HomeMy WebLinkAboutNantucket CAFR 2020TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL
REPORT
YEAR ENDED JUNE 30, 2020
On the cover: A view of the ocean from the back of a local establishment. Views such as this
are what make Nantucket such a beautiful place to visit and continue to come back to.
Photo credit: Angelo Pierri, Pocono Pines, Pennsylvania
Above: The much-photographed Nantucket Lobster Shack located in the Nantucket Boat Basin
near the Hy-Line Ferry.
Photo credit: Robert Borneman, Houston, Texas
TOWN OF NANTUCKET, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2020
C. Elizabeth Gibson, Town Manager
Prepared by the Finance Department
Brian E. Turbitt, Director of Municipal Finance
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INTRODUCTORY SECTION
Known for its great ocean views and beaches, the island also has many attractive features inland
such as this brook, surrounded by bare trees on a beautiful Fall day.
Photo credit: Robert Borneman, Houston, Texas
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TOWN OF NANTUCKET, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page(s) INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1-15 Certificate of Achievement for Excellence in Financial Reporting.................................................. 16 Organizational Chart ........................................................................................................................ 17 Principal Town Officials .................................................................................................................. 18
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 ....................................................................................... 51-89
Required Supplementary Information:
Schedule of Town’s Proportionate Share of Net Pension Liability ........................................... 92 Schedule of Town’s Contributions to Pension Plan ................................................................... 92 Schedule of County’s Proportionate Share of Net Pension Liability ......................................... 93
Schedule of County’s Contributions to Pension Plan ................................................................ 93 Schedule of Land Bank’s Proportionate Share of Net Pension Liability ................................... 94 Schedule of Land Bank’s Contributions to Pension Plan ....................................................... ...94
Schedule of Commonwealth’s Collective Share of Net Pension Liability – Massachusetts Teacher’s Retirement System ...................................................................... 95 Schedule of Change in Net OPEB Liability and Related Ratios ............................................... 96 Schedule of Contributions to OPEB Plan .................................................................................. 97 Schedule of Investment Returns – OPEB Plan .......................................................................... 97 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ................................................................................. 98-103 Notes to Required Supplementary Information .................................................................... 104-105
TOWN OF NANTUCKET, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2020
TABLE OF CONTENTS
Page(s) Combining Statements: Nonmajor Governmental Funds ........................................................................................... 108-109
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 110-112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ............................................................ 114-116
Internal Service Funds .............................................................................................................. 117 Combining Statement of Net Position – Internal Service Funds ........................................ 118 Combining Statement of Revenues, Expenses and Changes in Net Position – Internal Service Funds ................................................................................................. 119 Combining Statement of Cash Flows – Internal Service Funds ......................................... 120 Fiduciary Funds ........................................................................................................................ 121 Statement of Changes in Assets and Liabilities – Agency Fund ........................................ 122
STATISTICAL SECTION
Narrative .......................................................................................................................................... 125
Net Position by Component – Last Ten Fiscal Years ...................................................................... 126 Changes in Net Position – Last Ten Fiscal Years ....................................................................... 127-128 Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 129 Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 130 Assessed Value and Estimated Actual Value of Taxable Property by Classification and Tax Rates – Last Ten Fiscal Years ..................................................................................... 131 Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 132 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................ 133 Ratios of Outstanding Debt and General Obligation Debt – Last Ten Fiscal Years ....................... 134 Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 135 Direct and Overlapping Governmental Activities Debt .................................................................. 136 Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 137 Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 138 Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 139
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 140 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 141
Town and County of Nantucket
Select Board County Commissioners
Dawn E. Hill Holdgate, Chair Jason Bridges, Vice Chair Matthew Fee Kristie L. Ferrantella Melissa Murphy
16 Broad Street Nantucket, Massachusetts 02554 _________________
Telephone (508) 228-7255 Facimile (508) 228-7272
www.nantucket-ma.gov _________________
C. Elizabeth GibsonTown & County Manager
Letter of Transmittal
December 31, 2020
Honorable Select Board and Citizens of the Town of Nantucket, Massachusetts:
We are pleased to present the Town of Nantucket’s seventh 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, 2020, and its transmission satisfies one of this department’s most important
annual goals.
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 142 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, 2020 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 142 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 2019.
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 2019, the Steamship Authority transported about 578,649 passengers, 64,023
passenger vehicles and 54,036 commercial vehicles to Nantucket Island.
Hy-line had about 717,132 embarkations in calendar year 2019; up 5.7% from 2018 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 142 Comprehensive Annual Financial Report
The Hy-line launched a newer larger vessel during calendar 2017. This has led to ridership increases in three consecutive years.
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 about 53,000 passengers during the summer of 2019.
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 2019 with
approximately 134,000 enplanements it was the second busiest airport in the Commonwealth trailing only Logan International Airport in Boston.
Town of Nantucket, Massachusetts Page 4 of 142 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 2020 was 1,695 (up 41% 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 142 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
Corona Virus (COVID-19) COVID-19 is a new respiratory disease caused by a novel coronavirus that has not previously been seen in humans. On March 10, 2020, the Governor of the Commonwealth of Massachusetts declared a state of emergency to support the Commonwealth’s response to the spread of the virus. This was followed by the World Health Organization declaring the virus a pandemic and the declaration of a national emergency by
the President of the United States. On March 15, 2020 the Governor announced emergency actions which called for numerous nonessential activities to end and for citizens to shelter in place. The Town is adhering to these actions by strictly following the public health recommendations of social distancing and
limiting public gatherings to 10 people or less. In addition, the Town closed all municipal buildings to the public. Town employees are currently reporting to work as directed and under the discretion of management. The Town has continued to maintain all essential functions and services and expects to
continue to do so. The virus and the resulting actions by national, state and local governments is altering the behavior of businesses and citizens in a manner that has had a negative impact on global and local economies. There can be no assurances regarding the extent to which the pandemic will impact national and state economies and, accordingly, how it will adversely impact municipalities including the Town. While the impact to fiscal 2020 was minimal due to a strong first three quarters of the fiscal year, these negative impacts are likely to include reduced collection of most revenue sources in future periods while the virus continues to be a threat.
Property Tax 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.
Town of Nantucket, Massachusetts Page 6 of 142 Comprehensive Annual Financial Report
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 3.2% over the past seven years.
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 following table illustrate revenues from this source in each of the last six fiscal years: .
Calendar # of Residential Non-Residential Total
Year Permits Value Value Value
2019 1,684 241,085,740$ 19,518,542$ 260,604,282$
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 9,666 1,495,810,331$ 302,912,703$ 1,798,723,034$
Table 1
Fiscal Levy Unused
Year Limit Levy Levy Capacity Tax savings
2020 87,400,494$ 84,281,637$ 3,118,857$ 3.57%
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%
534,783,776$ 517,775,970$ 17,007,806$ 3.18%
Table 2
2.02.53.03.54.04.55.05.56.0
2014 2015 2016 2017 2018 2019 2020
Room Occupancy (Millions)Fiscal Year Amount
2020 5,553,748
2019 3,807,930
2018 3,622,242
2017 3,498,400
2016 3,428,604
2015 3,041,496
Room Occupancy
Town of Nantucket, Massachusetts Page 7 of 142 Comprehensive Annual Financial Report
In addition, increased 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.
Daffodil Festival
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 8 of 142 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, andpreliminary 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 areabounded by Main Street, Commercial Street, Washington Street, and New Whale Street. The site
Town of Nantucket, Massachusetts Page 9 of 142 Comprehensive Annual Financial Report
is currently owned by multiple landowners. 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, 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 during fiscal 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 142 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 two, three and four-bedroom homes which are both mixed and affordable rate housing.
Town of Nantucket, Massachusetts Page 11 of 142 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:
-1.0
1.0
3.0
5.0
7.0
9.0
11.0
13.0
15.0
17.0
19.0
21.0
23.0
25.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Unassigned Fund Balances (Millions)
Town of Nantucket, Massachusetts Page 12 of 142 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 duringfiscal 2018), some of this funded through the State subsidized, low interest loan program.
•Improvements to Schools: over $40 million.
•Improvements to roads, sidewalks, and bike paths: half of the cost of almost $15 million wasfunded through the State Chapter 90 Road Funding Program.
•In process construction on a new Fire Station: $18 million as of fiscal 2020.
Fiscal Real and Personal Motor Vehicle Rooms and
Year Property Taxes Excise Meals Excise Permits State Aid Miscellaneous Total
2021 89,625,544 2,275,000 1,600,000 623,000 3,046,068 2,288,648 99,458,260
2022 92,170,473 2,250,000 6,000,000 891,350 3,880,203 2,154,012 107,346,038
2023 96,954,133 2,475,000 7,000,000 1,506,100 3,950,250 2,551,502 114,436,985
2024 100,807,383 2,563,200 7,250,000 1,521,161 3,975,332 2,577,017 118,694,093
2025 103,731,963 2,675,200 7,500,000 1,625,000 4,000,232 2,695,812 122,228,207
Town of Nantucket, Massachusetts Page 13 of 142 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, 2019. This was the sixth 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 GibsonTown Manager
Brian E. Turbitt Director of Municipal Finance
Town of Nantucket, Massachusetts Page 14 of 142 Comprehensive Annual Financial Report
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Nantucket
Massachusetts
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2019
Executive Director/CEO
Town of Nantucket, Massachusetts Page 15 of 142 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
Select Board
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 142 Comprehensive Annual Financial Report
PRINCIPAL TOWN OFFICIALS As of June 30, 2020
Elected Officials
Select Board Dawn E. Hill Holdgate, Chair
Jason Bridges, Vice Chair
Melissa Murphy
Matthew Fee
Kristie L. Ferrantella
Town Moderator Sarah Alger, Esquire Town Clerk Nancy L. Holmes
School Committee Pauline Proch, Chairman Jennifer Iller, Vice Chairman Steven Zortevik, Secretary
Zona Tanner-Butler
Dr. Timothy Lepore
Appointed Financial Committees
Audit Committee Melissa Murphy Dawn E. Hill Holdgate Denice Kronau
Finance Committee Denice Kronau, Chairman
Stephen Maury, Vice Chairman
Christopher Glowacki
Peter A. McEachern
Jill Vieth Joseph T. Grause, Jr. Peter N. Schaeffer Joanna Roche George Harrington Principal Executive Officers
Town Manager C. Elizabeth Gibson
Superintendent of Schools Elizabeth Hallett
Director of Finance Brian E. Turbitt
Town of Nantucket, Massachusetts Page 17 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 18 of 142 Comprehensive Annual Financial Report
FINANCIAL SECTION
Employees and patrons at a busy outdoor eating establishment navigate through the challenges of
the 2020 tourist season. Social distancing and protective masks are now the norm, and despite
the COVID-19 pandemic, Nantucket still enjoyed a successful summer season.
Photo credit: Michael Torrisi
Town of Nantucket, Massachusetts Page 19 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 20 of 142 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, 2020 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 142 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, 2020, 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 and fiduciary funds. Our opinion was not modified with respect to
this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, 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 142 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 December 31, 2020 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 December 31, 2020
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Town of Nantucket, Massachusetts Page 24 of 142 Comprehensive Annual Financial Report
Management’s Discussion and Analysis
Town of Nantucket, Massachusetts Page 25 of 142 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, 2020.
Financial Highlights
Fiscal 2020 can be characterized as a year that was dealt many financial challenges due to the emergence of the novel coronavirus, COVID-19. Reaching the United States west coast in January of
2020, the virus spread to pandemic proportions nationally; quickly spreading and reaching Massachusetts in late February. The strength in transmission of the virus forced lock downs of businesses, schools, restaurants and all non-essential activity in many states including Massachusetts.
These lockdowns essentially brought most economic activity to a halt as its impact was felt globally. Despite this, the Town was able to navigate through these challenges and end up with a relatively positive outcome. This was leveraged mostly in part to a strong first three quarters of the year bolstered by significant reserves the Town has accumulated. In addition, the Town was the beneficiary of numerous grants created to assist communities during this very challenging time. Its impact on fiscal 2021 is yet to be determined as the State has yet to authorize its budget, however the impact to fiscal 2020 is included in various areas of this Management Discussion and Analysis.
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 $271.5 million (total net position).
The government’s total net position increased by over $1.8 million (less than 1% of total net position) over the prior year. This consisted of a decrease in governmental activities’ net position by about
$1.5 million (1% of total governmental activities’ net position) and an increase in business-type activities’ net position by almost $3.4 million (about 2.5% 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 about $23.4 million (21.5% of General Fund expenditures). Total fund balance in the General Fund was almost $40.8 million (37.4% of General Fund expenditures). The Town reported a fund balance of almost $13.1 million in its Town Capital Projects Fund and reported total fund balances of almost $20.9 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 over $3.2 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 maintained its bond rating of Aaa. 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-
Town of Nantucket, Massachusetts Page 26 of 142 Comprehensive Annual Financial Report
wide financial statements, 2) fund financial statements, 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.
The layout and relationship of the financial statements and supplementary information is visually illustrated as follows:
Government-wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector business. The statement of position presents information on all of the Town’s assets, deferred outflows of
resources, liabilities and deferred inflows of resources, with the difference between these reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave.)
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.
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 142 Comprehensive Annual Financial Report
The Town’s governmental activities consist of:
1.General government;2. Public safety;3. Education;4. Public works;5. Health and human services;6. Culture and recreation; and,7. Interest expense.
The Town’s business-type activities consist of:
1.Siasconset Water District;
2.Wannacomet Water District;3. Sewer; and4.Nantucket Memorial Airport.
The Town’s component units consist of:
1.Nantucket County; and2. 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 enablinglegislation
•Committed—amounts constrained by a government using its highest level of decision-makingauthority
•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.
Town of Nantucket, Massachusetts Page 28 of 142 Comprehensive Annual Financial Report
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions.
The Town maintains numerous individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, and Town Capital Projects Fund which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these Nonmajor governmental funds is provided in the form of combining statements.
The Town adopts an annual appropriated budget for its general fund and its enterprise funds. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds – The Town maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses enterprise funds to account for all the business-type activities previously discussed.
Internal service funds are used to report activities that service all other Town Departments. The Town uses an internal service fund to account for self-insured health insurance claims.
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Other Information - In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s proportionate share of net pension liability, contributions to pension plan, information regarding the Town’s special funding
situation for teacher contributions to pensions and funding and contribution progress of the Town’s other postemployment benefits to its employees as well as the Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual – General Fund.
Town of Nantucket, Massachusetts Page 29 of 142 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 $271.5 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 $357.3 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 $21.8 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 about $107.5 million. This consisted of Governmental activities unrestricted net position which is in a deficit position of over $116.5 million offset by unrestricted net position in the
Business-type funds of almost $9.1 million. The recognition of a Net Other Postemployment Benefits Liability and Net Pension Liability has reduced the Town’s net position significantly in both its Governmental and Business-Type activities. This has led to the significant deficit in the Governmental
activities unrestricted net position.
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30, June 30, June 30, June 30,
2020 2019 2020 2019 2020 2019
Assets
Currrent and other assets 112,271,384$ 99,369,573$ 33,620,210$ 31,979,762$ 145,891,594$ 131,349,335$
Capital assets, net 325,836,624 326,131,846 239,550,834 234,876,123 565,387,458 561,007,969
Total assets 438,108,008 425,501,419 273,171,044 266,855,885 711,279,052 692,357,304
Deferred outflows of resources 25,086,023 21,244,998 3,251,670 3,409,292 28,337,693 24,654,290
Liabilities
Long-term liabilities 294,039,447 289,571,226 117,510,938 111,837,936 411,550,385 401,409,162
Other liabilities 23,355,773 18,068,381 20,741,750 24,390,682 44,097,523 42,459,063
Total liabilities 317,395,220 307,639,607 138,252,688 136,228,618 455,647,908 443,868,225
Deferred inflows of resources 10,360,923 3,303,319 2,066,922 1,296,560 12,427,845 4,599,879
Net Position
Net investment in capital assets 230,221,877 229,696,540 127,049,683 126,071,273 357,271,560 355,767,813
Restricted 21,770,947 18,070,833 - - 21,770,947 18,070,833
Unrestricted (116,554,936) (111,963,882) 9,053,421 6,668,726 (107,501,515) (105,295,156)
Total Net Position 135,437,888$ 135,803,491$ 136,103,104$ 132,739,999$ 271,540,992$ 268,543,490$
Town of Nantucket, Massachusetts Page 30 of 142 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 over $1.5 million which was consistent with the net decrease of almost $1.1 million in the prior year.
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30, June 30, June 30, June 30,
2020 2019 2020 2019 2020 2019
Revenues
Program revenues:
Charges for services 14,841,539$ 16,484,533$ 29,125,632$ 30,055,443$ 43,967,171$ 46,539,976$
Operating grants and contributions 14,895,880 12,857,189 658,259 133,619 15,554,139 12,990,808
Capital grants and contributions 859,038 2,571,891 5,006,466 2,111,745 5,865,504 4,683,636
General revenues:
Property taxes 84,077,242 79,997,125 - - 84,077,242 79,997,125
Hotel and meals excise 6,654,185 5,005,958 - - 6,654,185 5,005,958
Intergovernmental 269,158 246,669 - - 269,158 246,669
Other 6,868,385 8,545,132 150,100 161,926 7,018,485 8,707,058
Total Revenues 128,465,427 125,708,497 34,940,457 32,462,733 163,405,884 158,171,230
Expenses
General government 14,739,182 15,765,219 - - 14,739,182 15,765,219
Public safety 21,070,019 22,887,964 - - 21,070,019 22,887,964
Education 59,004,917 52,485,059 - - 59,004,917 52,485,059
Public works 18,470,036 20,574,322 - - 18,470,036 20,574,322
Health and human services 8,753,033 8,194,864 - - 8,753,033 8,194,864
Culture and recreation 4,272,867 3,867,395 - - 4,272,867 3,867,395
Debt service 2,942,449 3,004,920 - - 2,942,449 3,004,920
Siasconset water - - 661,611 692,972 661,611 692,972
Wannacomet water - - 4,575,055 4,856,369 4,575,055 4,856,369
Sewer - - 10,230,935 7,463,953 10,230,935 7,463,953
Nantucket Memorial Airport - - 16,864,915 16,842,531 16,864,915 16,842,531
Total Expenses 129,252,503 126,779,743 32,332,516 29,855,825 161,585,019 156,635,568
Change in net position before transfers (787,076) (1,071,246) 2,607,941 2,606,908 1,820,865 1,535,662
Transfers (755,164) - 755,164 - - -
Change in net position (1,542,240) (1,071,246) 3,363,105 2,606,908 1,820,865 1,535,662
Net position, beginning of year 135,803,491 137,265,735 132,739,999 133,514,124 268,543,490 270,779,859
Restatement for net OPEB liability - (3,739,844) - (32,187) - (3,772,031)
Restatement for interfund payable - 3,348,846 - (3,348,846) - -
Restatement for housing trust 1,176,637 - - - 1,176,637 -
Net position, beginning of year,
as restated 136,980,128 136,874,737 132,739,999 130,133,091 269,720,127 267,007,828
Net position, end of year 135,437,888$ 135,803,491$ 136,103,104$ 132,739,999$ 271,540,992$ 268,543,490$
Town of Nantucket, Massachusetts Page 31 of 142 Comprehensive Annual Financial Report
Revenues
Total revenue increases were almost $2.8 million. The increase was primarily due to an increase in property taxes. Specifically, property taxes, which made up 65.4% of total revenues increased by almost $4.1 million; this was in line with the amount budgeted by the Town during its rate setting process and was
within the permissible amount allowable by 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. This was offset by a reduction in charges for services of over $2.0 million. The shelter-in-place order from the Governor in the 4th quarter in response to the COVID-19 pandemic was primarily responsible for this, as this order essentially locked down all economic activity. All other revenues basically offset each other as there were modest increases and decreases that net to zero.
Expenses
Total expenses increased by almost $2.5 million. Education is by far the largest expense and represented about 45.7% of total expenses. Education expenses increased $6.5 million over the prior year due primarily to (1) increased OPEB costs of about $1 million allocated to
education, (2) an increase in its special funding arrangement for Teacher’s
Retirement of about $1.8 million, (3) associated costs related to the write-off of
construction in process that was expensed rather than capitalized of $2.4 million, and (4) general inflation increases. The overall increase in education was offset by modest decreases to general government, public safety, and public works that were in play due to the Town aggressively managing its budget during this health crisis.
Town of Nantucket, Massachusetts Page 32 of 142 Comprehensive Annual Financial Report
Fiscal Year 2020 Expenses and Program Revenues – governmental activities are graphically presented as
follows:
Net position of the business-type activities increased by almost $3.4 million from the prior year
balances. About $0.2 million of this increase related to the annual adjustment to reflect activity between the internal service funds and the enterprise funds. The remaining approximate $3.2 million change in
net position for each business-type fund is broken down individually as follows:
In its Business-type activities, the Town’s user charges are not designed to cover depreciation which is a component of the “change in net position” but does budget for principal payback of debt which is not a component of the “change in net position”. The difference in these two items impacts the “change in net
position” on a GAAP basis.
With respect to Siasconset and Wannacomet principal payback of debt is larger than depreciation, therefore the positive results are expected; also, seasonal
weather patterns contributed to increased usage and positive operations of these two operations to explain the additional difference. In the instance of Sewer, depreciation and principal payback approximate one another.
The Airport experienced its 7th straight year of cash positive operations as travel to the Island continues to grow at a very rapid pace.
Siasconset Water District 317,950$
Wannacomet Water District 1,674,201
Sewer 195,284
Nantucket Memorial Airport 986,349
Total Change 3,173,784$
Town of Nantucket, Massachusetts Page 33 of 142 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 almost $74.7 million, an increase of $2.6 million over the prior year.
Unassigned fund balance in the general fund was almost $23.4 million or 21.5% of general fund expenditures. This is available for spending at the government’s discretion. Assigned fund balance of over $6.6 million; committed fund balance of almost $8.0 million, restricted fund balance of under $0.1
million and nonspendable fund balances of over $2.6 million bringing total general fund balance to almost $40.8 million or 37.4% of general fund expenditures. While unassigned fund balance increased, total general fund balance decreased by over $2.1 million. This was primarily due to the Town appropriating from reserves for capital and other one-time items in an amount that exceeded its annual operating surplus (favorable budget variance).
The timing of capital costs verses bond proceeds and other financing sources was primarily responsible for an increase in capital projects of almost $2.4 million. The entire fund balance was restricted.
The Combined Nonmajor Funds ended the year with a balance of almost $20.9 million which was higher than the prior year due to excess transfers from the general fund, bond issuances allocated to special
revenue funds and grants received that the Town was unable to spend prior to June 30 due to COVID lockdowns.
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 over $7.9 million. This represents an increase of almost $2.5 million over the prior year. Reinsurance proceeds of over $1.6 million and positive claims experience were primarily responsible for these positive operating results as claims were much lower during the State-wide shelter in place.
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 $5.7 million.
The Private Purpose Trust Funds make up almost $2.1 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 a minor decrease year over year.
Town of Nantucket, Massachusetts Page 34 of 142 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 almost $0.6 million to almost $3.7 million due to contributions made by the Town combined with investment earnings, exceeding 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 almost $6.7 million.
For the eighth consecutive year revenues exceeded forecast. The Town elected to defer the collection of
property taxes during the shelter in place order. This was permitted by the State under COVID legislation. This caused property taxes collected to be $2.1 million less than budget that ultimately was not collected until fiscal 2021. This was offset by a very strong rooms tax which came in $2.2 million
over forecast due to a very strong first quarter of the year. All other revenue categories combined to exceed forecast by $1.2 million. Despite the shelter in place orders that essentially shut down the economy in the 4th quarter the Town was leveraged by a strong first three quarters of the year to end the
year on a positive note.
Favorable expenditure variances contributed over $5.3 million to this positive result and were mainly
spread over many expenditure categories. The Town continues to aggressively monitor its budget; in addition, spending freezes were in effect during the shelter in place orders. 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, 2020 amounts to approximately $565.4 million (net of accumulated depreciation) an increase from the previous year’s balance of approximately $4.4 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.
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’.
Town of Nantucket, Massachusetts Page 35 of 142 Comprehensive Annual Financial Report
At the end of the current fiscal year, the Town had total debt outstanding of almost $193.0 million. About $95.4 million is related to the Town’s Governmental activities and over $97.5 million is related to the
Town’s Business-type activities. The entire amount comprises debt backed by the full faith and credit of the government.
In addition, the Town issues bond anticipation notes prior to permanent financing to fund the initial stages of capital projects. At June 30, 2020 the bond anticipation notes payable balances approximated $29.6 million.
Included in these outstanding debt amounts is unamortized bond premiums of almost $4.3 million and over $2.1 million in the governmental and business-type activities respectively.
The Town’s total debt increased by over $3.2 million during the fiscal year due to following:
Economic Factors and Next Year’s Budgets and Rates
As previously discussed, the COVID-19 pandemic has had a catastrophic impact nation-wide. Withthe majority of the Country under lockdown for the entire 4th quarter, the impacts have caused
significant reductions in revenue and thus an adverse impact on operations. The Town survived fiscal2020 due to a strong first three quarters and conservative revenue estimates. However, the impact tofiscal year 2021 is uncertain and thus, the Town has taken a very conservative approach in estimating
revenues for fiscal year 2021.
Unemployment rates across the Commonwealth continue to be among the highest in the country as
the effects of the COVID-19 pandemic has hit states with higher pre-pandemic employment rates thehardest.
Regular scheduled maturities:
Governmental Activities (11,831,448)$
Business-Type Activities (7,698,976)
Issuance of debt:
Governmental Activities 8,725,000
Business-Type Activities 13,061,562
Originating premiums
Governmental Activities 1,138,749
Business-Type Activities 570,915
Amortization of premiums
Governmental Activities (387,411)
Business-Type Activities (350,700)
3,227,691$
Town of Nantucket, Massachusetts Page 36 of 142 Comprehensive Annual Financial Report
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 anticipates State aid for 2021 to remain consistent with the prior year as the State has committed to level fund cities and towns as part of its 2021 budget.
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 $1 billion in property sales each year
since 2014.
All of the above items were considered when the Town developed its budget for fiscal year 2021. The
budget was adopted in May 2020 and the Town set its tax rate in December 2020.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or request for additional financial information should be addressed to the Office of the Director of Finance, 37 Washington Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket County may be obtained from the Office of the Director of Finance 37 Washington Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket Islands Land Bank may be obtained by contacting Nantucket Islands Land Bank, 22 Broad Street, Nantucket, Massachusetts 02554.
Complete stand-alone financial statements for Nantucket Memorial Airport may be obtained from the Office of the Director of Finance 37 Washington Street, Nantucket, Massachusetts 02554
Town of Nantucket, Massachusetts Page 37 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 38 of 142 Comprehensive Annual Financial Report
Basic Financial Statements
Town of Nantucket, Massachusetts Page 39 of 142 Comprehensive Annual Financial Report
Nantucket
Governmental Business-Type Nantucket Islands
Activities Activities Total County Land Bank
Assets
Cash and cash equivalents 84,739,661$ 27,018,375$ 111,758,036$ 6,023,847$ 10,691,283$
Investments 13,061,858 1,104,394 14,166,252 - 5,022,753
Investments, designated - - - - 290,770
Receivables, net:
Property taxes 3,974,449 - 3,974,449 - -
User fees 935,623 1,840,859 2,776,482 - -
Departmental and other 2,675,069 1,553,759 4,228,828 - 149,329
Tax liens 2,952,548 - 2,952,548 - -
Intergovernmental 1,184,036 3,531,482 4,715,518 131,094 -
Inventory - 786,034 786,034 - 301,485
Prepaid items 530,717 - 530,717 - 75,788
Other assets 2,730 - 2,730 - -
Internal balances 2,214,693 (2,214,693) - - -
Restricted cash and cash equivalents - - - - 647,910
Restricted investments - - - - 3,115,830
Cash surrender value of life insurance - - - - 1,095,564
Land conservation rights - - - - 30,000
Capital assets not being depreciated 212,507,527 59,934,034 272,441,561 3,283,842 390,040,595
Capital assets, net of depreciation 113,329,097 179,616,800 292,945,897 - 31,596,934
Total Assets 438,108,008 273,171,044 711,279,052 9,438,783 443,058,241
Deferred Outflows of Resources
Related to losses on refunding 135,716 568,121 703,837 - 140,277
Related to net other postemployment benefits liability 15,497,495 816,984 16,314,479 17,983 -
Related to net pension liability 9,452,812 1,866,565 11,319,377 151,353 446,130
Total Deferred Outflows of Resources 25,086,023 3,251,670 28,337,693 169,336 586,407
Liabilities
Warrants and accounts payable 3,083,841 1,328,453 4,412,294 77 459,812
Accrued payroll and withholdings 4,813,491 332,765 5,146,256 76,333 -
Accrued expenses - - - - 327,842
Retainage payable 70,710 - 70,710 - -
Health claims incurred but not reported 1,318,109 - 1,318,109 - -
Accrued interest 1,038,154 771,914 1,810,068 - -
Other liabilities 1,241,468 480,243 1,721,711 - -
Unearned revenue - - - - -
Bond anticipation notes payable 11,790,000 17,828,375 29,618,375 - -
Noncurrent liabilities:
Due within one year 7,615,951 8,028,467 15,644,418 - 5,997,824
Due in more than one year 286,423,496 109,482,471 395,905,967 1,150,189 18,439,466
Total Liabilities 317,395,220 138,252,688 455,647,908 1,226,599 25,224,944
Deferred Inflows of Resources
Related to net pension liability 4,848,426 957,376 5,805,802 70,057 206,499
Related to net other postemployment benefits liability 5,512,497 1,109,546 6,622,043 14,475 63,817
10,360,923 2,066,922 12,427,845 84,532 270,316
Net Position
Net investment in capital assets 230,221,877 127,049,683 357,271,560 3,283,842 400,753,748
Restricted:
Nonexpendable permanent funds 44,965 - 44,965 - -
Federal and State grants 2,515,482 - 2,515,482 - -
Community preservation 5,312,868 - 5,312,868 - -
Capital outlay 2,149,476 - 2,149,476 - -
Revolving funds 5,481,902 - 5,481,902 - -
Gift funds 1,248,772 - 1,248,772 - -
Other purposes 5,017,482 - 5,017,482 4,899,847 3,763,740
Unrestricted (116,554,936) 9,053,421 (107,501,515) 113,299 13,631,900
Total Net Position 135,437,888$ 136,103,104$ 271,540,992$ 8,296,988$ 418,149,388$
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2020
See accompanying notes to basic financial statements.
Primary Government Component Units
Town of Nantucket, Massachusetts Page 40 of 142 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 14,739,182$ 1,463,420$ 764,303$ 125,000$ (12,386,459)$ (12,386,459)$
Public safety 21,070,019 4,085,076 428,942 - (16,556,001) (16,556,001)
Education 59,004,917 1,370,934 12,747,591 - (44,886,392) (44,886,392)
Public works 18,470,036 3,111,654 54,817 45,455 (15,258,110) (15,258,110)
Health and human services 8,753,033 4,452,669 627,486 - (3,672,878) (3,672,878)
Culture and recreation 4,272,867 357,786 22,741 688,583 (3,203,757) (3,203,757)
Interest expense 2,942,449 - 250,000 - (2,692,449) (2,692,449)
Total governmental activities 129,252,503 14,841,539 14,895,880 859,038 (98,656,046) (98,656,046)
Business-type activities:
Siasconset water 661,611 983,400 - - 321,789$ 321,789
Wannacomet water 4,575,055 6,237,881 - - 1,662,826 1,662,826
Sewer 10,230,935 6,959,010 - 2,751,862 (520,063) (520,063)
Nantucket Memorial Airport 16,864,915 14,945,341 658,259 2,254,604 993,289 993,289
Total business-type activities 32,332,516 29,125,632 658,259 5,006,466 2,457,841 2,457,841
Total Primary Government 161,585,019$ 43,967,171$ 15,554,139$ 5,865,504$ (98,656,046) 2,457,841 (96,198,205)
Component units:
Nantucket County 872,412$ 988,628$ 228,534$ -$ 344,750 -
Nantucket Islands Land Bank 8,449,757 23,008,982 3,145,756 - - 17,704,981
Total Component units 9,322,169$ 23,997,610$ 3,374,290$ -$ 344,750 17,704,981
General Revenues:
Property taxes 84,077,242 - 84,077,242 - -
Motor vehicle and boat excise 3,241,429 - 3,241,429 - -
Hotel and meals excise 6,654,185 - 6,654,185 - -
Community Preservation Fund surcharges 2,364,095 - 2,364,095 - -
Grants and contributions not restricted to
specific programs 269,158 - 269,158 - -
Penalties and interest on taxes 544,079 - 544,079 - -
Unrestricted investment income 605,877 150,100 755,977 22,563 456,148
Gain on sale of capital assets 112,905 - 112,905 - 26,142
Miscellaneous - - - - 100,000
Transfers (net)(755,164) 755,164 - - -
Total general revenues and transfers 97,113,806 905,264 98,019,070 22,563 582,290
Change in Net Position (1,542,240) 3,363,105 1,820,865 367,313 18,287,271
Net Position:
Beginning of year, as restated (see Note IV)136,980,128 132,739,999 269,720,127 7,929,675 399,862,117
End of year 135,437,888$ 136,103,104$ 271,540,992$ 8,296,988$ 418,149,388$
See accompanying notes to basic financial statements.
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2020
Component Units
Town of Nantucket, Massachusetts Page 41 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2020
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Assets
Cash and cash equivalents 30,428,584$ 19,791,109$ 26,667,103$ 76,886,796$
Investments 12,605,831 - 208,448 12,814,279
Receivables, net of allowance for uncollectibles:
Property taxes 3,704,568 - 269,881 3,974,449
User charges 935,623 - -935,623
Departmental and other 1,362,810 - 625,706 1,988,516
Tax liens 2,952,548 - -2,952,548
Intergovernmental - - 1,184,036 1,184,036
Other assets 2,730 - - 2,730
Due from other funds 2,881,333 - - 2,881,333
Total Assets 54,874,027 19,791,109 28,955,174 103,620,310
Total Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources 54,874,027$ 19,791,109$ 28,955,174$ 103,620,310$
Liabilities:
Warrants and accounts payable 1,241,629$ 1,459,033$ 380,542$ 3,081,204$
Accrued payroll and withholdings 4,691,746 - 121,745 4,813,491
Retainage payable - 70,710 - 70,710
Other liabilities 1,143,257 - 98,211 1,241,468
Due to other funds - - 3,729 3,729
Bond anticipation notes payable - 5,210,000 6,580,000 11,790,000
Total Liabilities 7,076,632 6,739,743 7,184,227 21,000,602
Deferred Inflows of Resources
Unavailable revenue - property taxes 5,286,718 - 269,881 5,556,599
Unavailable revenue - user charges 935,623 - -935,623
Unavailable revenue - other 822,541 - 625,706 1,448,247
Total Deferred Inflows of Resources 7,044,882 - 895,587 7,940,469
Fund Balances:
Nonspendable 2,641,982 - 44,965 2,686,947
Restricted 78,354 15,904,553 21,189,588 37,172,495
Committed 7,985,981 - - 7,985,981
Assigned 6,640,550 - - 6,640,550
Unassigned 23,405,646 (2,853,187) (359,193) 20,193,266
Total Fund Balances 40,752,513 13,051,366 20,875,360 74,679,239
Total Liabilities , Deferred Inflows of Resources
and Fund Balances 54,874,027$ 19,791,109$ 28,955,174$ 103,620,310$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 42 of 142 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, 2020
Total Governmental Fund Balances 74,679,239$
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds.325,836,624
Other long-term assets are not available to pay for current period expenditures and,
therefore, are reported as unavailable revenue in the funds 7,940,469
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 135,716
Deferred outflows related to net pension liability 9,452,812
Deferred outflows related to net other postemployment benefits liability 15,497,495
Deferred inflows related to net pension liability (4,848,426)
Deferred inflows related to net other postemployment benefits liability (5,512,497)
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.7,273,694
In the Statement of Activities, interest is accrued on outstanding long-term debt
whereas in the governmental funds, interest is not reported until due.(1,038,154)
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 (91,146,209)
Unamortized premiums on bonds (4,298,888)
Landfill closure liability (14,700,000)
Compensated absences (2,991,680)
Net other postemployment benefits liability (117,724,907)
Net pension liability (63,117,400)
Net Position of Governmental Activities 135,437,888$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 43 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2020
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Revenues:
Property taxes 82,970,599$ -$ -$ 82,970,599$
Intergovernmental 11,338,049 - 4,198,350 15,536,399
Motor vehicle and other excises 3,026,917 - 37,160 3,064,077
User charges 7,147,978 - - 7,147,978
Hotel and meals taxes 6,654,185 - - 6,654,185
Community preservation surcharges - - 2,287,031 2,287,031
Licenses and permits 1,324,373 - - 1,324,373
Penalties and interest on taxes 544,079 - - 544,079
Fines and forfeitures 320,746 - - 320,746
Investment income 561,823 - 39,006 600,829
Departmental and other revenue 2,177,786 - 3,712,088 5,889,874
Contributions and donations 850 - 486,827 487,677
Total Revenues 116,067,385 - 10,760,462 126,827,847
Expenditures:
Current:
General government 10,347,487 472,854 1,814,865 12,635,206
Public safety 11,227,872 1,137,386 1,055,403 13,420,661
Education 29,804,055 1,675,464 3,452,672 34,932,191
Public works 12,936,717 4,255,276 80,251 17,272,244
Health and human services 7,127,803 203,597 663,796 7,995,196
Culture and recreation 1,136,854 - 2,672,303 3,809,157
Pension and fringe benefits 27,481,844 - - 27,481,844
State and county assessments 683,317 - - 683,317
Debt service:
Principal 4,947,026 - 529,422 5,476,448
Interest 3,232,804 - 35,583 3,268,387
Total Expenditures 108,925,779 7,744,577 10,304,295 126,974,651
Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,141,606 (7,744,577) 456,167 (146,804)
Other Financing Sources (Uses):
Issuance of bonds and notes - 2,345,000 1,000,000 3,345,000
Premiums from bonds and notes - 196,914 - 196,914
Issuance of refunding bonds 5,380,000 - - 5,380,000
Premiums from refunding bonds 941,835 - - 941,835
Payments to refunding escrow agent (6,474,575) - - (6,474,575)
Sale of capital assets - - 112,905 112,905
Transfers in 61,909 7,662,034 1,100,000 8,823,943
Transfers out (9,192,198) (61,909) (325,000) (9,579,107)
Total Other Financing Sources (Uses)(9,283,029) 10,142,039 1,887,905 2,746,915
Net Change in Fund Balances (2,141,423) 2,397,462 2,344,072 2,600,111
Fund Balances - Beginning, as restated (See Note IV)42,893,936 10,653,904 18,531,288 72,079,128
Fund Balances - Ending 40,752,513$ 13,051,366$ 20,875,360$ 74,679,239$
See acompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 44 of 142 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, 2020
Net Change in Fund Balances - Total Governmental Fund Balances 2,600,111$
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 6,027,285
Depreciation expense (6,322,507)
Net effect of reporting capital assets (295,222)
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.2,297,580
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 (3,345,000)
Premiums from general obligation bonds and notes (196,914)
Issuance of refunding bonds (5,380,000)
Premiums from refunding bonds (941,835)
Bonds refunded 6,474,575
Repayments of debt 5,356,873
Net effect of reporting long-term debt 1,967,699
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.1,519,627
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 75,066
Amortization of premiums on bonds and notes payable 387,411
Amortization of deferred charges on refunding (16,964)
Landfill closure (700,000)
Compensated absences (129,765)
Pension benefits (2,961,700)
Other postemployment benefits (6,286,083)
Net effect of reporting long-term liabilities (9,632,035)
Change in Net Position of Governmental Activities (1,542,240)$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 45 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2020
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Assets:
Current assets:
Cash and cash equivalents 2,002,142$ 7,407,973$ 6,130,818$ 11,477,442$ 27,018,375$ 7,852,865$
Investments - - - 1,104,394 1,104,394 247,579
Receivables (net):
User charges 128,679 573,268 890,349 248,563 1,840,859 -
Privilege fees - - 1,553,759 - 1,553,759 -
Intergovernmental - - 2,495,408 462,849 2,958,257 -
Inventory - 466,529 - 319,505 786,034 -
Reinsured claims receivable - - - - - 686,553
Prepaid items - - - - - 530,717
Total current assets 2,130,821 8,447,770 11,070,334 13,612,753 35,261,678 9,317,714
Noncurrent assets:
Receivables (net):
Intergovernmental - - 573,225 - 573,225 -
Nondepreciable capital assets 2,720,781 7,003,363 43,332,724 6,877,166 59,934,034 -
Capital assets (net of depreciation)8,743,875 35,839,840 75,728,105 59,304,980 179,616,800 -
Total noncurrent assets 11,464,656 42,843,203 119,634,054 66,182,146 240,124,059 -
Total Assets 13,595,477 51,290,973 130,704,388 79,794,899 275,385,737 9,317,714
Deferred Outflows of Resources
Related to losses on refunding 246,873 250,258 70,990 - 568,121 -
Related to net other postemployment benefits liability 43,153 173,966 32,393 567,472 816,984 -
Related to net pension liability 22,639 467,490 285,248 1,091,188 1,866,565 -
Total Deferred Outflows of Resources 312,665 891,714 388,631 1,658,660 3,251,670 -
Total Assets and Deferred Outflows of Resources 13,908,142$ 52,182,687$ 131,093,019$ 81,453,559$ 278,637,407$ 9,317,714$
Liabilities:
Current liabilities:
Warrants and accounts payable 4,443$ 280,358$ 690,858$ 352,794$ 1,328,453$ 2,637$
Accrued payroll and withholdings 1,949 69,901 80,923 179,992 332,765 -
Health claims incurred but not reported - - - - - 1,318,109
Accrued interest 21,074 150,019 528,459 72,362 771,914 -
Due to other funds - - - 235,621 235,621 -
Other liabilities - - - 480,243 480,243 -
Bond anticipation notes payable 250,000 1,875,000 11,047,175 4,656,200 17,828,375 -
Compensated absences - 126,220 61,552 302,100 489,872 -
Workers' compensation claims - - - - - 60,363
Bonds and notes payable 480,767 1,977,689 4,457,613 622,526 7,538,595 -
Total current liabilities 758,233 4,479,187 16,866,580 6,901,838 29,005,838 1,381,109
Noncurrent liabilities:
Due to other funds - - - 2,641,983 2,641,983 -
Compensated absences - 126,220 61,552 302,100 489,872 -
Net other postemployment benefits liability 345,721 1,393,733 259,516 4,546,320 6,545,290 -
Net pension liability 151,161 3,121,481 1,904,632 7,285,975 12,463,249 -
Bonds and notes payable 4,234,431 16,249,699 62,335,808 7,164,122 89,984,060 -
Total noncurrent liabilities 4,731,313 20,891,133 64,561,508 21,940,500 112,124,454 -
Total Liabilities 5,489,546 25,370,320 81,428,088 28,842,338 141,130,292 1,381,109
Deferred Inflows of Resources
Related to net pension liability 11,611 239,780 146,306 559,679 957,376 -
Related to net other postemployment benefits liability 300,207 218,488 84,170 506,681 1,109,546 -
311,818 458,268 230,476 1,066,360 2,066,922 -
Total Liabilities and Deferred Inflows of Resources 5,801,364 25,828,588 81,658,564 29,908,698 143,197,214 1,381,109
Net Position:
Net investment in capital assets 6,746,331 22,991,073 43,572,981 53,739,298 127,049,683 -
Unrestricted 1,360,447 3,363,026 5,861,474 (2,194,437) 8,390,510 7,936,605
Total Net Position 8,106,778$ 26,354,099$ 49,434,455$ 51,544,861$ 135,440,193 7,936,605$
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 662,911
Net position of business-type activities (page 40)136,103,104$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 46 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEAR ENDED JUNE 30, 2020
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Operating Revenues:
Charges for services 983,400$ 5,886,883$ 6,698,975$ 14,945,341$ 28,514,599$ -$
Employee contributions - - - - - 2,050,212
Employer contributions - - - - - 15,714,313
Other - 350,998 260,035 - 611,033 1,647,279
Total Operating Revenues 983,400 6,237,881 6,959,010 14,945,341 29,125,632 19,411,804
Operating Expenses:
Operating costs 261,132 2,954,649 6,006,686 13,721,891 22,944,358 -
Depreciation 273,314 1,150,809 2,653,648 2,921,155 6,998,926 -
Employee benefits - - - - - 16,929,951
Total Operating Expenses 534,446 4,105,458 8,660,334 16,643,046 29,943,284 16,929,951
Total Operating Income (loss)448,954 2,132,423 (1,701,324) (1,697,705) (817,652) 2,481,853
Nonoperating Revenues (Expenses):
Intergovernmental - - - 658,259 658,259 -
Investment income 1,712 47,746 - 100,642 150,100 5,048
Interest expense (132,716) (505,968) (1,610,418) (329,451) (2,578,553) -
Total Nonoperating Revenues (Expenses)(131,004) (458,222) (1,610,418) 429,450 (1,770,194) 5,048
Income (Loss) Before Capital Contributions
and Transfers 317,950 1,674,201 (3,311,742) (1,268,255) (2,587,846) 2,486,901
Capital Contributions
Intergovernmental - - 570,126 2,254,604 2,824,730 -
Other - - 2,181,736 - 2,181,736 -
- - 2,751,862 2,254,604 5,006,466 -
Transfers
Transfers in - - 755,164 - 755,164 -
Transfers - - 755,164 - 755,164 -
Change in Net Position 317,950 1,674,201 195,284 986,349 3,173,784 2,486,901
Net Position at Beginning of Year, 7,788,828 24,679,898 49,239,171 50,558,512 5,449,704
Net Position at End of Year 8,106,778$ 26,354,099$ 49,434,455$ 51,544,861$ 7,936,605$
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 189,321
Changes in net position of business-type activities (page 41)3,363,105$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 47 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2020
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Cash Flows from Operating Activities:
Receipts from users 968,696$ 5,898,479$ 6,582,366$ 15,166,107$ 28,615,648$ -$
Employee contributions - - - - - 2,050,212
Employer contributions - - - - - 15,714,313
Receipts from other operating revenues - 350,998 260,035 - 611,033 1,403,518
Payments to employees - (1,057,528) (1,108,567) (4,946,749) (7,112,844) -
Payments to vendors (255,633) (1,729,843) (4,420,741) (8,585,704) (14,991,921) -
Payments for interfund services used - - - - - (16,221,249)
Net Cash Provided by (Used in) Operating
Activities 713,063 3,462,106 1,313,093 1,633,654 7,121,916 2,946,794
Cash Flows from Noncapital Financing Activities:
Operating grants - - - 658,259 658,259 -
Net Cash Provided by (Used in) Noncapital
Financing Activities - - 755,164 658,259 1,413,423 -
Cash Flows from Capital and Related Financing Activities:
Proceeds from the issuance of bonds and notes - - 14,141,957 - 14,141,957 -
Sewer privilege fees - - 1,078,610 - 1,078,610 -
Proceeds from capital grants - - - 2,313,816 2,313,816 -
Acquisition and construction of capital assets - (1,262,271) (6,267,553) (4,143,813) (11,673,637) -
Premiums on general obligation bonds - - 381,041 - 381,041 -
Premiums on refunding bonds 110,610 79,264 - - 189,874 -
Proceeds from the issuance of refunding bonds 598,000 427,000 - - 1,025,000 -
Payments to refunding bond escrow agent (713,213) (509,438) - - (1,222,651) -
Proceeds from bond anticipation notes 500,000 1,875,000 10,761,450 4,656,200 17,792,650 -
Repayments of bond anticipation notes (500,000) (500,000) (18,877,731) (2,263,369) (22,141,100) -
Principal payments on bonds and notes (400,000) (1,731,000) (3,482,147) (680,000) (6,293,147) -
Interest payments on bonds and notes (163,076) (695,767) (973,962) (358,616) (2,191,421) -
Net Cash Used in Capital and Related
Financing Activities (567,679) (2,317,212) (3,238,335) (475,782) (6,599,008) -
Cash Flows from Investing Activities:
Investment income 1,712 47,746 - 100,642 150,100 5,048
Investment of operating cash - - - (413,951) (413,951) 10,712
Net Cash Provided by (Used in) Investing Activities 1,712 47,746 - (313,309) (263,851) 15,760
Net Change in Cash and Cash Equivalents 147,096 1,192,640 (1,170,078) 1,502,822 1,672,480 2,962,554
Cash and Cash Equivalents:
Beginning of the year 1,855,046 6,215,333 7,300,896 9,974,620 25,345,895 4,890,311
End of the year 2,002,142$ 7,407,973$ 6,130,818$ 11,477,442$ 27,018,375$ 7,852,865$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating Income (Loss)448,954$ 2,132,423$ (1,701,324)$ (1,697,705)$ (817,652)$ 2,481,853$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 273,314 1,150,809 2,653,648 2,921,155 6,998,926 -
Changes in assets, deferred outflows,
liabilities and deferred inflows
Receivables (14,704) 11,596 (116,609) 220,766 101,049 (243,761)
Prepaid items - - - - - 675,663
Inventory - (241,574) - 29,865 (211,709) -
Accounts payable and accrued expenses (20,054) 209,626 351,132 (291,111) 249,593 (100,699)
Accrued benefits payable 25,553 199,226 126,246 599,574 950,599 133,738
Due to other funds - - - (235,621) (235,621) -
Other liabilities - - - 86,731 86,731 -
Net Cash Provided by (Used in) Operating
Activities 713,063$ 3,462,106$ 1,313,093$ 1,633,654$ 7,121,916$ 2,946,794$
Noncash investing capital and financing activities:
Intergovernmental subsidies of debt service -$ -$ 570,126$ -$ 570,126$ -$
Amortization of bond premiums 71,602 201,688 58,033 19,377 350,700 -
Amortization of deferred charge on refunding 27,431 31,282 8,873 - 67,586 -
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 48 of 142 Comprehensive Annual Financial Report
TOWN OF NANUCKET, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2020
Other
Postemployment Private
Benefits Purpose Agency
Trust Fund Trust Funds Funds
Assets:
Cash and cash equivalents 614,823$ -$ 1,558,968$
Investments:
Equities 1,531,966 - -
Government securities 1,534,452 2,053,200 -
Receivables, net of allowance for uncollectibles - - 211,334
Total Assets 3,681,241 2,053,200 1,770,302
Liabilities:
Warrants payable - - 267
Accrued payroll and withholdings - - 73,343
Agency liabilities - - 818,210
Planning board deposits - - 878,482
Total Liabilities - - 1,770,302
Net Position:
Restricted for other postemployment benefits 3,681,241 - -
Restricted for private purposes - 2,053,200 -
Total Net Position 3,681,241$ 2,053,200$ -$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 49 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2020
Other
Postemployment Private
Benefits Purpose
Trust Fund Trust Funds
Additions
Contributions:
Employer 4,129,738$-$
Other -36,245
Total contributions 4,129,738 36,245
Investment income:
Interest and dividends 50,929 46,927
Net investment earnings 50,929 46,927
Total Additions (net)4,180,667 83,172
Deductions
Life and health insurance premiums paid for retirees 3,629,738 -
Education - scholarships -137,700
Total Deductions 3,629,738 137,700
CHANGE IN NET POSITION 550,929 (54,528)
NET POSITION AT BEGINNING OF YEAR,
as restated (See Note IV)3,130,312 2,107,728
NET POSITION AT END OF YEAR 3,681,241$2,053,200$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 50 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2020
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, 2020 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, 2020 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 142 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 142 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 142 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 142 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 142 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 yearsMachinery and equipment 5-7 yearsVehicles 5-10 yearsInfrastructure 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 142 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 they 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 principal 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 142 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, in accordance with Massachusetts General Law Chapter 40, Section 5B, which may be used for any municipal purpose upon a two-thirds vote of the Town Meeting. The balance of the fund totals $5,541,745
at June 30, 2020 and is reported as unassigned fund balance in the General Fund.
Town of Nantucket, Massachusetts Page 58 of 142 Comprehensive Annual Financial Report
The Town maintains a capital stabilization fund, in accordance with Massachusetts General Law
Chapter 40, Section 5B, 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, 2020 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 $1,791,551 of encumbrances from normal purchasing
Town Nonmajor
Capital Governmental
General Projects Funds Total
Nonspendable:
Non-current portion of interfund loans 2,641,982$ -$ -$ 2,641,982$
Nonexpendable trust funds - - 44,965 44,965
Restricted:
School grants - - 416,176 416,176
Town grants - - 2,099,306 2,099,306
School revolving - - 1,611,344 1,611,344
Ambulance - - 1,358,523 1,358,523
Beach improvements - - 1,439,104 1,439,104
Waterway improvements - - 1,360,770 1,360,770
Insurance proceeds - - 1,104,546 1,104,546
Other Town revolving - - 2,718,647 2,718,647
Capital outlay - 15,904,553 2,149,476 18,054,029
Community preservation - - 5,042,987 5,042,987
Gift funds - - 1,085,289 1,085,289
Affordable housing - - 639,937 639,937
Expendable trust funds - - 163,483 163,483
Debt service 78,354 - - 78,354
Committed:
Nursing home 4,001,204 - - 4,001,204
Solid waste landfill 2,780,267 - - 2,780,267
Capital outlay 1,179,301 - - 1,179,301
Other purposes 25,209 - - 25,209
Assigned:
Town administration 293,738 - - 293,738
Public buildings 198,365 - - 198,365
Education 533,376 - - 533,376
Public safety 267,295 - - 267,295
Other purposes 498,777 - - 498,777
Subsequent years' budget 4,848,999 - - 4,848,999
Unassigned 23,405,646 (2,853,187) (359,193) 20,193,266
40,752,513$ 13,051,366$ 20,875,360$ 74,679,239$
Town of Nantucket, Massachusetts Page 59 of 142 Comprehensive Annual Financial Report
activity in the general fund as assigned and $1,204,510 of encumbrances from Town Meeting Articles in the general fund as committed. There are no encumbrances reported in any other fund.
E. Excess of Expenditures Over Appropriations and Deficits The Town incurred deficits of $2,853,187 for capital outlays which is reported in the Town Capital Projects major fund and $359,193 for a septic program and other grants 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 $113,931,827 and the bank balance was $115,728,405. Of the Town's bank balance, $47,099,908 was covered by federal depository insurance or the Depositors Insurance Fund, $43,096,341 was collateralized and the remainder was uninsured.
Town of Nantucket, Massachusetts Page 60 of 142 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, 2020, 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 16% of its investments in the MMDT and 50% 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 6/30/20 Than 1 1-5 6-10
U.S. government obligations 9,718,762$ 7,079,742$ 2,639,020$ -$
Certificates of deposit 3,192,725 3,192,725 - -
State investment pool (MMDT)3,173,368 3,120,906 - -
Total Town investments with maturities 16,084,855$ 13,393,373$ 2,639,020$ -$
Town of Nantucket, Massachusetts Page 61 of 142 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, 2020, 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, 2020:
6/30/20 Level 1 Level 2 Level 3
Investments by fair value level
Debt securities:
U.S. Government obligations 9,718,762$ -$ 9,718,762$ -$
Total debt securities 9,718,762 - 9,718,762 -
Equity securities:
Common stock 2,501,293 2,501,293 - -
Total equity securities 2,501,293 2,501,293 - -
Mutual fund 699,722 699,722 - -
Certificates of deposit 3,192,725 - 3,192,725 -
Total investments by fair value level 16,112,502$ 3,201,015$ 12,911,487$ -$
Investments measured at amortized cost
MMDT 3,173,368
Total investments 19,285,870$
Fair Value Measurements Using
Town of Nantucket, Massachusetts Page 62 of 142 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 $6,023,847 and the bank balance was $6,005,086. Of the County's bank balance, $5,861,104 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. The County reports no investments at June 30, 2020.
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
The Land Bank is required to hold monies in reserve in accordance with certain land acquisitions and debt service requirements of bond issuances. These reserve funds are included as restricted cash in the financial statements.
Restricted Cash consist of the following as of June 30, 2020: Series A Debt Reserve $ 581,207 Mitigation agreements 66,703 $ 647,910
Custodial Credit Risk: Deposits - The Land Bank does not have a policy regarding custodial credit risk for deposits. At year-end, the carrying amount of the Land Bank’s deposits was approximately $11,600,000, of which approximately $584,000 was exposed to custodial credit risk.
Town of Nantucket, Massachusetts Page 63 of 142 Comprehensive Annual Financial Report
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 $5,247,576 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 $2,891,007 which mature in May 2022 and have a Moody’s quality rating of AAA. At June 30, 2020, all investments are categorized in Level 1 of the fair value hierarchy based on quoted market prices, except for certificates of deposit which are categorized in Level 2. The Land Bank has entered into an agreement with the Town, which requires the Land Bank to
establish a working capital reserve fund. This fund, along with the guarantee of the Town of its full faith and credit, secures the Series 2009A, 2012A and 2016A bonds outstanding at year-end. In addition, the Land Bank is prohibited from acquiring additional real estate at any time that an
amount equal to one year’s debt service relating to the bonds in the reserve fund is not on deposit. Interest Rate Risk -The Land Bank does not have a formal policy regarding interest rate risk.
B. Receivables Receivables as of year-end for the Town’s individual major and non-major governmental funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes 4,072,871$ (368,303)$ 3,704,568$
Tax liens 2,952,548 - 2,952,548
Motor vehicle and other excise taxes 1,299,679 (56,434) 1,243,245
Community preservation surcharges 269,881 - 269,881
Nursing home user charges 514,437 - 514,437
Landfill user charges 569,598 (148,412) 421,186
Ambulance user charges 1,155,706 (530,000) 625,706
Departmental and other 119,565 - 119,565
Intergovernmental 1,184,036 - 1,184,036
Total 12,138,321$ (1,103,149)$ 11,035,172$
Town of Nantucket, Massachusetts Page 64 of 142 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 $786,875 and interest in the amount of $4,894,157 until the maturity of these agreements. GAAP requires the recognition of gross debt relative to these agreements; therefore, a receivable totaling $786,875 has been reported in the Sewer Enterprise Fund.
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Water user charges 701,947$ -$ 701,947$
Sewer user charges 890,349 - 890,349
Sewer privilege fees 1,553,759 - 1,553,759
Airport user charges 248,563 - 248,563
Stop loss receivable 686,553 - 686,553
Intergovernmental 3,531,482 - 3,531,482
Total 7,612,653$ -$ 7,612,653$
Other
General Governmental
Fund Funds Total
Receivable type:
Real estate and personal property taxes 2,334,170$ -$ 2,334,170$
Tax liens 2,952,548 - 2,952,548
Motor vehicle and other excise taxes 702,976 - 702,976
Community preservation surcharges - 269,881 269,881
Nursing home user charges 514,437 - 514,437
Landfill user charges 421,186 - 421,186
Ambulance user charges - 625,706 625,706
Departmental and other 119,565 - 119,565
Total 7,044,882$ 895,587$ 7,940,469$
Town of Nantucket, Massachusetts Page 65 of 142 Comprehensive Annual Financial Report
C. Capital Assets
Capital asset activity for the year ended June 30, 2020, was as follows:
.
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land 178,870,710$ 1,701,600$ -$ 180,572,310$
Construction in process 74,827,279 6,552,968 (49,445,030) 31,935,217
Total capital assets not being depreciated 253,697,989 8,254,568 (49,445,030) 212,507,527
Capital assets being depreciated:
Buildings and improvements 69,732,616 42,475,609 (713,804) 111,494,421
Infrastructure 43,361,556 3,283,929 - 46,645,485
Machinery and equipment 10,700,710 974,522 (343,112) 11,332,120
Vehicles 10,486,931 483,687 (42,268) 10,928,350
Total capital assets being depreciated 134,281,813 47,217,747 (1,099,184) 180,400,376
Less accumulated depreciation for:
Buildings and improvements (34,007,085) (2,607,537) 713,804 (35,900,818)
Infrastructure (16,143,457) (1,867,807) - (18,011,264)
Machinery and equipment (4,935,127) (1,041,761) 343,112 (5,633,776)
Vehicles (6,762,287) (805,402) 42,268 (7,525,421)
Total accumulated depreciation (61,847,956) (6,322,507) 1,099,184 (67,071,279)
Total capital assets being depreciated, net 72,433,857 40,895,240 - 113,329,097
Total governmental activities capital assets, net 326,131,846$ 49,149,808$ (49,445,030)$ 325,836,624$
Business-Type Activities:
Capital assets not being depreciated:
Land 16,805,385$ -$ -$ 16,805,385$
Construction in process 47,570,712 10,507,070 (14,949,133) 43,128,649
Total capital assets not being depreciated 64,376,097 10,507,070 (14,949,133) 59,934,034
Capital assets being depreciated:
Buildings and improvements 59,349,393 6,495,327 (42,393) 65,802,327
Infrastructure 176,077,898 7,922,763 (560,028) 183,440,633
Machinery and equipment 21,558,613 1,043,494 (41,163) 22,560,944
Vehicles 7,690,880 654,116 (12,373) 8,332,623
Total capital assets being depreciated 264,676,784 16,115,700 (655,957) 280,136,527
Less accumulated depreciation for:
Buildings and improvements (11,692,764) (1,583,995) 42,393 (13,234,366)
Infrastructure (62,541,814) (3,976,054) 560,028 (65,957,840)
Machinery and equipment (15,236,508) (871,546) 53,536 (16,054,518)
Vehicles (4,705,672) (567,331) - (5,273,003)
Total accumulated depreciation (94,176,758) (6,998,926) 655,957 (100,519,727)
Total capital assets being depreciated, net 170,500,026 9,116,774 - 179,616,800
Total business-type activities capital assets, net 234,876,123$ 19,623,844$ (14,949,133)$ 239,550,834$
Town of Nantucket, Massachusetts Page 66 of 142 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 105,203 - - 105,203
Total capital assets not being depreciated 2,720,781 - - 2,720,781
Capital assets being depreciated:
Buildings and improvements 803,999 - - 803,999
Infrastructure 9,800,424 - (9,859) 9,790,565
Machinery and equipment 780,697 - - 780,697
Total capital assets being depreciated 11,385,120 - (9,859) 11,375,261
Less accumulated depreciation for:
Buildings and improvements (193,822) (29,827) - (223,649)
Infrastructure (2,056,521) (192,053) 9,859 (2,238,715)
Machinery and equipment (117,588) (51,434) - (169,022)
Total accumulated depreciation (2,367,931) (273,314) 9,859 (2,631,386)
Total capital assets being depreciated, net 9,017,189 (273,314) - 8,743,875
Total Siasconset Water capital assets, net 11,737,970$ (273,314)$ -$ 11,464,656$
Business-type Activities: Wannacomet Water
Capital assets not being depreciated:
Land 5,434,455$ -$ -$ 5,434,455$
Construction in process 381,805 1,187,103 - 1,568,908
Total capital assets not being depreciated 5,816,260 1,187,103 - 7,003,363
Capital assets being depreciated:
Buildings and improvements 5,584,467 - (20,276) 5,564,191
Infrastructure 41,188,607 - (409) 41,188,198
Machinery and equipment 1,764,933 28,003 (8,855) 1,784,081
Vehicles 300,271 47,165 - 347,436
Total capital assets being depreciated 48,838,278 75,168 (29,540) 48,883,906
Less accumulated depreciation for:
Buildings and improvements (483,335) (167,884) 20,276 (630,943)
Infrastructure (10,708,035) (856,737) 409 (11,564,363)
Machinery and equipment (522,530) (89,617) 8,855 (603,292)
Vehicles (208,897) (36,571) - (245,468)
Total accumulated depreciation (11,922,797) (1,150,809) 29,540 (13,044,066)
Total capital assets being depreciated, net 36,915,481 (1,075,641) - 35,839,840
Total Wannacomet Water capital assets, net 42,731,741$ 111,462$ -$ 42,843,203$
Town of Nantucket, Massachusetts Page 67 of 142 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 44,913,515 5,669,088 (13,625,462) 36,957,141
Total capital assets not being depreciated 51,289,098 5,669,088 (13,625,462) 43,332,724
Capital assets being depreciated:
Buildings and improvements 368,790 5,700,965 (22,117) 6,047,638
Infrastructure 84,057,722 7,106,566 (549,760) 90,614,528
Machinery and equipment 16,434,011 943,682 (32,308) 17,345,385
Vehicles 2,125,758 472,714 - 2,598,472
Total capital assets being depreciated 102,986,281 14,223,927 (604,185) 116,606,023
Less accumulated depreciation for:
Buildings and improvements (206,527) (100,685) 22,117 (285,095)
Infrastructure (24,298,613) (1,772,203) 549,760 (25,521,056)
Machinery and equipment (13,461,985) (524,734) 32,308 (13,954,411)
Vehicles (861,330) (256,026) - (1,117,356)
Total accumulated depreciation (38,828,455) (2,653,648) 604,185 (40,877,918)
Total capital assets being depreciated, net 64,157,826 11,570,279 - 75,728,105
Total Sewer capital assets, net 115,446,924$ 17,239,367$ (13,625,462)$ 119,060,829$
Capital assets not being depreciated:
Land 2,379,769$ -$ -$ 2,379,769$
Construction in process 2,170,189 3,650,879 (1,323,671) 4,497,397
Total capital assets not being depreciated 4,549,958 3,650,879 (1,323,671) 6,877,166
Capital assets being depreciated:
Infrastructure 41,031,145 816,197 - 41,847,342
Buildings and improvements 52,592,137 794,362 - 53,386,499
Machinery and equipment 2,578,972 71,809 - 2,650,781
Vehicles 5,264,851 134,237 (12,373) 5,386,715
Total capital assets being depreciated 101,467,105 1,816,605 (12,373) 103,271,337
Less accumulated depreciation for:
Infrastructure (25,478,645) (1,155,061) - (26,633,706)
Buildings and improvements (10,809,080) (1,285,599) - (12,094,679)
Machinery and equipment (1,134,405) (205,761) 12,373 (1,327,793)
Vehicles (3,635,445) (274,734) - (3,910,179)
Total accumulated depreciation (41,057,575) (2,921,155) 12,373 (43,966,357)
Total capital assets being depreciated, net 60,409,530 (1,104,550) - 59,304,980
Total Nantucket Memorial Airport capital assets, net 64,959,488$ 2,546,329$ (1,323,671)$ 66,182,146$
Business-type Activities: Nantucket Memorial Airport
Town of Nantucket, Massachusetts Page 68 of 142 Comprehensive Annual Financial Report
D. Interfund Receivables, Payables and Transfers
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:Business-Type Activities:
General government 389,181$ Water 1,424,123$
Public safety 1,445,427 Sewer 2,653,648
Education 2,028,505 Airport 2,921,155
Public works 2,297,598 6,998,926$
Health and human services 161,796
6,322,507$
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 (21,071) - - (21,071)
Total capital assets being depreciated, net - - - -
Total Nantucket County capital assets, net 3,283,842$ -$ -$ 3,283,842$
Discretely Presented Component Unit - Nantucket Islands Land Bank
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 371,152,479$ 18,888,116$ -$ 390,040,595$
Capital assets being depreciated:
Buildings, improvements and equipment 35,398,878 10,131,971 (249,489) 45,281,360
Less: accumulated depreciation (12,559,540) (1,272,217) 147,331 (13,684,426)
Total capital assets being depreciated, net 22,839,338 8,859,754 (102,158) 31,596,934
Total Nantucket Islands Land Bank
capital assets, net 393,991,817$ 27,747,870$ (102,158)$ 421,637,529$
Town of Nantucket, Massachusetts Page 69 of 142 Comprehensive Annual Financial Report
The composition of interfund balances at June 30, 2020 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.
The composition of interfund transfers for the fiscal year ended June 30, 2020, was as follows:
E. Temporary Debt The Town is authorized to borrow on a temporary basis to fund the following: Current Operating Costs – Prior to collection of revenues, expenditures may be financed through the issuance of revenue or tax anticipation notes (RANS or TANS). Capital Projects and Other Approved Costs – Projects may be temporarily funded through the issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). In certain cases, prior to the issuance of these temporary notes, the governing body must take the necessary legal steps to authorize the issuance of the general obligation bonds. Temporary notes may not exceed the aggregate amount of bonds authorized or the grant award amount and carry maturity dates that are limited by state law. Interest expenditures and expenses for temporary borrowings are accounted for in the general fund and enterprise funds, respectively.
Short-term (BANs) issued for nonmajor governmental funds were used for septic betterments ($2,000,000), roadways, sidewalks and bike paths ($1,760,000), town pier ($400,000), nursing
Amount
General Fund Nonmajor Governmental Funds -3,729$
Road Improvements
General Fund Enterprise Fund -
Nantucket Memorial Airport 2,877,604
Total 2,881,333$
Receivable Fund Payable Fund
Town Nonmajor
General Capital Governmental
Fund Projects Funds Sewer Total
General Fund -$ 7,337,034$ 1,100,000$ 755,164$ 9,192,198$ (1)
Town Capital Projects 61,909 - - - 61,909 (2)
Nonmajor Governmental Funds - 325,000 - - 325,000 (2)
Total 61,909$ 7,662,034$ 1,100,000$ 755,164$ 9,579,107$
(1) Transfer to town capital projects for various capital outlays; transfers to nonmajor funds to fund community school programs and emergency expenditures, and transfers to sewer fund for debt service and capital outlays.
(2) Transfers to general fund and town capital projects for capital outlays.
Transfers In
Transfers Out
Town of Nantucket, Massachusetts Page 70 of 142 Comprehensive Annual Financial Report
home construction ($800,000), fire station construction ($1,000,000), stormwater improvements ($850,000), affordable housing acquisitions ($4,580,000) and other building projects ($400,000).
Those issued for business-type funds were issued for water projects ($2,125,000), sewer projects ($11,047,175) and airport projects ($4,656,200). 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 $2,000,000 and $3,801,862 are reported in the non-major governmental funds and business-type funds, respectively. Temporary notes outstanding at June 30, 2020, are payable as follows:
F. Long–Term Obligations
The following reflects the current year activity in the long-term liability accounts:
Interest Maturity July 1,June 30,
Type Rate Date 2019 Additions Retirements 2020
MCWT 0.00% 12/31/19 1,000,000$ -$ (1,000,000)$ -$
MCWT 0.00% 12/31/20 2,000,000 - - 2,000,000
BAN 2.50% Matured 2,925,000 - (2,925,000) -
BAN 2.75% Matured 1,200,000 - (1,200,000) -
BAN 2.00% Matured - 425,000 (425,000) -
BAN 1.25% 11/13/20 - 6,205,000 - 6,205,000
BAN 1.50% 11/13/20 - 3,585,000 - 3,585,000
Total Governmental Notes 7,125,000 10,215,000 (5,550,000) 11,790,000
BAN 2.50% Matured 10,731,856 - (10,731,856) -
BAN 3.25% Matured 146,000 - (146,000) -
BAN 2.75% Matured 3,339,760 - (3,339,760) -
BAN 2.70% Matured 211,922 - (211,922) -
BAN 2.00% Matured - 439,000 (439,000) -
BAN 1.25% 11/13/20 - 9,499,313 - 9,499,313
BAN 1.50% 11/13/20 - 4,527,200 - 4,527,200
MCWT 2.00% Matured 5,873,812 - (5,873,812) -
MCWT 2.00% Matured 1,587,750 - (1,587,750) -
MCWT 2.00% 12/31/21 - 3,801,862 - 3,801,862
Total Business-Type Notes 21,891,100 18,267,375 (22,330,100) 17,828,375
Total Notes Payable 29,016,100$ 28,482,375$ (27,880,100)$ 29,618,375$
Town of Nantucket, Massachusetts Page 71 of 142 Comprehensive Annual Financial Report
The Town’s governmental activities liabilities will be liquidated by the general fund. The business-type liabilities will be liquidated by the respective business-type funds. G. Long–Term Debt 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
Beginning Ending Due within
Balance Additions Deletions Balance one year
Governmental Activities:
General obligation bonds 81,224,568$ 7,725,000$ (11,102,881)$ 77,846,687$ 4,879,924$
Unamortized bond premium 3,547,550 1,138,749 (387,411) 4,298,888 387,411
Notes from direct borrowings and placements 13,028,089 1,000,000 (728,567) 13,299,522 792,413
Workers' compensation 114,965 239,636 (294,238) 60,363 60,363
Landfill closure 14,000,000 700,000 - 14,700,000 -
Compensated absences 2,861,915 1,560,722 (1,430,957) 2,991,680 1,495,840
Net other postemployment benefits liability 108,942,353 25,758,921 (16,976,367) 117,724,907 -
Net pension liability 65,851,786 17,974,260 (20,708,646) 63,117,400 -
Total Governmental Activities 289,571,226$ 56,097,288$ (51,629,067)$ 294,039,447$ 7,615,951$
Business-Type Activities - Siasconset Water:
General obligation bonds 4,814,900$ 598,000$ (1,100,000)$ 4,312,900$ 395,000$
Unamortized bond premium 363,290 110,610 (71,602) 402,298 85,767
Net other postemployment benefits liability 594,273 73,288 (321,840) 345,721 -
Net pension liability 157,710 43,047 (49,596) 151,161 -
Total Siasconset Water 5,930,173 824,945 (1,543,038) 5,212,080 480,767
Business-Type Activities - Wannacomet Water:
General obligation bonds 19,005,400 427,000 (2,231,000) 17,201,400 1,785,000
Unamortized bond premium 1,148,412 79,264 (201,688) 1,025,988 192,689
Compensated absences 274,107 115,386 (137,053) 252,440 126,220
Net other postemployment benefits liability 1,309,662 349,622 (265,551) 1,393,733 -
Net pension liability 3,256,710 888,920 (1,024,149) 3,121,481 -
Total Wannacomet Water 24,994,291 1,860,192 (3,859,441) 22,995,042 2,103,909
Business-Type Activities - Sewer:
General obligation bonds 3,439,250 4,575,000 (393,000) 7,621,250 628,000
Unamortized bond premium 290,706 381,041 (58,033) 613,714 105,682
Notes from direct borrowings and placements 54,391,871 7,461,562 (3,294,976) 58,558,457 3,723,931
Compensated absences 100,088 73,060 (50,044) 123,104 61,552
Net other postemployment benefits liability 157,868 194,581 (92,933) 259,516 -
Net pension liability 1,987,145 542,392 (624,905) 1,904,632 -
Total Sewer 60,366,928 13,227,636 (4,513,891) 69,080,673 4,519,165
Business-Type Activities - Nantucket Memorial Airport:
Bond and note debt 8,370,000 - (680,000) 7,690,000 605,000
Unamortized bond premium 116,025 - (19,377) 96,648 17,526
Compensated absences 589,268 309,566 (294,634) 604,200 302,100
Net other postemployment benefits liability 3,869,632 1,336,888 (660,200) 4,546,320 -
Net pension liability 7,601,619 2,074,864 (2,390,508) 7,285,975 -
Total Nantucket Memorial Airport 20,546,544 3,721,318 (4,044,719) 20,223,143 924,626
Total Business-Type Activities 111,837,936$ 19,634,091$ (13,961,089)$ 117,510,938$ 8,028,467$
Town of Nantucket, Massachusetts Page 72 of 142 Comprehensive Annual Financial Report
may authorize debt in excess of that limit for specific purposes. Such debt, when issued, is designated as being “outside the debt limit”.
The following is a summary of outstanding long-term debt obligations as of June 30, 2020:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Governmental Activities:
General Obligation Bonds 2.00 - 5.00%72,553,118$ 2,345,000$ (9,515,881)$ 65,382,237$
General Obligation Refunding Bonds 1.50 - 5.00%8,671,450 5,380,000 (1,587,000) 12,464,450
Total General Obligation Bonds 81,224,568 7,725,000 (11,102,881) 77,846,687
Add: Unamortized bond premium 3,547,550 1,138,749 (387,411) 4,298,888
Total General Obligation Bonds, net 84,772,118 8,863,749 (11,490,292) 82,145,575
Massachusetts Clean Water Trust 0.00 - 2.42%13,028,089 1,000,000 (728,567) 13,299,522
Total notes from direct borrowings and placements 13,028,089 1,000,000 (728,567) 13,299,522
Total Governmental Activities debt 97,800,207$ 9,863,749$ (12,218,859)$ 95,445,097$
Business-Type Activities - Siasconset Water:
General Obligation Bonds 2.00 - 5.00%1,185,000$ -$ (795,000)$ 390,000$
General Obligation Refunding Bonds 2.00 - 4.00%3,629,900 598,000 (305,000) 3,922,900
Total General Obligation Bonds 4,814,900 598,000 (1,100,000) 4,312,900
Add: Unamortized bond premium 363,290 110,610 (71,602) 402,298
Total General Obligation Bonds, net 5,178,190$ 708,610$ (1,171,602)$ 4,715,198$
Business-Type Activities - Wannacomet Water:
General Obligation Bonds 2.00 - 5.00%10,321,000$ -$ (1,171,000)$ 9,150,000$
General Obligation Refunding Bonds 1.50 - 5.00%8,684,400 427,000 (1,060,000) 8,051,400
Total General Obligation Bonds 19,005,400 427,000 (2,231,000) 17,201,400
Add: Unamortized bond premium 1,148,412 79,264 (201,688) 1,025,988
Total General Obligation Bonds, net 20,153,812$ 506,264$ (2,432,688)$ 18,227,388$
Business-Type Activities - Sewer:
General Obligation Bonds 2.00 - 5.00%1,420,000$ 4,575,000$ (110,000)$ 5,885,000$
General Obligation Refunding Bonds 2.00 - 5.00%2,019,250 - (283,000) 1,736,250
Total General Obligation Bonds 3,439,250 4,575,000 (393,000) 7,621,250
Add: Unamortized bond premium 290,706 381,041 (58,033) 613,714
Total General Obligation Bonds, net 3,729,956 4,956,041 (451,033) 8,234,964
Massachusetts Clean Water Trust 0.00 - 5.50%54,391,871 7,461,562 (3,294,976) 58,558,457
Total notes from direct borrowings and placements 54,391,871 7,461,562 (3,294,976) 58,558,457
Total debt 58,121,827$ 12,417,603$ (3,746,009)$ 66,793,421$
Business-Type Activities - Nantucket Memorial Airport:
General Obligation Bonds 2.00 - 5.00%8,370,000$ -$ (680,000)$ 7,690,000$
Total General Obligation Bonds 8,370,000 - (680,000) 7,690,000
Add: Unamortized bond premium 116,025 - (19,377) 96,648
Total General Obligation Bonds, net 8,486,025$ -$ (699,377)$ 7,786,648$
Total Business-Type Activities debt 91,939,854$ 13,632,477$ (8,049,676)$ 97,522,655$
Town of Nantucket, Massachusetts Page 73 of 142 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
2021 4,879,924$ 2,833,208$ 792,413$ 286,186$
2022 4,878,988 2,577,746 807,753 269,865
2023 4,866,073 2,373,043 823,447 253,189
2024 4,732,180 2,182,333 791,660 236,153
2025 3,751,309 2,000,703 808,086 218,746
2026-2030 18,535,746 7,462,431 3,863,511 829,341
2031-2035 16,321,132 4,453,863 3,244,287 441,939
2036-2040 15,806,335 1,784,588 2,168,365 81,724
2041-2042 4,075,000 128,360 - -
Total 77,846,687$ 25,796,275$ 13,299,522$ 2,617,143$
Business-Type Activities: Siasconset Water
2021 395,000$ 150,923$ -$ -$
2022 410,000 130,796 - -
2023 428,000 113,870 - -
2024 440,000 97,960 - -
2025 455,000 81,511 - -
2026-2030 2,044,900 156,337 - -
2031-2035 120,000 11,669 - -
2036-2039 20,000 300 - -
4,312,900$ 743,366$ -$ -$
Business-Type Activities: Wannacomet Water
2021 1,785,000$ 621,555$ -$ -$
2022 1,638,000 550,404 - -
2023 1,624,000 485,530 - -
2024 1,644,000 420,396 - -
2025 1,656,000 353,760 - -
2026-2030 5,194,400 1,017,155 - -
2031-2035 2,360,000 416,250 - -
2036-2039 1,300,000 85,200 - -
17,201,400$ 3,950,250$ -$ -$
Business-Type Activities: Sewer
2021 628,000$ 304,041$ 3,723,931$ 1,292,518$
2022 582,000 239,169 3,677,178 1,201,199
2023 577,000 212,039 3,738,692 1,101,106
2024 570,000 185,174 3,660,169 995,678
2025 525,000 159,049 3,586,171 909,065
2026-2030 2,274,250 469,272 15,270,596 3,565,112
2031-2035 1,340,000 192,219 14,795,408 1,957,656
2036-2039 1,125,000 64,407 10,106,312 460,253
7,621,250$ 1,825,370$ 58,558,457$ 11,482,587$
Business-Type Activities: Nantucket Memorial Airport
2021 605,000$ 294,362$ -$ -$
2022 610,000 270,938 - -
2023 625,000 247,187 - -
2024 505,000 225,988 - -
2025 505,000 205,962 - -
2026-2030 2,455,000 762,939 - -
2031-2035 2,100,000 310,931 - -
2036-2039 285,000 13,894 - -
7,690,000$ 2,332,201$ -$ -$
and PlacementsGeneral Obligation Bonds
Town of Nantucket, Massachusetts Page 74 of 142 Comprehensive Annual Financial Report
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.
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, 2020, $2,165,000 of defeased bonds remains outstanding.
The following represents authorized and unissued debt as of June 30, 2020:
Discretely Presented Component Unit – Nantucket Islands Land Bank
Project Amount
Governmental:
Fire station 2,211,394$
School building 2,789,319
Public works 10,910,000
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 14,017,842
Sewer projects 120,181,056
Nantucket Memorial Airport 36,939,915
Total Authorized and Unissued 241,336,013$
The following reflects the activity in the long-term liability accounts for the Land Bank for the year ended June 30, 2020:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Bond and note indebtedness 23,985,841$ 3,260,676$ (6,361,615)$ 20,884,902$ 5,933,545$
Capital leases 213,145 - (73,989) 139,156 64,279
Net OPEB liability 1,274,683 102,517 - 1,377,200 -
Net pension liability 2,180,714 - (144,682) 2,036,032 -
Total Land Bank 27,654,383$ 3,363,193$ (6,580,286)$ 24,437,290$ 5,997,824$
Town of Nantucket, Massachusetts Page 75 of 142 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 contributes to the Barnstable County Retirement Association (the System), a cost-sharing multiple-employer defined benefit pension plan established under Chapter 32 of the Commonwealth of Massachusetts General Laws (MGL) and administered by the Barnstable County Retirement Board. Stand-alone audited financial statements for the year ended December 31, 2019 were issued and may be obtained by writing to the Barnstable County
Retirement Association, 750 Attucks Lane, Hyannis MA 02601.
The following is a summary of outstanding long-term debt obligations as of June 30, 2020:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Notes payable 3.00 - 6.06%8,575,000$ 3,500,000$ (4,208,333)$ 7,866,667$
General obligation bonds 2.00 - 5.00%15,250,000 - (2,370,000) 12,880,000
Total bonds and notes 23,825,000 3,500,000 (6,578,333) 20,746,667
Add: Unamortized bond premium 659,818 - (72,477) 587,341
Less: Discounts on notes payable (498,977) (239,324) 289,195 (449,106)
Total Land Bank 23,985,841$ 3,260,676$ (6,361,615)$ 20,884,902$
Year Ending
June 30 Principal Interest Total
2021 6,303,333$ 636,875$ 6,940,208$
2022 4,663,334 456,050 5,119,384
2023 1,455,000 258,608 1,713,608
2024 1,260,000 211,463 1,471,463
2025 1,305,000 176,638 1,481,638
2026-2030 4,540,000 381,260 4,921,260
2031-2032 1,220,000 32,370 1,252,370
Total 20,746,667$ 2,153,264$ 22,899,931$
Town of Nantucket, Massachusetts Page 76 of 142 Comprehensive Annual Financial Report
Membership – Membership in the System as of December 31, 2019, was as follows:
Benefit Terms – The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of the MGL assigns authority to establish and amend benefit
provisions of the plan. Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth’s state law during those years are borne by the Commonwealth and are deposited into the pension fund directly. Cost-of-living
adjustments granted after 1997 must be approved by the Board and are borne by the System. 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. 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 retirement 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. Contributions Requirements – The System 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 contributed $6,657,584 to the System in fiscal year 2020, which was the actuarially determined contribution requirement for the fiscal year and represented 21.85% of covered
payroll. Net Pension Liability – At June 30, 2020, the Town reported a liability of $75,580,649 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2019 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2020. The Town’s proportion of the net pension liability is based on a projection of the Town’s long-term share of contributions to the System relative to the projected contributions of all employers. The Town’s proportion was approximately 10.06% at December 31, 2019. 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, 2020 and included the following significant assumptions:
Retired participants and beneficiaries
receiving benefits 3,326
Inactive participants entitled to a return
of their employee contributions 654
Inactive participants with a vested right
to a deferred or immediate benefit 133
Active participants 4,799
Total 8,912
Town of Nantucket, Massachusetts Page 77 of 142 Comprehensive Annual Financial Report
There was one significant change in assumption between fiscal year 2020 and 2019 which related
to the decrease in discount rate from 7.375% to 7.15%. Pension Expense – The Town recognized $10,204,105 in pension expense in the statement of activities in fiscal year 2020. Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2020, 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:
Investment rate of return Full prefunding: 7.15% per year, net of investment expenses
Discount Rate 7.150%
Inflation 3.00%
Salary Increases 3.25%
Cost of Living Adjustment 3% of first $18,000
Pre-Retirement Mortality RP-2014 Employee Mortality Table projected generationally
with Scale MP - 2017
Post-Retirement Mortality RP-2014 Healthy Annuitant Mortaility Table projected
generationally with Scale MP-2017
Disabled Mortality RP-2014 Healthy Annuitant Mortaility Table set forward
one year projected generationally with Scale MP-2017
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual earnings - 4,516,809
Changes in assumptions 8,786,767 -
Changes in proportion differences 2,532,610 -
Differences between expected and actual experience - 637,079
Changes in proportion differences - 651,914
11,319,377$ 5,805,802$
Year Ended June 30,Amount
2021 1,576,029$
2022 1,491,606
2023 2,251,701
2024 (683,133)
2025 877,372
Total 5,513,575$
Town of Nantucket, Massachusetts Page 78 of 142 Comprehensive Annual Financial Report
Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate assumed plan member contributions
were made at the current contribution rate and that employer contributions will be made at rates equal to the actuarially determined contribution rates and the member rate. Based on those assumptions, the Retirement System’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 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. The target allocations and best estimates of arithmetic real returns for each major asset class are summarized in the following table:
Sensitivity Analysis – The following presents the Town’s proportionate share of the net pension liability calculated using the discount rate of 7.15% as well as the Town’s proportionate share of the net pension liability using a discount rate that is one percentage point lower or one percentage point higher than the current rate:
Current Rate 1% lower Current 1% greater
Net Pension Liability 7.150% 99,392,401$ 75,580,649$ 55,576,033$
Discount Rate
Expected
Target Investment Rate
Asset Class Allocation of Return
Domestic Equity 21.00%6.15%
International Equity 13.00%6.78%
International Emerging Markets 5.00%8.65%
Core fixed income 15.00%1.11%
High Yield Fixed Income 8.00%3.51%
Real Estate 10.00%4.33%
Commodities 4.00%4.13%
Hedge Fund, GTAA, Risk Parity 11.00%3.19%
Private Equity 13.00%9.99%
100.00%
Real rate of return 5.375%
Town of Nantucket, Massachusetts Page 79 of 142 Comprehensive Annual Financial Report
B. Massachusetts Teachers’ Retirement System
Teachers and certain administrative employees of the Town’s school department participate in the Massachusetts Teachers’ Retirement System (“MTRS”), a cost-sharing multiple employer defined benefit pension plan. MTRS is managed by the Commonwealth on behalf of municipal teachers and municipal teacher retirees. Like the Retirement System, MTRS was established under Chapter 32 of Massachusetts General Laws. The Commonwealth’s legislature has the authority to amend or modify the MTRS’s funding policies. The Commonwealth is a nonemployer contributor to the MTRS and is legally responsible by statute for all actuarially determined employer contributions and future benefit requirements of the MTRS. Therefore, the Town is considered to be in a special funding situation as defined by GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
For the year ended June 30, 2020, the Commonwealth contributed $3,495,525 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 0.242121%, 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 $ 61,048,438 $ (61,048,438) $ — Pension expense 7,403,183 (7,403,183) — The Town has recognized intergovernmental revenue and pension expense of $7,403,183 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 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.
Town of Nantucket, Massachusetts Page 80 of 142 Comprehensive Annual Financial Report
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, 2020, 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. GASB Statement No. 75
OPEB Plan disclosures that impact the Town’s net OPEB liability using a measurement date of June 30, 2020 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, 2020, the Town’s contribution rate was approximately 11.1% of covered-employee payroll. Net OPEB Liability – The Town’s net OPEB liability was measured as of June 30, 2020 using an actuarial valuation as of July 1, 2018. The components of the net OPEB liability of the Town at June 30, 2020 were as follows:
Active employees 603
Inactive employees or
benefiiaries currently
receiving benefits 354
Total 957
Total OPEB Liability 127,951,438$
Plan fiduciary net position (3,681,241)
Net OPEB liability 124,270,197$
Plan fiduciary net position as
a percentage of the total
OPEB liability 2.9%
Town of Nantucket, Massachusetts Page 81 of 142 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 4.00% to 3.75%.
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.
Investment rate of return 4.99%, net of OPEB plan investment expense,
including inflation.
Muncipal bond rate 2.66% as of June 30, 2020
Discount Rate 3.75%, 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 2.50% 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 82 of 142 Comprehensive Annual Financial Report
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 30.00% 4.80%
Interntional Equity - Developed Market 5.00% 5.45%
Domestic Fixed Income 50.00% 2.05%
Cash 15.00% 0.00%
100.00%
Real rate of return 2.74%
Inflation assumption 2.50%
Total nominal rate of return 5.24%
Investment expense -0.25%
Net investment return 4.99%
Discount Rate
Current Rate 1% Decrease At Current Rate 1% Increase
Net OPEB liability 3.75% 145,775,050$ 124,270,197$ 107,255,519$
Net OPEB liability 4.50% 104,963,949$ 124,270,197$ 149,268,170$
Health Care Trend Rate
Town of Nantucket, Massachusetts Page 83 of 142 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, 2020:
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year ended June 30, 2020, the Town recognized OPEB expense of $10,765,317. Deferred outflows of resources and deferred inflows of resources related to OPEB at June 30, 2020 were reported as follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2019 118,004,099$ 3,130,312$ 114,873,787$
Changes for the year:
Service cost 4,489,938 - 4,489,938
Interest 4,827,879 - 4,827,879
Change in assumptions 4,986,701 - 4,986,701
Difference between expected
and actual experience (727,441) - (727,441)
Net investment income - 50,929 (50,929)
Employer contributions - 4,129,738 (4,129,738)
Benefit payments withdrawn from trust (3,629,738) (3,629,738) -
Net changes 9,947,339 550,929 9,396,410
Balances at June 30, 2020 127,951,438$ 3,681,241$ 124,270,197$
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual earnings 37,405$ -$
Changes of assumptions 11,450,128 -
Differences between actual and expected experience 4,023,886 5,818,983
15,511,419$ 5,818,983$
Town of Nantucket, Massachusetts Page 84 of 142 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:
GASB Statement No. 74
OPEB Plan disclosures that impact the Town’s net OPEB liability using a measurement date of June 30, 2020 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, 2020 the annual money-weighted rate of return on investments, net of investment expense, was 1.63%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 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.
June 30
2021 1,616,025$
2022 1,616,023
2023 1,699,331
2024 3,398,977
2025 1,224,680
thereafter 137,400
9,692,436$
Town of Nantucket, Massachusetts Page 85 of 142 Comprehensive Annual Financial Report
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, 2020, the amount of the liability for IBNR health insurance claims totaled $1,318,109. 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, 2018, are as follows: Balance at
Beginning of Year
Claims and
Changes in Estimates
Claims Payments
Balance at End of Year
Current Portion
Fiscal Year 2020 $1,129,769 $14,753,268 $(14,564,928) $1,318,109 $1,318,109 Fiscal Year 2019 1,138,217 15,527,876 (15,536,324) 1,129,769 1,129,769
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, 2020, the amount of the liability for workers’ compensation claims totaled $60,263. This liability is the best estimate based on available information. Changes in the reported liability since July 1, 2018, are as follows: Balance at Beginning of Year
Claims and Changes in Estimates
Claims Payments
Balance at End of Year
Current Portion Fiscal Year 2020 $114,965 $239,636 $(294,238) $ 60,363 $ 60,363
Fiscal Year 2019 95,805 373,414 (354,254) 114,965 114,965 E. Commitments The Town is in the planning and construction stages of several major capital projects including a
fire station, sewer and waste water treatment plant improvements. The Town has entered into contracts to expend approximately $15,000,000, $16,000,000 and $7,000,000, 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, 2020, 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, 2020. 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
Town of Nantucket, Massachusetts Page 86 of 142 Comprehensive Annual Financial Report
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 is expected to be approved by the DEP in 2021. The Town has recognized a closure liability of $14,700,000 in the Governmental Activities. This liability is based on estimates of the cost of all closure and post-closure care for 30 years. Actual costs may change due to inflation, changes in technology, or changes in regulations. H. Implementation of GASB pronouncements Current Year Implementations – None
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. As amended, 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 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefines the manner in which long-term leases are accounted and reported. As amended, the provisions of this Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal year 2022). 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. As amended, the provisions of this Statement are effective for financial reporting periods beginning after December 15, 2020 (fiscal
Town of Nantucket, Massachusetts Page 87 of 142 Comprehensive Annual Financial Report
year 2022). 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. As amended, 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 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. As amended, the provisions of this Statement are effective for financial reporting periods beginning after December 15, 2021 (fiscal year 2023). The Town is currently evaluating whether adoption
will have a material impact on the financial statements.
In March 2020, the GASB issued GASB Statement No. 93, Replacement of Interbank Offered
Rates. The objective of this Statement is to address accounting and financial reporting implications that result from the replacement of an interbank offered rate. As amended, the provisions of this Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal year 2023). The Town is currently evaluating whether adoption will have a material impact on the financial statements.
In March 2020, the GASB issued GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issued related to public-private and public-public partnership arrangements. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2024). The Town is currently evaluating
whether adoption will have a material impact on the financial statements.
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information
Technology Arrangements. The objective of this Statement is to address accounting for subscription-based information technology arrangements to government end users based on the standards established in Statement No. 87, as amended. The provisions of this Statement are
effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2024). The Town is currently evaluating whether adoption will have a material impact on the financial statements.
In June 2020, the GASB issued GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The objective of this Statement is to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2)
mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code Section 457 deferred compensation plans that meet
Town of Nantucket, Massachusetts Page 88 of 142 Comprehensive Annual Financial Report
the definition of a pension plan and for benefits provided through those plans. The provisions of this Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal
year 2023). The Town is currently evaluating whether adoption will have a material impact on the financial statements.
IV. Prior Period Restatements
The Town reclassified its affordable housing trust activities to a nonmajor governmental fundfrom a private purpose trust fund which caused an increase in the Town’s governmental activitiesnet position and nonmajor governmental fund balance and a decrease in the private purpose trustfund balance reported at June 30, 2019.
The impact is illustrated in the table below:
Nonmajor Private
Governmental Governmental Purpose Trust
Activities Funds Funds
Prior year as presented 135,803,491$ 17,354,651$ 3,284,365$
Reclass affordable housing trust 1,176,637 1,176,637 (1,176,637)
As restated 136,980,128$ 18,531,288$ 2,107,728$
Town of Nantucket, Massachusetts Page 89 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 90 of 142 Comprehensive Annual Financial Report
Required Supplementary Information
Town of Nantucket, Massachusetts Page 91 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2020
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2020 2019 2018 2017 2016 2015
Town's proportion of the net pension
liability (asset)10.06%9.98%9.69%9.90%9.52%9.51%
Town's proportionate share of the net
pension liability (asset)75,581$ 78,855$ 65,965$ 69,566$ 59,964$ 53,675$
Town's covered payroll 30,315$ 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 249.32%271.71%244.18%253.65%232.18%215.23%
Plan fiduciary net position as a percentage
of the total pension liability 62.34%57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE TOWN CONTRIBUTIONS TO PENSION PLAN
2020 2019 2018 2017 2016 2015
Actuarially determined contribution 6,624$ 6,271$ 5,785$ 5,612$ 5,143$ 4,959$
Contributions in relation to the
actuarially determined contribution 6,658 6,271 5,785 5,612 5,143 4,959
Contribution deficiency (excess)(34)$ -$ -$ -$ -$ -$
Town's covered payroll 31,782$ 29,437$ 27,234$ 27,179$ 26,023$ 25,018$
Contributions as a percentage of
covered payroll 20.9%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.
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Year Ended June 30
Town of Nantucket, Massachusetts Page 92 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2020
SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2020 2019 2018 2017 2016 2015
County's proportion of the net pension
liability (asset)0.92%0.09%0.09%0.09%0.09%0.09%
County's proportionate share of the net
pension liability (asset)691$ 684$ 597$ 625$ 551$ 519$
County's covered payroll 283$ 257$ 250$ 252$ 243$ 241$
County's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 244.17%266.15%238.80%248.02%226.75%215.35%
Plan fiduciary net position as a percentage
of the total pension liability 62.34%57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE COUNTY CONTRIBUTIONS TO PENSION PLAN
2020 2019 2018 2017 2016 2015
Actuarially determined contribution 61$ 55$ 52$ 50$ 47$ 48$
Contributions in relation to the
actuarially determined contribution 61 55 52 50 47 48
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
County's covered payroll 286$ 259$ 253$ 251$ 246$ 243$
Contributions as a percentage of
covered payroll 21.3%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.
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Year Ended June 30
Town of Nantucket, Massachusetts Page 93 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2020
SCHEDULE OF THE LAND BANK'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2020 2019 2018 2017 2016 2015
Land Bank's proportion of the net pension
liability (asset)0.27%0.28%0.25%0.20%0.23%0.26%
Land Bank's proportionate share of the net
pension liability (asset)2,036$ 2,181$ 1,674$ 1,384$ 1,428$ 1,471$
Land Bank's covered payroll 833$ 819$ 700$ 557$ 629$ 683$
Land Bank's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 244.42%266.30%239.14%248.47%227.03%215.37%
Plan fiduciary net position as a percentage
of the total pension liability 62.34%57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE LAND BANK CONTRIBUTIONS TO PENSION PLAN
2020 2019 2018 2017 2016 2015
Actuarially determined contribution 179$ 177$ 147$ 112$ 122$ 136$
Contributions in relation to the
actuarially determined contribution 179 177 147 112 122 136
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$
Land Bank's covered payroll 836$ 861$ 728$ 578$ 618$ 667$
Contributions as a percentage of
covered payroll 21.4%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.
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Year Ended June 30
Town of Nantucket, Massachusetts Page 94 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2020
2020 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%100.0%
Town's proportion of the collective
net pension liability (asset)0.0%0.0%0.0%0.0%0.0%0.0%
Commonwealth's proportionate share of
the net pension liability (asset)25,214,020$ 23,711,289$ 22,885,391$ 22,357,928$ 20,489,643$ 15,896,354$
Commonwealth's actuarially determined
contribution 1,443,710$ 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 95 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2020
2020 2019 2018 2017
Total OPEB liability:
Service cost 4,489,938$ 4,071,076$ 3,270,431$ 3,915,845$
Interest 4,827,879 4,434,216 3,879,622 4,305,825
Differences between expected and actual experience (727,441) 5,940,020 (18,207,317) -
Change in assumptions 4,986,701 10,728,558 - -
Benefit payments (3,629,738) (3,238,016) (3,195,050) (3,230,121)
Net change in total OPEB liability 9,947,339 21,935,854 (14,252,314) 4,991,549
Total OPEB liability - beginning of year 118,004,099 96,068,245 110,320,559 105,329,010
Total OPEB liability - end of year (a)127,951,438$ 118,004,099$ 96,068,245$ 110,320,559$
Plan fiduciary net position:
Contributions - employer 4,129,738$ 3,738,016$ 3,695,050$ 3,730,121$
Net investment income 50,929 239,754 (13,267) 62,612
Benefit payments (3,629,738) (3,238,016) (3,195,050) (3,230,121)
Net change in Plan fiduciary net position 550,929 739,754 486,733 562,612
Plan fiduciary net position - beginning of year 3,130,312 2,390,558 1,903,825 1,341,213
Plan fiduciary net position - end of year (b)3,681,241$ 3,130,312$ 2,390,558$ 1,903,825$
Net OPEB liability - end of year (a) - (b)124,270,197$ 114,873,787$ 93,677,687$ 108,416,734$
Plan fiduciary net position as a percentage of the total
OPEB liability 2.88%2.65%2.49%1.73%
Covered payroll 37,265,400$ 36,180,000$ 26,400,000$ 26,950,000$
Net OPEB liability as a percentage of covered-
employee payroll 333.47%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.
See accompanying independent auditor's report.
Year Ended June 30,
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Town of Nantucket, Massachusetts Page 96 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2020
2020 2019 2018 2017
Actuarially-determined contribution 11,208,030$ 10,458,732$ 9,639,685$ 9,698,176$
Contributions in relation to the actuarially-
determined contribution (4,129,738) (3,738,016) (3,695,050) (3,730,121)
Contribution deficiency (excess)7,078,292$ 6,720,716$ 5,944,635$ 5,968,055$
Covered payroll 37,265,400$ 36,180,000$ 26,400,000$ 26,950,000$
Contribution as a percentage of covered payroll 11.1%10.3%14.0%13.8%
Valuation date July 1, 2018 July 1, 2018 July 1, 2016 July 1, 2016
Amortization period 30 years 30 years 30 years 30 years
Investment rate of return 4.99%4.88%5.51%5.74%
Municipal bond rate 2.66%2.79%3.45%3.16%
Single equivalent bond rate 3.75%4.00%4.00%4.50%
Inflation 2.50%2.75%2.75%2.75%
Healthcare cost trend rates 4.50%4.50%5.00%5.00%
Salary increases 3.00%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)
2020 2019 2018 2017
Annual money-weighted rate of return, net
of investment expense 1.63%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.
Year Ended June 30,
Year Ended June 30,
SCHEDULE OF CONTRIBUTIONS
SCHEDULE OF INVESTMENT RETURNS
Town of Nantucket, Massachusetts Page 97 of 142 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, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate taxes 82,217,858$ 82,217,858$ 80,070,207$ -$ 80,070,207 (2,147,651)
Personal property taxes 1,790,770 1,790,770 1,720,723 - 1,720,723 (70,047)
Tax title - - 202,401 - 202,401 202,401
Motor vehicle excise 2,750,000 2,750,000 2,946,898 - 2,946,898 196,898
Boat and other excise 25,000 25,000 80,019 - 80,019 55,019
Meals taxes 950,000 950,000 1,141,414 - 1,141,414 191,414
Room occupancy taxes 3,351,733 3,351,733 5,553,748 - 5,553,748 2,202,015
91,085,361 91,085,361 91,715,410 - 91,715,410 630,049
Intergovernmental:
State aid - chapter 70 3,600,249 3,600,249 3,621,329 - 3,621,329 21,080
State aid - unrestricted 84,135 84,135 84,135 - 84,135 -
State aid - state owned land 185,023 185,023 185,023 - 185,023 -
State aid - other 1,196 1,196 44,379 - 44,379 43,183
3,870,603 3,870,603 3,934,866 - 3,934,866 64,263
Departmental fees, charges, and other:
Payments in lieu of taxes 7,000 7,000 12,066 - 12,066 5,066
Selectmen rentals 335,700 335,700 412,787 - 412,787 77,087
Marina rentals 189,300 189,300 247,485 - 247,485 58,185
Municipal lien certificate fees 28,000 28,000 29,375 - 29,375 1,375
Planning office filing and inspection fees 95,000 95,000 56,542 - 56,542 (38,458)
Police department fees 129,500 129,500 147,138 - 147,138 17,638
Public safety detail charges 60,000 60,000 75,878 - 75,878 15,878
Fire department fees 46,700 46,700 35,875 - 35,875 (10,825)
Inspection fees 383,200 383,200 353,273 - 353,273 (29,927)
Conservation fees 22,500 22,500 22,030 - 22,030 (470)
Historic district fees 215,000 215,000 205,763 - 205,763 (9,237)
Town gas 43,000 43,000 64,510 - 64,510 21,510
Other miscellaneous 227,867 227,867 515,064 - 515,064 287,197
1,782,767 1,782,767 2,177,786 - 2,177,786 395,019
Licenses and permits:
Liquor licenses 182,500 182,500 159,000 - 159,000 (23,500)
Building permits 1,044,900 1,044,900 989,138 - 989,138 (55,762)
Other licenses and permits 197,600 197,600 176,235 - 176,235 (21,365)
1,425,000 1,425,000 1,324,373 - 1,324,373 (100,627)
Fines and forfeitures:
Parking and court fines 255,500 255,500 267,156 - 267,156 11,656
Other fines 10,000 10,000 53,590 - 53,590 43,590
265,500 265,500 320,746 - 320,746 55,246
Penalties and interest on taxes 450,000 450,000 544,079 - 544,079 94,079
Interest and investment income 250,000 250,000 424,520 - 424,520 174,520
Total Revenues 99,129,231 99,129,231 100,441,780 - 100,441,780 1,312,549
Town of Nantucket, Massachusetts Page 98 of 142 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, 2020
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 899,110 1,239,110 1,206,916 - 1,206,916 32,194
Operating 918,182 918,182 312,180 289,170 601,350 316,832
Articles 1,112,875 1,112,875 21,392 1,091,483 1,112,875 -
2,930,167 3,270,167 1,540,488 1,380,653 2,921,141 349,026
Finance Committee:
Operating 18,680 18,680 15,318 - 15,318 3,362
Articles 500,000 500,000 - - - 500,000
518,680 518,680 15,318 - 15,318 503,362
Finance and Operations:
Salary 989,160 709,160 633,367 - 633,367 75,793
Operating 258,688 333,688 205,649 68,260 273,909 59,779
Articles 7,609 32,097 - 32,097 32,097 -
1,255,457 1,074,945 839,016 100,357 939,373 135,572
Assessor:
Salary 449,703 449,703 439,834 - 439,834 9,869
Operating 181,275 181,275 75,299 2,250 77,549 103,726
630,978 630,978 515,133 2,250 517,383 113,595
Collector:
Salary 334,735 334,735 319,474 - 319,474 15,261
Operating 112,502 112,502 72,984 259 73,243 39,259
447,237 447,237 392,458 259 392,717 54,520
Treasurer:
Salary 323,954 323,954 338,963 - 338,963 (15,009)
Operating 112,300 112,300 10,407 2,654 13,061 99,239
436,254 436,254 349,370 2,654 352,024 84,230
Information Systems/GIS:
Salary 836,501 826,501 753,100 - 753,100 73,401
Operating 659,899 731,808 549,976 227,235 777,211 (45,403)
1,496,400 1,558,309 1,303,076 227,235 1,530,311 27,998
Legal:
Operating 659,133 659,133 428,084 39,841 467,925 191,208
659,133 659,133 428,084 39,841 467,925 191,208
Human Resources:
Salary 304,400 304,400 281,657 - 281,657 22,743
Operating 191,787 191,787 104,472 - 104,472 87,315
496,187 496,187 386,129 - 386,129 110,058
Town Clerk:
Salary 277,020 277,020 257,667 - 257,667 19,353
Operating 66,251 116,251 89,369 8,683 98,052 18,199
343,271 393,271 347,036 8,683 355,719 37,552
(continued)
Town of Nantucket, Massachusetts Page 99 of 142 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, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Nantucket Planning Office:
Salary 1,178,068 1,128,068 1,048,344 - 1,048,344 79,724
Operating 261,148 261,148 202,411 1,655 204,066 57,082
1,439,216 1,389,216 1,250,755 1,655 1,252,410 136,806
Public Buildings:
Operating 1,402,261 1,402,261 1,035,470 198,365 1,233,835 168,426
1,402,261 1,402,261 1,035,470 198,365 1,233,835 168,426
Natural Resources:
Salary 701,135 756,135 741,700 - 741,700 14,435
Operating 270,413 270,413 142,059 5,054 147,113 123,300
971,548 1,026,548 883,759 5,054 888,813 137,735
Insurances:
Auto casualty 165,000 165,000 22,923 - 22,923 142,077
Blanket liability 1,633,500 1,633,500 1,313,423 - 1,313,423 320,077
Claims deductible 139,506 139,506 37,824 1,774 39,598 99,908
Insurance consulting 62,328 62,328 24,366 9,969 34,335 27,993
2,000,334 2,000,334 1,398,536 11,743 1,410,279 590,055
Total General Government 15,028,803 15,305,200 10,684,806 1,978,749 12,663,555 2,641,645
Public Safety:
Police:
Salary - police 5,949,400 5,949,400 6,023,111 - 6,023,111 (73,711)
Operating 883,355 883,355 706,395 76,797 783,192 100,163
6,832,755 6,832,755 6,729,506 76,797 6,806,303 26,452
Fire:
Salary 3,149,026 3,149,026 2,842,705 40,000 2,882,705 266,321
Operating 385,311 535,311 355,290 150,000 505,290 30,021
3,534,337 3,684,337 3,197,995 190,000 3,387,995 296,342
Inspectors:
Salary 690,097 690,097 649,844 - 649,844 40,253
Operating 21,000 21,000 15,070 - 15,070 5,930
711,097 711,097 664,914 - 664,914 46,183
Emergency Management:
Operating 8,000 8,000 (642) - (642) 8,642
8,000 8,000 (642) - (642) 8,642
Marine:
Salary 781,750 831,750 595,083 - 595,083 236,667
Operating 86,191 86,191 41,016 498 41,514 44,677
Articles 16,211 16,211 - 16,211 16,211 -
884,152 934,152 636,099 16,709 652,808 281,344
Total Public Safety 11,970,341 12,170,341 11,227,872 283,506 11,511,378 658,963
Town of Nantucket, Massachusetts Page 100 of 142 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, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Education:
Salary and operating 30,487,452 30,552,452 29,691,176 491,367 30,182,543 369,909
Articles 207,557 207,557 112,879 94,678 207,557 -
Total Education 30,695,009 30,760,009 29,804,055 586,045 30,390,100 369,909
Public Works:
Public Works:
Salary 2,787,290 2,547,290 2,436,216 - 2,436,216 111,074
Operating 677,825 777,825 536,285 60,601 596,886 180,939
Articles 38,834 38,834 12,445 26,389 38,834 -
3,503,949 3,363,949 2,984,946 86,990 3,071,936 292,013
Street Lighting:
Operating 172,370 172,370 161,757 15 161,772 10,598
172,370 172,370 161,757 15 161,772 10,598
Mosquito Control:
Operating 164,391 164,391 131,045 - 131,045 33,346
164,391 164,391 131,045 - 131,045 33,346
Snow and Ice Removal:
Operating 82,600 82,600 56,641 - 56,641 25,959
82,600 82,600 56,641 - 56,641 25,959
Gas/Town Vehicles:
Operating 375,000 375,000 244,765 40,026 284,791 90,209
375,000 375,000 244,765 40,026 284,791 90,209
Total Public Works 4,298,310 4,158,310 3,579,154 127,031 3,706,185 452,125
Health and Human Services:
Health:
Salary 464,043 464,043 393,413 - 393,413 70,630
Operating 131,035 131,035 105,128 2,825 107,953 23,082
595,078 595,078 498,541 2,825 501,366 93,712
Commision on Disability:
Salary 10,317 10,317 3,549 - 3,549 6,768
Operating 1,700 1,700 197 - 197 1,503
12,017 12,017 3,746 - 3,746 8,271
Senior Services/Council on Aging:
Salary 185,110 185,110 188,139 - 188,139 (3,029)
Operating 28,832 28,832 18,156 222 18,378 10,454
213,942 213,942 206,295 222 206,517 7,425
Veterans Services:
Salary 15,460 15,460 4,584 - 4,584 10,876
Operating 18,250 18,250 12,171 - 12,171 6,079
33,710 33,710 16,755 - 16,755 16,955
Human Services:
Salary 83,950 158,950 138,529 - 138,529 20,421
Operating 15,745 15,745 8,282 40 8,322 7,423
Articles 594,187 594,187 576,587 17,600 594,187 -
693,882 768,882 723,398 17,640 741,038 27,844
Total Health and Human Services 1,548,629 1,623,629 1,448,735 20,687 1,469,422 154,207
(Continued)
Town of Nantucket, Massachusetts Page 101 of 142 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, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Atheneum (Library):
Operating 732,745 732,745 732,745 - 732,745 -
732,745 732,745 732,745 - 732,745 -
Visitor Services:
Salary 295,200 295,200 293,544 - 293,544 1,656
Operating 174,932 174,932 107,778 - 107,778 67,154
470,132 470,132 401,322 - 401,322 68,810
Town Clock:
Operating 4,741 4,741 2,787 43 2,830 1,911
4,741 4,741 2,787 43 2,830 1,911
Total Culture and Recreation 1,207,618 1,207,618 1,136,854 43 1,136,897 70,721
State and County Assessments:
State assessments and charges 78,395 78,395 48,178 - 48,178 30,217
Transportation authorities assessments 418,510 418,510 418,510 - 418,510 -
Tuition assessments 58,837 58,837 46,428 - 46,428 12,409
County assessments and charges 170,201 170,201 170,201 - 170,201 -
Total State and County Assessments 725,943 725,943 683,317 - 683,317 42,626
Pension and Fringe Benefits:
Medical Insurance:
Salary 13,784,884 13,394,884 12,975,684 - 12,975,684 419,200
13,784,884 13,394,884 12,975,684 - 12,975,684 419,200
Unemployment:
Salary 175,000 175,000 143,090 - 143,090 31,910
175,000 175,000 143,090 - 143,090 31,910
Workers' Compensation:
Salary 246,250 246,250 246,250 - 246,250 -
246,250 246,250 246,250 - 246,250 -
Laborer's Union Pension:
Salary 44,800 44,800 66,630 - 66,630 (21,830)
44,800 44,800 66,630 - 66,630 (21,830)
Pension Assessments:
Barnstable Retirement 4,796,286 4,796,286 4,750,913 - 4,750,913 45,373
4,796,286 4,796,286 4,750,913 - 4,750,913 45,373
Other Employee Benefits:
Salary 400,000 400,000 12,535 - 12,535 387,465
400,000 400,000 12,535 - 12,535 387,465
Total Pension and Fringe Benefits 19,447,220 19,057,220 18,195,102 - 18,195,102 862,118
Town of Nantucket, Massachusetts Page 102 of 142 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, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Debt Service 9,165,306 9,165,306 9,070,636 - 9,070,636 94,670
Total Expenditures 94,087,179 94,173,576 85,830,531 2,996,061 88,826,592 5,346,984
Other Financing Sources (Uses)
Transfers in 616,300 678,209 678,209 678,209 -
Transfers out (16,302,879) (17,338,769) (17,338,769) (17,338,769) -
Total Other Financing Sources (Uses)(15,686,579) (16,660,560) (16,660,560) (16,660,560)$ -
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (10,644,527) (11,704,905) (2,049,311)$ 6,659,533$
Other Budgetary Items
Use of unassigned fund balance (free cash)6,075,244$ 7,135,622$
Prior year encumbrances 1,463,973 1,463,973
Prior year articles 1,306,112 1,306,112
Total Other Budgetary Items 8,845,329 9,905,707
Net budget and actual (1,799,198)$ (1,799,198)$
(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 103 of 142 Comprehensive Annual Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2020
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 2020, 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, 2020, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis 100,441,780$
Stabilization revenue -$ 129,781$ 129,781
Nursing home revenues - 4,211,462 4,211,462
Landfill revenues - 2,944,888 2,944,888
Change in revenue accruals 936,291 - 936,291
On behalf payments 7,403,183 - 7,403,183
Revenues on a GAAP basis 8,339,474$ 7,286,131$ 116,067,385$
Expenditures on a budgetary basis 85,830,531$
Reclass indirect transfers against expenditures (409,000)$ -$ (409,000)
Nursing home expenditures - 7,578,859 7,578,859
Landfill expenditures - 9,402,784 9,402,784
Bond issuance costs 71,681 - 71,681
Payments to refunded escrow agent (224,421) - (224,421)
On behalf payments 7,403,183 - 7,403,183
Transfer to enterprise fund for debt service (727,838) - (727,838)
Expenditures on a GAAP basis 6,113,605$ 16,981,643$ 108,925,779$
Town of Nantucket, Massachusetts Page 104 of 142 Comprehensive Annual Financial Report
Basis of
Accounting Fund Perspective
Differences Differences Total
Other financing (uses) on a budgetary basis (16,660,560)$
Reclass indirect transfers against expenditures (409,000)$ -$ (409,000)
Premiums from bonds and notes 71,681 - 71,681
Payments to refunded escrow agent (224,421) - (224,421)
Nursing home transfers - 2,392,445 2,392,445
Landfill transfers - 6,274,664 6,274,664
Transfer to enterprise fund for debt service (727,838) - (727,838)
Other financing (uses) on a GAAP basis (1,289,578)$ 8,667,109$ (9,283,029)$
Town of Nantucket, Massachusetts Page 105 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 106 of 142 Comprehensive Annual Financial Report
Combining Statements
Town of Nantucket, Massachusetts Page 107 of 142 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 108 of 142 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 109 of 142 Comprehensive Annual Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Assets:
Cash and cash equivalents 84,466$ 94,100$ 346,469$ 479,492$ 2,199,503$
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Departmental and other - - - - -
Intergovernmental - - - 17,067 1,162,400
Total Assets 84,466 94,100 346,469 496,559 3,361,903
Total Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources 84,466$ 94,100$ 346,469$ 496,559$ 3,361,903$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable 20,148$ 5,999$ -$ 11,536$ 105,848$
Accrued payroll and withholdings - 13,033 5,361 659 306
Other liabilities - - - - -
Due to other funds - - - - -
Bond anticipation notes payable - - - - 2,000,000
Total Liabilities 20,148 19,032 5,361 12,195 2,106,154
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - - -
Unavailable revenue - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 64,318 75,068 341,108 484,364 1,614,942
Unassigned - - - - (359,193)
Total Fund Balances 64,318 75,068 341,108 484,364 1,255,749
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 84,466$ 94,100$ 346,469$ 496,559$ 3,361,903$
JUNE 30, 2020
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Town of Nantucket, Massachusetts Page 110 of 142 Comprehensive Annual Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
5,071,368$ -$ 1,686,474$ 8,248,196$ 2,149,476$ 1,086,752$ 21,446,296$
- - - - - - -
269,881 - - - - - 269,881
- - - 625,706 - - 625,706
- 4,569 - - - 1,184,036
5,341,249 4,569 1,686,474 8,873,902 2,149,476 1,086,752 23,525,919
- - - - - - -
5,341,249$ 4,569$ 1,686,474$ 8,873,902$ 2,149,476$ 1,086,752$ 23,525,919$
2,922$ 840$ 18,272$ 212,687$ -$ 1,420$ 379,672$
3,700 - 44,724 53,919 - 43 121,745
21,759 - 76,452 - - - 98,211
- 3,729 - - - - 3,729
- - - - - - 2,000,000
28,381 4,569 139,448 266,606 - 1,463 2,603,357
269,881 - - - - - 269,881
- - - 625,706 - - 625,706
269,881 - - 625,706 - - 895,587
- - - - - - -
5,042,987 - 1,547,026 7,981,590 2,149,476 1,085,289 20,386,168
- - - - - - (359,193)
5,042,987 - 1,547,026 7,981,590 2,149,476 1,085,289 20,026,975
5,341,249$ 4,569$ 1,686,474$ 8,873,902$ 2,149,476$ 1,086,752$ 23,525,919$
Town of Nantucket, Massachusetts Page 111 of 142 Comprehensive Annual Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2020
Permanent Funds Total
Cemetery Affordable Other Sub-total Nonmajor
Trust Housing Trust Permanent Governmental
Funds Trust Funds Funds Funds
Assets:
Cash and cash equivalents -$ 5,220,807$ -$ 5,220,807$ 26,667,103$
Investments 188,866 - 19,582 208,448 208,448
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 269,881
Departmental and other - - - - 625,706
Intergovernmental - - - - 1,184,036
Total Assets 188,866 5,220,807 19,582 5,429,255 28,955,174
Total Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources 188,866$ 5,220,807$ 19,582$ 5,429,255$ 28,955,174$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable -$ 870$ -$ 870$ 380,542$
Accrued payroll and withholdings - - - - 121,745
Other liabilities - - - - 98,211
Due to other funds - - - - 3,729
Bond anticipation notes payable - 4,580,000 - 4,580,000 6,580,000
Total Liabilities - 4,580,870 - 4,580,870 7,184,227
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - - 269,881
Unavailable revenue - other - - - - 625,706
Total Deferred Inflows of Resources - - - - 895,587
Fund Balances:
Nonspendable 44,305 - 660 44,965 44,965
Restricted 144,561 639,937 18,922 803,420 21,189,588
Unassigned - - - - (359,193)
Total Fund Balances 188,866 639,937 19,582 848,385 20,875,360
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 188,866$ 5,220,807$ 19,582$ 5,429,255$ 28,955,174$
(Concluded)
Town of Nantucket, Massachusetts Page 112 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 113 of 142 Comprehensive Annual Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Revenues:
Intergovernmental 296,599$ 570,587$ 545,436$ 206,873$ 1,435,259$
Motor vehicle and other excises - - - - -
Community preservation surcharges - - - - -
Investment income 2,003 - - 59 -
Departmental and other revenue 270,722 - - - 89,423
Contributions and donations - - - - -
Total Revenues 569,324 570,587 545,436 206,932 1,524,682
Expenditures:
Current:
General government - - - 413,876 316,320
Public safety - - - 46,813 74,177
Education 549,767 614,027 526,041 - -
Public works - - - - 65,284
Health and human services - - - - 534,595
Culture and recreation - - - - 97,814
Debt service:
Principal - - - - 324,922
Interest - - - - 4,500
Total Expenditures 549,767 614,027 526,041 460,689 1,417,612
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 19,557 (43,440) 19,395 (253,757) 107,070
Other Financing Sources (Uses):
Issuance of bonds and notes - - - - 1,000,000
Sale of capital assets - - - - -
Transfers in - - - 600,000 -
Transfers out - - - - -
Total Other Financing Sources (Uses)- - - 600,000 1,000,000
Net Change in Fund Balances 19,557 (43,440) 19,395 346,243 1,107,070
Fund Balances - Beginning of Year 44,761 118,508 321,713 138,121 148,679
Fund Balances - End of Year 64,318$ 75,068$ 341,108$ 484,364$ 1,255,749$
Special Revenue Funds
FISCAL YEAR ENDED JUNE 30, 2020
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 114 of 142 Comprehensive Annual Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
591,074$ 4,569$ -$ 547,953$ -$ -$ 4,198,350$
- - - 37,160 - - 37,160
2,287,031 - - - - - 2,287,031
28,674 - - 1,552 - - 32,288
8,887 - 1,100,212 2,172,920 - - 3,642,164
- - - - - 361,827 361,827
2,915,666 4,569 1,100,212 2,759,585 - 361,827 10,558,820
- - - 328,939 1,690 26,331 1,087,156
- - - 923,835 - 10,578 1,055,403
- - 1,500,129 - - 262,708 3,452,672
- 4,569 - 10,398 - - 80,251
- - - 103,143 - 26,058 663,796
2,465,938 - - 108,551 - - 2,672,303
204,500 - - - - - 529,422
31,083 - - - - - 35,583
2,701,521 4,569 1,500,129 1,474,866 1,690 325,675 9,576,586
214,145 - (399,917) 1,284,719 (1,690) 36,152 982,234
- - - - - - 1,000,000
- - - - 112,905 - 112,905
- - 500,000 - - - 1,100,000
- - - (325,000) - - (325,000)
- - 500,000 (325,000) 112,905 - 1,887,905
214,145 - 100,083 959,719 111,215 36,152 2,870,139
4,828,842 - 1,446,943 7,021,871 2,038,261 1,049,137 17,156,836
5,042,987$ -$ 1,547,026$ 7,981,590$ 2,149,476$ 1,085,289$ 20,026,975$
(Continued)
Town of Nantucket, Massachusetts Page 115 of 142 Comprehensive Annual Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2020
Permanent Funds Total
Cemetery Affordable Other Sub-total Nonmajor
Trust Housing Trust Permanent Governmental
Funds Trust Funds Funds Funds
Revenues:
Intergovernmental -$ -$ -$ -$ 4,198,350$
Motor vehicle and other excises - - - - 37,160
Community preservation surcharges - - - - 2,287,031
Investment income 3,059 3,285 374 6,718 39,006
Departmental and other revenue 7,200 62,724 - 69,924 3,712,088
Contributions and donations - 125,000 - 125,000 486,827
Total Revenues 10,259 191,009 374 201,642 10,760,462
Expenditures:
Current:
General government - 727,709 - 727,709 1,814,865
Public safety - - - - 1,055,403
Education - - - - 3,452,672
Public works - - - - 80,251
Health and human services - - - - 663,796
Culture and recreation - - - - 2,672,303
Debt service:
Principal - - - - 529,422
Interest - - - - 35,583
Total Expenditures - 727,709 - 727,709 10,304,295
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 10,259 (536,700) 374 (526,067) 456,167
Other Financing Sources (Uses):
Issuance of bonds and notes - - - - 1,000,000
Sale of capital assets - - - - 112,905
Transfers in - - - - 1,100,000
Transfers out - - - - (325,000)
Total Other Financing Sources (Uses)- - - - 1,887,905
Net Change in Fund Balances 10,259 (536,700) 374 (526,067) 2,344,072
Fund Balances - Beginning of Year, as restated 178,607 1,176,637 19,208 1,374,452 18,531,288
Fund Balances - End of Year 188,866$ 639,937$ 19,582$ 848,385$ 20,875,360$
(Concluded)
Town of Nantucket, Massachusetts Page 116 of 142 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 117 of 142 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2020
Total
Health Workers'Internal
Claims Compensation Service Funds
Assets:
Current assets:
Cash and cash equivalents 7,722,742$ 130,123$ 7,852,865$
Investments - 247,579 247,579
Reinsured claims receivable 686,553 - 686,553
Prepaid items 530,717 - 530,717
Total Assets 8,940,012 377,702 9,317,714
Total Deferred Outflows of Resources - - -
Total Assets and Deferred Outflows of Resources 8,940,012 377,702 9,317,714
Liabilities:
Current liabilities:
Warrants and accounts payable 1,934$ 703$ 2,637$
Health claims incurred but not reported 1,318,109 - 1,318,109
Workers' compensation claims - 60,363 60,363
Total Current Liabilities 1,320,043 61,066 1,381,109
Total Deferred Inflows of Resources - - -
Total Liabilities and Deferred Inflows of Resources 1,320,043 61,066 1,381,109
Net Position:
Unrestricted 7,619,969 316,636 7,936,605
TOTAL NET POSITION 7,619,969$ 316,636$ 7,936,605$
Town of Nantucket, Massachusetts Page 118 of 142 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2020
Total
Health Workers'Internal Service
Claims Compensation Funds
Operating Revenues:
Employee contributions 2,050,212$ -$ 2,050,212$
Employer contributions 15,363,132 351,181 15,714,313
Reinsured claims proceeds 1,647,279 - 1,647,279
Total Operating Revenues 19,060,623 351,181 19,411,804
Operating Expenditures:
Employee benefits 16,690,315 239,636 16,929,951
Operating Income (loss)2,370,308 111,545 2,481,853
Nonoperating Revenues:
Investment income - 5,048 5,048
Income (loss) Before Transfers 2,370,308 116,593 2,486,901
Change in Net Position 2,370,308 116,593 2,486,901
Fund Balances - Beginning of Year 5,249,661 200,043 5,449,704
Fund Balances - End of Year 7,619,969$ 316,636$ 7,936,605$
Town of Nantucket, Massachusetts Page 119 of 142 Comprehensive Annual Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2020
Total
Health Workers'Internal Service
Claims Compensation Funds
Cash Flows From Operating Activities:
Receipts from employees 2,050,212$ -$ 2,050,212$
Receipts from employer 15,363,132 351,181 15,714,313
Receipts from reinsured claims 1,403,518 - 1,403,518
Payments for interfund services used (15,905,695) (315,554) (16,221,249)
Net Cash Provided by (Used in) Operating Activities 2,911,167 35,627 2,946,794
Cash Flows From Investing Activities:
Investment income - 5,048 5,048
Investment of operating cash - 10,712 10,712
Net Cash Provided by (Used in) Investing Activities - 15,760 15,760
Net Change in Cash and Cash Equivalents 2,911,167 51,387 2,962,554
Cash and Cash Equivalents:
Beginning of the Year 4,811,575 78,736 4,890,311
End of the Year 7,722,742$ 130,123$ 7,852,865$
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss)2,370,308$ 111,545$ 2,481,853$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables (243,761) - (243,761)
Prepaid items 675,663 - 675,663
Accounts payable and accrued expenses (79,383) (21,316) (100,699)
Accrued benefits payable 188,340 (54,602) 133,738
Net Cash Provided by (Used in) Operating Activities 2,911,167$ 35,627$ 2,946,794$
Town of Nantucket, Massachusetts Page 120 of 142 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 121 of 142 Comprehensive Annual Financial Report
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2020
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents 1,495,636$ 1,407,379$ (1,344,047)$ 1,558,968$
Receivables, net of allowance 101,191 206,007 (95,864) 211,334
Total Assets 1,596,827$ 1,613,386$ (1,439,911)$ 1,770,302$
Liabilities
Current liabilities:
Warrants and accounts payable 87,553$ 481,954$ (569,240)$ 267$
Accrued payroll and withholdings 40,400 77,430 (44,487) 73,343
Agency liabilities 528,669 1,162,207 (872,666) 818,210
Planning board deposits 940,205 188,842 (250,565) 878,482
Total Liabilities 1,596,827$ 1,910,433$ (1,736,958)$ 1,770,302$
Town of Nantucket, Massachusetts Page 122 of 142 Comprehensive Annual Financial Report
STATISTICAL SECTION
World renowned for its great scenery that attracts artists from all over, above is a common scene
of an artist at work capturing one of many island attractions on a canvas.
Photo credit: Tom Griswold, Vernon, Connecticut
Town of Nantucket, Massachusetts Page 123 of 142 Comprehensive Annual Financial Report
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Town of Nantucket, Massachusetts Page 124 of 142 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 125 of 142 Comprehensive Annual Financial Report
LAST TEN FISCAL YEARS
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities:
Invested in capital assets……….…………………. 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$ 230,221,877$
Restricted………………………………………………………………………….. 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 21,770,947
Unrestricted……………………………………………………………… 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) (116,554,936)
Total governmental activities net position……………………………………….. 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$ 135,437,888$
Business-type activities:
Invested in capital assets……….…………………. 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$ 127,049,683$
Restricted……………………………...…………………..… - - - - - - - - - -
Unrestricted………………………………………………………………. 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 9,053,421
Total business-type activities net position……………………………. 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$ 136,103,104$
Primary government:
Invested in capital assets……….…………………. 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$ 357,271,560$
Restricted………………………………………………………………………. 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 21,770,947
Unrestricted…………………………………………………………… 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) (107,501,515)
Total primary government net position…………………………………………………. 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$ 271,540,992$
NET POSITION BY COMPONENT
Town of Nantucket, Massachusetts Page 126 of 142 Comprehensive Annual Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expenses -
Governmental activities:
General government…...……………………………………………………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$ 14,739,182$
Public safety…..………………………………………………………………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 21,070,019
Education……..………………………………………………………………….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 59,004,917
Public works……...……………………………………………………………….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 18,470,036
Health and human services………………………………………………………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 8,753,033
Culture and recreation………...……………………………………………………..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 4,272,867
Interest expense……………………………………………………………………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 2,942,449
Total government activities expenses……………………………………………….63,302,298 65,315,943 70,167,440 75,878,560 79,572,505 83,957,476 114,597,179 114,787,139 126,779,743 129,252,503
Business-type activities:
Siasconset Water……………………………………………………………………719,668 682,682 712,820 724,927 738,719 811,237 749,495 617,825 692,972 661,611
Wannacomet Water……………………………………………………………………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 4,575,055
Sewer……………………………………………………………………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 10,230,935
Solid waste……………………………………………………………………8,679,984 8,851,378 11,302,336 8,963,029 10,324,817 11,587,152 - - - -
Nantucket Memorial Airport……………………………………………………………………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 16,864,915
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……………………………………..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 32,332,516
Total primary government expenses……………………………………….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$ 161,585,019$
Program Revenues -
Governmental activities:
Charges for services:
General government…………………………………………………General government…...……………………………………………………426,552$ 741,512$ 622,049$ 917,730$ 771,006$ 1,121,165$ 1,215,294$ 1,414,603$ 1,542,176$ 1,463,420$
Public safety………………………………………………………………..Public safety…..………………………………………………………………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 4,085,076
Education……………………………………………………………….Education……..………………………………………………………………….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 1,370,934
Public works……………………………………………………………….Public works……...……………………………………………………………….59,430 276,502 300,317 340,272 376,600 278,408 3,505,449 3,469,380 3,458,221 3,111,654
Health and human services………………………………………………………35,445 82,788 132,655 188,221 190,627 227,273 5,977,366 5,246,151 5,145,194 4,452,669
Culture and recreation………...……………………………………………………..325,010 522,063 248,089 295,416 346,626 329,022 433,829 455,763 404,014 357,786
Operating grants and contributions……………………………………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 14,895,880
Capital grants and contributions…………………………………………..1,067,782 1,030,215 1,874,830 289,066 1,886,943 1,881,938 508,050 14,502,773 2,571,891 859,038
Total government activities program revenues...……………………………..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 30,596,457
Business-type activities:
Charges for services……………….………………………………….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 29,125,632
Operating grants and contributions……………………………………1,287,762 746,499 85,992 91,000 90,820 133,570 70,458 123,647 133,619 658,259
Capital grants and contributions…………………………………………..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 5,006,466
Total business-type activities program revenues……………………………………..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 34,790,357
Total primary government program revenues……………………………………….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$ 65,386,814$
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..(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)$ (98,656,046)$
Business-type activities……………………....……………………………..(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 2,457,841
Total primary government net (expense)/program revenue……………………………………….(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)$ (96,198,205)$
Note: Beginning in 2017, Our Island Home and Solid Waste business-type activities have been reported as governmental activities; fiscal year 2011 - 2016 were not restated to reflect this.(continued)
Town of Nantucket, Massachusetts Page 127 of 142 Comprehensive Annual Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Revenues and other Changes in Net Position -
Governmental activities:
Real estate and personal property taxes,
net of tax refunds payable…………………………………………………. 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$ 84,077,242$
Motor vehicle and other excise taxes…………………………………………………… 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 3,241,429
Hotel and meals excise……………………………………………..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 6,654,185
Penalties and interest on taxes………………………………………………………………633,008 687,221 677,906 598,411 882,916 657,303 687,316 584,164 605,321 544,079
Community Preservation Fund surcharges………………………………………………………………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 2,364,095
Grants and contributions not restricted to specific programs………………………………………………………………935,761 307,901 737,402 278,049 186,666 179,523 190,963 193,824 246,669 269,158
Unrestricted investment income……………………………………………. 65,960 173,698 66,235 159,229 257,230 389,334 231,448 284,739 937,170 605,877
Gain on sale of capital assets……………………………………………. 73,530 813,011 736,256 1,379,639 2,430,079 - - 201,248 1,536,070 112,905
Land fill revenue sharing……………………………………………………………… - - - - - - - - - -
Unrealized loss on investments………………………………………………………………- - - - - - - - - -
Other revenue………………………………………………………………748,060 438,678 604,871 - - - - - - -
Transfers………………………………………………………………(8,967,926) (11,231,986) (8,303,291) (6,942,620) (7,881,295) (8,659,384) - 285,264 - (755,164)
Total governmental activities………………………………………………………………… 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 97,113,806
Business-type activities:
Unrestricted investment income……………………………………………………………… - 11,993 55,748 44,030 32,935 62,084 71,855 95,529 161,926 150,100
Gain on sale of capital assets……………………………………….- - - - 829,212 - - - - -
Transfers………………………………………………………………8,967,926 11,231,986 8,303,291 6,942,620 7,881,295 8,659,384 - (285,264) - 755,164
Total business-type activities….………..…………………………………..8,967,926 11,243,979 8,359,039 6,986,650 8,743,442 8,721,468 71,855 (189,735) 161,926 905,264
Total primary government general revenues and other
changes in net position………………………………………………….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$ 98,019,070$
Changes in Net Position
Governmental activities……………………....……………………………..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)$ (1,542,240)$
Business-type activities……………………....……………………………..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 3,363,105
Total primary government changes in net position………………………………………. 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$ 1,820,865$
(concluded)
Town of Nantucket, Massachusetts Page 128 of 142 Comprehensive Annual Financial Report
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Fund:
Nonspendable………………………………. -$ -$ -$ -$ 11,406$ -$ -$ -$ 3,113,226$ 2,641,982$
Restricted………………………………. - 1,485,147 1,577,323 650,518 488,344 414,514 346,780 285,872 231,468 78,354
Committed…………………………….. 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 7,985,981
Assigned…………………………….. 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 6,640,550
Unassigned…………………………… 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 23,405,646
Total general fund…………………………….. 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$ 40,752,513$
All Other Governmental Funds:
Nonspendable……………………………….288,280$ 44,305$ 44,305$ 114,762$ 44,805$ 44,805$ 44,805$ 44,805$ 44,965$ 44,965$
Restricted………………………………. 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 37,094,141
Unassigned…………………………… (138,806) (104,106) - - (1,109,351) (17,737,453) (9,779,936) (5,012,857) (3,451,045) (3,212,380)
Total all other governmental funds…………….. 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$ 33,926,726$
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 129 of 142 Comprehensive Annual Financial Report
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Revenues:
Real estate and personal property taxes,
net of tax refunds……………………………………………………. 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$ 82,970,599$
Motor vehicle and other excise………………………………………… 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 3,064,077
Hotel and meals excise………………………………………………. 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 6,654,185
User charges………………………………………………. - - - - - - 9,229,547 8,345,708 8,093,931 7,147,978
Departmental and other……………………………………….. 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 5,889,874
Communities Preservation surcharges……………………………………… 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 2,287,031
Penalties and interest on taxes………………………………………………………..633,008 687,221 677,906 598,411 882,916 657,303 687,316 584,164 605,321 544,079
Licenses and permits………………………………………………………..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 1,324,373
Fines and forfeitures…………………………………………………………….254,285 223,054 208,503 296,917 283,179 269,441 334,451 367,483 408,220 320,746
Intergovernmental………………………………………………………..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 15,536,399
Contributions………………………………………………………..1,249,415 - 258,425 372,331 107,578 408,337 687,574 377,203 1,046,223 487,677
Investment income……………………………………………………….. 159,602 164,936 63,751 147,521 252,185 375,220 228,864 286,452 923,459 600,829
Total Revenue………………………………………………… 83,444,844 84,406,781 84,605,735 86,860,554 91,584,368 97,741,601 113,088,644 131,337,651 123,831,070 126,827,847
Expenditures:
General government……………………………………………………………. 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 10,210,770
Public safety……………………………………………………………… 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 12,211,082
Education………………………………………………………………… 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 34,707,378
Public works…………………………………………………………….. 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 13,537,825
Health and human services………………………………………………… 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 7,885,694
Culture and recreation……………………………………………….. 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 3,809,157
Pension and fringe benefits………………………………………………………… 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 27,481,844
State and county charges………………………………………… 461,358 531,772 546,250 566,814 574,275 591,536 606,206 632,692 734,866 683,317
Capital outlay and other………………………………………………………………. 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 7,702,749
Debt service:
Principal……………………………………………………………… 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 5,476,448
Interest……………………………………………………………………. 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 3,268,387
Total Expenditures……………………………………………………….. 76,741,727 72,319,131 75,872,635 79,508,402 85,326,226 105,290,679 140,615,199 137,478,088 135,029,535 126,974,651
Excess of revenues over (under) expenditures………………………………………………… 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) (146,804)
Other Financing Sources (Uses):
Issuances from bonds and notes………………...………………………………………… - 3,200,000 478,449 - 993,000 1,188,709 35,735,550 11,730,000 16,804,000 3,345,000
Issuances from refunding bonds………………...…………………………………………- 1,329,900 8,685,000 - 758,200 3,935,000 3,515,450 - - 5,380,000
Premiums from debt issuances………………………….- 212,513 808,509 - 51,600 123,130 1,700,430 895,909 1,018,631 1,138,749
Payments to refunded bond escrow agent………………………….- (1,519,037) (9,505,125) - (790,820) (3,995,000) (3,976,820) - - (6,474,575)
Sale of capital assets………………………………………………… 73,530 - 865,210 3,888,758 2,474,833 1,439,916 208,199 201,248 1,635,924 112,905
Transfers in……………………………………………………………………………… 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 8,823,943
Transfers out…………………………………………………………………………… (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) (9,579,107)
Total other financing sources (uses)………………………………………………………………….. (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 2,746,915
Net change in fund balance…………………………………………………………………. (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$ 2,600,111$
Debt service as a percentage of noncapital expenditures………………………………………………. 14.68% 13.12%11.34%10.22%9.40%8.92%7.16%7.95%6.61%7.33%
LAST TEN FISCAL YEARS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 130 of 142 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
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 21,914,393,400 76.86%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 18,041,019,200 93.90%3.76 6.68 3.82
2015 16,946,921,756 11,664,300 944,004,094 49,617,300 229,217,719 1,222,839,113 18,181,425,169 17,816,255,100 102.05%3.61 6.38 3.65
2016 19,250,070,530 11,465,100 998,753,099 51,031,421 232,693,446 1,282,477,966 20,544,013,596 17,816,255,100 115.31%3.36 5.93 3.38
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 21,682,664,300 102.64%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
2020 22,760,163,953 2,128,000 1,319,694,097 59,023,800 305,592,179 1,684,310,076 24,446,602,029 23,796,647,900 102.73%3.45 5.86 3.45
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 131 of 142 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 143,717,600$ 1 0.60%99,620,800$ 1 0.58%
Nantucket Electric Company Private Utility 65,580,577 2 0.27%24,061,700 5 0.14%
Nantucket Yacht Club Recreation 53,861,800 3 0.23%48,433,200 3 0.28%
Penant Realty LLC Residential 49,061,300 4 0.21%
Great Harbor Yacht Club Inc.Recreation 47,853,700 5 0.20%
Nantucket Island Resort LLC Resort 45,603,400 6 0.19%43,320,100 4 0.25%
Sankaty Head Golf Club, Inc.Recreation 43,147,500 7 0.18%21,192,000 6 0.12%
Richmond Great Point Development LLC Private 40,919,300 8 0.17%
US REIF Marine Nantucket FEE LLC Retail 26,745,800 9 0.11%
White Elephant Hotel LLC Resort 24,503,900 10 0.10%
Walter Glowacki Private 68,204,200 2 0.40%
NIR Retail III LLC Resort 17,106,300 7 0.10%
Nantucket Golf Course Recreation 16,009,500 8 0.09%
Westmoor Club Resort 12,447,000 9 0.07%
Wauwinet Inn, LLC Resort 10,561,300 10 0.06%
Totals 540,994,877$ 2.27%360,956,100$ 2.10%
Source: Official Statements
2020 2011
Town of Nantucket, Massachusetts Page 132 of 142 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
2011 63,040,150$ 59,526,709$ 94.43%2,440,642$ 61,967,351$ 98.30%
2012 62,274,744 59,645,473 95.78%1,804,633 61,450,106 98.68%
2013 63,618,273 60,028,036 94.36%2,646,505 62,674,541 98.52%
2014 64,647,039 60,979,366 94.33%3,030,877 64,010,243 99.01%
2015 66,329,953 63,876,955 96.30%1,631,646 65,508,601 98.76%
2016 69,636,373 67,228,059 96.54%1,240,632 68,468,691 98.32%
2017 74,553,632 72,289,087 96.96%1,380,073 73,669,160 98.81%
2018 78,168,480 76,433,219 97.78%1,468,889 77,902,108 99.66%
2019 79,549,650 78,531,659 98.72%1,017,991 79,549,650 100.00%
2020 84,281,637 79,367,207 94.17%- 79,367,207 94.17%
Source: Accounting Records and Official Statements
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collections
Town of Nantucket, Massachusetts Page 133 of 142 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
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%
2020 10,298 550,016,180 24,446,602,029 95,445,097 9,268 17.35%0.39%
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
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%
2020 97,522,655 9,470 17.73%0.40%192,967,752 18,738 35.1%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 134 of 142 Comprehensive Annual Financial Report
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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………………. 153,072,902 144,200,827 137,176,623 133,498,025 124,250,817 153,529,728 156,402,504 189,740,061 192,967,752 184,274,078
Authorized and unissued debt…………………………. 72,315,737 48,369,825 51,318,862 24,976,578 87,611,526 166,096,099 124,200,429 157,015,166 204,519,266 241,336,013
Debt not applicable to debt limit…………………………. (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) (30,754,017)
Legal debt margin………………………………………….. 828,288,884$ 856,106,871$ 670,161,828$ 700,904,897$ 640,763,545$ 522,513,318$ 768,239,219$ 704,137,954$ 759,275,628$ 733,468,287$
Total debt applicable to the limit
as a percentage of debt limit………………………………….. 16.73%13.28%16.09%12.84%19.50%30.42%22.63%28.92%30.63%33.19%
Source: State Division of Local Services, Accounting Records
LAST TEN FISCAL YEARS
COMPUTATION OF LEGAL DEBT MARGIN
Town of Nantucket, Massachusetts Page 135 of 142 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……………………………………………………………. 95,445,097
Total direct and overlapping debt…………………………………………… 95,445,097$
*Outstanding debt as of June 30, 2019.
Source: Official Statements, Accounting Records
The estimated percentage applicable is based 100% to the Town.
AS OF JUNE 30, 2020
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Town of Nantucket, Massachusetts Page 136 of 142 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
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%
2020 10,298 550,016,180 53,410 39.4 1,683 4.20%
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 137 of 142 Comprehensive Annual Financial Report
Nature Percentage Percentage
of Employees of Total Town Employees of Total Town
Employer Business Year-Round Rank Employment Year-Round Rank Employment
Town of Nantucket Government 670 1 9.14%680 1 12.59%
Nantucket Cottage Hospital Medical 180 2 2.45%80 4 1.48%
Nantucket Island Resorts Hospitality 125 3 1.70%105 2 1.94%
Marine Home Center Retail 90 4 1.23%87 3 1.61%
Stop & Shop Retail 90 5 1.23%65 5 1.20%
Blue Hills Bank Finance 60 6 0.82%
Myles Reis Trucking Haulage 30 7 0.41%
Steamship Authority Transportation 28 8 0.38%32 7 0.59%
Don Allen Auto Dealership 25 9 0.34%
Bartlett Oceanview Farm Farm/Retail 25 10 0.34%
Nantucket Bank Finance 50 6 0.93%
Harbor Fuel Petroleum Products 30 8 0.56%
Pacific National Bank/Fleet Finance 28 9 0.52%
Inquirer & Mirror Restaurant 26 10 0.48%
Source: Official Statements
2020 2011
CURRENT YEAR AND NINE YEARS AGO
PRINCIPAL EMPLOYERS (INCLUDING TOWN)
Town of Nantucket, Massachusetts Page 138 of 142 Comprehensive Annual Financial Report
Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General government……………………………………………………………. 60 63 60 66 68 73 75 76 82 82
Public safety…………………………………………….. 77 81 81 81 81 83 85 85 88 88
Education…………………………………………………… 292 299 299 301 301 310 315 321 332 332
Public works…………………………………………………………….. 26 28 27 30 30 32 31 32 35 32
Health and human services………………………………………………………….. 74 74 75 75 75 75 75 67 70 67
Culture and recreation………………………………………………… 17 9 10 10 10 10 10 10 10 10
Sub-total governmental activities ……………………………………………………….. 546 554 552 563 565 583 591 591 617 611
Nantucket Memorial Airport………………………… 47 44 44 41 41 44 44 46 48 49
Siasconset Water………………………………………………………………… 1 - - - - - - - - -
Wannacomet Water………………………….. 11 11 11 11 11 11 11 12 13 13
Sewer………………………………………………………………… 12 10 10 10 10 10 10 11 13 13
Sub-total business-type activities ……………………………………………………….. 71 65 65 62 62 65 65 69 74 75
Total Town employees…………….…………………...…….. 617 619 617 625 627 648 656 660 691 686
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 139 of 142 Comprehensive Annual Financial Report
OPERATING INDICATORS BY FUNCTION/PROGRAM
Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Government:
Town Clerk
Registered voters…………………………………….. 8,394 8,394 8,546 8,618 8,618 9,100 9,263 9,263 9,150 9,212
Public Safety:
Police
Criminal offenses
Arrests……………………………….. 1,160 1,531 992 584 568 887 952 952 369 475
Reported crimes…………………….. 499 479 490 501 356 345 345 345 2,116 595
Motor vehicle responses………………………… 2,994 3,469 3,411 3,432 3,493 4,322 4,625 4,625 6,283 5,789
Other responses………………………… 18,553 20,648 17,899 21,576 23,678 22,023 24,327 24,327 10,762 20,152
Total criminal offenses…………. 23,206 26,127 22,792 26,093 28,095 27,577 30,249 30,249 19,530 27,011
Fire
Incidents
Fires…………………………….. 41 52 67 82 86 66 68 68 70 73
Non-fire incidents……………………………………………………….. 3,640 3,721 4,915 3,893 3,942 4,011 4,234 4,234 4,081 4,158
Total fire calls………………… 3,681 3,773 4,982 3,975 4,028 4,077 4,302 4,302 4,151 4,231
Inspectional Services:
Number of building permits…………………………………. 1,406 1,639 1,797 2,010 2,137 1,996 1,875 1,875 1,985 1,892
Education:
Number of students…………………………………. 1,282 1,322 1,378 1,535 1,595 1,588 1,610 1,610 1,686 1,694
Public Works:
Landfill
Solid waste tonnage………………………….. 34,000 33,710 37,400 38,000 39,000 38,000 33,237 33,237 35,689 34,285
Health and Human Services:
Board of Health
Inspections
Food establishments…………………. 212 230 247 262 668 675 675 675 814 862
Other………………………….. 341 358 367 380 1,373 1,563 1,563 1,563 744 928
Total inspections………………….. 553 588 614 642 2,041 2,238 2,238 2,238 1,558 1,790
Our Island Home - Nursing Home
Number of beds………………… 45 45 45 45 45 45 45 45 45 45
Culture and Recreation:
Beaches
Beach Stickers 3,845 3,795 3,973 4,102 4,259 4,559 4,680 4,680 4,992 5,023
Transportation:
Nantucket Memorial Airport
Number of enplanements……… 175,420 178,303 174,129 164,290 138,752 124,321 122,356 122,356 127,733 124,983
Number of tower operations…… 125,960 126,898 119,976 109,225 106,186 104,913 102,678 102,678 69,817 99,356
Gallons of jet fuel sold……………. 1,217,635 1,164,958 1,194,978 1,207,361 1,277,228 1,309,802 1,346,285 1,346,285 1,616,388 1,795,385
N/A - Information not available
Source: Various Town Departments, State websites and annual Town Report.
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 140 of 142 Comprehensive Annual Financial Report
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Function 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General Government:
Number of buildings………………………………..7 7 7 7 7 7 7 7 7 7
Public Safety:
Police
Number of stations…………………………….1 2 2 2 2 2 2 2 2 2
Fire
Number of stations…………………………….2 2 2 2 2 2 2 2 3 3
Education:
Number of elementary schools…………………………………….1 1 1 1 1 1 2 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 141 of 142 Comprehensive Annual Financial Report
For over 50 years, the Nantucket Boat Basin has been the gateway to Nantucket for visitors from
around the world. Lined with cottages, the Boat Basin offers a front row view of the island’s
natural wonders.
Photo credit: Robin London, Nantucket, Massachusetts
Town of Nantucket, Massachusetts Page 142 of 142 Comprehensive Annual Financial Report