REPORT
Honorable Board of Selectmen
Town of Nantucket, Massachusetts
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component units, each major fund and the aggregate remaining fund
information of the Town of Nantucket, Massachusetts, (the “Town”) as of and for the year ended June 30,
2016 which collectively comprise the Town’s basic financial statements as listed in the table of contents.
We did not audit the financial statements of the Nantucket Islands Land Bank, a discretely presented
component unit that represents 100% of the Nantucket Islands Land Bank Component unit column as
presented in the financial statements. Those financial statements were audited by other auditors whose
report has been furnished to us, and our opinion, insofar as it relates to the amounts included for this
discretely presented component unit, is based solely on the report of the other auditors.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America 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 performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Town of Nantucket, Massachusetts Page 17 of 137 Comprehensive Annual Financial Report
Town of Nantucket
Page Two
Opinions
In our opinion, based on our audit and the report of the other auditor, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the discretely presented component units, each major fund and the
aggregate remaining fund information of the Town, as of June 30, 2016, and the respective changes in
financial position and, where applicable, cash flows thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Restatement of Prior Year Ending Balances
As more fully described in Note IV, a restatement of prior year ending net position balances was made to
the Nantucket County discretely presented component unit, the Town’s governmental activities, business-
type activities and the Wannacomet Water, and Our Island Home Enterprise Funds. Our opinion was not
modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, the schedules of the Town’s proportionate share of net pension liability and the
Town’s contributions to pension plan, the schedule of the Commonwealth’s share of the net pension
liability of the Massachusetts Teacher’s Retirement System, the funding progress and contribution
funding for other postemployment benefits, and budgetary comparison information as listed in the table of
contents, be presented to supplement the basic financial statements. Such information, although not part
of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The introductory section, combining statements, and
statistical section are presented for purposes of additional analysis and are not a required part of the basic
financial statements. The combining statements are the responsibility of management and were derived
from and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
Town of Nantucket, Massachusetts Page 18 of 137 Comprehensive Annual Financial Report
Town of Nantucket
Page Three
with auditing standards generally accepted in the United States of America. In our opinion, the
combining statements are fairly stated, in all material respects, in relation to the basic financial statements
as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required By Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated October 4, 2016,
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 considered in assessing the
results of our audit.
Roselli, Clark and Associates
Certified Public Accountants
Woburn, Massachusetts 01801
October 4, 2016
Town of Nantucket, Massachusetts Page 19 of 137 Comprehensive Annual Financial Report
Roselli, Clark and Associates
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Town of Nantucket, Massachusetts Page 20 of 137 Comprehensive Annual Financial Report
Management’s Discussion and Analysis
Town of Nantucket, Massachusetts Page 21 of 137 Comprehensive Annual Financial Report
MANAGEMENT’S DISCUSSION AND ANALYSIS
As the management of the Town, we offer readers of the accompanying financial statements this narrative
overview and analysis of the financial activities of the Town and its component units for the fiscal year
ended June 30, 2016.
Financial Highlights
During the year ended June 30, 2016 the Town was required to restate its capital assets in the
governmental and business-type activities. These adjustments resulted in a reduction of
approximately $2.4 million in the governmental activities and an increase of $3.1 million in the
business-type activities. This was necessary to properly report capital assets for the prior year that
resulted from conducting a comprehensive inventory of capital assets during fiscal 2016. All changes
in net position discussions have removed the impact that these adjustments from the analysis.
The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by approximately $295.9 million (total
net position).
The government’s total net position increased by approximately $11.3 million (4.0% of total net
position) over the prior year. This consisted of increases in both governmental activities’ net position
by approximately $5.1 million (3.0% of total governmental activities’ net position) and in business -
type activities’ net position of approximately $6.2 million (4.9% of business-type activities’ net
position). Detail of these changes is provided in the Government-wide financial analysis section of
the Management Discussion and Analysis.
The Town’s unassigned fund balance reported in the General Fund was approximately $17.5 million
(23.2% of General Fund expenditures). Total fund balance in the General Fund was approximately
$23.2 million (30.7% of General Fund expenditures). The Town reported a deficit of $4.6 million in
its Town Capital Projects Fund and reported total fund balances of approximately $32.7 million in the
Combined Nonmajor Governmental Funds. Detail of these changes is provided under the
Governmental Funds section of the Management Discussion and Analysis.
The Town’s total debt decreased by almost $9.3 million during the fiscal year. Detail of this net
decrease is provided under the capital and debt administration section of the Management Discussion
and Analysis.
The Town’s bond rating was increased to Aa1 from Aa2 during fiscal 2015 and was affirmed during
fiscal 2016. The rating was provided by Moody’s Investor Services.
Town of Nantucket, Massachusetts Page 22 of 137 Comprehensive Annual Financial Report
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, 3) notes to the financial statements. This report
also contains other supplementary information in addition to the basic financial statements themselves.
The layout and relationship of the financial statements and supplementary information is visually
illustrated as follows:
Government-wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. The statement of position presents information on all of the Town’s assets, deferred outflows of
resources, liabilities and deferred inflows of resources, with the difference between these reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of whether the
financial position of the Town is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave.)
Required Supplementary
Information Management Discussion and Analysis
Basic
Financial Statements
Government-wide Financial Statements
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
Notes to the Basic Financial Statements
Required SupplementaryInformation –
Other than MD&A
Budgetary Reporting with Notes, Pension Schedules
And Other Postemployment Benefit Schedules
Other Supplementary
Information Combining Fund Financial Statements/Schedules
Town of Nantucket, Massachusetts Page 23 of 137 Comprehensive Annual Financial Report
The government-wide financial statements consist of three classifications; (1) those whose activities are
principally supported by taxes and intergovernmental revenue (governmental activities); (2) those whose
activities are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities), and (3) component units.
The Town’s governmental activities consist of:
1. General government;
2. Public safety;
3. Education;
4. Public works;
5. Health and human services;
6. Culture and recreation; and,
7. Interest expense.
The Town’s business-type activities consist of:
1. Siasconset Water District;
2. Wannacomet Water District;
3. Sewer;
4. Nantucket Memorial Airport;
5. Our Island Home; and
6. Solid waste.
The Town’s component units consist of:
1. Nantucket County; and
2. Nantucket Islands Land Bank.
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. The Town, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Accounting guidelines distinguish fund balance between amounts that are considered nonspendable, such
as fund balance associated with inventories, and other amounts that are classified based on the relative
strength of the constraints that control the purposes for which specific amounts can be spent. Beginning
with the most binding constraints, fund balance amounts will be reported in the following classifications:
• Restricted—amounts constrained by external parties, constitutional provision, or enabling
legislation
• Committed—amounts constrained by a government using its highest level of decision-making
authority
• Assigned—amounts a government intends to use for a particular purpose
• Unassigned—amounts that are not constrained at all will be reported in the general fund or in
other major funds if negative
Town of Nantucket, Massachusetts Page 24 of 137 Comprehensive Annual Financial Report
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 financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions.
The Town maintains numerous individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund, and Town Capital Projects Fund which are considered to
be major funds. Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these Nonmajor governmental funds is provided in the
form of combining statements.
The Town adopts an annual appropriated budget for its general fund and its enterprise funds. A budgetary
comparison schedule has been provided for the general fund 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 all the business-type activities previously
discussed.
Internal service funds are used to report activities that service all other Town Departments. The Town
uses an internal service fund to account for self-insured health insurance claims.
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 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.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the Town’s proportionate share of
net pension liability, contributions to pension plan, information regarding the Town’s special funding
situation for teacher contributions to pensions and funding and contribution progress of the Town’s other
postemployment benefits to its employees as well as the Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual – General Fund.
Town of Nantucket, Massachusetts Page 25 of 137 Comprehensive Annual Financial Report
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by approximately $295.9 million at the close of the most recent fiscal year.
The condensed Statement of Net Position is as follows:
By far, the largest portion (approximately $307.4 million) of the Town’s net position reflects its
investment in capital assets (e.g. land, buildings, infrastructure, machinery, and equipment) less any
related debt used to acquire those assets that is still outstanding. The Town uses these capital assets to
provide services to citizens; consequently, these assets are not available for future spending. Although
the Town’s investment in its capital assets is reported net of related debt 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, approximately $27.1 million, of the Town’s net position represents resources that
are subject to external restrictions on how they may be used. Unrestricted net position reflects the
remainder of net position; a deficit of approximately $38.6 million. This consisted of Governmental
activities unrestricted net position which is in a deficit position of approximately $44.9 million. This is
due to the recognition of other postemployment benefits (net OPEB obligation) of approximately $35.9
million since the implementation of Governmental Accounting Standards Board Statement (“GASB”) No.
45, Accounting and Financial Reporting by Employers for Postemployment Benefit Plans Other Than
Pension Plans, in fiscal year 2009, and the implementation of GASB 68 in 2015, which, has resulted in
the recognition of approximately $41.6 million in net pension liability. In similar fashion, the Business-
type activities included a net OPEB obligation of almost $8.0 million and a net pension liability of
approximately $18.3 million.
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30, June 30, June 30, June 30,
2016 2015 2016 2015 2016 2015
Assets
Currrent and other assets 80,457,455$ 63,066,853$ 44,340,535$ 34,298,867$ 124,797,990$ 97,365,720$
Capital assets, net 251,855,905 235,134,667 210,049,039 204,988,922 461,904,944 440,123,589
Total assets 332,313,360 298,201,520 254,389,574 239,287,789 586,702,934 537,489,309
Deferred outflows of resources 3,375,671 63,804 1,487,713 28,121 4,863,384 91,925
Liabilities
Long-term liabilities 125,678,452 121,193,351 114,690,043 115,532,242 240,368,495 236,725,593
Other liabilities 41,112,150 10,846,837 14,166,065 6,063,814 55,278,215 16,910,651
Total liabilities 166,790,602 132,040,188 128,856,108 121,596,056 295,646,710 253,636,244
Deferred inflows of resources - - - - - -
Net Position
Net investment in capital assets 186,717,700 181,710,594 120,659,914 119,242,898 307,377,614 300,953,492
Restricted 27,131,162 20,995,512 - - 27,131,162 20,995,512
Unrestricted (44,950,433) (36,480,970) 6,361,265 (1,523,044) (38,589,168) (38,004,014)
Total Net Position 168,898,429$ 166,225,136$ 127,021,179$ 117,719,854$ 295,919,608$ 283,944,990$
Town of Nantucket, Massachusetts Page 26 of 137 Comprehensive Annual Financial Report
Condensed changes in net position data is presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30, June 30, June 30, June 30,
2016 2015 2016 2015 2016 2015
Revenues
Program revenues:
Charges for services 7,159,934$ 6,322,542$ 39,612,392$ 33,738,945$ 46,772,326$ 40,061,487$
Operating grants and contributions 9,241,317 6,761,994 133,570 90,820 9,374,887 6,852,814
Capital grants and contributions 1,881,938 1,886,943 3,175,470 6,078,185 5,057,408 7,965,128
General revenues:
Property taxes 68,978,062 65,895,498 - - 68,978,062 65,895,498
Hotel and meals excise 4,486,662 4,026,389 - - 4,486,662 4,026,389
Intergovernmental 179,523 186,666 - - 179,523 186,666
Other 5,792,302 8,012,789 62,084 862,147 5,854,386 8,874,936
Total Revenues 97,719,738 93,092,821 42,983,516 40,770,097 140,703,254 133,862,918
Expenses
General government 13,375,694 11,574,757 - - 13,375,694 11,574,757
Public safety 17,211,310 15,484,735 - - 17,211,310 15,484,735
Education 40,296,659 38,839,302 - - 40,296,659 38,839,302
Public works 5,404,039 5,131,842 - - 5,404,039 5,131,842
Health and human services 1,544,941 1,528,171 - - 1,544,941 1,528,171
Culture and recreation 4,646,084 5,397,098 - - 4,646,084 5,397,098
Debt service 1,478,749 1,616,600 - - 1,478,749 1,616,600
Siasconset water - - 811,237 738,719 811,237 738,719
Wannacomet water - - 4,088,800 3,544,191 4,088,800 3,544,191
Sewer - - 6,338,700 6,255,624 6,338,700 6,255,624
Nantucket Memorial Airport - - 14,287,119 15,096,177 14,287,119 15,096,177
Our Island Home - - 8,358,350 7,945,959 8,358,350 7,945,959
Solid Waste - - 11,587,152 10,324,817 11,587,152 10,324,817
Total Expenses 83,957,476 79,572,505 45,471,358 43,905,487 129,428,834 123,477,992
Change in net position before
transfers 13,762,262 13,520,316 (2,487,842) (3,135,390) 11,274,420 10,384,926
Transfers (8,659,384) (7,881,295) 8,659,384 7,881,295 - -
Change in net position 5,102,878 5,639,021 6,171,542 4,745,905 11,274,420 10,384,926
Net position, beginning of year 166,225,136 197,700,380 117,719,854 128,455,466 283,944,990 326,155,846
Restatement for net pension liability - (36,982,558) - (16,298,817) - (53,281,375)
Restatement for capital assets (2,429,585) - 3,129,783 685,593 700,198 685,593
Restatement for 'look-back'- (131,707) - 131,707 - -
Net position, beginning of year,
as restated 163,795,551 160,586,115 120,849,637 112,973,949 284,645,188 273,560,064
Net position, end of year 168,898,429$ 166,225,136$ 127,021,179$ 117,719,854$ 295,919,608$ 283,944,990$
Town of Nantucket, Massachusetts Page 27 of 137 Comprehensive Annual Financial Report
Governmental Activities – The governmental activities experienced a net increase in net position by
approximately $ 5.1 million (3.0 % of governmental activities’ net position) as compared to an
approximate $5.6 million increase in the prior year. This consistency was due to revenues increasing at
the same pace as expenses.
Revenues
Total revenue increases were $4.6 million. Specifically, property taxes, which made up 70.6% of total
revenues increased by approximately $3.1 million; this was in line with the amount budgeted by the Town
during its rate setting process
and was within the
permissible amount allowable
by statute that limits the
increase in taxes to 2.5% of
the prior year plus any new
growth. The Town still
manages to maintain a healthy
levy capacity despite the
increase. Operating grants
increased by $2.5 million; this
was primarily due to an
increase in Chapter 70 aid
($0.8 million) from the
Commonwealth of Massachusetts which is directly related to the increase in school enrollment. In
addition the Town has a special funding situation with respect to teacher pensions and distributions from
the Commonwealth; these increased $1.3 million due a new actuarial study conducted by the
Commonwealth. This will have the same impact to expenses. The Town’s Other Revenue category
consists of local receipts such as motor vehicle excise, departmental receipts and other revenues not
specifically classified. This decreased by approximately $2.3 million due to the prior year including a
gain on sale of land of $2.4 million which did not exist in the current year. The remaining increase is due
to hotel and meals excise increasing by approximately $0.5 million due to the continued expanding
economy and other net minor increases and decreases.
Expenses
Total expense increases were approximately $4.4 million. Specifically, general government which
represented 15.9% of total expenses increased by $1.8 million; this was due primarily to general fund
articles that included public
building expenses, legal
services, and numerous small
non-capitalized capital items.
These are non-recurring costs.
In addition, health and pension
assessments which are allocated
across all functional items
increased over $3 million and
impacted general government
and public safety the most as
these are high payroll
categories. Public Safety which
made up 20.5% of total
70.59%
9.46%
1.93%
7.33%
5.93%4.59%0.18%
Revenues
Property taxes
Operating grants and contributions
Capital grants and contributions
Charges for services
Other
Hotel and meals excise
Intergovernmental (unrestricted)
16%
20%
48%
6%
2%6%
2%
Expenses
General government
Public safety
Education
Public works
Health and human services
Culture and recreation
Interest expense
Town of Nantucket, Massachusetts Page 28 of 137 Comprehensive Annual Financial Report
expenses increased by $1.5 million primarily due to collectively bargained wage increases in the Police
Department and health and pension costs as previously discussed. Education which is the Town’s largest
expense and represents 48.0% of total expenses increased by approximately $1.4 million; this was
primarily due to the special funding situation discussed under revenues as this is the expense side impact,
which was $1.3 million greater than last year. The remainder of the expense net increase and decreases
were minor after factoring in all allocations.
Fiscal Year 2016 Expenses and Program Revenues – governmental activities are graphically presented as
follows:
Net position of the business-type activities increased by approximately $6.0 million from the
prior year balances.
Change in net position for each business-type fund is broken down individually as follows:
In its Business-type activities, the Town does not budget for depreciation and OPEB charges
which are components of the “change in net position” but does budget for principal payback of
debt which is a component of the “change in net position”. With respect to Siasconset,
Wannacomet and Sewer principal payback of debt is larger than depreciation and OPEB,
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Functional expenses
Program Revenues
Siasconset Water District 274,437$
Wannacomet Water District 1,790,198
Sewer 991,287
Nantucket Memorial Airport 975,811
Our Island Home 4,276,698
Solid Waste (2,281,014)
Total Change 6,027,417$
Town of Nantucket, Massachusetts Page 29 of 137 Comprehensive Annual Financial Report
therefore positive results are expected; also seasonal weather patterns contributed to increased
usage and positive operations.
Airport depreciation and OPEB in aggregate are much greater (about $1.5 million) than principal
payback of debt; however, the Airport was the recipient of an intergovernmental grant of $2.5
million which netted to the positive results disclosed in the table.
The positive results for Our Island Home were a direct result of the collection of claims from the
Commonwealth that were in arrears one year. The total received, $5.2 million was about double
what was expected and contributed to positive operations.
The increase in landfill liability of $1.3 million, and OPEB costs of $0.9 million were primarily
responsible for the loss of $2.3 million in Landfill operations. This is consistent with prior years
as the Landfill is budgeted to breakeven after factoring in the General Fund subsidy.
Fund-wide 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 the Town’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
a government’s net resources available for spending at the end of the fiscal year.
As of the close of the current fiscal year, the Town’s governmental funds balance sheet reported a
combined ending fund balance of approximately $32.7 million, a decrease of approximately $13.5 million
over the prior year.
General Fund transfers to the Capital Project’s Fund and direct expenditures to cover one time capital
expenditures in aggregate were nearly $11 million. After factoring these amounts out, the General Fund
activities resulted in positive operations of almost $8 million. Better than expected revenues across the
board contributed to these positive results; as the Town is undergoing a period of robust construction,
economic expansion and tourism.
The timing of capital costs verses bond proceeds was primarily responsible for a decrease in capital
projects of over $3.6 million.
Transfers to the Capital Projects Fund of almost $8 million led to the decrease of $6.6 million in the
Combined Nonmajor Funds.
Unassigned fund balance in the general fund was approximately $17.3 million or 23.2% of general
fund expenditures. This is available for spending at the government’s discretion. Assigned fund
balance of $3.0 million; committed fund balance of approximately $2.3 million and restricted fund
balance of $0.4 million bring total general fund balance to $23.0 million or 30.7% of general fund
expenditures.
Capital Projects include $13.2 million as restricted for Capital Projects and a $17.7 million deficit due to
construction funded from short-term notes for a total fund deficit of over $4.5 million.
Town of Nantucket, Massachusetts Page 30 of 137 Comprehensive Annual Financial Report
The remainder of governmental fund balances are included as Combined Nonmajor Fund Balances and
are classified as either (1) non-spendable, due to being the corpus of an endowment in the amount of
$44,805; or (2) restricted due to constraints placed externally by third-parties in the amount of
approximately $13.9 million.
Proprietary funds – The Town’s proprietary funds are made up of the same type of information found in
the government-wide financial statements
under business-type activities, but in
more detail; and (2) the Town’s Internal
Service Fund which accounts for the
Town’s Health Claims Fund.
The Health Claims Fund has a Net
Position balance of approximately $2.4
million. This represents an increase of
over $1.5 million over the prior year.
Reinsurance proceeds of approximately
$0.4 million and positive claims
experience were primarily responsible for
these positive operating results.
Fiduciary Fund – The Town’s fiduciary fund is comprised primarily of the Town’s Private Purpose
Trust Funds and its Other Postemployment Benefits Trust. Total Net Position of these two funds is
approximately $4.9 million.
The Private Purpose Trust Funds make up almost $3.5 million; These assets are used strictly for purposes
outside of the public domain such as scholarships and public assistance and increased by about $1.2
million due to the receipt of a gift from a benefactor.
In addition, the Town has elected to establish a trust under Chapter 32B Section 20 of the MGL whose
sole purpose will be to accumulate funds to reduce the Town’s unfunded Postemployment Benefits. This
fund increased by approximately $0.5 million due to a contribution made by the Town in excess of
premiums paid for retirees. The Town anticipates the use of an annual dedicated budget source to fund a
portion of the ARC.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were for the most part not significant
(less than 1%) except increased transfers to other funds in the amount of $6.0 million for capital purposes.
Further detail of budget to actual comparisons may be reviewed as part of the Required Supplementary
Information following the footnotes to the report.
Capital Asset and Debt Administration
Capital Assets – The Town’s investment in capital assets for its governmental and business type
activities as of June 30, 2016 amounts to approximately $461.9 million (net of accumulated depreciation)
an increase from the previous year’s balance of approximately $21.8 million.
5
7
9
11
13
15
Revenues Expenses
Health Claims Fund
Town of Nantucket, Massachusetts Page 31 of 137 Comprehensive Annual Financial Report
The total budget ended the year with a favorable variance of $6.6 million. Most was a result of revenues exceeding
forecast by almost $4.1 million. This was due to (1) the Town continuing its philosophy of conservatively
forecasting revenue, (2) the results of the continuation in the expanding economy felt mostly in motor vehicle
excise and room occupancy, and (3) a one-time revenue for disaster aid. Expenditure variances contributed over
$2.5 to this positive result and were mainly spread over many expenditure categories and due to effective cost
controls put in place mid-way through the year.
This investment in capital assets includes land, buildings and improvements, infrastructure, machinery,
equipment, and software. The total increase is due to capital investments exceeding depreciation for the
year.
Additional information on the Town’s capital assets can be found in Note II subsection D.
Long-term Debt – State statutes limit the amount of general obligation debt a governmental entity may
issue to 5.0 % of its total assessed valuation. The current debt limitation for the Town is approximately
$1 billion, which is significantly in excess of the Town’s outstanding general obligation debt classified as
inside the debt limit.
At the end of the current fiscal year, the Town had total debt outstanding of approximately $123.3
million. Over $45.9 million is related to the Town’s Governmental activities and over $77.3 million is
related to the Town’s Business-type activities. The entire amount comprises debt backed by the full faith
and credit of the government.
In addition, the Town issues bond anticipation notes prior to permanent financing to fund the initial
stages of capital projects. At June 30, 2016 the bond anticipation note payable balances approximated
$41.4 million.
The Town’s total debt decreased by approximately $9.3 million during the fiscal year due to following:
Additional information on the Town’s short-term and long-term debt can be found in Note II under
subsections F and G.
Regular scheduled maturities:
Governmental Activities (5,511,741)$
Business-Type Activities (5,620,956)
Issuance of refunding bonds:
Governmental Activities 3,935,000
Business-Type Activities -
Payments to Escrow Agent:
Governmental Activities (3,995,000)
Business-Type Activities -
Issuance of debt:
Governmental Activities 1,188,709
Bond premium 123,130
Business-Type Activities 776,000
Amortization of bond premium:
Governmental Activities (22,332)
Business-Type Activities (120,018)
(9,247,208)$
Town of Nantucket, Massachusetts Page 32 of 137 Comprehensive Annual Financial Report
Economic Factors and Next Year’s Budgets and Rates
Consistent with both State and National work force trends, the Town’s unemployment rates have
trended near historically low levels in recent years. The Town’s employment is seasonal however and
subject to fluctuations during any given year. Anticipated economic expansion on the Island will
smooth this over the next several years.
The Town’s real estate tax base is made up predominantly of residential taxes, which comprise nearly
87.8% of the Town’s real estate tax base. The Town also relies heavily on its commercial and
industrial real estate tax base, which in aggregate comprise 10.2 % of the Town’s real estate tax base.
In addition, Chapter 580 of the Acts of 1980, more commonly referred to as Proposition 2 ½, limits
the Town’s ability to increase taxes in any one year by more than two and one-half percent (2 ½%) of
the previous year tax levy plus new growth.
The Town’s housing market continues to be vibrant and consistently outpaces the state and national
indexes. Average home prices approximate $1.5 million and the average residential tax rate is 3.67
per $1,000. In calendar year 2014 and 2015 the Town exceeded $1 billion in property sales for only
the third time in Island History.
All of the above items were considered when the Town developed its budget for fiscal year 2017.
The budget was adopted in April 2016 and the Town is expected to set its tax rate in December 2016.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Office of the Director of
Finance, 37 Washington Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket County may be obtained from the Office of the
Director of Finance 37 Washington Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket Islands Land Bank may be obtained by
contacting Nantucket Islands Land Bank, 22 Broad Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket Memorial Airport may be obtained from the
Office of the Director of Finance 37 Washington Street, Nantucket, Massachusetts 02554.
Town of Nantucket, Massachusetts Page 33 of 137 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 34 of 137 Comprehensive Annual Financial Report
Basic Financial Statements
Town of Nantucket, Massachusetts Page 35 of 137 Comprehensive Annual Financial Report
Nantucket
Governmental Business-Type Nantucket Islands
Activities Activities Total County Land Bank
Assets
Cash and cash equivalents 68,404,483$ 38,515,404$ 106,919,887$ 4,096,456$ 4,485,159$
Investments 4,200,701 - 4,200,701 - 4,752,966
Investments, designated - - - - 2,492,036
Receivables, net:
Property taxes 2,272,542 - 2,272,542 - -
User fees - 2,993,027 2,993,027 - -
Departmental and other 4,149,217 425,653 4,574,870 - 175,340
Intergovernmental 647,545 1,542,881 2,190,426 55,927 -
Inventory - 463,337 463,337 - 321,112
Prepaid items 1,183,200 - 1,183,200 - -
Other assets - - - - 103,984
Internal balances (400,233) 400,233 - - -
Restricted cash and cash equivalents - - - - 1,805,328
Restricted investments - - - - 2,901,631
Cash surrender value of life insurance - - - - 874,063
Land conservation rights - - - - 30,000
Capital assets not being depreciated 197,066,287 36,931,944 233,998,231 3,283,842 297,237,702
Capital assets, net of depreciation 54,789,618 173,117,095 227,906,713 10,598 17,444,343
Total Assets 332,313,360 254,389,574 586,702,934 7,446,823 332,623,664
Deferred Outflows of Resources 3,375,671 1,487,713 4,863,384 79,669 113,998
Liabilities
Warrants and accounts payable 5,986,552 1,352,226 7,338,778 9,246 154,019
Accrued payroll and withholdings 2,468,347 302,904 2,771,251 9,198 -
Retainage payable 746,563 - 746,563 - -
Accrued expenses - - - - 805,031
Health claims incurred but not reported 898,614 - 898,614 - -
Accrued interest 503,325 885,320 1,388,645 - -
Other liabilities 294,548 418,627 713,175 - -
Bond anticipation notes payable 30,214,201 11,206,988 41,421,189 - -
Noncurrent liabilities:
Due within one year 6,916,235 6,213,898 13,130,133 - 6,602,561
Due in more than one year 118,762,217 108,476,145 227,238,362 694,036 21,770,607
Total Liabilities 166,790,602 128,856,108 295,646,710 712,480 29,332,218
Deferred Inflows of Resources - - - 49,995 165,148
Net Position
Net investment in capital assets 186,717,700 120,659,914 307,377,614 3,294,440 287,736,445
Restricted:
Nonexpendable permanent funds 44,805 - 44,805 - -
Federal and State grants 1,422,683 - 1,422,683 - -
Community preservation 4,497,164 - 4,497,164 - -
Capital outlay 14,788,806 - 14,788,806 - -
Public safety revolving funds 3,447,210 - 3,447,210 - -
Gift funds 658,092 - 658,092 - -
Other purposes 2,272,402 - 2,272,402 3,063,665 4,706,959
Unrestricted (44,950,433) 6,361,265 (38,589,168) 405,912 10,796,892
Total Net Position 168,898,429$ 127,021,179$ 295,919,608$ 6,764,017$ 303,240,296$
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2016
See accompanying notes to basic financial statements.
Primary Government Component Units
Town of Nantucket, Massachusetts Page 36 of 137 Comprehensive Annual Financial Report
Program Revenues Net (Expenses) Revenues and Changes in Net Position
Operating Capital Nantucket
Charges for Grants and Grants and Governmental Business-Type Nantucket Islands
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total County Land Bank
Primary government:
Governmental activities:
General government 13,375,694$ 1,121,165$ 675,150$ 888,966$ (10,690,413)$ (10,690,413)$
Public safety 17,211,310 3,703,493 276,253 - (13,231,564) (13,231,564)
Education 40,296,659 1,500,573 7,988,094 - (30,807,992) (30,807,992)
Public works 5,404,039 278,408 8,000 412,461 (4,705,170) (4,705,170)
Health and human services 1,544,941 227,273 22,528 - (1,295,140) (1,295,140)
Culture and recreation 4,646,084 329,022 21,292 580,511 (3,715,259) (3,715,259)
Interest expense 1,478,749 - 250,000 - (1,228,749) (1,228,749)
Total governmental activities 83,957,476 7,159,934 9,241,317 1,881,938 (65,674,287) (65,674,287)
Business-type activities:
Siasconset water 811,237 1,087,411 - - 276,174$276,174
Wannacomet water 4,088,800 5,885,606 - - 1,796,806 1,796,806
Sewer 6,338,700 6,681,982 - 709,217 1,052,499 1,052,499
Nantucket Memorial Airport 14,287,119 12,667,077 133,570 2,466,254 979,782 979,782
Our Island Home 8,358,350 9,494,178 - - 1,135,828 1,135,828
Solid waste 11,587,152 3,796,137 - - (7,791,015) (7,791,015)
Total business-type activities 45,471,358 39,612,391 133,570 3,175,471 (2,549,926) (2,549,926)
Total Primary Government 129,428,834$ 46,772,325$ 9,374,887$ 5,057,409$ (65,674,287) (2,549,926) (68,224,213)
Component units:
Nantucket County 950,910$ 970,969$ 170,201$ -$ 190,260 -
Nantucket Islands Land Bank 7,814,717 23,282,144 833,805 8,905 - 16,310,137
Total Component units 8,765,627$ 24,253,113$ 1,004,006$ 8,905$ 190,260 16,310,137
General Revenues:
Property taxes 68,978,062 - 68,978,062 - -
Motor vehicle and boat excise 2,801,463 - 2,801,463 - -
Hotel and meals excise 4,486,662 - 4,486,662 - -
Community Preservation Fund surcharges 1,944,202 - 1,944,202 - -
Grants and contributions not restricted to
specific programs 179,523 - 179,523 - -
Penalties and interest on taxes 657,303 - 657,303 - -
Unrestricted investment income 389,334 62,084 451,418 9,669 118,902
Gain on sale of capital assets - - - - 147,448
Transfers (net)(8,659,384) 8,659,384 - - -
Total general revenues and transfers 70,777,165 8,721,468 79,498,633 9,669 266,350
Change in Net Position 5,102,878 6,171,542 11,274,420 199,929 16,576,487
Net Position:
Beginning of year, as restated (see Note IV)163,795,551 120,849,637 284,645,188 6,564,088 286,663,809
End of year 168,898,429$ 127,021,179$ 295,919,608$ 6,764,017$ 303,240,296$
See accompanying notes to basic financial statements.
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2016
Component Units
Town of Nantucket, Massachusetts Page 37 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2016
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Assets
Cash and cash equivalents 18,738,728$ 29,880,150$ 15,035,822$ 63,654,700$
Investments 6,341,944 - 167,197 6,509,141
Receivables, net of allowance for uncollectibles:
Property taxes 2,157,408 - 115,134 2,272,542
Departmental and other 3,748,910 - 203,069 3,951,979
Intergovernmental 53,834 - 593,711 647,545
Due from other funds 362,461 - - 362,461
Total Assets 31,403,285 29,880,150 16,114,933 77,398,368
Total Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources 31,403,285$ 29,880,150$ 16,114,933$ 77,398,368$
Liabilities:
Warrants and accounts payable 814,478$ 3,736,139$ 973,414$ 5,524,031$
Accrued payroll and withholdings 2,364,397 - 103,950 2,468,347
Retainage payable - 746,563 - 746,563
Other liabilities 148,105 - 146,443 294,548
Due to other funds - - 362,461 362,461
Bond anticipation notes payable - 29,948,650 265,551 30,214,201
Total Liabilities 3,326,980 34,431,352 1,851,819 39,610,151
Deferred Inflows of Resources
Unavailable revenue - property taxes 1,601,151 - 115,134 1,716,285
Unavailable revenue - other 3,192,309 - 203,069 3,395,378
Total Deferred Inflows of Resources 4,793,460 - 318,203 5,111,663
Fund Balances:
Nonspendable - - 44,805 44,805
Restricted 414,514 13,186,251 13,900,106 27,500,871
Committed 2,267,807 - - 2,267,807
Assigned 3,028,651 - - 3,028,651
Unassigned 17,571,873 (17,737,453) - (165,580)
Total Fund Balances 23,282,845 (4,551,202) 13,944,911 32,676,554
Total Liabilities , Deferred Inflows of Resources
and Fund Balances 31,403,285$ 29,880,150$ 16,114,933$ 77,398,368$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 38 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2016
Total Governmental Fund Balances 32,676,554$
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds.251,855,905
Other long-term assets are not available to pay for current period expenditures and,
therefore, are reported as unavailable revenue in the funds 5,111,663
Deferred outflows and inflows of resources to be recognized in future pension expense
are not available resources and, therefore, are not reported in the funds:
Net difference between projected and actual earnings on pension plan investments 3,302,861
Changes in proportion and differences between Town contributions and the
proportionate share of contributions 72,810
Assets and liabilities of the Town's internal service funds are included in the
Statement of Net Position, but are not reported in the governmental funds.1,955,566
In the Statement of Activities, interest is accrued on outstanding long-term debt
whereas in the governmental funds, interest is not reported until due.(503,325)
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the government funds:
Bonds and notes payable (45,945,549)
Unamortized premiums on bonds (123,130)
Compensated absences (1,988,910)
Other postemployment benefits (35,895,090)
Net pension liability (41,620,926)
Net Position of Governmental Activities 168,898,429$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 39 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2016
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Revenues:
Property taxes 69,040,526$ -$ -$ 69,040,526$
Intergovernmental 7,649,227 45,161 3,200,053 10,894,441
Motor vehicle and other excises 2,711,039 - 36,237 2,747,276
Hotel and meals taxes 4,486,662 - - 4,486,662
Community preservation surcharges - - 1,930,955 1,930,955
Licenses and permits 1,712,506 - - 1,712,506
Penalties and interest on taxes 657,303 - - 657,303
Fines and forfeitures 269,441 - - 269,441
Investment income 333,824 - 41,396 375,220
Departmental and other revenue 2,126,335 - 3,092,599 5,218,934
Contributions and donations - - 408,337 408,337
Total Revenues 88,986,863 45,161 8,709,577 97,741,601
Expenditures:
Current:
General government 9,153,966 916,225 743,492 10,813,683
Public safety 9,583,854 1,067,745 1,284,863 11,936,462
Education 25,791,742 16,914,287 3,120,436 45,826,465
Public works 3,480,032 1,335,234 443,303 5,258,569
Health and human services 836,463 - 215,434 1,051,897
Culture and recreation 1,238,992 2,426 3,115,082 4,356,500
Pension and fringe benefits 18,393,297 - - 18,393,297
State and county assessments 591,536 - - 591,536
Debt service:
Principal 5,199,948 - 311,793 5,511,741
Interest 1,547,110 - 3,419 1,550,529
Total Expenditures 75,816,940 20,235,917 9,237,822 105,290,679
Excess (Deficiency) of Revenues
Over (Under) Expenditures 13,169,923 (20,190,756) (528,245) (7,549,078)
Other Financing Sources (Uses):
Issuance of bonds and notes - 1,188,709 - 1,188,709
Issuance of refunding bonds 3,935,000 - - 3,935,000
Premiums from refunding bonds 123,130 - - 123,130
Sale of capital assets - - 1,439,916 1,439,916
Payments to refunding escrow agent (3,995,000) - - (3,995,000)
Transfers in 294,402 15,135,326 350,000 15,779,728
Transfers out (16,551,710) - (7,887,402) (24,439,112)
Total Other Financing Sources (Uses)(16,194,178) 16,324,035 (6,097,486) (5,967,629)
Net Change in Fund Balances (3,024,255) (3,866,721) (6,625,731) (13,516,707)
Fund Balances - Beginning 26,307,100 (684,481) 20,570,642 46,193,261
Fund Balances - Ending 23,282,845$ (4,551,202)$ 13,944,911$ 32,676,554$
See acompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 40 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
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, 2016
Net Change in Fund Balances - Total Governmental Fund Balances (13,516,707)$
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. In addition, when a capital asset is disposed of,
a gain or loss is calculated and reported in the Statement of Activities whereas the in
the governmental funds, proceeds are reported as revenues. The net amounts are
reflected here as reconciling items:
Capital outlays 26,098,115
Depreciation expense (4,287,625)
Disposal of capital assets (2,659,667)
Net effect of reporting capital assets 19,150,823
In the Statement of Activities, Internal Service Funds established to administer the Town's
health insurance and worker's compensation activities are included within the Statement of
activities whereas these activities are not presented in the Statement of Revenues,
Expenditures and Changes in Fund Balances.641,002
The issuance of long-term debt 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 has any effect on net position. Also governmental funds report
the effect of issuance costs, premiums, discounts, and similar items when debt is first issued,
whereas these amounts are amortized in the Statement of Activities. The net amounts are
reflected here as reconciling items:
Issuance of bonds and notes (1,188,709)
Issuance of refunding bonds (3,935,000)
Premiums from refunding bonds (123,130)
Payments to refunding escrow agent 3,995,000
Repayments of debt 5,511,741
Net effect of reporting long-term debt 4,259,902
Revenues in the Statement of Activities that do not provide current financial resources are
unavailable in the Statement of Revenues, Expenditures and Changes in Fund Balances.
Therefore, the recognition of revenue for various types of accounts receivable differ between
the two statements. The amount presented represents the following differences derived .
from unavailable revenue.(35,977)
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:
Interest expense 49,448
Amortization of premiums on bonds and notes payable 22,332
Compensated absences (98,667)
Pension benefits (1,053,004)
Other postemployment benefits (4,316,274)
Net effect of reporting long-term liabilities (5,396,165)
Change in Net Position of Governmental Activities 5,102,878$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 41 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2016
Governmental
Activities
Nantucket Our Internal
Siasconset Wannacomet Memorial Island Solid Service
Water Water Sewer Airport Home Waste Total Fund
Assets:
Current assets:
Cash and cash equivalents 1,272,078$ 5,217,045$ 10,915,840$ 10,423,917$ 9,202,502$ 1,484,022$ 38,515,404$ 2,441,343$
Receivables (net):
User charges 143,204 679,037 847,954 303,254 330,833 688,745 2,993,027 -
Privilege fees - - 425,653 - - - 425,653 -
Intergovernmental - - 176,386 - - - 176,386 -
Inventory - 52,771 - 410,566 - - 463,337 -
Reinsured claims receivable - - - - - - - 197,238
Prepaid items - - - - - - - 1,183,200
Total current assets 1,415,282 5,948,853 12,365,833 11,137,737 9,533,335 2,172,767 42,573,807 3,821,781
Noncurrent assets:
Receivables (net):
Intergovernmental - - 1,366,495 - - - 1,366,495 -
Nondepreciable capital assets 2,615,578 6,889,315 14,996,474 9,205,635 573,536 2,651,406 36,931,944 -
Capital assets (net of depreciation)9,553,164 32,321,034 68,189,167 56,885,825 989,308 5,178,597 173,117,095 -
Total noncurrent assets 12,168,742 39,210,349 84,552,136 66,091,460 1,562,844 7,830,003 211,415,534 -
Total Assets 13,584,024 45,159,202 96,917,969 77,229,197 11,096,179 10,002,770 253,989,341 3,821,781
Deferred Outflows of Resources
Deferred pension 9,727 200,718 122,409 468,624 686,235 - 1,487,713 -
Total Deferred Outflows of Resources 9,727 200,718 122,409 468,624 686,235 - 1,487,713 -
Total Assets and Deferred Outflows of Resources 13,593,751$ 45,359,920$ 97,040,378$ 77,697,821$ 11,782,414$ 10,002,770$ 255,477,054$ 3,821,781$
Liabilities:
Current liabilities:
Warrants and accounts payable 23,606$ 177,385$ 163,467$ 396,052$ 127,823$ 463,893$ 1,352,226$ 462,521$
Accrued payroll and withholdings 1,044 35,835 34,530 121,387 109,510 598 302,904 -
Health claims incurred but not reported - - - - - - - 898,614
Accrued interest 75,336 191,677 511,714 100,797 - 5,796 885,320 -
Other liabilities - - - 418,627 - - 418,627 -
Bond anticipation notes payable - 2,562,000 3,896,008 4,248,980 500,000 - 11,206,988 -
Compensated absences - 137,907 52,695 295,900 155,767 - 642,269 -
Workers' compensation claims incurred but not reported - - - - - - - 104,847
Bonds and notes payable 380,048 1,667,707 2,619,425 864,449 - 40,000 5,571,629 -
Total current liabilities 480,034 4,772,511 7,277,839 6,446,192 893,100 510,287 20,379,963 1,465,982
Noncurrent liabilities:
Compensated absences - 137,907 52,695 295,901 155,768 - 642,271 -
Landfill closure - - - - - 8,903,000 8,903,000 -
Other postemployment benefits 281,105 619,928 388,310 2,678,453 4,009,549 - 7,977,345 -
Net pension liability 119,928 2,474,792 1,509,261 5,777,980 8,461,060 - 18,343,021 -
Bonds and notes payable 5,735,576 16,797,106 39,757,253 9,945,573 - 375,000 72,610,508 -
Total noncurrent liabilities 6,136,609 20,029,733 41,707,519 18,697,907 12,626,377 9,278,000 108,476,145 -
Total Liabilities 6,616,643 24,802,244 48,985,358 25,144,099 13,519,477 9,788,287 128,856,108 1,465,982
Total Deferred Inflows of Resources - - - - - - - -
Total Liabilities and Deferred Inflows of Resources 6,616,643 24,802,244 48,985,358 25,144,099 13,519,477 9,788,287 128,856,108 1,465,982
Net Position:
Net investment in capital assets 6,053,118 18,183,536 36,912,955 51,032,458 1,062,844 7,415,003 120,659,914 -
Unrestricted 923,990 2,374,140 11,142,065 1,521,264 (2,799,907) (7,200,520) 5,961,032 2,355,799
Total Net Position 6,977,108$ 20,557,676$ 48,055,020$ 52,553,722$ (1,737,063)$ 214,483$ 126,620,946 2,355,799$
Adjustment to report the cumulative internal balance for the net effect of the activity
between the internal service funds and the enterprise funds over time 400,233
Net position of business-type activities (page 35)127,021,179$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 42 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2016
Governmental
Activities
Nantucket Our Internal
Siasconset Wannacomet Memorial Island Solid Service
Water Water Sewer Airport Home Waste Total Fund
Operating Revenues:
Charges for services 1,072,405$ 5,545,615$ 6,474,255$ 12,667,077$ 9,492,803$ 3,796,087$ 39,048,242$ -$
Employee contributions - - - - - - - 2,226,306
Employer contributions - - - - - - - 12,815,730
Other 15,006 339,991 207,727 - 1,375 50 564,149 349,942
Total Operating Revenues 1,087,411 5,885,606 6,681,982 12,667,077 9,494,178 3,796,137 39,612,391 15,391,978
Operating Expenses:
Operating costs 260,032 2,588,773 2,947,329 11,164,653 8,334,321 11,320,547 36,615,655 -
Depreciation 309,633 917,150 2,163,851 2,491,379 92,834 250,009 6,224,856 -
Maintenance - - - 287,658 - - 287,658 -
Employee benefits - - - - - - - 14,620,875
Total Operating Expenses 569,665 3,505,923 5,111,180 13,943,690 8,427,155 11,570,556 43,128,169 14,620,875
Total Operating Income (loss)517,746 2,379,683 1,570,802 (1,276,613) 1,067,023 (7,774,419) (3,515,778) 771,103
Nonoperating Revenues (Expenses):
Intergovernmental - - - 133,570 - - 133,570 -
Investment income 347 7,354 - 41,091 13,291 1 62,084 14,114
Interest expense (243,746) (596,839) (1,241,732) (388,491) - (16,596) (2,487,404) -
Total Nonoperating Revenues (Expenses)(243,399) (589,485) (1,241,732) (213,830) 13,291 (16,595) (2,291,750) 14,114
Income (Loss) Before Capital Contributions
and Transfers 274,347 1,790,198 329,070 (1,490,443) 1,080,314 (7,791,014) (5,807,528) 785,217
Capital Contributions
Intergovernmental - - 228,349 2,466,254 - - 2,694,603 -
Privilege fees - - 480,868 - - - 480,868 -
- - 709,217 2,466,254 - - 3,175,471 -
Transfers
Transfers in - - - - 3,196,384 5,510,000 8,706,384 -
Transfers out - - (47,000) - - - (47,000) -
Transfers - - (47,000) - 3,196,384 5,510,000 8,659,384 -
Change in Net Position 274,347 1,790,198 991,287 975,811 4,276,698 (2,281,014) 6,027,327 785,217
Net Position at Beginning of Year,
as restated (See note IV)6,702,761 18,767,478 47,063,733 51,577,911 (6,013,761) 2,495,497 1,570,582
Net Position at End of Year 6,977,108$ 20,557,676$ 48,055,020$ 52,553,722$ (1,737,063)$ 214,483$ 2,355,799$
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 144,215
Changes in net position of business-type activities (page 36)6,171,542$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 43 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2016
Governmental
Activities
Nantucket Our Internal
Siasconset Wannacomet Memorial Island Solid Service
Water Water Sewer Airport Home Waste Total Fund
Cash Flows from Operating Activities:
Receipts from users 1,077,076$ 5,417,301$ 6,496,967$ 12,911,274$ 9,499,878$ 3,743,555$ 39,146,051$ -$
Employee contributions - - - - - - - 2,226,306
Employer contributions - - - - - - - 12,815,730
Receipts from other operating revenues 15,006 339,991 207,727 - 1,375 50 564,149 303,236
Payments to employees - (1,469,810) (1,193,167) (4,311,800) (3,613,921) (20,029) (10,608,727) -
Payments to vendors (206,901) (758,245) (1,610,563) (7,090,230) (4,133,658) (10,410,950) (24,210,547) -
Payments for interfund services used - - - - - - - (15,167,383)
Net Cash Provided by (Used in) Operating
Activities 885,181 3,529,237 3,900,964 1,509,244 1,753,674 (6,687,374) 4,890,926 177,889
Cash Flows from Noncapital Financing Activities:
Operating grants - - - 133,570 - - 133,570 -
Advances (to) from other funds - - - - - - - -
Transfers in - - - - 3,196,384 5,510,000 8,706,384 -
Transfers out - - (47,000) - - - (47,000) -
Net Cash Provided by (Used in) Noncapital
Financing Activities - - (47,000) 133,570 3,196,384 5,510,000 8,792,954 -
Cash Flows from Capital and Related Financing Activities:
Proceeds from the issuance of bonds and notes 490,000 1,561,000 - 144,000 - - 2,195,000 -
Sewer privilege fees - - 503,583 - - - 503,583 -
Proceeds from capital grants - - 410,719 2,869,581 - - 3,280,300 -
Proceeds from sale of assets - 21,065 - - - - 21,065 -
Acquisition and construction of capital assets - (1,562,149) (1,083,322) (5,105,272) (425,512) - (8,176,255) -
Proceeds from bond anticipation notes - 2,562,000 3,896,008 4,248,980 500,000 - 11,206,988 -
Repayments of bond anticipation notes (500,000) (800,000) (1,000,000) (1,717,912) - - (4,017,912) -
Principal payments on bonds and notes (620,000) (1,598,000) (2,542,956) (820,000) - (40,000) (5,620,956) -
Interest payments on bonds and notes (247,521) (649,187) (1,295,670) (406,899) - (17,031) (2,616,308) -
Net Cash Provided by (Used in) Capital and Related
Financing Activities (877,521) (465,271) (1,111,638) (787,522) 74,488 (57,031) (3,224,495) -
Cash Flows from Investing Activities:
Investment income 347 7,354 - 41,091 13,291 1 62,084 14,114
Investment of operating cash - - - - - - - 116,635
Net Cash Provided by Investing Activities 347 7,354 - 41,091 13,291 1 62,084 130,749
Net Change in Cash and Cash Equivalents 8,007 3,071,320 2,742,326 896,383 5,037,837 (1,234,404) 10,521,469 308,638
Cash and Cash Equivalents:
Beginning of the year 1,264,071 2,145,725 8,173,514 9,527,534 4,164,665 2,718,426 27,993,935 2,132,705
End of the year 1,272,078$ 5,217,045$ 10,915,840$ 10,423,917$ 9,202,502$ 1,484,022$ 38,515,404$ 2,441,343$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating Income (Loss)517,746$ 2,379,683$ 1,570,802$ (1,276,613)$ 1,067,023$ (7,774,419)$ (3,515,778)$ 771,103$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 309,633 917,150 2,163,851 2,491,379 92,834 250,009 6,224,856 -
Changes in assets, deferred outflows and liabilities:
Receivables 4,671 (128,314) 22,712 212,856 7,075 (52,532) 66,468 (46,706)
Prepaid items - - - - - - - (1,033,559)
Inventory - 1,788 - (52,652) - - (50,864) -
Deposits held by third party - - - - - - - 1,952,600
Accounts payable and accrued expenses 16,295 145,169 55,340 (383,033) (10,539) (350,432) (527,200) (1,465,549)
Accrued benefits payable 36,836 214,842 88,259 485,966 597,281 - 1,423,184 -
Landfill closure - - - - - 1,240,000 1,240,000 -
Other liabilities - (1,081) - 31,341 - - 30,260 -
Net Cash Provided by (Used in) Operating
Activities 885,181$ 3,529,237$ 3,900,964$ 1,509,244$ 1,753,674$ (6,687,374)$ 4,890,926$ 177,889$
Noncash investing capital and financing activities:
Intergovernmental subsidies of debt service -$ -$ 393,097$ -$ -$ -$ 393,097$ -$
Amortization of bond premiums 5,048 59,799 28,018 27,154 - - 120,019 -
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 44 of 137 Comprehensive Annual Financial Report
TOWN OF NANUCKET, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2016
Other
Postemployment Private
Benefits Purpose Agency
Trust Fund Trust Funds Funds
Assets:
Cash and cash equivalents 31,106$ 1,300,090$ 1,433,565$
Investments 1,310,107 2,230,494 -
Receivables, net of allowance for uncollectibles - - 99,289
Total Assets 1,341,213 3,530,584 1,532,854
Liabilities:
Warrants payable - 3,302 19,221
Accrued payroll and withholdings - - 11,797
Agency liabilities - - 504,979
Planning board deposits - - 996,857
Total Liabilities - 3,302 1,532,854
Net Position:
Held in trust for other postemployment benefits 1,341,213 - -
Held in trust for private purposes - 3,527,282 -
Total Net Position 1,341,213$ 3,527,282$ -$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 45 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2016
Other
Postemployment Private
Benefits Purpose
Trust Fund Trust Funds
Additions
Contributions:
Employee 415,776$-$
Employer 3,004,025 -
Other -1,044,435
Total contributions 3,419,801 1,044,435
Investment income:
Interest and dividends 27,132 52,656
Net earnings on investments 48,087 26,760
Net investment earnings 75,219 79,416
Other income -436,573
Total Additions (net)3,495,020 1,560,424
Deductions
Life and health insurance premiums paid for retirees 2,919,801 -
Education - scholarships -125,415
Health and human services - public assistance -280,410
Total Deductions 2,919,801 405,825
CHANGE IN NET POSITION 575,219 1,154,599
NET POSITION AT BEGINNING OF YEAR 765,994 2,372,683
NET POSITION AT END OF YEAR 1,341,213$3,527,282$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 46 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2016
I. Summary of Significant Accounting Policies
The accompanying basic financial statements of the Town have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to state and local governments. GAAP
is prescribed by the Governmental Accounting Standards Board (GASB), which is the primary
standard-setting body for state and local government entities. The following is a summary of the more
significant policies and practices used by the Town:
A. Reporting Entity
The Town is located in Nantucket County, twenty-five miles south of Cape Cod and was incorporated
as a Town in 1671. An elected five member Board of Selectmen (“Selectmen”) governs the Town
and an appointed Town Manager oversees the Town’s daily executive and administrative duties. The
Town provides governmental services for the territory within its boundaries, including police and fire
protection, public education in grades K-12, water and sewer services, solid waste disposal, street
maintenance, elderly housing, parks and recreational facilities and an airport.
Discretely Presented Component Units – The Town includes two entities as component units in the
Town's reporting entity because of the significance of their operations or financial relationships with
the Town are such that exclusion would cause the basic financial statements to be misleading. Unless
otherwise indicated, the notes to the basic financial statements pertain only to the primary
government. A description of the discretely presented component units is as follows:
Nantucket County – The County of Nantucket (“the County”) is presented in a separate column to
emphasize that it is legally separate from the Town but included because the County shares the
same geographical boundaries as the Town and (1) the economic resources received or held are
entirely for the benefit of the Town and its constituents, (2) the Town has the ability to access the
economic resources of the County, and (3) those economic resources are significant to the Town
therefore exclusion would cause the financial statements to be misleading. The County
Commissioners consist of a five-member elected board which operates a Registry of Deeds and
Corrections Office. Complete stand-alone financial statements as of June 30, 2016 may be
obtained at the County of Nantucket, 16 Broad Street Nantucket, Massachusetts 02554
Nantucket Islands Land Bank – The Nantucket Islands Land Bank (“the Land Bank”) was created
by Chapter 669 of the Acts of 1983 of the Commonwealth of Massachusetts to acquire and
manage open space and protect natural resources in Nantucket County. The Land Bank is
administered by the Nantucket Islands Land Bank Commission, which is comprised of five
elected members. It is legally separate from the Town but presented as a discrete component unit
due to (1) the economic resources received or held are entirely for the benefit of the Town and its constituents, (2) the Town has the ability to access those economic resources, and (3) those economic resources are significant to the Town therefore exclusion would cause the financial statements to be misleading. Complete stand-alone financial statements as of June 30, 2016 may
be obtained at Nantucket Islands Land Bank, 22 Broad Street, Nantucket, Massachusetts 02554.
Availability of Financial Information of Certain Town Enterprise Funds – The Nantucket Memorial
Airport issues separate stand-alone financial statements which may be obtained by contacting the
Airport Commission at 14 Airport Road, Nantucket, MA 02554.
Town of Nantucket, Massachusetts Page 47 of 137 Comprehensive Annual Financial Report
B. Government-Wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements, except interfund services provided and used are not eliminated in the process of consolidation. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for support. Likewise the primary government is reported separately from the legally
separate component units for which the primary government is financially accountable.
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the fiduciary funds are excluded from the government-wide
financial statements. Major individual government funds and major individual enterprise funds
are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated
and presented in a single column.
Major Fund Criteria – Major funds must be reported if both of the following criteria are met:
1) The total assets and deferred outflows of resources, liabilities and deferred inflows of
resources, revenues, or expenditures/expenses of an individual governmental or
enterprise fund are at least ten percent of the corresponding total for all funds of that
category or type, and
2) The total assets and deferred outflows of resources, liabilities and deferred inflows of
resources, revenues, or expenditures/expenses of the individual governmental fund or
enterprise fund are at least five 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.
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
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 a liability is incurred, regardless of the
timing of related cash flows. 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 are met.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include: 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
Town of Nantucket, Massachusetts Page 48 of 137 Comprehensive Annual Financial Report
The governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized when
susceptible to accrual (i.e. measurable and available). Revenues are considered to be available
when they are 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, certain
compensated absences, claims and judgments which are recognized when the obligations are due
and payable.
The Town applies the susceptible to accrual criteria to intergovernmental revenues. In applying
the susceptible to accrual concept, there are two types of revenues. In one, moneys must be
expended for a specific purpose or project before any amounts will be paid to the; therefore,
revenues are recognized as expenditures are incurred. In the other, moneys are virtually
unrestricted and are usually revocable only for failure to comply with prescribed requirements.
These resources are reflected as revenues when cash is received, or earlier if the susceptible to
accrual criteria are met. State aid is accrued as revenue in the year that the funds are appropriated
by the Commonwealth.
The Town considers property tax revenues to be available if they are collected within 60 days
after the end of the fiscal year and are material. Investment income associated with the current
fiscal period is susceptible to accrual and has been recognized as revenue of the current fiscal
period. All other revenue items are considered to be measurable and available only when the
cash is received and are recognized as revenue at that time.
The government reports the following major Governmental Funds:
General Fund – is the government’s primary operating fund. It accounts for all financial
resources of the general government except those required to be accounted for in another
fund.
Town Capital Projects Fund – is used to account for all financial resources that are restricted,
committed or assigned for the acquisition or construction of capital facilities and other capital
assets of the governmental funds.
Nonmajor Governmental Funds – consist of other special revenue and permanent funds that
are aggregated and presented in the Nonmajor Governmental Funds column on the
Governmental Funds financial statements. The following describes the general use of these
fund types:
The Special Revenue Funds are used to account for the proceeds of specific revenue sources
that are restricted or committed to expenditures for specified purposes other than debt service
or capital projects.
The Permanent Funds are used to account for financial resources that are restricted to the
extent that only earnings, not principal, may be used for purposes that support the
governmental programs.
The proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Under this method, revenues are
recognized when earned and expenses are recorded when the liabilities are incurred.
Town of Nantucket, Massachusetts Page 49 of 137 Comprehensive Annual Financial Report
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues are user charges and fees, while operating expenses consist of
salaries, ordinary maintenance, assessments and depreciation. All revenues and expenses not
meeting this definition are reported as non-operating revenues and expenses.
The government reports the following major proprietary funds:
Siasconset Water Enterprise Fund – is used to account for the operations of the Town’s water
activities in the Siasconset service area of the Town.
Wannacomet Water Enterprise Fund – is used to account for the operations of the Town’s
water activities in the remaining service areas of the Town.
Sewer Enterprise Fund – is used to account for the operations of the Town’s sewer activities.
Nantucket Memorial Airport Enterprise Fund – is used to account for the operations of the
Town’s airport.
Our Island Home Enterprise Fund – is used to account for the operations of Town’s nursing
home activities.
Solid Waste Enterprise Fund – is used to account for the operations of the Town’s solid waste
activities.
Additionally, the following proprietary fund type is reported:
Internal Service Fund – is used to account for the Town’s self-insured health insurance and
workers’ compensation activities. Because these services primarily benefit governmental
rather than business-type activities, they have been included within governmental activities in
the government-wide financial statements.
Fiduciary fund financial statements are reported using the economic resources measurement focus
and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a
trustee capacity and cannot be used to support the governmental programs.
The government reports the following fiduciary funds:
Other Postemployment Benefits Trust Fund – is used to accumulate funds for future payments
of other postemployment benefits for retirees, such as health and life insurance.
Private Purpose Trust Fund – is used to account for trust arrangements under which the
principal and income benefit individuals, private organizations or other governments. This
fund is used for scholarships and affordable housing programs.
Agency Fund – is used to account for assets held in a purely custodial capacity. The Town’s
agency funds consist primarily of student activities, off-duty work details, escrow and other
deposits.
Town of Nantucket, Massachusetts Page 50 of 137 Comprehensive Annual Financial Report
D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Equity
Deposits and Investments – The Town’s cash and cash equivalents are considered to be cash on
hand, demand deposits, and short-term investments with original maturities of three months or
less from the date of acquisition.
Investments of the Town and its component units are recorded at fair value in accordance with
GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in
fair value of investments is recognized as an increase or decrease to investment assets and
investment income.
Receivables – Real estate and personal property taxes are assessed on January 1 every year. Bills
are sent quarterly and are due on August 1, November 1, February 1, and May 1, or thirty days
subsequent to the mailing date. Interest accrues on delinquent taxes at the rate of 14% per
annum. Property taxes levied are recorded as receivables in the fiscal year of the levy. The Town
is allowed to take delinquent taxes into tax title fourteen days subsequent to the mailing of a
demand for payment of the delinquent taxes.
User charges receivables represent amounts billed for water, sewer, monthly landfill tipping fees,
annual commercial landfill user fees, airport travel and fuel sales and nursing home fees. Water
and sewer charges are billed monthly and are subject to penalties and interest if not paid by the
respective due date. The Town is authorized to take water and sewer fees into tax title fourteen
days subsequent to the mailing of a demand for payment of the delinquent taxes.
Real estate taxes, water user fees and sewer user fees that are secured through a lien process are
considered 100% collectible. Accordingly, an allowance for uncollectible balances for these
receivables is not reported. All personal property tax and excise tax receivables are shown net of
an allowance for uncollectible balances comprised of those outstanding amounts greater than five
years old. Departmental, landfill, airport and nursing home receivables are shown net of an
allowance for uncollectible balances based on historical trends and specific account analysis.
Sewer privilege fees represent betterments assessed to property owners related to upgrades to the
Surfside Wastewater Treatment Plant. These are considered 100% collectible since they are
secured through a lien on the owner’s property.
Inventories and Prepaid Items – Inventories of the Wannacomet Water Enterprise Fund and
Nantucket Memorial Airport Enterprise Fund are valued at the lower of cost or market, with cost
determined on a first-in, first out basis. Certain supplies and small tools are expensed when
purchased.
All other inventories, which are not material to the basic financial statements, are considered to
be expenditures at the time of purchase.
Restricted Assets – Certain assets of the component units are classified as restricted because their
use is restricted by contract covenants.
Capital Assets – Capital assets, which include land, land improvements, buildings and
improvements, machinery and equipment, vehicles and infrastructure (e.g. roads, water and sewer
mains, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded
Town of Nantucket, Massachusetts Page 51 of 137 Comprehensive Annual Financial Report
at the estimated fair market value at the date of donation. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed.
All purchases and construction costs in excess of $10,000 are capitalized at the date of acquisition
or construction, respectively, with expected lives of greater than one year. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized.
Capital assets (excluding land and construction-in-process) are depreciated on a straight-line-
basis. The estimated useful lives of capital assets being depreciated are as follows:
Buildings and improvements 33-50 years
Machinery and equipment 5-7 years
Vehicles 5-10 years
Infrastructure 40-70 years
Interfund Balances – Activity between funds that are representative of lending arrangements
outstanding at the end of the fiscal year are referred to as either due to/from other funds or
advances to/from other funds. All other outstanding balances between funds are reported as due
to/from other funds.
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as internal balances.
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 in the
individual fund statements. Transfers between and within governmental and fiduciary funds are
eliminated from the governmental activities in the statement of activities. Any residual balances
outstanding between the governmental activities and the business –type activities are reported in
the statement of activities as transfers, net.
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
state law. Investment income of the proprietary funds is assigned to the fund within which it
applies.
Compensated Absences – It is the Town’s policy to permit employees to accumulate earned but
unused sick pay benefits. Vacation time may be carried for a period of 6 months subsequent to
year-end and if not used during this period is lost. Compensated absence liabilities related to both
governmental and business-type activities are normally paid from the funds reporting payroll and
related expenditures. Amounts related to these benefits are accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is
reported in Governmental Funds only if they have matured.
Long-term Obligations – Long-term debt is reported as a liability in the government-wide and
proprietary fund statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bond anticipation notes
payable are reported net of the applicable bond premium or discount.
Town of Nantucket, Massachusetts Page 52 of 137 Comprehensive Annual Financial Report
In the governmental fund financial statements, the face amount of long-term debt issued is
reported as other financing sources. Premiums received on a debt issuance are reported as other
financing sources while discounts are reported as other financing uses. Issuance costs are
exclusively reported as general government expenditures regardless of whether they are withheld
from the actual proceeds.
Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial position
will sometimes report a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The Town has one type of item that is reported on the
government-wide statement of net position which relate to outflows from changes in the net
pension liability. The deferred pensions will be recognized in pension expense in future years as
more fully described in Note III, subsection A.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s) and
thus will not be recognized as an inflow of resources (revenue) until that time. The Town has
only one type of item, which arises only under a modified accrual basis of accounting, which
qualifies for reporting in this category. Accordingly, the item unavailable revenue is reported only
in the governmental funds balance sheet. The governmental funds report unavailable revenue
from two sources: property taxes and other. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available.
Net Position – In the government-wide financial statements, net position reported as “Net
investment in capital assets” 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 related debt.
Net position is reported as restricted when amounts are not available for appropriation or are
legally restricted by outside parties for a specific use. Net position has been restricted for the
following:
Nonexpendable permanent funds represent the endowment portion of donor restricted trusts
that support governmental programs.
Federal and State grants represent assets that have restrictions placed on them from federal
and state granting agencies.
Community preservation represents assets that are restricted by state law for the purposes of
acquiring or developing open space and recreational facilities, historic resources and
affordable housing.
Capital outlay represents assets that are restricted for the purposes of funding capital projects.
Public safety revolving funds represent assets that have accumulated from user charges
assessed to support specific public safety programs. These amounts are restricted by state
law for the purpose of funding those programs for which the user charges were assessed.
Gift funds represent assets that are restricted by donors for specific purposes.
Town of Nantucket, Massachusetts Page 53 of 137 Comprehensive Annual Financial Report
Other purposes represent assets that are restricted for numerous various minor specific
governmental programs and uses.
Fund Equity – In the fund financial statements, fund balance for governmental funds is reported
in classifications that comprise a hierarchy based primarily on the extent in which the Town is
required to honor constraints on the specific purpose for which amounts in the funds can be spent.
Fund balance is reported in five components – nonspendable, restricted, committed, assigned, and
unassigned as described below:
Nonspendable represents amounts that cannot be spent because they are either (a) not in
spendable form (i.e. inventory or prepaid) or (b) legally or contractually required to be
maintained intact such as the corpus of an endowment.
Restricted represents amounts that have constraints placed either externally by third-parties
(creditors, grantors, contributors, or laws or regulations of other governments) or by law
through constitutional provisions or enabling legislation. Enabling legislation authorizes the
Town to assess, levy, charge or otherwise mandate payment of resources (from external
resource providers) and includes a legally enforceable requirement (compelled by external
parties) that those resources be used only for the specific purposes stipulated in the
legislation.
Committed represents amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the Town Meeting through Town Meeting Articles,
which represent the most binding constraint that give rise to committed fund balance. Those
committed amounts cannot be used for any other purpose unless the Town Meeting removes
or changes the specified use by taking the same type of action (through Town Meeting
Articles) it employed previously to commit those amounts.
Assigned represents amounts that are constrained by the Town’s intent to be used for
specific purposes, but are neither restricted nor committed. The Town has by ordinance
authorized the Director of Municipal Finance to assign fund balance. The Town Meeting
may also assign fund balance as it does when appropriating fund balance to cover a gap
between estimated revenue and appropriations in the subsequent year’s appropriated budget.
Unassigned represents amounts that have not been restricted, committed or assigned to
specific purposes within the general fund. The general fund is the only fund that reports a
positive unassigned fund balance amount. Other governmental funds besides the general
fund can only report a negative unassigned fund balance amount.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to
use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as
they are needed. When unrestricted resources (committed, assigned and unassigned) are available
for use it is the Town’s policy to use committed resources first, then assigned, and then
unassigned as they are needed.
The Town has not established financial policies with respect to maintaining minimum fund
balance amounts.
Town of Nantucket, Massachusetts Page 54 of 137 Comprehensive Annual Financial Report
Stabilization Fund – The Town maintains a general stabilization fund which may be used for any
municipal purpose upon a two-thirds vote of the Town Meeting. The balance of the fund totals
$5,044,555 at June 30, 2016 and is reported as unassigned fund balance in the General Fund.
The Town maintains a capital stabilization fund which may be used for any municipal capital
purpose upon a two-thirds vote of the Town Meeting. The balance of the fund totals $1,250,000
at June 30, 2016 and is reported as unassigned fund balance in the General Fund.
Encumbrances – The Town’s encumbrance policy regarding the general fund is to (1) classify
encumbrances that arise from the issuance of purchase orders resulting from normal purchasing
activity approved by the Director of Finance as assigned, and (2) classify encumbrances that
result from an action of the Town Meeting as committed. Encumbrances of funds already
restricted, or committed are included within the classification of those fund balances and not
reported separately. The Town reports $2,546,391 of encumbrances from normal purchasing
activity in the general fund as assigned and $2,267,807 of encumbrances from Town Meeting
Articles in the general fund as committed. There are no encumbrances reported in any other fund.
The following table reflects the Town’s fund equity categorizations:
Town Nonmajor
Capital Governmental
General Projects Funds Total
Nonspendable:
Nonexpendable trust funds -$ -$ 44,805$ 44,805$
Restricted:
School grants - - 743,839 743,839
Town grants - - 678,844 678,844
School revolving - - 1,014,112 1,014,112
Town revolving - - 4,705,500 4,705,500
Capital outlay - 13,186,251 1,602,555 14,788,806
Community preservation - - 4,497,164 4,497,164
Gift funds - - 535,700 535,700
Expendable trust funds - - 122,392 122,392
Debt service 414,514 - - 414,514
Committed:
Capital outlay 2,183,793 - - 2,183,793
Other purposes 84,014 - - 84,014
Assigned:
Purchase orders 2,546,391 - - 2,546,391
Subsequent years' budget 482,260 - - 482,260
Unassigned 17,571,873 (17,737,453) - (165,580)
23,282,845$ (4,551,202)$ 13,944,911$ 32,676,554$
Town of Nantucket, Massachusetts Page 55 of 137 Comprehensive Annual Financial Report
E. Excess of Expenditures Over Appropriations
During the fiscal year ended, the Town overspent its appropriation for snow and ice removal costs
by $272,825. This will be raised through subsequent tax assessments when the Town sets its tax
rate for fiscal year 2017.
The Town incurred deficits of $17,737,453 which is reported in the Town Capital Projects major
fund. These deficits will be funded through available revenues, grant funds or bond proceeds in
future fiscal years.
F. Use of Estimates
The preparation of basic financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets, deferred outflows,
liabilities, deferred inflows, disclosure for contingent assets and liabilities at the date of the basic
financial statements and the reported amounts of revenues and expenditures/expenses during the
fiscal year. Actual results could vary from estimates that were used.
II. Detailed Notes to All Funds
A. Deposits 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 trust funds are held separately from those of other funds.
State laws and regulations require the Town to invest funds only in pre-approved investment
instruments which include but are not necessarily limited to bank deposits, money markets,
certificates of deposit, U.S. obligations, repurchase agreements, and State Treasurer’s investment
pool (the Pool). In addition, the statutes impose various limitations on the amount and length of
investments and deposits. Repurchase agreements cannot be for a period of over ninety days, and
the underlying security must be a United States obligation.
The Pool meets the criteria of an external investment pool. The Pool is administered by the
Massachusetts Municipal Depository Trust (the 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.
Primary Government (Town)
Custodial Credit Risk: Deposits - In the case of deposits, this is the risk that in the event of a bank
failure, the government’s deposits may not be returned to it. The Town has adopted a deposit
policy which requires that the Treasurer review each bank doing business with the Town on a
quarterly basis. The policy does not restrict the value of uninsured or uncollateralized
investments held at any time.
At year-end, the carrying amount of the Town's deposits was $107,048,792 and the bank balance
was $107,839,428. Of the Town's bank balance, $97,535,114 was covered by federal depository
insurance or the Depositors Insurance Fund (“DIF”), and the remainder was fully collateralized.
Town of Nantucket, Massachusetts Page 56 of 137 Comprehensive Annual Financial Report
Custodial Credit Risk: Investments – In the case of investments, this is the risk that in the event of
the invested party not being able to provide required payments to investors, ceasing to exist, or
filing of bankruptcy, the Town may not be able to recover the full amount of its principal
investment and/or investment earnings. The Town has adopted an investment policy regarding
custodial credit risk that requires all securities not held directly by the Treasurer must be held by
a third party custodian approved by the Treasurer in the Town’s name and tax identification
number.
The Town’s investments of $2,261,406 in U.S. government obligations, $4,560,883 in corporate
debt securities and $584,688 in equity securities are held by a broker-dealer where the Town’s
assets are segregated from the broker-dealer firm assets and are protected up to $500,000 under
coverage through the Securities Investor Protection Corporation (“SIPC”). Additionally, the
broker-dealer carries excess insurance to cover claims over the SIPC limit through Lloyd’s with a
firm cap of $1 billion with no individual client limit.
Fair Value of Investments – The Town reports its investments at fair value. When actively
quoted observable prices are not available, the Town generally uses either implied pricing from
similar investments or valuation models based on net present values of estimated future cash
flows (adjusted as appropriate for liquidity, credit, market and/or other risk factors).
The Town categorizes its fair value measurements within the fair value hierarchy established by
GAAP. This hierarchy is based on valuation inputs used to measure the fair value of the asset or
liability. The three levels of the hierarchy are as follows:
Level 1 – Inputs are quoted prices in active markets for identical investments at the
measurement date.
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or
indirectly observable for the investment through correlation with market data at the
measurement date and for the duration of the instrument’s anticipated life.
Level 3 – Inputs reflect the Town’s best estimate of what market participants would use
in pricing the investment at the measurement date.
The following table presents the Town’s investments carried at fair value on a recurring basis in
the statement of net position at June 30, 2016:
6/30/16 Level 1 Level 2 Level 3
Investments by fair value level
Debt securities:
U.S. Government obligations 2,261,406$ 2,261,406$ -$ -$
Corporate bonds 4,560,883 4,560,883 - -
MMDT 2,970,182 - 2,970,182 -
Negotiable certificates of deposit 2,642,765 - 2,642,765 -
Total debt securities 12,435,236 6,822,289 5,612,947 -
Equity securities:
Common stock 584,688 584,688 - -
Total equity securities 584,688 584,688 - -
Total investments by fair value level 13,019,924$ 7,406,977$ 5,612,947$ -$
Fair Value Measurements Using
Town of Nantucket, Massachusetts Page 57 of 137 Comprehensive Annual Financial Report
Debt and equity securities classified in Level 1 are valued using prices quoted in active markets
for those securities. Negotiable certificates of deposit are valued using pricing based on the
securities’ relationship to benchmark quoted prices. The State Treasurer’s investment pool
(MMDT) is classified in Level 2 based on the composition and fair value of the underlying
investments contained within this pool, which can be determined using inputs other than quoted
prices that are observable either directly or indirectly.
Interest Rate Risk – The Town limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The policy limits investments of
operating funds to one year or less and limits investment maturities of trust funds and other
special funds to periods no longer that seven years, maintaining an average maturity no greater
than three years for the investment portfolio.
At June 30, 2016, the Town’s investments had the following maturities:
Concentration of Credit Risk – The Town does not place a limit on the amount that may be
invested in any one issuer. The Town has 23% of its investments in the MMDT and 17% of its
investments in United States government backed securities. No other issuer was greater than 5%
of the Town’s investments.
Credit Risk – The Town restricts the investment of operating funds to U.S. Treasury or Agency
securities which carry “AAA” ratings. Trust and other special funds which are longer-term
investments may invest in fixed-income securities which are held principally for capital
preservation and income potential and corporate debt that carries a rating of “A” or better by
either Standard and Poor’s or Moody’s rating services. If a security falls below the “A” rating,
the security will be monitored by the Treasurer and advisor and will be noted as an exception to
the policy if held in the investment portfolio. The Treasurer will sell the securities if a decline in
value is expected.
Time Until Maturity (Years)
Less More
Investment Type 6/30/16 Than 1 1-5 6-10 Than 10
Corporate fixed income securities 4,560,883$ -$ 3,157,568$ 970,935$ 432,380$
U.S. government obligations 2,261,406 411,396 1,850,010 - -
Certificates of deposit 2,642,765 381,971 1,699,275 561,519 -
State investment pool (MMDT)2,970,182 2,970,182 - - -
Total Town investments with maturities 12,435,236 3,763,549$ 6,706,853$ 1,532,454$ 432,380$
Other investments:
Equities 584,688
Total Town investments 13,019,924$
Town of Nantucket, Massachusetts Page 58 of 137 Comprehensive Annual Financial Report
At June 30, 2016, the credit quality ratings of investments were as follows:
Discretely Presented Component Unit – Nantucket County
Custodial Credit Risk: Deposits- The County has adopted a deposit policy which requires that the
Treasurer review each bank doing business with the County on a quarterly basis. The policy does
not restrict the value of uninsured or uncollateralized investments held at any time.
At year-end, the carrying amount of the County's deposits was $4,126,075 and the bank balance
of $4,135,784 was covered by federal depository insurance or fully collateralized.
Custodial Credit Risk: Investments- The County has adopted an investment policy regarding
custodial credit risk that requires all securities not held directly by the Treasurer must be held by
a third party custodian approved by the Treasurer in the Town/County’s name and tax
identification number
At year-end, the County’s investments consisted of Certificates of Deposit totaling $49,958 which
were covered by federal depository insurance and were not subject to custodial credit risk. These
are recorded as cash equivalents at June 30, 2016.
Interest Rate Risk - The County limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The policy limits investments of
operating funds to one year or less and limits investment maturities of trust funds and other
special funds to periods no longer that seven years, maintaining an average maturity no greater
than three years for the investment portfolio
Credit Risk - The County restricts the investment of operating funds to U.S. Treasury or Agency
securities which carry “AAA” ratings. Trust and other special funds which are longer-term
investments may invest in fixed-income securities which are held principally for capital
preservation and income potential and corporate debt that carries a rating of “A” or better by
either Standard and Poor’s or Moody’s rating services. If a security falls below the “A” rating,
the security will be monitored by the Treasurer and advisor and will be noted as an exception to
the policy if held in the investment portfolio. The Treasurer will sell the securities if a decline in
value is expected.
Corporate U.S. Government State
Fixed Income Agencies & Certificates Investment
Securities Treasuries Of Deposit Pool Total
AA+265,100$ 2,261,406$ -$ -$ 2,526,506$
AA-212,200 - - - 212,200
A+ 219,692 - - - 219,692
A 2,272,224 - - - 2,272,224
A-123,648 - - - 123,648
BBB+789,685 - - - 789,685
BBB 678,334 - - - 678,334
Not Rated - - 2,642,765 2,970,182 5,612,947
Total - All 4,560,883$ 2,261,406$ 2,642,765$ 2,970,182$ 12,435,236$
Town of Nantucket, Massachusetts Page 59 of 137 Comprehensive Annual Financial Report
Concentration of Credit Risk – The County does not place a limit on the amount that may be
invested in any one issuer.
Discretely Presented Component Unit – Nantucket Islands Land Bank
Custodial Credit Risk: Deposits -The Land Bank does not have a policy regarding custodial credit
risk for deposits. At year-end, the carrying amount of the Land Bank’s deposits was
approximately $11,090,000, of which approximately $1,121,000 was exposed to custodial credit
risk.
The Land Bank is required to hold monies in reserve in accordance with certain land acquisitions
and debt service requirements of bond issuances. These reserve funds are included as restricted
cash in the financial statements. Restricted Cash consist of the following as of June 30, 2016:
Series A Debt Reserve $1,333,368
Mitigation agreements 259,996
Life insurance premium 211,964
$1,805,328
Custodial Credit Risk: Investments -The Land Bank does not have a policy regarding custodial
credit risk for investments.
At year-end, the Land Bank’s investments include Certificates of Deposit totaling $4,752,966
which were covered by federal depository insurance or DIF and were not subject to custodial
credit risk, mature in less than one year, are stated at fair market value and are unrated in terms of
credit risk quality ratings. The Land Bank also maintains investments in U.S Treasury bonds
totaling $2,901,631 which mature in May 2022 and have a Moody’s quality rating of AAA.
At June 30, 2016, all investments are categorized in Level 1 of the fair value hierarchy based on
quoted market prices.
The Land Bank has entered into an agreement with the Town, which requires the Land Bank to
establish a working capital reserve fund. This fund, along with the guarantee of the Town of its
full faith and credit, secures the Series 2007A, Series 2009A and Series 2012A bonds outstanding
at year-end. 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 relating to the bonds in the reserve fund is
not on deposit.
Interest Rate Risk -The Land Bank does not have a formal policy regarding interest rate risk.
B. Receivables
Massachusetts Clean Water Trust – The Town has entered into numerous loan agreements with
the Massachusetts Clean Water Trust (“MCWT”). It is expected that the Town will be subsidized
by MCWT on a periodic basis for principal in the amount of $1,542,881 and interest in the
amount of $910,087 until the maturity of these agreements. GAAP requires the recognition of
gross debt relative to these agreements; therefore, a receivable totaling $1,542,881 has been
reported in the Sewer Enterprise Fund.
Town of Nantucket, Massachusetts Page 60 of 137 Comprehensive Annual Financial Report
Receivables as of year-end for the Town’s individual major and non-major governmental funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Receivables as of year-end for the Town’s proprietary funds are as follows:
Governmental funds report deferred inflows of resources in connection with receivables for
revenues that are not considered to be available to liquate liabilities of the current period. The
following identifies the components of deferred inflows of resources in the governmental funds:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes 2,565,687$ (293,145)$ 2,272,542$
Tax liens 2,737,748 - 2,737,748
Motor vehicle and other excise taxes 1,571,587 (545,053) 1,026,534
Ambulance user charges 312,637 (155,000) 157,637
Departmental and other 30,060 - 30,060
Intergovernmental 647,545 - 647,545
Total 7,865,264$ (993,198)$ 6,872,066$
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Water user charges 822,241$ -$ 822,241$
Sewer user charges 847,954 - 847,954
Sewer privilege fees 425,653 - 425,653
Airport user charges 308,254 (5,000) 303,254
Our Island Home user charges 330,833 - 330,833
Solid waste user charges 688,745 - 688,745
Stop loss receivable 197,238 - 197,238
Intergovernmental 1,542,881 - 1,542,881
Total 5,163,799$ (5,000)$ 5,158,799$
Other
General Governmental
Fund Funds Total
Receivable type:
Real estate and personal property taxes 1,601,151$ 115,134$ 1,716,285$
Tax liens 2,692,316 45,432 2,737,748
Motor vehicle and other excise taxes 469,933 - 469,933
Ambulance user charges - 157,637 157,637
Departmental and other 30,060 - 30,060
Total 4,793,460$ 318,203$ 5,111,663$
Town of Nantucket, Massachusetts Page 61 of 137 Comprehensive Annual Financial Report
C. Capital Assets
Capital asset activity for the year ended June 30, 2016, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land * 165,654,249$ 950,895$ (2,659,667)$ 163,945,477$
Construction in process 14,325,019 22,320,632 (3,524,841) 33,120,810
Total capital assets not being depreciated 179,979,268 23,271,527 (6,184,508) 197,066,287
Capital assets being depreciated:
Buildings and improvements 55,218,763 310,413 (22,641) 55,506,535
Infrastructure 34,876,150 1,498,511 - 36,374,661
Machinery and equipment * 7,100,882 3,862,770 (806,810) 10,156,842
Vehicles * 8,480,062 679,735 (1,215,552) 7,944,245
Total capital assets being depreciated 105,675,857 6,351,429 (2,045,003) 109,982,283
Less accumulated depreciation for:
Buildings and improvements (21,867,393) (1,455,410) 22,641 (23,300,162)
Infrastructure (21,188,128) (1,106,159) - (22,294,287)
Machinery and equipment * (3,468,546) (1,194,925) 806,810 (3,856,661)
Vehicles * (6,425,976) (531,131) 1,215,552 (5,741,555)
Total accumulated depreciation (52,950,043) (4,287,625) 2,045,003 (55,192,665)
Total capital assets being depreciated, net 52,725,814 2,063,804 - 54,789,618
Total governmental activities capital assets, net 232,705,082$ 25,335,331$ (6,184,508)$ 251,855,905$
Business-Type Activities:
Capital assets not being depreciated:
Land * 20,408,400$ -$ (21,065)$ 20,387,335$
Construction in process * 17,842,290 6,236,970 (7,534,651) 16,544,609
Total capital assets not being depreciated 38,250,690 6,236,970 (7,555,716) 36,931,944
Capital assets being depreciated:
Buildings and improvements * 59,738,695 5,780,803 (218,002) 65,301,496
Infrastructure 164,533,023 899,415 (54,464) 165,377,974
Machinery and equipment * 22,984,384 1,698,113 (202,672) 24,479,825
Vehicles * 4,452,733 1,095,605 (80,076) 5,468,262
Total capital assets being depreciated 251,708,835 9,473,936 (555,214) 260,627,557
Less accumulated depreciation for:
Buildings and improvements (14,210,301) (1,553,906) 218,002 (15,546,205)
Infrastructure (47,618,413) (3,699,543) 54,464 (51,263,492)
Machinery and equipment * (16,253,334) (780,753) 202,672 (16,831,415)
Vehicles * (3,758,772) (190,654) 80,076 (3,869,350)
Total accumulated depreciation (81,840,820) (6,224,856) 555,214 (87,510,462)
Total capital assets being depreciated, net 169,868,015 3,249,080 - 173,117,095
Total business-type activities capital assets, net 208,118,705$ 9,486,050$ (7,555,716)$ 210,049,039$
* As restated.
Town of Nantucket, Massachusetts Page 62 of 137 Comprehensive Annual Financial Report
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities: Siasconset Water
Capital assets not being depreciated:
Land 2,615,578$ -$ -$ 2,615,578$
Construction in process 1,147,003 - (1,147,003) -
Total capital assets not being depreciated 3,762,581 - (1,147,003) 2,615,578
Capital assets being depreciated:
Buildings and improvements 364,855$ 648,474$ (205,030)$ 808,299$
Infrastructure 9,890,167 - (32,043) 9,858,124
Machinery and equipment 76,796 498,529 (50,164) 525,161
Total capital assets being depreciated 10,331,818 1,147,003 (287,237) 11,191,584
Less accumulated depreciation for:
Buildings and improvements (228,771) (83,663) 205,030 (107,404)
Infrastructure (1,330,440) (193,524) 32,043 (1,491,921)
Machinery and equipment (56,813) (32,446) 50,164 (39,095)
Total accumulated depreciation (1,616,024) (309,633) 287,237 (1,638,420)
Total capital assets being depreciated, net 8,715,794 837,370 - 9,553,164
Total Siasconset Water capital assets, net 12,478,375$ 837,370$ (1,147,003)$ 12,168,742$
Business-type Activities: Wannacomet Water
Capital assets not being depreciated:
Land * 5,643,310$ -$ (21,065)$ 5,622,245$
Construction in process * 369,372 897,698 - 1,267,070
Total capital assets not being depreciated 6,012,682 897,698 (21,065) 6,889,315
Capital assets being depreciated:
Buildings and improvements * 2,284,158 - (12,972) 2,271,186
Infrastructure 35,701,370 493,371 (22,421) 36,172,320
Machinery and equipment 3,611,471 98,006 (128,611) 3,580,866
Vehicles 212,844 73,074 (30,644) 255,274
Total capital assets being depreciated 41,809,843 664,451 (194,648) 42,279,646
Less accumulated depreciation for:
Buildings and improvements (469,832) (44,782) 12,972 (501,642)
Infrastructure (6,877,653) (729,727) 22,421 (7,584,959)
Machinery and equipment (1,675,781) (135,333) 128,611 (1,682,503)
Vehicles (212,844) (7,308) 30,644 (189,508)
Total accumulated depreciation (9,236,110) (917,150) 194,648 (9,958,612)
Total capital assets being depreciated, net 32,573,733 (252,699) - 32,321,034
Total Wannacomet Water capital assets, net 38,586,415$ 644,999$ (21,065)$ 39,210,349$
* As restated.
Town of Nantucket, Massachusetts Page 63 of 137 Comprehensive Annual Financial Report
Beginning Ending
Business-type Activities: Sewer Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 6,375,583$ -$ -$ 6,375,583$
Construction in process 7,931,466 780,524 (91,099) 8,620,891
Total capital assets not being depreciated 14,307,049 780,524 (91,099) 14,996,474
Capital assets being depreciated:
Buildings and improvements 271,701 106,489 - 378,190
Infrastructure 82,962,990 - - 82,962,990
Machinery and equipment 15,713,546 287,408 - 16,000,954
Vehicles 1,009,568 - - 1,009,568
Total capital assets being depreciated 99,957,805 393,897 - 100,351,702
Less accumulated depreciation for:
Buildings and improvements (156,683) (10,533) - (167,216)
Infrastructure (17,548,503) (1,676,874) - (19,225,377)
Machinery and equipment (11,838,675) (396,529) - (12,235,204)
Vehicles (454,823) (79,915) - (534,738)
Total accumulated depreciation (29,998,684) (2,163,851) - (32,162,535)
Total capital assets being depreciated, net 69,959,121 (1,769,954) - 68,189,167
Total Sewer capital assets, net 84,266,170$ (989,430)$ (91,099)$ 83,185,641$
Capital assets not being depreciated:
Land 2,736,587$ -$ -$ 2,736,587$
Construction in process 8,174,583 4,371,148 (6,076,683) 6,469,048
Total capital assets not being depreciated 10,911,170 4,371,148 (6,076,683) 9,205,635
Capital assets being depreciated:
Infrastructure 35,201,013 406,044 - 35,607,057
Buildings and improvements 45,796,546 4,712,336 - 50,508,882
Machinery and equipment * 2,065,350 717,011 (23,897) 2,758,464
Vehicles * 3,111,238 975,416 (49,432) 4,037,222
Total capital assets being depreciated 86,174,147 6,810,807 (73,329) 92,911,625
Less accumulated depreciation for:
Infrastructure (21,084,334) (1,099,418) - (22,183,752)
Buildings and improvements (8,220,414) (1,114,236) - (9,334,650)
Machinery and equipment * (1,330,980) (179,005) 23,897 (1,486,088)
Vehicles * (2,972,022) (98,720) 49,432 (3,021,310)
Total accumulated depreciation (33,607,750) (2,491,379) 73,329 (36,025,800)
Total capital assets being depreciated, net 52,566,397 4,319,428 - 56,885,825
Total Nantucket Memorial Airport capital assets, net 63,477,567$ 8,690,576$ (6,076,683)$ 66,091,460$
* As reclassified.
Business-type Activities: Nantucket Memorial Airport
Town of Nantucket, Massachusetts Page 64 of 137 Comprehensive Annual Financial Report
Beginning Ending
Business-type Activities: Our Island Home Balance Increases Decreases Balance
Capital assets not being depreciated:
Land * 385,936$ -$ -$ 385,936$
Construction in process 219,866 187,600 (219,866) 187,600
Total capital assets not being depreciated 605,802 187,600 (219,866) 573,536
Capital assets being depreciated:
Buildings and improvements 1,584,199 313,504 - 1,897,703
Machinery and equipment 216,285 97,159 - 313,444
Vehicles 119,083 47,115 - 166,198
Total capital assets being depreciated 1,919,567 457,778 - 2,377,345
Less accumulated depreciation for:
Buildings and improvements (1,051,792) (64,170) - (1,115,962)
Machinery and equipment (124,328) (23,953) - (148,281)
Vehicles (119,083) (4,711) - (123,794)
Total accumulated depreciation (1,295,203) (92,834) - (1,388,037)
Total capital assets being depreciated, net 624,364 364,944 - 989,308
Total Our Island Home capital assets, net 1,230,166$ 552,544$ (219,866)$ 1,562,844$
* As restated.
Business-type Activities: Solid Waste
Capital assets not being depreciated:
Land 2,651,406$ -$ -$ 2,651,406$
Capital assets being depreciated:
Buildings and improvements 9,437,236 - - 9,437,236
Infrastructure 777,483 - - 777,483
Machinery and equipment 1,300,936 - - 1,300,936
Total capital assets being depreciated 11,515,655 - - 11,515,655
Less accumulated depreciation for:
Buildings and improvements (4,082,809) (236,522) - (4,319,331)
Infrastructure (777,483) - - (777,483)
Machinery and equipment (1,226,757) (13,487) - (1,240,244)
Total accumulated depreciation (6,087,049) (250,009) - (6,337,058)
Total capital assets being depreciated, net 5,428,606 (250,009) - 5,178,597
Total Solid Waste capital assets, net 8,080,012$ (250,009)$ -$ 7,830,003$
Town of Nantucket, Massachusetts Page 65 of 137 Comprehensive Annual Financial Report
Restatement – The Town conducted an evaluation of its capital assets in fiscal year 2016. As a
result of this evaluation, the Town determined that previously reported capital assets of the
Governmental Activities were overstated by $2,429,585, capital assets of the Wannacomet Water
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:Business-Type Activities:
General government 289,478$ Water 1,226,783$
Public safety 1,305,993 Sewer 2,163,851
Education 1,351,105 Airport 2,491,379
Public works 1,075,784 Our Island Home 92,834
Health and human services 10,186 Solid waste 250,009
Culture and recreation 255,079 6,224,856$
4,287,625$
Discretely Presented Component Unit - Nantucket County
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 3,283,842$ -$ -$ 3,283,842$
Capital assets being depreciated:
Machinery and equipment 187,927 - - 187,927
Less accumulated depreciation for:
Machinery and equipment (161,336) (15,993) - (177,329)
Total capital assets being depreciated, net 26,591 (15,993) - 10,598
Total Nantucket County capital assets, net 3,310,433$ (15,993)$ -$ 3,294,440$
Discretely Presented Component Unit - Nantucket Islands Land Bank
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 278,119,843$ 19,117,859$ -$ 297,237,702$
Capital assets being depreciated:
Buildings, improvements and equipment 25,969,010 1,841,411 (144,400) * 27,666,021
Less: accumulated depreciation (9,292,779) (952,966) 24,067 (10,221,678)
Total capital assets being depreciated, net 16,676,231 888,445 (120,333) 17,444,343
Total Nantucket Islands Land Bank
capital assets, net 294,796,074$ 20,006,304$ (120,333)$ 314,682,045$
* Includes $120,333 that is included as an increase to land.
Town of Nantucket, Massachusetts Page 66 of 137 Comprehensive Annual Financial Report
Enterprise Fund were understated by $2,743,847 and capital assets of the Our Island Home
Enterprise Fund were understated by $385,936. These amounts were reported as a restatement to
the Town’s net position at June 30, 2016. Reclassifications were also made to Airport assets.
D. Interfund Receivables, Payables and Transfers
The composition of interfund balances at June 30, 2016, was as follows:
The outstanding balances between funds result mainly from the timing difference between the
dates that (1) reimbursable expenditures occur, (2) the intergovernmental reimbursements are
received and (3) the payments to the general fund are made.
The composition of interfund transfers for the fiscal year ended June 30, 2016, was as follows:
E. Temporary Debt
The Town is authorized to borrow on a temporary basis to fund the following:
Current Operating Costs – Prior to collection of revenues, expenditures may be financed through
the issuance of revenue or tax anticipation notes (RANS or TANS).
Capital Projects and Other Approved Costs – Projects may be temporarily funded through the
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). In certain cases,
prior to the issuance of these temporary notes, the governing body must take the necessary legal
steps to authorize the issuance of the general obligation bonds. Temporary notes may not exceed
the aggregate amount of bonds authorized or the grant award amount and carry maturity dates
that are limited by state law. Interest expenditures and expenses for temporary borrowings are
accounted for in the general fund and enterprise funds, respectively.
Amount
General Fund Nonmajor Governmental Funds -362,461$
Road Improvements
Total 362,461$
Receivable Fund Payable Fund
Town Nonmajor Our
General Capital Governmental Island Solid
Fund Projects Funds Home Waste Total
General Fund -$ 7,495,326$ 350,000$ 3,196,384$ 5,510,000$ 16,551,710$ (1)
Nonmajor Governmental Funds 294,402 7,593,000 - - - 7,887,402 (2)
Sewer - 47,000 - - - 47,000 (2)
Total 294,402$ 15,135,326$ 350,000$ 3,196,384$ 5,510,000$ 24,486,112$
(1) Transfer to town capital projects for various capital outlays; transfer to nonmajor funds to fund community school programs; and transfers
to enterprise funds to subsidize operations.
(2) Transfers to general fund to close out fund and supplement capital outlays and transfers to town capital projects for various capital outlays.
Transfers In
Transfers Out
Town of Nantucket, Massachusetts Page 67 of 137 Comprehensive Annual Financial Report
Temporary notes outstanding at June 30, 2016, are payable as follows:
Short-term (BANs) issued for nonmajor governmental funds were used for septic betterments
($265,551), roadways and sidewalks ($500,000), school construction ($23,547,000) and fire
station construction ($5,901,650). Those issued for business-type funds were issued for water
projects ($2,562,000), sewer projects ($3,896,008), nursing home ($500,000) and airport projects
($4,248,980).
The Town is eligible for interim loan financing from the MCWT in anticipation of permanent
financing through MCWT for costs related to the Town’s septic management program. The
interim loans must be converted to permanent long-term debt no later than December 31, 2016.
Short-term MCWT loans totaling $265,551 are reported in the non-major governmental funds.
F. Long–Term Obligations
The Town issues general obligation bonds and notes to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds and notes have been issued for
both governmental and business-type activities. Additionally, the Town incurs various other
long-term obligations relative to associated personnel costs.
On October 22, 2015, the Town issued $2,932,000 in general obligation bonds that mature on
October, 15, 2035 and pay interest at 2-3% per annum. $2,156,000 of the proceeds from these
bonds was used to retire the same amount of BANS outstanding at June 30, 2015 and was
reflected as retirements and long-term debt issuances in fiscal year 2015.
On November 13, 2015, the Town issued BANS totaling $5,653,912 that mature on November
11, 2016 and pay interest at 1.75% per annum. $4,206,912 of the proceeds from these BANS,
along with the $2,156,000 of bond proceeds described above and an additional $855,000 of
available funds were used to retire a $7,217,912 BAN that matured on November 13, 2015.
Interest Maturity July 1,June 30,
Type Rate Date 2015 Additions Retirements 2016
MCWT 0.00% 12/31/16 265,551$ -$ -$ 265,551$
BAN 0.75% Matured * 2,463,000 - (2,463,000) -
BAN 1.75% 11/11/16 - 3,547,000 - 3,547,000
BAN 2.00% 11/10/16 - 7,500,000 - 7,500,000
BAN 1.50% 11/10/16 - 18,901,650 - 18,901,650
Total Governmental Notes 2,728,551 29,948,650 (2,463,000) 30,214,201
BAN 0.75% Matured * 2,598,912 - (2,598,912) -
BAN 1.75% 11/11/16 - 2,106,912 - 2,106,912
BAN 1.50% 11/10/16 - 9,100,076 - 9,100,076
Total Business-Type Notes 2,598,912 11,206,988 (2,598,912) 11,206,988
Total Notes Payable 5,327,463$ 41,155,638$ (5,061,912)$ 41,421,189$
* The portion of these BAN's that were permanently financed on October 22, 2015 and November 13,
2015 were reflected as BAN retirements and long-term debt issuances in the prior year.
Town of Nantucket, Massachusetts Page 68 of 137 Comprehensive Annual Financial Report
The following reflects the current year activity in the long-term liability accounts:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Governmental Activities:
Bond and note indebtedness 50,328,581$ 5,123,709$ (9,506,741)$ 45,945,549$ 5,723,885$
Unamortized bond premium 22,332 123,130 (22,332) 123,130 93,048
Workers' compensation 117,324 261,925 (274,402) 104,847 104,847
Compensated absences 1,890,243 1,043,789 (945,122) 1,988,910 994,455
Other postemployment benefits 31,578,816 6,476,529 (2,160,255) 35,895,090 -
Net pension liability 37,256,055 7,998,376 (3,633,505) 41,620,926 -
Total Governmental Activities 121,193,351$ 21,027,458$ (16,542,357)$ 125,678,452$ 6,916,235$
Business-Type Activities - Siasconset Water:
Bond and note debt 6,670,000$ -$ (620,000)$ 6,050,000$ 375,000$
Unamortized bond premium 70,672 - (5,048) 65,624 5,048
Other postemployment benefits 247,303 50,720 (16,918) 281,105 -
Net pension liability 107,351 23,047 (10,470) 119,928 -
Total Siasconset Water 7,095,326 73,767 (652,436) 6,516,657 380,048
Business-Type Activities - Wannacomet Water:
Bond and note debt 18,846,800 776,000 (1,598,000) 18,024,800 1,611,800
Unamortized bond premium 499,812 - (59,799) 440,013 55,907
Compensated absences 198,129 176,749 (99,064) 275,814 137,907
Other postemployment benefits 545,384 111,853 (37,309) 619,928 -
Net pension liability 2,215,255 475,586 (216,049) 2,474,792 -
Total Wannacomet Water 22,305,380 1,540,188 (2,010,221) 21,835,347 1,805,614
Business-Type Activities - Sewer:
Bond and note debt 44,745,635 - (2,542,956) 42,202,679 2,595,035
Unamortized bond premium 202,017 - (28,018) 173,999 24,390
Compensated absences 102,008 54,386 (51,004) 105,390 52,695
Other postemployment benefits 341,617 70,062 (23,369) 388,310 -
Net pension liability 1,350,982 290,038 (131,759) 1,509,261 -
Total Sewer 46,742,259 414,486 (2,777,106) 44,379,639 2,672,120
Business-Type Activities - Nantucket Memorial Airport:
Bond and note debt 11,444,000 - (820,000) 10,624,000 839,000
Unamortized bond premium 213,176 - (27,154) 186,022 25,449
Compensated absences 574,093 304,754 (287,046) 591,801 295,900
Other postemployment benefits 2,356,377 483,272 (161,196) 2,678,453 -
Net pension liability 5,172,032 1,110,366 (504,418) 5,777,980 -
Total Nantucket Memorial Airport 19,759,678 1,898,392 (1,799,814) 19,858,256 1,160,349
Business-Type Activities - Our Island Home:
Compensated absences 410,454 106,308 (205,227) 311,535 155,767
Other postemployment benefits 3,527,413 723,441 (241,305) 4,009,549 -
Net pension liability 7,573,732 1,625,978 (738,650) 8,461,060 -
Total Our Island Home 11,511,599 2,455,727 (1,185,182) 12,782,144 155,767
Business-Type Activities - Solid Waste:
Bond and note debt 455,000 - (40,000) 415,000 40,000
Landfill closure 7,663,000 1,240,000 - 8,903,000 -
Total Solid Waste 8,118,000 1,240,000 (40,000) 9,318,000 40,000
Total Business-Type Activities 115,532,242$ 7,622,560$ (8,464,759)$ 114,690,043$ 6,213,898$
Town of Nantucket, Massachusetts Page 69 of 137 Comprehensive Annual Financial Report
The Town’s governmental activities liabilities will be liquidated by the general fund. The
business-type liabilities will be liquidated by the respective business-type funds.
The following is a summary of outstanding long-term debt obligations as of June 30, 2016:
State law permits a Town, under the provisions of Chapter 44, Section 10, to authorize
indebtedness up to a limit of 5.0 percent of its equalized valuation. Debt issued in accordance
with this section of the law is designated as being “inside the debt limit.” In addition, a Town
may authorize debt in excess of that limit for specific purposes. Such debt, when issued, is
designated as being “outside the debt limit”.
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Governmental Activities:
General Obligation Bonds 2.00 - 5.00% 17,110,400$ 1,188,709$ (1,661,800)$ 16,637,309$
Refunding Bonds 1.50 - 5.00% 16,537,800 3,935,000 (7,151,600) 13,321,200
USDA Notes 4.13%1,173,000 - (34,500) 1,138,500
Massachusetts Clean Water Trust 0.00 - 2.42% 15,507,381 - (658,841) 14,848,540
Total Governmental Activities 50,328,581 5,123,709 (9,506,741) 45,945,549
Add: Unamortized bond premium 22,332 123,130 (22,332) 123,130
Total Governmental Activities, net 50,350,913$ 5,246,839$ (9,529,073)$ 46,068,679$
Business-Type Activities - Siasconset Water:
General Obligation Bonds 2.00 - 5.00% 6,670,000$ -$ (620,000)$ 6,050,000$
Total Siasconset Water 6,670,000 - (620,000) 6,050,000
Business-Type Activities - Wannacomet Water:
General Obligation Bonds 2.00 - 5.00% 13,975,000 776,000 (1,340,000) 13,411,000
Refunding Bonds 1.50 - 5.00% 4,871,800 - (258,000) 4,613,800
Total Wannacomet Water 18,846,800 776,000 (1,598,000) 18,024,800
Business-Type Activities - Sewer:
General Obligation Bonds 2.00 - 5.00% 4,016,600 - (473,200) 3,543,400
Refunding Bonds 2.00 - 5.00%725,400 - (100,400) 625,000
Massachusetts Clean Water Trust 0.00 - 5.50% 40,003,635 - (1,969,356) 38,034,279
Total Sewer 44,745,635 - (2,542,956) 42,202,679
Business-Type Activities - Nantucket Memorial Airport:
General Obligation Bonds 2.00 - 5.00% 11,444,000 - (820,000) 10,624,000
Total Nantucket Memorial Airport 11,444,000 - (820,000) 10,624,000
Business-Type Activities - Solid Waste:
General Obligation Bonds 2.50 - 5.00%405,000 - (35,000) 370,000
Refunding Bonds 1.50 - 4.00%50,000 - (5,000) 45,000
Total Solid Waste 455,000 - (40,000) 415,000
Total Business-Type Activities 82,161,435 776,000 (5,620,956) 77,316,479
Add: Unamortized bond premium 985,677 - (120,018) 865,659
Total Business-Type Activities, net 83,147,112$ 776,000$ (5,740,974)$ 78,182,138$
Town of Nantucket, Massachusetts Page 70 of 137 Comprehensive Annual Financial Report
Payments on general long-term debt obligation bonds and notes due in future years consist of the following:
Year Ending Principal Interest
June 30 Balance Subsidy Net of Subsidy Balance Subsidy Net of Subsidy Total
Governmental Activities
2017 5,723,885$ -$ 5,723,885$ 1,341,624$ (228)$ 1,341,396$ 7,065,281$
2018 5,227,650 - 5,227,650 1,162,652 (162) 1,162,490 6,390,140
2019 3,328,960 - 3,328,960 1,033,467 (96) 1,033,371 4,362,331
2020 3,299,619 - 3,299,619 934,977 (32) 934,945 4,234,564
2021 3,278,489 - 3,278,489 839,017 - 839,017 4,117,506
2022-2026 13,232,312 - 13,232,312 2,702,715 - 2,702,715 15,935,027
2027-2031 6,630,104 - 6,630,104 1,119,311 - 1,119,311 7,749,415
2032-2036 3,499,905 - 3,499,905 467,464 - 467,464 3,967,369
2037-2041 1,448,625 - 1,448,625 109,263 - 109,263 1,557,888
2042-2046 172,500 - 172,500 42,693 - 42,693 215,193
2047-2049 103,500 - 103,500 8,538 - 8,538 112,038
Total 45,945,549$ -$ 45,945,549$ 9,761,721$ (518)$ 9,761,203$ 55,706,752$
Business-Type Activities: Siasconset Water
2017 375,000$ -$ 375,000$ 248,485$ -$ 248,485$ 623,485$
2018 380,000 - 380,000 229,862 - 229,862 609,862
2019 395,000 - 395,000 216,337 - 216,337 611,337
2020 405,000 - 405,000 197,788 - 197,788 602,788
2021 415,000 - 415,000 182,664 - 182,664 597,664
2022-2026 2,275,000 - 2,275,000 660,737 - 660,737 2,935,737
2027-2031 1,690,000 - 1,690,000 170,431 - 170,431 1,860,431
2032-2036 115,000 - 115,000 8,175 - 8,175 123,175
6,050,000$ -$ 6,050,000$ 1,914,479$ -$ 1,914,479$ 7,964,479$
Business-Type Activities: Wannacomet Water
2017 1,611,800$ -$ 1,611,800$ 661,290$ -$ 661,290$ 2,273,090$
2018 1,585,000 - 1,585,000 586,398 - 586,398 2,171,398
2019 1,594,000 - 1,594,000 531,152 - 531,152 2,125,152
2020 1,509,000 - 1,509,000 475,161 - 475,161 1,984,161
2021 1,550,000 - 1,550,000 421,617 - 421,617 1,971,617
2022-2026 6,795,000 - 6,795,000 1,316,283 - 1,316,283 8,111,283
2027-2031 2,860,000 - 2,860,000 299,770 - 299,770 3,159,770
2032-2036 520,000 - 520,000 29,249 - 29,249 549,249
18,024,800$ -$ 18,024,800$ 4,320,920$ -$ 4,320,920$ 22,345,720$
Business-Type Activities: Sewer
2017 2,595,035$ (176,386)$ 2,418,649$ 1,142,861$ (200,123)$ 942,738$ 3,361,387$
2018 2,487,239 (184,053) 2,303,186 1,060,846 (179,364) 881,482 3,184,668
2019 2,454,474 (189,738) 2,264,736 987,229 (162,957) 824,272 3,089,008
2020 2,515,451 (205,829) 2,309,622 894,464 (118,631) 775,833 3,085,455
2021 2,569,657 (213,650) 2,356,007 815,633 (100,705) 714,928 3,070,935
2022-2026 11,618,915 (573,225) 11,045,690 2,919,247 (148,307) 2,770,940 13,816,630
2027-2031 8,511,879 - 8,511,879 1,630,596 - 1,630,596 10,142,475
2032-2036 6,972,847 - 6,972,847 710,526 - 710,526 7,683,373
2037-2038 2,477,182 - 2,477,182 60,160 - 60,160 2,537,342
42,202,679$ (1,542,881)$ 40,659,798$ 10,221,562$ (910,087)$ 9,311,475$ 49,971,273$
Town of Nantucket, Massachusetts Page 71 of 137 Comprehensive Annual Financial Report
MCWT Loan Subsidies – As previously noted in Note I. B., the Town has entered into loan
agreements with the MCWT. It is expected that the Town will be subsidized by MCWT on a
periodic basis for principal in the amount of $1,542,881 and interest in the amount of $910,087
until the maturity of these agreements.
The following represents authorized and unissued debt as of June 30, 2016:
Year Ending Principal Interest
June 30 Balance Subsidy Net of Subsidy Balance Subsidy Net of Subsidy Total
Business-Type Activities: Nantucket Memorial Airport
2017 839,000$ -$ 839,000$ 385,309$ -$ 385,309$ 1,224,309$
2018 755,000 - 755,000 359,287 - 359,287 1,114,287
2019 740,000 - 740,000 337,187 - 337,187 1,077,187
2020 625,000 - 625,000 314,138 - 314,138 939,138
2021 600,000 - 600,000 293,312 - 293,312 893,312
2022-2026 2,740,000 - 2,740,000 1,135,413 - 1,135,413 3,875,413
2027-2031 2,445,000 - 2,445,000 674,632 - 674,632 3,119,632
2032-2036 1,880,000 - 1,880,000 225,794 - 225,794 2,105,794
10,624,000$ -$ 10,624,000$ 3,725,072$ -$ 3,725,072$ 14,349,072$
Business-Type Activities: Solid Waste
2017 40,000$ -$ 40,000$ 15,812$ -$ 15,812$ 55,812$
2018 40,000 - 40,000 14,563 - 14,563 54,563
2019 35,000 - 35,000 13,225 - 13,225 48,225
2020 35,000 - 35,000 12,024 - 12,024 47,024
2021 35,000 - 35,000 10,687 - 10,687 45,687
2022-2026 170,000 - 170,000 32,861 - 32,861 202,861
2027-2028 60,000 - 60,000 3,825 - 3,825 63,825
415,000$ -$ 415,000$ 102,997$ -$ 102,997$ 517,997$
Project Amount
Governmental:
Title V septic 1,000,000$
Fire station 10,098,350
School building 22,653,000
Roads and sidewalks 2,000,000
Business-type:
Wannacomet water projects 5,133,000
Sewer projects 44,153,992
Wastewater treatment facilities 10,800,000
Nantucket Memorial Airport 5,926,145
Our Island Home 1,215,000
Solid waste - landfill 2,633,000
Total Authorized and Unissued 105,612,487$
Town of Nantucket, Massachusetts Page 72 of 137 Comprehensive Annual Financial Report
Current Refunding – On October 22, 2015, the Town issued general obligation bonds of
$3,935,000 paying interest at 3.0% per annum. The debt proceeds, along with $123,130 of
premiums were used to retire $3,995,000 of general obligation refunding bonds. As a result of
the current refunding, the Town reduced its total debt service requirements by $101,275, which
resulted in an economic gain (difference between the present value of the debt service payments
on the old and new debt) of $102,494.
Prior Year Refunding – In prior years, the Town defeased general obligation bonds by placing the
proceeds of the new bonds in an irrevocable trust account to provide for all future debt service
payments on the old bonds. Accordingly, the trust account assets and the liability for the
defeased bonds are not included in the government’s financial statements. At June 30, 2016,
$3,445,000 of defeased bonds remains outstanding.
Discretely Presented Component Unit – Nantucket Islands Land Bank
The general obligation bonds are secured by a second priority security interest in the Land Bank’s
present and future transfer fees and unrestricted revenue. The bonds are additionally secured by a
guarantee of the Town.
The following reflects the activity in the long-term liability accounts for the Land Bank for the year ended June 30, 2016:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Bond and note indebtedness 26,657,717$ 2,710,582$ (2,570,736)$ 26,797,563$ 6,518,879$
Capital leases 124,435 97,561 (73,959) 148,037 83,682
Net pension liability 1,471,373 142,565 (186,370) 1,427,568 -
Total Land Bank 28,253,525$ 2,950,708$ (2,831,065)$ 28,373,168$ 6,602,561$
The following is a summary of outstanding long-term debt obligations as of June 30, 2016:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Notes payable 3.00 - 6.06% 2,184,032$ 2,710,582$ (484,032)$ 4,410,582$
General obligation bonds 2.00 - 5.00% 24,473,685 - (2,086,704) 22,386,981
Total Land Bank 26,657,717$ 2,710,582$ (2,570,736)$ 26,797,563$
Town of Nantucket, Massachusetts Page 73 of 137 Comprehensive Annual Financial Report
Payments on general long-term debt obligation bonds and notes due in future years consist of the
following:
III. Other Information
A. Retirement System
Plan Description – The Town, County and Land Bank contribute to the Barnstable County
Retirement System (BCRS), a cost-sharing multiple-employer defined benefit pension plan
established under MGL Chapter 32 and is administered by the Barnstable County Retirement
Board (BCRB). Standalone audited financial statements for the year ended December 31, 2015
were issued and may be obtained by writing to the Barnstable County Retirement System, 750
Attucks Lane, Hyannis, Massachusetts 02601.
Membership – Membership in the Retirement System as of January 1, 2014, was as follows:
Retirees and beneficiaries currently receiving benefits 3,035
Active plan members 4,718
Inactive plan members 613
Total 8,366
Benefit Terms – Membership in the Retirement System is mandatory for all full-time employees
and non-seasonal, part-time employees who, in general, regularly work more than twenty hours
per week. Teachers and certain administrative personnel employed by the Town’s school
department participate in a separate pension plan administered by the Massachusetts Teachers’
Retirement System, which is the legal responsibility of the Commonwealth of Massachusetts.
Members of the Retirement System do not participate in the federal Social Security retirement
system.
Massachusetts contributory retirement system benefits are uniform from retirement system to
system. The Retirement System provides for retirement allowance benefits up to a maximum of
80% of a participant’s highest three-year or five-year average annual rate of regular
compensation, depending on the participant’s date of hire. Benefit payments are based upon a
participant’s age, length of creditable service, level of compensation and job classification.
The most common benefits paid by the Retirement System include normal retirement, disability
retirement and survivor benefits.
Year Ending
June 30 Principal Interest Total
2017 6,518,879$ 711,504$ 7,230,383$
2018 2,226,704 640,168 2,866,872
2019 2,296,704 566,449 2,863,153
2020 2,381,704 490,098 2,871,802
2021 1,541,704 424,458 1,966,162
2022-2026 7,168,520 1,353,953 8,522,473
2027-2031 4,192,718 291,398 4,484,116
2032 470,630 10,920 481,550
Total 26,797,563$ 4,488,948$ 31,286,511$
Town of Nantucket, Massachusetts Page 74 of 137 Comprehensive Annual Financial Report
Normal retirement generally occurs at age 65. However, participants may retire after twenty
years of service or at any time after attaining age 55, if hired prior to April 2, 2012 or at any
time after attaining age 60 if hired on or after April 2, 2012. Participants with hire dates
subsequent to January 1, 1978 must have a minimum of ten years’ creditable service in order
to retire at age 55. Participants become vested after ten years of service. Benefits
commencing before age 65 are provided at a reduced rate. Members working in certain
occupations may retire with full benefits earlier than age 65.
Ordinary disability retirement is where a participant is permanently incapacitated from a
cause unrelated to employment. Accidental disability retirement is where the disability is the
result of an injury or illness received or aggravated in the performance of duty. The amount
of benefits to be received in such cases is dependent upon several factors, including the age at
which the disability retirement occurs, the years of service, average compensation and
veteran status.
Survivor benefits are extended to eligible beneficiaries of participants whose death occurs
prior to or following retirement.
Cost-of-living adjustments granted to members of Massachusetts retirement systems granted
between 1981 and 1997 and any increases in other benefits imposed by the Commonwealth
during those years have been the financial responsibility of the Commonwealth. Beginning in
1998, the funding of cost-of-living amounts became the responsibility of the participating units
like the Retirement System.
The Retirement System may be amended or terminated in whole or in part at any time by the
Massachusetts Legislature, provided that no such modification, amendment or termination shall
be made that would deprive a current member of superannuation pension rights or benefits
provided under applicable laws of Massachusetts, if such member has paid the stipulated
contributions specified in sections or provisions of such laws. There were no significant changes
to the Retirement System’s benefit terms in 2015.
Contributions Requirements – The Town has elected provisions of Chapter 32, Section 22D (as
amended) of Massachusetts General Laws, which require that a funding schedule be established
to fully fund the pension plan by June 30, 2040. Under provisions of this law, participating
employers are assessed their share of the total retirement cost based on the entry age, normal
actuarial cost method.
The Town, County and Land Bank contributed $5,142,928, $47,272, and $122,446, respectively,
to the Retirement System in fiscal year 2016, which equaled the actuarially-determined
contribution requirements for the fiscal year. The Town, County and Land Bank contributions as
a percentage of covered payroll were 19.9%, 19.3% and 19.4%, respectively, in fiscal year 2016.
Net Pension Liability – At June 30, 2016, the Town, County and Land Bank reported liabilities of
$59,963,947, $551,581 and $1,427,568, respectively, for the proportionate shares of the net
pension liability. The net pension liability was measured as of January 1, 2014 and the total
pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. These figures were updated by the independent actuary to December 31,
2015. There were no material changes made in this update to the actuarial assumptions (see
below) nor were there any material changes to the Retirement System’s benefit terms since the
actuarial valuation.
Town of Nantucket, Massachusetts Page 75 of 137 Comprehensive Annual Financial Report
The Town, County and Land Bank’s proportions of the net pension liability are based on a
projection of their long-term share of contributions to the Retirement System relative to the
projected contributions of all employers. The Town, County and Land Bank’s proportions were
approximately 9.523%, 0.087% and 0.227%, respectively, at December 31, 2015, which was
consistent with the proportions measured at January 1, 2014.
Pension Expense – The Town, County and Land Bank recognized $6,660,007, $51,081 and
$175,275, respectively, in pension expense in the statement of activities in fiscal year 2016.
Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2016, the
Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
Experience
$ —
$ —
Changes of assumptions — —
Net difference between projected and actual
earnings on pension plan investments
4,758,486
—
Changes in proportion and differences
between Town contributions and
proportionate share of contributions
104,898
—
Town contributions subsequent to the
measurement date
—
—
Total $ 4,863,384 $ —
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the Town’s pension expense as follows:
Year ended June 30,
2017 $ 1,216,356
2018 1,216,356
2019 1,216,356
2020 1,193,336
2021 20,980
$ 4,863,384
Town of Nantucket, Massachusetts Page 76 of 137 Comprehensive Annual Financial Report
At June 30, 2016, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$ —
$ —
Changes of assumptions — —
Net difference between projected and actual
earnings on pension plan investments
43,738
—
Change in proportionate share impact on
prior year net pension liability and deferred
outflow (inflow)
—
49,995
Changes in proportion and differences
between County contributions and
proportionate share of contributions
35,931
—
County contributions subsequent to the
measurement date
—
—
Total $ 79,669 $ 49,995
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the County’s pension expense as follows:
Year ended June 30,
2017 $ 8,122
2018 8,122
2019 8,122
2020 8,122
2021 (2,812)
$29,674
Town of Nantucket, Massachusetts Page 77 of 137 Comprehensive Annual Financial Report
At June 30, 2016, the Land Bank reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Differences between expected and actual
experience
$ —
$ —
Changes of assumptions — —
Net difference between projected and actual
earnings on pension plan investments
113,286
—
Change in proportionate share impact on
prior year net pension liability and deferred
outflow (inflow)
—
129,492
Changes in proportion and differences
between Land Bank contributions and
proportionate share of contributions
712
35,656
Land Bank contributions subsequent to the
measurement date
—
—
Total $ 113,998 $ 165,148
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the County’s pension expense as follows:
Year ended June 30,
2017 $ (4,566)
2018 (4,566)
2019 (4,566)
2020 (4,566)
2021 (32,886)
$(51,150)
Actuarial Valuation – The measurement of the Retirement System’s total pension liability is
developed by an independent actuary. The latest actuarial valuation was performed as of January
1, 2014. The significant actuarial assumptions used in the January 1, 2014 actuarial valuation
included:
Actuarial cost method: Entry Age Normal Cost Method
Amortization method: Payments increase at 4.0%, except for 2010 Early
Retirement Incentive, which is a level payment
Remaining amortization period: 22 years from July 1, 2014 for 2002 and 2003 Early
retirement Incentives, retiree sheriffs liability, and
remaining unfunded liability, and 8 years from July 1,
2014 for 2010 Early Retirement Incentive
Asset valuation method:
Sum of actuarial value at beginning of the year,
contributions and investment earnings based on the
actuarial interest assumption less benefit payments
Town of Nantucket, Massachusetts Page 78 of 137 Comprehensive Annual Financial Report
and operating expenses plus 20% of the market value
at the end of the year in execs of that sum, plus
additional adjustment toward market value as
necessary so that final actuarial value is within 20% of
market value.
Investment rate of return:
7.75%
Projected salary increases: Varies by length of service with ultimate rates of
4.25% for Group 1, 4.50% for Group 2, and 4.75% for
Group 4
Inflation rate:
Cost of living adjustments:
4%
3% of $15,000
Mortality rates: Pre-retirement rates reflect the RP-2000 Employee
Mortality Table projected generationally with Scale
AA from 2010. The post-retirement rates reflect the
RP-2000 Healthy Annuitant Mortality Table projected
generationally with Scale AA from 2010
Disabled life mortality: RP-2000 Healthy Annuitant Mortality Table set
forward three years for males only projected
generationally with Scale AA from 2010
The investment rate of return assumption is a long-term assumption and is based on capital
market expectations by asset class, historical returns and professional judgment. The market
expectations analysis used a building-block approach, which included expected returns by asset
class and the target asset allocation. The target allocation and best estimates of arithmetic real
returns for each major asset class are summarized in the following table:
Asset Class
Target
Allocation
Long-term Expected
Real Rate of Return
Domestic equity 20.0% 6.60%
International developed markets equity 16.0% 7.10%
International emerging markets equity 7.0% 9.40%
Core fixed income 13.0% 2.20%
High-yield fixed income 10.0% 4.70%
Real estate 10.0% 4.40%
Commodities 4.0% 4.40%
Hedge funds 10.0% 3.90%
Private equity 10.0% 11.70%
Discount Rate – The discount rate used to measure the total pension was 7.75%. The projection
of cash flows used to determine the discount rate assumed plan member contributions were made
at the current contribution rate and that employer contributions will be made at rates equal to the
actuarially-determined contribution rates and the member rate. Based on those assumptions, the
Retirement System’s fiduciary net position was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of
Town of Nantucket, Massachusetts Page 79 of 137 Comprehensive Annual Financial Report
return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity Analysis – The following presents the proportionate shares of the net pension liability
calculated using the discount rate of 7.75% as well as the proportionate shares of the net pension
liability using a discount rate that is one percentage point lower (6.75%) or one percentage point
higher (8.75%) than the current rate:
1% Decrease
(6.75%)
Current Discount
(7.75%)
1% Increase
(8.75%)
Town’s proportionate share of
the net pension liability
$ 76,043,208
$ 59,963,947
$ 46,317,670
County’s proportionate share of
the net pension liability
$ 698,849
$ 551,169
$ 425,667
Land Bank’s proportionate share
of the net pension liability
$ 1,810,483
$ 1,427,568
$ 1,102,759
B. Massachusetts Teachers’ Retirement System
Teachers and certain administrative employees of the Town’s school department participate in the
Massachusetts Teachers’ Retirement System (“MTRS”), a cost-sharing multiple employer
defined benefit pension plan. MTRS is managed by the Commonwealth on behalf of municipal
teachers and municipal teacher retirees. Like the Retirement System, MTRS was established
under Chapter 32 of Massachusetts General Laws. The Commonwealth’s legislature has the
authority to amend or modify the MTRS’s funding policies.
The Commonwealth is a nonemployer contributor to the MTRS and is legally responsible by
statute for all actuarially determined employer contributions and future benefit requirements of
the MTRS. Therefore, the Town is considered to be in a special funding situation as defined by
GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
For the year ended June 30, 2016, the Commonwealth contributed $2,237,223 to the MTRS on
behalf of the Town. The Town’s proportionate share of the collective MTRS net pension liability
at this reporting date was 0.218921%, which was based on the actual, actuarially determined
contribution made by the Commonwealth on behalf of the Town as a percentage of the total
annual contribution made by the Commonwealth on behalf of all employers.
The table below presents the Town’s proportionate share of the following:
Commonwealth
Portion
Paid (or assumed)
On Behalf
of the Town
Town
Portion
Net pension liability $ 44,856,203 $ (44,856,203) $ —
Pension expense 3,638,237 (3,638,237) —
The Town has recognized intergovernmental revenue and pension expense of $3,638,237
associated with this arrangement.
Town of Nantucket, Massachusetts Page 80 of 137 Comprehensive Annual Financial Report
C. Other Postemployment Benefits (OPEB)
Plan Description – The Town administers a cost sharing multiple-employer defined benefit
healthcare plan (the “Plan”). The Plan provides health and life insurance benefits to current and
future retirees, their dependents and beneficiaries in accordance with Massachusetts General Law
Chapter 32B. Specific benefit provisions and contribution rates are established by collective
bargaining agreements, state law, and Town ordinance. All benefits are provided through the
Town’s self-funded insurance program described previously. The Plan does not issue a stand–
alone financial report. The number of participants in the Plan consists of 490 active employees
and 311 retired employees for a total of 801.
Funding Policy – The contribution requirements of Plan members and the Town are established
and may be amended by the Town, through negotiation with the Town employee unions.
Retirees contribute 10 – 20 percent of the calculated contribution through pension benefit
deductions. The remainder of the cost is funded by the Town. The Town pays the remainder.
The Town currently contributes enough money to the Plan to satisfy current obligations on a pay-
as-you-go basis. The costs of administering the Plan are paid by the Town.
Annual OPEB Cost and Net OPEB Obligation – The Town’s annual OPEB cost is calculated
based on the annual required contribution “ARC” of the employer, an actuarially determined
amount that is calculated in accordance with GASB Statement #45. The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded liabilities over a period not to exceed thirty years.
The following table reflects the activity regarding the Town’s OPEB obligation:
Trend information regarding Town’s annual OPEB cost, the percentage of the annual OPEB cost
contributed and the net OPEB obligation is as follows:
Fiscal Year
Ending
Annual OPEB
Cost
(AOPEBC)
Percentage of
AOPEBC
Contributed
Net OPEB
Obligation
June 30, 2016 $ 7,915,877* 33.4% $ 43,872,435
June 30, 2015 $ 7,430,993 30.7% $ 38,596,910
June 30, 2014 $ 7,587,850 37.8% $ 33,444,610
Annual required contribution (ARC)7,587,715$
Interest on net OPEB obligation 1,736,861
Adjustment to ARC (1,408,699)
Annual OPEB cost 7,915,877
Contributions made (2,640,352)$
Increase in net OPEB obligation 5,275,525
Net OPEB obligation at beginning of year 38,596,910
Net OPEB obligation at end of year 43,872,435$
Town of Nantucket, Massachusetts Page 81 of 137 Comprehensive Annual Financial Report
* Reflected in the Statement of Activities as follows:
The AOPEBC at June 30, 2016 was charged to the following functional programs: General
Government $656,106; Public Safety $1,399,297; Education $3,844,260; Public Works $365,762;
Health and Human Services $127,289; Culture and Recreation $83,815; Siasconset water
$50,720; Wannacomet water $111,853; Sewer $70,063; Airport $483,272; and Our Island Home
$723,440.
Funding Status and Funding Progress – The funded status of the Plan at June 30, 2016, based on
the most recent actuarial valuation performed as of June 30, 2014, was as follows (in millions):
Actuarial
Value of
Assets
(A)
Actuarial
Accrued
Liability
(AAL) Entry
Age Normal
Cost
(B)
Unfunded
AAL
(UAAL)
(B – A)
Funded
Ratio
(A/B)
Covered
Payroll
(C)
UAAL as a
Percentage
of Covered
Payroll
((B-A)/C)
$0.25 $88.80 $88.55 0.28% N/A N/A
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events into the future. Amounts determined
regarding the funded status of the Plan and the ARC of the employer are subject to continual
revision as estimates are compared to actual results and past expectations. The schedules of
funding progress, presented as required supplementary information (RSI) following the notes to
the financial statements, present multi-year trend information about whether the actuarial values
of plan assets are increasing or decreasing over time relative to the AAL for benefits.
Methods and Assumptions – Projections of benefits for financial reporting purposes are based on
the substantive Plan 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 the Plan members to
that point. The actuarial methods and assumptions used include techniques that are designed to
reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations. The significant methods and
assumptions as of the latest valuation are as follows:
Valuation date: June 30, 2014
Actuarial cost method Projected Unit Credit
Amortization method 4.0 percent increasing
Remaining amortization period: 30 years (open)
Interest discount rate: 4.5 percent
Inflation rate: 4.0 percent
Healthcare/Medical cost trend rate: 10.0% decreasing by 0.5% for 10 years to an
ultimate level of 5.0% per year
Discretely Presented Component Unit – Nantucket County
Plan Description – Nantucket County’s employees participate in the multiple-employer defined
benefit healthcare plan administered by the Town which was described previously.
Town of Nantucket, Massachusetts Page 82 of 137 Comprehensive Annual Financial Report
Funding Policy – The contribution requirements of Plan members and the County are established
and may be amended by the Town, through negotiation with the County employee unions.
Retirees contribute 10 – 20 percent of the calculated contribution through pension benefit
deductions. The remainder of the cost is funded by the County. The County currently contributes
enough money to the Plan to satisfy current obligations on a pay-as-you-go basis. The costs of
administering the Plan are paid by the Town.
Annual OPEB Cost and Net OPEB Obligation – The County's annual OPEB cost is calculated
based on the annual required contribution (ARC) of the employer, and actuarially determined
amount that is calculated in accordance with GASB Statement #45. The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded liabilities over a period not to exceed thirty years. The following table
reflects the activity regarding the County's OPEB obligation:
D. 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 years.
Health Insurance – The Town maintains a "reinsured cost reimbursement program" which covers
the group health insurance requirements of a majority of Town employees. The Plan is
essentially a self-insurance program and employee claims in excess of $150,000 are reinsured by
the Plan. The Town accrues an amount representing claims incurred but not reported (IBNR),
which is based on a one month claims paid average. At June 30, 2016, the amount of the liability
for IBNR health insurance claims totaled $898,614. This liability is the best estimate based on
available information. In the fund-wide financial statements, the Town reports these self-insured
activities in the Internal Service Fund where revenues are recorded when earned and expenses are
recorded when the liability is incurred.
Annual required contribution (ARC)24,708$
Interest on net OPEB obligation 5,656
Adjustment to ARC (4,587)
Annual OPEB cost 25,777
Contributions made (8,598)$
Increase in net OPEB obligation 17,179
Net OPEB obligation at beginning of year 125,688
Net OPEB obligation at end of year 142,867$
Town of Nantucket, Massachusetts Page 83 of 137 Comprehensive Annual Financial Report
Changes in the reported liability since July 1, 2014, are as follows:
Balance at
Beginning
of Year
Claims and
Changes in
Estimates
Claims
Payments
Balance at
End of Year
Current
Portion
Fiscal Year 2016 $775,395 $13,861,420 $(13,738,201) $898,614 $898,614
Fiscal Year 2015 775,395 13,286,061 (13,286,061) 775,395 775,395
Workers’ Compensation – The Town is also self-insured for their workers’ compensation
activities. Workers’ compensation claims are administered by a third-party and are funded on a
pay-as-you-go basis from an Internal Service Fund, with annual appropriations being made to the
fund. The estimated future workers’ compensation liability is based on history and injury type.
At June 30, 2016, the amount of the liability for workers’ compensation claims totaled $104,847.
This liability is the best estimate based on available information. Changes in the reported liability
since July 1, 2014, are as follows:
Balance at
Beginning
of Year
Claims and
Changes in
Estimates
Claims
Payments
Balance at
End of Year
Current
Portion
Fiscal Year 2016 $117,324 $261,925 $(274,402) $104,847 $104,847
Fiscal Year 2015 50,571 204,098 (137,345) 117,324 117,324
E. Commitments
The Town is in the planning and construction stages of several major capital projects including a
fire station, school building, and sewer and waste water treatment plant improvements. The
Town plans to enter into contracts to expend approximately $15,000,000, $31,000,000,
$41,000,000 and $10,000,000, respectively to complete the projects.
F. Contingencies
The Town is party to certain legal claims, which are subject to many uncertainties, and the
outcome of individual litigation matters in these situations cannot be reasonably estimated.
Although the amount of liability, if any, in these situations at June 30, 2016, cannot be
ascertained, management believes that the resulting liability, if any, should not materially affect
the basic financial statements of the Town at June 30, 2016. Other amounts received or
receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the Town
expects such amounts, if any, to be immaterial.
The Town is subject to certain Federal arbitrage laws in accordance with long-term borrowing
agreements. Failure to comply with the rules could result in the payment of penalties. The Town
does not believe it has failed to comply with any of these agreements.
The Town is contingently liable for 35% of any deficit, including operating and debt service
costs, which may be incurred by the Woods Hole, Martha’s Vineyard and Nantucket Steamship
Authority (the “Authority”). As of December 31, 2015, the Authority’s reserve fund balance
Town of Nantucket, Massachusetts Page 84 of 137 Comprehensive Annual Financial Report
totaled $3,594,750 and bonds outstanding totaled $79,974,027, net of unamortized premiums of
$8,079,027. For the fiscal year ended December 31, 2015, the Authority’s revenues exceeded its
cost of services by $11,743,164. The Town is not required to make payments to the Authority
unless the amount in the Authority’s reserve fund is insufficient. Since 1962, the Town has not
made any payments to the Authority.
G. Landfill Closure and Post-Closure Care Costs
The Town operates a landfill under an Administrative Consent Order (ACO) with the
Massachusetts Department of Environmental Protection (DEP). The current ACO allowed the
Town to mine the current landfill for useable materials through fiscal year 2014; however the
mining program is continuing pending an approval of an extension request. The landfill consists
of five cells, three lined and two unlined. The largest cell is unlined and has been closed for
several years with sections scheduled for excavation under the mining program. Two cells, which
are no longer accepting waste, are uncapped and unlined and have been previously excavated
under the mining program. Another cell is inactive, lined but uncapped. There is one lined cell
that is currently accepting waste. The final capping and closure of the unclosed cells are
dependent on construction of new cells and DEP approval of the continuation of the mining
program. The Town has recognized a closure liability of $8,903,000 in the Solid Waste
Enterprise fund. This liability is based on estimates of the cost of all closure and post-closure
care for 30 years. Actual costs may change due to inflation, changes in technology, or changes in
regulations.
H. Implementation of GASB pronouncements
Current Year Implementations –
In February 2015, the GASB issued GASB Statement No. 72, Fair Value Measurement and
Application. GASB 72 addressed accounting and financial reporting issues relating to fair value
measurements by providing guidance for determining a fair value measurement for financial
reporting purposes. The provisions of this Statement became effective for the Town in fiscal year
2016 and did not have a material effect on its financial statements.
In June 2015, the GASB issued GASB Statement No. 73, Accounting and Financial Reporting
for Pension and Related Assets That Are Not within the Scope of GASB Statement No. 68 and
Amendments to Certain Provision of GASB Statement No. 67 and No. 68. The objective of
GASB 73 was to improve the usefulness of information about pensions included in the general
purpose external financial reports of state and local governments for making decisions and
assessing accountability. This Statement established requirements for defined benefit pensions
that are not within the scope of Statement 68, as well as for the assets accumulated for purposes
of providing those pensions. In addition, it established requirements for defined contribution
pensions that are not within the scope of Statement 68. The provisions of this Statement were
effective for financial reporting periods beginning after June 15, 2015 (fiscal year 2016) – except
those provisions that address employers and governmental nonemployer contributing entities for
pensions that are not within the scope of GASB Statement No. 68, which are effective for fiscal
years beginning after June 15, 2106 (fiscal year 2017). The provisions of this Statement became
effective for the Town in fiscal year 2016 and did not have a material effect on its financial
statements.
In June 2015, the GASB issued GASB Statement No. 76, The Hierarchy of Generally Accepted
Accounting Principles for State and Local Governments. The objective of GASB 76 was to
Town of Nantucket, Massachusetts Page 85 of 137 Comprehensive Annual Financial Report
identify, in the context of the current governmental financial reporting environment, the hierarchy
of generally accepted principles, or GAAP. This Statement reduced the GAAP hierarchy to two
categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative
literature in the event that the accounting treatment for a transaction or other event is not specified
within a source of authoritative GAAP. The provisions of this Statement became effective in
fiscal year 2016 and did not have a material effect on the Town’s financial statements.
In December 2015, the GASB issued GASB Statement No. 79, Certain External Investment
Pools and Pool Participants. GASB 79 established criteria for which an external investment pool
may qualify to measure its investment value at amortized cost versus fair value. The provisions
of this Statement became effective in fiscal year 2016 and did not have a material effect on the
Town’s financial statements.
Future Implementations –
In June 2015, the GASB issued GASB Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other than Pension Plans. GASB 74’s objective is to improve the
usefulness of information about postemployment benefits other than pensions included in the
general purpose external financial reports of state and local governmental OPEB plans for making
decisions and assessing accountability. The provisions of this Statement are effective for
financial reporting periods beginning after June 15, 2016 (fiscal year 2017). The Town is
currently evaluating whether adoption will have a material impact on the financial statements.
In June 2015, the GASB issued GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pension Plans. GASB 75 establishes new accounting
and financial reporting requirements for governments whose employees are provided with OPEB,
as well as for certain nonemployer governments that have a legal obligation to provide financial
support for OPEB provided to the employees of other entities. The provisions of this Statement
are effective for financial reporting periods beginning after June 15, 2017 (fiscal year 2018). The
Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In August 2015, the GASB issued GASB Statement No. 77, Tax Abatement Disclosures. GASB
77 requires the disclosure of the terms of certain tax abatement agreements entered into by a
government with individuals or entities. The provisions of this Statement are effective for
financial reporting periods beginning after June 15, 2016 (fiscal year 2017), although early
adoption is encouraged. The Town is currently evaluating whether adoption will have a material
impact on the financial statements.
In December 2015, the GASB issued GASB Statement No. 78, Pensions Provided through
Certain Multiple-Employer Defined Benefit Pension Plans. The provisions of GASB 78 are
applicable to certain government pension plans that (i) are not administered as a trust by a state or
local governmental pension plan, (ii) are shared between governmental and nongovernmental
employees, and (iii) have not predominant state of local governmental employer. The provisions
of this Statement are effective for financial reporting periods beginning after June 15, 2016 (fiscal
year 2017), although early adoption is encouraged. This Statement is not expected to have a
material effect on the Town’s financial statements.
In January 2016, the GASB issued GASB Statement No. 80, Blending Requirements for Certain
Component Units. The provisions of GASB 80 apply to component units that are organized as
not-for-profit corporations in which the primary government is the sole corporate member. Such
Town of Nantucket, Massachusetts Page 86 of 137 Comprehensive Annual Financial Report
component units should be included in the reporting entity financial statements using the blending
method. The provisions of this Statement are effective for financial reporting periods beginning
after June 15, 2016 (fiscal year 2017), although early adoption is encouraged. The Town is
currently evaluating whether adoption will have a material impact on the financial statements.
In March 2016, the GASB issued GASB Statement No. 81, Irrevocable Split-Interest
Agreements. The objective of the Statement is to improve accounting and financial reporting for
irrevocable split-interest agreements by providing recognition and measurement guidance for
situations in which a government is a beneficiary of the agreement. The provisions of this
Statement are effective for financial reporting periods beginning after December 15, 2016 (fiscal
year 2018) and should be applied retroactively. The Town is currently evaluating whether
adoption will have a material impact on the financial statements.
In March 2016, the GASB issued GASB Statement No. 82, Pension Issues – an amendment of
GASB Statements No. 67, No. 68, and No. 73. The objective of GASB 73 was to address issued
raised with respect to previously issued statements related to pensions. Specifically, the
Statement addressed issues regarding (i) the presentation of payroll-related measures in required
supplementary information, (ii) the selection of assumptions and the treatment of deviations from
the guidance in an Actuarial Standard of Practice for financial reporting and (iii) the classification
of payments made by employers to satisfy employee (plan member) contributions requirements.
The requirements for this Statement are effective for reporting periods beginning after June 15,
2016 (fiscal year 2017), except for the requirements of this Statement for the selection of
assumptions in a circumstance in which an employer’s pension liability is measured as of a date
other than the employer’s most recent fiscal year end. In that circumstance, the requirements for
the selection of assumptions are effective for that employer in the first reporting period in which
the measurement date of the pension liability is on or after June 15, 2017; earlier application is
encouraged. The Town is currently evaluating whether adoption will have a material impact on
the financial statements.
I. Subsequent Event
On August 3, 2016, the Town issued $14,400,000 of general obligation refunding bonds paying
interest rates between 2.0% and 4.0% and maturing on December 15, 2028. The bonds and net
premiums from the issuance totaling $16,324,698 were deposited with the refunding escrow agent
to advance refund $13,975,000 of general obligation bonds maturing on various dates from 2019
to 2029 and for a current refunding of $1,138,500 of general obligation bonds. As a result of the
refunding bonds, the Town reduced its total debt service requirements by $2,026,392, which
resulted in an economic gain (difference between the present value of the debt service payments
on the old and new debt) of $2,026,392.
Town of Nantucket, Massachusetts Page 87 of 137 Comprehensive Annual Financial Report
IV. Prior Period Restatements
A prior period adjustment was made for a decrease in the capital assets reported in the
Governmental activities and an increase in the capital assets reported in the Wannacomet Water
and Our Island Home Enterprise Funds.
A summary of the restatements is as follows:
Discretely Presented Component Unit’s
A prior period adjustment was made to decrease the beginning net position of Nantucket County
to reflect unrecorded inter-municipal transactions. A summary of the restatement is as follows:
Our
Governmental Business-type Wannacomet Island
Activities Activities Water Home
Prior year as presented 166,225,136$ 117,719,854$ 16,023,631$ (6,399,697)$
Restate capital asset balances (2,429,585) 3,129,783 2,743,847 385,936
As restated 163,795,551$ 120,849,637$ 18,767,478$ (6,013,761)$
Nantucket
County
Prior year as presented 6,601,164$
Record inter-municipal activity (37,076)
As restated 6,564,088$
Town of Nantucket, Massachusetts Page 88 of 137 Comprehensive Annual Financial Report
Required Supplementary Information
Town of Nantucket, Massachusetts Page 89 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2015 2014
Town's proportion of the net pension
liability (asset)9.52%9.51%
Town's proportionate share of the net
pension liability (asset)59,964$ 53,675$
Town's covered-employee payroll 25,827$ 24,938$
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 232.18%215.23%
Plan fiduciary net position as a percentage
of the total pension liability 58.10%60.43%
SCHEDULE OF THE TOWN CONTRIBUTIONS TO PENSION PLAN
2015 2014
Actuarially determined contribution 5,143$ 4,959$
Contributions in relation to the
actuarially determined contribution 5,143 4,959
Contribution deficiency (excess)-$ -$
Town's covered-employee payroll 25,827$ 24,938$
Contributions as a percentage of
covered-employee payroll 19.9%19.9%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended December 31,
Year Ended December 31,
Town of Nantucket, Massachusetts Page 90 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2015 2014
County's proportion of the net pension
liability (asset)0.09%0.09%
County's proportionate share of the net
pension liability (asset)551$ 519$
County's covered-employee payroll 243$ 241$
County's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 226.75%215.35%
Plan fiduciary net position as a percentage
of the total pension liability 58.10%60.43%
SCHEDULE OF THE COUNTY CONTRIBUTIONS TO PENSION PLAN
2015 2014
Actuarially determined contribution 47$ 48$
Contributions in relation to the
actuarially determined contribution 47 48
Contribution deficiency (excess)-$ -$
County's covered-employee payroll 243$ 241$
Contributions as a percentage of
covered-employee payroll 19.3%19.9%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
(dollar amounts are in thousands)
Year Ended December 31,
(dollar amounts are in thousands)
Year Ended December 31,
Town of Nantucket, Massachusetts Page 91 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
SCHEDULE OF THE LAND BANK'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2015 2014
Land Bank's proportion of the net pension
liability (asset)0.23%0.26%
Land Bank's proportionate share of the net
pension liability (asset)1,428$ 1,471$
Land Bank's covered-employee payroll 629$ 683$
Land Bank's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 227.03%215.37%
Plan fiduciary net position as a percentage
of the total pension liability 58.10%60.43%
SCHEDULE OF THE LAND BANK CONTRIBUTIONS TO PENSION PLAN
2015 2014
Actuarially determined contribution 122$ 136$
Contributions in relation to the
actuarially determined contribution 122 136
Contribution deficiency (excess)-$ -$
Land Bank's covered-employee payroll 629$ 683$
Contributions as a percentage of
covered-employee payroll 19.4%19.9%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
(dollar amounts are in thousands)
Year Ended December 31,
(dollar amounts are in thousands)
Year Ended December 31,
Town of Nantucket, Massachusetts Page 92 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
2015 2014
Commonwealth's proportion of the
collective net pension liability (asset)100.0%100.0%
Town's proportion of the collective
net pension liability (asset)0.0%0.0%
Commonwealth's proportionate share of
the net pension liability (asset)20,489,643$ 15,896,354$
Commonwealth's actuarially determined
contribution 1,021,930$ 937,379$
Contributions to MTRS are the responsibility of the Commonwealth of Massachusetts.
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
(dollar amounts are in thousands)
Year Ended June 30,
SCHEDULE OF THE COMMONWEALTH'S COLLECTIVE SHARE OF THE NET PENSION LIABILITY
MASSACHUSETTS TEACHER'S RETIREMENT SYSTEM
Town of Nantucket, Massachusetts Page 93 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2016
UAAL as a
Actuarial Actuarial Unfunded Percentage
Actuarial Value of Accrued AAL Funded Covered of Covered
Valuation Assets Liability (AAL)(UAAL)Ratio Payroll Payroll
Date (a)(b)(b-a)(a/b)(c)(b-a/c)
07/01/14 248,522$ 88,841,553$ 88,593,031$ 0.28%N/A N/A
07/01/12 - 88,559,116 88,559,116 0%N/A N/A
07/01/10 - 82,253,000 82,253,000 0%N/A N/A
07/01/09 - 127,923,000 127,923,000 0%N/A N/A
07/01/07 - 104,980,000 104,980,000 0%N/A N/A
Annual (A)
Year Ended OPEB Actual Percentage
June 30,Cost Contributions Contributed
2016 7,915,877$ 2,640,352$ 33.4%
2015 7,430,993 2,278,693 30.7%
2014 7,587,850 2,869,694 37.8%
2013 7,177,116 2,612,243 36.4%
2012 6,257,000 2,534,000 40.5%
2011 5,905,000 2,200,000 37.3%
N/A - Information not available.
See accompanying independent auditors' report.
SCHEDULE OF FUNDING PROGRESS
SCHEDULES OF CONTRIBUTION FUNDING
Town of Nantucket, Massachusetts Page 94 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate taxes 67,270,550$ 67,270,550$ 67,529,653$ -$ 67,529,653 259,103
Personal property taxes 1,379,872 1,379,872 1,374,947 - 1,374,947 (4,925)
Tax title - - 293,016 - 293,016 293,016
Motor vehicle excise 1,900,000 1,900,000 2,674,907 - 2,674,907 774,907
Boat excise 34,000 34,000 36,132 - 36,132 2,132
Meals taxes 860,000 860,000 997,903 - 997,903 137,903
Room occupancy taxes 2,550,000 2,550,000 3,428,604 - 3,428,604 878,604
73,994,422 73,994,422 76,335,162 - 76,335,162 2,340,740
Intergovernmental:
State aid - chapter 70 2,980,944 2,980,944 2,980,944 - 2,980,944 -
State aid - unrestricted 73,041 73,041 73,041 - 73,041 -
State aid - state owned land 116,162 116,162 106,482 - 106,482 (9,680)
State aid - other 2,237 2,237 6,718 - 6,718 4,481
Federal disaster aid - - 843,805 - 843,805 843,805
3,172,384 3,172,384 4,010,990 - 4,010,990 838,606
Departmental fees, charges, and other:
Payments in lieu of taxes 7,330 7,330 33,231 - 33,231 25,901
Selectmen rentals 183,950 183,950 310,324 - 310,324 126,374
Planning office filing and inspection fees 203,000 203,000 94,896 - 94,896 (108,104)
Police department fees 147,600 147,600 134,121 - 134,121 (13,479)
Public safety detail charges 60,000 60,000 31,379 - 31,379 (28,621)
Fire department fees 58,200 58,200 54,545 - 54,545 (3,655)
Inspection fees 216,060 216,060 420,398 - 420,398 204,338
Harbormaster fees 179,140 179,140 317,535 - 317,535 138,395
Public works rentals 190,000 190,000 116,016 - 116,016 (73,984)
Historic district fees 176,550 176,550 182,913 - 182,913 6,363
Medicare reimbursements 49,245 49,245 11,388 - 11,388 (37,857)
Other miscellaneous 211,160 211,160 419,589 - 419,589 208,429
1,682,235 1,682,235 2,126,335 - 2,126,335 444,100
Licenses and permits:
Liquor licenses 254,000 254,000 214,900 - 214,900 (39,100)
Building permits 869,470 869,470 1,219,361 - 1,219,361 349,891
Other licenses and permits 213,995 213,995 278,245 - 278,245 64,250
1,337,465 1,337,465 1,712,506 - 1,712,506 375,041
Fines and forfeitures:
Parking and court fines 252,300 252,300 223,712 - 223,712 (28,588)
Other fines 12,500 12,500 45,729 - 45,729 33,229
264,800 264,800 269,441 - 269,441 4,641
Penalties and interest on taxes 599,140 599,140 657,303 - 657,303 58,163
Interest and investment income 110,500 110,500 124,002 - 124,002 13,502
Total Revenues 81,160,946 81,160,946 85,235,739 - 85,235,739 4,074,793
Town of Nantucket, Massachusetts Page 95 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
General Government:
Moderator:
Salary 180 180 178 - 178 2
Operating 1,500 1,500 - - - 1,500
1,680 1,680 178 - 178 1,502
Town Administration:
Salary 657,200 657,200 600,777 - 600,777 56,423
Operating 330,746 340,746 205,338 92,864 298,202 42,544
Articles 2,347,800 2,286,801 659,068 1,627,733 2,286,801 -
3,335,746 3,284,747 1,465,183 1,720,597 3,185,780 98,967
Finance Committee:
Operating 17,675 17,675 17,675 - 17,675 -
Articles 500,000 199,616 - - - 199,616
517,675 217,291 17,675 - 17,675 199,616
Finance and Operations:
Salary 611,840 588,188 536,577 - 536,577 51,611
Operating 255,667 250,057 134,401 75,801 210,202 39,855
Articles 10,230 33,390 24,038 7,609 31,647 1,743
877,737 871,635 695,016 83,410 778,426 93,209
Assessor:
Salary 414,251 414,251 400,293 - 400,293 13,958
Operating 199,461 199,461 123,699 166 123,865 75,596
613,712 613,712 523,992 166 524,158 89,554
Collector:
Salary 300,570 300,570 291,011 - 291,011 9,559
Operating 90,208 90,208 62,771 2,384 65,155 25,053
390,778 390,778 353,782 2,384 356,166 34,612
Treasurer:
Salary 310,410 334,062 334,062 - 334,062 -
Operating 110,860 111,027 106,880 4,147 111,027 -
421,270 445,089 440,942 4,147 445,089 -
Information Systems/GIS:
Salary 500,760 500,760 457,171 29,744 486,915 13,845
Operating 361,044 390,650 332,179 480 332,659 57,991
861,804 891,410 789,350 30,224 819,574 71,836
Legal:
Operating 369,834 469,835 383,200 67,602 450,802 19,033
369,834 469,835 383,200 67,602 450,802 19,033
Human Resources:
Salary 152,700 170,700 170,853 - 170,853 (153)
Operating 28,770 33,770 33,942 789 34,731 (961)
181,470 204,470 204,795 789 205,584 (1,114)
Town Clerk:
Salary 240,500 246,500 246,990 - 246,990 (490)
Operating 80,490 80,490 59,214 18,830 78,044 2,446
320,990 326,990 306,204 18,830 325,034 1,956
(continued)
Town of Nantucket, Massachusetts Page 96 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Nantucket Planning Office:
Salary 750,150 680,053 673,582 - 673,582 6,471
Operating 279,908 278,087 255,738 11,762 267,500 10,587
1,030,058 958,140 929,320 11,762 941,082 17,058
Public Buildings:
Operating 1,000,431 1,015,964 833,440 142,884 976,324 39,640
1,000,431 1,015,964 833,440 142,884 976,324 39,640
Natural Resources:
Salary 465,824 465,824 457,557 - 457,557 8,267
Operating 91,061 91,026 74,585 10,356 84,941 6,085
556,885 556,850 532,142 10,356 542,498 14,352
Insurances:
Auto casualty 120,000 120,000 124,286 - 124,286 (4,286)
Blanket liability 1,429,000 1,429,000 1,022,205 - 1,022,205 406,795
Claims deductible 89,675 89,675 56,205 5,000 61,205 28,470
Insurance consulting 42,910 42,910 55,940 2,783 58,723 (15,813)
1,681,585 1,681,585 1,258,636 7,783 1,266,419 415,166
Total General Government 12,161,655 11,930,176 8,733,855 2,100,934 10,834,789 1,095,387
Public Safety:
Police:
Salary 3,953,640 4,198,640 4,175,514 - 4,175,514 23,126
Operating 1,056,490 811,490 610,513 177,677 788,190 23,300
5,010,130 5,010,130 4,786,027 177,677 4,963,704 46,426
Centralized Dispatch:
Salary 701,520 701,520 698,405 - 698,405 3,115
701,520 701,520 698,405 - 698,405 3,115
Fire:
Salary 2,355,088 2,462,088 2,454,486 - 2,454,486 7,602
Operating 279,887 289,887 273,428 17,165 290,593 (706)
2,634,975 2,751,975 2,727,914 17,165 2,745,079 6,896
Inspectors:
Salary 597,060 598,254 598,254 - 598,254 -
Operating 22,040 23,629 23,240 389 23,629 -
619,100 621,883 621,494 389 621,883 -
Emergency Management:
Operating 7,000 7,000 1,859 75 1,934 5,066
7,000 7,000 1,859 75 1,934 5,066
Marine:
Salary 691,800 691,800 665,767 - 665,767 26,033
Operating 96,158 96,158 54,313 4,993 59,306 36,852
Articles 213,230 213,230 28,075 185,155 213,230 -
1,001,188 1,001,188 748,155 190,148 938,303 62,885
Total Public Safety 9,973,913 10,093,696 9,583,854 385,454 9,969,308 124,388
Town of Nantucket, Massachusetts Page 97 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Education:
Salary and operating 25,880,506 25,880,506 24,839,584 822,902 25,662,486 218,020
Articles 1,878,064 1,878,064 952,158 925,905 1,878,063 1
Total Education 27,758,570 27,758,570 25,791,742 1,748,807 27,540,549 218,021
Public Works:
Public Works:
Salary 2,092,796 2,182,796 2,157,592 - 2,157,592 25,204
Operating 497,307 547,307 450,460 46,449 496,909 50,398
Articles 545,547 544,792 159,786 335,007 494,793 49,999
3,135,650 3,274,895 2,767,838 381,456 3,149,294 125,601
Street Lighting:
Operating 181,808 180,000 150,909 - 150,909 29,091
181,808 180,000 150,909 - 150,909 29,091
Mosquito Control:
Operating 111,843 111,843 89,662 - 89,662 22,181
111,843 111,843 89,662 - 89,662 22,181
Snow and Ice Removal:
Operating 35,000 35,000 234,432 73,393 307,825 (272,825)
35,000 35,000 234,432 73,393 307,825 (272,825)
Gas/Town Vehicles:
Operating 380,000 380,000 237,191 71,033 308,224 71,776
380,000 380,000 237,191 71,033 308,224 71,776
Total Public Works 3,844,301 3,981,738 3,480,032 525,882 4,005,914 (24,176)
Health and Human Services:
Health:
Salary 110,021 194,083 194,083 - 194,083 -
Operating 31,815 39,700 29,608 8,726 38,334 1,366
141,836 233,783 223,691 8,726 232,417 1,366
Commision on Disability:
Salary 10,100 10,100 7,531 - 7,531 2,569
Operating 1,590 1,590 1,442 - 1,442 148
11,690 11,690 8,973 - 8,973 2,717
Senior Services/Council on Aging:
Salary 154,240 159,452 159,452 - 159,452 -
Operating 26,717 26,100 15,053 295 15,348 10,752
180,957 185,552 174,505 295 174,800 10,752
Veterans Services:
Salary 15,000 15,000 4,678 - 4,678 10,322
Operating 17,900 17,900 11,212 612 11,824 6,076
32,900 32,900 15,890 612 16,502 16,398
Human Services:
Salary 184,160 178,948 69,829 - 69,829 109,119
Operating 16,518 15,200 4,887 - 4,887 10,313
Articles 350,000 350,000 338,688 11,312 350,000 -
550,678 544,148 413,404 11,312 424,716 119,432
Total Health and Human Services 918,061 1,008,073 836,463 20,945 857,408 150,665
(Continued)
Town of Nantucket, Massachusetts Page 98 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Atheneum (Library):
Operating 693,439 693,439 693,439 - 693,439 -
693,439 693,439 693,439 - 693,439 -
Visitor Services:
Salary 277,045 314,545 308,969 - 308,969 5,576
Operating 153,985 146,465 126,367 30,348 156,715 (10,250)
431,030 461,010 435,336 30,348 465,684 (4,674)
Historical District Commission:
Salary 107,890 108,731 108,731 - 108,731 -
107,890 108,731 108,731 - 108,731 -
Town Clock:
Operating 4,998 4,700 1,486 77 1,563 3,137
4,998 4,700 1,486 77 1,563 3,137
Total Culture and Recreation 1,237,357 1,267,880 1,238,992 30,425 1,269,417 (1,537)
State and County Assessments:
State assessments and charges 67,044 67,044 74,803 - 74,803 (7,759)
Transportation authorities assessments 346,532 346,532 346,532 - 346,532 -
County assessments and charges 170,201 170,201 170,201 - 170,201 -
Total State and County Assessments 583,777 583,777 591,536 - 591,536 (7,759)
Pension and Fringe Benefits:
Medical Insurance:
Salary 11,258,000 10,980,000 10,698,582 1,751 10,700,333 279,667
11,258,000 10,980,000 10,698,582 1,751 10,700,333 279,667
Unemployment:
Salary 170,000 170,000 112,275 - 112,275 57,725
170,000 170,000 112,275 - 112,275 57,725
Workers' Compensation:
Salary 197,000 197,000 197,000 - 197,000 -
197,000 197,000 197,000 - 197,000 -
Laborer's Union Pension:
Salary 48,916 44,000 38,577 - 38,577 5,423
48,916 44,000 38,577 - 38,577 5,423
Pension Assessments:
Barnstable Retirement 3,567,165 3,567,165 3,567,128 - 3,567,128 37
3,567,165 3,567,165 3,567,128 - 3,567,128 37
Other Employee Benefits:
Salary 442,655 293,155 141,498 - 141,498 151,657
442,655 293,155 141,498 - 141,498 151,657
Total Pension and Fringe Benefits 15,683,736 15,251,320 14,755,060 1,751 14,756,811 494,509
Town of Nantucket, Massachusetts Page 99 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Debt Service 7,255,057 7,195,057 6,747,058 - 6,747,058 447,999
Total Expenditures 79,416,427 79,070,287 71,758,592 4,814,198 76,572,790 2,497,497
Other Financing Sources (Uses)
Transfers in 893,019 893,019 937,421 937,421 44,402
Transfers out (12,766,000) (18,801,710) (18,801,710) (18,801,710) -
Total Other Financing Sources (Uses)(11,872,981) (17,908,691) (17,864,289) (17,864,289)$ 44,402
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (10,128,462) (15,818,032) (4,387,142)$ 6,616,692$
Other Budgetary Items
Use of unassigned fund balance (free cash)3,915,169$ 9,225,415$
Use of excess abatement reserve (overlay surplus)- 379,324
Prior year encumbrances 2,161,707 2,161,707
Prior year articles 4,013,474 4,013,474
Article reversions 195,331 195,331
Prior year deficits (157,219) (157,219)
Total Other Budgetary Items 10,128,462 15,818,032
Net budget and actual -$ -$
(Concluded)
The notes to the financial statements are an integral part of this statement.
The notes to the required supplementary information are and integral part of this statement.
Town of Nantucket, Massachusetts Page 100 of 137 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2016
I. Budgetary Basis of Accounting
Budgetary Information – An annual budget is legally adopted for the General Fund and the Enterprise
Funds. The annual budgets are prepared by Town Administration, reviewed and approved by the
Board of Selectmen, recommended by the Finance Committee and voted by the taxpayers at the
Annual Town Meeting. Expenditures may not legally exceed appropriations at the department level,
or in the categories of personnel and non-personnel expenses. Transfers between and within
departments require approval at a Special Town Meeting, unless allowed under Massachusetts General
Law. At the close of each fiscal year, unencumbered appropriation balances lapse and revert to
unassigned fund balance.
The Town Meeting adopts an annual budget for the general fund in conformity with the guidelines
described above. During fiscal year 2016, Town Meeting approved various supplemental budgetary
appropriations which decreased departmental budgets approximately $350,000 and increased transfers
to other funds by approximately $6.0 million. The Finance Director’s Office has the responsibility to
ensure that budgetary control is maintained in the manner in which the appropriations were voted by
Town Meeting. Budgetary control is exercised through the Town’s accounting system.
Budgetary-to-GAAP Reconciliation – The Town’s general fund is prepared on a basis of accounting
other than GAAP to conform to the Uniform Municipal Accounting System basis of accounting as
prescribed by the Massachusetts Department of Revenue. A reconciliation of the budgetary-basis to
GAAP-basis results for the General Fund for the fiscal year ended June 30, 2016, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis 85,235,739$
Stabilization revenue -$ 209,822$ 209,822
Change in accruing revenues to GAAP basis (96,935) - (96,935)
On behalf payments 3,638,237 - 3,638,237
Revenues on a GAAP basis 3,541,302$ 209,822$ 88,986,863$
Expenditures on a budgetary basis 71,758,592$
Reclass indirect transfers against expenditures (643,019)$ -$ (643,019)
Refunding transaction 63,130 - 63,130
On behalf payments 3,638,237 - 3,638,237
Reclass transfer to private purpose trust - 1,000,000 1,000,000
Expenditures on a GAAP basis 3,058,348$ 1,000,000$ 75,816,940$
Other financing (uses) on a budgetary basis (17,864,289)$
Reclass indirect transfers against expenditures (643,019)$ -$ (643,019)
Stabilization transfers - 1,250,000 1,250,000
Refunding transaction 63,130 - 63,130
Reclass transfer to private purpose trust - 1,000,000 1,000,000
Other financing (uses) on a GAAP basis (579,889)$ 2,250,000$ (16,194,178)$
Town of Nantucket, Massachusetts Page 101 of 137 Comprehensive Annual Financial Report
Excess of Expenditures Over Appropriations – During the fiscal year ended, the Town overspent its
appropriation for snow and ice removal costs by $272,825. This will be raised through subsequent tax
assessments when the Town sets its tax rate for fiscal year 2017.
Town of Nantucket, Massachusetts Page 102 of 137 Comprehensive Annual Financial Report
Combining Statements
Town of Nantucket, Massachusetts Page 103 of 137 Comprehensive Annual Financial Report
Nonmajor Governmental Funds
Special Revenue Funds –
Special revenue funds are used to account for certain revenue generating activities that are legally and/or
programmatically restricted to expenditures for a specific purpose. From the Town’s financial ledgers,
these activities can be distinctly categorized into the following groupings:
School Lunch Fund – This segregated revolving fund accounts for the activities of the child nutrition
programs; amounts collected from services include federal and state meal reimbursements and meal
charges.
School Federal Grants – This fund accounts for educational-based grant programs received either directly
from federal agencies or indirectly through pass-through entities.
School State Grants – This fund accounts for educational-based grant programs received directly from
State agencies.
Town Federal Grants – This fund accounts for non-school grant programs received either directly from
federal or indirectly through pass-through entities.
Town State Grants – This fund accounts for non-school grant programs received directly from State
agencies.
Community Preservation – This fund accounts for monies received by the Town through a tax surcharge
to its taxpayers and a match from the State. The purpose of the fund is for the preservation of space in
Nantucket.
Road Improvements – This fund accounts for monies received from the State under MGL Chapter 90 for
eligible road improvements.
School Revolving Funds – This fund accounts for educational-based activities within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71.
Town Revolving Funds – This fund accounts for the non-school related activity within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes.
Property Sale Proceeds – This fund accounts for receipts collected from the sale of Town owned real
property.
Gifts – This fund accounts for donated monies which relate to all Town activities.
Town of Nantucket, Massachusetts Page 104 of 137 Comprehensive Annual Financial Report
Permanent Funds –
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support governmental programs.
Cemetery Trust Funds – This fund accounts for contributions earmarked for the perpetual care and
maintenance of cemetery facilities and property.
Other Trust Funds – This fund accounts for all contributions including: gifts, donations and bequests for
which only earnings on the original trust corpus may be expended to benefit government approved
programs, other than those associated with cemetery and library activities.
Town of Nantucket, Massachusetts Page 105 of 137 Comprehensive Annual Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Assets:
Cash and cash equivalents 212,133$ 142,540$ 603,708$ 31,005$ 786,393$
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Departmental and other - - - - 3,883
Intergovernmental 42,375 - - 59,825 129,050
Total Assets 254,508 142,540 603,708 90,830 919,326
Total Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources 254,508$ 142,540$ 603,708$ 90,830$ 919,326$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable 61,881$ 78$ -$ 1,859$ 53,990$
Accrued payroll and withholdings - 2,331 - 4,159 1,870
Other liabilities - - - - -
Due to other funds - - - - -
Bond anticipation notes payable - - - - 265,551
Total Liabilities 61,881 2,409 - 6,018 321,411
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - - -
Unavailable revenue - other - - - - 3,883
Total Deferred Inflows of Resources - - - - 3,883
Fund Balances:
Nonspendable - - - - -
Restricted 192,627 140,131 603,708 84,812 594,032
Total Fund Balances 192,627 140,131 603,708 84,812 594,032
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 254,508$ 142,540$ 603,708$ 90,830$ 919,326$
JUNE 30, 2016
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Town of Nantucket, Massachusetts Page 106 of 137 Comprehensive Annual Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
4,769,191$ -$ 1,000,935$ 5,309,124$ 1,602,555$ 578,238$ 15,035,822$
- - - - - - -
115,134 - - - - - 115,134
45,432 - - 153,754 - - 203,069
- 362,461 - - - - 593,711
4,929,757 362,461 1,000,935 5,462,878 1,602,555 578,238 15,947,736
- - - - - - -
4,929,757$ 362,461$ 1,000,935$ 5,462,878$ 1,602,555$ 578,238$ 15,947,736$
269,723$ -$ -$ 543,345$ -$ 42,538$ 973,414$
2,304 - 33,007 60,279 - - 103,950
- - 146,443 - - - 146,443
- 362,461 - - - - 362,461
- - - - - - 265,551
272,027 362,461 179,450 603,624 - 42,538 1,851,819
115,134 - - - - - 115,134
45,432 - - 153,754 - - 203,069
160,566 - - 153,754 - - 318,203
- - - - - - -
4,497,164 - 821,485 4,705,500 1,602,555 535,700 13,777,714
4,497,164 - 821,485 4,705,500 1,602,555 535,700 13,777,714
4,929,757$ 362,461$ 1,000,935$ 5,462,878$ 1,602,555$ 578,238$ 15,947,736$
(Continued)
Town of Nantucket, Massachusetts Page 107 of 137 Comprehensive Annual Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2016
Permanent Funds Total
Cemetery Other Sub-total Nonmajor
Trust Trust Permanent Governmental
Funds Funds Funds Funds
Assets:
Cash and cash equivalents -$ -$ -$ 15,035,822$
Investments 149,053 18,144 167,197 167,197
Receivables, net of allowance for uncollectibles:
Property taxes - - - 115,134
Departmental and other - - - 203,069
Intergovernmental - - - 593,711
Total Assets 149,053 18,144 167,197 16,114,933
Total Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources 149,053$ 18,144$ 167,197$ 16,114,933$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable -$ -$ -$ 973,414$
Accrued payroll and withholdings - - - 103,950
Other liabilities - - - 146,443
Due to other funds - - - 362,461
Bond anticipation notes payable - - - 265,551
Total Liabilities - - - 1,851,819
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - 115,134
Unavailable revenue - other - - - 203,069
Total Deferred Inflows of Resources - - - 318,203
Fund Balances:
Nonspendable 44,305 500 44,805 44,805
Restricted 104,748 17,644 122,392 13,900,106
Total Fund Balances 149,053 18,144 167,197 13,944,911
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 149,053$ 18,144$ 167,197$ 16,114,933$
(Concluded)
Town of Nantucket, Massachusetts Page 108 of 137 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 109 of 137 Comprehensive Annual Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Revenues:
Intergovernmental 176,110$ 483,967$ 549,938$ 254,256$ 564,012$
Motor vehicle and other excises - - - - -
Community preservation surcharges - - - - -
Investment income - - - 45 -
Departmental and other revenue 392,508 - - - 53,624
Contributions and donations - - - - -
Total Revenues 568,618 483,967 549,938 254,301 617,636
Expenditures:
Current:
General government - - - 234,195 120,499
Public safety - - - 21,645 110,683
Education 476,796 513,705 501,297 - -
Public works - - - - -
Health and human services - - - - 62,756
Culture and recreation - - - - 31,959
Debt service:
Principal - - - - 311,793
Interest - - - - 292
Total Expenditures 476,796 513,705 501,297 255,840 637,982
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 91,822 (29,738) 48,641 (1,539) (20,346)
Other Financing Sources (Uses):
Sale of capital assets - - - - -
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources (Uses)- - - - -
Net Change in Fund Balances 91,822 (29,738) 48,641 (1,539) (20,346)
Fund Balances - Beginning of Year 100,805 169,869 555,067 86,351 614,378
Fund Balances - End of Year 192,627$ 140,131$ 603,708$ 84,812$ 594,032$
Special Revenue Funds
FISCAL YEAR ENDED JUNE 30, 2016
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 110 of 137 Comprehensive Annual Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
580,511$ 412,461$ -$ 178,798$ -$ -$ 3,200,053$
- - - 36,237 - - 36,237
1,930,955 - - - - - 1,930,955
33,610 - - 2,131 - - 35,786
34,022 - 1,097,100 1,509,945 - - 3,087,199
- - - - - 408,337 408,337
2,579,098 412,461 1,097,100 1,727,111 - 408,337 8,698,567
- - - 265,297 2,137 121,364 743,492
- - - 1,006,612 - 145,923 1,284,863
- - 1,481,772 - - 146,866 3,120,436
- 412,461 - 1,218 - 29,624 443,303
- - - 146,369 - 6,309 215,434
2,986,784 - - 95,900 - 439 3,115,082
- - - - - - 311,793
3,127 - - - - - 3,419
2,989,911 412,461 1,481,772 1,515,396 2,137 450,525 9,237,822
(410,813) - (384,672) 211,715 (2,137) (42,188) (539,255)
- - - - 1,439,916 - 1,439,916
- - 350,000 - - - 350,000
- - - (814,402) (6,953,000) (120,000) (7,887,402)
- - 350,000 (814,402) (5,513,084) (120,000) (6,097,486)
(410,813) - (34,672) (602,687) (5,515,221) (162,188) (6,636,741)
4,907,977 - 856,157 5,308,187 7,117,776 697,888 20,414,455
4,497,164$ -$ 821,485$ 4,705,500$ 1,602,555$ 535,700$ 13,777,714$
(Continued)
Town of Nantucket, Massachusetts Page 111 of 137 Comprehensive Annual Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2016
Permanent Funds Total
Cemetery Other Sub-total Nonmajor
Trust Trust Permanent Governmental
Funds Funds Funds Funds
Revenues:
Intergovernmental -$ -$ -$ 3,200,053$
Motor vehicle and other excises - - - 36,237
Community preservation surcharges - - - 1,930,955
Investment income 4,969 641 5,610 41,396
Departmental and other revenue 5,400 - 5,400 3,092,599
Contributions and donations - - - 408,337
Total Revenues 10,369 641 11,010 8,709,577
Expenditures:
Current:
General government - - - 743,492
Public safety - - - 1,284,863
Education - - - 3,120,436
Public works - - - 443,303
Health and human services - - - 215,434
Culture and recreation - - - 3,115,082
Pension and fringe benefits - - - -
Debt service:
Principal - - - 311,793
Interest - - - 3,419
Total Expenditures - - - 9,237,822
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 10,369 641 11,010 (528,245)
Other Financing Sources (Uses):
Sale of capital assets - - - 1,439,916
Transfers in - - - 350,000
Transfers out - - - (7,887,402)
Total Other Financing Sources (Uses)- - - (6,097,486)
Net Change in Fund Balances 10,369 641 11,010 (6,625,731)
Fund Balances - Beginning of Year 138,684 17,503 156,187 20,570,642
Fund Balances - End of Year 149,053$ 18,144$ 167,197$ 13,944,911$
(Concluded)
Town of Nantucket, Massachusetts Page 112 of 137 Comprehensive Annual Financial Report
Internal Service Funds
Narrative
Internal service funds are used to account for the financing of services provided by one department to
other departments or governmental units. The Town’s risk financing activities accounts for in the internal
service funds can be distinctly categorized into the following groupings:
Health Claims – This fund accounts for the group health and dental insurance activity for active Town
employees and retirees.
Workers’ Compensation Claims – This fund accounts for workers’ compensation benefits, replacement
wages and medical claims expenses of employees that qualify for such benefits.
Town of Nantucket, Massachusetts Page 113 of 137 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2016
Total
Health Workers'Internal
Claims Compensation Service Funds
Assets:
Current assets:
Cash and cash equivalents 2,340,444$ 100,899$ 2,441,343$
Reinsured claims receivable 197,238 - 197,238
Prepaid items 1,183,200 - 1,183,200
Total Assets 3,720,882 100,899 3,821,781
Total Deferred Outflows of Resources - - -
Total Assets and Deferred Outflows of Resources 3,720,882 100,899 3,821,781
Liabilities:
Current liabilities:
Warrants and accounts payable 458,108$ 4,413$ 462,521$
Health claims incurred but not reported 898,614 - 898,614
Workers' compensation claims - 104,847 104,847
Total Current Liabilities 1,356,722 109,260 1,465,982
Total Deferred Inflows of Resources - - -
Total Liabilities and Deferred Inflows of Resources 1,356,722 109,260 1,465,982
Net Position:
Unrestricted 2,364,160 (8,361) 2,355,799
TOTAL NET POSITION 2,364,160$ (8,361)$ 2,355,799$
Town of Nantucket, Massachusetts Page 114 of 137 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2016
Total
Health Workers'Internal Service
Claims Compensation Funds
Operating Revenues:
Employee contributions 2,226,306$ -$ 2,226,306$
Employer contributions 12,618,730 197,000 12,815,730
Reinsured claims proceeds 349,942 - 349,942
Total Operating Revenues 15,194,978 197,000 15,391,978
Operating Expenditures:
Employee benefits 14,358,950 261,925 14,620,875
Operating Income (loss)836,028 (64,925) 771,103
Nonoperating Revenues:
Investment Income 278 13,836 14,114
Income (loss) Before Transfers 836,306 (51,089) 785,217
Change in Net Position 836,306 (51,089) 785,217
Fund Balances - Beginning of Year 1,527,854 42,728 1,570,582
Fund Balances - End of Year 2,364,160$ (8,361)$ 2,355,799$
Town of Nantucket, Massachusetts Page 115 of 137 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2016
Total
Health Workers'Internal Service
Claims Compensation Funds
Cash Flows From Operating Activities:
Receipts from employees 2,226,306$ -$ 2,226,306$
Receipts from employer 12,618,730 197,000 12,815,730
Receipts from reinsured claims 303,236 - 303,236
Payments for interfund services used (14,882,257) (285,126) (15,167,383)
Net Cash Provided by (Used in) Operating Activities 266,015 (88,126) 177,889
Cash Flows From Investing Activities:
Investment income 278 13,836 14,114
Investment of operating cash - 116,635 116,635
Net Cash Provided by (Used in) Investing Activities 278 130,471 130,749
Net Change in Cash and Cash Equivalents 266,293 42,345 308,638
Cash and Cash Equivalents:
Beginning of the Year 2,074,151 58,554 2,132,705
End of the Year 2,340,444$ 100,899$ 2,441,343$
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss)836,028$ (64,925)$ 771,103$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables (46,706) - (46,706)
Prepaid items (1,033,559) - (1,033,559)
Deposits held by third party 1,952,600 - 1,952,600
Accounts payable and accrued expenses (1,442,348) (23,201) (1,465,549)
Net Cash Provided by (Used in) Operating Activities 266,015$ (88,126)$ 177,889$
Town of Nantucket, Massachusetts Page 116 of 137 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 117 of 137 Comprehensive Annual Financial Report
Fiduciary Funds
Agency Funds –
Agency funds are used to account for assets maintained in a custodial capacity. Such activities primarily
consist of performance bonds and school deposits held, as well as, monies due to Town personnel for
certain services rendered that were collected from external parties on their behalf.
Town of Nantucket, Massachusetts Page 118 of 137 Comprehensive Annual Financial Report
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2016
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents 988,566$ 1,608,526$ (1,160,527)$ 1,436,565$
Receivables, net of allowance 115,510 479,117 (495,338) 99,289
Total Assets 1,104,076$ 2,087,643$ (1,655,865)$ 1,535,854$
Liabilities
Current liabilities:
Warrants and accounts payable 35,000$ 403,356$ (419,135)$ 19,221$
Accrued payroll and withholdings 10,795 474,216 (473,214) 11,797
Agency liabilities 410,851 784,611 (690,483) 504,979
Planning board deposits 647,430 425,460 (76,033) 996,857
Total Liabilities 1,104,076$ 2,087,643$ (1,658,865)$ 1,532,854$
Town of Nantucket, Massachusetts Page 119 of 137 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 120 of 137 Comprehensive Annual Financial Report
STATISTICAL SECTION
The Island is known for having some of the most scenic water views in the world; and Jetties’ Beach
(above and below) is a prime example of the breathtaking beauty both during the peak beach hours and at
sunset. It is a wonderful and peaceful place for families to enjoy their day.
Statistical Section
This part of the comprehensive annual financial report presents information as a context for understanding
what the information in the financial statements, note disclosures, and required supplementary
information says about the Town’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the Town’s financial
performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the Town’s most significant local revenue
source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the Town’s current
levels of outstanding debt, and the Town’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Town’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the Town’s financial report relates to the services the Town provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the financial
statements for the relevant year.
Town of Nantucket, Massachusetts Page 121 of 137 Comprehensive Annual Financial Report
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Governmental activities:
Invested in capital assets……….…………………. 145,427,507$ 153,639,878$ 156,034,000$ 171,102,098$ 177,625,537$ 180,988,633$ 179,338,227$ 175,687,378$ 181,710,594$ 186,717,700$
Restricted………………………………………………………………………….. 9,291,543 13,803,760 14,401,121 13,294,995 3,150,056 2,459,409 15,818,386 20,511,155 20,995,512 27,131,162
Unrestricted……………………………………………………………… 21,078,145 8,821,281 3,072,293 (7,324,139) 2,459,785 1,293,781 (1,831,770) 1,501,847 (36,480,970) (44,950,433)
Total governmental activities net position……………………………………….. 175,797,195$ 176,264,919$ 173,507,414$ 177,072,954$ 183,235,378$ 184,741,823$ 193,324,843$ 197,700,380$ 166,225,136$ 168,898,429$
Business-type activities:
Invested in capital assets……….…………………. 69,117,523$ 78,358,807$ 109,858,055$ 114,762,981$ 119,408,316$ 118,502,610$ 116,596,172$ 112,541,419$ 119,242,898$ 120,659,914$
Restricted……………………………...…………………..… - - - - - - - - - -
Unrestricted………………………………………………………………. 12,511,077 24,272,569 7,313,124 7,264,425 3,199,868 9,865,892 11,287,299 15,914,047 (1,523,044) 6,361,265
Total business-type activities net position……………………………. 81,628,600$ 102,631,376$ 117,171,179$ 122,027,406$ 122,608,184$ 128,368,502$ 127,883,471$ 128,455,466$ 117,719,854$ 127,021,179$
Primary government:
Invested in capital assets……….…………………. 214,545,030$ 231,998,685$ 265,892,055$ 285,865,079$ 297,033,853$ 299,491,243$ 295,934,399$ 288,228,797$ 300,953,492$ 307,377,614$
Restricted………………………………………………………………………. 9,291,543 13,803,760 14,401,121 13,294,995 3,150,056 2,459,409 15,818,386 20,511,155 20,995,512 27,131,162
Unrestricted…………………………………………………………… 33,589,222 33,093,850 10,385,417 (59,714) 5,659,653 11,159,673 9,455,529 17,415,894 (38,004,014) (38,589,168)
Total primary government net position…………………………………………………. 257,425,795$ 278,896,295$ 290,678,593$ 299,100,360$ 305,843,562$ 313,110,325$ 321,208,314$ 326,155,846$ 283,944,990$ 295,919,608$
NET POSITION BY COMPONENT
Town of Nantucket, Massachusetts Page 122 of 137 Comprehensive Annual Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Expenses -
Governmental activities:
General government…...……………………………………………………9,115,782$ 8,937,924$ 10,730,618$ 10,319,800$ 10,940,662$ 10,015,072$ 9,765,641$ 10,068,331$ 11,574,757$ 13,375,694$
Public safety…..………………………………………………………………10,073,622 10,691,407 14,346,976 14,684,244 12,172,241 13,601,442 14,042,554 14,779,274 15,484,735 17,211,310
Education……..………………………………………………………………….25,691,799 27,607,296 27,861,059 30,380,350 28,867,553 29,011,944 35,190,752 36,829,209 38,839,302 40,296,659
Public works……...……………………………………………………………….3,889,166 3,146,271 4,195,016 4,514,082 4,082,163 4,692,304 4,171,361 4,862,640 5,131,842 5,404,039
Health and human services………………………………………………………7,537,766 7,473,662 9,699,805 9,714,459 2,765,497 3,741,941 2,301,279 1,641,325 1,528,171 1,544,941
Culture and recreation………...……………………………………………………..2,147,117 2,232,982 3,872,616 3,392,381 2,119,755 2,170,903 2,327,315 5,622,457 5,397,098 4,646,084
Interest expense……………………………………………………………………2,246,838 2,419,841 3,189,350 2,351,987 2,354,427 2,082,337 2,368,538 2,075,324 1,616,600 1,478,749
Total government activities expenses……………………………………..60,702,090 62,509,383 73,895,440 75,357,303 63,302,298 65,315,943 70,167,440 75,878,560 79,572,505 83,957,476
Business-type activities:
Siasconset Water……………………………………………………………………413,420 434,272 577,851 602,507 719,668 682,682 712,820 724,927 738,719 811,237
Wannacomet Water……………………………………………………………………2,805,631 3,507,036 4,022,463 3,582,097 3,570,999 3,674,493 3,785,742 3,624,731 3,544,191 4,088,800
Sewer……………………………………………………………………3,954,894 4,416,855 5,527,480 5,491,001 5,613,007 5,760,776 6,149,616 6,002,582 6,255,624 6,338,700
Solid waste……………………………………………………………………8,983,570 8,988,076 10,575,310 8,114,794 8,679,984 8,851,378 11,302,336 8,963,029 10,324,817 11,587,152
Nantucket Memorial Airport……………………………………………………………………12,171,263 13,717,716 11,912,883 13,541,915 13,158,406 15,331,231 14,523,220 15,592,198 15,096,177 14,287,119
Our Island Home……………………………………………………………………- - - - 8,808,654 6,923,716 7,079,676 7,670,514 7,945,959 8,358,350
Total business-type activities expenses……………………………………..28,328,778 31,063,955 32,615,987 31,332,314 40,550,718 41,224,276 43,553,410 42,577,981 43,905,487 45,471,358
Total primary government expenses……………………………………….89,030,868$ 93,573,338$ 106,511,427$ 106,689,617$ 103,853,016$ 106,540,219$ 113,720,850$ 118,456,541$ 123,477,992$ 129,428,834$
Program Revenues -
Governmental activities:
Charges for services:
General government…………………………………………………General government…...……………………………………………………448,176$ 1,018,223$ 211,203$ 1,358,150$ 426,552$ 741,512$ 622,049$ 917,730$ 771,006$ 1,121,165$
Public safety………………………………………………………………..Public safety…..………………………………………………………………2,266,005 2,028,994 1,633,813 1,418,330 1,362,466 1,668,420 2,771,517 3,213,998 3,203,714 3,703,493
Education……………………………………………………………….Education……..………………………………………………………………….569,468 688,028 515,790 498,985 501,915 780,977 1,488,121 1,490,713 1,433,969 1,500,573
Public works……………………………………………………………….Public works……...……………………………………………………………….124,570 69,200 66,298 55,092 59,430 276,502 300,317 340,272 376,600 278,408
Health and human services………………………………………………………2,687,242 3,284,823 3,120,051 3,661,973 35,445 82,788 132,655 188,221 190,627 227,273
Culture and recreation………...……………………………………………………..348,352 318,742 321,181 289,279 325,010 522,063 248,089 295,416 346,626 329,022
Operating grants and contributions……………………………………7,391,686 5,462,762 5,795,452 5,090,233 3,989,493 2,131,096 6,022,440 6,230,362 6,761,994 9,241,317
Capital grants and contributions…………………………………………..1,881,330 1,991,891 1,270,878 1,230,625 1,067,782 1,030,215 1,874,830 289,066 1,886,943 1,881,938
Total government activities program revenues...……………………………..15,716,829 14,862,663 12,934,666 13,602,667 7,768,093 7,233,573 13,460,018 12,965,778 14,971,479 18,283,189
Business-type activities:
Charges for services……………….………………………………….24,449,745 25,376,292 24,172,299 24,820,469 27,568,533 32,847,185 31,799,794 33,592,609 33,738,945 39,612,392
Operating grants and contributions……………………………………3,494,514 1,773,605 1,113,866 776,060 1,287,762 746,499 85,992 91,000 90,820 133,570
Capital grants and contributions…………………………………………..- 6,804,856 15,208,679 7,057,702 3,307,275 2,146,931 1,989,292 2,479,717 6,078,185 3,175,470
Total business-type activities program revenues……………………………………..27,944,259 33,954,753 40,494,844 32,654,231 32,163,570 35,740,615 33,875,078 36,163,326 39,907,950 42,921,432
Total primary government program revenues……………………………………….43,661,088$ 48,817,416$ 53,429,510$ 46,256,898$ 39,931,663$ 42,974,188$ 47,335,096$ 49,129,104$ 54,879,429$ 61,204,621$
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..(44,985,261)$ (47,646,720)$ (60,960,774)$ (61,754,636)$ (55,534,205)$ (58,082,370)$ (56,707,422)$ (62,912,782)$ (64,601,026)$ (65,674,287)$
Business-type activities……………………....……………………………..(384,519) 2,890,798 7,878,857 1,321,917 (8,387,148) (5,483,661) (9,678,332) (6,414,655) (3,997,537) (2,549,926)
Total primary government net (expense)/program revenue……………………………………….(45,369,780)$ (44,755,922)$ (53,081,917)$ (60,432,719)$ (63,921,353)$ (63,566,031)$ (66,385,754)$ (69,327,437)$ (68,598,563)$ (68,224,213)$
(continued)
Town of Nantucket, Massachusetts Page 123 of 137 Comprehensive Annual Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Revenues and other Changes in Net Position -
Governmental activities:
Real estate and personal property taxes,
net of tax refunds payable…………………………………………………. 51,865,354$ 55,581,598$ 57,830,875$ 60,956,838$ 61,948,050$ 61,863,287$ 63,594,267$ 64,160,459$ 65,895,498$ 68,978,062$
Motor vehicle and other excise taxes…………………………………………………… 2,222,084 2,367,735 2,201,004 1,852,563 1,867,286 2,066,878 2,338,423 2,314,472 2,607,277 2,801,463
Hotel and meals excise……………………………………………..1,291,414 1,343,140 1,237,233 1,035,291 2,726,360 2,745,571 3,092,446 3,558,082 4,026,389 4,486,662
Penalties and interest on taxes………………………………………………………………398,796 410,785 473,701 659,062 633,008 687,221 677,906 598,411 882,916 657,303
Community Preservation Fund surcharges………………………………………………………………1,459,647 1,535,337 1,616,989 1,669,975 1,666,540 1,724,556 1,745,927 1,782,598 1,835,287 1,944,202
Grants and contributions not restricted to specific programs………………………………………………………………413,538 469,868 376,265 587,474 935,761 307,901 737,402 278,049 186,666 179,523
Unrestricted investment income……………………………………………. 355,288 634,539 277,329 160,970 65,960 173,698 66,235 159,229 257,230 389,334
Gain on sale of capital assets……………………………………………. -- -1,143,075 73,530 813,011 736,256 1,379,639 2,430,079 -
Other revenue………………………………………………………………593,982 583,420 850,819 789,238 748,060 438,678 604,871 ---
Transfers………………………………………………………………(4,124,760) (14,811,978) (6,660,946) (3,534,310) (8,967,926) (11,231,986) (8,303,291) (6,942,620) (7,881,295) (8,659,384)
Total governmental activities………………………………………………………………… 54,475,343 48,114,444 58,203,269 65,320,176 61,696,629 59,588,815 65,290,442 67,288,319 70,240,047 70,777,165
Business-type activities:
Unrestricted investment income……………………………………………………………… - - ---11,993 55,748 44,030 32,935 62,084
Gain on sale of capital assets………………………………………. - - ------829,212 -
Transfers………………………………………………………………4,124,760 18,111,978 6,660,946 3,534,310 8,967,926 11,231,986 8,303,291 6,942,620 7,881,295 8,659,384
Total business-type activities….………..…………………………………..4,124,760 18,111,978 6,660,946 3,534,310 8,967,926 11,243,979 8,359,039 6,986,650 8,743,442 8,721,468
Total primary government general revenues and other
changes in net position………………………………………………….58,600,103$ 66,226,422$ 64,864,215$ 68,854,486$ 70,664,555$ 70,832,794$ 73,649,481$ 74,274,969$ 78,983,489$ 79,498,633$
Changes in Net Position
Governmental activities……………………....……………………………..9,490,082$ 467,724$ (2,757,505)$ 3,565,540$ 6,162,424$ 1,506,445$ 8,583,020$ 4,375,537$ 5,639,021$ 5,102,878$
Business-type activities……………………....……………………………..3,740,241 21,002,776 14,539,803 4,856,227 580,778 5,760,318 (1,319,293) 571,995 4,745,905 6,171,542
Total primary government changes in net position………………………………………. 13,230,323$ 21,470,500$ 11,782,298$ 8,421,767$ 6,743,202$ 7,266,763$ 7,263,727$ 4,947,532$ 10,384,926$ 11,274,420$
(concluded)
Town of Nantucket, Massachusetts Page 124 of 137 Comprehensive Annual Financial Report
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Fund:
Nonspendable………………………………. -$ -$ -$ -$ -$ -$ -$ -$ 11,406$ -$
Restricted………………………………. 374,421 931,390 - 250,000 - 1,485,147 1,577,323 650,518 488,344 414,514
Committed…………………………….. 1,759,500 364,200 3,236,873 2,471,550 2,136,060 1,941,738 2,114,218 8,061,318 4,013,474 2,267,807
Assigned…………………………….. 1,689,093 2,142,523 2,906,103 3,136,435 4,488,570 2,182,323 5,146,635 2,047,757 6,323,207 3,028,651
Unassigned…………………………… 8,177,909 9,894,585 7,963,323 11,047,142 12,186,769 14,373,770 13,881,601 14,745,606 15,470,669 17,571,873
Total general fund…………………………….. 12,000,923$ 13,332,698$ 14,106,299$ 16,905,127$ 18,811,399$ 19,982,978$ 22,719,777$ 25,505,199$ 26,307,100$ 23,282,845$
All Other Governmental Funds:
Nonspendable……………………………….308,153$ 308,153$ 308,153$ 308,153$ 288,280$ 44,305$ 44,305$ 114,762$ 44,805$ 44,805$
Restricted………………………………. 15,373,074 20,851,574 19,796,252 19,427,291 16,039,900 18,987,991 17,267,229 18,709,640 20,950,707 27,086,357
Unassigned…………………………… - - - - (138,806) (104,106) - - (1,109,351) (17,737,453)
Total all other governmental funds…………….. 15,681,227$ 21,159,727$ 20,104,405$ 19,735,444$ 16,189,374$ 18,928,190$ 17,311,534$ 18,824,402$ 19,886,161$ 9,393,709$
Note: The Town implemented GASB 54 in fiscal year 2011. All previous years (2007 - 2010) data presented were restated to conform to GASB 54 presentation.
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 125 of 137 Comprehensive Annual Financial Report
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues:
Real estate and personal property taxes,
net of tax refunds……………………………………………………. 51,197,402$ 55,204,590$ 56,947,358$ 59,769,412$ 62,486,485$ 62,120,715$ 63,517,709$ 63,434,664$ 66,805,456$ 69,040,526$
Motor vehicle and boat excise………………………………………… 2,173,566 2,332,743 2,210,996 1,757,392 2,090,373 1,986,900 1,913,789 2,512,609 2,592,035 2,747,276
Hotel and meals excise………………………………………………. 1,291,414 1,343,140 1,237,233 1,035,291 2,726,360 2,745,571 3,092,446 3,558,082 4,026,389 4,486,662
Departmental and other……………………………………….. 8,224,727 8,649,333 8,970,419 7,834,515 4,032,108 6,414,807 4,910,252 4,641,243 4,606,897 5,218,934
Communities Preservation surcharges……………………………………… 1,459,647 1,535,337 1,616,989 1,669,975 1,666,540 1,724,556 1,739,157 1,773,519 1,844,628 1,930,955
Penalties and interest on taxes………………………………………………………..398,796 410,785 473,701 659,062 633,008 687,221 677,906 598,411 882,916 657,303
Licenses and permits………………………………………………………..1,805,794 1,321,794 919,644 932,004 1,015,424 1,058,052 1,075,074 1,405,911 1,455,080 1,712,506
Fines and forfeitures…………………………………………………………….411,439 266,693 240,648 248,231 254,285 223,054 208,503 296,917 283,179 269,441
Intergovernmental………………………………………………………..5,753,380 7,178,707 7,066,988 6,946,282 7,131,244 7,280,969 7,148,723 8,119,346 8,728,025 10,894,441
Contributions………………………………………………………..850 1,300 96,821 83,320 1,249,415 - 258,425 372,331 107,578 408,337
Investment income……………………………………………………….. 436,029 758,901 440,459 278,439 159,602 164,936 63,751 147,521 252,185 375,220
Total Revenue………………………………………………… 73,153,044 79,003,323 80,221,256 81,213,923 83,444,844 84,406,781 84,605,735 86,860,554 91,584,368 97,741,601
Expenditures:
General government……………………………………………………………. 5,572,471 5,327,955 5,090,318 5,837,165 6,209,441 7,179,875 7,114,409 7,596,379 8,658,027 8,946,404
Public safety……………………………………………………………… 6,617,581 8,416,870 8,997,534 10,513,956 10,437,125 10,041,235 9,018,372 9,284,157 9,444,096 10,698,049
Education………………………………………………………………… 21,743,149 22,044,432 23,209,204 23,175,994 23,764,115 23,829,685 23,139,532 24,585,011 25,775,358 25,329,925
Public works…………………………………………………………….. 3,646,799 3,997,185 3,031,636 2,323,502 2,406,506 2,582,349 2,242,399 2,700,144 2,977,129 2,981,431
Health and human services………………………………………………… 5,742,080 6,152,000 5,917,474 5,845,124 889,848 1,305,274 1,899,449 1,236,079 1,080,864 1,051,897
Culture and recreation……………………………………………….. 2,861,570 2,649,053 2,236,031 2,312,808 2,037,840 1,492,926 1,842,298 5,083,442 4,875,189 4,128,951
Pension and fringe benefits………………………………………………………… 13,330,835 13,303,787 12,143,139 12,698,735 11,662,320 11,479,906 14,831,570 15,661,255 16,212,172 18,393,297
State and county charges………………………………………… 447,745 462,130 449,457 458,657 461,358 531,772 546,250 566,814 574,275 591,536
Capital outlay and other………………………………………………………………. 6,044,041 7,508,083 9,254,440 16,296,496 8,912,763 5,047,157 7,481,872 5,202,852 8,504,352 26,106,919
Debt service:
Principal……………………………………………………………… 4,547,154 4,728,096 6,338,863 7,778,503 7,558,823 6,657,855 5,496,332 5,405,944 5,478,306 5,511,741
Interest……………………………………………………………………. 2,262,233 2,343,057 2,952,425 2,501,019 2,401,588 2,171,097 2,260,152 2,186,325 1,746,458 1,550,529
Total Expenditures……………………………………………………….. 72,815,658 76,932,648 79,620,521 89,741,959 76,741,727 72,319,131 75,872,635 79,508,402 85,326,226 105,290,679
Excess of revenues over (under) expenditures………………………………………………… 337,386 2,070,675 600,735 (8,528,036) 6,703,117 12,087,650 8,733,100 7,352,152 6,258,142 (7,549,078)
Other Financing Sources (Uses):
Issuances from bonds and notes………………...………………………………………… 6,680,000 19,551,578 5,990,490 13,070,000 - 3,200,000 478,449 - 993,000 1,188,709
Issuances from refunding bonds………………...…………………………………………- - - - 1,329,900 8,685,000 - 758,200 3,935,000
Premiums from debt issuances………………………….- - - 279,138 - 212,513 808,509 - 51,600 123,130
Payments to refunded bond escrow agent………………………….- - - - - (1,519,037) (9,505,125) - (790,820) (3,995,000)
Sale of capital assets………………………………………………… - - - 1,143,075 73,530 - 865,210 3,888,758 2,474,833 1,439,916
Transfers in……………………………………………………………………………… 1,946,827 4,852,464 1,345,000 4,008,898 1,554,704 1,008,975 919,323 2,101,972 1,631,000 15,779,728
Transfers out…………………………………………………………………………… (5,074,987) (19,664,442) (8,217,946) (7,543,208) (9,971,149) (12,409,606) (9,864,323) (9,044,592) (9,512,295) (24,439,112)
Total other financing sources (uses)………………………………………………………………….. 3,551,840 4,739,600 (882,456) 10,957,903 (8,342,915) (8,177,255) (7,612,957) (3,053,862) (4,394,482) (5,967,629)
Net change in fund balance…………………………………………………………………. 3,889,226$ 6,810,275$ (281,721)$ 2,429,867$ (1,639,798)$ 3,910,395$ 1,120,143$ 4,298,290$ 1,863,660$ (13,516,707)$
Debt service as a percentage of noncapital expenditures………………………………………………. 10.20% 10.19% 13.20%14.00%14.68%13.12%11.34%10.22%9.40%8.92%
LAST TEN FISCAL YEARS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 126 of 137 Comprehensive Annual Financial Report
Ratio of
Total Total State Assessed to
Fiscal Residential Open Space Commercial Industrial Personal Commercial Town Equalized Equalized Residential Commercial Average
Year Value Value Value Value Property Value Value Value Value Tax Rate Tax Rate Tax Rate
2007 18,833,057,056 28,148,400 1,276,678,766 65,568,478 180,259,113 1,522,506,357 20,383,711,813 17,562,057,600 116.07%2.49 4.46 2.55
2008 19,075,765,006 28,148,400 1,248,404,516 71,831,978 199,459,060 1,519,695,554 20,623,608,960 22,498,040,300 91.67%2.67 4.77 2.73
2009 19,297,012,011 28,148,400 1,212,268,373 73,994,478 207,661,750 1,493,924,601 20,819,085,012 22,498,040,300 92.54%2.76 4.92 2.81
2010 18,609,952,032 15,300,200 1,171,917,524 61,207,044 204,631,215 1,437,755,783 20,063,008,015 21,914,393,400 91.55%3.01 5.35 3.06
2011 15,812,302,942 12,152,700 1,118,103,719 56,154,439 209,716,105 1,383,974,263 17,208,429,905 21,914,393,400 78.53%3.58 6.41 3.66
2012 15,502,597,155 21,974,500 1,056,502,692 53,625,153 209,470,691 1,319,598,536 16,844,170,191 18,041,019,200 93.37%3.62 6.47 3.70
2013 15,890,745,965 22,428,100 932,271,034 50,373,351 205,311,229 1,187,955,614 17,101,129,679 18,041,019,200 94.79%3.67 6.51 3.72
2014 15,734,218,626 11,460,900 939,061,724 48,571,000 206,415,205 1,194,047,929 16,939,727,455 17,816,255,100 95.08%3.76 6.68 3.82
2015 16,946,921,756 11,664,300 944,004,094 49,617,300 229,217,719 1,222,839,113 18,181,425,169 17,816,255,100 102.05%3.61 6.38 3.65
2016 19,250,070,530 11,465,100 998,753,099 51,031,421 232,693,446 1,282,477,966 20,544,013,596 17,816,255,100 *115.31%3.36 5.93 3.38
Source: Official Statements, State Division of Local Services
* The Commonwealth has not updated equalized value for fiscal 2016
Note: All property in the Commonwealth of Massachusetts is assessed at 100% of full and fair cash value. The State estimates this "equalized valuation" for all municipalities every two years.
Chapter 59, Section 21C of the Massachusetts General Laws, known as "Proposition 2 1/2", imposes 2 separate limits on the annual tax levy of the Town. The primary limitation is
that the tax levy cannot exceed 2 1/2% of the full and fair cash value. The secondary limitation is that the tax levy cannot exceed the maximum levy limit for the preceding fiscal year
as determined by the State Commissioner of Revenue by more than 2 1/2%, subject to an exception for property added to the tax rolls and for certain valuation increases. This
secondary limit may be exceeded in any fiscal year by majority approval of the voters, however, it cannot exceed the primary limitation.
Assessed Value Tax Rates
LAST TEN FISCAL YEARS
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY BY CLASSIFICATION AND TAX RATES
Town of Nantucket, Massachusetts Page 127 of 137 Comprehensive Annual Financial Report
PRINCIPAL TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
Percentage of Percentage of
Total Taxable Total Taxable
Nature of Assessed Assessed Assessed Assessed
Taxpayer Business Valuation Rank Value Valuation Rank Value
NIR Retail LLC Resort 98,678,600$ 1 0.48%137,791,767$ 1 0.68%
Penant Realty LLC Residential 49,674,500 2 0.24%
Nantucket Yacht Club Recreation 44,359,700 3 0.22%50,027,954 4 0.25%
Richmond Great Point Development LLC Private 43,727,400 4 0.21%
Nantucket Island Resort LLC Resort 37,539,400 5 0.18%73,682,608 2 0.36%
Great Harbor Yacht Club Inc.Private 36,662,800 6 0.18%
Sankaty Head Golf Club, Inc.Recreation 26,597,800 7 0.13%18,535,278 8 0.09%
White Elephant Hotel LLC Resort 22,066,300 8 0.11%
Nantucket Electric Company Private Utility 20,890,800 9 0.10%47,352,320 5 0.23%
US REIF Marine Nantucket FEE LLC Retail 20,387,200 10 0.10%
Walter Glowacki Private 70,579,200 3 0.35%
NIR Retail III LLC Resort 27,206,500 6 0.13%
Nantucket Golf Course Recreation 21,232,582 7 0.10%
Wauwinet Inn, LLC Resort 16,403,775 9 0.08%
Westmoor Club Resort 11,589,400 10 0.06%
Totals 400,584,500$ 1.95%474,401,384$ 2.33%
Source: Official Statements
2016 2007
Town of Nantucket, Massachusetts Page 128 of 137 Comprehensive Annual Financial Report
Percent of
First Year Delinquent Total Total Tax
Fiscal Total Current Percent of Tax Tax Collections to
Year Tax Levy Tax Collections Collected Collections Collections Net Tax Levy
2007 51,919,271$ 49,648,871$ 95.63%1,946,257$ 51,595,128$ 99.38%
2008 56,220,005 54,162,568 96.34%1,896,329 56,058,897 99.71%
2009 58,510,142 54,375,139 92.93%2,642,562 57,017,701 97.45%
2010 61,333,595 57,209,185 93.28%2,495,326 59,704,511 97.34%
2011 63,040,150 59,526,709 94.43%2,437,628 61,964,337 98.29%
2012 62,274,744 59,645,473 95.78%1,791,512 61,436,985 98.65%
2013 63,618,273 60,028,036 94.36%2,623,244 62,651,280 98.48%
2014 64,647,039 60,979,366 94.33%2,992,031 63,971,397 98.95%
2015 66,329,953 63,876,955 96.30%1,492,310 65,369,265 98.55%
2016 69,636,373 65,916,305 94.66%- 65,916,305 94.66%
Source: Accounting Records and Official Statements
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collections
Town of Nantucket, Massachusetts Page 129 of 137 Comprehensive Annual Financial Report
RATIOS OF OUTSTANDING DEBT AND GENERAL OBLIGATION DEBT
General
Obligation Percentage Percentage
Fiscal U. S. Census Personal Assessed Bonds and Per of Personal of Assessed
Year Population Income Value Other Notes Capita Income Value
2007 10,531 492,650,711 20,383,711,813 56,849,688 5,398 11.54%0.28%
2008 11,215 549,422,850 20,623,608,960 71,673,170 6,391 13.05%0.35%
2009 11,322 579,686,400 20,819,085,012 71,324,797 6,300 12.30%0.34%
2010 10,172 543,286,520 20,063,008,015 76,773,603 7,548 14.13%0.38%
2011 10,130 541,043,300 17,208,429,905 69,057,471 6,817 12.76%0.40%
2012 10,298 550,016,180 16,844,170,191 65,559,307 6,366 11.92%0.39%
2013 10,298 550,016,180 17,101,129,679 60,299,542 5,855 10.96%0.35%
2014 10,298 550,016,180 16,939,727,455 54,871,053 5,328 9.98%0.32%
2015 10,298 550,016,180 18,181,425,169 50,350,913 4,889 9.15%0.28%
2016 10,298 550,016,180 20,544,013,596 46,068,679 4,474 8.38%0.22%
General Percentage Percentage Total Percentage Percentage
Fiscal Obligation Per of Personal of Assessed Debt Per of Personal of Assessed
Year Bonds Capita Income Value Outstanding Capita Income Value
2007 54,655,811 5,190 11.09%0.27%111,505,499 10,588 22.6%0.55%
2008 74,856,609 6,675 13.62%0.36%146,529,779 13,066 26.7%0.71%
2009 79,373,441 7,011 13.69%0.38%150,698,238 13,310 26.0%0.72%
2010 80,467,247 7,911 14.81%0.40%157,240,850 15,458 28.9%0.78%
2011 80,983,395 7,994 14.97%0.47%150,040,866 14,812 27.7%0.87%
2012 87,513,595 8,498 15.91%0.52%153,072,902 14,864 27.8%0.91%
2013 83,901,285 8,147 15.25%0.49%144,200,827 14,003 26.2%0.84%
2014 82,305,570 7,992 14.96%0.49%137,176,623 13,321 24.9%0.81%
2015 83,147,112 8,074 15.12%0.46%133,498,025 12,963 24.3%0.73%
2016 78,182,138 7,592 14.21%0.38%124,250,817 12,066 22.6%0.60%
Note: Debt totals include unamrtized premium
Source: U. S. Census, State Division of Local Services
LAST TEN FISCAL YEARS
Governmental Activities Debt
Business Type Activities Debt Total Primary Government
Town of Nantucket, Massachusetts Page 130 of 137 Comprehensive Annual Financial Report
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Equalized Valuation………………………………….. 20,623,608,960$ 20,819,085,012$ 20,063,008,015$ 17,208,429,905$ 16,844,170,191$ 17,101,129,679$ 16,939,727,455$ 18,181,425,169$ 20,544,013,596$ 17,816,255,100$
Debt Limit…………………………..…………………. 1,031,180,448 1,040,954,251 1,003,150,401 860,421,495 842,208,510 855,056,484 846,986,373 909,071,258 1,027,200,680 890,812,755
Outstanding general obligation bonds………………. 111,505,499 146,529,779 150,698,238 157,240,850 150,040,866 153,072,902 144,200,827 137,176,623 133,498,025 124,250,817
Authorized and unissued debt…………………………. 114,109,539 95,034,114 81,093,282 68,310,085 72,315,737 48,369,825 51,318,862 24,976,578 87,611,526 157,802,928
Debt not applicable to debt limit…………………………. (25,140,246) (30,913,035) (43,482,004) (51,917,004) (42,042,147) (47,042,147) (43,393,647) (42,671,460) (38,186,867) (48,673,610)
Legal debt margin………………………………………….. 780,425,164$ 768,477,323$ 727,876,877$ 582,953,556$ 577,809,760$ 606,571,610$ 608,073,037$ 704,246,597$ 767,904,262$ 560,085,400$
Total debt applicable to the limit
as a percentage of debt limit………………………………….. 19.44%20.24%18.77%20.18%21.41%18.06%17.96%13.14%17.81%26.20%
Source: State Division of Local Services, Accounting Records
COMPUTATION OF LEGAL DEBT MARGIN
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 131 of 137 Comprehensive Annual Financial Report
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Debt repaid with property taxes:
Nantucket Regional Transit Authority………………………. -$ 100%-$
Nantucket County……………………………………………- 100%-
Subtotal, overlapping debt………………………………………………………………………….. -
Town direct debt……………………………………………………………. 46,068,679
Total direct and overlapping debt…………………………………………… 46,068,679$
*Outstanding debt as of June 30, 2016.
Source: Official Statements, Accounting Records
The estimated percentage applicable is based 100% to the Town.
AS OF JUNE 30, 2016
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Town of Nantucket, Massachusetts Page 132 of 137 Comprehensive Annual Financial Report
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Per
Capita
Fiscal Population Personal Personal Median School Unemployment
Year Estimates Income Income Age Enrollment Rate
2007 10,531 492,650,711 46,781 36.7 1,220 2.30%
2008 11,215 549,422,850 48,990 36.7 1,288 6.30%
2009 11,322 579,686,400 51,200 36.7 1,294 7.40%
2010 10,172 543,286,520 53,410 39.4 1,255 7.80%
2011 10,130 541,043,300 53,410 39.4 1,230 6.80%
2012 10,298 550,016,180 53,410 39.4 1,282 6.00%
2013 10,298 550,016,180 53,410 39.4 1,322 5.90%
2014 10,298 550,016,180 53,410 39.4 1,378 6.20%
2015 10,298 550,016,180 53,410 39.4 1,535 3.60%
2016 10,298 550,016,180 53,410 39.4 1,595 3.60%
Source: U. S. Census, Division of Local Services, Massachusetts
Department of Elementary and Secondary Education
Median age is based on most recent census data
Town of Nantucket, Massachusetts Page 133 of 137 Comprehensive Annual Financial Report
Nature Percentage Percentage
of Employees of Total Town Employees of Total Town
Employer Business Year-Round Rank Employment Year-Round Rank Employment
Town of Nantucket Government 670 1 10.21%710 1 10.83%
Nantucket Cottage Hospital Medical 180 2 2.74%106 2 1.62%
Nantucket Island Resorts Hospitality 125 3 1.90%105 3 1.60%
Marine Home Center Retail 90 4 1.37%105 4 1.60%
Stop & Shop Retail 90 5 1.37%65 6 0.99%
Blue Hills Bank Finance 60 6 0.91%0.00%
Myles Reis Trucking Haulage 30 7 0.46%
Steamship Authority Transportation 28 8 0.43%32 7 0.49%
Don Allen Auto Dealership 25 9 0.38%
Bartlett Oceanview Farm Farm/Retail 25 10 0.38%
Harbor Fuel Petroleum Products 30 8 0.46%
Pacific National Bank/Fleet Finance 28 9 0.43%
The Brotherhood Restaurant 27 10 0.41%
Nantucket Bank Finance 70 5 1.07%
Source: Official Statements
2016 2007
CURRENT YEAR AND NINE YEARS AGO
PRINCIPAL EMPLOYERS (INCLUDING TOWN)
Town of Nantucket, Massachusetts Page 134 of 137 Comprehensive Annual Financial Report
Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General government……………………………………………………………. 54 53 58 60 60 63 60 66 68 73
Public safety…………………………………………….. 79 79 78 77 77 81 81 81 81 83
Education…………………………………………………… 305 306 293 295 292 299 299 301 301 310
Public works…………………………………………………………….. 24 26 27 24 26 28 27 30 30 32
Health and human services………………………………………………………….. 5 4 4 4 4 4 5 5 5 5
Culture and recreation………………………………………………… 25 22 18 16 17 9 10 10 10 10
Sub-total governmental activities ……………………………………………………….. 492 490 478 476 476 484 482 493 495 513
Nantucket Memorial Airport………………………… 47 47 41 45 47 44 44 41 41 44
Siasconset Water………………………………………………………………… 1 1 1 1 1 - - - - -
Wannacomet Water………………………….. 11 11 11 11 11 11 11 11 11 11
Sewer………………………………………………………………… 10 10 12 12 12 10 10 10 10 10
Our Island Home………………………………………………………………… 78 80 78 72 73 71 69 69 70 70
Sub-total business-type activities ……………………………………………………….. 147 149 143 141 144 136 134 131 132 135
Total Town employees…………….…………………...…….. 639 639 621 617 620 620 616 624 627 648
Source: Town personnel records
FULL-TIME EQUIVALENT TOWN EMPLOYEES BY FUNCTION
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 135 of 137 Comprehensive Annual Financial Report
Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Government:
Town Clerk
Registered voters…………………………………….. 7,998 8,164 8,164 7,907 7,907 8,394 8,394 8,546 8,618 8,618
Public Safety:
Police
Criminal offenses
Arrests……………………………….. 902 551 1,309 1,169 1,062 1,160 1,531 992 584 568
Reported crimes…………………….. 590 587 621 716 499 479 490 501 356 345
Motor vehicle responses………………………… 3,076 4,857 3,103 2,910 2,600 2,994 3,469 3,411 3,432 3,493
Other responses………………………… 16,446 19,783 18,962 17,659 15,913 18,553 20,648 17,899 21,576 23,678
Total criminal offenses…………. 21,014 25,778 23,995 22,454 20,074 23,186 26,138 22,803 25,948 28,084
Fire
Incidents
Fires…………………………….. 86 63 56 40 66 41 52 67 82 86
Non-fire incidents……………………………………………………….. 3,974 3,896 4,072 3,783 3,637 3,640 3,721 4,915 3,893 3,942
Total fire calls………………… 4,060 3,959 4,128 3,823 3,703 3,681 3,773 4,982 3,975 4,028
Inspectional Services:
Number of building permits…………………………………. 1,439 1,280 972 1,156 1,145 1,406 1,639 1,797 2,010 2,137
Education:
Number of students…………………………………. 1,220 1,288 1,294 1,255 1,230 1,282 1,322 1,378 1,535 1,595
Public Works:
Landfill
Solid waste tonnage………………………….. 38,000 33,359 40,056 24,687 34,933 34,000 33,710 37,400 38,000 39,000
Health and Human Services:
Board of Health
Inspections
Food establishments…………………. 231 230 228 210 205 212 230 247 262 265
Other………………………….. 348 328 355 329 302 341 358 367 380 388
Total inspections………………….. 579 558 583 539 507 553 588 614 642 653
Our Island Home - Nursing Home
Number of beds………………… 45 45 45 45 45 45 45 45 45 45
Culture and Recreation:
Beaches
Beach Stickers 3,965 3,889 3,512 3,838 3,628 3,845 3,795 3,973 4,102 4,259
Transportation:
Nantucket Memorial Airport
Number of enplanements……… 278,133 257,755 203,786 201,638 179,410 175,420 178,303 174,129 164,290 138,752
Number of tower operations…… 150,200 144,073 127,482 127,575 120,806 125,960 126,898 119,976 109,225 106,186
Gallons of fuel sold……………. N/A N/A N/A N/A 1,127,270 1,217,635 1,164,958 1,194,978 1,207,361 1,277,228
N/A - Information not available
Source: Various Town Departments, State websites and annual Town Report.
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 136 of 137 Comprehensive Annual Financial Report
Function 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Government:
Number of buildings……………………………….. 7 7 7 7 7 7 7 7 7 7
Public Safety:
Police
Number of stations……………………………. 1 1 1 1 1 2 2 2 2 2
Fire
Number of stations……………………………. 2 2 2 2 2 2 2 2 2 2
Education:
Number of elementary schools……………………………………. 1 1 1 1 1 1 1 1 1 1
Number of middle schools……………………………………. 1 1 1 1 1 1 1 1 1 1
Number of high schools……………………………………….. 1 1 1 1 1 1 1 1 1 1
Public Works:
Number of cemeteries……………………..8 8 8 8 8 8 8 8 8 8
Human Services
Number of nursing homes…………………….. 1 1 1 1 1 1 1 1 1 1
Culture and Recreation:
Number of beaches……………………………. 17 17 17 17 17 17 17 17 17 17
Transportation:
Number of airports…………………………. 1 1 1 1 1 1 1 1 1 1
Source: Various Town Departments and State websites.
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 137 of 137 Comprehensive Annual Financial Report