HomeMy WebLinkAboutComprehensive Annual Financial Report (CAFR) 2019 (PDF)TOWN OF NANTUCKET
Comprehensive Annual Financial Report for
the Year Ended June 30, 2019
On the cover: A picturesque scene of the sun rising behind the cottages. It is scenes such as this that
capture the beauty of the Island at its finest.
Photo credit: William Perrelli
Above: The Nantucket Boat Basin at sunrise.
Photo Credit: Elizabeth Kelly, Nantucket
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2019
C. Elizabeth Gibson, Town Manager
Prepared by the Finance Department
Brian E. Turbitt, Director of Municipal Finance
This page intentionally left blank.
INTRODUCTORY SECTION
Above: “The Fisherman” – A common scene on the Island is that of a fisherman at work or play as
captured by the photo above credited to Kate Olson of Nantucket.
This page intentionally left blank.
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1-14
Certificate of Achievement for Excellence in Financial Reporting.................................................. 15
Organizational Chart ........................................................................................................................ 16
Principal Town Officials .................................................................................................................. 17
FINANCIAL SECTION
Independent Auditor’s Report ....................................................................................................... 21-23
Management’s Discussion and Analysis ....................................................................................... 25-37
Basic Financial Statements:
Statement of Net Position .......................................................................................................... 40
Statement of Activities ............................................................................................................... 41
Balance Sheet – Governmental Funds ....................................................................................... 42
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position .............................................................................................. 43
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................................................... 44
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ....................................... 45
Statement of Net Position – Proprietary Funds .......................................................................... 46
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds.............. 47
Statement of Cash Flows – Proprietary Funds ........................................................................... 48
Statement of Fiduciary Net Position .......................................................................................... 49
Statement of Changes in Fiduciary Net Position ....................................................................... 50
Notes to Basic Financial Statements ...................................................................................... 51-101
Required Supplementary Information:
Schedule of Town’s Proportionate Share of Net Pension Liability .......................................... 104
Schedule of Town’s Contributions to Pension Plan .................................................................. 104
Schedule of County’s Proportionate Share of Net Pension Liability ........................................ 105
Schedule of County’s Contributions to Pension Plan ............................................................... 105
Schedule of Land Bank’s Proportionate Share of Net Pension Liability.................................. 106
Schedule of Land Bank’s Contributions to Pension Plan ......................................................... 106
Schedule of Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teacher’s Retirement System ..................................................................... 107
Schedule of Change in Net OPEB Liability and Related Ratios .............................................. 108
Schedule of Contributions to OPEB Plan ................................................................................. 109
Schedule of Investment Returns – OPEB Plan ......................................................................... 109
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund ................................................................................ 110-115
Notes to Required Supplementary Information .................................................................... 116-117
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
TABLE OF CONTENTS
Page(s)
Combining Statements:
Nonmajor Governmental Funds ........................................................................................... 120-121
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 122-124
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ............................................................ 126-128
Internal Service Funds .............................................................................................................. 130
Combining Statement of Net Position – Internal Service Funds ........................................ 131
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ................................................................................................. 132
Combining Statement of Cash Flows – Internal Service Funds ......................................... 133
Fiduciary Funds ........................................................................................................................ 134
Statement of Changes in Assets and Liabilities – Agency Fund ........................................ 135
STATISTICAL SECTION
Narrative .......................................................................................................................................... 139
Net Position by Component – Last Ten Fiscal Years ...................................................................... 140
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 141-142
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 143
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 144
Assessed Value and Estimated Actual Value of Taxable Property by Classification
and Tax Rates – Last Ten Fiscal Years ..................................................................................... 145
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 146
Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................ 147
Ratios of Outstanding Debt and General Obligation Debt – Last Ten Fiscal Years ....................... 148
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 149
Direct and Overlapping Governmental Activities Debt .................................................................. 150
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 151
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 152
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 153
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 154
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 155
Dawn E. Hill Holdgate, Chair
Rita Higgins, Vice Chair
Jason Bridges
Matthew Fee
Kristie L. Ferrantella
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 10, 2019
Honorable Select Board and Citizens of the Town of Nantucket, Massachusetts:
We are pleased to present the Town of Nantucket’s sixth annual Comprehensive 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, 2019. 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
accepted 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
interested 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
agencies as well as its citizens and taxpayers.
Since the report consists of management’s representations concerning the finances of the Town,
management 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 conformity 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 rather than absolute assurance that the financial statements will be free from material
misstatement.
Town of Nantucket, Massachusetts Page 1 of 157 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
assurance 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 as well as 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, 2019 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
administration of federal awards. These reports are available in the Town’s separately issued Single Audit
Reports Pursuant to the Uniform Guidance.
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 the adjacent 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 157 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
century 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. Nantucket is often credited 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 Newton. In addition, according to
the US Department of Commerce, Bureau of Economic Analysis, out of 3,144 county and county
equivalents it is the 8th wealthiest county in the United States and the wealthiest in the Commonwealth of
Massachusetts as of calendar year 2018.
Nantucket is a tourist destination and summer colony. The population of the island increases from just
over 10,000 (per the 2010 Federal census) 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) and the Hy-line Cruises (Hy-line) from the port of
Hyannis. In calendar year 2018, the Steamship Authority transported about 620,039 passengers, 65,116
passenger vehicles and 52,922 commercial vehicles to Nantucket Island.
Hy-line had about 678,390 embarkations in calendar year 2018; up 1.6% from 2017 and is very popular
with professional daily commuters and contractors due to the speed of the transport, large capacity and
frequency of travel.
Town of Nantucket, Massachusetts Page 3 of 157 Comprehensive Annual Financial Report
The Hy-line launched a newer larger vessel during
calendar 2017 which led to an increase of over 18% in
embarkations since calendar 2016.
There are also two seasonal ferry services to the
island. The Freedom Cruise Line has been
transporting passengers from Harwich, Massachusetts
to Nantucket since 1994. The SeaStreak began
operating two ferry routes in recent years, one
originating from New Bedford, Massachusetts and the
other, from New York City. Together, these seasonal
services transported over 60,000 passengers during the
summer of 2018.
The Nantucket Regional Transit Authority ("NRTA") provides seasonal fixed route shuttle service and
year round advance 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 schedule 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 2018 with
approximately 128,000 enplanements it was the second busiest airport in the Commonwealth trailing only
Logan International Airport in Boston.
Town of Nantucket, Massachusetts Page 4 of 157 Comprehensive Annual Financial Report
The Town provides a full range of other traditional municipal services including police and fire
protection, education, maintenance of streets, a sanitary landfill with materials recovery and composting
facilities, water and sewer services, parks and recreational 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. During fiscal year 2018 the Town
administered four schools in Nantucket:
1.Nantucket High School (grades 9 – 12)
2.Cyrus Pierce Middle School (grades 6 – 8)
3.Nantucket Intermediate School (grades 3 – 5)
4.Nantucket Elementary School (grades PK – 2)
Construction on the Intermediate School was completed in May 2017 and the school opened in September
2017. The Intermediate School is part of a planned $50 million improvement to the entire District which
also includes the addition of classrooms to certain of the existing schools. It was constructed to enroll
approximately 400 students and alleviate the space challenges of a growing student population.
The Nantucket Public Schools are set up campus style and are all within walking distance of each other.
The new facility is located adjacent to the existing elementary school which has been converted to pre-k
through 2. The Intermediate School is in the shaded area on the right hand side of the sketch below along
with the entrance to the new facility:
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
Committee, and the School Business Manager acts as the Chief Financial Officer.
School enrollment for fiscal year 2018 was 1,627 (up 35% since 2007) and funding for schools is
provided via taxation and governmental revenues based on a minimum net school spending formula
established 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
Town of Nantucket, Massachusetts Page 5 of 157 Comprehensive Annual Financial Report
individual 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 select board, town manager and open town meeting form of government.
The five elected Select Board members make policy decisions and the Town Manager is responsible for
carrying out and enforcing the policies of the Select Board 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
Services, Supplies, Other Charges & Expenses) allowing the department heads to allocate resources
within the department. Transfers between categories need approval from Town Meeting unless
specifically exempted by state statute.
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
increases 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 geographical 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.
Table 1 summarizes the Town’s building activity and new growth over the prior 5 calendar years:
The Town’s strong growth as summarized in Table 1 has allowed the Town’s taxpayers the benefit of
reduced property taxes through an unused levy capacity. In fact, as a result of the strong unused levy
capacity, the taxpayers benefitted from an average real estate tax savings of approximately 3.1% over the
past 6 years.
Calendar # of Residential Non-Residential Total
Year Permits Value Value Value
2018 1,931 279,741,490$ 35,400,799$ 315,142,289$
2017 1,997 231,373,761 106,242,699 337,616,460
2016 780 188,525,945 80,796,833 269,322,778
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
Total 7,982 1,254,724,591$ 283,394,161$ 1,538,118,752$
Table 1
Town of Nantucket, Massachusetts Page 6 of 157 Comprehensive Annual Financial Report
This is summarized in Table 2 below:
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 Culture and Tourism department, which is supported through revenues from local option
room occupancy excise collections.
The table and graph illustrate revenues from this source in each of the last five fiscal years.
In addition, active construction over the past several years has had a dramatic impact on these local
revenues as workers 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, the major ones being
summarized in the table to the right.
This has in effect lengthened the tourist
season and had a positive impact on the
local economy.
Fiscal Levy Unused
Year Limit Levy Levy Capacity Tax savings
2019 82,666,738 80,158,835 2,507,903 3.03%
2018 79,723,200 78,168,480 1,554,720 1.95%
2017 75,399,121 74,553,652 845,469 1.12%
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%
447,383,282$ 433,494,333$ 13,888,949$ 3.10%
Table 2
Fiscal Year Amount
2019 3,807,930$
2018 3,622,242
2017 3,498,400
2016 3,428,604
2015 3,041,496
Room Occupancy
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
Nantucket Triathlon July
Race Week August
Boston Pops August
Nantucket Half-Marathon October
Cranberry Festival October
Arts Festival October
Holiday Stroll Weekend December
Town of Nantucket, Massachusetts Page 7 of 157 Comprehensive Annual Financial Report
Nantucket Triathlon Boston Pops
Independence Day Fireworks Cranberry Festival
Nantucket Half-Marathon Daffodil Festival
Town of Nantucket, Massachusetts Page 8 of 157 Comprehensive Annual Financial Report
Economic Development
Harbor Place - The Town’s downtown center remains a vibrant hub for small retail establishments,
hospitality/resorts and restaurants. The Nantucket Island Chamber of Commerce, founded in 1937 and
incorporated in 1954, has a diverse membership comprised of more than 650 businesses. The Town,
including the
Nantucket
Planning and
Economic
Development
Commission and
Visitor Services
department, has an
on-going
relationship with
the Chamber
involving the
Town's economic
issues.
In 2008 at the
annual town
meeting, the town
approved a study
of an area called
Harbor Place;
previously referred
to as the Wilkes
Square
Redevelopment
site, which
includes National Grid, Winthrop Management LLP, and Nantucket Island Resorts properties. To that
end, the Select Board established a Downtown Revitalization Committee 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.
•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
Town of Nantucket, Massachusetts Page 9 of 157 Comprehensive Annual Financial Report
is currently owned by multiple land owners. The site’s close proximity to downtown and its
waterfront 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 Fuel Corporation to relocate the fuel tank farm to an area
outside 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 concept is the
transportation center which includes a bus station, a parking facility 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 downtown area and thus boosting the future,
local economy even further. As part of the preliminary plan, the Town would ultimately own the
transportation facility property.
Nantucket Cottage Hospital (NCH) – One of the largest recent construction projects was completed and
open on February 20, 2019. NCH is the only medical facility on the island providing primary, urgent,
emergency and surgical care, as well as outpatient services and appointments with medical and surgical
specialists.
In recent years, the community had
outgrown the 104-year-old facility
as studies have shown it was 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 was
in danger of losing its accreditation
with the Massachusetts Department
of Public Health.
In order to address this dire need, NCH underwent a capital fund-raising campaign and was able to raise
the $120 million need for construction completely from private donations, debt-free and without the use
of taxpayer dollars. This project was expanded to complete the hospital campus with new housing for
medical staff. MGH committed to donating $20 million and 65 other benefactors each donated at least
$250,000 each.
The new building is roughly 106,000 square feet and has been designed to maximize privacy, safety, and
efficiency 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 157 Comprehensive Annual Financial Report
The next phase in completing the hospital campus includes plans to build flexible-design housing units
that will be capable of serving a range of hospital employees. The building will be located across the
street from the hospital on land NCH already owns, enabling employees to simply walk to work. The
building will feature the latest in apartment amenities and a flexible design by using the model of
extended stay hotels. Below is an artist rendition.
Old South Road Properties Richmond Great Point Development LLC (RGPD) has recently begun
construction of a planned mixed market rate/affordable rate three-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 development of a thoughtful mixed-use plan; and thus
providing a solution to the critical lack of diverse housing stock on the island.
One of the largest housing developments in Island history, the project moved a major step forward in
March 2017 when both Phase two and Phase three were approved by the Planning Board. The vote was
unanimous with no public comment.
The three phases of the development are summarized as follows:
Phase one (Meadows I) consists of rental apartments that include 28 market rate apartment units. These
are studio, one and two bedroom options. See design and rendition below:
Phase two (Meadows II) sits 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 three (Sandpiper Place) consists of 94 single family homes for 2, 3 and 4 bedroom homes which
are both mixed and affordable rate housing.
Town of Nantucket, Massachusetts Page 11 of 157 Comprehensive Annual Financial Report
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:
Town of Nantucket, Massachusetts Page 12 of 157 Comprehensive Annual Financial Report
Long-term Financial Planning
The Town prepares rolling five-year operating budget projections. The Town believes this will (1)
provide 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
financing 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
appropriations. The above projections do not include those of the solid waste or Our Island Home
activities. Those are included in the GAAP presentation in the financials as governmental activities but
are treated as enterprise funds by the Town.
Capital Improvements
The Town continues to invest aggressively in capital improvements. In the past several years the Town
has invested almost $300 million in improving facilities and adding much needed infrastructure, and
renovations to the Island.
The following were key capital initiatives:
•Improvement to Nantucket Memorial Airport, much of which was funded from Federal grants,
over $70 million.
•A new Public Safety (Police) building approximately $15.5 million.
•Renovation of the Town Pier (financed in part with storm assistance funds from FEMA)
•Improvements to municipal water infrastructure: almost $25 million.
•Improvements to Siasconset water infrastructure: almost $9 million.
•Improvements to municipal sewer infrastructure: almost $100 million; (over $21 million during
fiscal 2018), some of this funded through the State subsidized, low interest loan program.
•Improvements to Schools: over $40 million.
•Improvements to roads, sidewalks, bike paths: almost $15 million of which almost half was
funded through the Mass DOT Chapter 90 Road Funding Program.
•In process construction on a new Fire Station: $16 million as of fiscal 2019.
Fiscal Real and Personal Motor Vehicle Rooms and
Year Property Taxes Excise Meals Excise Permits State Aid Miscellaneous Total
2020 85,796,025 2,500,000 3,425,000 1,450,000 3,809,322 2,847,540 99,827,887
2021 88,913,598 2,568,000 3,500,000 1,440,400 3,809,322 2,502,263 102,733,583
2022 93,718,918 2,597,350 3,400,000 1,476,500 3,809,322 2,526,760 107,528,850
2023 98,505,772 2,610,205 3,375,000 1,506,100 3,809,322 2,551,502 112,357,901
2024 103,505,772 2,620,205 3,350,000 1,490,000 3,809,322 2,550,000 117,325,299
Town of Nantucket, Massachusetts Page 13 of 157 Comprehensive Annual Financial Report
In addition, the Town has prepared a capital improvement plan that includes proposed significant
additions over the next five to ten years. These are still in the discovery and approval process and there
are no guarantees they will ultimately be approved.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a
Certificate of Achievement for Excellence in Financial Reporting. This is a very prestigious award and
in order 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 accounting 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, 2018. This was
the fifth consecutive year that the Town has received this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive 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
Nantucket to provide enhanced financial information and accountability to its citizens, elected and
appointed officials, 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 14 of 157 Comprehensive Annual Financial Report
For its Comprehensive Annual
June 30, 2018
Executive Director/CEO
Financial Report
for the Fiscal Year Ended
Text38:Massachusetts
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Nantucket
Town of Nantucket, Massachusetts Page 15 of 157 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 16 of 157 Comprehensive Annual Financial Report
PRINCIPAL TOWN OFFICIALS
As of June 30, 2019
Elected Officials
Select Board Dawn E. Hill Holdgate, Chair
Rita Higgins, Vice Chair
Jason Bridges
Matthew Fee
Kristie L. Ferrantella
Town Moderator Sarah Alger, Esquire
Town Clerk Nancy L. Holmes
School Committee Jennifer Iller, Chairman
Dr. Timothy Lepore, Vice Chairman
Zona Tanna- Butler, Secretary
Steven Zortevik
Pauline Proch
Appointed Financial Committees
Audit Committee Matt Fee
Dawn E. Hill Holdgate
David D. Worth
Finance Committee David D. Worth, Chairman
Stephen Maury, Vice Chairman
Christopher Glowacki
Peter A. McEachern
Jill Vieth
Joseph T. Grause, Jr.
Peter N. Schaeffer
Joanna Roche
Denice Kronau
Stephen Welch
Principal Executive Officers
Town Manager C. Elizabeth Gibson
Superintendent of Schools W. Michael Cozort
Director of Finance Brian E. Turbitt
Town of Nantucket, Massachusetts Page 17 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 18 of 157 Comprehensive Annual Financial Report
FINANCIAL SECTION
After a day in the sun, the Loines Observatory provides families with a popular venue to gaze at the moon
and stars in the night sky. Stargazing nights at the Loines Observatory are held year-round on various
dates and at different times. They provide children with the ability to learn about the myths behind the
creatures in the celestial zoo, while visiting the public and researching telescopes.
Photo Credit: Maria Mitchell Association, Nantucket
Town of Nantucket, Massachusetts Page 19 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 20 of 157 Comprehensive Annual Financial Report
INDEPENDENT AUDITOR’S REPORT
Honorable Select Board
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,
2019 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 21 of 157 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, 2019, 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 Town’s governmental activities, business-type activities and each Enterprise Fund. 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, and the schedules listed under the required supplementary information section in
the accompanying 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 22 of 157 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 10, 2019
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 10, 2019
Town of Nantucket, Massachusetts Page 23 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 24 of 157 Comprehensive Annual Financial Report
Management’s Discussion and Analysis
Town of Nantucket, Massachusetts Page 25 of 157 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, 2019.
Financial Highlights
▪The assets and deferred outflows of financial resources of the Town exceeded its liabilities and
deferred inflows of financial resources at the close of the most recent fiscal year by over $268.5
million (total net position).
▪The government’s total net position increased by over $1.5 million (less than 1% of total net position)
over the prior year. This consisted of a decrease in governmental activities’ net position by almost
$1.1 million (less than 1% of total governmental activities’ net position) and an increase in business-
type activities’ net position of over $2.6 million (about 2.0% 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 almost $22.8 million (22.1%
of General Fund expenditures). Total fund balance in the General Fund was just under $42.9 million
(41.7% of General Fund expenditures). The Town reported a fund balance of almost $10.7 million in
its Town Capital Projects Fund and reported total fund balances of almost $17.4 million in the
Combined Nonmajor Governmental Funds. Detail of these balances and changes is provided under
the Governmental Funds section of the Management Discussion and Analysis.
▪The Town’s total debt increased by almost $33.6 million during the fiscal year. Detail of this net
increase is provided under the capital and debt administration section of the Management Discussion
and Analysis.
▪The Town’s bond rating increased from Aa1 positive to Aaa during fiscal 2019. The rating was
provided by Moody’s Investor Services.
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:
Town of Nantucket, Massachusetts Page 26 of 157 Comprehensive Annual Financial Report
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.)
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;
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 Supplementary Information –
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 27 of 157 Comprehensive Annual Financial Report
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; and
4.Nantucket Memorial Airport.
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
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
Town of Nantucket, Massachusetts Page 28 of 157 Comprehensive Annual Financial Report
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 29 of 157 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 financial resources exceeded liabilities
and deferred inflows of financial resources by over $268.5 million at the close of the most recent fiscal
year.
The condensed Statement of Net Position is as follows:
By far, the largest portion (almost $355.8 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, almost $18.1 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 almost $105.3 million. This consisted of Governmental activities unrestricted
net position which is in a deficit position of almost $112.0 million offset by unrestricted net position in
the Business-type funds of almost $6.7 million. The recognition of a Net Other Postemployment Benefits
Liability and Net Pension Liability has reduced the Town’s net position significantly in both its
Governmental and Business-Type activities. This has led to the significant deficit in the Governmental
activities unrestricted net position.
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30, June 30, June 30, June 30,
2019 2018 2019 2018 2019 2018
Assets
Currrent and other assets 99,369,573$ 89,728,469$ 31,979,762$ 46,274,282$ 131,349,335$ 136,002,751$
Capital assets, net 326,131,846 312,540,117 234,876,123 225,187,440 561,007,969 537,727,557
Total assets 425,501,419 402,268,586 266,855,885 271,461,722 692,357,304 673,730,308
Deferred outflows of resources 21,244,998 11,537,348 3,409,292 2,319,885 24,654,290 13,857,233
Liabilities
Long-term liabilities 289,571,226 241,913,097 111,837,936 88,572,243 401,409,162 330,485,340
Other liabilities 18,068,381 21,104,666 24,390,682 50,140,658 42,459,063 71,245,324
Total liabilities 307,639,607 263,017,763 136,228,618 138,712,901 443,868,225 401,730,664
Deferred inflows of resources 3,303,319 13,522,436 1,296,560 1,554,582 4,599,879 15,077,018
Net Position
Net investment in capital assets 229,696,540 222,919,137 126,071,273 121,715,832 355,767,813 344,634,969
Restricted 18,070,833 24,663,139 - - 18,070,833 24,663,139
Unrestricted (111,963,882) (110,316,541) 6,668,726 11,798,292 (105,295,156) (98,518,249)
Total Net Position 135,803,491$ 137,265,735$ 132,739,999$ 133,514,124$ 268,543,490$ 270,779,859$
Town of Nantucket, Massachusetts Page 30 of 157 Comprehensive Annual Financial Report
Condensed changes in net position data is presented as follows:
Governmental Activities – The governmental activities experienced a net decrease in net position by
almost $1.1 million as compared to a net increase of almost $16.8 million in the prior year. This was due
mainly to a one-time transaction in the prior year in which land valued at $13.7 million was transferred to
the Town by the United States Coast Guard.
Governmental Activities Business-Type Activities Total
June 30,June 30,June 30,June 30,June 30,June 30,
2019 2018 2019 2018 2019 2018
Revenues
Program revenues:
Charges for services 16,484,533$ 16,302,750$ 30,055,443$ 28,655,420$ 46,539,976$ 44,958,170$
Operating grants and contributions 12,857,189 11,348,091 133,619 123,647 12,990,808 11,471,738
Capital grants and contributions 2,571,891 14,502,773 2,111,745 3,186,264 4,683,636 17,689,037
General revenues:
Property taxes 79,997,125 77,739,238 - - 79,997,125 77,739,238
Hotel and meals excise 5,005,958 4,743,787 - - 5,005,958 4,743,787
Intergovernmental 246,669 193,824 - - 246,669 193,824
Other 8,545,132 6,415,944 161,926 95,529 8,707,058 6,511,473
Total Revenues 125,708,497 131,246,407 32,462,733 32,060,860 158,171,230 163,307,267
Expenses
General government 15,765,219 13,660,766 - - 15,765,219 13,660,766
Public safety 22,887,964 19,236,351 - - 22,887,964 19,236,351
Education 52,485,059 47,854,776 - - 52,485,059 47,854,776
Public works 20,574,322 19,697,228 - - 20,574,322 19,697,228
Health and human services 8,194,864 7,817,065 - - 8,194,864 7,817,065
Culture and recreation 3,867,395 4,034,143 - - 3,867,395 4,034,143
Debt service 3,004,920 2,486,810 - - 3,004,920 2,486,810
Siasconset water - - 692,972 617,825 692,972 617,825
Wannacomet water - - 4,856,369 4,428,396 4,856,369 4,428,396
Sewer - - 7,463,953 7,912,679 7,463,953 7,912,679
Nantucket Memorial Airport - - 16,842,531 15,379,560 16,842,531 15,379,560
Total Expenses 126,779,743 114,787,139 29,855,825 28,338,460 156,635,568 143,125,599
Change in net position before transfers (1,071,246) 16,459,268 2,606,908 3,722,400 1,535,662 20,181,668
Transfers - 285,264 - (285,264) - -
Change in net position (1,071,246) 16,744,532 2,606,908 3,437,136 1,535,662 20,181,668
Net position, beginning of year 137,265,735 166,781,880 133,514,124 131,405,629 270,779,859 298,187,509
Restatement for net OPEB liability (3,739,844) (46,260,677) (32,187) (1,328,641) (3,772,031) (47,589,318)
Restatement for interfund payable 3,348,846 - (3,348,846) - - -
Net position, beginning of year,
as restated 136,874,737 120,521,203 130,133,091 130,076,988 267,007,828 250,598,191
Net position, end of year 135,803,491$ 137,265,735$ 132,739,999$ 133,514,124$ 268,543,490$ 270,779,859$
Town of Nantucket, Massachusetts Page 31 of 157 Comprehensive Annual Financial Report
Revenues
Total revenue decreases were over $5.5 million. The decrease in capital grants and contributions
previously discussed was
offset by modest increases
in other revenue categories.
Specifically, property taxes,
which made up 63.6% of
total revenues increased by
almost $2.3 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 a
Massachusetts 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 unused levy capacity despite the
increase. Operating grants increased $1.5 million. This was primarily due to increases in pension expense
related to the Town’s special funding situation with the State and an update in the related actuarial
valuation. The Town’s Other Revenue category consists of local receipts such as motor vehicle excise,
departmental receipts and other revenues not specifically classified. Included in this amount was a gain
on the sale of Town owned property of over $1.5 million.
Expenses
Total expenses increased by almost $12.0 million. The 3 biggest drivers regarding this increase were 1)
OPEB and pension expenses were almost $6.0 million greater than the prior year; 2) the Landfill
provision was increased
by $2.0 million and 3)
Education expenses
increased as a result of
the operation of a brand-
new facility for an entire
year and its special
funding arrangement with
the State related to
teacher’s retirement. The
Town’s largest expenses
were Education, Public
Safety, Public Works and
General Government (see
graph to the left). All
expenditure categories
increased primarily as a result of the reasons provided at the opening of this discussion.
Town of Nantucket, Massachusetts Page 32 of 157 Comprehensive Annual Financial Report
Fiscal Year 2019 Expenses and Program Revenues – governmental activities are graphically presented as
follows:
Net position of the business-type activities increased by almost $2.5 million from the prior year
balances. Change in net position for each business-type fund is broken down individually as follows:
In its Business-type activities, the Town’s user charges are not designed to cover depreciation which is a
component of the “change in net position” but does budget for principal payback of debt which is not a
component of the “change in net position”. The difference in these two items impacts the “change in net
position” on a GAAP basis.
With respect to Siasconset and Wannacomet principal payback of debt is larger than depreciation,
therefore the positive results are expected; also, seasonal weather patterns contributed to increased usage
and positive operations of these two
operations to explain the additional
difference. In the instance of Sewer,
depreciation and principal payback
approximate one another however,
numerous small capital items
incurred but not capitalized were
classified as maintenance and
therefore caused the net loss above.
The Airport experienced its 6th
straight year of positive operations
as travel to the Island continues to
grow at a very rapid pace.
Siasconset Water District 386,099$
Wannacomet Water District 1,518,198
Sewer (389,093)
Nantucket Memorial Airport 980,206
Total Change 2,495,410$
Town of Nantucket, Massachusetts Page 33 of 157 Comprehensive Annual Financial Report
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 about $70.9 million, an increase of almost $8.3 million over the prior
year.
Unassigned fund balance in the general fund was almost $22.8 million or 22.1% of general fund
expenditures. This is available for spending at the government’s discretion. Assigned fund balance of
over $7.5 million; committed fund balance of over $9.2 million, restricted fund balance of approximately
$0.2 million and nonspendable fund balances of $3.1 million bring total general fund balance to almost
$42.9 million or 41.7% of general fund expenditures. Total general fund balance was consistent with the
prior year.
The timing of capital costs verses bond proceeds was primarily responsible for an increase in capital
projects of almost $4.8 million. The entire fund balance was restricted.
The Combined Nonmajor Funds ended the year with a balance of almost $17.4 million which was higher
than the prior year due to excess transfers from the general fund, bond issuances allocated to special
revenue funds and a proceed from sale of Town property of over $1.6 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 almost $5.5 million.
This represents an increase of almost $1.2
million over the prior year. Reinsurance
proceeds of approximately $1.7 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 over $6.4 million.
The Private Purpose Trust Funds make up almost $3.3 million; These assets are used strictly for purposes
outside of the public domain such as scholarships and public assistance. Contributions to these funds
were outpaced by expenses that led to almost a $0.3 million decrease year over year.
Town of Nantucket, Massachusetts Page 34 of 157 Comprehensive Annual Financial Report
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 Other Postemployment Benefits.
This fund increased by over $0.7 million to over $3.1 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 actuarially determined contribution.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were for the most part not
significant (less than 1%). The total budget ended the year with a favorable variance of over $7.8 million.
For the seventh consecutive year revenues exceeded forecast (over $3.4 million). This was due to (1) the
Town continuing its philosophy of conservatively forecasting revenue, and (2) the results of the
continuation in the expanding economy felt mostly in motor vehicle excise and room occupancy.
Favorable expenditure variances contributed over $4.4 million 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.
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, 2019 amounts to approximately $561.0 million (net of accumulated depreciation)
an increase from the previous year’s balance of approximately $23.3 million.
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. The two largest capital assets added to this year’s roll’s, were construction on the new Fire Station
recorded in Governmental Activities and Sewer construction.
Additional information on the Town’s capital assets can be found in Note II subsection D.
Additional information on the Town’s short-term and long-term debt can be found in Note II under
subsections F and G.
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 almost $1.2
billion, which is significantly in excess of the Town’s outstanding general obligation debt classified as
inside the debt limit.
The Town is assigned an Aaa credit rating from Moodys’ Investor Services and an AA+ credit rating
from Standard and Poors’.
At the end of the current fiscal year, the Town had total debt outstanding of almost $189.7 million. About
$97.8 million is related to the Town’s Governmental activities and over $91.9 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.
Town of Nantucket, Massachusetts Page 35 of 157 Comprehensive Annual Financial Report
In addition, the Town issues bond anticipation notes prior to permanent financing to fund the initial stages
of capital projects. At June 30, 2019 the bond anticipation notes payable balances approximated $29.0
million.
Included in these outstanding debt amounts is unamortized bond premiums of over $3.5 million and over
$1.9 million in the governmental and business-type activities respectively.
The Town’s total debt increased by almost $33.6 million during the fiscal year due to following:
Regular scheduled maturities:
Governmental Activities (4,694,769)$
Business-Type Activities (5,396,274)
Issuance of debt:
Governmental Activities 16,804,000
Business-Type Activities 26,265,740
Originating premiums
Governmental Activities 1,018,631
Business-Type Activities 209,000
Amortization of premiums
Governmental Activities (299,909)
Business-Type Activities (355,603)
33,550,816$
Town of Nantucket, Massachusetts Page 36 of 157 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 out more over the next several years.
▪The Town’s real estate tax base is made up predominantly of residential taxes, which comprise nearly
88.2% 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 9.8% 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 3.36
per $1,000. The Town has typically approximated or exceeded $1 billion in property sales each year
since 2014.
▪All of the above items were considered when the Town developed its budget for fiscal year 2020.
The budget was adopted in April 2019 and the Town is expected to set its tax rate in December 2019.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Office of the Director of
Finance, 37 Washington Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket County may be obtained from the Office of the
Director of Finance 37 Washington Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket Islands Land Bank may be obtained by
contacting Nantucket Islands Land Bank, 22 Broad Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket Memorial Airport may be obtained from the
Office of the Director of Finance 37 Washington Street, Nantucket, Massachusetts 02554
Town of Nantucket, Massachusetts Page 37 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 38 of 157 Comprehensive Annual Financial Report
Basic Financial Statements
Town of Nantucket, Massachusetts Page 39 of 157 Comprehensive Annual Financial Report
Nantucket
Governmental Business-Type Nantucket Islands
Activities Activities Total County Land Bank
Assets
Cash and cash equivalents 72,066,463$ 25,345,895$ 97,412,358$ 5,482,565$ 20,125,703$
Investments 12,719,328 690,443 13,409,771 - 4,920,966
Investments, designated - - - - 3,145,867
Receivables, net:
Property taxes 1,867,416 - 1,867,416 - -
User fees 975,021 1,941,908 2,916,929 - -
Departmental and other 2,096,967 450,633 2,547,600 - 193,722
Tax liens 2,898,606 - 2,898,606 - -
Intergovernmental 2,897,027 5,616,193 8,513,220 202,366 -
Grants - - - - 922,117
Inventory - 574,325 574,325 - 303,620
Prepaid items 1,206,380 - 1,206,380 - 64,258
Other assets 2,730 - 2,730 - -
Internal balances 2,639,635 (2,639,635) - - -
Restricted cash and cash equivalents - - - - 2,332,294
Restricted investments - - - - 2,810,366
Cash surrender value of life insurance - - - - 1,055,182
Land conservation rights - - - - 30,000
Capital assets not being depreciated 253,697,989 64,376,097 318,074,086 3,283,842 371,152,479
Capital assets, net of depreciation 72,433,857 170,500,026 242,933,883 - 22,839,338
Total Assets 425,501,419 266,855,885 692,357,304 8,968,773 429,895,912
Deferred Outflows of Resources
Related to losses on refunding 152,680 635,707 788,387 - 158,980
Related to net other postemployment benefits liability 9,446,222 473,931 9,920,153 21,580 -
Related to net pension liability 11,646,096 2,299,654 13,945,750 182,839 583,034
Total Deferred Outflows of Resources 21,244,998 3,409,292 24,654,290 204,419 742,014
Liabilities
Warrants and accounts payable 3,778,457 1,125,572 4,904,029 280 1,243,133
Accrued payroll and withholdings 3,490,750 286,053 3,776,803 63,822 -
Accrued expenses - - - - 280,878
Retainage payable 745,565 - 745,565 - -
Health claims incurred but not reported 1,129,769 - 1,129,769 - -
Accrued interest 1,113,220 694,445 1,807,665 - -
Other liabilities 685,620 393,512 1,079,132 - -
Unearned revenue - - - - -
Unearned grant revenue - - - - 1,383,175
Bond anticipation notes payable 7,125,000 21,891,100 29,016,100 - -
Noncurrent liabilities:
Due within one year 7,409,782 7,331,407 14,741,189 - 7,997,635
Due in more than one year 282,161,444 104,506,529 386,667,973 1,118,875 19,656,748
Total Liabilities 307,639,607 136,228,618 443,868,225 1,182,977 30,561,569
Deferred Inflows of Resources
Related to net pension liability 1,345,624 265,708 1,611,332 43,170 137,660
Related to net other postemployment benefits liability 1,957,695 1,030,852 2,988,547 17,370 76,580
3,303,319 1,296,560 4,599,879 60,540 214,240
Net Position
Net investment in capital assets 229,696,540 126,071,273 355,767,813 3,283,842 369,951,811
Restricted:
Nonexpendable permanent funds 44,965 - 44,965 - -
Federal and State grants 1,608,291 - 1,608,291 - -
Community preservation 5,021,659 - 5,021,659 - -
Capital outlay 2,038,261 - 2,038,261 - -
Revolving funds 4,650,424 - 4,650,424 - -
Gift funds 1,201,987 - 1,201,987 - -
Other purposes 3,505,246 - 3,505,246 4,363,887 5,142,660
Unrestricted (111,963,882) 6,668,726 (105,295,156) 281,946 24,767,646
Total Net Position 135,803,491$ 132,739,999$ 268,543,490$ 7,929,675$ 399,862,117$
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2019
See accompanying notes to basic financial statements.
Primary Government Component Units
Town of Nantucket, Massachusetts Page 40 of 157 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 15,765,219$ 1,542,176$ 910,871$ 1,047,344$ (12,264,828)$ (12,264,828)$
Public safety 22,887,964 4,206,210 763,100 - (17,918,654) (17,918,654)
Education 52,485,059 1,728,718 10,747,076 - (40,009,265) (40,009,265)
Public works 20,574,322 3,458,221 34,859 1,073,989 (16,007,253) (16,007,253)
Health and human services 8,194,864 5,145,194 125,689 - (2,923,981) (2,923,981)
Culture and recreation 3,867,395 404,014 25,594 450,558 (2,987,229) (2,987,229)
Interest expense 3,004,920 - 250,000 - (2,754,920) (2,754,920)
Total governmental activities 126,779,743 16,484,533 12,857,189 2,571,891 (94,866,130) (94,866,130)
Business-type activities:
Siasconset water 692,972 1,081,527 - - 388,555$ 388,555
Wannacomet water 4,856,369 6,348,009 - - 1,491,640 1,491,640
Sewer 7,463,953 6,572,952 - 525,358 (365,643) (365,643)
Nantucket Memorial Airport 16,842,531 16,052,955 133,619 1,586,387 930,430 930,430
Total business-type activities 29,855,825 30,055,443 133,619 2,111,745 2,444,982 2,444,982
Total Primary Government 156,635,568$ 46,539,976$ 12,990,808$ 4,683,636$ (94,866,130) 2,444,982 (92,421,148)
Component units:
Nantucket County 714,048$ 1,049,037$ 228,534$ -$ 563,523 -
Nantucket Islands Land Bank 9,034,119 26,316,705 109,056 41,634,879 - 59,026,521
Total Component units 9,748,167$ 27,365,742$ 337,590$ 41,634,879$ 563,523 59,026,521
General Revenues:
Property taxes 79,997,125 - 79,997,125 - -
Motor vehicle and boat excise 3,212,027 - 3,212,027 - -
Hotel and meals excise 5,005,958 - 5,005,958 - -
Community Preservation Fund surcharges 2,254,544 - 2,254,544 - -
Grants and contributions not restricted to
specific programs 246,669 - 246,669 - -
Penalties and interest on taxes 605,321 - 605,321 - -
Unrestricted investment income 937,170 161,926 1,099,096 20,851 435,837
Gain on sale of capital assets 1,536,070 - 1,536,070 - -
Miscellaneous - - - - 570,549
Transfers (net)- - - - -
Total general revenues and transfers 93,794,884 161,926 93,956,810 20,851 1,006,386
Change in Net Position (1,071,246) 2,606,908 1,535,662 584,374 60,032,907
Net Position:
Beginning of year, as restated (see Note IV)136,874,737 130,133,091 267,007,828 7,345,301 339,829,210
End of year 135,803,491$ 132,739,999$ 268,543,490$ 7,929,675$ 399,862,117$
See accompanying notes to basic financial statements.
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2019
Component Units
Town of Nantucket, Massachusetts Page 41 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2019
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Assets
Cash and cash equivalents 30,693,469$ 17,698,891$ 18,783,792$ 67,176,152$
Investments 12,263,222 - 197,815 12,461,037
Receivables, net of allowance for uncollectibles:
Property taxes 1,674,599 - 192,817 1,867,416
User charges 975,021 - -975,021
Departmental and other 1,130,810 - 523,365 1,654,175
Tax liens 2,898,606 - -2,898,606
Intergovernmental 232,857 - 2,664,170 2,897,027
Other assets 2,730 - -2,730
Due from other funds 3,764,379 - -3,764,379
Total Assets 53,635,693 17,698,891 22,361,959 93,696,543
Total Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources 53,635,693$ 17,698,891$ 22,361,959$ 93,696,543$
Liabilities:
Warrants and accounts payable 1,282,126$ 2,174,422$ 218,573$ 3,675,121$
Accrued payroll and withholdings 3,360,230 - 130,520 3,490,750
Retainage payable - 745,565 - 745,565
Other liabilities 394,741 - 290,879 685,620
Due to other funds - - 651,154 651,154
Bond anticipation notes payable - 4,125,000 3,000,000 7,125,000
Total Liabilities 5,037,097 7,044,987 4,291,126 16,373,210
Deferred Inflows of Resources
Unavailable revenue - property taxes 4,180,075 - 192,817 4,372,892
Unavailable revenue - user charges 975,021 - -975,021
Unavailable revenue - other 549,564 - 523,365 1,072,929
Total Deferred Inflows of Resources 5,704,660 - 716,182 6,420,842
Fund Balances:
Nonspendable 3,113,226 - 44,965 3,158,191
Restricted 231,468 13,223,679 18,190,956 31,646,103
Committed 9,245,767 - - 9,245,767
Assigned 7,539,217 - - 7,539,217
Unassigned 22,764,258 (2,569,775) (881,270) 19,313,213
Total Fund Balances 42,893,936 10,653,904 17,354,651 70,902,491
Total Liabilities , Deferred Inflows of Resources
and Fund Balances 53,635,693$ 17,698,891$ 22,361,959$ 93,696,543$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 42 of 157 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, 2019
Total Governmental Fund Balances 70,902,491$
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds.326,131,846
Other long-term assets are not available to pay for current period expenditures and,
therefore, are reported as unavailable revenue in the funds 6,420,842
Deferred outflows and inflows of resources to be recognized in the future
are not available resources and, therefore, are not reported in the funds:
Deferred outflows related to charges on refunding 152,680
Deferred outflows related to net pension liability 11,646,096
Deferred outflows related to net other postemployment benefits liability 9,446,222
Deferred inflows related to net pension liability (1,345,624)
Deferred inflows related to net other postemployment benefits liability (1,957,695)
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.4,976,114
In the Statement of Activities, interest is accrued on outstanding long-term debt
whereas in the governmental funds, interest is not reported until due.(1,113,220)
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 (94,252,657)
Unamortized premiums on bonds (3,547,550)
Landfill closure liability (14,000,000)
Compensated absences (2,861,915)
Net other postemployment benefits liability (108,942,353)
Net pension liability (65,851,786)
Net Position of Governmental Activities 135,803,491$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 43 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2019
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Revenues:
Property taxes 79,748,325$ -$ -$ 79,748,325$
Intergovernmental 9,449,941 - 4,132,241 13,582,182
Motor vehicle and other excises 3,374,420 - 35,923 3,410,343
User charges 8,093,931 - -8,093,931
Hotel and meals taxes 5,005,958 - -5,005,958
Community preservation surcharges - - 2,240,059 2,240,059
Licenses and permits 1,688,035 - - 1,688,035
Penalties and interest on taxes 605,321 - - 605,321
Fines and forfeitures 408,220 - - 408,220
Investment income 879,764 - 43,695 923,459
Departmental and other revenue 2,077,238 - 5,001,776 7,079,014
Contributions and donations 1,100 400,000 645,123 1,046,223
Total Revenues 111,332,253 400,000 12,098,817 123,831,070
Expenditures:
Current:
General government 10,328,025 449,946 1,008,125 11,786,096
Public safety 11,098,635 13,200,111 2,126,874 26,425,620
Education 28,805,253 1,592,896 3,763,145 34,161,294
Public works 12,978,993 5,231,485 671,381 18,881,859
Health and human services 6,414,862 580,473 743,807 7,739,142
Culture and recreation 1,125,307 62,187 2,207,372 3,394,866
Pension and fringe benefits 24,274,664 - - 24,274,664
State and county assessments 734,866 - - 734,866
Debt service:
Principal 4,259,867 - 434,902 4,694,769
Interest 2,917,430 - 18,929 2,936,359
Total Expenditures 102,937,902 21,117,098 10,974,535 135,029,535
Excess (Deficiency) of Revenues
Over (Under) Expenditures 8,394,351 (20,717,098) 1,124,282 (11,198,465)
Other Financing Sources (Uses):
Issuance of bonds and notes - 16,339,500 464,500 16,804,000
Premiums from bonds and notes 95,742 900,650 22,239 1,018,631
Sale of capital assets - - 1,635,924 1,635,924
Transfers in - 8,246,552 700,000 8,946,552
Transfers out (8,924,136) - (22,416) (8,946,552)
Total Other Financing Sources (Uses)(8,828,394) 25,486,702 2,800,247 19,458,555
Net Change in Fund Balances (434,043) 4,769,604 3,924,529 8,260,090
Fund Balances - Beginning, as restated (See Note IV)43,327,979 5,884,300 13,430,122 62,642,401
Fund Balances - Ending 42,893,936$ 10,653,904$ 17,354,651$ 70,902,491$
See acompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 44 of 157 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
YEAR ENDED JUNE 30, 2019
Net Change in Fund Balances - Total Governmental Fund Balances 8,260,090$
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 19,565,622
Depreciation expense (5,973,893)
Net effect of reporting capital assets 13,591,729
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.1,073,153
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 (16,804,000)
Premiums from general obligation bonds and notes (1,018,631)
Repayments of debt 4,694,769
Net effect of reporting long-term debt (13,127,862)
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.327,646
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:
Accrued interest expense (351,506)
Amortization of premiums on bonds and notes payable 299,909
Amortization of deferred charges on refunding'(16,964)
Landfill closure (2,000,000)
Compensated absences (620,793)
Pension benefits (3,358,612)
Other postemployment benefits (5,148,036)
Net effect of reporting long-term liabilities (11,196,002)
Change in Net Position of Governmental Activities (1,071,246)$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 45 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2019
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Assets:
Current assets:
Cash and cash equivalents 1,855,046$ 6,215,333$ 7,300,896$ 9,974,620$ 25,345,895$ 4,890,311$
Investments - - - 690,443 690,443 258,291
Receivables (net):
User charges 113,975 584,864 773,740 469,329 1,941,908 -
Privilege fees - - 450,633 - 450,633 -
Intergovernmental - - 4,307,257 522,061 4,829,318 -
Inventory - 224,955 - 349,370 574,325 -
Reinsured claims receivable - -- -- 442,792
Prepaid items - -- -- 1,206,380
Total current assets 1,969,021 7,025,152 12,832,526 12,005,823 33,832,522 6,797,774
Noncurrent assets:
Receivables (net):
Intergovernmental - - 786,875 - 786,875 -
Nondepreciable capital assets 2,720,781 5,816,260 51,289,098 4,549,958 64,376,097 -
Capital assets (net of depreciation)9,017,189 36,915,481 64,157,826 60,409,530 170,500,026 -
Total noncurrent assets 11,737,970 42,731,741 116,233,799 64,959,488 235,662,998 -
Total Assets 13,706,991 49,756,893 129,066,325 76,965,311 269,495,520 6,797,774
Deferred Outflows of Resources
Related to losses on refunding 274,304 281,540 79,863 - 635,707 -
Related to net other postemployment benefits liability 25,033 100,917 18,791 329,190 473,931 -
Related to net pension liability 27,892 575,959 351,433 1,344,370 2,299,654 -
Total Deferred Outflows of Resources 327,229 958,416 450,087 1,673,560 3,409,292 -
Total Assets and Deferred Outflows of Resources 14,034,220$ 50,715,309$ 129,516,412$ 78,638,871$ 272,904,812$ 6,797,774$
Liabilities:
Current liabilities:
Warrants and accounts payable 24,811$ 84,291$ 355,540$ 660,930$ 1,125,572$ 103,336$
Accrued payroll and withholdings 1,635 56,342 65,109 162,967 286,053 -
Health claims incurred but not reported - - - - - 1,129,769
Accrued interest 20,476 178,850 412,969 82,150 694,445 -
Due to other funds - - - 235,621 235,621 -
Other liabilities - - - 393,512 393,512 -
Bond anticipation notes payable 250,000 500,000 18,877,731 2,263,369 21,891,100 -
Compensated absences - 137,053 50,044 294,634 481,731 -
Workers' compensation claims - -- - - 114,965
Bonds and notes payable 471,602 1,932,688 3,746,009 699,377 6,849,676 -
Total current liabilities 768,524 2,889,224 23,507,402 4,792,560 31,957,710 1,348,070
Noncurrent liabilities:
Due to other funds - - - 2,877,604 2,877,604 -
Compensated absences - 137,054 50,044 294,634 481,732 -
Net other postemployment benefit liability 594,273 1,309,662 157,868 3,869,632 5,931,435 -
Net pension liability 157,710 3,256,710 1,987,145 7,601,619 13,003,184 -
Bonds and notes payable 4,706,588 18,221,124 54,375,818 7,786,648 85,090,178 -
Total noncurrent liabilities 5,458,571 22,924,550 56,570,875 22,430,137 107,384,133 -
Total Liabilities 6,227,095 25,813,774 80,078,277 27,222,697 139,341,843 1,348,070
Deferred Inflows of Resources
Related to net pension liability 3,222 66,548 40,605 155,333 265,708 -
Related to net other postemployment benefits liability 15,075 155,089 158,359 702,329 1,030,852 -
18,297 221,637 198,964 857,662 1,296,560 -
Total Liabilities and Deferred Inflows of Resources 6,245,392 26,035,411 80,277,241 28,080,359 140,638,403 1,348,070
Net Position:
Net investment in capital assets 6,584,084 22,359,469 42,628,657 54,499,063 126,071,273 -
Unrestricted 1,204,744 2,320,429 6,610,514 (3,940,551) 6,195,136 5,449,704
Total Net Position 7,788,828$ 24,679,898$ 49,239,171$ 50,558,512$ 132,266,409 5,449,704$
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 473,590
Net position of business-type activities (page 40)132,739,999$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 46 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEAR ENDED JUNE 30, 2019
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Operating Revenues:
Charges for services 1,081,527$ 6,025,718$ 6,395,307$ 16,052,955$ 29,555,507$ -$
Employee contributions - - - - - 2,242,738
Employer contributions - - - - - 14,234,357
Other - 322,291 177,645 - 499,936 1,706,947
Total Operating Revenues 1,081,527 6,348,009 6,572,952 16,052,955 30,055,443 18,184,042
Operating Expenses:
Operating costs 249,533 3,296,017 3,896,029 13,724,052 21,165,631 -
Depreciation 304,412 1,036,983 2,374,841 2,798,544 6,514,780 -
Employee benefits - - - - - 17,013,102
Total Operating Expenses 553,945 4,333,000 6,270,870 16,522,596 27,680,411 17,013,102
Total Operating Income (loss)527,582 2,015,009 302,082 (469,641) 2,375,032 1,170,940
Nonoperating Revenues (Expenses):
Intergovernmental - - - 133,619 133,619 -
Investment income 813 47,978 - 113,135 161,926 13,711
Interest expense (142,296) (544,789) (1,216,533) (383,294) (2,286,912) -
Total Nonoperating Revenues (Expenses)(141,483) (496,811) (1,216,533) (136,540) (1,991,367) 13,711
Income (Loss) Before Capital Contributions
and Transfers 386,099 1,518,198 (914,451) (606,181) 383,665 1,184,651
Capital Contributions
Intergovernmental - - 165,954 1,586,387 1,752,341 -
Other - - 359,404 - 359,404 -
- - 525,358 1,586,387 2,111,745 -
Change in Net Position 386,099 1,518,198 (389,093) 980,206 2,495,410 1,184,651
Net Position at Beginning of Year,
as restated (See note IV)7,402,729 23,161,700 49,628,264 49,578,306 4,265,053
Net Position at End of Year 7,788,828$ 24,679,898$ 49,239,171$ 50,558,512$ 5,449,704$
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 111,498
Changes in net position of business-type activities (page 41)2,606,908$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 47 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Cash Flows from Operating Activities:
Receipts from users 1,076,653$ 6,033,791$ 6,370,002$ 16,006,517$ 29,486,963$ -$
Employee contributions - - - - - 2,242,738
Employer contributions - - - - - 14,234,357
Receipts from other operating revenues - 322,291 177,645 - 499,936 1,457,567
Payments to employees - (964,596) (1,102,937) (4,942,874) (7,010,407) -
Payments to vendors (286,247) (2,222,357) (2,541,811) (8,033,162) (13,083,577) -
Payments for interfund services used - - - - - (16,779,516)
Net Cash Provided by (Used in) Operating
Activities 790,406 3,169,129 2,902,899 3,030,481 9,892,915 1,155,146
Cash Flows from Noncapital Financing Activities:
Operating grants - - - 133,619 133,619 -
Net Cash Provided by (Used in) Noncapital
Financing Activities - - - 133,619 133,619 -
Cash Flows from Capital and Related Financing Activities:
Proceeds from the issuance of bonds and notes - 3,146,000 11,269,051 - 14,415,051 -
Sewer privilege fees - -586,531 - 586,531 -
Proceeds from capital grants - -- 1,469,624 1,469,624 -
Acquisition and construction of capital assets (35,794) (161,440) (14,595,534) (1,410,695) (16,203,463) -
Premiums on general obligation bonds - 154,000 55,000 - 209,000 -
Proceeds from bond anticipation notes 250,000 500,000 13,853,144 2,263,369 16,866,513 -
Repayments of bond anticipation notes (250,000) (3,812,000) (11,771,169) (2,175,447) (18,008,616) -
Principal payments on bonds and notes (395,000) (1,738,000) (2,273,536) (800,000) (5,206,536) -
Interest payments on bonds and notes (193,617) (661,039) (1,088,252) (402,791) (2,345,699) -
Net Cash Used in Capital and Related
Financing Activities (624,411) (2,572,479) (3,964,765) (1,055,940) (8,217,595) -
Cash Flows from Investing Activities:
Investment income 813 47,978 - 113,135 161,926 13,711
Investment of operating cash - - - (16,834) (16,834) (13,721)
Net Cash Provided by (Used in) Investing Activities 813 47,978 - 96,301 145,092 (10)
Net Change in Cash and Cash Equivalents 166,808 644,628 (1,061,866) 2,204,461 1,954,031 1,155,136
Cash and Cash Equivalents:
Beginning of the year 1,688,238 5,570,705 8,362,762 7,770,159 23,391,864 3,735,175
End of the year 1,855,046$ 6,215,333$ 7,300,896$ 9,974,620$ 25,345,895$ 4,890,311$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating Income (Loss)527,582$ 2,015,009$ 302,082$ (469,641)$ 2,375,032$ 1,170,940$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 304,412 1,036,983 2,374,841 2,798,544 6,514,780 -
Changes in assets, deferred outflows,
liabilities and deferred inflows
Receivables (4,874) 8,073 (25,305) (46,438) (68,544) (249,380)
Prepaid items - - - - - 197,147
Inventory - (140,522) - 11,596 (128,926) -
Accounts payable and accrued expenses (33,693) (42,572) 119,405 328,092 371,232 25,727
Accrued benefits payable (3,021) 292,158 131,876 674,614 1,095,627 10,712
Due to other funds - - - (235,621) (235,621) -
Other liabilities - - - (30,665) (30,665) -
Net Cash Provided by (Used in) Operating
Activities 790,406$ 3,169,129$ 2,902,899$ 3,030,481$ 9,892,915$ 1,155,146$
Noncash investing capital and financing activities:
Intergovernmental subsidies of debt service -$ -$ 352,695$ -$ 352,695$ -$
Amortization of bond premiums 75,171 207,621 51,584 21,227 355,603 -
Amortization of deferred charge on refunding 27,431 31,282 8,874 - 67,587 -
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 48 of 157 Comprehensive Annual Financial Report
TOWN OF NANUCKET, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2019
Other
Postemployment Private
Benefits Purpose Agency
Trust Fund Trust Funds Funds
Assets:
Cash and cash equivalents 881,144$ 888,965$ 1,495,636$
Investments:
Equities 1,379,770 - -
Government securities 869,398 2,405,749 -
Receivables, net of allowance for uncollectibles - - 101,191
Total Assets 3,130,312 3,294,714 1,596,827
Liabilities:
Warrants payable - 10,349 87,553
Accrued payroll and withholdings - - 40,400
Agency liabilities - - 528,669
Planning board deposits - - 940,205
Total Liabilities - 10,349 1,596,827
Net Position:
Restricted for other postemployment benefits 3,130,312 - -
Restricted for private purposes - 3,284,365 -
Total Net Position 3,130,312$ 3,284,365$ -$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 49 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2019
Other
Postemployment Private
Benefits Purpose
Trust Fund Trust Funds
Additions
Contributions:
Employer 3,738,016$-$
Other - 630,834
Total contributions 3,738,016 630,834
Investment income:
Interest and dividends 239,754 129,319
Net investment earnings 239,754 129,319
Total Additions (net)3,977,770 760,153
Deductions
Life and health insurance premiums paid for retirees 3,238,016 -
Education - scholarships - 140,675
Health and human services - public assistance - 908,917
Total Deductions 3,238,016 1,049,592
CHANGE IN NET POSITION 739,754 (289,439)
NET POSITION AT BEGINNING OF YEAR 2,390,558 3,573,804
NET POSITION AT END OF YEAR 3,130,312$3,284,365$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 50 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2019
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 Select Board 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, 2019 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, 2019 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 51 of 157 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 52 of 157 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 53 of 157 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.
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.
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.
Town of Nantucket, Massachusetts Page 54 of 157 Comprehensive Annual Financial Report
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, donated
works of art and similar items, and capital assets received in a service concession arrangement are
reported at acquisition value rather than fair value. 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.
Town of Nantucket, Massachusetts Page 55 of 157 Comprehensive Annual Financial Report
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.
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
Town of Nantucket, Massachusetts Page 56 of 157 Comprehensive Annual Financial Report
(expense/expenditure) until then. The Town has three types of items that are reported on the
government-wide statement of net position. These relate to deferred losses on refunding
transactions, outflows from changes in the net pension liability and outflows from changes in net other postemployment benefits liability . The deferred losses on refunding will be recognized in
interest expense over the life of the refunding bonds issued or the remaining life of the bonds
refunded, whichever is shorter. The deferred pensions will be recognized in pension expense in
future years as more fully described in Note III, subsection A. The deferred other
postemployment benefits will be recognized in employee benefits expense in future years as
more fully described in Note III, subsection C.
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 two types of items that are reported on the government-wide statement of net position which
relate to outflows from changes in the net pension liability and the other postemployment benefit
liability. The deferred pensions will be recognized in pension expense in future years as more
fully described in Note III, subsection A. The deferred other postemployment benefits will be
recognized in employee benefits expense in future years as more fully described in Note III,
subsection C. The Town also one type of item that arises 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 three sources: property taxes, user charges 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 57 of 157 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.
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
$5,411,964 at June 30, 2019 and is reported as unassigned fund balance in the General Fund.
Town of Nantucket, Massachusetts Page 58 of 157 Comprehensive Annual Financial Report
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, 2019 and is reported as unassigned fund balance in the General Fund.
The following table reflects the Town’s fund equity categorizations:
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 $1,463,973 of encumbrances from normal purchasing
activity in the general fund as assigned and $1,306,112 of encumbrances from Town Meeting
Articles in the general fund as committed. There are no encumbrances reported in any other fund.
Town Nonmajor
Capital Governmental
General Projects Funds Total
$ 3,113,226 -$ $-$ 3,113,226
- - 44,965 44,965
Nonspendable:Interfund loans
Nonexpendable trust funds Restricted:
School grants - - 440,221 440,221
Town grants - - 1,168,070 1,168,070
School revolving - - 1,491,704 1,491,704
Ambulance - - 1,240,220 1,240,220
Beach improvements - - 1,538,462 1,538,462
Waterway improvements - - 636,798 636,798
Insurance proceeds - - 1,086,954 1,086,954
Other Town revolving - - 2,519,437 2,519,437
Capital outlay - 13,223,679 2,038,261 15,261,940
Community preservation -- 4,828,842 4,828,842
Gift funds -- 1,049,137 1,049,137
Expendable trust funds -- 152,850 152,850
Debt service 231,468 - - 231,468
Committed:
Nursing home 4,976,156 - - 4,976,156
Solid waste landfill 2,963,499 - - 2,963,499
Capital outlay 1,264,316 - - 1,264,316
Other purposes 41,796 - - 41,796
Assigned:
Town administration 211,132 - - 211,132
Public buildings 162,161 - - 162,161
Education 461,971 - - 461,971
Public safety 127,057 - - 127,057
Other purposes 501,652 - - 501,652
Subsequent years' budget 6,075,244 - - 6,075,244
Unassigned 22,764,258 (2,569,775) (881,270) 19,313,213
42,893,936$ 10,653,904$ 17,354,651$ 70,902,491$
Town of Nantucket, Massachusetts Page 59 of 157 Comprehensive Annual Financial Report
E.Excess of Expenditures Over Appropriations and Deficits
During the fiscal year ended, the Town overspent its appropriation for state and county
assessments by $68,707 which was funded from available revenues.
The Town incurred deficits of $2,569,775 for capital outlays which is reported in the Town
Capital Projects major fund and $881,270 for a septic program which is reported in the Nonmajor
Governmental Funds. 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 $100,678,103 and the bank balance
was $101,509,227. Of the Town's bank balance, $37,084,781 was covered by federal depository
insurance or the Depositors Insurance Fund, $48,461,590 was collateralized and the remainder
was uninsured.
Town of Nantucket, Massachusetts Page 60 of 157 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 in U.S. government obligations and 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. The Town’s
investments in certificates of deposit are fully insured by federal depository insurance or the
Depositors Insurance Fund or collateralized.
Equity securities classified in Level 1 are valued using prices quoted in active markets for those
securities. Debt securities classified in Level 2 are valued using prices for similar securities in
active markets. Certificates of deposit classified in Level 2 are valued using matrix pricing based
on the securities’ relationship to benchmark quoted prices. The State Treasurer’s investment pool
(MMDT) is valued at amortized cost. The MMDT’s investment advisor may value the pool using
an alternative valuation method that more accurately reflects the fair value in accordance with the
pools fair value pricing policies should amortized cost not approximate the fair value of the pool.
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, 2019, 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 17% of its investments in the MMDT and 54% 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,
Time Until Maturity (Years)
Less
Investment Type 6/30/19 Than 1 1-5 6-10
U.S. government obligations 9,742,616$ 7,257,893$ 2,484,723$ -$
Certificates of deposit 2,835,660 2,835,660 - -
State investment pool (MMDT)3,120,906 3,120,906 - -
Total Town investments with maturities 15,699,182$ 13,214,459$ 2,484,723$ -$
Town of Nantucket, Massachusetts Page 61 of 157 Comprehensive Annual Financial Report
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.
At June 30, 2019, the Town’s investments in U.S. government securities were rated AAA by
Moody’s and the remainder of the Town’s investments were unrated.
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, 2019:
6/30/19 Level 1 Level 2 Level 3
Investments by fair value level
Debt securities:
U.S. Government obligations 9,742,616$ -$ 9,742,616$ -$
Total debt securities 9,742,616 - 9,742,616 -
Equity securities:
Common stock 2,365,506 2,365,506 - -
Total equity securities 2,365,506 2,365,506 - -
Certificates of deposit 2,835,660 2,835,660
Total investments by fair value level 14,943,782$ 2,365,506$ 12,578,276$ -$
Investments measured at amortized cost
MMDT 3,120,906
Total investments 18,064,688$
Fair Value Measurements Using
Town of Nantucket, Massachusetts Page 62 of 157 Comprehensive Annual Financial Report
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 $5,482,565 and the bank balance
was $5,492,997. Of the County's bank balance, $5,362,320 was covered by either federal
depository insurance or by the Depositors’ Insurance Fund (DIF) and the remaining balance was
uninsured.
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 $42,993 which
were covered by federal depository insurance and were not subject to custodial credit risk. These
are recorded as cash equivalents at June 30, 2019.
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.
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 $22,500,000, of which approximately $1,613,000 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.
Town of Nantucket, Massachusetts Page 63 of 157 Comprehensive Annual Financial Report
Restricted Cash consist of the following as of June 30, 2019:
Series A Debt Reserve $1,440,548
Park construction 461,058
Mitigation agreements 209,184
Life insurance premium 221,504
$2,332,294
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 $4,920,966
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 $2,810,366 which mature in May 2022 and have a Moody’s quality rating of AAA.
At June 30, 2019, all investments are categorized in Level 1 of the fair value hierarchy based on
quoted market prices.
The Land Bank has entered into an agreement with the Town, which requires the Land Bank to
establish a working capital reserve fund. This fund, along with the guarantee of the Town of its
full faith and credit, secures the Series 2009A, 2012A and 2016A bonds outstanding at year-end.
In addition, the Land Bank is prohibited from acquiring additional real estate at any time that an
amount equal to one year’s debt service relating to the bonds in the reserve fund is not on deposit.
Interest Rate Risk -The Land Bank does not have a formal policy regarding interest rate risk.
B.Receivables
Receivables as of year-end for the Town’s individual major and non-major governmental funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes 2,029,025$ (354,426)$ 1,674,599$
Tax liens 2,898,606 - 2,898,606
Motor vehicle and other excise taxes 1,146,291 (39,421) 1,106,870
Community preservation surcharges 192,817 - 192,817
Nursing home user charges 513,338 - 513,338
Landfill user charges 604,986 (143,303) 461,683
Ambulance user charges 935,365 (412,000) 523,365
Departmental and other 23,940 - 23,940
Intergovernmental 2,897,027 - 2,897,027
Total 11,241,395$ (949,150)$ 10,292,245$
Town of Nantucket, Massachusetts Page 64 of 157 Comprehensive Annual Financial Report
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:
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 $992,704 and interest in the amount
of $5,130,856 until the maturity of these agreements. GAAP requires the recognition of gross
debt relative to these agreements; therefore, a receivable totaling $992,704 has been reported in
the Sewer Enterprise Fund.
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Water user charges 698,839$ -$ 698,839$
Sewer user charges 773,740 - 773,740
Sewer privilege fees 450,633 - 450,633
Airport user charges 469,329 - 469,329
Stop loss receivable 442,792 - 442,792
Intergovernmental 5,616,193 - 5,616,193
Total 8,451,526$ -$ 8,451,526$
Other
General Governmental
Fund Funds Total
Receivable type:
Real estate and personal property taxes 1,281,469$ -$ 1,281,469$
Tax liens 2,898,606 - 2,898,606
Motor vehicle and other excise taxes 525,624 - 525,624
Community preservation surcharges - 192,817 192,817
Nursing home user charges 513,338 - 513,338
Landfill user charges 461,683 - 461,683
Ambulance user charges - 523,365 523,365
Departmental and other 23,940 - 23,940
Total 5,704,660$ 716,182$ 6,420,842$
Town of Nantucket, Massachusetts Page 65 of 157 Comprehensive Annual Financial Report
C. Capital Assets
Capital asset activity for the year ended June 30, 2019, was as follows:
.
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land 178,869,211$ 101,353$ (99,854)$ 178,870,710$
Construction in process 64,413,452 16,480,760 (6,066,933) 74,827,279
Total capital assets not being depreciated 243,282,663 16,582,113 (6,166,787) 253,697,989
Capital assets being depreciated:
Buildings and improvements 69,654,028 585,595 (507,007) 69,732,616
Infrastructure 37,261,767 6,284,631 (184,842) 43,361,556
Machinery and equipment * 10,401,574 1,020,367 (721,231) 10,700,710
Vehicles * 9,633,555 1,259,703 (406,327) 10,486,931
Total capital assets being depreciated 126,950,924 9,150,296 (1,819,407) 134,281,813
Less accumulated depreciation for:
Buildings and improvements (32,352,869) (2,161,223) 507,007 (34,007,085)
Infrastructure * (14,502,387) (1,825,912) 184,842 (16,143,457)
Machinery and equipment * (4,538,335) (1,118,023) 721,231 (4,935,127)
Vehicles * (6,299,879) (868,735) 406,327 (6,762,287)
Total accumulated depreciation (57,693,470) (5,973,893) 1,819,407 (61,847,956)
Total capital assets being depreciated, net 69,257,454 3,176,403 - 72,433,857
Total governmental activities capital assets, net 312,540,117$ 19,758,516$ (6,166,787)$ 326,131,846$
Business-Type Activities:
Capital assets not being depreciated:
Land 16,805,385$ -$ -$ 16,805,385$
Construction in process 44,254,108 15,876,140 (12,559,536) 47,570,712
Total capital assets not being depreciated 61,059,493 15,876,140 (12,559,536) 64,376,097
Capital assets being depreciated:
Buildings and improvements 55,021,532 4,332,161 (4,300) 59,349,393
Infrastructure 169,293,560 6,866,720 (82,382) 176,077,898
Machinery and equipment 20,495,075 1,134,535 (70,998) 21,558,612
Vehicles 7,553,021 553,443 (415,583) 7,690,881
Total capital assets being depreciated 252,363,188 12,886,859 (573,263) 264,676,784
Less accumulated depreciation for:
Buildings and improvements (10,290,926) (1,406,138) 4,300 (11,692,764)
Infrastructure (58,790,827) (3,833,369) 82,382 (62,541,814)
Machinery and equipment (14,545,940) (761,566) 70,998 (15,236,508)
Vehicles (4,607,548) (513,707) 415,583 (4,705,672)
Total accumulated depreciation (88,235,241) (6,514,780) 573,263 (94,176,758)
Total capital assets being depreciated, net 164,127,947 6,372,079 - 170,500,026
Total business-type activities capital assets, net 225,187,440$ 22,248,219$ (12,559,536)$ 234,876,123$
* As reclassified
Town of Nantucket, Massachusetts Page 66 of 157 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 334,485 36,433 (265,715) 105,203
Total capital assets not being depreciated 2,950,063 36,433 (265,715) 2,720,781
Capital assets being depreciated:
Buildings and improvements 808,299 - (4,300) 803,999
Infrastructure 9,858,124 - (57,700) 9,800,424
Machinery and equipment 525,161 265,076 (9,540) 780,697
Total capital assets being depreciated 11,191,584 265,076 (71,540) 11,385,120
Less accumulated depreciation for:
Buildings and improvements (167,274) (30,848) 4,300 (193,822)
Infrastructure (1,878,838) (235,383) 57,700 (2,056,521)
Machinery and equipment (88,947) (38,181) 9,540 (117,588)
Total accumulated depreciation (2,135,059) (304,412) 71,540 (2,367,931)
Total capital assets being depreciated, net 9,056,525 (39,336) - 9,017,189
Total Siasconset Water capital assets, net 12,006,588$ (2,903)$ (265,715)$ 11,737,970$
Business-type Activities: Wannacomet Water
Capital assets not being depreciated:
Land 5,434,455$ -$ -$ 5,434,455$
Construction in process 8,117,528 331,428 (8,067,151) 381,805
Total capital assets not being depreciated 13,551,983 331,428 (8,067,151) 5,816,260
Capital assets being depreciated:
Buildings and improvements 1,532,974 4,051,493 - 5,584,467
Infrastructure 37,717,269 3,496,020 (24,682) 41,188,607
Machinery and equipment * 1,490,312 307,416 (32,795) 1,764,933
Vehicles * 310,233 42,234 (52,196) 300,271
Total capital assets being depreciated 41,050,788 7,897,163 (109,673) 48,838,278
Less accumulated depreciation for:
Buildings and improvements (380,738) (102,597) - (483,335)
Infrastructure * (9,903,388) (829,329) 24,682 (10,708,035)
Machinery and equipment * (477,983) (77,342) 32,795 (522,530)
Vehicles * (233,378) (27,715) 52,196 (208,897)
Total accumulated depreciation (10,995,487) (1,036,983) 109,673 (11,922,797)
Total capital assets being depreciated, net 30,055,301 6,860,180 - 36,915,481
Total Wannacomet Water capital assets, net 43,607,284$ 7,191,608$ (8,067,151)$ 42,731,741$
* As reclassified
Town of Nantucket, Massachusetts Page 67 of 157 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 31,576,349 14,076,780 (739,614) 44,913,515
Total capital assets not being depreciated 37,951,932 14,076,780 (739,614) 51,289,098
Capital assets being depreciated:
Buildings and improvements 368,790 - - 368,790
Infrastructure 83,318,108 739,614 - 84,057,722
Machinery and equipment * 16,391,016 50,395 (7,400) 16,434,011
Vehicles * 1,833,630 468,359 (176,231) 2,125,758
Total capital assets being depreciated 101,911,544 1,258,368 (183,631) 102,986,281
Less accumulated depreciation for:
Buildings and improvements (193,266) (13,261) - (206,527)
Infrastructure (22,601,448) (1,697,165) - (24,298,613)
Machinery and equipment * (13,006,547) (462,838) 7,400 (13,461,985)
Vehicles * (835,984) (201,577) 176,231 (861,330)
Total accumulated depreciation (36,637,245) (2,374,841) 183,631 (38,828,455)
Total capital assets being depreciated, net 65,274,299 (1,116,473) - 64,157,826
Total Sewer capital assets, net 103,226,231$ 12,960,307$ (739,614)$ 115,446,924$
Capital assets not being depreciated:
Land 2,379,769$ -$ -$ 2,379,769$
Construction in process 4,225,746 1,431,498 (3,487,055) 2,170,189
Total capital assets not being depreciated 6,605,515 1,431,498 (3,487,055) 4,549,958
Capital assets being depreciated:
Infrastructure 38,400,059 2,631,086 - 41,031,145
Buildings and improvements 52,311,469 280,668 - 52,592,137
Machinery and equipment * 2,088,587 511,648 (21,263) 2,578,972
Vehicles * 5,409,157 42,850 (187,156) 5,264,851
Total capital assets being depreciated 98,209,272 3,466,252 (208,419) 101,467,105
Less accumulated depreciation for:
Infrastructure (24,407,153) (1,071,492) - (25,478,645)
Buildings and improvements (9,549,648) (1,259,432) - (10,809,080)
Machinery and equipment * (972,463) (183,205) 21,263 (1,134,405)
Vehicles * (3,538,186) (284,415) 187,156 (3,635,445)
Total accumulated depreciation (38,467,450) (2,798,544) 208,419 (41,057,575)
Total capital assets being depreciated, net 59,741,822 667,708 - 60,409,530
Total Nantucket Memorial Airport capital assets, net 66,347,337$ 2,099,206$ (3,487,055)$ 64,959,488$
* As reclassified
Business-type Activities: Nantucket Memorial Airport
Town of Nantucket, Massachusetts Page 68 of 157 Comprehensive Annual Financial Report
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:Business-Type Activities:
General government 319,520$ Water 1,341,395$
Public safety 1,987,860 Sewer 2,374,841
Education 1,216,397 Airport 2,798,544
Public works 2,293,921 6,514,780$
Health and human services 156,195
5,973,893$
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 21,071 - - 21,071
Less accumulated depreciation for:
Machinery and equipment (20,421) (650) - (21,071)
Total capital assets being depreciated, net 650 (650) - -
Total Nantucket County capital assets, net 3,284,492$ (650)$ -$ 3,283,842$
Discretely Presented Component Unit - Nantucket Islands Land Bank
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 320,726,743$ 51,400,736$ (975,000)$ 371,152,479$
Capital assets being depreciated:
Buildings, improvements and equipment 28,547,483 7,539,004 (687,609) 35,398,878
Less: accumulated depreciation (11,894,223) (1,038,982) 373,665 (12,559,540)
Total capital assets being depreciated, net 16,653,260 6,500,022 (313,944) 22,839,338
Total Nantucket Islands Land Bank
capital assets, net 337,380,003$ 57,900,758$ (1,288,944)$ 393,991,817$
Town of Nantucket, Massachusetts Page 69 of 157 Comprehensive Annual Financial Report
D.Interfund Receivables, Payables and Transfers
The composition of interfund balances at June 30, 2019 is as follows:
The outstanding balances between governmental 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 Town and the Nantucket Memorial Airport entered into an agreement in fiscal year 2019 for
the Enterprise Fund to repay the General Fund in regular installments for costs that were
subsidized in prior years. In connection with the execution of this agreement, a prior period
restatement in the amount of $3,348,846 was recorded as an obligation due to the Town. Refer to
Note IV for additional details on restatements.
The composition of interfund transfers for the fiscal year ended June 30, 2019, was as follows:
E.Temporary Debt
The Town is authorized to borrow on a temporary basis to fund the following:
Current Operating Costs – Prior to collection of revenues, expenditures may be financed through
the issuance of revenue or tax anticipation notes (RANS or TANS).
Capital Projects and Other Approved Costs – Projects may be temporarily funded through the
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). In certain cases,
prior to the issuance of these temporary notes, the governing body must take the necessary legal
steps to authorize the issuance of the general obligation bonds. Temporary notes may not exceed
the aggregate amount of bonds authorized or the grant award amount and carry maturity dates
Amount
General Fund Nonmajor Governmental Funds -651,154$
Road Improvements
General Fund Enterprise Fund -
Nantucket Memorial Airport 3,113,225
Total 3,764,379$
Receivable Fund Payable Fund
Town Nonmajor
Capital Governmental
Projects Funds Total
General Fund 8,224,136$ 700,000$ 8,924,136$ (1)
Nonmajor Governmental Funds 22,416 - 22,416 (1)
Total 8,246,552$ 700,000$ 8,946,552$
(1) Transfer to town capital projects for various capital outlays; transfers to nonmajor funds
to fund community school and special education programs.
Transfers In
Transfers Out
Town of Nantucket, Massachusetts Page 70 of 157 Comprehensive Annual Financial Report
that are limited by state law. Interest expenditures and expenses for temporary borrowings are
accounted for in the general fund and enterprise funds, respectively.
Short-term (BANs) issued for nonmajor governmental funds were used for septic betterments
($3,000,000), roadways and sidewalks ($500,000), town pier ($400,000), nursing home
construction ($725,000) and fire station construction ($2,500,000). Those issued for business-
type funds were issued for water projects ($750,000), sewer projects ($18,877,731) and airport
projects ($2,263,369).
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 and sewer
improvements. Short-term MCWT loans totaling $3,000,000 and $7,461,562 are reported in the
non-major governmental funds and business-type funds, respectively.
Temporary notes outstanding at June 30, 2019, are payable as follows:
Interest Maturity July 1,June 30,
Type Rate Date 2018 Additions Retirements 2019
MCWT 0.00%12/31/19 1,000,000$ -$ -$ 1,000,000$
MCWT 0.00%12/31/20 - 2,000,000 - 2,000,000
BAN 2.50% Matured 7,417,000 - (7,417,000)-
BAN 2.75% Matured 3,000,000 - (3,000,000)-
BAN 3.00% Matured - 825,000 (825,000) -
BAN 2.50%10/24/19 - 2,925,000 - 2,925,000
BAN 2.75%05/22/20 - 1,200,000 - 1,200,000
Total Governmental Notes 11,417,000 6,950,000 (11,242,000) 7,125,000
BAN 2.50% Matured 13,333,169 - (13,333,169) -
BAN 2.75% Matured 2,500,000 - (2,500,000)-
BAN 3.00% Matured 1,883,447 - (1,883,447)-
BAN 2.20% Matured 292,000 - (292,000) -
BAN 2.50% Matured - 5,461,235 (5,461,235)-
BAN 3.00% Matured - 6,454,934 (6,454,934)-
BAN 3.00% Matured - 5,461,235 (5,461,235)-
BAN 2.50%10/24/19 - 10,731,856 - 10,731,856
BAN 3.25%10/24/19 - 146,000 - 146,000
BAN 2.75%05/22/20 - 3,339,760 - 3,339,760
BAN 2.70%05/22/20 - 211,922 - 211,922
MCWT 2.00% Matured 8,472,975 - (8,472,975)-
MCWT 2.00% Matured 14,101,765 - (14,101,765) -
MCWT 2.00%12/31/19 5,873,812 - - 5,873,812
MCWT 2.00%12/31/19 1,587,750 - - 1,587,750
Total Business-Type Notes 48,044,918 31,806,942 (57,960,760) 21,891,100
Total Notes Payable 59,461,918$ 38,756,942$ (69,202,760)$ 29,016,100$
Town of Nantucket, Massachusetts Page 71 of 157 Comprehensive Annual Financial Report
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.
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”.
On November 15, 2018, the Town issued $20,495,000 in general obligation bonds that mature on
July 15, 2038 and pay interest at 3% – 5% per annum. A portion of the proceeds, along with
$392,066 of available funds were used to retire $13,504,000 of BANS maturing on November 16,
2018. The bonds were issued for water projects ($3,146,000), sewer construction ($545,000),
affordable housing ($464,500), roads and sidewalks ($1,970,000), fire station construction
($13,202,500), nursing home design ($167,000) and school construction ($1,000,000).
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, 2019,
$2,490,000 of defeased bonds remains outstanding.
Town of Nantucket, Massachusetts Page 72 of 157 Comprehensive Annual Financial Report
The following reflects the current year activity in the long-term liability accounts:
The Town’s governmental activities liabilities will be liquidated by the general fund. The
business-type liabilities will be liquidated by the respective business-type funds.
Beginning Ending Due within
Balance Additions Deletions Balance one year
Governmental Activities:
General obligation bonds (a)68,401,427$ 16,804,000$ (3,980,859)$ 81,224,568$ 4,747,881$
Unamortized bond premium 2,828,828 1,018,631 (299,909) 3,547,550 387,411
Notes from direct borrowings and placements (a) 13,741,999 - (713,910) 13,028,089 728,567
Workers' compensation 95,805 373,414 (354,254) 114,965 114,965
Landfill closure 12,000,000 2,000,000 - 14,000,000 -
Compensated absences 2,241,122 1,741,354 (1,120,561) 2,861,915 1,430,958
Net other postemployment benefits liability (b) 88,095,045 26,450,187 (5,602,879) 108,942,353 -
Net pension liability 55,087,786 20,241,938 (9,477,938) 65,851,786 -
Total Governmental Activities 242,492,012$ 68,629,524$ (21,550,310)$ 289,571,226$ 7,409,782$
Business-Type Activities - Siasconset Water:
General obligation bonds (a)5,209,900$ -$ (395,000)$ 4,814,900$ 400,000$
Unamortized bond premium 438,461 - (75,171) 363,290 71,602
Net other postemployment benefits liability (b)545,448 100,787 (51,962) 594,273 -
Net pension liability 131,931 48,478 (22,699) 157,710 -
Total Siasconset Water 6,325,740 149,265 (544,832) 5,930,173 471,602
Business-Type Activities - Wannacomet Water:
General obligation bonds (a)17,597,400 3,146,000 (1,738,000) 19,005,400 1,731,000
Unamortized bond premium 1,202,033 154,000 (207,621) 1,148,412 201,688
Compensated absences 235,628 156,293 (117,814) 274,107 137,053
Net other postemployment benefits liability (b) 1,169,500 311,775 (171,613) 1,309,662 -
Net pension liability 2,724,375 1,001,068 (468,733) 3,256,710 -
Total Wannacomet Water 22,928,936 4,769,136 (2,703,781) 24,994,291 2,069,741
Business-Type Activities - Sewer:
General obligation bonds (a)3,236,250 545,000 (342,000) 3,439,250 393,000
Unamortized bond premium 287,290 55,000 (51,584) 290,706 58,033
Notes from direct borrowings and placements (a) 33,938,405 22,574,740 (2,121,274) 54,391,871 3,294,976
Compensated absences 88,227 55,974 (44,113) 100,088 50,044
Net other postemployment benefits liability (b)255,433 61,511 (159,076) 157,868 -
Net pension liability 1,662,331 610,820 (286,006) 1,987,145 -
Total Sewer 39,467,936 23,903,045 (3,004,053) 60,366,928 3,796,053
Business-Type Activities - Nantucket Memorial Airport:
Bond and note debt 9,170,000 - (800,000) 8,370,000 680,000
Unamortized bond premium 137,252 - (21,227) 116,025 19,377
Compensated absences 603,231 287,653 (301,616) 589,268 294,634
Net other postemployment benefits liability (b) 3,612,261 998,404 (741,033) 3,869,632 -
Net pension liability 6,359,074 2,336,634 (1,094,089) 7,601,619 -
Total Nantucket Memorial Airport 19,881,818 3,622,691 (2,957,965) 20,546,544 994,011
Total Business-Type Activities 88,604,430$ 32,444,137$ (9,210,631)$ 111,837,936$ 7,331,407$
(a) Reclassifications were made to beginning balances for the adoption of GASB Statement No. 88.
(b) As restated (see Note IV)
Town of Nantucket, Massachusetts Page 73 of 157 Comprehensive Annual Financial Report
The following is a summary of outstanding long-term debt obligations as of June 30, 2019:
The Town’s outstanding notes from direct borrowings and placements related to governmental
and business-type activities are issued by the Massachusetts Clean Water Trust. All financing
agreements with the MCWT contain a provision that in the event of default, outstanding amounts
due and payable shall be paid from any undisbursed proceeds on account or be deducted from any
state local aid distributions owed to the Town. This provision also allows the MCWT to declare
the entire outstanding principal amount due immediately.
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Governmental Activities:
General Obligation Bonds 2.00 - 5.00% 58,089,977$ 16,804,000$ (2,340,859)$ 72,553,118$
General Obligation Refunding Bonds 1.50 - 5.00% 10,311,450 - (1,640,000) 8,671,450
Total General Obligation Bonds 68,401,427 16,804,000 (3,980,859) 81,224,568
Add: Unamortized bond premium 2,828,828 1,018,631 (299,909) 3,547,550
Total General Obligation Bonds, net 71,230,255 17,822,631 (4,280,768) 84,772,118
Massachusetts Clean Water Trust 0.00 - 2.42% 13,741,999 - (713,910) 13,028,089
Total notes from direct borrowings and placements 13,741,999 - (713,910) 13,028,089
Total Governmental Activities debt 84,972,254$ 17,822,631$ (4,994,678)$ 97,800,207$
Business-Type Activities - Siasconset Water:
General Obligation Bonds 2.00 - 5.00% 1,580,000$ -$ (395,000)$ 1,185,000$
General Obligation Refunding Bonds 2.00 - 4.00% 3,629,900 - - 3,629,900
Total General Obligation Bonds 5,209,900 - (395,000) 4,814,900
Add: Unamortized bond premium 438,461 - (75,171) 363,290
Total General Obligation Bonds, net 5,648,361$ -$ (470,171)$ 5,178,190$
Business-Type Activities - Wannacomet Water:
General Obligation Bonds 2.00 - 5.00% 7,981,000$ 3,146,000$ (806,000)$ 10,321,000$
General Obligation Refunding Bonds 1.50 - 5.00% 9,616,400 - (932,000) 8,684,400
Total General Obligation Bonds 17,597,400 3,146,000 (1,738,000) 19,005,400
Add: Unamortized bond premium 1,202,033 154,000 (207,621) 1,148,412
Total General Obligation Bonds, net 18,799,433$ 3,300,000$ (1,945,621)$ 20,153,812$
Business-Type Activities - Sewer:
General Obligation Bonds 2.00 - 5.00% 1,534,000$ -$ (114,000)$ 1,420,000$
General Obligation Refunding Bonds 2.00 - 5.00% 1,702,250 545,000 (228,000) 2,019,250
Total General Obligation Bonds 3,236,250 545,000 (342,000) 3,439,250
Add: Unamortized bond premium 287,290 55,000 (51,584) 290,706
Total General Obligation Bonds, net 3,523,540 600,000 (393,584) 3,729,956
Massachusetts Clean Water Trust 0.00 - 5.50% 33,938,405 22,574,740 (2,121,274) 54,391,871
Total notes from direct borrowings and placements 33,938,405 22,574,740 (2,121,274) 54,391,871
Total debt 37,461,945$ 23,174,740$ (2,514,858)$ 58,121,827$
Business-Type Activities - Nantucket Memorial Airport:
General Obligation Bonds 2.00 - 5.00% 9,170,000$ -$ (800,000)$ 8,370,000$
Total General Obligation Bonds 9,170,000 - (800,000) 8,370,000
Add: Unamortized bond premium 137,252 - (21,227) 116,025
Total General Obligation Bonds, net 9,307,252$ -$ (821,227)$ 8,486,025$
Total Business-Type Activities debt 71,216,991$ 26,474,740$ (5,751,877)$ 91,939,854$
Town of Nantucket, Massachusetts Page 74 of 157 Comprehensive Annual Financial Report
Payments on long-term debt due in future years consist of the following:
Direct Borrowings
Year Ending
June 30 Principal Interest Principal Interest
Governmental Activities
2020 4,747,881$ 2,994,340$ 728,567$ 281,692$
2021 4,884,924 2,705,455 742,413 266,686
2022 4,843,988 2,511,300 757,753 251,365
2023 4,826,073 2,321,748 773,447 235,689
2024 4,707,180 2,122,038 741,660 219,653
2025-2029 18,793,750 8,029,637 3,813,118 848,881
2030-2034 15,809,509 4,852,383 2,925,891 472,735
2035-2039 16,591,263 2,270,119 2,545,240 122,134
2040-2042 6,020,000 284,879 - -
Total 81,224,568$ 28,091,899$ 13,028,089$ 2,698,835$
Business-Type Activities: Siasconset Water
2020 400,000$ 162,186$ -$ -$
2021 410,000 147,061 - -
2022 420,000 130,961 - -
2023 435,000 114,935 - -
2024 450,000 97,485 - -
2025-2029 2,464,900 225,316 - -
2030-2034 195,000 18,051 - -
2035-2039 40,000 1,200 - -
4,814,900$ 897,195$ -$ -$
Business-Type Activities: Wannacomet Water
2020 1,731,000$ 685,268$ -$ -$
2021 1,795,000 599,900 - -
2022 1,643,000 533,664 - -
2023 1,632,000 471,040 - -
2024 1,649,000 406,746 - -
2025-2029 6,290,400 1,191,316 - -
2030-2034 2,550,000 495,424 - -
2035-2039 1,715,000 139,875 - -
19,005,400$ 4,523,233$ -$ -$
Business-Type Activities: Sewer
2020 393,000$ 137,853$ 3,294,976$ 781,515$
2021 393,000 116,150 3,350,852 716,984
2022 347,000 98,975 3,304,099 655,414
2023 342,000 83,595 3,365,613 585,104
2024 335,000 68,480 3,287,090 509,492
2025-2029 1,309,250 161,071 13,946,269 1,908,010
2030-2034 320,000 16,249 12,993,774 1,044,506
2035-2039 - - 10,849,198 243,168
3,439,250$ 682,373$ 54,391,871$ 6,444,193$
Business-Type Activities: Nantucket Memorial Airport
2020 680,000$ 316,338$ -$ -$
2021 605,000 294,362 - -
2022 610,000 270,938 - -
2023 625,000 247,187 - -
2024 505,000 225,988 - -
2025-2029 2,460,000 851,243 - -
2030-2034 2,325,000 401,633 - -
2035-2039 560,000 40,850 - -
8,370,000$ 2,648,539$ -$ -$
and PlacementsGeneral Obligation Bonds
Town of Nantucket, Massachusetts Page 75 of 157 Comprehensive Annual Financial Report
The following represents authorized and unissued debt as of June 30, 2019:
Discretely Presented Component Unit – Nantucket Islands Land Bank
Project Amount
Governmental:
Fire station 4,711,394$
School building 2,789,319
Public works 9,880,000
Marine building 3,450,000
Our Island Home 1,215,000
Solid waste - landfill 14,383,000
Town pier 4,900,000
Bicycle paths 2,839,487
Land acquisition 5,000,000
Affordable housing 20,000,000
Miscellaneous 2,499,000
Business-type:
Water projects 12,913,842
Sewer projects 86,190,912
Nantucket Memorial Airport 33,747,312
Total Authorized and Unissued 204,519,266$
The following reflects the activity in the long-term liability accounts for the Land Bank for the year ended June 30, 2019:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Bond and note indebtedness 25,419,340$ 3,587,836$ (5,021,335)$ 23,985,841$ 7,916,236$
Capital leases 129,730 158,511 (75,096) 213,145 81,399
Net OPEB liability 1,143,407 131,276 - 1,274,683 -
Net pension liability 1,674,418 506,296 - 2,180,714 -
Total Land Bank 28,366,895$ 4,383,919$ (5,096,431)$ 27,654,383$ 7,997,635$
The following is a summary of outstanding long-term debt obligations as of June 30, 2019:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Notes payable 3.00 - 6.06% 7,450,000$ 4,000,000$ (2,875,000)$ 8,575,000$
General obligation bonds 2.00 - 5.00% 17,535,000 - (2,285,000) 15,250,000
Total bonds and notes 24,985,000 4,000,000 (5,160,000) 23,825,000
Add: Unamortized bond premium 732,296 - (72,478) 659,818
Less: Discounts on notes payable (297,956) (412,164) 211,143 (498,977)
Total Land Bank 25,419,340$ 3,587,836$ (5,021,335)$ 23,985,841$
Town of Nantucket, Massachusetts Page 76 of 157 Comprehensive Annual Financial Report
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.
Payments on long-term debt 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
System (the System), 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, 2018 were issued and
may be obtained by writing to the Barnstable County Retirement System, 750 Attucks Lane,
Hyannis, Massachusetts 02601.
Membership – Membership in the System as of December 31, 2018, was as follows:
Retirees and beneficiaries currently receiving benefits 3,254
Active plan members 4,762
Inactive plan members 795
Total 8,811
Benefit Terms – Membership in the 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 System do not participate in the federal Social Security retirement system.
Massachusetts contributory retirement system benefits are uniform from retirement system to
system. The 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.
Year Ending
June 30 Principal Interest Total
2020 8,278,333$ 686,974$ 8,965,307$
2021 2,853,333 478,577 3,331,910
2022 2,913,334 375,025 3,288,359
2023 1,455,000 258,608 1,713,608
2024 1,260,000 211,463 1,471,463
2025-2029 5,845,000 526,178 6,371,178
2030-2032 1,220,000 64,090 1,284,090
Total 23,825,000$ 2,600,915$ 26,425,915$
Town of Nantucket, Massachusetts Page 77 of 157 Comprehensive Annual Financial Report
The most common benefits paid by the System include normal retirement, disability retirement
and survivor benefits.
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 System.
The 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.
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 $6,271,380, $55,397, and $176,649, respectively,
to the System in fiscal year 2019, 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 21%, 21% and 21%, respectively, in fiscal year 2019.
Net Pension Liability – At June 30, 2019, the Town, County and Land Bank reported liabilities of
$78,854,971, $683,871 and $2,180,714, respectively, for the proportionate shares of the net
pension liability. The net pension liability was measured as of January 1, 2018 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,
2018. There were no material changes to the System’s benefit terms since the actuarial valuation;
Town of Nantucket, Massachusetts Page 78 of 157 Comprehensive Annual Financial Report
however, since the last actuarial valuation the System decreased the investment return assumption
from 7.625% to 7.375% and changed mortality tables (see below).
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 System relative to the projected
contributions of all employers. The Town, County and Land Bank’s proportions were
approximately 9.977%, 0.087% and 0.276%, respectively, at December 31, 2018.
Pension Expense – The Town, County and Land Bank recognized $10,293,188, $66,313 and
$340,144, respectively, in pension expense in the statement of activities in fiscal year 2019.
Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2019, the
Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the Town’s pension expense as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected and
actual earnings on pension plan investments 4,605,119$ -$
Differences between expected and
actual experience - 742,115
Changes in assumptions 6,601,626 -
Changes in proportion and differences
between Town contributions and
proportionate share of contributions 2,739,006 869,218
Total 13,945,751$ 1,611,333$
Year ended June 30,
2020 3,781,242$
2021 2,553,053
2022 2,469,156
2023 3,219,878
2024 311,089
Total 12,334,418$
Town of Nantucket, Massachusetts Page 79 of 157 Comprehensive Annual Financial Report
At June 30, 2019, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the County’s pension expense as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected and
actual earnings on pension plan investments 39,938$ -$
Differences between expected and
actual experience - 36,734
Changes in assumptions 57,253 -
Changes in proportion and differences
between County contributions and
proportionate share of contributions 85,648 6,436
Total 182,839$ 43,170$
Year ended June 30,
2020 33,004$
2021 22,352
2022 30,329
2023 46,551
2024 7,433
Total 139,669$
Town of Nantucket, Massachusetts Page 80 of 157 Comprehensive Annual Financial Report
At June 30, 2019, the Land Bank reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the Land Bank’s pension expense as follows:
Actuarial Valuation – The measurement of the System’s total pension liability is developed by an
independent actuary. The latest actuarial valuation was performed as of January 1, 2018. The
significant actuarial assumptions used in the January 1, 2018 actuarial valuation included:
Actuarial cost method: Entry age normal
Amortization method: Appropriations increase at 5.28% per year through
2035 and 3.34% in 2036
Remaining amortization period: 20 years from July 1, 2016 for 2002 and 2003 Early
Retirement Incentives, retired sheriffs’ liability and
remaining unfunded liability; and 6 years from July 1,
2016 for 2010 Early Retirement Inventive
Investment rate of return: 7.375%, net of pension plan investment expenses,
including inflation
Cost of living adjustments: 3% on the first $18,000
Asset valuation method: Sum of actuarial value at the beginning of the year,
contributions and investment earnings based on the
actuarial interest assumption less benefit payments
and operating expenses plus 20% of the market value
at the end of the year in excess of that sum, plus
additional adjustment toward market value as
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected and
actual earnings on pension plan investments 127,353$ -$
Changes in assumptions 182,566 -
Changes in proportion and differences
between Landbank contributions and
proportionate share of contributions 273,114 137,660
Total 583,033$ 137,660$
Year ended June 30,
2020 105,242$
2021 71,277
2022 96,713
2023 148,441
2024 23,700
Total 445,373$
Town of Nantucket, Massachusetts Page 81 of 157 Comprehensive Annual Financial Report
necessary so that the final actuarial value is within
20% of market value.
Projected salary increases: Varied by length of service with ultimate ranges of
4.00%, 4.25% and 4.50% for groups 1, 2 and 4,
respectively
Inflation
Rates of retirement:
3.25%
Varies based upon age for general, police and fire
employees
Rates of disability: For general employees, it was assumed that 45% of all
disabilities are ordinary (55% are service connected);
for police and fire employees, 10% of all disabilities
are assumed to be ordinary (90% are service
connected)
Mortality rates: Pre-retirement rates reflect the RP-2014 Blue Collar
Employee Mortality Table projected generationally
with Scale MP-2017
Healthy retiree rates reflect the RP-2014 Blue Collar
Healthy Annuitant Mortality Table projected
generationally with Scale MP-2017
Disabled retiree rates reflect the RP-2014 Blue Collar
Healthy Annuitant Table set forward one year and
projected generationally with Scale MP-2017
The System’s investment policy in regard to the allocation of its invested assets is established by
the Commonwealth’s Pension Reserves Investment Management Board. System assets are
managed on a total return basis with a long-term objective of achieving a fully-funded status for
the benefits provided through the pension plan.
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and by
adding expected inflation. Best estimates of arithmetic real rates of return for each major asset
class included in the pension plan's target asset allocation as of December 31, 2018 are
summarized in the following table:
Town of Nantucket, Massachusetts Page 82 of 157 Comprehensive Annual Financial Report
Discount Rate – The discount rate used to measure the total pension was 7.375%, which
represents a decrease from the 7.625% in the previous actuarial valuation. 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
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 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 7.375% as well as the proportionate shares of the net pension
liability using a discount rate that is one percentage point lower (6.375%) or one percentage point
higher (8.375%) than the current rate:
1% Decrease
(6.375%)
Current Discount
(7.375%)
1% Increase
(8.375%)
Town’s proportionate share of
the net pension liability $100,660,432 $ 78,854,971 $ 60,512,876
County’s proportionate share of
the net pension liability $ 872,979 $ 683,871 $ 524,799
Land Bank’s proportionate share
of the net pension liability $ 2,783,738 $ 2,180,714 $ 1,673,468
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
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Domestic equity 21.0%6.16%
International developed markets equity 13.0%6.69%
International emerging markets equity 5.0%9.47%
Core fixed income 15.0%1.89%
High-yield fixed income 8.0%4.00%
Real estate 10.0%4.58%
Commodities 4.0%4.77%
Hedge fund, GTAA, risk parity 11.0%3.68%
Private equity 13.0%10.00%
Town of Nantucket, Massachusetts Page 83 of 157 Comprehensive Annual Financial Report
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, 2019, the Commonwealth contributed $3,077,725 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 0.234086%, 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 $ 55,504,851 $ (55,504,851) $ —
Pension expense 5,624,613 (5,624,613) —
The Town has recognized intergovernmental revenue and pension expense of $5,624,613
associated with this arrangement.
C.Other Postemployment Benefits
The Town administers a single employer defined benefit healthcare plan (the “OPEB Plan”). The
OPEB Plan provides health and life insurance benefits (other postemployment benefits) to current
and future retirees, their dependents and beneficiaries in accordance with Section 20 of
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
premium-based insurance program. The OPEB Plan does not issue a stand-alone audited
financial report and is presented as a fiduciary fund in the Town’s financial statements.
With respect to OPEB plan reporting, GASB issued GASB Statement No.’s 74, Financial
Reporting for Postemployment Benefit Plans Other Than Pensions, and Statement No, 75,
Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
Reporting requirements for governments who administer an OPEB plan as defined under the
accounting standard are required to present disclosures under both GASB 74 and GASB 75.
GASB 74 requires specific disclosures and required supplementary information that relate
directly to the fiduciary fund in which the OPEB Plan is recorded. GASB 75 address disclosures
related to the net OPEB liability required to be recorded by the government in its applicable
financial statements. A number of these disclosures are identical, especially if the measurement
date under GASB 75 is the same as the plan year-end date. When a different measurement date is
used different assumptions and calculations will result.
For the year ended June 30, 2019, the Town elected to use a measurement date that was the same
as the plan year-end date thus the majority of the same disclosures are used and will not be
repeated.
Town of Nantucket, Massachusetts Page 84 of 157 Comprehensive Annual Financial Report
GASB Statement No. 75
OPEB Plan disclosures that impact the Town’s net OPEB liability using a measurement date of
June 30, 2019 are summarized as follows:
Employees Covered by Benefit Terms – The following employees were covered by the benefit
terms as of July 1, 2018:
Contributions – The contribution requirements of OPEB Plan members and the Town are
established and may be amended by the Town. Retirees contribute 20% of the set premium for
master medical and 10% for other medical plans; 100% for dental, and 55% for life insurance.
The remainder of the cost is funded by general revenues of the Town. 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 OPEB Plan are paid by the Town. For the year ended June 30,
2019, the Town’s average contribution rate was less than 10.3% of covered-employee payroll.
Net OPEB Liability – The Town’s net OPEB liability was measured as of June 30, 2019 using an
actuarial valuation as of July 1, 2018. The components of the net OPEB liability of the Town at
June 30, 2019 were as follows:
Active employees 603
Inactive employees 354
Total 957
Total OPEB Liability 118,004,099$
Plan fiduciary net position (3,130,312)
Net OPEB liability 114,873,787$
Plan fiduciary net position as
a percentage of the total
OPEB liability 2.7%
Town of Nantucket, Massachusetts Page 85 of 157 Comprehensive Annual Financial Report
The total OPEB liability in the most recent actuarial valuation was determined using the
following key actuarial assumptions applied to all periods included in the measurement, unless
otherwise specified:
Changes to key assumptions:
•Discount rate changed from 4.25% to 4.00%.
•Retirement assumptions have been updated
•The mortality table has been updated from the RP-2000 Employees Mortality Table
projected generationally with scale BB and a base year 2009 to the RP-2014 Mortality Table
projected generationally with scale MP-2016 for males and females
•The expected long-term medical trend has been updated to 4.50%
•Based on recent research by the Society of Actuaries, we have updated the assumption for
morbidity or age-related costs of medical care
Investment rate of return 4.88%, net of OPEB plan investment expense,
including inflation.
Muncipal bond rate 2.79% as of June 30, 2019
Discount Rate 4.00%, net of OPEB plan investment
expense including inflation. Using a blend of the
Municipal Bond Index Rate for unfunded
periods and the Investment Rate of Return.
Inflation 2.75% annually as of July 1, 2018 and for future periods
Health Care Trend Rate 4.50%
Salary Increases 3.00% annually as of July 1, 2018 and for future periods
Cost of Living Adjustment Not applicable.
Pre-Retirement Mortality General: RP-2014 Mortality Table for Blue Collar Employees projected
generationally with scale MP-2016 for males and females
Teachers: RP-2014 Mortality Table for White Collar Employees projected
generationally with scale MP-2016 for males and females
Post-Retirement Mortality General: RP-2014 Mortality Table for Blue Collar Healthy Annuitants
projected generationally with scale MP-2016 for males and females
Teachers: RP-2014 Mortality Table for White Collar Healthy Annuitants
projected generationally with scale MP-2016 for males and females
Disabled Mortality General: RP-2014 Mortality Table for Blue Collar Healthy Annuitants projected
generationally with scale MP-2016 for males and females, set forward 1 year
Teachers: RP-2014 Mortality Table for White Collar Healthy Annuitants projected
generationally with scale MP-2016 for males and females
Actuarial Cost Method Individual Entry Age Normal
Town of Nantucket, Massachusetts Page 86 of 157 Comprehensive Annual Financial Report
Long Term Expected Rate of Return – The long-term expected rate of return on OPEB Plan
investments was determined using a building-block method in which best-estimate ranges of
expected future real rates of return (expected returns, net of OPEB Plan investment expense and
inflation) are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation.
The target allocation and best estimates of arithmetic real rates of return were as reflected in the
following table:
Sensitivity Analyses – The following presents the Town’s net OPEB liability as well as what the
Town’s net OPEB liability would be if it were calculated using a discount rate that is 1% lower or
1% higher than the current discount rate as well as if the healthcare cost trend rates are 1% lower
or higher than the current healthcare cost trend rates:
Expected
Target Investment Rate
Asset Class Allocation of Return
Domestic Equity - Large Cap 30.55%4.00%
Interntional Equity - Developed Market 2.50% 4.50%
Domestic Fixed Income 52.46% 2.00%
Cash 14.49% 0.00%
100.00%
Real rate of return 2.38%
Inflation assumption 2.75%
Total nominal rate of return 5.13%
Investment expense -0.25%
Net investment return 4.88%
Discount Rate
1% Decrease (3.00%)Trend Rate (4.00%)1% Increase (5.00%)
Net OPEB Liability 134,190,272$ 114,873,787$ 99,533,856$
1% Decrease (3.50%) Current (4.50%) 1% Increase (5.50%)
Net OPEB Liability 97,407,279$ 114,873,787$ 137,394,462$
Health Care Rate
Town of Nantucket, Massachusetts Page 87 of 157 Comprehensive Annual Financial Report
Changes in the Net OPEB Liability – The following table summarizes the changes in the net
OPEB liability for the year ended June 30, 2019:
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year
ended June 30, 3019, the Town recognized OPEB expense of $9,282,197. Deferred outflows of
resources and deferred inflows of resources related to OPEB at June 30, 2019 were reported as
follows:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense (benefit) as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2018 94,970,410$ 93,066,585$
1,903,825$
Changes for the year:
Service cost 4,071,076 - 4,071,076
Interest 4,434,216 - 4,434,216
Other 1,097,835 486,733 611,102
Change in assumptions 10,728,558 - 10,728,558
Difference between expected
and actual experience 5,940,020 - 5,940,020
Net investment income - 239,754 (239,754)
Employer contributions - 3,738,016 (3,738,016)
Benefit payments withdrawn from trust (3,238,016) (3,238,016) -
Net changes 23,033,689 1,226,487 21,807,202
Balances at June 30, 2019 118,004,099$ 3,130,312$ 114,873,787$
Deferred Outflows
of Resources
Deferred Inflows
of Resources
$ 8,998,145 $ -
-1,992,636
Changes in assumptions
Change in proportionate share and differencesDifferences between actual and expected experience
Differences between expected and actual earnings -73,903
$ 9,920,153 $ 2,988,547
June 30
2020 905,529$
2021 905,529
2022 905,529
2023 988,835
2024 2,688,479
thereafter 537,705
$ 6,931,606
922,008 922,008
Town of Nantucket, Massachusetts Page 88 of 157 Comprehensive Annual Financial Report
GASB Statement No. 74
OPEB Plan disclosures that impact the Town’s net OPEB liability using a measurement date of
June 30, 2019 are summarized in this section except disclosures under GASB 74 that are identical
to GASB 75 are not repeated.
Investment Custody – In accordance with Massachusetts General Laws, the Town Treasurer is the
custodian of the OPEB Plan and since the Town has not designated a Board of Trustees, the
Town Treasurer is also the Trustee and as such is responsible for the general supervision of the
management, investment and reinvestment of the OPEB Plan assets. OPEB Plan assets may be
invested and reinvested by the custodian consistent with the prudent investor rule established in
Chapter 203C and may, with the approval of the State Retiree Benefits Trust Fund Board of
Trustees, be invested in the State Retiree Benefits Trust Fund established in Section 24 of Chapter
32A. OPEB Plan assets must be segregated from other funds and not be subject to the claims of
any general creditor of the Town.
Investment Policy – The OPEB Plan has a formal investment policy to invest in Domestic Equity,
Domestic Fixed Income, International Equity, and Cash Equivalents with target allocations
highlighted previously under the caption long-term expected rate of return.
Investment Rate of Return – For the year ended June 30, 2019 the annual money-weighted rate of
return on investments, net of investment expense, was 10.03%. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Discretely Presented Component Unit – Nantucket County
The County administers a single-employer defined benefit healthcare plan (the “OPEB Plan”).
The OPEB Plan provides health care, dental and life insurance benefits (other postemployment
benefits) to current and future retirees, and their dependents/beneficiaries in accordance with
Massachusetts General Law Chapter 32B.
The County, however, has not adopted Section 20 of this Massachusetts General Law, therefore
any assets accumulated for purposes of paying benefit claims are revocable. Thus, this
arrangement does not qualify as a plan under generally accepted accounting principles and
therefore GASB 74 does not apply. The following disclosures include only those disclosures
required under GASB 75. This is the initial year of implementation.
An employee hired before April 2, 2012 shall become eligible to retire upon attainment of age 55
as an active member and completion of 10 years of creditable service or shall be eligible if able to
retire with 20 years of creditable service regardless of age. Those hired on or after April 2, 2012
shall be eligible to retire upon attainment of age 60 with 10 years of creditable service.
Specific benefit provisions and contribution rates are established by state law and the
Commission. All benefits are provided through the County’s premium-based insurance
programs, and these include comprehensive medical and dental insurance as well as group life
insurance.
Employees Covered by Benefit Terms – The following employees were covered by the benefit
terms as of June 30, 2019:
Town of Nantucket, Massachusetts Page 89 of 157 Comprehensive Annual Financial Report
Contributions – The contribution requirements of OPEB Plan members and the County are
established and may be amended by the County. Retirees contribute 20% of the set premium for
master medical and 10% for other medical plans; 100% for dental, and 55% for life insurance.
The remainder of the cost is funded by general revenues of 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 OPEB Plan are paid by the County.
For the year ended June 30, 2018, the County’s average contribution rate was 2.87% of covered-
employee payroll.
Net OPEB Liability – The County’s net OPEB liability was measured as of June 30, 2019 using
an actuarial valuation as of July 1, 2018.
The total OPEB liability in the most recent actuarial valuation was determined using the
following key actuarial assumptions applied to all periods included in the measurement, unless
otherwise specified:
Inactive employees/retirees 1
Active employees 2
Total 3
Investment rate of return 2.75% net of OPEB plan investment
expense including inflation
Muncipal bond rate 2.79% as of June 30, 2019
Single Equivalent Discount Rate 2.75% net of OPEB plan investment
expense including inflation. Using a blend of the
Municipal Bond Index Rate for unfunded
periods and the Investment Rate of Return.
Inflation 2.75% annually as of June 30, 2019 and for future
periods.
Health Care Trend Rate 4.50%
Salary Increases 3.00% annually as of June 30, 2019 and for future
periods.
Cost of Living Adjustment Not applicable.
Pre-Retirement Mortality General: RP-2014 Mortality Table for Blue Collar Employees projected
generationally with scale MP-2016 for males and females
Teachers: RP-2014 Mortality Table for White Collar Employees projected
generationally with scale MP-2016 for males and females
Post-Retirement Mortality General: RP-2014 Mortality Table for Blue Collar Healthy Annuitants
projected generationally with scale MP-2016 for males and females
Teachers: RP-2014 Mortality Table for White Collar Healthy Annuitants
projected generationally with scale MP-2016 for males and females
Disabled Mortality General: RP-2014 Mortality Table for Blue Collar Healthy Annuitants projected
generationally with scale MP-2016 for males and females, set forward 1 year
Teachers: RP-2014 Mortality Table for White Collar Healthy Annuitants projected
generationally with scale MP-2016 for males and females
Town of Nantucket, Massachusetts Page 90 of 157 Comprehensive Annual Financial Report
Changes to key assumptions:
•Due to the GASB 75 standards the discount rate has been changed from 3.25% to 2.75%.
•Retirement assumptions have been updated
•The mortality table has been updated from the RP-2000 Employees Mortality Table
projected generationally with scale BB and a base year 2009 to the RP-2014 Mortality Table
projected generationally with scale MP-2016 for males and females
•The expected long-term medical trend has been updated to 4.50%
•Based on recent research by the Society of Actuaries, we have updated the assumption for
morbidity or age-related costs of medical care
Discount Rate – The discount rate used to measure the total OPEB liability was a compounded
2.75% which represented a blend of the yield or index rate of 2.79% at June 30, 2019 for twenty-
year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher
used for unfunded periods and the long-term expected rate of return of 2.75%.
The long-term expected rate of return on OPEB Plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of OPEB Plan investment expense and inflation) are developed for each
major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation.
The target allocation and best estimates of arithmetic real rates of return were as reflected in the
following table:
Sensitivity Analyses – The following presents the County’s net OPEB liability as well as what the
County’s net OPEB liability would be if it were calculated using a discount rate that is 1.0%
lower or 1.0% higher than the current discount rate as well as if the healthcare cost trend rates are
1% lower or higher than the current healthcare cost trend rates:
Target Target Rate
Asset Class Allocation of Return
Cash 100.00% 0.00%
100.00%
Real rate of return 0.00%
Inflation assumption 2.75%
Total nominal rate of return 2.75%
Investment expense 0.00%
Net investment return 2.75%
Town of Nantucket, Massachusetts Page 91 of 157 Comprehensive Annual Financial Report
Changes in the Net OPEB Liability – The following table summarizes the changes in the net
OPEB liability for the year ended June 30, 2019:
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year
ended June 30, 2019, the County recognized OPEB expense of $29,429.
Deferred outflows of resources and deferred inflows of resources related to OPEB at June 30,
2019 were reported and will be amortized as followed:
1% Decrease Current Rate (2.75%) 1% Increase
Discount Rate 519,902$ 435,004$ 370,938$
1% Decrease Current Rate (4.50%) 1% Increase
Health Care Trend Rate 352,064$ 435,004$ 545,020$
Net OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2018 (as adjusted)377,088$ -$ 377,088$
Changes for the year:
Service cost 15,134 - 15,134
Interest 13,593 - 13,593
Other 27,726 - 27,726
Difference between expected
and actual experience (20,265) - (20,265)
Change in assumptions 25,177 - 25,177
Benefit payments withdrawn from trust (3,449) - (3,449)
Net investment income - - -
Benefit payments - - -
Net changes 57,916 - 57,916
Balances at June 30, 2019 435,004$ -$ 435,004$
Deferred Ouflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience -$ 17,370$
Changes of assumptions 21,580 -
21,580$ 17,370$
Town of Nantucket, Massachusetts Page 92 of 157 Comprehensive Annual Financial Report
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense (benefit) as follows:
Net OPEB Liability – The components of the net OPEB liability of the County at June 30, 2019
were as follows:
Discretely Presented Component Unit – Nantucket Islands Land Bank
The Land Bank administers a single-employer defined benefit healthcare plan (the “OPEB Plan”).
The OPEB Plan provides health care, dental and life insurance benefits (other postemployment
benefits) to current and future retirees, and their dependents/beneficiaries in accordance with
Massachusetts General Law Chapter 32B.
The Land Bank, however, has not adopted Section 20 of this Massachusetts General Law,
therefore any assets accumulated for purposes of paying benefit claims are revocable. Thus, this
arrangement does not qualify as a plan under generally accepted accounting principles and
therefore GASB 74 does not apply. The following disclosures include only those disclosures
required under GASB 75. This is the initial year of implementation.
An employee hired before April 2, 2012 shall become eligible to retire upon attainment of age 55
as an active member and completion of 10 years of creditable service or shall be eligible if able to
retire with 20 years of creditable service regardless of age. Those hired on or after April 2, 2012
shall be eligible to retire upon attainment of age 60 with 10 years of creditable service.
June 30
2020 702$
2021 702
2022 702
2023 702
2024 702
Thereafter 700
4,210$
Total OPEB Liability 435,004$
Plan fiduciary net position -
Net OPEB liability 435,004$
Plan fiduciary net position as
a percentage of the total
OPEB liability 0.0%
Town of Nantucket, Massachusetts Page 93 of 157 Comprehensive Annual Financial Report
Specific benefit provisions and contribution rates are established by state law and the
Commission. All benefits are provided through the Land Bank’s premium-based insurance
programs, and these include comprehensive medical and dental insurance as well as group life
insurance.
Employees Covered by Benefit Terms – The following employees were covered by the benefit
terms as of June 30, 2019:
Contributions – The contribution requirements of OPEB Plan members and the Land Bank are
established and may be amended by the Land Bank. Retirees contribute 20% of the set premium
for master medical and 10% for other medical plans; 100% for dental, and 55% for life insurance.
The remainder of the cost is funded by general revenues of the Land Bank.
The Land Bank currently contributes enough money to the Plan to satisfy current obligations on a
pay-as-you-go basis. The costs of administering the OPEB Plan are paid by the Land Bank.
For the year ended June 30, 2019, the Land Bank’s average contribution rate was 0% of covered-
employee payroll.
Net OPEB Liability – The Land Bank’s net OPEB liability was measured as of June 30, 2019
using an actuarial valuation as of July 1, 2018.
Inactive employees/retirees -
Active employees 7
Total 7
Town of Nantucket, Massachusetts Page 94 of 157 Comprehensive Annual Financial Report
The total OPEB liability in the most recent actuarial valuation was determined using the
following key actuarial assumptions applied to all periods included in the measurement, unless
otherwise specified:
Changes to key assumptions:
•Due to the GASB 75 standards the discount rate has been changed from 3.25% to 2.75%.
•Retirement assumptions have been updated
•The mortality table has been updated from the RP-2000 Employees Mortality Table
projected generationally with scale BB and a base year 2009 to the RP-2014 Mortality Table
projected generationally with scale MP-2016 for males and females
•The expected long-term medical trend has been updated to 4.50%
•Based on recent research by the Society of Actuaries, we have updated the assumption for
morbidity or age-related costs of medical care
Investment rate of return 2.75% net of OPEB plan investment
expense including inflation
Muncipal bond rate 2.79% as of June 30, 2019
Single Equivalent Discount Rate 2.75% net of OPEB plan investment
expense including inflation. Using a blend of the
Municipal Bond Index Rate for unfunded
periods and the Investment Rate of Return.
Inflation 2.75% annually as of June 30, 2019 and for future
periods.
Health Care Trend Rate 4.50%
Salary Increases 3.00% annually as of June 30, 2019 and for future
periods.
Cost of Living Adjustment Not applicable.
Pre-Retirement Mortality General: RP-2014 Mortality Table for Blue Collar Employees projected
generationally with scale MP-2016 for males and females
Teachers: RP-2014 Mortality Table for White Collar Employees projected
generationally with scale MP-2016 for males and females
Post-Retirement Mortality General: RP-2014 Mortality Table for Blue Collar Healthy Annuitants
projected generationally with scale MP-2016 for males and females
Teachers: RP-2014 Mortality Table for White Collar Healthy Annuitants
projected generationally with scale MP-2016 for males and females
Disabled Mortality General: RP-2014 Mortality Table for Blue Collar Healthy Annuitants projected
generationally with scale MP-2016 for males and females, set forward 1 year
Teachers: RP-2014 Mortality Table for White Collar Healthy Annuitants projected
generationally with scale MP-2016 for males and females
Town of Nantucket, Massachusetts Page 95 of 157 Comprehensive Annual Financial Report
Discount Rate – The discount rate used to measure the total OPEB liability was a compounded
2.75% which represented a blend of the yield or index rate of 2.79% at June 30, 2019 for twenty-
year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher
used for unfunded periods and the long-term expected rate of return of 2.75%.
The long-term expected rate of return on OPEB Plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of OPEB Plan investment expense and inflation) are developed for each
major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation.
The target allocation and best estimates of arithmetic real rates of return were as reflected in the
following table:
Sensitivity Analyses – The following presents the Land Bank’s net OPEB liability as well as what
the Land Bank’s net OPEB liability would be if it were calculated using a discount rate that is
1.0% lower or 1.0% higher than the current discount rate as well as if the healthcare cost trend
rates are 1% lower or higher than the current healthcare cost trend rates:
Changes in the Net OPEB Liability – The following table summarizes the changes in the net
OPEB liability for the year ended June 30, 2019:
Target Target Rate
Asset Class Allocation of Return
Cash 100.00% 0.00%
100.00%
Real rate of return 0.00%
Inflation assumption 2.75%
Total nominal rate of return 2.75%
Investment expense 0.00%
Net investment return 2.75%
1% Decrease Current Rate (2.75%) 1% Increase
Discount Rate 1,527,876$ 1,274,683$ 1,084,458$
1% Decrease Current Rate (4.50%) 1% Increase
Health Care Trend Rate 1,021,023$ 1,274,683$ 1,610,811$
Net OPEB Liability
Town of Nantucket, Massachusetts Page 96 of 157 Comprehensive Annual Financial Report
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year
ended June 30, 2019, the Land Bank recognized OPEB expense of $95,300.
Deferred outflows of resources and deferred inflows of resources related to OPEB at June 30,
2019 were reported as follows:
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense (benefit) as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2018 (as adjusted)1,255,963$ -$ 1,255,963$
Changes for the year:
Service cost 65,128 - 65,128
Interest 42,935 - 42,935
Difference between expected
and actual experience (24,079) - (24,079)
Change in assumptions (65,264) - (65,264)
Net changes 18,720 - 18,720
Balances at June 30, 2019 1,274,683$ -$ 1,274,683$
Deferred Ouflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience -$ 55,941$
Changes of assumptions - 20,639
-$ 76,580$
June 30
2020 (12,763)$
2021 (12,763)
2022 (12,763)
2023 (12,763)
2024 (12,763)
Thereafter (12,765)
(76,580)$
Town of Nantucket, Massachusetts Page 97 of 157 Comprehensive Annual Financial Report
Net OPEB Liability – The components of the net OPEB liability of the Land Bank at June 30,
2019 were as follows:
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, 2019, the amount of the liability
for IBNR health insurance claims totaled $1,129,769. 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.
Changes in the reported liability since July 1, 2017, are as follows:
Balance at
Beginning
of Year
Claims and
Changes in
Estimates
Claims
Payments
Balance at
End of Year
Current
Portion
Fiscal Year 2019 $1,138,217 $15,527,876 $(15,536,324) $1,129,769 $1,129,769
Fiscal Year 2018 1,314,778 13,284,427 (13,460,988) 1,138,217 1,138,217
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, 2019, the amount of the liability for workers’ compensation claims totaled $114,965.
This liability is the best estimate based on available information.
Total OPEB Liability 1,274,683$
Plan fiduciary net position -
Net OPEB liability 1,274,683$
Plan fiduciary net position as
a percentage of the total
OPEB liability 0.0%
Town of Nantucket, Massachusetts Page 98 of 157 Comprehensive Annual Financial Report
Changes in the reported liability since July 1, 2017, are as follows:
Balance at
Beginning
of Year
Claims and
Changes in
Estimates
Claims
Payments
Balance at
End of Year
Current
Portion
Fiscal Year 2019 $ 95,805 $373,414 $(354,254) $ 114,965 $ 114,965
Fiscal Year 2018 44,231 345,947 (294,373) 95,805 95,805
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
has entered 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, 2019, 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, 2019. 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”). 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 landfill consists of six cells.
Three cells are inactive areas without liners that are no longer accepting material for disposal.
Two cells are inactive areas with liners that are also no longer accepting waste. A sixth cell was
constructed under the ACO to meet the Town’s need for capacity for disposal of residuals until
2027. The final capping and closure of the unclosed cells are dependent on a modified design for
the closure will be submitted to the DEP in 2020. The Town has recognized a closure liability of
$14,000,000 in the Governmental Activities. This liability is based on estimates of the cost of all
Town of Nantucket, Massachusetts Page 99 of 157 Comprehensive Annual Financial Report
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 November 2016, the GASB issued GASB Statement No. 83, Certain Asset Retirement
Obligations. The objective of the Statement was to address accounting and financial reporting for
certain asset retirement obligations that have legally enforceable liability associated with the
retirement of a tangible capital asset. The provisions of this Statement became effective in fiscal
year 2019 and did not have a material impact on the Town’s financial statements.
In April 2018, the GASB issued GASB Statement No. 88, Certain Disclosures Related to Debt,
Including Direct Borrowings and Direct Placements. The objective of this Statement was to
improve the information that is disclosed in notes to government financial statements related to
debt, including direct borrowings and direct placements. It also clarified which liabilities
governments should include when disclosing information related to debt. The provisions of this
Statement became effective in fiscal year 2019 and did not have a material impact on the Town’s
financial statements.
Future Implementations –
In January 2017, the GASB issued GASB Statement No. 84, Fiduciary Activities. The objective
of the Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how these activities should be reported. The
provisions of this Statement are effective for financial reporting periods beginning after
December 15, 2018 (fiscal year 2020). The Town is currently evaluating whether adoption will
have a material impact on the financial statements.
In June 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefines the
manner in which long-term leases are accounted and reported. The provisions of this Statement
are effective for financial reporting periods beginning after December 15, 2019 (fiscal year 2021).
The Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In June 2018, the GASB issued GASB Statement No. 89, Accounting for Interest Cost Incurred
Before the End of a Construction Period. This statement establishes accounting requirements for
interest costs incurred before the end of a construction period. The provisions of this Statement
are effective for financial reporting periods beginning after December 15, 2019 (fiscal year 2021).
The Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In August 2018, the GASB issued GASB Statement No. 90, Majority Equity Interest – An
Amendment of GASB Statements No. 14 and No. 61. The objective of this Statement is to
improve the consistency and comparability of reporting a government’s majority equity interest in
a legally separate organization and to improve the relevance of financial statement information
for certain component units. The provisions of this Statement are effective for financial reporting
periods beginning after December 15, 2018 (fiscal year 2020). The Town is currently evaluating
whether adoption will have a material impact on the financial statements.
Town of Nantucket, Massachusetts Page 100 of 157 Comprehensive Annual Financial Report
In May 2019, the GASB issued GASB Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to standardize the reporting of conduit debt obligations by issuers
by clarifying the existing definition of conduit debt obligation, among other matters. The
provisions of this Statement are effective for financial reporting periods beginning after
December 15, 2020 (fiscal year 2022). The Town is currently evaluating whether adoption will
have a material impact on the financial statements.
IV. Prior Period Restatements
As a result of a new actuarial valuation for its other postemployment benefits liability, it wasdetermined that a prior period restatement was required to properly present the net otherpostemployment benefits liability at June 30, 2018.
The Town and the Nantucket Memorial Airport have had an agreement for the Airport to repay
the General Fund for costs that were subsidized a number of years ago. This was not reflected in
prior year financial statements and is required to properly present the obligation at June 30, 2018.
The impact of these items is illustrated in the table below:
Nantucket
Governmental Business-type Siasconset Wannacomet Memorial
Activities Activities Water Water Sewer Airport
Prior year as presented 137,265,735$ 133,514,124$ 7,404,429$ 23,168,554$ 49,629,540$ 52,949,509$
Restate net OPEB liability (3,739,844) (32,187) (1,700) (6,854) (1,276) (22,357)
Record interfund payable 3,348,846 (3,348,846) - - - (3,348,846)
As restated 136,874,737$ 130,133,091$ 7,402,729$ 23,161,700$ 49,628,264$ 49,578,306$
General
Fund
Prior year as presented 39,979,133$
Record interfund payable 3,348,846
As restated 43,327,979$
Town of Nantucket, Massachusetts Page 101 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 102 of 157 Comprehensive Annual Financial Report
Required Supplementary Information
Town of Nantucket, Massachusetts Page 103 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2019
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2019 2018 2017 2016 2015
Town's proportion of the net pension
liability (asset)9.98%9.69%9.90%9.52%9.51%
Town's proportionate share of the net
pension liability (asset)78,855$ 65,965$ 69,566$ 59,964$ 53,675$
Town's covered payroll 29,022$ 27,015$ 27,426$ 25,827$ 24,938$
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 271.71%244.18%253.65%232.18%215.23%
Plan fiduciary net position as a percentage
of the total pension liability 57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE TOWN CONTRIBUTIONS TO PENSION PLAN
2019 2018 2017 2016 2015
Actuarially determined contribution 6,271$ 5,785$ 5,612$ 5,143$ 4,959$
Contributions in relation to the
actuarially determined contribution 6,271 5,785 5,612 5,143 4,959
Contribution deficiency (excess)-$ -$ -$ -$ -$
Town's covered payroll 29,437$ 27,234$ 27,179$ 26,023$ 25,018$
Contributions as a percentage of
covered payroll 21.3%21.2%20.6%19.8%19.8%
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.
Year Ended June 30
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Town of Nantucket, Massachusetts Page 104 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2019
SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2019 2018 2017 2016 2015
County's proportion of the net pension
liability (asset)0.09%0.09%0.09%0.09%0.09%
County's proportionate share of the net
pension liability (asset)684$ 597$ 625$ 551$ 519$
County's covered payroll 257$ 250$ 252$ 243$ 241$
County's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 266.15%238.80%248.02%226.75%215.35%
Plan fiduciary net position as a percentage
of the total pension liability 57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE COUNTY CONTRIBUTIONS TO PENSION PLAN
2019 2018 2017 2016 2015
Actuarially determined contribution 55$ 52$ 50$ 47$ 48$
Contributions in relation to the
actuarially determined contribution 55 52 50 47 48
Contribution deficiency (excess)-$ -$ -$ -$ -$
County's covered payroll 259$ 253$ 251$ 246$ 243$
Contributions as a percentage of
covered payroll 21.2%20.6%19.9%19.1%19.8%
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.
Year Ended June 30
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Town of Nantucket, Massachusetts Page 105 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2019
SCHEDULE OF THE LAND BANK'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2019 2018 2017 2016 2015
Land Bank's proportion of the net pension
liability (asset)0.28%0.25%0.20%0.23%0.26%
Land Bank's proportionate share of the net
pension liability (asset)2,181$ 1,674$ 1,384$ 1,428$ 1,471$
Land Bank's covered payroll 819$ 700$ 557$ 629$ 683$
Land Bank's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 266.30%239.14%248.47%227.03%215.37%
Plan fiduciary net position as a percentage
of the total pension liability 57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE LAND BANK CONTRIBUTIONS TO PENSION PLAN
2019 2018 2017 2016 2015
Actuarially determined contribution 177$ 147$ 112$ 122$ 136$
Contributions in relation to the
actuarially determined contribution 177 147 112 122 136
Contribution deficiency (excess)-$ -$ -$ -$ -$
Land Bank's covered payroll 861$ 728$ 578$ 618$ 667$
Contributions as a percentage of
covered payroll 20.6%20.2%19.4%19.7%20.4%
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.
Year Ended June 30
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Town of Nantucket, Massachusetts Page 106 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2019
2019 2017 2016 2015 2014
Commonwealth's proportion of the
collective net pension liability (asset)100.0%100.0%100.0%100.0%100.0%
Town's proportion of the collective
net pension liability (asset)0.0%0.0%0.0%0.0%0.0%
Commonwealth's proportionate share of
the net pension liability (asset)23,711,289$ 22,885,391$ 22,357,928$ 20,489,643$ 15,896,354$
Commonwealth's actuarially determined
contribution 1,314,783$ 1,235,515$ 1,124,583$ 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)
SCHEDULE OF THE COMMONWEALTH'S COLLECTIVE SHARE OF THE NET PENSION LIABILITY
MASSACHUSETTS TEACHER'S RETIREMENT SYSTEM
Year Ended June 30,
Town of Nantucket, Massachusetts Page 107 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2019
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
2019 2018 2017
Total OPEB liability:
Service cost 4,071,076$ 3,270,431$ 3,915,845$
Interest 4,434,216 3,879,622 4,305,825
Differences between expected and actual experience 5,940,020 (18,207,317) -
Change in assumptions 10,728,558 - -
Benefit payments (3,238,016) (3,195,050) (3,230,121)
Net change in total OPEB liability 21,935,854 (14,252,314) 4,991,549
Total OPEB liability - beginning of year 96,068,245 110,320,559 105,329,010
Total OPEB liability - end of year (a)118,004,099$ 96,068,245$ 110,320,559$
Plan fiduciary net position:
Contributions - employer 3,738,016$ 3,695,050$ 3,730,121$
Net investment income 239,754 (13,267) 62,612
Benefit payments (3,238,016) (3,195,050) (3,230,121)
Net change in Plan fiduciary net position 739,754 486,733 562,612
Plan fiduciary net position - beginning of year 2,390,558 1,903,825 1,341,213
Plan fiduciary net position - end of year (b)3,130,312$ 2,390,558$ 1,903,825$
Net OPEB liability - end of year (a) - (b)114,873,787$ 93,677,687$ 108,416,734$
Plan fiduciary net position as a percentage of the total
OPEB liability 2.65%2.49%1.73%
Covered payroll 36,180,000$ 26,400,000$ 26,950,000$
Net OPEB liability as a percentage of covered-
employee payroll 317.51%354.84%402.29%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
However, until a full 10-year trend is compiled, information is presented for those years
in which information is available.
Note: This schedule is presented using the optional format of combining the required schedules
in paragraph 36a and 36b of GASB 74.
See accompanying independent auditor's report.
Year Ended June 30,
Town of Nantucket, Massachusetts Page 108 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2019
SCHEDULE OF CONTRIBUTIONS
2019 2018 2017
Actuarially-determined contribution 10,458,732$ 9,639,685$ 9,698,176$
Contributions in relation to the actuarially-
determined contribution (3,738,016) (3,695,050) (3,730,121)
Contribution deficiency (excess)6,720,716$ 5,944,635$ 5,968,055$
Covered payroll 36,180,000$ 26,400,000$ 26,950,000$
Contribution as a percentage of covered payroll 10.3%14.0%13.8%
Valuation date July 1, 2018 July 1, 2016 July 1, 2016
Amortization period 30 years 30 years 30 years
Investment rate of return 4.88%5.51%5.74%
Municipal bond rate 2.79%3.45%3.16%
Single equivalent bond rate 4.00%4.00%4.50%
Inflation 2.75%2.75%2.75%
Healthcare cost trend rates 4.50%5.00%5.00%
Salary increases 3.00%3.00%3.00%
Actuarial cost method Individual Entry Age Normal (for all years presented)
Asset valuation method Market Value of Assets as of Reporting Date (for all years presented)
SCHEDULE OF INVESTMENT RETURNS
2019 2018 2017
10.03%-0.47%4.53%
Note: These schedules are presented to illustrate the requirement to show information for 10 years. However, until a
full 10-year trend is compiled, information is presented for those years in which information is available.
See accompanying independent auditor's report.
Annual money-weighted rate of return, net of
investment expense
Year Ended June 30,
Year Ended June 30,
Town of Nantucket, Massachusetts Page 109 of 157 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, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate taxes 77,980,701$ 77,980,701$ 78,133,721$ -$ 78,133,721 153,020
Personal property taxes 1,568,940 1,568,940 1,552,743 - 1,552,743 (16,197)
Tax title - - 260,444 - 260,444 260,444
Motor vehicle excise 2,450,000 2,450,000 3,338,862 - 3,338,862 888,862
Boat excise 32,500 32,500 35,558 - 35,558 3,058
Meals taxes 950,000 950,000 1,168,640 - 1,168,640 218,640
Room occupancy taxes 2,850,000 2,850,000 3,807,930 - 3,807,930 957,930
85,832,141 85,832,141 88,297,898 - 88,297,898 2,465,757
Intergovernmental:
State aid - chapter 70 3,550,359 3,550,359 3,550,359 - 3,550,359 -
State aid - unrestricted 81,923 81,923 81,923 - 81,923 -
State aid - state owned land 164,746 164,746 164,746 - 164,746 -
State aid - other 3,272 3,272 28,300 - 28,300 25,028
3,800,300 3,800,300 3,825,328 - 3,825,328 25,028
Departmental fees, charges, and other:
Payments in lieu of taxes 8,794 8,794 8,067 - 8,067 (727)
Selectmen rentals 335,700 335,700 460,429 - 460,429 124,729
Marina rentals 160,000 160,000 218,482 - 218,482 58,482
Municipal lien certificate fees 28,000 28,000 24,400 - 24,400 (3,600)
Planning office filing and inspection fees 95,000 95,000 101,886 - 101,886 6,886
Police department fees 131,000 131,000 135,458 - 135,458 4,458
Public safety detail charges 60,000 60,000 72,412 - 72,412 12,412
Fire department fees 48,200 48,200 63,994 - 63,994 15,794
Inspection fees 352,500 352,500 417,274 - 417,274 64,774
Conservation fees 22,500 22,500 30,181 - 30,181 7,681
Historic district fees 215,000 215,000 264,465 - 264,465 49,465
Town gas 43,000 43,000 67,272 - 67,272 24,272
Other miscellaneous 659,100 659,100 212,816 - 212,816 (446,284)
2,158,794 2,158,794 2,077,136 - 2,077,136 (81,658)
Licenses and permits:
Liquor licenses 182,500 182,500 227,350 - 227,350 44,850
Building permits 1,100,000 1,100,000 1,176,849 - 1,176,849 76,849
Other licenses and permits 67,500 67,500 283,836 - 283,836 216,336
1,350,000 1,350,000 1,688,035 - 1,688,035 338,035
Fines and forfeitures:
Parking and court fines 215,000 215,000 338,897 - 338,897 123,897
Other fines 10,000 10,000 69,323 - 69,323 59,323
225,000 225,000 408,220 - 408,220 183,220
Penalties and interest on taxes 475,000 475,000 605,321 - 605,321 130,321
Interest and investment income 150,000 150,000 506,869 - 506,869 356,869
Total Revenues 93,991,235 93,991,235 97,408,807 - 97,408,807 3,417,572
Town of Nantucket, Massachusetts Page 110 of 157 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, 2019
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 785,726 874,447 874,447 - 874,447 -
Operating 845,517 1,070,517 593,823 211,132 804,955 265,562
Articles 1,119,346 1,119,346 6,471 1,112,875 1,119,346 -
2,750,589 3,064,310 1,474,741 1,324,007 2,798,748 265,562
Finance Committee:
Operating 18,680 18,680 19,517 - 19,517 (837)
Articles 500,000 500,000 - - - 500,000
518,680 518,680 19,517 - 19,517 499,163
Finance and Operations:
Salary 802,720 802,720 652,988 - 652,988 149,732
Operating 275,924 275,924 196,617 70,588 267,205 8,719
Articles 7,609 17,833 10,224 7,609 17,833 -
1,086,253 1,096,477 859,829 78,197 938,026 158,451
Assessor:
Salary 421,443 421,443 433,540 - 433,540 (12,097)
Operating 315,400 315,400 190,797 39,175 229,972 85,428
736,843 736,843 624,337 39,175 663,512 73,331
Collector:
Salary 313,180 313,180 341,532 - 341,532 (28,352)
Operating 113,587 113,587 81,345 11,292 92,637 20,950
426,767 426,767 422,877 11,292 434,169 (7,402)
Treasurer:
Salary 297,931 297,931 284,058 - 284,058 13,873
Operating 137,300 137,300 30,607 5,000 35,607 101,693
435,231 435,231 314,665 5,000 319,665 115,566
Information Systems/GIS:
Salary 654,760 695,616 695,616 - 695,616 -
Operating 420,530 569,141 480,212 60,083 540,295 28,846
1,075,290 1,264,757 1,175,828 60,083 1,235,911 28,846
Legal:
Operating 401,000 686,000 494,070 158,133 652,203 33,797
401,000 686,000 494,070 158,133 652,203 33,797
Human Resources:
Salary 291,780 291,780 242,220 - 242,220 49,560
Operating 107,804 127,377 109,082 18,587 127,669 (292)
399,584 419,157 351,302 18,587 369,889 49,268
Town Clerk:
Salary 262,320 262,320 226,018 - 226,018 36,302
Operating 83,435 83,435 61,178 4,751 65,929 17,506
345,755 345,755 287,196 4,751 291,947 53,808
(continued)
Town of Nantucket, Massachusetts Page 111 of 157 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, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Nantucket Planning Office:
Salary 951,066 975,401 975,401 - 975,401 -
Operating 256,991 288,987 249,005 10,148 259,153 29,834
1,208,057 1,264,388 1,224,406 10,148 1,234,554 29,834
Public Buildings:
Operating 1,506,186 1,506,186 1,124,791 162,161 1,286,952 219,234
1,506,186 1,506,186 1,124,791 162,161 1,286,952 219,234
Natural Resources:
Salary 565,270 636,577 636,577 - 636,577 -
Operating 188,347 188,347 152,390 20,601 172,991 15,356
753,617 824,924 788,967 20,601 809,568 15,356
Insurances:
Auto casualty 150,000 150,000 45,183 - 45,183 104,817
Blanket liability 1,500,497 1,295,836 1,053,463 - 1,053,463 242,373
Claims deductible 123,200 123,200 33,807 3,986 37,793 85,407
Insurance consulting 60,345 60,345 46,126 12,828 58,954 1,391
1,834,042 1,629,381 1,178,579 16,814 1,195,393 433,988
Total General Government 13,479,574 14,220,536 10,341,283 1,908,949 12,250,232 1,970,304
Public Safety:
Police:
Salary 4,809,340 4,809,340 4,755,498 - 4,755,498 53,842
Operating 840,315 840,316 650,943 119,655 770,598 69,718
5,649,655 5,649,656 5,406,441 119,655 5,526,096 123,560
Centralized Dispatch:
Salary 808,040 980,420 980,420 - 980,420 -
808,040 980,420 980,420 - 980,420 -
Fire:
Salary 2,664,450 2,664,450 2,534,418 - 2,534,418 130,032
Operating 304,679 307,156 237,761 4,961 242,722 64,434
2,969,129 2,971,606 2,772,179 4,961 2,777,140 194,466
Inspectors:
Salary 663,966 771,132 771,132 - 771,132 -
Operating 23,426 23,426 22,326 - 22,326 1,100
687,392 794,558 793,458 - 793,458 1,100
Emergency Management:
Operating 8,000 8,000 3,231 - 3,231 4,769
8,000 8,000 3,231 - 3,231 4,769
Marine:
Salary 766,360 849,624 849,624 - 849,624 -
Operating 115,517 115,517 64,965 2,441 67,406 48,111
Articles 244,590 244,590 228,317 16,211 244,528 62
1,126,467 1,209,731 1,142,906 18,652 1,161,558 48,173
Total Public Safety 11,248,683 11,613,971 11,098,635 143,268 11,241,903 372,068
Town of Nantucket, Massachusetts Page 112 of 157 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, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Education:
Salary and operating 29,157,193 29,157,193 28,730,805 350,810 29,081,615 75,578
Articles 282,005 282,005 74,448 207,557 282,005 -
Total Education 29,439,198 29,439,198 28,805,253 558,367 29,363,620 75,578
Public Works:
Public Works:
Salary 2,589,600 2,589,600 2,510,228 - 2,510,228 79,372
Operating 708,033 708,034 525,330 44,825 570,155 137,879
Articles 45,074 45,074 6,179 38,834 45,013 61
3,342,707 3,342,708 3,041,737 83,659 3,125,396 217,312
Street Lighting:
Operating 165,000 165,000 86,857 7,370 94,227 70,773
165,000 165,000 86,857 7,370 94,227 70,773
Mosquito Control:
Operating 160,381 160,381 125,756 - 125,756 34,625
160,381 160,381 125,756 - 125,756 34,625
Snow and Ice Removal:
Operating 82,600 104,083 60,415 - 60,415 43,668
82,600 104,083 60,415 - 60,415 43,668
Gas/Town Vehicles:
Operating 375,000 375,000 279,235 - 279,235 95,765
375,000 375,000 279,235 - 279,235 95,765
Total Public Works 4,125,688 4,147,172 3,594,000 91,029 3,685,029 462,143
Health and Human Services:
Health:
Salary 276,347 300,599 300,599 - 300,599 -
Operating 107,019 107,019 46,851 26,285 73,136 33,883
383,366 407,618 347,450 26,285 373,735 33,883
Commision on Disability:
Salary 10,317 10,317 5,991 - 5,991 4,326
Operating 1,700 1,700 844 - 844 856
12,017 12,017 6,835 - 6,835 5,182
Senior Services/Council on Aging:
Salary 168,280 179,698 179,698 - 179,698 -
Operating 29,557 29,557 13,636 32 13,668 15,889
197,837 209,255 193,334 32 193,366 15,889
Veterans Services:
Salary 15,460 15,460 4,129 - 4,129 11,331
Operating 17,900 17,900 11,888 - 11,888 6,012
33,360 33,360 16,017 - 16,017 17,343
Human Services:
Salary 77,320 82,139 82,139 - 82,139 -
Operating 15,646 15,646 9,502 195 9,697 5,949
Articles 461,312 486,312 452,125 34,187 486,312 -
554,278 584,097 543,766 34,382 578,148 5,949
Total Health and Human Services 1,180,858 1,246,347 1,107,402 60,699 1,168,101 78,246
(Continued)
Town of Nantucket, Massachusetts Page 113 of 157 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, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Atheneum (Library):
Operating 722,735 722,735 722,735 - 722,735 -
722,735 722,735 722,735 - 722,735 -
Visitor Services:
Salary 292,200 292,200 286,603 - 286,603 5,597
Operating 156,218 156,218 114,227 7,732 121,959 34,259
448,418 448,418 400,830 7,732 408,562 39,856
Town Clock:
Operating 4,738 4,738 1,742 41 1,783 2,955
4,738 4,738 1,742 41 1,783 2,955
Total Culture and Recreation 1,175,891 1,175,891 1,125,307 7,773 1,133,080 42,811
State and County Assessments:
State assessments and charges 69,404 69,404 91,922 - 91,922 (22,518)
Transportation authorities assessments 408,302 408,302 408,302 - 408,302 -
Tuition assessments 18,252 18,252 64,441 - 64,441 (46,189)
County assessments and charges 170,201 170,201 170,201 - 170,201 -
Total State and County Assessments 666,159 666,159 734,866 - 734,866 (68,707)
Pension and Fringe Benefits:
Medical Insurance:
Salary 12,722,552 12,464,556 11,711,229 - 11,711,229 753,327
12,722,552 12,464,556 11,711,229 - 11,711,229 753,327
Unemployment:
Salary 177,880 177,880 82,265 - 82,265 95,615
177,880 177,880 82,265 - 82,265 95,615
Workers' Compensation:
Salary 246,250 246,250 246,250 - 246,250 -
246,250 246,250 246,250 - 246,250 -
Laborer's Union Pension:
Salary 44,880 44,880 60,698 - 60,698 (15,818)
44,880 44,880 60,698 - 60,698 (15,818)
Pension Assessments:
Barnstable Retirement 4,420,540 4,420,540 4,420,538 - 4,420,538 2
4,420,540 4,420,540 4,420,538 - 4,420,538 2
Other Employee Benefits:
Salary 1,100,000 449,997 - - - 449,997
1,100,000 449,997 - - - 449,997
Total Pension and Fringe Benefits 18,712,102 17,804,103 16,520,980 - 16,520,980 1,283,123
Town of Nantucket, Massachusetts Page 114 of 157 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, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Debt Service 7,063,518 7,298,078 7,125,456 - 7,125,456 172,622
Total Expenditures 87,091,671 87,611,455 80,453,182 2,770,085 83,223,267 4,388,188
Other Financing Sources (Uses)
Transfers in 616,300 616,300 616,300 616,300 -
Transfers out (16,300,106) (16,850,106) (16,850,106) (16,850,106) -
Total Other Financing Sources (Uses)(15,683,806) (16,233,806) (16,233,806) (16,233,806)$ -
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (8,784,242) (9,854,026) 721,819$ 7,805,760$
Other Budgetary Items
Use of unassigned fund balance (free cash)5,531,316$ 6,576,100$
Use of excess abatement reserve (overlay surplus)- 25,000
Prior year encumbrances 1,726,604 1,726,604
Prior year articles 1,650,772 1,650,772
Prior year deficits (124,450) (124,450)
Other - -
Total Other Budgetary Items 8,784,242 9,854,026
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 115 of 157 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2019
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
Select Board, 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 2019, Town Meeting approved various supplemental budgetary
appropriations between functions that did not materially increase the total original voted budget. 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, 2019, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis 97,408,807$
Stabilization revenue -$ 352,475$ 352,475
Nursing home revenues - 4,784,063 4,784,063
Landfill revenues - 3,331,490 3,331,490
Change in revenue accruals (169,195) - (169,195)
On behalf payments 5,624,613 -5,624,613
Revenues on a GAAP basis 5,455,418$ 8,468,028$ 111,332,253$
Expenditures on a budgetary basis 80,453,182$
Reclass indirect transfers against expenditures (409,000)$ -$ (409,000)
Nursing home expenditures - 7,442,888 7,442,888
Landfill expenditures - 9,385,413 9,385,413
Change in expenditure accruals 45,064 - 45,064
Bond issuance costs 95,742 - 95,742
On behalf payments 5,624,613 -5,624,613
Reclass transfers to private purpose fund - 300,000 300,000
Expenditures on a GAAP basis 5,356,419$ 17,128,301$ 102,937,902$
Town of Nantucket, Massachusetts Page 116 of 157 Comprehensive Annual Financial Report
Excess of Expenditures Over Appropriations – During the fiscal year ended, the Town overspent its
appropriation for state and county assessments by $68,707 which was funded from available revenues.
Basis of
Accounting Fund Perspective
Differences Differences Total
Other financing (uses) on a budgetary basis (16,233,806)$
Reclass indirect transfers against expenditures (409,000)$ -$ (409,000)
Premiums from bonds and notes 95,742 - 95,742
Nursing home transfers - 1,419,146 1,419,146
Landfill transfers - 5,999,524 5,999,524
Reclass transfers to private purpose fund - 300,000 300,000
Other financing (uses) on a GAAP basis (313,258)$ 7,718,670$ (8,828,394)$
Town of Nantucket, Massachusetts Page 117 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 118 of 157 Comprehensive Annual Financial Report
Combining Statements
Town of Nantucket, Massachusetts Page 119 of 157 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 120 of 157 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 121 of 157 Comprehensive Annual Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Assets:
Cash and cash equivalents 125,929$ 139,085$ 230,950$ 114,098$ 1,289,375$
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Departmental and other - - - - -
Intergovernmental - - 92,726 44,290 1,876,000
Total Assets 125,929 139,085 323,676 158,388 3,165,375
Total Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources 125,929$ 139,085$ 323,676$ 158,388$ 3,165,375$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable 81,168$ 13,747$ -$ 14,597$ 16,696$
Accrued payroll and withholdings - 6,830 1,963 5,670 -
Other liabilities - - - - -
Due to other funds - - - - -
Bond anticipation notes payable - - - - 3,000,000
Total Liabilities 81,168 20,577 1,963 20,267 3,016,696
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - - -
Unavailable revenue - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 44,761 118,508 321,713 138,121 1,029,949
Unassigned - - - - (881,270)
Total Fund Balances 44,761 118,508 321,713 138,121 148,679
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 125,929$ 139,085$ 323,676$ 158,388$ 3,165,375$
JUNE 30, 2019
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Town of Nantucket, Massachusetts Page 122 of 157 Comprehensive Annual Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
4,871,024$ -$ 1,479,087$ 7,444,574$ 2,038,261$ 1,051,409$ 18,783,792$
- - - - - - -
192,817 - - - - - 192,817
- - - 523,365 - - 523,365
- 651,154 - - - - 2,664,170
5,063,841 651,154 1,479,087 7,967,939 2,038,261 1,051,409 22,164,144
- - - - - - -
5,063,841$ 651,154$ 1,479,087$ 7,967,939$ 2,038,261$ 1,051,409$ 22,164,144$
37,936$ -$ 12,686$ 39,471$ -$ 2,272$ 218,573$
3,130 - 38,028 74,899 - - 130,520
1,116 - 231,430 58,333 - - 290,879
- 651,154 - - - - 651,154
- -- - - - 3,000,000
42,182 651,154 282,144 172,703 - 2,272 4,291,126
192,817 - - - - - 192,817
- - - 523,365 - - 523,365
192,817 - - 523,365 - - 716,182
- - - - - - -
4,828,842 - 1,196,943 7,271,871 2,038,261 1,049,137 18,038,106
- - - - - - (881,270)
4,828,842 - 1,196,943 7,271,871 2,038,261 1,049,137 17,156,836
5,063,841$ 651,154$ 1,479,087$ 7,967,939$ 2,038,261$ 1,051,409$ 22,164,144$
Town of Nantucket, Massachusetts Page 123 of 157 Comprehensive Annual Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2019
Permanent Funds Total
Cemetery Other Sub-total Nonmajor
Trust Trust Permanent Governmental
Funds Funds Funds Funds
Assets:
Cash and cash equivalents -$ -$ -$ 18,783,792$
Investments 44,965 152,850 197,815 197,815
Receivables, net of allowance for uncollectibles:
Property taxes - - - 192,817
Departmental and other - - - 523,365
Intergovernmental - - - 2,664,170
Total Assets 44,965 152,850 197,815 22,361,959
Total Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources 44,965$ 152,850$ 197,815$ 22,361,959$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable -$ -$ -$ 218,573$
Accrued payroll and withholdings - - - 130,520
Other liabilities - - - 290,879
Due to other funds - - - 651,154
Bond anticipation notes payable - - - 3,000,000
Total Liabilities - - - 4,291,126
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - 192,817
Unavailable revenue - other - - - 523,365
Total Deferred Inflows of Resources - - - 716,182
Fund Balances:
Nonspendable 44,305 660 44,965 44,965
Restricted 134,302 18,548 152,850 18,190,956
Unassigned - - - (881,270)
Total Fund Balances 178,607 19,208 197,815 17,354,651
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 178,607$ 19,208$ 197,815$ 22,361,959$
(Concluded)
Town of Nantucket, Massachusetts Page 124 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 125 of 157 Comprehensive Annual Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Revenues:
Intergovernmental 303,909$ 613,478$ 478,155$ 317,619$ 1,005,647$
Motor vehicle and other excises - - - - -
Community preservation surcharges - - - - -
Investment income 2,981 - - 61 -
Departmental and other revenue 386,444 - - - 69,238
Contributions and donations - - - - -
Total Revenues 693,334 613,478 478,155 317,680 1,074,885
Expenditures:
Current:
General government - - - 258,544 63,550
Public safety - - - 21,749 540,612
Education 714,910 622,172 482,002 - -
Public works - - - 2,596 -
Health and human services - - - - 627,555
Culture and recreation - - - - 17,291
Debt service:
Principal - - - - 324,902
Interest - - - - 96
Total Expenditures 714,910 622,172 482,002 282,889 1,574,006
Excess (Deficiency) Of Revenues
Over (Under) Expenditures (21,576) (8,694) (3,847) 34,791 (499,121)
Other Financing Sources (Uses):
Issuance of bonds and notes - - - - -
Premium from bonds and notes - - - - -
Sale of capital assets - - - - -
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources (Uses)- - - - -
Net Change in Fund Balances (21,576) (8,694) (3,847) 34,791 (499,121)
Fund Balances - Beginning of Year 66,337 127,202 325,560 103,330 647,800
Fund Balances - End of Year 44,761$ 118,508$ 321,713$ 138,121$ 148,679$
Special Revenue Funds
FISCAL YEAR ENDED JUNE 30, 2019
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 126 of 157 Comprehensive Annual Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
450,558$ 651,154$ -$ 311,721$ -$ -$ 4,132,241$
- - - 35,923 - - 35,923
2,240,059 - - - - - 2,240,059
29,551 - - 1,775 - - 34,368
11,256 - 1,340,920 3,177,718 - - 4,985,576
- - - - - 645,123 645,123
2,731,424 651,154 1,340,920 3,527,137 - 645,123 12,073,290
- - - 459,253 4,475 222,303 1,008,125
- - - 1,471,601 - 92,912 2,126,874
- - 1,793,106 - - 150,955 3,763,145
- 651,154 - 15,131 - - 668,881
- - - 96,252 - 20,000 743,807
2,074,974 - - 114,878 - 229 2,207,372
110,000 - - - - - 434,902
18,833 - - - - - 18,929
2,203,807 651,154 1,793,106 2,157,115 4,475 486,399 10,972,035
527,617 - (452,186) 1,370,022 (4,475) 158,724 1,101,255
464,500 - - - - - 464,500
22,239 - - - - - 22,239
- - - - 1,635,924 - 1,635,924
- - 700,000 - - - 700,000
- - - (22,416) - - (22,416)
486,739 - 700,000 (22,416) 1,635,924 - 2,800,247
1,014,356 - 247,814 1,347,606 1,631,449 158,724 3,901,502
3,814,486 - 1,199,129 5,674,265 406,812 890,413 13,255,334
4,828,842$ -$ 1,446,943$ 7,021,871$ 2,038,261$ 1,049,137$ 17,156,836$
(Continued)
Town of Nantucket, Massachusetts Page 127 of 157 Comprehensive Annual Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2019
Permanent Funds Total
Cemetery Other Sub-total Nonmajor
Trust Trust Permanent Governmental
Funds Funds Funds Funds
Revenues:
Intergovernmental -$ -$ -$ 4,132,241$
Motor vehicle and other excises - - - 35,923
Community preservation surcharges - - - 2,240,059
Investment income 8,309 1,018 9,327 43,695
Departmental and other revenue 16,200 - 16,200 5,001,776
Contributions and donations - - - 645,123
Total Revenues 24,509 1,018 25,527 12,098,817
Expenditures:
Current:
General government - - - 1,008,125
Public safety - - - 2,126,874
Education - - - 3,763,145
Public works 2,500 - 2,500 671,381
Health and human services - - - 743,807
Culture and recreation - - - 2,207,372
Debt service:
Principal - - - 434,902
Interest - - - 18,929
Total Expenditures 2,500 - 2,500 10,974,535
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 22,009 1,018 23,027 1,124,282
Other Financing Sources (Uses):
Issuance of bonds and notes - - - 464,500
Premium from bonds and notes - - - 22,239
Sale of capital assets - - - 1,635,924
Transfers in - - - 700,000
Transfers out - - - (22,416)
Total Other Financing Sources (Uses)- - - 2,800,247
Net Change in Fund Balances 22,009 1,018 23,027 3,924,529
Fund Balances - Beginning of Year 156,598 18,190 174,788 13,430,122
Fund Balances - End of Year 178,607$ 19,208$ 197,815$ 17,354,651$
(Concluded)
Town of Nantucket, Massachusetts Page 128 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 129 of 157 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 130 of 157 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2019
Total
Health Workers'Internal
Claims Compensation Service Funds
Assets:
Current assets:
Cash and cash equivalents 4,811,575$ 78,736$ 4,890,311$
Investments - 258,291 258,291
Reinsured claims receivable 442,792 - 442,792
Prepaid items 1,206,380 - 1,206,380
Total Assets 6,460,747 337,027 6,797,774
Total Deferred Outflows of Resources - - -
Total Assets and Deferred Outflows of Resources 6,460,747 337,027 6,797,774
Liabilities:
Current liabilities:
Warrants and accounts payable 81,317$ 22,019$ 103,336$
Health claims incurred but not reported 1,129,769 - 1,129,769
Workers' compensation claims - 114,965 114,965
Total Current Liabilities 1,211,086 136,984 1,348,070
Total Deferred Inflows of Resources - - -
Total Liabilities and Deferred Inflows of Resources 1,211,086 136,984 1,348,070
Net Position:
Unrestricted 5,249,661 200,043 5,449,704
TOTAL NET POSITION 5,249,661$ 200,043$ 5,449,704$
Town of Nantucket, Massachusetts Page 131 of 157 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2019
Total
Health Workers'Internal Service
Claims Compensation Funds
Operating Revenues:
Employee contributions 2,242,738$ -$ 2,242,738$
Employer contributions 13,817,385 416,972 14,234,357
Reinsured claims proceeds 1,706,947 - 1,706,947
Total Operating Revenues 17,767,070 416,972 18,184,042
Operating Expenditures:
Employee benefits 16,639,688 373,414 17,013,102
Operating Income (loss)1,127,382 43,558 1,170,940
Nonoperating Revenues:
Investment income - 13,711 13,711
Income (loss) Before Transfers 1,127,382 57,269 1,184,651
Change in Net Position 1,127,382 57,269 1,184,651
Fund Balances - Beginning of Year 4,122,279 142,774 4,265,053
Fund Balances - End of Year 5,249,661$ 200,043$ 5,449,704$
Town of Nantucket, Massachusetts Page 132 of 157 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2019
Total
Health Workers'Internal Service
Claims Compensation Funds
Cash Flows From Operating Activities:
Receipts from employees 2,242,738$ -$ 2,242,738$
Receipts from employer 13,817,385 416,972 14,234,357
Receipts from reinsured claims 1,457,567 - 1,457,567
Payments for interfund services used (16,441,232) (338,284) (16,779,516)
Net Cash Provided by (Used in) Operating Activities 1,076,458 78,688 1,155,146
Cash Flows From Investing Activities:
Investment income - 13,711 13,711
Investment of operating cash - (13,721) (13,721)
Net Cash Provided by (Used in) Investing Activities - (10) (10)
Net Change in Cash and Cash Equivalents 1,076,458 78,678 1,155,136
Cash and Cash Equivalents:
Beginning of the Year 3,735,117 58 3,735,175
End of the Year 4,811,575$ 78,736$ 4,890,311$
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss)1,127,382$ 43,558$ 1,170,940$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables (249,380) - (249,380)
Prepaid items 197,147 - 197,147
Accounts payable and accrued expenses 9,757 15,970 25,727
Accrued benefits payable (8,448) 19,160 10,712
Net Cash Provided by (Used in) Operating Activities 1,076,458$ 78,688$ 1,155,146$
Town of Nantucket, Massachusetts Page 133 of 157 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 134 of 157 Comprehensive Annual Financial Report
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2019
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents 1,316,729$ 1,582,325$ (1,403,418)$ 1,495,636$
Receivables, net of allowance 83,385 965,517 (947,711) 101,191
Total Assets 1,400,114$ 2,547,842$ (2,351,129)$ 1,596,827$
Liabilities
Current liabilities:
Warrants and accounts payable 37,000$ 594,258$ (543,705)$ 87,553$
Accrued payroll and withholdings 32,933 40,400 (32,933) 40,400
Agency liabilities 402,206 1,013,538 (887,075) 528,669
Planning board deposits 927,975 148,167 (135,937) 940,205
Total Liabilities 1,400,114$ 1,796,363$ (1,599,650)$ 1,596,827$
Town of Nantucket, Massachusetts Page 135 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 136 of 157 Comprehensive Annual Financial Report
STATISTICAL SECTION
The Hadwen House is a Greek Revival mansion built at the peak of Nantucket’s prosperity as the whaling
capital of the world in 1846. Whaling merchant and silver retailer, William Hadwen, was responsible for
its’ construction. The home is one of the most elaborate examples of Greek revival architecture on the
Island; and the only publicly accessible mansion of its age in the area.
Photo Credit: William DeSousa-Mauk
Town of Nantucket, Massachusetts Page 137 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 138 of 157 Comprehensive Annual Financial Report
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 139 of 157 Comprehensive Annual Financial Report
LAST TEN FISCAL YEARS
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Governmental activities:
Invested in capital assets……….…………………. 171,102,098$ 177,625,537$ 180,988,633$ 179,338,227$ 175,687,378$ 181,710,594$ 186,717,700$ 203,168,454$ 222,919,137$ 229,696,540$
Restricted………………………………………………………………………….. 13,294,995 3,150,056 2,459,409 15,818,386 20,511,155 20,995,512 27,381,162 23,523,901 24,663,139 18,070,833
Unrestricted……………………………………………………………… (7,324,139) 2,459,785 1,293,781 (1,831,770) 1,501,847 (36,480,970) (45,200,433) (59,910,475) (110,316,541) (111,963,882)
Total governmental activities net position……………………………………….. 177,072,954$ 183,235,378$ 184,741,823$ 193,324,843$ 197,700,380$ 166,225,136$ 168,898,429$ 166,781,880$ 137,265,735$ 135,803,491$
Business-type activities:
Invested in capital assets……….…………………. 114,762,981$ 119,408,316$ 118,502,610$ 116,596,172$ 112,541,419$ 119,242,898$ 120,659,914$ 105,477,803$ 121,715,832$ 126,071,273$
Restricted……………………………...…………………..… - - - - - - - - - -
Unrestricted………………………………………………………………. 7,264,425 3,199,868 9,865,892 11,287,299 15,914,047 (1,523,044) 6,361,265 25,927,826 11,798,292 6,668,726
Total business-type activities net position……………………………. 122,027,406$ 122,608,184$ 128,368,502$ 127,883,471$ 128,455,466$ 117,719,854$ 127,021,179$ 131,405,629$ 133,514,124$ 132,739,999$
Primary government:
Invested in capital assets……….…………………. 285,865,079$ 297,033,853$ 299,491,243$ 295,934,399$ 288,228,797$ 300,953,492$ 307,377,614$ 308,646,257$ 344,634,969$ 355,767,813$
Restricted………………………………………………………………………. 13,294,995 3,150,056 2,459,409 15,818,386 20,511,155 20,995,512 27,381,162 23,523,901 24,663,139 18,070,833
Unrestricted…………………………………………………………… (59,714) 5,659,653 11,159,673 9,455,529 17,415,894 (38,004,014) (38,839,168) (33,982,649) (98,518,249) (105,295,156)
Total primary government net position…………………………………………………. 299,100,360$ 305,843,562$ 313,110,325$ 321,208,314$ 326,155,846$ 283,944,990$ 295,919,608$ 298,187,509$ 270,779,859$ 268,543,490$
NET POSITION BY COMPONENT
Town of Nantucket, Massachusetts Page 140 of 157 Comprehensive Annual Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Expenses -
Governmental activities:
General government…...……………………………………………………10,319,800$ 10,940,662$ 10,015,072$ 9,765,641$ 10,068,331$ 11,574,757$ 13,375,694$ 15,652,032$ 13,660,766$ 15,765,219$
Public safety…..………………………………………………………………14,684,244 12,172,241 13,601,442 14,042,554 14,779,274 15,484,735 17,211,310 17,548,899 19,236,351 22,887,964
Education……..………………………………………………………………….30,380,350 28,867,553 29,011,944 35,190,752 36,829,209 38,839,302 40,296,659 46,524,011 47,854,776 52,485,059
Public works……...……………………………………………………………….4,514,082 4,082,163 4,692,304 4,171,361 4,862,640 5,131,842 5,404,039 20,248,200 19,697,228 20,574,322
Health and human services………………………………………………………9,714,459 2,765,497 3,741,941 2,301,279 1,641,325 1,528,171 1,544,941 7,705,797 7,817,065 8,194,864
Culture and recreation………...……………………………………………………..3,392,381 2,119,755 2,170,903 2,327,315 5,622,457 5,397,098 4,646,084 4,770,808 4,034,143 3,867,395
Interest expense……………………………………………………………………2,351,987 2,354,427 2,082,337 2,368,538 2,075,324 1,616,600 1,478,749 2,147,432 2,486,810 3,004,920
Total government activities expenses……………………………………………….75,357,303 63,302,298 65,315,943 70,167,440 75,878,560 79,572,505 83,957,476 114,597,179 114,787,139 126,779,743
Business-type activities:
Siasconset Water……………………………………………………………………602,507 719,668 682,682 712,820 724,927 738,719 811,237 749,495 617,825 692,972
Wannacomet Water……………………………………………………………………3,582,097 3,570,999 3,674,493 3,785,742 3,624,731 3,544,191 4,088,800 4,345,647 4,428,396 4,856,369
Sewer……………………………………………………………………5,491,001 5,613,007 5,760,776 6,149,616 6,002,582 6,255,624 6,338,700 6,110,762 7,912,679 7,463,953
Solid waste……………………………………………………………………8,114,794 8,679,984 8,851,378 11,302,336 8,963,029 10,324,817 11,587,152 - - -
Nantucket Memorial Airport……………………………………………………………………13,541,915 13,158,406 15,331,231 14,523,220 15,592,198 15,096,177 14,287,119 15,087,914 15,379,560 16,842,531
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……………………………………..31,332,314 40,550,718 41,224,276 43,553,410 42,577,981 43,905,487 45,471,358 26,293,818 28,338,460 29,855,825
Total primary government expenses……………………………………….106,689,617$ 103,853,016$ 106,540,219$ 113,720,850$ 118,456,541$ 123,477,992$ 129,428,834$ 140,890,997$ 143,125,599$ 156,635,568$
Program Revenues -
Governmental activities:
Charges for services:
General government…………………………………………………General government…...……………………………………………………1,358,150$ 426,552$ 741,512$ 622,049$ 917,730$ 771,006$ 1,121,165$ 1,215,294$ 1,414,603$ 1,542,176$
Public safety………………………………………………………………..Public safety…..………………………………………………………………1,418,330 1,362,466 1,668,420 2,771,517 3,213,998 3,203,714 3,703,493 4,145,232 4,006,734 4,206,210
Education……………………………………………………………….Education……..………………………………………………………………….498,985 501,915 780,977 1,488,121 1,490,713 1,433,969 1,500,573 1,817,891 1,710,119 1,728,718
Public works……………………………………………………………….Public works……...……………………………………………………………….55,092 59,430 276,502 300,317 340,272 376,600 278,408 3,505,449 3,469,380 3,458,221
Health and human services………………………………………………………3,661,973 35,445 82,788 132,655 188,221 190,627 227,273 5,977,366 5,246,151 5,145,194
Culture and recreation………...……………………………………………………..289,279 325,010 522,063 248,089 295,416 346,626 329,022 433,829 455,763 404,014
Operating grants and contributions……………………………………5,090,233 3,989,493 2,131,096 6,022,440 6,230,362 6,761,994 9,241,317 10,995,900 11,348,091 12,857,189
Capital grants and contributions…………………………………………..1,230,625 1,067,782 1,030,215 1,874,830 289,066 1,886,943 1,881,938 508,050 14,502,773 2,571,891
Total government activities program revenues...……………………………..13,602,667 7,768,093 7,233,573 13,460,018 12,965,778 14,971,479 18,283,189 28,599,011 42,153,614 31,913,613
Business-type activities:
Charges for services……………….………………………………….24,820,469 27,568,533 32,847,185 31,799,794 33,592,609 33,738,945 39,612,392 27,063,403 28,655,420 30,055,443
Operating grants and contributions……………………………………776,060 1,287,762 746,499 85,992 91,000 90,820 133,570 70,458 123,647 133,619
Capital grants and contributions…………………………………………..7,057,702 3,307,275 2,146,931 1,989,292 2,479,717 6,078,185 3,175,470 2,680,075 3,186,264 2,111,745
Total business-type activities program revenues……………………………………..32,654,231 32,163,570 35,740,615 33,875,078 36,163,326 39,907,950 42,921,432 29,813,936 31,965,331 32,300,807
Total primary government program revenues……………………………………….46,256,898$ 39,931,663$ 42,974,188$ 47,335,096$ 49,129,104$ 54,879,429$ 61,204,621$ 58,412,947$ 74,118,945$ 64,214,420$
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..(61,754,636)$ (55,534,205)$ (58,082,370)$ (56,707,422)$ (62,912,782)$ (64,601,026)$ (65,674,287)$ (85,998,168)$ (72,633,525)$ (94,866,130)$
Business-type activities……………………....……………………………..1,321,917 (8,387,148) (5,483,661) (9,678,332) (6,414,655) (3,997,537) (2,549,926) 3,520,118 3,626,871 2,444,982
Total primary government net (expense)/program revenue……………………………………….(60,432,719)$ (63,921,353)$ (63,566,031)$ (66,385,754)$ (69,327,437)$ (68,598,563)$ (68,224,213)$ (82,478,050)$ (69,006,654)$ (92,421,148)$
Note: Beginning in 2017, Our Island Home and Solid Waste business-type activities have been reported as governmental activities; fiscal year 2010 - 2016 were not restated to reflect this.(continued)
Town of Nantucket, Massachusetts Page 141 of 157 Comprehensive Annual Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Revenues and other Changes in Net Position -
Governmental activities:
Real estate and personal property taxes,
net of tax refunds payable…………………………………………………. 60,956,838$ 61,948,050$ 61,863,287$ 63,594,267$ 64,160,459$ 65,895,498$ 68,978,062$ 74,061,321$ 77,739,238$ 79,997,125$
Motor vehicle and other excise taxes…………………………………………………… 1,852,563 1,867,286 2,066,878 2,338,423 2,314,472 2,607,277 2,801,463 2,949,704 3,154,909 3,212,027
Hotel and meals excise……………………………………………..1,035,291 2,726,360 2,745,571 3,092,446 3,558,082 4,026,389 4,486,662 4,535,824 4,743,787 5,005,958
Penalties and interest on taxes………………………………………………………………659,062 633,008 687,221 677,906 598,411 882,916 657,303 687,316 584,164 605,321
Community Preservation Fund surcharges………………………………………………………………1,669,975 1,666,540 1,724,556 1,745,927 1,782,598 1,835,287 1,944,202 2,088,375 2,190,884 2,254,544
Grants and contributions not restricted to specific programs………………………………………………………………587,474 935,761 307,901 737,402 278,049 186,666 179,523 190,963 193,824 246,669
Unrestricted investment income……………………………………………. 160,970 65,960 173,698 66,235 159,229 257,230 389,334 231,448 284,739 937,170
Gain on sale of capital assets……………………………………………. 1,143,075 73,530 813,011 736,256 1,379,639 2,430,079 - - 201,248 1,536,070
Land fill revenue sharing……………………………………………………………… - - - - - - - - - -
Unrealized loss on investments………………………………………………………………- - - - - - - - - -
Other revenue………………………………………………………………789,238 748,060 438,678 604,871 - - - - - -
Transfers………………………………………………………………(3,534,310) (8,967,926) (11,231,986) (8,303,291) (6,942,620) (7,881,295) (8,659,384) - 285,264 -
Total governmental activities………………………………………………………………… 65,320,176 61,696,629 59,588,815 65,290,442 67,288,319 70,240,047 70,777,165 84,744,951 89,378,057 93,794,884
Business-type activities:
Unrestricted investment income……………………………………………………………… - - 11,993 55,748 44,030 32,935 62,084 71,855 95,529 161,926
Gain on sale of capital assets……………………………………….- - - - - 829,212 - - - -
Transfers………………………………………………………………3,534,310 8,967,926 11,231,986 8,303,291 6,942,620 7,881,295 8,659,384 - (285,264) -
Total business-type activities….………..…………………………………..3,534,310 8,967,926 11,243,979 8,359,039 6,986,650 8,743,442 8,721,468 71,855 (189,735) 161,926
Total primary government general revenues and other
changes in net position………………………………………………….68,854,486$ 70,664,555$ 70,832,794$ 73,649,481$ 74,274,969$ 78,983,489$ 79,498,633$ 84,816,806$ 89,188,322$ 93,956,810$
Changes in Net Position
Governmental activities……………………....……………………………..9,785,971$ 3,614,259$ 2,881,393$ 2,377,660$ 2,687,293$ 4,565,760$ (15,221,003)$ 12,111,426$ (5,488,073)$ (1,071,246)$
Business-type activities……………………....……………………………..(4,852,838) 3,484,265 1,565,647 1,944,384 2,989,113 6,193,516 12,241,586 3,698,726 2,255,247 2,606,908
Total primary government changes in net position………………………………………. 4,933,133$ 7,098,524$ 4,447,040$ 4,322,044$ 5,676,406$ 10,759,276$ (2,979,417)$ 15,810,152$ (3,232,826)$ 1,535,662$
(concluded)
Town of Nantucket, Massachusetts Page 142 of 157 Comprehensive Annual Financial Report
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Fund:
Nonspendable………………………………. -$ -$ -$ -$ -$ 11,406$ -$ -$ -$ 3,113,226$
Restricted………………………………. 250,000 - 1,485,147 1,577,323 650,518 488,344 414,514 346,780 285,872 231,468
Committed…………………………….. 2,471,550 2,136,060 1,941,738 2,114,218 8,061,318 4,013,474 2,267,807 13,140,419 10,884,444 9,245,767
Assigned…………………………….. 3,136,435 4,488,570 2,182,323 5,146,635 2,047,757 6,323,207 3,028,651 7,295,378 7,257,920 7,539,217
Unassigned…………………………… 11,047,142 12,186,769 14,373,770 13,881,601 14,745,606 15,470,669 17,571,873 17,942,453 21,550,897 22,764,258
Total general fund…………………………….. 16,905,127$ 18,811,399$ 19,982,978$ 22,719,777$ 25,505,199$ 26,307,100$ 23,282,845$ 38,725,030$ 39,979,133$ 42,893,936$
All Other Governmental Funds:
Nonspendable……………………………….308,153$ 288,280$ 44,305$ 44,305$ 114,762$ 44,805$ 44,805$ 44,805$ 44,805$ 44,965$
Restricted………………………………. 19,427,291 16,039,900 18,987,991 17,267,229 18,709,640 20,950,707 27,086,357 23,331,672 24,282,474 31,414,635
Unassigned…………………………… - (138,806) (104,106) - - (1,109,351) (17,737,453) (9,779,936) (5,012,857) (3,451,045)
Total all other governmental funds…………….. 19,735,444$ 16,189,374$ 18,928,190$ 17,311,534$ 18,824,402$ 19,886,161$ 9,393,709$ 13,596,541$ 19,314,422$ 28,008,555$
Note: The Town implemented GASB 54 in fiscal year 2011. Fiscal year 2010 data presented were restated to conform to GASB 54 presentation.
Note: The Town consolidated Our Island Home and Solid Waste activities into the General Fund in fiscal year 2017; none of the previous years were restated for this change.
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 143 of 157 Comprehensive Annual Financial Report
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Revenues:
Real estate and personal property taxes,
net of tax refunds……………………………………………………. 59,769,412$ 62,486,485$ 62,120,715$ 63,517,709$ 63,434,664$ 66,805,456$ 69,040,526$ 73,938,122$ 78,224,629$ 79,748,325$
Motor vehicle and boat excise………………………………………… 1,757,392 2,090,373 1,986,900 1,913,789 2,512,609 2,592,035 2,747,276 2,823,655 3,026,951 3,410,343
Hotel and meals excise………………………………………………. 1,035,291 2,726,360 2,745,571 3,092,446 3,558,082 4,026,389 4,486,662 4,535,824 4,743,787 5,005,958
User charges………………………………………………. - - - - - - - 9,229,547 8,345,708 8,093,931
Departmental and other……………………………………….. 7,834,515 4,032,108 6,414,807 4,910,252 4,641,243 4,606,897 5,218,934 5,844,352 5,912,072 7,079,014
Communities Preservation surcharges……………………………………… 1,669,975 1,666,540 1,724,556 1,739,157 1,773,519 1,844,628 1,930,955 2,072,835 2,188,658 2,240,059
Penalties and interest on taxes………………………………………………………..659,062 633,008 687,221 677,906 598,411 882,916 657,303 687,316 584,164 605,321
Licenses and permits………………………………………………………..932,004 1,015,424 1,058,052 1,075,074 1,405,911 1,455,080 1,712,506 1,698,765 1,613,059 1,688,035
Fines and forfeitures…………………………………………………………….248,231 254,285 223,054 208,503 296,917 283,179 269,441 334,451 367,483 408,220
Intergovernmental………………………………………………………..6,946,282 7,131,244 7,280,969 7,148,723 8,119,346 8,728,025 10,894,441 11,007,339 25,667,485 13,582,182
Contributions………………………………………………………..83,320 1,249,415 - 258,425 372,331 107,578 408,337 687,574 377,203 1,046,223
Investment income……………………………………………………….. 278,439 159,602 164,936 63,751 147,521 252,185 375,220 228,864 286,452 923,459
Total Revenue………………………………………………… 81,213,923 83,444,844 84,406,781 84,605,735 86,860,554 91,584,368 97,741,601 113,088,644 131,337,651 123,831,070
Expenditures:
General government……………………………………………………………. 5,837,165 6,209,441 7,179,875 7,114,409 7,596,379 8,658,027 8,946,404 8,960,868 10,155,695 11,448,203
Public safety……………………………………………………………… 10,513,956 10,437,125 10,041,235 9,018,372 9,284,157 9,444,096 10,698,049 10,711,350 11,981,461 13,524,480
Education………………………………………………………………… 23,175,994 23,764,115 23,829,685 23,139,532 24,585,011 25,775,358 25,329,925 29,017,484 30,442,447 32,773,059
Public works…………………………………………………………….. 2,323,502 2,406,506 2,582,349 2,242,399 2,700,144 2,977,129 2,981,431 11,974,875 14,356,435 14,371,492
Health and human services………………………………………………… 5,845,124 889,848 1,305,274 1,899,449 1,236,079 1,080,864 1,051,897 6,830,966 7,134,552 7,311,155
Culture and recreation……………………………………………….. 2,312,808 2,037,840 1,492,926 1,842,298 5,083,442 4,875,189 4,128,951 4,335,613 3,722,357 3,394,866
Pension and fringe benefits………………………………………………………… 12,698,735 11,662,320 11,479,906 14,831,570 15,661,255 16,212,172 18,393,297 23,325,610 23,225,437 24,274,664
State and county charges………………………………………… 458,657 461,358 531,772 546,250 566,814 574,275 591,536 606,206 632,692 734,866
Capital outlay and other………………………………………………………………. 16,296,496 8,912,763 5,047,157 7,481,872 5,202,852 8,504,352 26,106,919 37,467,736 27,044,203 19,565,622
Debt service:
Principal……………………………………………………………… 7,778,503 7,558,823 6,657,855 5,496,332 5,405,944 5,478,306 5,511,741 5,785,385 5,651,238 4,694,769
Interest……………………………………………………………………. 2,501,019 2,401,588 2,171,097 2,260,152 2,186,325 1,746,458 1,550,529 1,599,106 3,131,571 2,936,359
Total Expenditures……………………………………………………….. 89,741,959 76,741,727 72,319,131 75,872,635 79,508,402 85,326,226 105,290,679 140,615,199 137,478,088 135,029,535
Excess of revenues over (under) expenditures………………………………………………… (8,528,036) 6,703,117 12,087,650 8,733,100 7,352,152 6,258,142 (7,549,078) (27,526,555) (6,140,437) (11,198,465)
Other Financing Sources (Uses):
Issuances from bonds and notes………………...………………………………………… 13,070,000 - 3,200,000 478,449 - 993,000 1,188,709 35,735,550 11,730,000 16,804,000
Issuances from refunding bonds………………...…………………………………………- - 1,329,900 8,685,000 - 758,200 3,935,000 3,515,450 - -
Premiums from debt issuances………………………….279,138 - 212,513 808,509 - 51,600 123,130 1,700,430 895,909 1,018,631
Payments to refunded bond escrow agent………………………….- - (1,519,037) (9,505,125) - (790,820) (3,995,000) (3,976,820) - -
Sale of capital assets………………………………………………… 1,143,075 73,530 - 865,210 3,888,758 2,474,833 1,439,916 208,199 201,248 1,635,924
Transfers in……………………………………………………………………………… 4,008,898 1,554,704 1,008,975 919,323 2,101,972 1,631,000 15,779,728 2,448,154 9,294,704 8,946,552
Transfers out…………………………………………………………………………… (7,543,208) (9,971,149) (12,409,606) (9,864,323) (9,044,592) (9,512,295) (24,439,112) (2,448,154) (9,009,440) (8,946,552)
Total other financing sources (uses)………………………………………………………………….. 10,957,903 (8,342,915) (8,177,255) (7,612,957) (3,053,862) (4,394,482) (5,967,629) 37,182,809 13,112,421 19,458,555
Net change in fund balance…………………………………………………………………. 2,429,867$ (1,639,798)$ 3,910,395$ 1,120,143$ 4,298,290$ 1,863,660$ (13,516,707)$ 9,656,254$ 6,971,984$ 8,260,090$
Debt service as a percentage of noncapital expenditures………………………………………………. 14.00%14.68% 13.12%11.34%10.22%9.40%8.92%7.16%7.95%6.61%
LAST TEN FISCAL YEARS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 144 of 157 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
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 21,682,664,300 94.75%3.36 5.93 3.38
2017 20,458,398,100 1,862,400 1,032,434,600 51,432,021 242,474,296 1,326,340,917 21,786,601,417 21,682,664,300 100.48%3.39 5.99 3.42
2018 20,839,860,173 1,917,600 1,098,763,770 54,697,357 260,672,715 1,414,133,842 22,255,911,615 23,796,647,900 93.53%3.53 5.97 3.56
2019 22,216,363,900 1,878,500 1,316,412,396 61,967,704 274,770,615 1,653,150,715 23,871,393,115 23,796,647,900 100.31%3.36 5.71 3.28
Source: Official Statements, State Division of Local Services
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 145 of 157 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 118,681,500$ 1 0.53%115,831,100$ 1 0.58%
Nantucket Electric Company Private Utility 63,107,915 2 0.28%55,007,427 4 0.27%
Penant Realty LLC Residential 49,043,500 3 0.22%
Nantucket Yacht Club Recreation 54,086,700 4 0.24%50,398,900 5 0.25%
Richmond Great Point Development LLC Private 28,689,000 5 0.13%
Nantucket Island Resort LLC Resort 44,836,200 6 0.20%44,197,700 2 0.22%
Great Harbor Yacht Club Inc.Recreation 43,546,400 7 0.20%
White Elephant Hotel LLC Resort 28,996,100 8 0.13%
Sankaty Head Golf Club, Inc.Recreation 26,751,300 9 0.12%22,369,100 8 0.11%
US REIF Marine Nantucket FEE LLC Retail 26,410,900 10 0.12%
Walter Glowacki Private 70,597,200 3 0.35%
NIR Retail III LLC Resort 27,206,500 6 0.14%
Nantucket Golf Course Recreation 21,232,582 7 0.11%
Wauwinet Inn, LLC Resort 16,718,775 9 0.08%
Westmoor Club Resort 15,078,258 10 0.08%
Totals 484,149,515$ 2.18%438,637,542$ 2.19%
Source: Official Statements
2019 2010
Town of Nantucket, Massachusetts Page 146 of 157 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
2010 61,333,595 57,209,185 93.28%2,497,999 59,707,184 97.35%
2011 63,040,150 59,526,709 94.43%2,439,718 61,966,427 98.30%
2012 62,274,744 59,645,473 95.78%1,802,851 61,448,324 98.67%
2013 63,618,273 60,028,036 94.36%2,645,031 62,673,067 98.51%
2014 64,647,039 60,979,366 94.33%3,024,466 64,003,832 99.01%
2015 66,329,953 63,876,955 96.30%1,625,167 65,502,122 98.75%
2016 69,636,373 67,228,059 96.54%1,232,877 68,460,936 98.31%
2017 74,553,632 72,289,087 96.96%1,376,323 73,665,410 98.81%
2018 78,168,480 76,433,219 97.78%1,450,000 77,883,219 99.64%
2019 79,549,650 78,531,659 98.72%1,155,352 79,687,011 100.17%
Source: Accounting Records and Official Statements
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collections
Town of Nantucket, Massachusetts Page 147 of 157 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
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%
2017 10,298 550,016,180 21,786,601,417 78,299,239 7,603 14.24%0.36%
2018 10,298 550,016,180 22,255,911,615 84,972,254 8,251 15.45%0.38%
2019 10,298 550,016,180 23,871,393,115 97,800,207 9,497 17.78%0.41%
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
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%
2017 75,230,489 7,305 13.68%0.35%153,529,728 14,909 27.9%0.70%
2018 71,430,250 6,936 12.99%0.32%156,402,504 15,188 28.4%0.70%
2019 91,939,854 8,928 16.72%0.39%189,740,061 18,425 34.5%0.79%
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 148 of 157 Comprehensive Annual Financial Report
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Equalized Valuation………………………………….. 21,914,393,400$ 21,914,393,400$ 18,041,019,200$ 18,041,019,200$ 17,816,255,100$ 17,816,255,100$ 21,682,664,300$ 21,682,664,300$ 23,796,647,900$ 23,796,647,900$
Debt Limit…………………………..…………………. 1,095,719,670 1,095,719,670 902,050,960 902,050,960 890,812,755 890,812,755 1,084,133,215 1,084,133,215 1,189,832,395 1,189,832,395
Outstanding general obligation bonds………………. 150,040,866 153,072,902 144,200,827 137,176,623 133,498,025 124,250,817 153,529,728 156,402,504 189,740,061 184,274,078
Authorized and unissued debt…………………………. 68,310,085 72,315,737 48,369,825 51,318,862 24,976,578 87,611,526 166,096,099 124,200,429 157,015,166 204,519,266
Debt not applicable to debt limit…………………………. (51,917,004) (42,042,147) (47,042,147) (43,393,647) (42,671,460) (38,186,867) (48,673,610) (35,291,063) (33,240,034) (33,069,749)
Legal debt margin………………………………………….. 825,451,715$ 828,288,884$ 662,438,161$ 670,161,828$ 689,666,692$ 640,763,545$ 715,833,778$ 768,239,219$ 809,837,134$ 767,969,302$
Total debt applicable to the limit
as a percentage of debt limit………………………………….. 15.19%16.73%16.13%16.09%13.00%19.50%24.99%22.63%26.35%29.90%
Source: State Division of Local Services, Accounting Records
LAST TEN FISCAL YEARS
COMPUTATION OF LEGAL DEBT MARGIN
Town of Nantucket, Massachusetts Page 149 of 157 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……………………………………………………………. 97,800,207
Total direct and overlapping debt…………………………………………… 97,800,207$
*Outstanding debt as of June 30, 2018.
Source: Official Statements, Accounting Records
The estimated percentage applicable is based 100% to the Town.
AS OF JUNE 30, 2018
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Town of Nantucket, Massachusetts Page 150 of 157 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
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 5.50%
2016 10,298 550,016,180 53,410 39.4 1,595 4.20%
2017 10,298 550,016,180 53,410 39.4 1,588 4.20%
2018 10,298 550,016,180 53,410 39.4 1,610 2.00%
2019 10,298 550,016,180 53,410 39.4 1,686 2.00%
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 151 of 157 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 691 1 9.91%710 1 10.83%
Nantucket Cottage Hospital Medical 180 2 2.58%90 2 1.37%
Nantucket Island Resorts Hospitality 125 3 1.79%105 3 1.60%
Marine Home Center Retail 90 4 1.29%95 4 1.45%
Stop & Shop Retail 90 5 1.29%65 6 0.99%
Blue Hills Bank Finance 60 6 0.86%0.00%
Myles Reis Trucking Haulage 30 7 0.43%
Steamship Authority Transportation 28 8 0.40%32 7 0.49%
Don Allen Auto Dealership 25 9 0.36%
Bartlett Oceanview Farm Farm/Retail 25 10 0.36%
Harbor Fuel Petroleum Products 30 8 0.46%
Pacific National Bank/Fleet Finance 28 9 0.43%
The Brotherhood Restaurant 22 10 0.34%
Nantucket Bank Finance 60 5 0.92%
Source: Official Statements
2019 2010
CURRENT YEAR AND NINE YEARS AGO
PRINCIPAL EMPLOYERS (INCLUDING TOWN)
Town of Nantucket, Massachusetts Page 152 of 157 Comprehensive Annual Financial Report
Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General government…………………………………………………………….60 60 63 60 66 68 73 75 76 82
Public safety……………………………………………..77 77 81 81 81 81 83 85 85 88
Education……………………………………………………295 292 299 299 301 301 310 315 321 332
Public works……………………………………………………………..24 26 28 27 30 30 32 31 32 35
Health and human services…………………………………………………………..74 74 74 75 75 75 75 75 67 70
Culture and recreation…………………………………………………16 17 9 10 10 10 10 10 10 10
Sub-total governmental activities ……………………………………………………….. 546 546 554 552 563 565 583 591 591 617
Nantucket Memorial Airport…………………………45 47 44 44 41 41 44 44 46 48
Siasconset Water…………………………………………………………………1 1 - - - - - - - -
Wannacomet Water…………………………..11 11 11 11 11 11 11 11 12 13
Sewer…………………………………………………………………12 12 10 10 10 10 10 10 11 13
Sub-total business-type activities ……………………………………………………….. 69 71 65 65 62 62 65 65 69 74
Total Town employees…………….…………………...……..615 617 619 617 625 627 648 656 660 691
Source: Town personnel records
Health and human services includes Our Island Home employees
LAST TEN FISCAL YEARS
FULL-TIME EQUIVALENT TOWN EMPLOYEES BY FUNCTION
Town of Nantucket, Massachusetts Page 153 of 157 Comprehensive Annual Financial Report
OPERATING INDICATORS BY FUNCTION/PROGRAM
Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government:
Town Clerk
Registered voters…………………………………….. 7,907 7,907 8,394 8,394 8,546 8,618 8,618 9,100 9,263 9,150
Public Safety:
Police
Criminal offenses
Arrests……………………………….. 1,169 1,062 1,160 1,531 992 584 568 887 952 369
Reported crimes…………………….. 621 716 499 479 490 501 356 345 345 2,116
Motor vehicle responses………………………… 2,910 2,600 2,994 3,469 3,411 3,432 3,493 4,322 4,625 6,283
Other responses………………………… 17,659 15,913 18,553 20,648 17,899 21,576 23,678 22,023 24,327 10,762
Total criminal offenses…………. 22,359 20,291 23,206 26,127 22,792 26,093 28,095 27,577 30,249 19,530
Fire
Incidents
Fires…………………………….. 40 66 41 52 67 82 86 66 68 70
Non-fire incidents……………………………………………………….. 3,783 3,637 3,640 3,721 4,915 3,893 3,942 4,011 4,234 4,081
Total fire calls………………… 3,823 3,703 3,681 3,773 4,982 3,975 4,028 4,077 4,302 4,151
Inspectional Services:
Number of building permits…………………………………. 1,156 1,145 1,406 1,639 1,797 2,010 2,137 1,996 1,875 1,985
Education:
Number of students…………………………………. 1,255 1,230 1,282 1,322 1,378 1,535 1,595 1,588 1,610 1,686
Public Works:
Landfill
Solid waste tonnage………………………….. 24,687 34,933 34,000 33,710 37,400 38,000 39,000 38,000 33,237 35,689
Health and Human Services:
Board of Health
Inspections
Food establishments…………………. 210 205 212 230 247 262 668 675 675 814
Other………………………….. 329 302 341 358 367 380 1,373 1,563 1,563 744
Total inspections………………….. 539 507 553 588 614 642 2,041 2,238 2,238 1,558
Our Island Home - Nursing Home
Number of beds………………… 45 45 45 45 45 45 45 45 45 45
Culture and Recreation:
Beaches
Beach Stickers 3,838 3,628 3,845 3,795 3,973 4,102 4,259 4,559 4,680 4,992
Transportation:
Nantucket Memorial Airport
Number of enplanements……… 201,638 179,410 175,420 178,303 174,129 164,290 138,752 124,321 122,356 127,733
Number of tower operations…… 127,575 120,806 125,960 126,898 119,976 109,225 106,186 104,913 102,678 69,817
Gallons of jet fuel sold……………. N/A 1,127,270 1,217,635 1,164,958 1,194,978 1,207,361 1,277,228 1,309,802 1,346,285 1,616,388
N/A - Information not available
Source: Various Town Departments, State websites and annual Town Report.
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 154 of 157 Comprehensive Annual Financial Report
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM `
Function 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government:
Number of buildings………………………………..7 7 7 7 7 7 7 7 7 7
Public Safety:
Police
Number of stations…………………………….1 1 2 2 2 2 2 2 2 2
Fire
Number of stations…………………………….2 2 2 2 2 2 2 2 2 3
Education:
Number of elementary schools…………………………………….1 1 1 1 1 1 1 2 2 2
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.
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 155 of 157 Comprehensive Annual Financial Report
This page intentionally left blank.
Town of Nantucket, Massachusetts Page 156 of 157 Comprehensive Annual Financial Report
The Nantucket window box planter can be seen in the windows of many homes on the Island.
Above is a fabulous Fall arrangement to match the season.
Town of Nantucket, Massachusetts Page 157 of 157 Comprehensive Annual Financial Report