HomeMy WebLinkAboutNantucket ACFR 21 - FINALTOWN OF NANTUCKET, MASSACHUSETTS
ANNUAL COMPRHENSIVE FINANCIAL
REPORT
YEAR ENDED JUNE 30, 2021
On the cover: Nantucket’s Main Street is one of the most beautiful thoroughfares in the world.
Lined with lovely old houses, bustling shops, and the world-famous cobblestone streets this
view at dusk highlights the beauty of the downtown. The cobblestones are a great part of the
interest, charm, and folklore of the Island.
Above: For many years, the Easy Street Basin has been the gateway to Nantucket for visitors
from around the world. Lined with cottages, the Boat Basin offers a front row panoramic view
of Nantucket.
TOWN OF NANTUCKET, MASSACHUSETTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2021
C. Elizabeth Gibson, Town Manager
Prepared by the Finance Department
Brian E. Turbitt, Director of Municipal Finance
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TOWN OF NANTUCKET, MASSACHUSETTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1-13
Certificate of Achievement for Excellence in Financial Reporting.................................................. 14
Organizational Chart ........................................................................................................................ 15
Principal Town Officials .................................................................................................................. 16
FINANCIAL SECTION
Independent Auditor’s Report ....................................................................................................... 19-21
Management’s Discussion and Analysis ....................................................................................... 23-35
Basic Financial Statements:
Statement of Net Position .......................................................................................................... 38
Statement of Activities ............................................................................................................... 39
Balance Sheet – Governmental Funds ....................................................................................... 40
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position .............................................................................................. 41
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................................................... 42
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ....................................... 43
Statement of Net Position – Proprietary Funds .......................................................................... 44
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds.............. 45
Statement of Cash Flows – Proprietary Funds ........................................................................... 46
Statement of Fiduciary Net Position .......................................................................................... 47
Statement of Changes in Fiduciary Net Position ....................................................................... 48
Notes to Basic Financial Statements ....................................................................................... 49-86
Required Supplementary Information:
Schedule of Town’s Proportionate Share of Net Pension Liability ........................................... 88
Schedule of Town’s Contributions to Pension Plan ................................................................... 88
Schedule of County’s Proportionate Share of Net Pension Liability ......................................... 89
Schedule of County’s Contributions to Pension Plan ................................................................ 89
Schedule of Land Bank’s Proportionate Share of Net Pension Liability ................................... 90
Schedule of Land Bank’s Contributions to Pension Plan .......................................................... 90
Schedule of Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teacher’s Retirement System ...................................................................... 91
Schedule of Change in Net OPEB Liability and Related Ratios ............................................... 92
Schedule of Contributions to OPEB Plan .................................................................................. 93
Schedule of Investment Returns – OPEB Plan .......................................................................... 93
Schedule of Revenues, Expenditures and Changes in Fund Balance –
Budget and Actual – General Fund .................................................................................. 94-99
Notes to Required Supplementary Information .................................................................... 100-101
TOWN OF NANTUCKET, MASSACHUSETTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page(s)
Combining Statements:
Nonmajor Governmental Funds ........................................................................................... 104-105
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 106-108
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ............................................................ 110-112
Internal Service Funds .............................................................................................................. 113
Combining Statement of Net Position – Internal Service Funds ........................................ 114
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ................................................................................................. 115
Combining Statement of Cash Flows – Internal Service Funds ......................................... 116
STATISTICAL SECTION
Narrative .......................................................................................................................................... 119
Net Position by Component – Last Ten Fiscal Years ...................................................................... 121
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 122-123
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 124
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 125
Assessed Value and Estimated Actual Value of Taxable Property by Classification
and Tax Rates – Last Ten Fiscal Years ..................................................................................... 126
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 127
Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................ 128
Ratios of Outstanding Debt and General Obligation Debt – Last Ten Fiscal Years ....................... 129
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 130
Direct and Overlapping Governmental Activities Debt .................................................................. 131
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 132
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 133
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 134
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 135
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 136
INTRODUCTORY SECTION
A Sconset neighborhood lined with summer cottages makes for a wonderful stroll after a day
at the beach.
Photo credit: Jillian Eversole
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Town and County of Nantucket
Select Board County Commissioners
Jason Bridges, Chair
Kristie L. Ferrantella, Vice Chair
Matthew Fee
Dawn E, Hill Holdgate
Melissa Murphy
16 Broad Street
Nantucket, Massachusetts 02554
_________________
Telephone (508) 228-7255
Facimile (508) 228-7272
www.nantucket-ma.gov
_________________
C. Elizabeth Gibson
Town & County Manager
Letter of Transmittal
February 18, 2022
Honorable Select Board and Citizens of the Town of Nantucket, Massachusetts:
We are pleased to present the Town of Nantucket’s eighth Annual Comprehensive Financial Report
(ACFR). The report, which was prepared by the Town’s Department of Municipal Finance, is for the
fiscal year ended June 30, 2021, 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 ACFR.
This letter of transmittal and the management’s discussion and analysis, located in the financial section
of the ACFR, 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 ACFR 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 ACFR
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 138 Annual Comprehensive 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, 2021 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 138 Annual Comprehensive 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 14,000 (per the 2020 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 Hy-line Cruises (Hy-line) from the port of
Hyannis. In calendar year 2020, the Steamship Authority reports transporting 379,468 passengers,
63,088 passenger vehicles and 48,310 commercial vehicles to Nantucket Island.
Hy-line reports 464,418 embarkations in calendar year 2020. The Hy-line and Steamship Authority fast ferries are 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 138 Annual Comprehensive Financial Report
The Hy-line launched a newer larger vessel during calendar 2017 which has led to increases in ridership.
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 46,000 passengers during the summer of 2020.
Covid-19 restrictions impacted ridership for all ferry
services.
The Nantucket Regional Transit Authority ("NRTA") provides year-round 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
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 2020 with
approximately 47,964 enplanements it was the second busiest airport in the Commonwealth trailing only
Logan International Airport in Boston.
Town of Nantucket, Massachusetts Page 4 of 138 Annual Comprehensive 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 2020 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 a new Intermediate School was completed in May 2017 and the school opened in
September 2017. The Intermediate School was part of a planned $50 million improvement to the entire
District which also included 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 2021 was 1,666 (up 40% 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
individual student academic needs. Work is guided by research and the belief that every student is capable
Town of Nantucket, Massachusetts Page 5 of 138 Annual Comprehensive Financial Report
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
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, who are elected to three-year staggered terms, 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 the Spring. This annual budget serves as
the foundation for the Town’s financial planning and control. The budget is prepared by fund, function
(e.g. general government), department (e.g. finance) and category (e.g. Personnel Services, Purchase of
Services, Supplies, Other Charges & Expenses) allowing the department heads to allocate resources
within the department. Transfers between categories need approval from Town Meeting unless
specifically exempted by state statute.
Factors Affecting Economic Condition
Property 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: approximately 89% of the Town’s property taxes are
residential. Given the many needs and annual cost to provide services on the island, new growth typically
has been a factor in the Town’s ability to maintain those services. While new growth is one of the many
sources of revenue in the annual operating budget, the Town strives to limit its reliance on new growth.
Table 1 summarizes the Town’s building activity and new growth over the prior 8 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 2.9% over the
past seven years.
Calendar # of Residential Non-Residential Total
Year Permits Value Value Value
2020 1,509 221,396,513$ 24,697,740$ 246,094,253$
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 11,175 1,717,206,844$ 327,610,443$ 2,044,817,287$
Table 1
Town of Nantucket, Massachusetts Page 6 of 138 Annual Comprehensive Financial Report
This is summarized in Table 2 below:
Industry
Tourism represents a significant portion of the Town’s private employment on the Island, and thus is an
important component of the Town’s economy. The management of Nantucket's tourism industry is aided
by the Town’s Culture and Tourism department, which is supported through revenues from local option
room occupancy excise collections.
The following table illustrate revenues from this source in each of the last seven fiscal years:
.
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.
Fiscal Levy Unused
Year Limit Levy Levy Capacity Tax savings
2021 89,864,322 88,899,100 965,222 1.07%
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%
624,648,098$ 606,675,070$ 17,973,028$ 2.88%
Table 2
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
Fiscal Year Amount
2021 8,945,468
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 138 Annual Comprehensive 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 C+T department, has an
on-going relationship
with the Chamber
involving the Town's
economic issues.
In 2008 at the annual
town meeting, the
town approved a study
of an area called
Harbor Place;
previously referred to
as the Wilkes Square
Redevelopment site,
which includes National Grid, Winthrop Management LLP, and Nantucket Island Resorts properties.
To that end, the Select Board established a Downtown Revitalization Committee and charged it with
identifying goals for the Nantucket downtown area that balance economic strength with community
preservation and encourage greater venues for social activity while recognizing the importance of
planning.
The focus of the study was to:
•Attract a wide range of individuals through a multifunctional environment including: housing,
work, shopping, culture, entertainment, government, and tourist attractions.
•Balance the human, social, and economic needs with the infrastructure requirements of parking,
public transportation, bike racks, road access, traffic flow, sidewalks, and water front walkways.
•Attract commercial business to locate downtown by providing guidance on financing, zoning, and
preliminary site design.
•Protect the unique qualities, historical significance, and feel of the Town.
•Incorporate attractive space for civic gatherings. The study area is approximately a 5.65-acre area
bounded by Main Street, Commercial Street, Washington Street, and New Whale Street. The site
is currently owned by multiple landowners. The site’s close proximity to downtown and its
Town of Nantucket, Massachusetts Page 8 of 138 Annual Comprehensive Financial Report
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 landowners, 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 was 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. This was completed in September 2021. 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 9 of 138 Annual Comprehensive 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) is currently constructing 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. This was completed in the Winter of 2018. 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 10 of 138 Annual Comprehensive Financial Report
Unassigned Fund Balances
One of the methods the Town uses to maintain reserves from year to year is to conservatively forecast
revenues. This allows the Town to use free cash (surplus) for reserves, capital projects or other non-
operating one-time expenses. Since the Town has a significant level of unused levy capacity as previously
discussed, the challenge of conservatively forecasting revenue is diminished and as a result, the Town has
been able to maintain and/or increase reserves from year to year.
The Town’s unassigned fund balance trend since 2010 is illustrated below:
Town of Nantucket, Massachusetts Page 11 of 138 Annual Comprehensive 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,
almost $90 million.
•Renovation of the Town Pier financed in part with storm assistance funds from FEMA.
•Improvements to municipal water infrastructure: almost $25 million.
•Improvements to Siasconset water infrastructure: almost $9 million.
•Improvements to municipal sewer infrastructure: almost $100 million; (over $21 million during
fiscal 2018), some of this funded through the State subsidized, low interest loan program.
•Improvements to Schools: over $40 million.
•A new Police Station and Fire Station in a Public Safety
compound; combined cost about $36 million.
•Improvements to roads, sidewalks, and bike paths. Total
cost of almost $15 million, half of which was funded
through the State Chapter 90 Road Funding Program.
Fiscal Real and Personal Motor Vehicle Rooms and
Year Property Taxes Excise Meals Excise Permits State Aid Miscellaneous Total
2022 95,470,203 2,750,000 7,450,000 1,250,000 3,961,774 3,080,846 113,962,823
2023 98,856,958 2,777,500 7,450,000 1,262,500 4,001,392 3,111,654 117,460,004
2024 102,328,382 2,805,275 7,450,000 1,275,125 4,041,406 3,142,771 121,042,959
2025 105,886,592 2,833,328 7,450,000 1,287,876 4,081,820 3,174,199 124,713,814
2026 109,533,756 2,861,661 7,450,000 1,300,755 4,122,638 3,205,941 128,474,751
Town of Nantucket, Massachusetts Page 12 of 138 Annual Comprehensive 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 annual comprehensive 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 annual comprehensive financial report for the fiscal year ended June 30, 2020. This was
the seventh 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 annual
comprehensive 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 ACFR, represents an important achievement in the ability of the Town of
Nantucket to provide enhanced financial information and accountability to its citizens, elected and
appointed officials, and investors. The preparation of this report would not have been possible without
the efficient and dedicated services of the entire staff in the Finance Office. Special thanks also go to the
certified public accounting firm of Roselli, Clark and Associates for their advice and assistance in the
preparation of this report.
Respectfully submitted,
C. Elizabeth Gibson
Town Manager
Brian E. Turbitt
Director of Municipal Finance
Town of Nantucket, Massachusetts Page 13 of 138 Annual Comprehensive Financial Report
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Nantucket
Massachusetts
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
Town of Nantucket, Massachusetts Page 14 of 138 Annual Comprehensive 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 15 of 138 Annual Comprehensive Financial Report
PRINCIPAL TOWN OFFICIALS
As of June 30, 2021
Elected Officials
Select Board Jason Bridges, Chair
Kristie L. Ferrantella, Vice Chair
Melissa Murphy
Matthew Fee
Dawn E. Hill Holdgate
Town Moderator Sarah Alger, Esquire
Town Clerk Nancy L. Holmes
School Committee Dr. Timothy Lepore, Chairman
Pauline Proch, Vice Chairman
Laura Gallagher Byrne
Anthony Fox
Esmeralda Martinez
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 16 of 138 Annual Comprehensive Financial Report
FINANCIAL SECTION
The Greydon House located on Broad Street is a popular summer destination down-town. The
hotel/restaurant with 20 rooms provides a centrally located spot to visit many of the other
attractions on the island.
Town of Nantucket, Massachusetts Page 17 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 18 of 138 Annual Comprehensive 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,
2021 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 19 of 138 Annual Comprehensive 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, 2021, 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 V, a restatement of prior year ending net position balances was made to
the Town’s governmental activities and nonmajor governmental 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 20 of 138 Annual Comprehensive 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 February 18, 2022 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 solely 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 effectiveness of the Town’s 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 February 18, 2022
Town of Nantucket, Massachusetts Page 21 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 22 of 138 Annual Comprehensive Financial Report
Management’s Discussion and Analysis
Town of Nantucket, Massachusetts Page 23 of 138 Annual Comprehensive 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, 2021.
Financial Highlights
▪ The assets and deferred outflows of financial resources of the Town exceeded its liabilities and
deferred inflows of financial resources at the close of the most recent fiscal year by over $292.3
million (total net position).
▪ The government’s total net position increased by almost $20.2 million (over 7.4% of total net
position) over the prior year. This consisted of a minor (less than 1%) decrease in governmental
activities’ net position, or about $0.2 million, offset by an increase in business-type activities’ net
position by over $20.4 million (about 15.0% of business-type activities’ net position).
Detail of these changes is provided in the Government-wide financial analysis section of the
Management Discussion and Analysis.
▪ The Town’s unassigned fund balance reported in the General Fund was about $34.5 million (30.4% of
General Fund expenditures). Total fund balance in the General Fund was over $53.1 million (46.9%
of General Fund expenditures). The Town reported a fund balance of almost $10.6 million in its
Town Capital Projects Fund and reported total fund balances of almost $23.1 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 $13.5 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-
wide financial statements, 2) fund financial statements, 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
The layout and relationship of the financial statements and supplementary information is visually
illustrated as follows:
Town of Nantucket, Massachusetts Page 24 of 138 Annual Comprehensive Financial Report
Government-wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. The statement of position presents information on all of the Town’s assets, deferred outflows of
resources, liabilities and deferred inflows of resources, with the difference between these reported as net
position. Over time, increases or decreases in net position may serve as a useful indicator of whether the
financial position of the Town is improving or deteriorating.
The statement of activities presents information showing how the government’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused vacation leave.)
The government-wide financial statements consist of three classifications; (1) those whose activities are
principally supported by taxes and intergovernmental revenue (governmental activities); (2) those whose
activities are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities), and (3) component units.
The Town’s governmental activities consist of:
1.General government;
2.Public safety;
3.Education;
4.Public works;
5.Health and human services;
6.Culture and recreation; and,
7.Interest expense.
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 25 of 138 Annual Comprehensive Financial Report
The Town’s business-type activities consist of:
1.Siasconset Water District;
2.Wannacomet Water District;
3.Sewer; and
4.Nantucket Memorial Airport.
The Town’s component units consist of:
1.Nantucket County; and
2.Nantucket Islands Land Bank.
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Town, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Accounting guidelines distinguish fund balance between amounts that are considered nonspendable, such
as fund balance associated with inventories, and other amounts that are classified based on the relative
strength of the constraints that control the purposes for which specific amounts can be spent. Beginning
with the most binding constraints, fund balance amounts will be reported in the following classifications:
• Restricted—amounts constrained by external parties, constitutional provision, or enabling
legislation
• Committed—amounts constrained by a government using its highest level of decision-making
authority
• Assigned—amounts a government intends to use for a particular purpose
• Unassigned—amounts that are not constrained at all will be reported in the general fund or in
other major funds if negative
Governmental funds – Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
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
Town of Nantucket, Massachusetts Page 26 of 138 Annual Comprehensive Financial Report
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 27 of 138 Annual Comprehensive 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 $292.3 million at the close of the most recent fiscal
year.
The condensed Statement of Net Position is as follows:
By far, the largest portion (over $356.9 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 $24.1 million, of the Town’s net position represents resources that are
subject to external restrictions on how they may be used. Unrestricted net position reflects the remainder
of net position; a deficit of about $88.7 million. This consisted of Governmental activities unrestricted
net position which is in a deficit position of over $113.3 million offset by unrestricted net position in the
Business-type funds of over $24.6 million. The recognition of Net Other Postemployment Benefits
Liability and Net Pension Liability has reduced the Town’s net position significantly in both its
Governmental and Business-Type activities. This has led to the significant deficit in the Governmental
activities unrestricted net position.
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Assets
Currrent and other assets 128,490,491$ 112,271,384$ 50,160,696$ 33,620,210$ 178,651,187$ 145,891,594$
Capital assets, net 333,760,463 325,836,624 250,203,262 239,550,834 583,963,725 565,387,458
Total assets 462,250,954 438,108,008 300,363,958 273,171,044 762,614,912 711,279,052
Deferred outflows of resources 26,120,177 25,086,023 3,398,709 3,251,670 29,518,886 28,337,693
Liabilities
Long-term liabilities 311,748,657 294,039,447 121,196,416 117,510,938 432,945,073 411,550,385
Other liabilities 25,013,053 23,355,773 24,122,728 20,741,750 49,135,781 44,097,523
Total liabilities 336,761,710 317,395,220 145,319,144 138,252,688 482,080,854 455,647,908
Deferred inflows of resources 15,803,300 10,360,923 1,908,569 2,066,922 17,711,869 12,427,845
Net Position
Net investment in capital assets 225,048,258 230,221,877 131,905,999 127,049,683 356,954,257 357,271,560
Restricted 24,076,562 21,770,947 - - 24,076,562 21,770,947
Unrestricted (113,318,699) (116,554,936) 24,628,955 9,053,421 (88,689,744) (107,501,515)
Total Net Position 135,806,121$ 135,437,888$ 156,534,954$ 136,103,104$ 292,341,075$ 271,540,992$
June 30 June 30 June 30
Town of Nantucket, Massachusetts Page 28 of 138 Annual Comprehensive 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 $0.2 million (after factoring the impact of a prior period adjustment to reflect the implementation
of GASB 84) as revenues and expenses approximated one another.
Governmental Activities Business-Type Activities Total
2021 2020 2021 2020 2021 2020
Revenues
Program revenues:
Charges for services 19,315,537$ 14,841,539$ 32,909,280$ 29,125,632$ 52,224,817$ 43,967,171$
Operating grants and contributions 16,062,638 14,895,880 3,560,965 658,259 19,623,603 15,554,139
Capital grants and contributions 1,062,956 859,038 16,370,498 5,006,466 17,433,454 5,865,504
General revenues:
Property taxes 88,601,808 84,077,242 - - 88,601,808 84,077,242
Hotel and meals excise 9,797,223 6,654,185 - - 9,797,223 6,654,185
Intergovernmental 278,227 269,158 - - 278,227 269,158
Other 8,068,419 6,868,385 67,831 150,100 8,136,250 7,018,485
Total Revenues 143,186,808 128,465,427 52,908,574 34,940,457 196,095,382 163,405,884
Expenses
General government 20,368,598 14,739,182 - - 20,368,598 14,739,182
Public safety 22,246,562 21,070,019 - - 22,246,562 21,070,019
Education 60,956,805 59,004,917 - - 60,956,805 59,004,917
Public works 22,181,705 18,470,036 - - 22,181,705 18,470,036
Health and human services 9,195,506 8,753,033 - - 9,195,506 8,753,033
Culture and recreation 3,792,528 4,272,867 - - 3,792,528 4,272,867
Debt service 2,782,017 2,942,449 - - 2,782,017 2,942,449
Siasconset water - - 412,501 661,611 412,501 661,611
Wannacomet water - - 4,746,503 4,575,055 4,746,503 4,575,055
Sewer - - 11,591,322 10,230,935 11,591,322 10,230,935
Nantucket Memorial Airport - - 17,630,422 16,864,915 17,630,422 16,864,915
Total Expenses 141,523,721 129,252,503 34,380,748 32,332,516 175,904,469 161,585,019
Change in net position before transfers 1,663,087 (787,076) 18,527,826 2,607,941 20,190,913 1,820,865
Transfers (1,904,024) (755,164) 1,904,024 755,164 - -
Change in net position (240,937) (1,542,240) 20,431,850 3,363,105 20,190,913 1,820,865
Net position, beginning of year 135,437,888 135,803,491 136,103,104 132,739,999 271,540,992 268,543,490
Restatement for agency funds 609,170 - - - 609,170 -
Restatement for housing trust - 1,176,637 - - - 1,176,637
Net position, beginning of year,
as restated 136,047,058 136,980,128 136,103,104 132,739,999 272,150,162 269,720,127
Net position, end of year 135,806,121$ 135,437,888$ 156,534,954$ 136,103,104$ 292,341,075$ 271,540,992$
June 30 June 30 June 30
Town of Nantucket, Massachusetts Page 29 of 138 Annual Comprehensive Financial Report
Revenues
Total revenue increases were over $14.7 million. Specific causes for this increase were:
(1) Property taxes, which made up
61.9% of total revenues or an
increase of $4.5 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. (2) User charges, which saw an increase in solid waste due to timing
impacts of Covid-19 of $0.5 million and an increase in third-party payments from the Island Home
Nursing facility of over $2.5 million. Total user charges represented about 13.5% of total revenue. (3)
Hotel excise increased over $3.0 million as tourism was up due to restricted overseas travel due to Covid-
19. This represented about 6.8% of total revenue. All other revenue types were higher than the prior year
due to increased activity caused by tourism. These increases were spread in smaller amounts across these
smaller revenue types.
Expenses
Total expenses increased by over $12.2 million. Education is by far the largest expense and represented
about 43.0% of total
expenses. Education
expenses increased almost
$2.0 million over the prior
year due primarily to
increased benefits and
general cost of living
increases. General
Government expenses which
represent 14.4% of total
expenses increased $5.6
million primarily due to
increased activity in the
Town’s Affordable Housing initiatives. Public works expenses which represented 15.7% of total
expenses increased by about $3.7 million. This was primarily due to an increase in solid waste disposal
costs and capital related items that were expensed as maintenance due to not meeting the Town
capitalization policy. All other expense categories were consistent with the prior year and fluctuated
mainly due to pension and OPEB allocations.
Town of Nantucket, Massachusetts Page 30 of 138 Annual Comprehensive Financial Report
Fiscal Year 2021 Expenses and Program Revenues – governmental activities are graphically presented as
follows:
Net position of the business-type activities increased by almost $20.4 million from the prior year
balances. This included the annual adjustment to reflect activity between the internal funds and the
enterprise funds which was trivial in 2021.
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.
The more significant changes were due to the Airport
receiving almost $17.7 million in grants, many which
were Covid-19 related.
The Wannacomet Water District experienced a surge in
connections which resulted in higher connection fees
and overall consumption.
In addition, with respect to Siasconset and Wannacomet, principal payback of debt is larger than
depreciation, therefore the positive results are expected; also, seasonal weather patterns contributed to
increased usage and positive operations of these two operations to explain the additional difference. In the
instance of Sewer, depreciation and principal payback approximate one another.
Siasconset Water District 702,526$
Wannacomet Water District 2,416,074
Sewer 1,108,185
Nantucket Memorial Airport 16,139,319
Total Change 20,366,104$
Town of Nantucket, Massachusetts Page 31 of 138 Annual Comprehensive 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 $86.8 million, an increase of almost $11.5 million over the prior
year.
Unassigned fund balance in the general fund was almost $34.5 million or 30.4% of general fund
expenditures. This is available for spending at the government’s discretion. Assigned fund balance of
over $6.4 million; committed fund balance of almost $9.8 million, restricted fund balance of under $0.1
million and nonspendable fund balances of about $2.4 million bringing total general fund balance to over
$53.1 million or 46.9% of general fund expenditures. Total general fund balance increased by almost
$12.4 million. This was primarily due to revenues exceeding forecasts by almost $11.4 million. In light
of the prior year pandemic, the Town made extremely conservative revenue estimates due to the
uncertainty. Hotel and room excise exceeded the forecast by $6.3 million, motor vehicle excise exceeded
forecast by nearly $1.1 million and meals excise exceeded forecast by almost $0.8 million. The remaining
increases were spread against all revenue types in smaller amounts.
The timing of capital costs verses bond proceeds and other financing sources was primarily responsible
for an decrease in capital projects of almost $2.5 million.
The Combined Nonmajor Funds ended the year with a balance of almost $23.1 million which was higher
than the prior year by about $1.6 million 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.
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 $8.8 million. This represents an increase of
almost $0.9 million over the prior year. Reinsurance
proceeds of over $0.9 million and positive claims
experience were primarily responsible for these
positive operating results as claims continue to be low during the pandemic.
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 almost
$6.4 million.
Town of Nantucket, Massachusetts Page 32 of 138 Annual Comprehensive Financial Report
The Private Purpose Trust Funds make up over $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
outpaced expenses that led to a minor increase year over year.
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 over $4.2 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 $15.7
million.
For the ninth consecutive year revenues exceeded forecast. The major areas were highlighted previously
under governmental funds discussion. Total favorable variance was $11.4 million.
Favorable expenditure variances contributed over $4.3 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 first part of the fiscal year while the pandemic was at
a heightened level. 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, 2021 amounts to almost $584.0 million (net of accumulated depreciation) an
increase from the previous year’s balance of approximately $14.6 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 over $1.3
billion, which is significantly in excess of the Town’s outstanding general obligation debt classified as
inside the debt limit.
The Town is assigned an Aaa credit rating from Moodys’ Investor Services and an AA+ credit rating
from Standard and Poors’.
At the end of the current fiscal year, the Town had total debt outstanding of almost $206.5 million.
Almost $105.6 million is related to the Town’s Governmental activities and over $100.9 million is related
Town of Nantucket, Massachusetts Page 33 of 138 Annual Comprehensive Financial Report
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, 2021 the bond anticipation notes payable balances approximated $30.4
million.
Included in these outstanding debt amounts is unamortized bond premiums of over $4.6 million and
almost $2.7 million in the governmental and business-type activities respectively.
The Town’s total debt increased by over $13.5 million during the fiscal year due to following:
Economic Factors and Next Year’s Budgets and Rates
▪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 2022 to remain consistent with the prior year.
▪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 $1 billion in property sales each year
since 2014.
Regular scheduled maturities:
Governmental Activities (5,645,743)$
Business-Type Activities (11,414,565)
Issuance of debt:
Governmental Activities 15,393,700
Business-Type Activities 14,279,062
Originating premiums
Governmental Activities 910,769
Business-Type Activities 966,741
Amortization of premiums
Governmental Activities (567,502)
Business-Type Activities (416,657)
13,505,805$
Town of Nantucket, Massachusetts Page 34 of 138 Annual Comprehensive Financial Report
▪ All of the above items were considered when the Town developed its budget for fiscal year 2022.
The budget was adopted in April 2021 and the Town set its tax rate in December 2021.
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 35 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 36 of 138 Annual Comprehensive Financial Report
Basic Financial Statements
Town of Nantucket, Massachusetts Page 37 of 138 Annual Comprehensive Financial Report
Nantucket
Governmental Business-Type Nantucket Islands
Activities Activities Total County Land Bank
Assets
Cash and cash equivalents 100,674,791$ 39,461,317$ 140,136,108$ 6,882,665$ 36,923,906$
Investments 11,934,613 2,067,062 14,001,675 - 5,048,469
Investments, designated - - - - 50,967
Receivables, net:
Property taxes 3,893,623 - 3,893,623 - -
User fees 1,089,119 2,664,406 3,753,525 - -
Departmental and other 3,661,482 855,742 4,517,224 - 296,226
Tax liens 2,600,459 - 2,600,459 - -
Intergovernmental 18,501 6,320,962 6,339,463 124,777 -
Loans 2,678,200 - 2,678,200 - -
Inventory - 704,533 704,533 - 467,555
Prepaid items 23,647 - 23,647 - 55,983
Other assets 2,730 - 2,730 - -
Internal balances 1,913,326 (1,913,326) - - -
Restricted cash and cash equivalents - - - - 716,719
Restricted investments - - - - 3,075,250
Cash surrender value of life insurance - - - - 1,163,393
Land conservation rights - - - - 30,000
Capital assets not being depreciated 197,563,710 61,964,531 259,528,241 3,408,842 401,300,595
Capital assets, net of depreciation 136,196,753 188,238,731 324,435,484 - 35,637,488
Total Assets 462,250,954 300,363,958 762,614,912 10,416,284 484,766,551
Deferred Outflows of Resources
Related to losses on refunding 118,752 500,535 619,287 - 121,574
Related to net other postemployment benefits liability 15,762,386 876,359 16,638,745 118,097 416,802
Related to net pension liability 10,239,039 2,021,815 12,260,854 101,878 318,531
Total Deferred Outflows of Resources 26,120,177 3,398,709 29,518,886 219,975 856,907
Liabilities
Warrants and accounts payable 4,127,172 1,694,384 5,821,556 24,067 217,676
Accrued payroll and withholdings 6,223,670 406,383 6,630,053 97,335 -
Accrued expenses - - - - 355,934
Health claims incurred but not reported 1,049,282 - 1,049,282 - -
Accrued interest 1,167,508 982,177 2,149,685 - -
Other liabilities 1,868,463 665,484 2,533,947 - -
Unearned revenue 596,558 - 596,558 - -
Bond anticipation notes payable 9,980,400 20,374,300 30,354,700 - -
Noncurrent liabilities:
Due within one year 9,029,275 8,958,819 17,988,094 - 6,211,396
Due in more than one year 302,719,382 112,237,597 414,956,979 1,217,036 14,358,761
Total Liabilities 336,761,710 145,319,144 482,080,854 1,338,438 21,143,767
Deferred Inflows of Resources
Taxes paid in advance 1,660,285 - 1,660,285 - -
Related to net pension liability 7,910,753 1,562,066 9,472,819 80,862 252,822
Related to net other postemployment benefits liability 6,232,262 346,503 6,578,765 11,580 51,054
15,803,300 1,908,569 17,711,869 92,442 303,876
Net Position
Net investment in capital assets 225,048,258 131,905,999 356,954,257 3,408,842 420,360,161
Restricted:
Nonexpendable permanent funds 44,965 - 44,965 - -
Federal and State grants 2,984,189 - 2,984,189 - -
Community preservation 6,176,403 - 6,176,403 - -
Capital outlay 2,381,370 - 2,381,370 - -
Revolving funds 5,425,121 - 5,425,121 - -
Gift funds 1,425,799 - 1,425,799 - -
Other purposes 5,638,715 - 5,638,715 5,948,977 3,791,969
Unrestricted (113,318,699) 24,628,955 (88,689,744) (152,440) 40,023,685
Total Net Position 135,806,121$ 156,534,954$ 292,341,075$ 9,205,379$ 464,175,815$
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying notes to basic financial statements.
Primary Government Component Units
Town of Nantucket, Massachusetts Page 38 of 138 Annual Comprehensive 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 20,368,598$ 1,903,422$ 985,169$ -$ (17,480,007)$ (17,480,007)$
Public safety 22,246,562 5,095,030 155,421 - (16,996,111) (16,996,111)
Education 60,956,805 747,121 14,176,345 - (46,033,339) (46,033,339)
Public works 22,181,705 3,698,822 25,700 317,802 (18,139,381) (18,139,381)
Health and human services 9,195,506 7,401,435 413,557 - (1,380,514) (1,380,514)
Culture and recreation 3,792,528 469,707 56,446 745,154 (2,521,221) (2,521,221)
Interest expense 2,782,017 - 250,000 - (2,532,017) (2,532,017)
Total governmental activities 141,523,721 19,315,537 16,062,638 1,062,956 (105,082,590) (105,082,590)
Business-type activities:
Siasconset water 412,501 1,115,300 - - 702,799$ 702,799
Wannacomet water 4,746,503 7,156,644 - - 2,410,141 2,410,141
Sewer 11,591,322 8,642,626 - 2,190,217 (758,479) (758,479)
Nantucket Memorial Airport 17,630,422 15,994,710 3,560,965 14,180,281 16,105,534 16,105,534
Total business-type activities 34,380,748 32,909,280 3,560,965 16,370,498 18,459,995 18,459,995
Total Primary Government 175,904,469$ 52,224,817$ 19,623,603$ 17,433,454$ (105,082,590) 18,459,995 (86,622,595)
Component units:
Nantucket County 921,517$ 1,644,611$ 170,201$ -$ 893,295 -
Nantucket Islands Land Bank 10,126,133 55,461,191 413,732 - - 45,748,790
Total Component units 11,047,650$ 57,105,802$ 583,933$ -$ 893,295 45,748,790
General Revenues:
Property taxes 88,601,808 - 88,601,808 - -
Motor vehicle and boat excise 3,625,685 - 3,625,685 - -
Hotel and meals excise 9,797,223 - 9,797,223 - -
Community Preservation Fund surcharges 2,486,042 - 2,486,042 - -
Grants and contributions not restricted to
specific programs 278,227 - 278,227 - -
Penalties and interest on taxes 793,136 - 793,136 - -
Unrestricted investment income 591,186 67,831 659,017 15,096 202,637
Gain on sale of capital assets 231,999 - 231,999 - -
Miscellaneous 340,371 - 340,371 - 75,000
Transfers (net)(1,904,024) 1,904,024 - - -
Total general revenues and transfers 104,841,653 1,971,855 106,813,508 15,096 277,637
Change in Net Position (240,937) 20,431,850 20,190,913 908,391 46,026,427
Net Position:
Beginning of year, as restated (see Note V)136,047,058 136,103,104 272,150,162 8,296,988 418,149,388
End of year 135,806,121$ 156,534,954$ 292,341,075$ 9,205,379$ 464,175,815$
See accompanying notes to basic financial statements.
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Component Units
Town of Nantucket, Massachusetts Page 39 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2021
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Assets
Cash and cash equivalents 46,008,346$ 17,667,421$ 27,477,779$ 91,153,546$
Investments 11,711,749 - 222,864 11,934,613
Receivables, net of allowance for uncollectibles:
Property taxes 3,628,830 - 264,793 3,893,623
User charges 1,089,119 - - 1,089,119
Departmental and other 2,438,071 - 746,150 3,184,221
Tax liens 2,600,459 - - 2,600,459
Intergovernmental - - 18,501 18,501
Loans - - 2,678,200 2,678,200
Other assets 2,730 - - 2,730
Due from other funds 3,048,648 - - 3,048,648
Total Assets 70,527,952 17,667,421 31,408,287 119,603,660
Total Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources 70,527,952$ 17,667,421$ 31,408,287$ 119,603,660$
Liabilities:
Warrants and accounts payable 1,002,679$ 1,438,582$ 1,587,740$ 4,029,001$
Accrued payroll and withholdings 6,035,811 - 187,859 6,223,670
Unearned revenue - - 596,558 596,558
Other liabilities 1,663,060 - 205,403 1,868,463
Due to other funds - - 406,665 406,665
Bond anticipation notes payable - 5,632,900 4,347,500 9,980,400
Total Liabilities 8,701,550 7,071,482 7,331,725 23,104,757
Deferred Inflows of Resources
Taxes paid in advance 1,660,285 - - 1,660,285
Unavailable revenue - property taxes 5,023,589 - 264,793 5,288,382
Unavailable revenue - user charges 1,089,119 - - 1,089,119
Unavailable revenue - other 932,620 - 746,150 1,678,770
Total Deferred Inflows of Resources 8,705,613 - 1,010,943 9,716,556
Fund Balances:
Nonspendable 2,406,361 - 44,965 2,451,326
Restricted 55,245 12,252,420 23,760,105 36,067,770
Committed 9,787,120 - - 9,787,120
Assigned 6,415,772 - - 6,415,772
Unassigned 34,456,291 (1,656,481) (739,451) 32,060,359
Total Fund Balances 53,120,789 10,595,939 23,065,619 86,782,347
Total Liabilities , Deferred Inflows of Resources
and Fund Balances 70,527,952$ 17,667,421$ 31,408,287$ 119,603,660$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 40 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Total Governmental Fund Balances 86,782,347$
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds.333,760,463
Other long-term assets are not available to pay for current period expenditures and,
therefore, are reported as unavailable revenue in the funds 8,056,271
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 118,752
Deferred outflows related to net pension liability 10,239,039
Deferred outflows related to net other postemployment benefits liability 15,762,386
Deferred inflows related to net pension liability (7,910,753)
Deferred inflows related to net other postemployment benefits liability (6,232,262)
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.8,105,265
In the Statement of Activities, interest is accrued on outstanding long-term debt
whereas in the governmental funds, interest is not reported until due.(1,167,508)
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 (100,894,166)
Unamortized premiums on bonds (4,642,155)
Landfill closure liability (16,200,000)
Compensated absences (3,202,841)
Net other postemployment benefits liability (124,898,114)
Net pension liability (61,870,603)
Net Position of Governmental Activities 135,806,121$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 41 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2021
Town Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Revenues:
Property taxes 88,864,937$ -$ -$ 88,864,937$
Intergovernmental 12,201,507 - 4,748,632 16,950,139
Motor vehicle and other excises 3,410,925 - 34,614 3,445,539
User charges 10,052,709 - -10,052,709
Hotel and meals taxes 9,797,223 - -9,797,223
Community preservation surcharges - - 2,491,130 2,491,130
Licenses and permits 1,757,337 - - 1,757,337
Penalties and interest on taxes 793,136 - - 793,136
Fines and forfeitures 304,284 - - 304,284
Investment income 502,045 - 35,432 537,477
Departmental and other revenue 2,546,833 - 4,790,872 7,337,705
Contributions and donations 1,260 - 452,422 453,682
Total Revenues 130,232,196 - 12,553,102 142,785,298
Expenditures:
Current:
General government 10,987,157 1,103,156 11,930,812 24,021,125
Public safety 10,979,005 1,990,899 2,223,622 15,193,526
Education 30,987,592 1,343,326 3,379,175 35,710,093
Public works 14,286,419 5,709,178 973,121 20,968,718
Health and human services 6,965,883 131,215 925,594 8,022,692
Culture and recreation 1,080,292 - 2,262,979 3,343,271
Pension and fringe benefits 28,645,994 - -28,645,994
State and county assessments 1,169,441 - -1,169,441
Debt service:
Principal 5,061,950 - 583,793 5,645,743
Interest 3,153,473 - 49,728 3,203,201
Total Expenditures 113,317,206 10,277,774 22,328,824 145,923,804
Excess (Deficiency) of Revenues
Over (Under) Expenditures 16,914,990 (10,277,774) (9,775,722) (3,138,506)
Other Financing Sources (Uses):
Issuance of bonds and notes - 4,620,600 10,773,100 15,393,700
Premiums from bonds and notes 74,269 86,500 750,000 910,769
Sale of capital assets - - 231,999 231,999
Transfers in 80,553 3,195,800 550,000 3,826,353
Transfers out (4,701,536) (80,553) (948,288) (5,730,377)
Total Other Financing Sources (Uses)(4,546,714) 7,822,347 11,356,811 14,632,444
Net Change in Fund Balances 12,368,276 (2,455,427) 1,581,089 11,493,938
Fund Balances - Beginning, as restated (See Note V)40,752,513 13,051,366 21,484,530 75,288,409
Fund Balances - Ending 53,120,789$ 10,595,939$ 23,065,619$ 86,782,347$
See acompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 42 of 138 Annual Comprehensive 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, 2021
Net Change in Fund Balances - Total Governmental Fund Balances 11,493,938$
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 15,650,643
Depreciation expense (7,726,804)
Net effect of reporting capital assets 7,923,839
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.831,571
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 (15,393,700)
Premiums from general obligation bonds and notes (910,769)
Repayments of debt 5,645,743
Net effect of reporting long-term debt (10,658,726)
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.115,802
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 (129,354)
Amortization of premiums on bonds and notes payable 567,502
Amortization of deferred charges on refunding (16,964)
Landfill closure (1,500,000)
Compensated absences (211,161)
Pension benefits (1,029,303)
Other postemployment benefits (7,628,081)
Net effect of reporting long-term liabilities (9,947,361)
Change in Net Position of Governmental Activities (240,937)$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 43 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Assets:
Current assets:
Cash and cash equivalents 2,305,228$ 7,901,948$ 10,183,957$ 19,070,184$ 39,461,317$ 9,521,245$
Investments - 933,079 - 1,133,983 2,067,062 -
Receivables (net):
User charges 154,903 758,136 1,101,702 649,665 2,664,406 -
Privilege fees - - 855,742 - 855,742 -
Intergovernmental - - 203,037 5,733,461 5,936,498 -
Inventory - 484,090 - 220,443 704,533 -
Reinsured claims receivable - -- -- 477,261
Prepaid items - -- -- 23,647
Total current assets 2,460,131 10,077,253 12,344,438 26,807,736 51,689,558 10,022,153
Noncurrent assets:
Receivables (net):
Intergovernmental - - 384,464 - 384,464 -
Nondepreciable capital assets 2,651,378 8,408,080 33,642,072 17,263,001 61,964,531 -
Capital assets (net of depreciation)8,470,617 34,698,927 86,486,778 58,582,409 188,238,731 -
Total noncurrent assets 11,121,995 43,107,007 120,513,314 75,845,410 250,587,726 -
Total Assets 13,582,126 53,184,260 132,857,752 102,653,146 302,277,284 10,022,153
Deferred Outflows of Resources
Related to losses on refunding 219,442 218,976 62,117 - 500,535 -
Related to net other postemployment benefits liability 46,289 186,609 34,747 608,714 876,359 -
Related to net pension liability 24,522 506,373 308,973 1,181,947 2,021,815 -
Total Deferred Outflows of Resources 290,253 911,958 405,837 1,790,661 3,398,709 -
Total Assets and Deferred Outflows of Resources 13,872,379$ 54,096,218$ 133,263,589$ 104,443,807$ 305,675,993$ 10,022,153$
Liabilities:
Current liabilities:
Warrants and accounts payable -$ 202,133$ 322,426$ 1,169,825$ 1,694,384$ 98,171$
Accrued payroll and withholdings 2,288 78,713 96,091 229,291 406,383 -
Health claims incurred but not reported - - - - - 1,049,282
Accrued interest 21,780 202,430 598,285 159,682 982,177 -
Due to other funds - - - 235,621 235,621 -
Other liabilities 7,366 126,237 19,407 512,474 665,484 -
Bond anticipation notes payable - 100,000 9,274,300 11,000,000 20,374,300 -
Compensated absences - 151,895 73,782 323,330 549,007 -
Workers' compensation claims - -- - - 40,778
Bonds and notes payable 498,451 2,354,825 4,889,423 667,113 8,409,812 -
Total current liabilities 529,885 3,216,233 15,273,714 14,297,336 33,317,168 1,188,231
Noncurrent liabilities:
Due to other funds - - - 2,406,362 2,406,362 -
Compensated absences - 151,896 73,783 323,331 549,010 -
Net other postemployment benefits liability 366,788 1,478,656 275,329 4,823,336 6,944,109 -
Net pension liability 148,175 3,059,820 1,867,009 7,142,050 12,217,054 -
Bonds and notes payable 3,980,980 16,954,430 64,978,660 6,613,354 92,527,424 -
Total noncurrent liabilities 4,495,943 21,644,802 67,194,781 21,308,433 114,643,959 -
Total Liabilities 5,025,828 24,861,035 82,468,495 35,605,769 147,961,127 1,188,231
Deferred Inflows of Resources
Related to net pension liability 18,945 391,227 238,715 913,179 1,562,066 -
Related to net other postemployment benefits liability 18,302 73,783 13,739 240,679 346,503 -
37,247 465,010 252,454 1,153,858 1,908,569 -
Total Liabilities and Deferred Inflows of Resources 5,063,075 25,326,045 82,720,949 36,759,627 149,869,696 1,188,231
Net Position:
Net investment in capital assets 6,862,006 23,916,728 41,062,860 60,064,405 131,905,999 -
Unrestricted 1,947,298 4,853,445 9,479,780 7,619,775 23,900,298 8,833,922
Total Net Position 8,809,304$ 28,770,173$ 50,542,640$ 67,684,180$ 155,806,297 8,833,922$
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 728,657
Net position of business-type activities (page 40)156,534,954$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 44 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
YEAR ENDED JUNE 30, 2021
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Operating Revenues:
Charges for services 1,115,300$ 6,810,112$ 8,382,996$ 15,994,710$ 32,303,118$ -$
Employee contributions - - - - - 2,210,295
Employer contributions - - - - - 15,434,759
Other - 346,532 259,630 - 606,162 946,347
Total Operating Revenues 1,115,300 7,156,644 8,642,626 15,994,710 32,909,280 18,591,401
Operating Expenses:
Operating costs 46,394 3,069,512 6,983,915 14,236,679 24,336,500 -
Depreciation 273,258 1,140,913 3,002,411 3,079,275 7,495,857 -
Employee benefits - - - - - 17,747,793
Total Operating Expenses 319,652 4,210,425 9,986,326 17,315,954 31,832,357 17,747,793
Total Operating Income (loss)795,648 2,946,219 (1,343,700) (1,321,244) 1,076,923 843,608
Nonoperating Revenues (Expenses):
Intergovernmental - - - 3,560,965 3,560,965 -
Investment income 1,655 18,564 - 47,612 67,831 53,709
Interest expense (94,777) (548,709) (1,642,356) (328,295) (2,614,137) -
Total Nonoperating Revenues (Expenses)(93,122) (530,145) (1,642,356) 3,280,282 1,014,659 53,709
Income (Loss) Before Capital Contributions
and Transfers 702,526 2,416,074 (2,986,056) 1,959,038 2,091,582 897,317
Capital Contributions
Intergovernmental - - 547,041 14,180,281 14,727,322 -
Other - - 1,643,176 - 1,643,176 -
- - 2,190,217 14,180,281 16,370,498 -
Transfers
Transfers in - - 1,904,024 - 1,904,024 -
Transfers - - 1,904,024 - 1,904,024 -
Change in Net Position 702,526 2,416,074 1,108,185 16,139,319 20,366,104 897,317
Net Position at Beginning of Year, 8,106,778 26,354,099 49,434,455 51,544,861 7,936,605
Net Position at End of Year 8,809,304$ 28,770,173$ 50,542,640$ 67,684,180$ 8,833,922$
Adjustment for the net effect of the current year activity between
the internal service funds and the enterprise funds 65,746
Changes in net position of business-type activities (page 41)20,431,850$
See accompanying notes to basic financial statements.
Business-Type Activities
Town of Nantucket, Massachusetts Page 45 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
Governmental
Activities
Nantucket Internal
Siasconset Wannacomet Memorial Service
Water Water Sewer Airport Total Fund
Cash Flows from Operating Activities:
Receipts from users 1,089,076$ 6,625,244$ 8,171,643$ 15,593,608$ 31,479,571$ -$
Employee contributions - - - - - 2,210,295
Employer contributions - - - - - 15,434,759
Receipts from other operating revenues - 346,532 259,630 - 606,162 1,155,639
Payments to employees - (1,235,457) (1,497,507) (4,792,677) (7,525,641) -
Payments to vendors (304,641) (1,764,963) (5,821,715) (8,550,951) (16,442,270) -
Payments for interfund services used - - - - - (17,433,601)
Net Cash Provided by (Used in) Operating
Activities 784,435 3,971,356 1,112,051 2,249,980 8,117,822 1,367,092
Cash Flows from Noncapital Financing Activities:
Operating grants - - - 3,560,965 3,560,965 -
Net Cash Provided by (Used in) Noncapital
Financing Activities - - 1,904,024 3,560,965 5,464,989 -
Cash Flows from Capital and Related Financing Activities:
Proceeds from the issuance of bonds and notes 245,000 2,648,500 2,733,000 - 5,626,500 -
Sewer privilege fees - - 2,341,193 - 2,341,193 -
Proceeds from capital grants - - - 8,909,669 8,909,669 -
Acquisition and construction of capital assets 69,403 (1,404,717) (4,070,432) (12,742,539) (18,148,285) -
Premiums on general obligation bonds - 411,056 109,347 - 520,403 -
Premiums on refunding bonds - - - 446,338 446,338 -
Proceeds from the issuance of refunding bonds - - - 3,105,000 3,105,000 -
Payments to refunding bond escrow agent - - - (3,481,525) (3,481,525) -
Proceeds from bond anticipation notes - 100,000 12,429,848 11,000,000 23,529,848 -
Repayments of bond anticipation notes (250,000) (1,875,000) (7,245,313) (4,656,200) (14,026,513) -
Principal payments on bonds and notes (395,000) (1,785,000) (4,138,281) (620,000) (6,938,281) -
Interest payments on bonds and notes (152,407) (657,705) (1,122,298) (196,969) (2,129,379) -
Net Cash Used in Capital and Related
Financing Activities (483,004) (2,562,866) 1,037,064 1,763,774 (245,032) -
Cash Flows from Investing Activities:
Investment income 1,655 18,564 - 47,612 67,831 53,709
Investment of operating cash - (933,079) - (29,589) (962,668) 247,579
Net Cash Provided by (Used in) Investing Activities 1,655 (914,515) - 18,023 (894,837) 301,288
Net Change in Cash and Cash Equivalents 303,086 493,975 4,053,139 7,592,742 12,442,942 1,668,380
Cash and Cash Equivalents:
Beginning of the year 2,002,142 7,407,973 6,130,818 11,477,442 27,018,375 7,852,865
End of the year 2,305,228$ 7,901,948$ 10,183,957$ 19,070,184$ 39,461,317$ 9,521,245$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating Income (Loss)795,648$ 2,946,219$ (1,343,700)$ (1,321,244)$ 1,076,923$ 843,608$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 273,258 1,140,913 3,002,411 3,079,275 7,495,857 -
Changes in assets, deferred outflows,
liabilities and deferred inflows
Receivables (26,224) (184,868) (211,353) (401,102) (823,547) 209,292
Prepaid items - - - - - 507,070
Inventory - (17,561) - 99,062 81,501 -
Deferred outflows of resources (5,019) (51,526) (26,079) (132,001) (214,625) -
Accounts payable and accrued expenses (4,104) (69,413) (353,264) 866,330 439,549 (173,293)
Accrued benefits payable 18,081 74,613 2,651 175,552 270,897 (19,585)
Due to other funds - - - (235,621) (235,621) -
Other liabilities 7,366 126,237 19,407 32,231 185,241 -
Deferred inflows of resources (274,571) 6,742 21,978 87,498 (158,353) -
Net Cash Provided by (Used in) Operating
Activities 784,435$ 3,971,356$ 1,112,051$ 2,249,980$ 8,117,822$ 1,367,092$
Noncash investing capital and financing activities:
Intergovernmental subsidies of debt service -$ -$ 547,046$ -$ 547,046$ -$
Amortization of bond premiums 85,767 192,689 105,682 32,519 416,657 -
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 46 of 138 Annual Comprehensive Financial Report
TOWN OF NANUCKET, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021
Other
Postemployment Private
Benefits Purpose
Trust Fund Trust Funds
Assets:
Cash and cash equivalents 47,201$ 149,538$
Investments:
Equities 2,751,908 -
Government securities 1,449,541 1,986,716
Receivables, net of allowance for uncollectibles - -
Total Assets 4,248,650 2,136,254
Liabilities:
Warrants payable - -
Accrued payroll and withholdings - -
Agency liabilities - -
Planning board deposits - -
Total Liabilities - -
Net Position:
Restricted for other postemployment benefits 4,248,650 -
Restricted for private purposes - 2,136,254
Total Net Position 4,248,650$ 2,136,254$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 47 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2021
Other
Postemployment Private
Benefits Purpose
Trust Fund Trust Funds
Additions
Contributions:
Employer 4,054,743$ -$
Other - 123,170
Total contributions 4,054,743 123,170
Investment income:
Interest and dividends 85,996 104,384
Unrealized gain (loss) on investments 481,413 -
Net investment earnings 567,409 104,384
Total Additions (net)4,622,152 227,554
Deductions
Life and health insurance premiums paid for retirees 4,054,743 -
Education - scholarships - 144,500
Total Deductions 4,054,743 144,500
CHANGE IN NET POSITION 567,409 83,054
NET POSITION AT BEGINNING OF YEAR 3,681,241 2,053,200
NET POSITION AT END OF YEAR 4,248,650$ 2,136,254$
See accompanying notes to basic financial statements.
Town of Nantucket, Massachusetts Page 48 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2021
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, 2021 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, 2021 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 49 of 138 Annual Comprehensive 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 50 of 138 Annual Comprehensive 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 51 of 138 Annual Comprehensive 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.
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.
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
Town of Nantucket, Massachusetts Page 52 of 138 Annual Comprehensive Financial Report
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.
Loan receivables are principally comprised of funds advanced to developers under various grant
and loan agreements. The Town loans funds through its Affordable Housing Trust Fund to
owners of commercial and residential properties for the purpose of rehabilitating these properties
and providing affordable housing for the Town’s inhabitants. These loans are repaid to the Town
under various terms and conditions stipulated by each mortgage agreement. The collected
proceeds of these loans may be used for any eligible activity relevant to the affordable housing
trust fund.
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.
Town of Nantucket, Massachusetts Page 53 of 138 Annual Comprehensive Financial Report
All purchases and construction costs in excess of $10,000 are capitalized at the date of acquisition
or construction, respectively, with expected lives of greater than one year. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized.
Capital assets (excluding land and construction-in-process) are depreciated on a straight-line-
basis. The estimated useful lives of capital assets being depreciated are as follows:
Buildings and improvements 33-50 years
Machinery and equipment 5-7 years
Vehicles 5-10 years
Infrastructure 40-70 years
Interfund Balances – Activity between funds that are representative of lending arrangements
outstanding at the end of the fiscal year are referred to as either due to/from other funds or
advances to/from other funds. All other outstanding balances between funds are reported as due
to/from other funds.
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as internal balances.
Interfund Transfers – During the course of its operations, resources are permanently reallocated
between and within funds. These transactions are reported as transfers in and transfers out in the
individual fund statements. Transfers between and within governmental and fiduciary funds are
eliminated from the governmental activities in the statement of activities. Any residual balances
outstanding between the governmental activities and the business –type activities are reported in
the statement of activities as transfers, net.
Investment Income – Excluding the permanent funds, investment income derived from major and
nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by
state law. Investment income of the proprietary funds is assigned to the fund within which it
applies.
Compensated Absences – It is the Town’s policy to permit employees to accumulate earned but
unused sick pay benefits. Vacation time may be carried for a period of 6 months subsequent to
year-end and if not used during this period is lost. Compensated absence liabilities related to both
governmental and business-type activities are normally paid from the funds reporting payroll and
related expenditures. Amounts related to these benefits are accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is
reported in Governmental Funds only if they have matured.
Long-term Obligations – Long-term debt is reported as a liability in the government-wide and
proprietary fund statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bond anticipation notes
payable are reported net of the applicable bond premium or discount.
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.
Town of Nantucket, Massachusetts Page 54 of 138 Annual Comprehensive Financial Report
Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial position
will sometimes report a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources
expense/expenditure) until then. The Town has 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
three types of items that are reported on the government-wide statement of net position which
relate to taxes paid in advance, 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 has an additional 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.
Town of Nantucket, Massachusetts Page 55 of 138 Annual Comprehensive Financial Report
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.
Other purposes represent assets that are restricted for numerous various minor specific
governmental programs and uses.
Fund Equity – In the fund financial statements, fund balance for governmental funds is reported
in classifications that comprise a hierarchy based primarily on the extent in which the Town is
required to honor constraints on the specific purpose for which amounts in the funds can be spent.
Fund balance is reported in five components – nonspendable, restricted, committed, assigned, and
unassigned as described below:
Nonspendable represents amounts that cannot be spent because they are either (a) not in
spendable form (i.e. inventory or prepaid) or (b) legally or contractually required to be
maintained intact such as the corpus of an endowment.
Restricted represents amounts that have constraints placed either externally by third-parties
(creditors, grantors, contributors, or laws or regulations of other governments) or by law
through constitutional provisions or enabling legislation. Enabling legislation authorizes the
Town to assess, levy, charge or otherwise mandate payment of resources (from external
resource providers) and includes a legally enforceable requirement (compelled by external
parties) that those resources be used only for the specific purposes stipulated in the
legislation.
Committed represents amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the Town Meeting through Town Meeting Articles,
which represent the most binding constraint that give rise to committed fund balance. Those
committed amounts cannot be used for any other purpose unless the Town Meeting removes
or changes the specified use by taking the same type of action (through Town Meeting
Articles) it employed previously to commit those amounts.
Assigned represents amounts that are constrained by the Town’s intent to be used for
specific purposes, but are neither restricted nor committed. The Town has by ordinance
authorized the Director of Municipal Finance to assign fund balance. The Town Meeting
may also assign fund balance as it does when appropriating fund balance to cover a gap
between estimated revenue and appropriations in the subsequent year’s appropriated budget.
Unassigned represents amounts that have not been restricted, committed or assigned to
specific purposes within the general fund. The general fund is the only fund that reports a
positive unassigned fund balance amount. Other governmental funds besides the general
fund can only report a negative unassigned fund balance amount.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to
use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as
they are needed. When unrestricted resources (committed, assigned and unassigned) are available
for use it is the Town’s policy to use committed resources first, then assigned, and then
unassigned as they are needed. The Town has not established financial policies with respect to
maintaining minimum fund balance amounts.
Town of Nantucket, Massachusetts Page 56 of 138 Annual Comprehensive Financial Report
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 $1,598,518 of encumbrances from normal purchasing
activity in the general fund as assigned and $1,381,045 of encumbrances from Town Meeting
Articles in the general fund as committed. There are no encumbrances reported in any other fund.
The following table reflects the Town’s fund equity categorizations:
Stabilization Funds – 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 $5,770,018
at June 30, 2021 and is reported as unassigned fund balance in the General Fund.
Town Nonmajor
Capital Governmental
General Projects Funds Total
Nonspendable:
Non-current portion of interfund loans 2,406,361$ -$ -$ 2,406,361$
Nonexpendable trust funds - - 44,965 44,965
Restricted:
School grants - - 517,468 517,468
Town grants - - 2,466,721 2,466,721
School revolving - - 2,025,191 2,025,191
Ambulance - - 967,159 967,159
Beach improvements - - 1,633,434 1,633,434
Waterway improvements - - 1,420,574 1,420,574
Insurance proceeds - - 274,502 274,502
Other Town revolving - - 3,657,851 3,657,851
Capital outlay - 12,252,420 2,381,370 14,633,790
Community preservation -- 5,911,610 5,911,610
Gift funds -- 1,247,900 1,247,900
Affordable housing -- 1,078,426 1,078,426
Expendable trust funds -- 177,899 177,899
Debt service 55,245 - - 55,245
Committed:
Nursing home 6,686,371 - - 6,686,371
Solid waste landfill 1,719,704 - - 1,719,704
Capital outlay 1,152,831 - - 1,152,831
Other purposes 228,214 - - 228,214
Assigned:
Town administration 219,875 - - 219,875
Public works 274,664 - - 274,664
Education 649,874 - - 649,874
Public safety 215,098 - - 215,098
Other purposes 239,007 - - 239,007
Subsequent years' budget 4,817,254 - - 4,817,254
Unassigned 34,456,291 (1,656,481) (739,451) 32,060,359
53,120,789$ 10,595,939$ 23,065,619$ 86,782,347$
Town of Nantucket, Massachusetts Page 57 of 138 Annual Comprehensive 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 $1,302,038 at June 30, 2021 and is
reported as unassigned fund balance in the General Fund.
The Town maintains a substance abuse stabilization fund, in accordance with Massachusetts
General Law Chapter 40, Section 5B, which may be used for any municipal substance abuse or
mental health purpose upon a two-thirds vote of the Town Meeting. The balance of the fund
totals $148,551 at June 30, 2021 and is reported as unassigned fund balance in the General Fund.
E.Excess of Expenditures Over Appropriations and Deficits
During the fiscal year ended, the Town overspent its appropriation for snow and ice removal by
$80,773, which will be funded from available revenues in the subsequent year.
The Town incurred deficits of $1,656,481 for capital outlays which is reported in the Town
Capital Projects major fund and $739,451 for road infrastructure projects 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.
Town of Nantucket, Massachusetts Page 58 of 138 Annual Comprehensive Financial Report
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 $140,332,847 and the bank balance
was $141,394,496. Of the Town's bank balance, $61,107,125 was covered by federal depository
insurance or the Depositors Insurance Fund, $2,248,789 was collateralized and the remainder was
uninsured.
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 $1 billion with no individual client limit. The Town’s
investments in certificates of deposit are fully insured by federal depository insurance or the
Depositors Insurance Fund or collateralized.
Interest Rate Risk – The Town limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The policy limits investments of
operating funds to one year or less and limits investment maturities of trust funds and other
special funds to periods no longer that seven years, maintaining an average maturity no greater
than three years for the investment portfolio.
At June 30, 2021, the Town’s investments had the following maturities:
Fair Value of Investments – The Town reports its investments at fair value. When actively
quoted observable prices are not available, the Town generally uses either implied pricing from
similar investments or valuation models based on net present values of estimated future cash
flows (adjusted as appropriate for liquidity, credit, market and/or other risk factors).
Time Until Maturity (Years)
Less
Investment Type 6/30/21 Than 1 1-5 6-10
U.S. government obligations 8,360,144$ 3,445,243$ 4,914,901$ -$
Certificates of deposit 2,726,508 2,726,508 - -
State investment pool (MMDT)3,179,319 3,179,319 - -
Total Town investments with maturities 14,265,971$ 9,351,070$ 4,914,901$ -$
Town of Nantucket, Massachusetts Page 59 of 138 Annual Comprehensive Financial Report
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, 2021:
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.
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 41% 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,
6/30/21 Level 1 Level 2 Level 3
Investments by fair value level
Debt securities:
U.S. Government obligations 8,360,144$ -$ 8,360,144$ -$
Total debt securities 8,360,144 - 8,360,144 -
Equity securities:
Common stock 5,923,869 5,923,869 - -
Total equity securities 5,923,869 5,923,869 - -
Certificates of deposit 2,726,508 - 2,726,508 -
Total investments by fair value level 17,010,521$ 5,923,869$ 11,086,652$ -$
Investments measured at amortized cost
MMDT 3,179,319
Total investments 20,189,840$
Fair Value Measurements Using
Town of Nantucket, Massachusetts Page 60 of 138 Annual Comprehensive 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, 2021, 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.
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 $6,882,665 and the entire bank
balance of $6,906,697 was covered by either federal depository insurance or by the Depositors’
Insurance Fund (DIF).
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, 2021:
Series A Debt Reserve $ 639,725
Mitigation agreements 76,994
$ 716,719
Town of Nantucket, Massachusetts Page 61 of 138 Annual Comprehensive Financial Report
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 $37,000,000, of which approximately $1,469,000 was exposed to custodial credit
risk.
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 $5,274,743
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 $2,848,976 which mature in May 2022 and have a Moody’s quality rating of AAA.
At June 30, 2021, all investments are categorized in Level 1 of the fair value hierarchy based on
quoted market prices, except for certificates of deposit which are categorized in Level 2.
The Land Bank has entered into an agreement with the Town, which requires the Land Bank to
establish a working capital reserve fund. This fund, along with the guarantee of the Town of its
full faith and credit, secures the Series 2009A, 2012A and 2016A bonds outstanding at year-end.
In addition, the Land Bank is prohibited from acquiring additional real estate at any time that an
amount equal to one year’s debt service relating to the bonds in the reserve fund is not on deposit.
Interest Rate Risk -The Land Bank does not have a formal policy regarding interest rate risk.
B.Receivables
Receivables as of year-end for the Town’s individual major and non-major governmental funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes 4,005,795$ (376,965)$ 3,628,830$
Tax liens 2,600,459 - 2,600,459
Motor vehicle and other excise taxes 2,459,687 (71,114) 2,388,573
Community preservation surcharges 264,793 - 264,793
Nursing home user charges 615,189 - 615,189
Landfill user charges 644,041 (170,111) 473,930
Ambulance user charges 1,274,197 (602,000) 672,197
Departmental and other 123,451 - 123,451
Mortgage loans 2,678,200 - 2,678,200
Intergovernmental 18,501 - 18,501
Total 14,684,313$ (1,220,190)$ 13,464,123$
Town of Nantucket, Massachusetts Page 62 of 138 Annual Comprehensive 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 $573,225 and interest in the amount
of $4,168,814 until the maturity of these agreements. GAAP requires the recognition of gross
debt relative to these agreements; therefore, a receivable totaling $573,225 has been reported in
the Sewer Enterprise Fund.
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Water user charges 913,039$ -$ 913,039$
Sewer user charges 1,101,702 - 1,101,702
Sewer privilege fees 855,742 - 855,742
Airport user charges 649,665 - 649,665
Stop loss receivable 477,261 - 477,261
Intergovernmental 6,320,962 - 6,320,962
Total 10,318,371$ -$ 10,318,371$
Other
General Governmental
Fund Funds Total
Receivable type:
Real estate and personal property taxes 4,083,415$ -$ 4,083,415$
Tax liens 2,600,459 - 2,600,459
Motor vehicle and other excise taxes 883,122 - 883,122
Community preservation surcharges - 264,793 264,793
Nursing home user charges 615,189 - 615,189
Landfill user charges 473,930 - 473,930
Ambulance user charges - 672,197 672,197
Departmental and other 49,498 73,953 123,451
Total 8,705,613$ 1,010,943$ 9,716,556$
Town of Nantucket, Massachusetts Page 63 of 138 Annual Comprehensive Financial Report
C. Capital Assets
Capital asset activity for the year ended June 30, 2021, was as follows:
.
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land 180,572,310$ 5,719,237$ -$ 186,291,547$
Construction in process 31,935,217 6,153,395 (26,816,449) 11,272,163
Total capital assets not being depreciated 212,507,527 11,872,632 (26,816,449) 197,563,710
Capital assets being depreciated:
Buildings and improvements 111,494,421 22,272,816 (170,398) 133,596,839
Infrastructure 46,645,485 6,088,870 (249,878) 52,484,477
Machinery and equipment 11,332,120 1,717,695 (153,350) 12,896,465
Vehicles 10,928,350 515,079 (419,642) 11,023,787
Total capital assets being depreciated 180,400,376 30,594,460 (993,268) 210,001,568
Less accumulated depreciation for:
Buildings and improvements (35,900,818) (3,699,053) 170,398 (39,429,473)
Infrastructure (18,011,264) (2,151,213) 249,878 (19,912,599)
Machinery and equipment (5,633,776) (1,113,914) 153,350 (6,594,340)
Vehicles (7,525,421) (762,624) 419,642 (7,868,403)
Total accumulated depreciation (67,071,279) (7,726,804) 993,268 (73,804,815)
Total capital assets being depreciated, net 113,329,097 22,867,656 - 136,196,753
Total governmental activities capital assets, net 325,836,624$ 34,740,288$ (26,816,449)$ 333,760,463$
Business-Type Activities:
Capital assets not being depreciated:
Land 16,805,385$ -$ -$ 16,805,385$
Construction in process 43,128,649 17,992,323 (15,961,826) 45,159,146
Total capital assets not being depreciated 59,934,034 17,992,323 (15,961,826) 61,964,531
Capital assets being depreciated:
Buildings and improvements 65,802,327 9,001,609 - 74,803,936
Infrastructure 183,440,633 5,738,657 (7,561) 189,171,729
Machinery and equipment 22,560,944 1,200,223 (24,171) 23,736,996
Vehicles 8,332,623 177,299 (109,939) 8,399,983
Total capital assets being depreciated 280,136,527 16,117,788 (141,671) 296,112,644
Less accumulated depreciation for:
Buildings and improvements (13,234,366) (1,785,015) - (15,019,381)
Infrastructure (65,957,840) (4,122,790) 7,561 (70,073,069)
Machinery and equipment (16,054,518) (937,096) 24,171 (16,967,443)
Vehicles (5,273,003) (650,956) 109,939 (5,814,020)
Total accumulated depreciation (100,519,727) (7,495,857) 141,671 (107,873,913)
Total capital assets being depreciated, net 179,616,800 8,621,931 - 188,238,731
Total business-type activities capital assets, net 239,550,834$ 26,614,254$ (15,961,826)$ 250,203,262$
Town of Nantucket, Massachusetts Page 64 of 138 Annual Comprehensive 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 - (69,403) 35,800
Total capital assets not being depreciated 2,720,781 - (69,403) 2,651,378
Capital assets being depreciated:
Buildings and improvements 803,999 - - 803,999
Infrastructure 9,790,565 - - 9,790,565
Machinery and equipment 780,697 - - 780,697
Total capital assets being depreciated 11,375,261 - - 11,375,261
Less accumulated depreciation for:
Buildings and improvements (223,649) (29,827) - (253,476)
Infrastructure (2,238,715) (191,997) - (2,430,712)
Machinery and equipment (169,022) (51,434) - (220,456)
Total accumulated depreciation (2,631,386) (273,258) - (2,904,644)
Total capital assets being depreciated, net 8,743,875 (273,258) - 8,470,617
Total Siasconset Water capital assets, net 11,464,656$ (273,258)$ (69,403)$ 11,121,995$
Business-type Activities: Wannacomet Water
Capital assets not being depreciated:
Land 5,434,455$ -$ -$ 5,434,455$
Construction in process 1,568,908 1,439,017 (34,300) 2,973,625
Total capital assets not being depreciated 7,003,363 1,439,017 (34,300) 8,408,080
Capital assets being depreciated:
Buildings and improvements 5,564,191 - - 5,564,191
Infrastructure 41,188,198 - (7,561) 41,180,637
Machinery and equipment 1,784,081 - (3,171) 1,780,910
Vehicles 347,436 - - 347,436
Total capital assets being depreciated 48,883,906 - (10,732) 48,873,174
Less accumulated depreciation for:
Buildings and improvements (630,943) (165,350) - (796,293)
Infrastructure (11,564,363) (853,927) 7,561 (12,410,729)
Machinery and equipment (603,292) (87,656) 3,171 (687,777)
Vehicles (245,468) (33,980) - (279,448)
Total accumulated depreciation (13,044,066) (1,140,913) 10,732 (14,174,247)
Total capital assets being depreciated, net 35,839,840 (1,140,913) - 34,698,927
Total Wannacomet Water capital assets, net 42,843,203$ 298,104$ (34,300)$ 43,107,007$
Town of Nantucket, Massachusetts Page 65 of 138 Annual Comprehensive 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 36,957,141 4,165,243 (13,855,895) 27,266,489
Total capital assets not being depreciated 43,332,724 4,165,243 (13,855,895) 33,642,072
Capital assets being depreciated:
Buildings and improvements 6,047,638 8,776,609 - 14,824,247
Infrastructure 90,614,528 4,708,657 - 95,323,185
Machinery and equipment 17,345,385 275,818 (9,000) 17,612,203
Vehicles 2,598,472 - - 2,598,472
Total capital assets being depreciated 116,606,023 13,761,084 (9,000) 130,358,107
Less accumulated depreciation for:
Buildings and improvements (285,095) (281,567) - (566,662)
Infrastructure (25,521,056) (1,885,631) - (27,406,687)
Machinery and equipment (13,954,411) (561,666) 9,000 (14,507,077)
Vehicles (1,117,356) (273,547) - (1,390,903)
Total accumulated depreciation (40,877,918) (3,002,411) 9,000 (43,871,329)
Total capital assets being depreciated, net 75,728,105 10,758,673 - 86,486,778
Total Sewer capital assets, net 119,060,829$ 14,923,916$ (13,855,895)$ 120,128,850$
Capital assets not being depreciated:
Land 2,379,769$ -$ -$ 2,379,769$
Construction in process 4,497,397 12,388,063 (2,002,228) 14,883,232
Total capital assets not being depreciated 6,877,166 12,388,063 (2,002,228) 17,263,001
Capital assets being depreciated:
Infrastructure 41,847,342 1,030,000 - 42,877,342
Buildings and improvements 53,386,499 225,000 - 53,611,499
Machinery and equipment 2,650,781 924,405 (12,000) 3,563,186
Vehicles 5,386,715 177,299 (109,939) 5,454,075
Total capital assets being depreciated 103,271,337 2,356,704 (121,939) 105,506,102
Less accumulated depreciation for:
Infrastructure (26,633,706) (1,191,235) - (27,824,941)
Buildings and improvements (12,094,679) (1,308,271) - (13,402,950)
Machinery and equipment (1,327,793) (236,340) 12,000 (1,552,133)
Vehicles (3,910,179) (343,429) 109,939 (4,143,669)
Total accumulated depreciation (43,966,357) (3,079,275) 121,939 (46,923,693)
Total capital assets being depreciated, net 59,304,980 (722,571) - 58,582,409
Total Nantucket Memorial Airport capital assets, net 66,182,146$ 11,665,492$ (2,002,228)$ 75,845,410$
Business-type Activities: Nantucket Memorial Airport
Town of Nantucket, Massachusetts Page 66 of 138 Annual Comprehensive Financial Report
Depreciation expense was charged to functions/programs as follows:
Governmental Activities:Business-Type Activities:
General government 425,522$ Water 1,414,171$
Public safety 1,698,086 Sewer 3,002,411
Education 2,971,877 Airport 3,079,275
Public works 2,384,860 7,495,857$
Health and human services 246,459
7,726,804$
Discretely Presented Component Unit - Nantucket County
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 3,283,842$ 125,000$ -$ 3,408,842$
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$ 125,000$ -$ 3,408,842$
Discretely Presented Component Unit - Nantucket Islands Land Bank
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land 390,040,595$ 11,260,000$ -$ 401,300,595$
Capital assets being depreciated:
Buildings, improvements and equipment 45,281,360 5,573,384 - 50,854,744
Less: accumulated depreciation (13,684,426) (1,532,830) - (15,217,256)
Total capital assets being depreciated, net 31,596,934 4,040,554 - 35,637,488
Total Nantucket Islands Land Bank
capital assets, net 421,637,529$ 15,300,554$ -$ 436,938,083$
Town of Nantucket, Massachusetts Page 67 of 138 Annual Comprehensive Financial Report
D.Interfund Receivables, Payables and Transfers
The composition of interfund balances at June 30, 2021 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, 2021, was as follows:
E.Temporary Debt
The Town is authorized to borrow on a temporary basis to fund the following:
Current Operating Costs – Prior to collection of revenues, expenditures may be financed through
the issuance of revenue or tax anticipation notes (RANS or TANS).
Capital Projects and Other Approved Costs – Projects may be temporarily funded through the
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). In certain cases,
prior to the issuance of these temporary notes, the governing body must take the necessary legal
steps to authorize the issuance of the general obligation bonds. Temporary notes may not exceed
the aggregate amount of bonds authorized or the grant award amount and carry maturity dates
that are limited by state law. Interest expenditures and expenses for temporary borrowings are
accounted for in the general fund and enterprise funds, respectively.
Amount
General Fund Nonmajor Governmental Funds -406,665$
Road Improvements
General Fund Enterprise Fund -
Nantucket Memorial Airport 2,641,983
Total 3,048,648$
Receivable Fund Payable Fund
Town Nonmajor
General Capital Governmental
Fund Projects Funds Sewer Total
General Fund -$ 3,095,800$ 550,000$ 1,055,736$ 4,701,536$ (1)
Town Capital Projects 80,553 - - - 80,553 (2)
Nonmajor Governmental Funds -100,000 - 848,288 948,288 (2)
Total 80,553$ 3,195,800$ 550,000$ 1,904,024$ 5,730,377$
(1) Transfer to town capital projects for various capital outlays; transfers to nonmajor funds to fund community school
programs and transfers to sewer fund for debt service.
(2) Transfers to general fund to supplement operating budgets and transfers town capital projects for capital outlays.
Transfers In
Transfers Out
Town of Nantucket, Massachusetts Page 68 of 138 Annual Comprehensive Financial Report
Short-term (BANs) issued for nonmajor governmental funds were used for roadways, sidewalks
and bike paths ($460,000), town pier ($390,000), nursing home construction ($380,000), other
building projects ($2,500,000), stormwater improvements ($1,152,900), affordable housing
acquisitions ($4,347,500) and other projects ($750,000). Those issued for business-type funds
were issued for water projects ($100,000), sewer projects ($9,274,300) and airport projects
($11,000,000).
Temporary notes outstanding at June 30, 2021, are payable as follows:
On October 14, 2021, the Town issued general obligations bonds totaling $17,955,000. A portion
of the proceeds were used to retire $11,620,300 of BANS outstanding at June 30, 2021 that
matured on October 15, 2021. The retired BANS are shown as long-term debt obligations in
these financial statements.
Interest Maturity July 1,June 30,
Type Rate Date 2020 Additions Retirements 2021
MCWT 0.00% matured 2,000,000 - (2,000,000) -
BAN 1.25% matured 6,205,000 - (6,205,000) -
BAN 1.50% matured 3,585,000 - (3,585,000) -
BAN 2.00%10/15/21 - 5,955,000 (2,262,100) 3,692,900
BAN 1.00%10/15/21 - 2,325,000 (2,118,750) 206,250
BAN 1.25%10/15/21 - 7,925,000 (5,493,750) 2,431,250
BAN 1.50%10/15/21 - 2,900,000 - 2,900,000
BAN 1.25%06/30/22 - 750,000 - 750,000
Total Governmental Notes 11,790,000 19,855,000 (21,664,600) 9,980,400
BAN 1.25% matured 9,499,313 - (9,499,313) -
BAN 1.50% matured 4,527,200 - (4,527,200) -
MCWT 2.00% matured 3,801,862 - (3,801,862) -
BAN 2.00%10/15/21 - 12,470,000 (745,700) 11,724,300
BAN 1.50%10/15/21 - 7,650,000 (1,000,000) 6,650,000
BAN 1.25%06/30/22 - 2,000,000 - 2,000,000
Total Business-Type Notes 17,828,375 22,120,000 (19,574,075) 20,374,300
Total Notes Payable 29,618,375$ 41,975,000$ (41,238,675)$ 30,354,700$
Town of Nantucket, Massachusetts Page 69 of 138 Annual Comprehensive Financial Report
F.Long–Term Obligations
The following reflects the current year activity in the long-term liability accounts:
The Town’s governmental activities liabilities will be liquidated by the general fund. The
business-type liabilities will be liquidated by the respective business-type funds.
Beginning Ending Due within
Balance Additions Deletions Balance one year
Governmental Activities:
General obligation bonds 77,846,687$ 14,353,100$ (4,853,330)$ 87,346,457$ 5,126,954$
Unamortized bond premium 4,298,888 910,769 (567,502) 4,642,155 1,400,339
Notes from direct borrowings and placements 13,299,522 1,040,600 (792,413) 13,547,709 859,783
Workers' compensation 60,363 193,596 (213,181) 40,778 40,778
Landfill closure 14,700,000 1,500,000 - 16,200,000 -
Compensated absences 2,991,680 1,707,001 (1,495,840) 3,202,841 1,601,421
Net other postemployment benefits liability 117,724,907 27,231,649 (20,058,442) 124,898,114 -
Net pension liability 63,117,400 17,555,014 (18,801,811) 61,870,603 -
Total Governmental Activities 294,039,447$ 64,491,729$ (46,782,519)$ 311,748,657$ 9,029,275$
Business-Type Activities - Siasconset Water:
General obligation bonds 4,312,900$ 245,000$ (395,000)$ 4,162,900$ 425,000$
Unamortized bond premium 402,298 - (85,767) 316,531 73,451
Net other postemployment benefits liability 345,721 334,668 (313,601) 366,788 -
Net pension liability 151,161 42,043 (45,029) 148,175 -
Total Siasconset Water 5,212,080 621,711 (839,397) 4,994,394 498,451
Business-Type Activities - Wannacomet Water:
General obligation bonds 17,201,400 2,648,500 (1,785,000) 18,064,900 1,776,500
Unamortized bond premium 1,025,988 411,056 (192,689) 1,244,355 578,325
Compensated absences 252,440 177,571 (126,220) 303,791 151,895
Net other postemployment benefits liability 1,393,733 357,407 (272,484) 1,478,656 -
Net pension liability 3,121,481 868,186 (929,847) 3,059,820 -
Total Wannacomet Water 22,995,042 4,462,720 (3,306,240) 24,151,522 2,506,720
Business-Type Activities - Sewer:
General obligation bonds 7,621,250 4,478,700 (628,000) 11,471,950 875,000
Unamortized bond premium 613,714 109,347 (105,682) 617,379 194,192
Notes from direct borrowings and placements 58,558,457 3,801,862 (4,581,565) 57,778,754 3,820,231
Compensated absences 123,104 86,013 (61,552) 147,565 73,782
Net other postemployment benefits liability 259,516 110,037 (94,224) 275,329 -
Net pension liability 1,904,632 529,741 (567,364) 1,867,009 -
Total Sewer 69,080,673 9,115,700 (6,038,387) 72,157,986 4,963,205
Business-Type Activities - Nantucket Memorial Airport:
Bond and note debt 7,690,000 3,105,000 (4,025,000) 6,770,000 590,000
Unamortized bond premium 96,648 446,338 (32,519) 510,467 77,113
Compensated absences 604,200 344,561 (302,100) 646,661 323,330
Net other postemployment benefits liability 4,546,320 1,020,624 (743,608) 4,823,336 -
Net pension liability 7,285,975 2,026,468 (2,170,393) 7,142,050 -
Total Nantucket Memorial Airport 20,223,143 6,942,991 (7,273,620) 19,892,514 990,443
Total Business-Type Activities 117,510,938$ 21,143,122$ (17,457,644)$ 121,196,416$ 8,958,819$
Town of Nantucket, Massachusetts Page 70 of 138 Annual Comprehensive Financial Report
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
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, 2021:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Governmental Activities:
General Obligation Bonds 2.00 - 5.00% 65,382,237$ 14,353,100$ (2,751,330)$ 76,984,007$
General Obligation Refunding Bonds 1.50 - 5.00% 12,464,450 - (2,102,000) 10,362,450
Total General Obligation Bonds 77,846,687 14,353,100 (4,853,330) 87,346,457
Add: Unamortized bond premium 4,298,888 910,769 (567,502) 4,642,155
Total General Obligation Bonds, net 82,145,575 15,263,869 (5,420,832) 91,988,612
Massachusetts Clean Water Trust 0.00 - 2.42% 13,299,522 1,040,600 (792,413) 13,547,709
Total notes from direct borrowings and placements 13,299,522 1,040,600 (792,413) 13,547,709
Total Governmental Activities debt 95,445,097$ 16,304,469$ (6,213,245)$ 105,536,321$
Business-Type Activities - Siasconset Water:
General Obligation Bonds 2.00 - 5.00%390,000$ 245,000$ (25,000)$ 610,000$
General Obligation Refunding Bonds 2.00 - 4.00% 3,922,900 - (370,000) 3,552,900
Total General Obligation Bonds 4,312,900 245,000 (395,000) 4,162,900
Add: Unamortized bond premium 402,298 - (85,767) 316,531
Total General Obligation Bonds, net 4,715,198$ 245,000$ (480,767)$ 4,479,431$
Business-Type Activities - Wannacomet Water:
General Obligation Bonds 2.00 - 5.00% 9,150,000$ 2,648,500$ (640,000)$ 11,158,500$
General Obligation Refunding Bonds 1.50 - 5.00% 8,051,400 - (1,145,000) 6,906,400
Total General Obligation Bonds 17,201,400 2,648,500 (1,785,000) 18,064,900
Add: Unamortized bond premium 1,025,988 411,056 (192,689) 1,244,355
Total General Obligation Bonds, net 18,227,388$ 3,059,556$ (1,977,689)$ 19,309,255$
Business-Type Activities - Sewer:
General Obligation Bonds 2.00 - 5.00% 5,885,000$ 4,478,700$ (345,000)$ 10,018,700$
General Obligation Refunding Bonds 2.00 - 5.00% 1,736,250 - (283,000) 1,453,250
Total General Obligation Bonds 7,621,250 4,478,700 (628,000) 11,471,950
Add: Unamortized bond premium 613,714 109,347 (105,682) 617,379
Total General Obligation Bonds, net 8,234,964 4,588,047 (733,682) 12,089,329
Massachusetts Clean Water Trust 0.00 - 5.50% 58,558,457 3,801,862 (4,581,565) 57,778,754
Total notes from direct borrowings and placements 58,558,457 3,801,862 (4,581,565) 57,778,754
Total debt 66,793,421$ 8,389,909$ (5,315,247)$ 69,868,083$
Business-Type Activities - Nantucket Memorial Airport:
General Obligation Bonds 2.00 - 5.00% 7,690,000$ -$ (4,010,000)$ 3,680,000$
General Obligation Refunding Bonds 2.00 - 5.00%- 3,105,000 (15,000) 3,090,000
Total General Obligation Bonds 7,690,000 3,105,000 (4,025,000) 6,770,000
Add: Unamortized bond premium 96,648 446,338 (32,519) 510,467
Total General Obligation Bonds, net 7,786,648$ 3,551,338$ (4,057,519)$ 7,280,467$
Total Business-Type Activities debt 97,522,655$ 15,245,803$ (11,831,222)$ 100,937,236$
Town of Nantucket, Massachusetts Page 71 of 138 Annual Comprehensive 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
2022 5,126,954$ 2,779,269$ 859,783$ 283,971$
2023 5,989,528 3,163,334 875,477 272,961
2024 5,851,624 2,705,934 843,690 254,883
2025 4,870,742 2,468,311 860,116 236,436
2026 4,915,882 2,234,201 876,921 217,609
2027-2031 23,400,789 7,956,214 3,920,277 813,719
2032-2036 19,835,938 4,182,207 3,561,702 408,598
2037-2041 15,285,000 1,352,136 1,749,743 54,600
2042-2043 2,070,000 32,344 - -
Total 87,346,457$ 26,873,950$ 13,547,709$ 2,542,777$
Business-Type Activities: Siasconset Water
2022 425,000$ 142,234$ -$ -$
2023 443,000 122,195 - -
2024 455,000 105,535 - -
2025 470,000 88,336 - -
2026 483,000 68,775 - -
2027-2031 1,671,900 116,681 - -
2032-2036 165,000 15,875 - -
2037-2041 50,000 2,500 - -
4,162,900$ 662,131$ -$ -$
Business-Type Activities: Wannacomet Water
2022 1,776,500$ 650,099$ -$ -$
2023 1,759,000 555,880 - -
2024 1,779,000 485,995 - -
2025 1,791,000 414,235 - -
2026 1,601,000 346,355 - -
2027-2031 4,958,400 1,047,653 - -
2032-2036 2,875,000 441,847 - -
2037-2041 1,525,000 77,575 - -
18,064,900$ 4,019,639$ -$ -$
Business-Type Activities: Sewer
2022 875,000$ 362,407$ 3,820,231$ 1,235,583$
2023 987,700 394,315 3,881,674 1,157,129
2024 885,000 316,749 3,803,079 1,048,842
2025 760,000 276,874 3,729,011 959,371
2026 758,000 241,164 3,245,989 891,059
2027-2031 3,236,250 741,801 15,962,902 3,434,068
2032-2036 2,385,000 294,795 15,130,927 1,762,739
2037-2041 1,585,000 71,363 8,204,941 311,524
11,471,950$ 2,699,468$ 57,778,754$ 10,800,315$
Business-Type Activities: Nantucket Memorial Airport
2022 590,000$ 233,488$ -$ -$
2023 605,000 210,737 - -
2024 485,000 188,488 - -
2025 485,000 167,362 - -
2026 500,000 147,587 - -
2027-2031 2,375,000 466,270 - -
2032-2036 1,730,000 104,974 - -
6,770,000$ 1,518,906$ -$ -$
and PlacementsGeneral Obligation Bonds
Town of Nantucket, Massachusetts Page 72 of 138 Annual Comprehensive 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, 2021,
$1,790,000 of defeased bonds remains outstanding.
Current Refunding – On November 18, 2020, the Town issued general obligation refunding
bonds of $3,105,000, paying interest at rates of 2% - 5% per annum. The proceeds, along with
$446,338 of premiums, were used to retire $3,405,000 of callable general obligation bonds. As a
result of the current refunding, the Town reduced its total debt service requirements by $867,338,
which resulted in an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $773,050.
Subsequent Event – On October 14, 2021, the Town issued general obligations bonds totaling
$17,955,000. A portion of the proceeds were used to retire $11,620,300 of BANS outstanding at
June 30, 2021 that matured on October 15, 2021. The retired BANS are shown as long-term debt
obligations in these financial statements.
The following represents authorized and unissued debt as of June 30, 2021:
Project Amount
Governmental:
Fire station 1,211,394$
School building 2,789,319
Public works 18,933,273
Marine building 3,450,000
Our Island Home 1,110,000
Solid waste - landfill 14,383,000
Town pier 4,890,000
Municipal Facilities Maintenance 6,500,000
Bicycle paths 3,193,487
Land acquisition 12,500,000
Affordable housing 23,630,000
Miscellaneous 2,316,000
Business-type:
Water projects 15,682,207
Sewer projects 120,530,143
Nantucket Memorial Airport 63,791,334
Total Authorized and Unissued 294,910,157$
Town of Nantucket, Massachusetts Page 73 of 138 Annual Comprehensive Financial Report
Discretely Presented Component Unit – Nantucket Islands Land Bank
The general obligation bonds are secured by a second priority security interest in the Land Bank’s
present and future transfer fees and unrestricted revenue. The bonds are additionally secured by a
guarantee of the Town.
Payments on long-term debt due in future years consist of the following:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Bond and note indebtedness 20,884,902$ -$ (4,378,924)$ 16,505,978$ 6,138,212$
Capital leases 139,156 132,569 (78,207) 193,518 73,184
Net OPEB liability 1,377,200 592,350 - 1,969,550 -
Net pension liability 2,036,032 - (134,921) 1,901,111 -
Total Land Bank 24,437,290$ 724,919$ (4,592,052)$ 20,570,157$ 6,211,396$
The following is a summary of outstanding long-term debt obligations as of June 30, 2021:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Notes payable 3.00 - 6.06% 7,866,667$ -$ (3,083,334)$ 4,783,333$
General obligation bonds 2.00 - 5.00% 12,880,000 - (1,520,000) 11,360,000
Total bonds and notes 20,746,667 - (4,603,334) 16,143,333
Add: Unamortized bond premium 587,341 - (72,477) 514,864
Less: Discounts on notes payable (449,106) - 296,887 (152,219)
Total Land Bank 20,884,902$ -$ (4,378,924)$ 16,505,978$
Year Ending
June 30 Principal Interest Total
2022 1,580,000$ 303,830$ 1,883,830$
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 1,345,000 140,563 1,485,563
2027-2031 3,995,000 262,148 4,257,148
2032 420,000 10,920 430,920
Total 11,360,000$ 1,364,170$ 12,724,170$
Town of Nantucket, Massachusetts Page 74 of 138 Annual Comprehensive Financial Report
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, 2020 were issued and may be obtained by writing to the Barnstable County
Retirement Association, 750 Attucks Lane, Hyannis MA 02601.
Membership – Membership in the System as of December 31, 2020, 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 $7,528,049 to the System in fiscal year 2021, which was the actuarially
determined contribution requirement for the fiscal year and represented 22.3% of covered payroll.
Net Pension Liability – At June 30, 2021, the Town reported a liability of $74,087,657 for its
proportionate share of the net pension liability. The net pension liability was measured as of
December 31, 2020, and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of January 1, 2020.
Retired participants and beneficiaries
receiving benefits 3,466
Inactive participants entitled to a return
of their employee contributions 969
Active participants 4,763
Total 9,198
Town of Nantucket, Massachusetts Page 75 of 138 Annual Comprehensive Financial Report
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 10.73% at December 31, 2020.
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:
There were no significant changes in assumption between fiscal year 2021 and 2020.
Pension Expense – The Town recognized $8,760,597 in pension expense in the statement of
activities in fiscal year 2021.
Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2021, the
Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
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 $18,000
Pre-Retirement Mortality RP-2014 Employee Mortality Table projected generationally
with Scale MP - 2017
Post-Retirement Mortality RP-2014 Healthy Annuitant Mortaility Table projected
generationally with Scale MP-2017
Disabled Mortality RP-2014 Healthy Annuitant Mortaility Table set forward
one year projected generationally with Scale MP-2017
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual earnings - 8,645,034
Changes in assumptions 6,515,879 -
Changes in proportion differences 5,744,975 -
Differences between expected and actual experience - 405,625
Changes in proportion differences - 422,160
12,260,854$ 9,472,819$
Town of Nantucket, Massachusetts Page 76 of 138 Annual Comprehensive Financial Report
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the Town’s pension expense as follows:
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:
Year Ended June 30, Amount
2022 1,019,316$
2023 1,854,203
2024 (1,288,421)
2025 395,703
2026 807,234
Total 2,788,035$
Expected
Target Investment Rate
Asset Class Allocation of Return
Domestic Equity 22.00%6.28%
International Equity 12.00%7.00%
International Emerging Markets 5.00%8.82%
Core fixed income 15.00%3.80%
High Yield Fixed Income 8.00%2.97%
Real Estate 10.00%3.50%
Commodities 4.00%3.45%
Hedge Fund, GTAA, Risk Parity 10.00%2.35%
Private Equity 14.00%10.11%
100.00%
Town of Nantucket, Massachusetts Page 77 of 138 Annual Comprehensive Financial Report
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:
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, 2021, the Commonwealth contributed $3,635,421 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 0.234025%, 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 $ 66,802,053 $ (66,802,053) $ —
Pension expense 8,251,011 (8,251,011) —
The Town has recognized intergovernmental revenue and pension expense of $8,251,011
associated with this arrangement.
Current Rate 1% lower Current 1% greater
Net Pension Liability 7.150% 100,205,985$ 74,087,657$ 52,140,804$
Discount Rate
Town of Nantucket, Massachusetts Page 78 of 138 Annual Comprehensive Financial Report
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.
Employees Covered by Benefit Terms – The following employees were covered by the benefit
terms as of July 1, 2020:
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, 2021, the Town’s contribution rate was approximately 9.9% of covered-employee
payroll.
Net OPEB Liability – The Town’s net OPEB liability was measured as of June 30, 2021 using an
actuarial valuation as of July 1, 2020. The components of the net OPEB liability of the Town at
June 30, 2021 were as follows:
Active employees 654
Inactive employees or
beneficiaries currently
receiving benefits 436
Total 1,090
Total OPEB Liability 136,090,873$
Plan fiduciary net position (4,248,650)
Net OPEB liability 131,842,223$
Plan fiduciary net position as
a percentage of the total
OPEB liability 3.1%
Town of Nantucket, Massachusetts Page 79 of 138 Annual Comprehensive 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 3.75% to 4.25%.
• Implementation of ASOP 6 caused the calculation of expected claims to be revised.
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 5.95%, net of OPEB plan investment expense,
including inflation.
Muncipal bond rate 2.18% as of June 30, 2021
Discount Rate 4.25%, 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, 2020 and for future periods
Health Care Trend Rate 4.50%
Salary Increases 3.00% annually as of July 1, 2020 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 80 of 138 Annual Comprehensive 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:
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year
ended June 30, 2021, the Town recognized OPEB expense of $11,259,225. Deferred outflows of
resources and deferred inflows of resources related to OPEB at June 30, 2021 were reported as
follows:
Expected
Target Investment Rate
Asset Class Allocation of Return
Domestic Equity - Large Cap 60.00%4.90%
Interntional Equity - Developed Market 5.00%5.32%
Domestic Fixed Income 35.00%1.40%
Cash 0.00%0.00%
100.00%
Real rate of return 3.70%
Inflation assumption 2.50%
Total nominal rate of return 6.20%
Investment expense -0.25%
Net investment return 5.95%
Discount Rate
Current Rate 1% Decrease At Current Rate 1% Increase
Net OPEB liability 4.25%156,986,233$ 131,842,223$ 109,567,256$
Net OPEB liability 4.50%111,610,652$ 131,842,223$ 157,964,798$
Health Care Trend Rate
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual earnings -$ 247,583$
Changes of assumptions 13,572,926 -
Differences between actual and expected experience 3,065,819 6,331,182
16,638,745$ 6,578,765$
Town of Nantucket, Massachusetts Page 81 of 138 Annual Comprehensive 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:
Changes in the Net OPEB Liability – The following table summarizes the changes in the net
OPEB liability for the year ended June 30, 2021:
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 Rate of Return – For the year ended June 30, 2021, the annual money-weighted rate of
return on investments, net of investment expense, was 15.41%. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
June 30
2022 1,925,288$
2023 2,008,596
2024 3,708,242
2025 1,533,945
2026 516,340
thereafter 367,569
10,059,980$
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a)(b)(a) - (b)
Balances at June 30, 2020 127,951,438$ 3,681,241$ 124,270,197$
Changes for the year:
Service cost 4,655,534 - 4,655,534
Interest 4,897,435 - 4,897,435
Change in assumptions 5,437,668 - 5,437,668
Difference between expected
and actual experience (2,796,459) - (2,796,459)
Net investment income - 567,409 (567,409)
Employer contributions - 4,054,743 (4,054,743)
Benefit payments withdrawn from trust (4,054,743) (4,054,743) -
Net changes 8,139,435 567,409 7,572,026
Balances at June 30, 2021 136,090,873$ 4,248,650$ 131,842,223$
Town of Nantucket, Massachusetts Page 82 of 138 Annual Comprehensive Financial Report
D. Risk Financing
The Town is exposed to various risks of loss related to torts: theft of, damage to and destruction
of assets; errors and omissions; and natural disasters for which the Town carries commercial
insurance. The amount of claim settlements has not exceeded insurance coverage in any of the
previous three years.
Health Insurance – The Town maintains a "reinsured cost reimbursement program" which covers
the group health insurance requirements of a majority of Town employees. The Plan is
essentially a self-insurance program and employee claims in excess of $150,000 are reinsured by
the Plan. The Town accrues an amount representing claims incurred but not reported (IBNR),
which is based on a one month claims paid average. At June 30, 2021, the amount of the liability
for IBNR health insurance claims totaled $1,049,282. 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, 2019, are as follows:
Balance at
Beginning
of Year
Claims and
Changes in
Estimates
Claims
Payments
Balance at
End of Year
Current
Portion
Fiscal Year 2021 $1,318,109 $14,527,231 $(14,796,058) $1,049,282 $1,049,282
Fiscal Year 2020 1,129,769 14,753,268 (14,564,928) 1,318,109 1,318,109
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, 2021, the amount of the liability for workers’ compensation claims totaled $40,778.
This liability is the best estimate based on available information.
Changes in the reported liability since July 1, 2019, 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 $ 60,363 $193,596 $(213,181) $ 40,778 $ 40,778
Fiscal Year 2019 114,965 239,636 (294,238) 60,363 60,363
E. Commitments
The Town is in the planning and construction stages of several major capital projects including
sewer and waste water treatment plant improvements. The Town has entered into contracts to
expend approximately $16,000,000 and $7,000,000, respectively to complete the projects.
Town of Nantucket, Massachusetts Page 83 of 138 Annual Comprehensive Financial Report
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, 2021, 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, 2021. Other amounts received or
receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the Town
expects such amounts, if any, to be immaterial. The Town is subject to certain Federal arbitrage
laws in accordance with long-term borrowing agreements. Failure to comply with the rules could
result in the payment of penalties. The Town does not believe it has failed to comply with any of
these agreements.
The Nantucket Airport Commission ("NAC"), which operates the Nantucket Memorial Airport,
has been responding to an identified release of polyfluoroalkyl substances (PFAS) discovered at
and downgradient of the airport in accordance with the Massachusetts Contingency Plan (MCP)
and G.L. c. 21E. The PFAS encountered is believed to be associated, in part, with the use of
aqueous film-forming foam (AFFF) at the airport, which the Federal Aviation Administration
required the airport to have available for use in the event of an aircraft fire, and to test by
releasing onto the ground. The Commission has, to date, provided bottled water and water
filtration systems to all affected properties downgradient of the airport and does not anticipate any
material litigation or third-party liabilities to the Town or the Airport Commission as a result of
the identified presence of PFAS.
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 that is expected to be approved by the DEP in 2022. The Town has recognized a
closure liability of $16,200,000 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 –
In January 2017, the GASB issued GASB Statement No. 84, Fiduciary Activities. The objective
of the Statement was to improve guidance regarding the identification of fiduciary activities for
Town of Littleton, Massachusetts Page 84 of 138 Annual Comprehensive Financial Report
accounting and financial reporting purposes and how these activities should be reported. The
provisions of this Statement became effective for the Town in fiscal year 2021. In connection
with the adoption of this accounting standard, certain previously reported agency balances are
now reported in the governmental funds and government-wide financial statements. Refer to
Note V for the financial impact of the adoption of this accounting standard.
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 was to
improve the consistency and comparability of reporting a government’s majority equity interest in
a legally separate organization and to improve the relevance of financial statement information
for certain component units. The provisions of this Statement became effective for the Town in
fiscal year 2021. The adoption of this standard did not have an impact on the Town’s financial
statements.
In March 2020, the GASB issued GASB Statement No. 93, Replacement of Interbank Offered
Rates. In addition to accounting and financial reporting implications that result from the
replacement of an interbank offered rate (which become effective in fiscal year 2022), this
Statement eliminated the use of LIBOR as an appropriate benchmark interest rate for derivative
instruments that hedge interest rate risk of taxable debt for reporting periods effective fiscal year
2021. The adoption of this standard did not have an impact on the Town’s financial statements.
Future Implementations –
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
year 2022). 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. The reporting
provisions of this Statement are effective for financial reporting periods beginning after June 15,
2020 (fiscal year 2022). 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
Town of Littleton, Massachusetts Page 85 of 138 Annual Comprehensive Financial Report
improve financial reporting by addressing issues 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 2023). 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 2023). 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
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 2022). The Town is currently evaluating whether adoption will have a material impact on
the financial statements.
IV. Subsequent Event
On October 14, 2021, the Town issued $17,955,000 of general obligation bonds paying interest at
rates of 2% - 5% per annum. The bonds mature at varying dates through October 1, 2036. A
portion of the proceeds were used to retire $11,620,300 of BANs outstanding at June 30, 2021
which are presented as long-term debt obligations in these financial statements.
V.Prior Period Restatements
The adoption of GASB Statement No. 84 required certain accounts previously reported as agency
accounts in the Statement of Fiduciary Activities to be reclassified into nonmajor governmental
funds. The impact is illustrated in the table below:
Nonmajor
Governmental Governmental
Activities Funds
Prior year as presented 135,437,888$ 20,875,360$
Reclass agency funds 609,170 609,170
As restated 136,047,058$ 21,484,530$
Town of Littleton, Massachusetts Page 86 of 138 Annual Comprehensive Financial Report
Required Supplementary Information
Town of Nantucket, Massachusetts Page 87 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2021
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2021 2020 2019 2018 2017 2016 2015
Town's proportion of the net pension
liability (asset)10.73%10.06%9.98%9.69%9.90%9.52%9.51%
Town's proportionate share of the net
pension liability (asset)74,088$ 75,581$ 78,855$ 65,965$ 69,566$ 59,964$ 53,675$
Town's covered payroll 32,989$ 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 224.58%249.32%271.71%244.18%253.65%232.18%215.23%
Plan fiduciary net position as a percentage
of the total pension liability 66.82%62.34%57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE TOWN CONTRIBUTIONS TO PENSION PLAN
2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 7,528$ 6,624$ 6,271$ 5,785$ 5,612$ 5,143$ 4,959$
Contributions in relation to the
actuarially determined contribution 7,528 6,658 6,271 5,785 5,612 5,143 4,959
Contribution deficiency (excess)-$ (34)$ -$ -$ -$ -$ -$
Town's covered payroll 33,734$ 31,782$ 29,437$ 27,234$ 27,179$ 26,023$ 25,018$
Contributions as a percentage of
covered payroll 22.3%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.
Year Ended June 30
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Town of Nantucket, Massachusetts Page 88 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2021
SCHEDULE OF THE COUNTY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2021 2020 2019 2018 2017 2016 2015
County's proportion of the net pension
liability (asset)0.09%0.09%0.09%0.09%0.09%0.09%0.09%
County's proportionate share of the net
pension liability (asset)608$ 691$ 684$ 597$ 625$ 551$ 519$
County's covered payroll 282$ 283$ 257$ 250$ 252$ 243$ 241$
County's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 215.60%244.17%266.15%238.80%248.02%226.75%215.35%
Plan fiduciary net position as a percentage
of the total pension liability 66.82%62.34%57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE COUNTY CONTRIBUTIONS TO PENSION PLAN
2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 61$ 61$ 55$ 52$ 50$ 47$ 48$
Contributions in relation to the
actuarially determined contribution 61 61 55 52 50 47 48
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$
County's covered payroll 282$ 283$ 259$ 253$ 251$ 246$ 243$
Contributions as a percentage of
covered payroll 21.6%21.6%21.2%20.6%19.9%19.1%19.8%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Year Ended June 30
(dollar amounts are in thousands)
(dollar amounts are in thousands)
Year Ended June 30
Town of Nantucket, Massachusetts Page 89 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2021
SCHEDULE OF THE LAND BANK'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
2021 2020 2019 2018 2017 2016 2015
Land Bank's proportion of the net pension
liability (asset)0.28%0.27%0.28%0.24%0.20%0.23%0.26%
Land Bank's proportionate share of the net
pension liability (asset)1,901$ 2,036$ 2,181$ 1,674$ 1,384$ 1,428$ 1,471$
Land Bank's covered payroll 882$ 833$ 819$ 700$ 557$ 629$ 683$
Land Bank's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 215.53%244.42%266.30%239.14%248.47%227.03%215.37%
Plan fiduciary net position as a percentage
of the total pension liability 66.82%62.34%57.63%61.86%57.28%58.10%60.43%
SCHEDULE OF THE LAND BANK CONTRIBUTIONS TO PENSION PLAN
2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution 191$ 179$ 177$ 147$ 112$ 122$ 136$
Contributions in relation to the
actuarially determined contribution 191 179 177 147 112 122 136
Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$
Land Bank's covered payroll 882$ 836$ 861$ 728$ 578$ 618$ 667$
Contributions as a percentage of
covered payroll 21.7%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 90 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2021
2020 2019 2018 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%100.0%
Town's proportion of the collective
net pension liability (asset)0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Commonwealth's proportionate share of
the net pension liability (asset)28,544,844$ 25,214,020$ 23,711,289$ 22,885,391$ 22,357,928$ 20,489,643$ 15,896,354$
Commonwealth's actuarially determined
contribution 1,553,433$ 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 91 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2021
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
2021 2020 2019 2018 2017
Total OPEB liability:
Service cost 4,655,534$ 4,489,938$ 4,071,076$ 3,270,431$ 3,915,845$
Interest 4,897,435 4,827,879 4,434,216 3,879,622 4,305,825
Differences between expected and actual experience (2,796,459) (727,441) 5,940,020 (18,207,317) -
Change in assumptions 5,437,668 4,986,701 10,728,558 - -
Benefit payments (4,054,743) (3,629,738) (3,238,016) (3,195,050) (3,230,121)
Net change in total OPEB liability 8,139,435 9,947,339 21,935,854 (14,252,314) 4,991,549
Total OPEB liability - beginning of year 127,951,438 118,004,099 96,068,245 110,320,559 105,329,010
Total OPEB liability - end of year (a)136,090,873$ 127,951,438$ 118,004,099$ 96,068,245$ 110,320,559$
Plan fiduciary net position:
Contributions - employer 4,054,743$ 4,129,738$ 3,738,016$ 3,695,050$ 3,730,121$
Net investment income 567,409 50,929 239,754 (13,267) 62,612
Benefit payments (4,054,743) (3,629,738) (3,238,016) (3,195,050) (3,230,121)
Net change in Plan fiduciary net position 567,409 550,929 739,754 486,733 562,612
Plan fiduciary net position - beginning of year 3,681,241 3,130,312 2,390,558 1,903,825 1,341,213
Plan fiduciary net position - end of year (b)4,248,650$ 3,681,241$ 3,130,312$ 2,390,558$ 1,903,825$
Net OPEB liability - end of year (a) - (b)131,842,223$ 124,270,197$ 114,873,787$ 93,677,687$ 108,416,734$
Plan fiduciary net position as a percentage of the total
OPEB liability 3.12%2.88%2.65%2.49%1.73%
Covered payroll 40,819,723$ 37,265,400$ 36,180,000$ 26,400,000$ 26,950,000$
Net OPEB liability as a percentage of covered-
employee payroll 322.99%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,
Town of Nantucket, Massachusetts Page 92 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2021
2021 2020 2019 2018 2017
Actuarially-determined contribution 9,861,865$ 11,208,030$ 10,458,732$ 9,639,685$ 9,698,176$
Contributions in relation to the actuarially-
determined contribution (4,054,743) (4,129,738) (3,738,016) (3,695,050) (3,730,121)
Contribution deficiency (excess)5,807,122$ 7,078,292$ 6,720,716$ 5,944,635$ 5,968,055$
Covered payroll 40,819,723$ 37,265,400$ 36,180,000$ 26,400,000$ 26,950,000$
Contribution as a percentage of covered payroll 9.9%11.1%10.3%14.0%13.8%
Valuation date July 1, 2020 July 1, 2018 July 1, 2018 July 1, 2016 July 1, 2016
Amortization period 30 years 30 years 30 years 30 years 30 years
Investment rate of return 5.95%4.99%4.88%5.51%5.74%
Municipal bond rate 2.18%2.66%2.79%3.45%3.16%
Single equivalent bond rate 4.25%3.75%4.00%4.00%4.50%
Inflation 2.50%2.50%2.75%2.75%2.75%
Healthcare cost trend rates 4.50%4.50%4.50%5.00%5.00%
Salary increases 3.00%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)
2021 2020 2019 2018 2017
Annual money-weighted rate of return, net
of investment expense 15.41%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,
SCHEDULE OF CONTRIBUTIONS
SCHEDULE OF INVESTMENT RETURNS
Year Ended June 30,
Town of Nantucket, Massachusetts Page 93 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2021
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate taxes 86,297,258$ 86,297,258$ 86,464,563$ -$ 86,464,563 167,305
Personal property taxes 2,244,605 2,244,605 2,212,983 - 2,212,983 (31,622)
Tax title - - 352,089 - 352,089 352,089
Motor vehicle excise 2,250,000 2,250,000 3,329,078 - 3,329,078 1,079,078
Boat and other excise 25,000 25,000 81,847 - 81,847 56,847
Meals taxes 120,270 120,270 851,755 - 851,755 731,485
Room occupancy taxes 1,600,000 1,600,000 7,980,286 - 7,980,286 6,380,286
92,537,133 92,537,133 101,272,601 - 101,272,601 8,735,468
Intergovernmental:
State aid - chapter 70 3,600,249 3,600,249 3,600,249 - 3,600,249 -
State aid - unrestricted 84,135 84,135 84,135 - 84,135 -
State aid - state owned land 189,838 189,838 189,838 - 189,838 -
State aid - other 2,308 2,308 76,274 - 76,274 73,966
3,876,530 3,876,530 3,950,496 - 3,950,496 73,966
Departmental fees, charges, and other:
Payments in lieu of taxes 8,000 8,000 16,524 - 16,524 8,524
Selectmen rentals 132,700 132,700 173,651 - 173,651 40,951
Marina rentals 185,000 185,000 230,981 - 230,981 45,981
Municipal lien certificate fees 28,000 28,000 40,959 - 40,959 12,959
Planning office filing and inspection fees 95,000 95,000 74,877 - 74,877 (20,123)
Police department fees 131,000 131,000 215,907 - 215,907 84,907
Public safety detail charges 60,000 60,000 93,267 - 93,267 33,267
Fire department fees 46,700 46,700 72,310 - 72,310 25,610
Inspection fees 151,500 151,500 413,198 - 413,198 261,698
Conservation fees 22,500 22,500 26,728 - 26,728 4,228
Historic district fees 215,000 215,000 338,218 - 338,218 123,218
Town gas 43,000 43,000 54,756 - 54,756 11,756
Other miscellaneous 129,198 129,198 646,906 - 646,906 517,708
1,247,598 1,247,598 2,398,282 - 2,398,282 1,150,684
Licenses and permits:
Liquor licenses - - 224,205 - 224,205 224,205
Building permits 446,000 446,000 1,227,192 - 1,227,192 781,192
Other licenses and permits 178,100 178,100 305,940 - 305,940 127,840
624,100 624,100 1,757,337 - 1,757,337 1,133,237
Fines and forfeitures:
Parking and court fines 280,000 280,000 237,086 - 237,086 (42,914)
Other fines 10,000 10,000 67,198 - 67,198 57,198
290,000 290,000 304,284 - 304,284 14,284
Penalties and interest on taxes 475,000 475,000 793,136 - 793,136 318,136
Interest and investment income 275,000 275,000 205,481 - 205,481 (69,519)
Total Revenues 99,325,361 99,325,361 110,681,617 - 110,681,617 11,356,256
Town of Nantucket, Massachusetts Page 94 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2021
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
General Government:
Moderator:
Salary 183 183 178 - 178 5
Operating 1,500 1,500 - - - 1,500
1,683 1,683 178 - 178 1,505
Town Administration:
Salary 1,182,166 1,572,166 1,362,166 - 1,362,166 210,000
Operating 766,220 556,220 380,251 168,247 548,498 7,722
Articles 1,091,483 1,091,483 13,930 1,077,553 1,091,483 -
3,039,869 3,219,869 1,756,347 1,245,800 3,002,147 217,722
Finance Committee:
Operating 18,680 25,392 25,392 - 25,392 -
Articles 500,000 400,000 - - - 400,000
518,680 425,392 25,392 - 25,392 400,000
Finance and Operations:
Salary 886,311 886,311 713,105 - 713,105 173,206
Operating 256,360 256,360 204,104 67,449 271,553 (15,193)
Articles 32,097 60,935 52,892 7,609 60,501 434
1,174,768 1,203,606 970,101 75,058 1,045,159 158,447
Assessor:
Salary 449,609 449,609 401,909 - 401,909 47,700
Operating 144,350 144,350 69,886 150 70,036 74,314
593,959 593,959 471,795 150 471,945 122,014
Collector:
Salary 332,439 332,439 315,685 - 315,685 16,754
Operating 101,469 101,469 66,480 13,358 79,838 21,631
433,908 433,908 382,165 13,358 395,523 38,385
Treasurer:
Salary 281,368 281,368 338,272 - 338,272 (56,904)
Operating 63,454 63,454 14,427 - 14,427 49,027
344,822 344,822 352,699 - 352,699 (7,877)
Information Systems/GIS:
Salary 767,359 767,359 755,016 - 755,016 12,343
Operating 740,251 865,805 630,079 125,403 755,482 110,323
1,507,610 1,633,164 1,385,095 125,403 1,510,498 122,666
Legal:
Operating 590,841 840,840 610,372 175,456 785,828 55,012
590,841 840,840 610,372 175,456 785,828 55,012
Human Resources:
Salary 445,193 445,193 249,839 - 249,839 195,354
Operating 147,700 147,700 81,433 4,996 86,429 61,271
592,893 592,893 331,272 4,996 336,268 256,625
Town Clerk:
Salary 257,551 269,551 269,551 - 269,551 -
Operating 70,783 158,783 116,389 40,076 156,465 2,318
328,334 428,334 385,940 40,076 426,016 2,318
(continued)
Town of Nantucket, Massachusetts Page 95 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2021
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Nantucket Planning Office:
Salary 1,002,581 1,002,581 1,025,020 - 1,025,020 (22,439)
Operating 271,755 271,755 233,357 2,497 235,854 35,901
1,274,336 1,274,336 1,258,377 2,497 1,260,874 13,462
Public Buildings:
Operating 1,282,265 1,282,265 1,082,034 38,915 1,120,949 161,316
1,282,265 1,282,265 1,082,034 38,915 1,120,949 161,316
Natural Resources:
Salary 780,227 780,227 772,008 - 772,008 8,219
Operating 154,866 154,866 133,743 - 133,743 21,123
935,093 935,093 905,751 - 905,751 29,342
Insurances:
Auto casualty 165,000 165,000 165,000 - 165,000 -
Blanket liability 1,781,028 1,288,027 1,157,746 7,747 1,165,493 122,534
Claims deductible 137,294 135,552 52,107 - 52,107 83,445
Insurance consulting 59,469 57,500 29,517 - 29,517 27,983
2,142,791 1,646,079 1,404,370 7,747 1,412,117 233,962
Total General Government 14,761,852 14,856,243 11,321,888 1,729,456 13,051,344 1,804,899
Public Safety:-
Police:
Salary - police 6,082,874 5,982,874 5,933,433 - 5,933,433 49,441
Operating 868,097 868,097 632,529 213,441 845,970 22,127
6,950,971 6,850,971 6,565,962 213,441 6,779,403 71,568
Fire:
Salary 2,921,589 2,921,589 2,541,009 - 2,541,009 380,580
Operating 451,300 451,300 273,992 - 273,992 177,308
3,372,889 3,372,889 2,815,001 - 2,815,001 557,888
Inspectors:
Salary 690,097 690,097 633,158 - 633,158 56,939
Operating 21,000 21,000 8,830 380 9,210 11,790
711,097 711,097 641,988 380 642,368 68,729
Emergency Management:
Operating 8,000 8,000 800 - 800 7,200
8,000 8,000 800 - 800 7,200
Marine:
Salary 797,591 897,591 897,591 - 897,591 -
Operating 98,548 98,548 57,663 1,277 58,940 39,608
Articles 16,211 16,211 - 16,211 16,211 -
912,350 1,012,350 955,254 17,488 972,742 39,608
Total Public Safety 11,955,307 11,955,307 10,979,005 231,309 11,210,314 744,993
Town of Nantucket, Massachusetts Page 96 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2021
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Education:
Salary and operating 31,788,009 31,853,009 30,952,693 624,340 31,577,033 275,976
Articles 94,678 94,678 34,899 59,779 94,678 -
Total Education 31,882,687 31,947,687 30,987,592 684,119 31,671,711 275,976
Public Works:
Public Works:
Salary 2,547,082 2,547,083 2,301,328 - 2,301,328 245,755
Operating 695,401 695,340 626,229 74,664 700,893 (5,553)
Articles 26,389 26,450 - 26,450 26,450 -
3,268,872 3,268,873 2,927,557 101,114 3,028,671 240,202
Street Lighting:
Operating 165,015 165,015 114,044 - 114,044 50,971
165,015 165,015 114,044 - 114,044 50,971
Mosquito Control:
Operating 168,501 168,501 110,500 - 110,500 58,001
168,501 168,501 110,500 - 110,500 58,001
Snow and Ice Removal:
Operating 82,600 82,600 163,373 - 163,373 (80,773)
82,600 82,600 163,373 - 163,373 (80,773)
Gas/Town Vehicles:
Operating 415,026 415,025 306,002 5,119 311,121 103,904
415,026 415,025 306,002 5,119 311,121 103,904
Total Public Works 4,100,014 4,100,014 3,621,476 106,233 3,727,709 372,305
Health and Human Services:
Health:
Salary 459,761 459,760 476,269 - 476,269 (16,509)
Operating 77,825 77,825 78,085 5,738 83,823 (5,998)
537,586 537,585 554,354 5,738 560,092 (22,507)
Commision on Disability:
Salary 10,317 10,317 4,535 - 4,535 5,782
Operating 1,700 1,700 1,809 - 1,809 (109)
12,017 12,017 6,344 - 6,344 5,673
Senior Services/Council on Aging:
Salary 185,602 185,602 184,202 - 184,202 1,400
Operating 29,372 29,372 12,119 1,287 13,406 15,966
214,974 214,974 196,321 1,287 197,608 17,366
Veterans Services:
Salary 33,425 33,425 4,174 - 4,174 29,251
Operating 18,728 18,728 12,391 - 12,391 6,337
52,153 52,153 16,565 - 16,565 35,588
Human Services:
Salary 174,763 206,051 199,017 - 199,017 7,034
Operating 15,002 30,003 28,534 58 28,592 1,411
Articles 667,600 661,312 464,485 220,605 685,090 (23,778)
857,365 897,366 692,036 220,663 912,699 (15,333)
Total Health and Human Services 1,674,095 1,714,095 1,465,620 227,688 1,693,308 20,787
(Continued)
Town of Nantucket, Massachusetts Page 97 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2021
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Atheneum (Library):
Operating 747,400 747,400 747,400 - 747,400 -
747,400 747,400 747,400 - 747,400 -
Visitor Services:
Salary 315,927 315,927 241,769 - 241,769 74,158
Operating 148,650 148,650 89,017 758 89,775 58,875
464,577 464,577 330,786 758 331,544 133,033
Town Clock:
Operating 4,743 4,743 2,106 - 2,106 2,637
4,743 4,743 2,106 - 2,106 2,637
Total Culture and Recreation 1,216,720 1,216,720 1,080,292 758 1,081,050 135,670
State and County Assessments:
State assessments and charges 61,442 61,442 60,510 - 60,510 932
Transportation authorities assessments 865,290 865,290 865,290 - 865,290 -
Tuition assessments 75,313 75,313 73,440 - 73,440 1,873
County assessments and charges 170,201 170,201 170,201 - 170,201 -
Total State and County Assessments 1,172,246 1,172,246 1,169,441 - 1,169,441 2,805
Pension and Fringe Benefits:
Medical Insurance:
Salary 13,382,377 12,882,450 12,294,666 - 12,294,666 587,784
13,382,377 12,882,450 12,294,666 - 12,294,666 587,784
Unemployment:
Salary 175,000 175,000 175,000 - 175,000 -
175,000 175,000 175,000 - 175,000 -
Workers' Compensation:
Salary 267,181 267,181 267,181 - 267,181 -
267,181 267,181 267,181 - 267,181 -
Laborer's Union Pension:
Salary 45,778 45,778 45,778 - 45,778 -
45,778 45,778 45,778 - 45,778 -
Pension Assessments:
Barnstable Retirement 5,203,970 5,638,897 5,638,897 - 5,638,897 -
5,203,970 5,638,897 5,638,897 - 5,638,897 -
Other Employee Benefits:
Salary 400,000 400,000 99,857 - 99,857 300,143
400,000 400,000 99,857 - 99,857 300,143
Total Pension and Fringe Benefits 19,474,306 19,409,306 18,521,379 - 18,521,379 887,927
Town of Nantucket, Massachusetts Page 98 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2021
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Debt Service 9,310,589 9,310,589 9,228,546 - 9,228,546 82,043
Total Expenditures 95,547,816 95,682,207 88,375,239 2,979,563 91,354,802 4,327,405
Other Financing Sources (Uses)
Transfers in 616,300 696,853 696,853 696,853 -
Transfers out (12,238,905) (13,488,905) (13,488,905) (13,488,905) -
Total Other Financing Sources (Uses)(11,622,605) (12,792,052) (12,792,052) (12,792,052)$ -
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (7,845,060) (9,148,898) 9,514,326$ 15,683,661$
Other Budgetary Items
Use of unassigned fund balance (free cash)4,848,999$ 6,127,837$
Use of excess abatement reserve (overlay surplus)- 25,000
Prior year encumbrances 1,791,551 1,791,551
Prior year articles 1,204,510 1,204,510
Total Other Budgetary Items 7,845,060 9,148,898
Net budget and actual -$ -$
(Concluded)
The notes to the financial statements are an integral part of this statement.
The notes to the required supplementary information are and integral part of this statement.
Town of Nantucket, Massachusetts Page 99 of 138 Annual Comprehensive Financial Report
TOWN OF NANTUCKET, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2021
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 2021, Town Meeting approved various supplemental budgetary
appropriations between functions that did not materially increase the total original voted budget,
exclusive of a $1,250,000 transfer to capital projects to fund roadway improvements. The Finance
Director’s Office has the responsibility to ensure that budgetary control is maintained in the manner in
which the appropriations were voted by Town Meeting. Budgetary control is exercised through the
Town’s accounting system.
Budgetary-to-GAAP Reconciliation – The Town’s general fund is prepared on a basis of accounting
other than GAAP to conform to the Uniform Municipal Accounting System basis of accounting as
prescribed by the Massachusetts Department of Revenue. A reconciliation of the budgetary-basis to
GAAP-basis results for the General Fund for the fiscal year ended June 30, 2021, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis 110,681,617$
Stabilization revenue -$ 428,862$ 428,862
Nursing home revenues - 6,650,737 6,650,737
Landfill revenues - 3,419,485 3,419,485
Change in revenue accruals 800,484 - 800,484
On behalf payments 8,251,011 - 8,251,011
Revenues on a GAAP basis 9,051,495$ 10,499,084$ 130,232,196$
Expenditures on a budgetary basis 88,375,239$
Reclass indirect transfers against expenditures (409,000)$ -$ (409,000)
Nursing home expenditures - 7,373,270 7,373,270
Landfill expenditures - 10,708,153 10,708,153
Bond issuance costs 74,269 - 74,269
On behalf payments 8,251,011 - 8,251,011
Transfer to enterprise fund for debt service (1,055,736) - (1,055,736)
Expenditures on a GAAP basis 6,860,544$ 18,081,423$ 113,317,206$
Town of Nantucket, Massachusetts Page 100 of 138 Annual Comprehensive Financial Report
Appropriation Deficits – During the fiscal year ended, the Town overspent its appropriation for snow
and ice removal by $80,773, which will be funded from available revenues in the subsequent year.
Basis of
Accounting Fund Perspective
Differences Differences Total
Other financing (uses) on a budgetary basis (12,792,052)$
Reclass indirect transfers against expenditures (409,000)$ -$ (409,000)
Premiums from bonds and notes 74,269 - 74,269
Nursing home transfers - 3,407,700 3,407,700
Landfill transfers - 6,228,105 6,228,105
Transfer to enterprise fund for debt service (1,055,736) - (1,055,736)
Other financing (uses) on a GAAP basis (1,390,467)$ 9,635,805$ (4,546,714)$
Town of Nantucket, Massachusetts Page 101 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 102 of 138 Annual Comprehensive Financial Report
Combining Statements
Town of Nantucket, Massachusetts Page 103 of 138 Annual Comprehensive Financial Report
Nonmajor Governmental Funds
Special Revenue Funds –
Special revenue funds are used to account for certain revenue generating activities that are legally and/or
programmatically restricted to expenditures for a specific purpose. From the Town’s financial ledgers,
these activities can be distinctly categorized into the following groupings:
School Lunch Fund – This segregated revolving fund accounts for the activities of the child nutrition
programs; amounts collected from services include federal and state meal reimbursements and meal
charges.
School Federal Grants – This fund accounts for educational-based grant programs received either directly
from federal agencies or indirectly through pass-through entities.
School State Grants – This fund accounts for educational-based grant programs received directly from
State agencies.
Town Federal Grants – This fund accounts for non-school grant programs received either directly from
federal or indirectly through pass-through entities.
Town State Grants – This fund accounts for non-school grant programs received directly from State
agencies.
Community Preservation – This fund accounts for monies received by the Town through a tax surcharge
to its taxpayers and a match from the State. The purpose of the fund is for the preservation of space in
Nantucket.
Road Improvements – This fund accounts for monies received from the State under MGL Chapter 90 for
eligible road improvements.
School Revolving Funds – This fund accounts for educational-based activities within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71.
Town Revolving Funds – This fund accounts for the non-school related activity within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes.
Property Sale Proceeds – This fund accounts for receipts collected from the sale of Town owned real
property.
Gifts – This fund accounts for donated monies which relate to all Town activities.
Town of Nantucket, Massachusetts Page 104 of 138 Annual Comprehensive Financial Report
Permanent Funds –
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support governmental programs.
Cemetery Trust Funds – This fund accounts for contributions earmarked for the perpetual care and
maintenance of cemetery facilities and property.
Other Trust Funds – This fund accounts for all contributions including: gifts, donations and bequests for
which only earnings on the original trust corpus may be expended to benefit government approved
programs, other than those associated with cemetery and library activities.
Town of Nantucket, Massachusetts Page 105 of 138 Annual Comprehensive Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Assets:
Cash and cash equivalents 65,961$ 227,350$ 360,472$ 988,512$ 2,074,375$
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Departmental and other - - - - -
Intergovernmental - - - 18,501 -
Loans - - - - -
Total Assets 65,961 227,350 360,472 1,007,013 2,074,375
Total Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources 65,961$ 227,350$ 360,472$ 1,007,013$ 2,074,375$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable -$ 13,068$ -$ 277$ 346,520$
Accrued payroll and withholdings - 53,843 3,443 765 972
Unearned revenue - - - 596,558 -
Other liabilities - - - - -
Due to other funds - - - - -
Bond anticipation notes payable - - - - -
Total Liabilities - 66,911 3,443 597,600 347,492
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - - -
Unavailable revenue - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 65,961 160,439 357,029 409,413 2,057,308
Unassigned - - - - (330,425)
Total Fund Balances 65,961 160,439 357,029 409,413 1,726,883
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 65,961$ 227,350$ 360,472$ 1,007,013$ 2,074,375$
JUNE 30, 2021
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Town of Nantucket, Massachusetts Page 106 of 138 Annual Comprehensive Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
6,434,876$ -$ 2,218,791$ 8,085,621$ 2,381,370$ 1,253,637$ 24,090,965$
- - - - - - -
264,793 - - - - - 264,793
- - - 746,150 - - 746,150
- - - - - - 18,501
- - - - - - -
6,699,669 - 2,218,791 8,831,771 2,381,370 1,253,637 25,120,409
- - - - - - -
6,699,669$ -$ 2,218,791$ 8,831,771$ 2,381,370$ 1,253,637$ 25,120,409$
472,645$ 2,361$ 65,552$ 45,761$ -$ 2,468$ 948,652$
5,251 - 43,750 76,566 - 3,269 187,859
- - - - - - 596,558
45,370 - 150,259 9,774 - - 205,403
- 406,665 - - - - 406,665
- - - - - - -
523,266 409,026 259,561 132,101 - 5,737 2,345,137
264,793 - - - - - 264,793
- - - 746,150 - - 746,150
264,793 - - 746,150 - - 1,010,943
- - - - - - -
5,911,610 - 1,959,230 7,953,520 2,381,370 1,247,900 22,503,780
- (409,026) - - - - (739,451)
5,911,610 (409,026) 1,959,230 7,953,520 2,381,370 1,247,900 21,764,329
6,699,669$ -$ 2,218,791$ 8,831,771$ 2,381,370$ 1,253,637$ 25,120,409$
Town of Nantucket, Massachusetts Page 107 of 138 Annual Comprehensive Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
Permanent Funds Total
Cemetery Affordable Other Sub-total Nonmajor
Trust Housing Trust Permanent Governmental
Funds Trust Funds Funds Funds
Assets:
Cash and cash equivalents -$ 3,386,814$ -$ 3,386,814$ 27,477,779$
Investments 202,473 - 20,391 222,864 222,864
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 264,793
Departmental and other - - - - 746,150
Intergovernmental - - - - 18,501
Loans - 2,678,200 - 2,678,200 2,678,200
Total Assets 202,473 6,065,014 20,391 6,287,878 31,408,287
Total Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources 202,473$ 6,065,014$ 20,391$ 6,287,878$ 31,408,287$
Liabilities and Fund Balances:
Liabilities:
Warrants and accounts payable -$ 639,088$ -$ 639,088$ 1,587,740$
Accrued payroll and withholdings - - - - 187,859
Unearned revenue - - - - 596,558
Other liabilities - - - - 205,403
Due to other funds - - - - 406,665
Bond anticipation notes payable - 4,347,500 - 4,347,500 4,347,500
Total Liabilities - 4,986,588 - 4,986,588 7,331,725
Deferred Inflows of Resources
Unavailable revenue - property taxes - - - - 264,793
Unavailable revenue - other - - - - 746,150
Total Deferred Inflows of Resources - - - - 1,010,943
Fund Balances:
Nonspendable 44,305 - 660 44,965 44,965
Restricted 158,168 1,078,426 19,731 1,256,325 23,760,105
Unassigned - - - - (739,451)
Total Fund Balances 202,473 1,078,426 20,391 1,301,290 23,065,619
Total Liabilities, Deferred Inflows of Resources
and Fund Balances 202,473$ 6,065,014$ 20,391$ 6,287,878$ 31,408,287$
(Concluded)
Town of Nantucket, Massachusetts Page 108 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 109 of 138 Annual Comprehensive Financial Report
School School Town Town
School Federal State Federal State
Lunch Grants Grants Grants Grants
Revenues:
Intergovernmental 269,741$ 1,148,781$ 571,989$ 94,934$ 1,628,312$
Motor vehicle and other excises - - - - -
Community preservation surcharges - - - - -
Investment income 1,871 - - 31 -
Departmental and other revenue 5,595 - - - 340,394
Contributions and donations - - - - -
Total Revenues 277,207 1,148,781 571,989 94,965 1,968,706
Expenditures:
Current:
General government - - - 167,213 879,529
Public safety - - - 2,703 4,035
Education 275,564 1,063,410 556,068 - -
Public works - - - - 429,940
Health and human services - - - - 825,472
Culture and recreation - - - - 5,903
Debt service:
Principal - - - - 373,793
Interest - - - - 19,500
Total Expenditures 275,564 1,063,410 556,068 169,916 2,538,172
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 1,643 85,371 15,921 (74,951) (569,466)
Other Financing Sources (Uses):
Issuance of bonds and notes - - - - 1,040,600
Premium from bonds and notes - - - - -
Sale of capital assets - - - - -
Transfers in - - - - -
Transfers out - - - - -
Total Other Financing Sources (Uses)- - - - 1,040,600
Net Change in Fund Balances 1,643 85,371 15,921 (74,951) 471,134
Fund Balances - Beginning of Year, as restated 64,318 75,068 341,108 484,364 1,255,749
Fund Balances - End of Year 65,961$ 160,439$ 357,029$ 409,413$ 1,726,883$
Special Revenue Funds
FISCAL YEAR ENDED JUNE 30, 2021
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 110 of 138 Annual Comprehensive Financial Report
Sub-total
Community Road School Town Property Sale Gift Special
Preservation Improvements Revolving Revolving Proceeds Funds Revenue Funds
745,154$ 106,861$ -$ 182,860$ -$ -$ 4,748,632$
- - - 34,614 - - 34,614
2,491,130 - - - - - 2,491,130
14,337 - 487 692 - - 17,418
17,602 - 741,526 3,233,755 - - 4,338,872
- - - - - 429,790 429,790
3,268,223 106,861 742,013 3,451,921 - 429,790 12,060,456
- - - 357,839 105 5,885 1,410,571
- - - 2,184,842 - 32,042 2,223,622
- - 1,267,174 - - 216,959 3,379,175
- 515,887 - 25,294 - - 971,121
- - - 99,964 - 158 925,594
2,159,372 - - 85,569 - 12,135 2,262,979
210,000 - - - - - 583,793
30,228 - - - - - 49,728
2,399,600 515,887 1,267,174 2,753,508 105 267,179 11,806,583
868,623 (409,026) (525,161) 698,413 (105) 162,611 253,873
- - - - - - 1,040,600
- - - - - - -
- - - - 231,999 - 231,999
- - 550,000 - - - 550,000
- - - (948,288) - - (948,288)
- - 550,000 (948,288) 231,999 - 874,311
868,623 (409,026) 24,839 (249,875) 231,894 162,611 1,128,184
5,042,987 - 1,934,391 8,203,395 2,149,476 1,085,289 20,636,145
5,911,610$ (409,026)$ 1,959,230$ 7,953,520$ 2,381,370$ 1,247,900$ 21,764,329$
(Continued)
Town of Nantucket, Massachusetts Page 111 of 138 Annual Comprehensive Financial Report
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2021
Permanent Funds Total
Cemetery Affordable Other Sub-total Nonmajor
Trust Housing Trust Permanent Governmental
Funds Trust Funds Funds Funds
Revenues:
Intergovernmental -$ -$ -$ -$ 4,748,632$
Motor vehicle and other excises - - - - 34,614
Community preservation surcharges - - - - 2,491,130
Investment income 6,607 10,598 809 18,014 35,432
Departmental and other revenue 9,000 443,000 - 452,000 4,790,872
Contributions and donations - 22,632 - 22,632 452,422
Total Revenues 15,607 476,230 809 492,646 12,553,102
Expenditures:
Current:
General government - 10,520,241 - 10,520,241 11,930,812
Public safety - - - - 2,223,622
Education - - - - 3,379,175
Public works 2,000 - - 2,000 973,121
Health and human services - - - - 925,594
Culture and recreation - - - - 2,262,979
Debt service:
Principal - - - - 583,793
Interest - - - - 49,728
Total Expenditures 2,000 10,520,241 - 10,522,241 22,328,824
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 13,607 (10,044,011) 809 (10,029,595) (9,775,722)
Other Financing Sources (Uses):
Issuance of bonds and notes - 9,732,500 - 9,732,500 10,773,100
Premium from bonds and notes - 750,000 - 750,000 750,000
Sale of capital assets - - - - 231,999
Transfers in - - - - 550,000
Transfers out - - - - (948,288)
Total Other Financing Sources (Uses)- 10,482,500 - 10,482,500 11,356,811
Net Change in Fund Balances 13,607 438,489 809 452,905 1,581,089
Fund Balances - Beginning of Year, as restated 188,866 639,937 19,582 848,385 21,484,530
Fund Balances - End of Year 202,473$ 1,078,426$ 20,391$ 1,301,290$ 23,065,619$
(Concluded)
Town of Nantucket, Massachusetts Page 112 of 138 Annual Comprehensive Financial Report
Internal Service Funds
Narrative
Internal service funds are used to account for the financing of services provided by one department to
other departments or governmental units. The Town’s risk financing activities accounts for in the internal
service funds can be distinctly categorized into the following groupings:
Health Claims – This fund accounts for the group health and dental insurance activity for active Town
employees and retirees.
Workers’ Compensation Claims – This fund accounts for workers’ compensation benefits, replacement
wages and medical claims expenses of employees that qualify for such benefits.
Town of Nantucket, Massachusetts Page 113 of 138 Annual Comprehensive Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2021
Total
Health Workers'Internal
Claims Compensation Service Funds
Assets:
Current assets:
Cash and cash equivalents 8,982,457$ 538,788$ 9,521,245$
Reinsured claims receivable 477,261 - 477,261
Prepaid items 23,647 - 23,647
Total Assets 9,483,365 538,788 10,022,153
Total Deferred Outflows of Resources - - -
Total Assets and Deferred Outflows of Resources 9,483,365 538,788 10,022,153
Liabilities:
Current liabilities:
Warrants and accounts payable 98,171$ -$ 98,171$
Health claims incurred but not reported 1,049,282 - 1,049,282
Workers' compensation claims - 40,778 40,778
Total Current Liabilities 1,147,453 40,778 1,188,231
Total Deferred Inflows of Resources - - -
Total Liabilities and Deferred Inflows of Resources 1,147,453 40,778 1,188,231
Net Position:
Unrestricted 8,335,912 498,010 8,833,922
TOTAL NET POSITION 8,335,912$ 498,010$ 8,833,922$
Town of Nantucket, Massachusetts Page 114 of 138 Annual Comprehensive Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2021
Total
Health Workers'Internal Service
Claims Compensation Funds
Operating Revenues:
Employee contributions 2,210,295$ -$ 2,210,295$
Employer contributions 15,062,331 372,428 15,434,759
Reinsured claims proceeds 946,347 - 946,347
Total Operating Revenues 18,218,973 372,428 18,591,401
Operating Expenditures:
Employee benefits 17,554,197 193,596 17,747,793
Operating Income (loss)664,776 178,832 843,608
Nonoperating Revenues:
Investment income 51,167 2,542 53,709
Income (loss) Before Transfers 715,943 181,374 897,317
Change in Net Position 715,943 181,374 897,317
Fund Balances - Beginning of Year 7,619,969 316,636 7,936,605
Fund Balances - End of Year 8,335,912$ 498,010$ 8,833,922$
Town of Nantucket, Massachusetts Page 115 of 138 Annual Comprehensive Financial Report
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2021
Total
Health Workers'Internal Service
Claims Compensation Funds
Cash Flows From Operating Activities:
Receipts from employees 2,210,295$ -$ 2,210,295$
Receipts from employer 15,062,331 372,428 15,434,759
Receipts from reinsured claims 1,155,639 - 1,155,639
Payments for interfund services used (17,219,717) (213,884) (17,433,601)
Net Cash Provided by (Used in) Operating Activities 1,208,548 158,544 1,367,092
Cash Flows From Investing Activities:
Investment income 51,167 2,542 53,709
Investment of operating cash - 247,579 247,579
Net Cash Provided by (Used in) Investing Activities 51,167 250,121 301,288
Net Change in Cash and Cash Equivalents 1,259,715 408,665 1,668,380
Cash and Cash Equivalents:
Beginning of the Year 7,722,742 130,123 7,852,865
End of the Year 8,982,457$ 538,788$ 9,521,245$
Reconciliation of Operating Income to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss)664,776$ 178,832$ 843,608$
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables 209,292 - 209,292
Prepaid items 507,070 - 507,070
Accounts payable and accrued expenses (172,590) (703) (173,293)
Accrued benefits payable - (19,585) (19,585)
Net Cash Provided by (Used in) Operating Activities 1,208,548$ 158,544$ 1,367,092$
Town of Nantucket, Massachusetts Page 116 of 138 Annual Comprehensive Financial Report
STATISTICAL SECTION
Above: One of the many local merchants readying itself for an exciting Christmas season on the
island. Christmas is always a popular time in Nantucket, especially with the popular Christmas
Stroll being an annual event.
Town of Nantucket, Massachusetts Page 117 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 118 of 138 Annual Comprehensive 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 119 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 120 of 138 Annual Comprehensive Financial Report
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Governmental activities:
Invested in capital assets……….…………………. 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$ 225,048,258$
Restricted………………………………………………………………………….. 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 24,076,562
Unrestricted……………………………………………………………… 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) (113,318,699)
Total governmental activities net position……………………………………….. 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$ 135,806,121$
Business-type activities:
Invested in capital assets……….…………………. 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$ 131,905,999$
Restricted……………………………...…………………..… - - - - - - - - - -
Unrestricted………………………………………………………………. 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 24,628,955
Total business-type activities net position……………………………. 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$ 156,534,954$
Primary government:
Invested in capital assets……….…………………. 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$ 356,954,257$
Restricted………………………………………………………………………. 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 24,076,562
Unrestricted…………………………………………………………… 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) (88,689,744)
Total primary government net position…………………………………………………. 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$ 292,341,075$
NET POSITION BY COMPONENT
Town of Nantucket, Massachusetts Page 121 of 138 Annual Comprehensive Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses -
Governmental activities:
General government…...……………………………………………………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$ 20,368,598$
Public safety…..………………………………………………………………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 22,246,562
Education……..………………………………………………………………….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 60,956,805
Public works……...……………………………………………………………….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 22,181,705
Health and human services………………………………………………………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 9,195,506
Culture and recreation………...……………………………………………………..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 3,792,528
Interest expense……………………………………………………………………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 2,782,017
Total government activities expenses……………………………………………….65,315,943 70,167,440 75,878,560 79,572,505 83,957,476 114,597,179 114,787,139 126,779,743 129,252,503 141,523,721
Business-type activities:
Siasconset Water……………………………………………………………………682,682 712,820 724,927 738,719 811,237 749,495 617,825 692,972 661,611 412,501
Wannacomet Water……………………………………………………………………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 4,746,503
Sewer……………………………………………………………………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 11,591,322
Solid waste……………………………………………………………………8,851,378 11,302,336 8,963,029 10,324,817 11,587,152 - - - - -
Nantucket Memorial Airport……………………………………………………………………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 17,630,422
Our Island Home……………………………………………………………………6,923,716 7,079,676 7,670,514 7,945,959 8,358,350 - - - - -
Total business-type activities expenses……………………………………..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 34,380,748
Total primary government expenses……………………………………….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$ 175,904,469$
Program Revenues -
Governmental activities:
Charges for services:
General government…………………………………………………General government…...……………………………………………………741,512$ 622,049$ 917,730$ 771,006$ 1,121,165$ 1,215,294$ 1,414,603$ 1,542,176$ 1,463,420$ 1,903,422$
Public safety………………………………………………………………..Public safety…..………………………………………………………………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 5,095,030
Education……………………………………………………………….Education……..………………………………………………………………….780,977 1,488,121 1,490,713 1,433,969 1,500,573 1,817,891 1,710,119 1,728,718 1,370,934 747,121
Public works……………………………………………………………….Public works……...……………………………………………………………….276,502 300,317 340,272 376,600 278,408 3,505,449 3,469,380 3,458,221 3,111,654 3,698,822
Health and human services………………………………………………………82,788 132,655 188,221 190,627 227,273 5,977,366 5,246,151 5,145,194 4,452,669 7,401,435
Culture and recreation………...……………………………………………………..522,063 248,089 295,416 346,626 329,022 433,829 455,763 404,014 357,786 469,707
Operating grants and contributions……………………………………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 16,062,638
Capital grants and contributions…………………………………………..1,030,215 1,874,830 289,066 1,886,943 1,881,938 508,050 14,502,773 2,571,891 859,038 1,062,956
Total government activities program revenues...……………………………..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 36,441,131
Business-type activities:
Charges for services……………….………………………………….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 32,909,280
Operating grants and contributions……………………………………746,499 85,992 91,000 90,820 133,570 70,458 123,647 133,619 658,259 3,560,965
Capital grants and contributions…………………………………………..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 16,370,498
Total business-type activities program revenues……………………………………..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 52,840,743
Total primary government program revenues……………………………………….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$ 89,281,874$
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..(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)$ (105,082,590)$
Business-type activities……………………....……………………………..(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 18,459,995
Total primary government net (expense)/program revenue……………………………………….(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)$ (86,622,595)$
Note: Beginning in 2017, Our Island Home and Solid Waste business-type activities have been reported as governmental activities; fiscal year 2012 - 2016 were not restated to reflect this.(continued)
Town of Nantucket, Massachusetts Page 122 of 138 Annual Comprehensive Financial Report
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Revenues and other Changes in Net Position -
Governmental activities:
Real estate and personal property taxes,
net of tax refunds payable…………………………………………………. 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$ 88,601,808$
Motor vehicle and other excise taxes…………………………………………………… 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 3,625,685
Hotel and meals excise…………………………………………….. 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 9,797,223
Penalties and interest on taxes………………………………………………………………687,221 677,906 598,411 882,916 657,303 687,316 584,164 605,321 544,079 793,136
Community Preservation Fund surcharges………………………………………………………………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 2,486,042
Grants and contributions not restricted to specific programs………………………………………………………………307,901 737,402 278,049 186,666 179,523 190,963 193,824 246,669 269,158 278,227
Unrestricted investment income……………………………………………. 173,698 66,235 159,229 257,230 389,334 231,448 284,739 937,170 605,877 591,186
Gain on sale of capital assets……………………………………………. 813,011 736,256 1,379,639 2,430,079 - - 201,248 1,536,070 112,905 231,999
Land fill revenue sharing……………………………………………………………… - - - - - - - - - -
Unrealized loss on investments………………………………………………………………- - - - - - - - - -
Other revenue………………………………………………………………438,678 604,871 - - - - - - - 340,371
Transfers……………………………………………………………… (11,231,986) (8,303,291) (6,942,620) (7,881,295) (8,659,384) - 285,264 - (755,164) (1,904,024)
Total governmental activities………………………………………………………………… 59,588,815 65,290,442 67,288,319 70,240,047 70,777,165 84,744,951 89,378,057 93,794,884 97,113,806 104,841,653
Business-type activities:
Unrestricted investment income……………………………………………………………… 11,993 55,748 44,030 32,935 62,084 71,855 95,529 161,926 150,100 67,831
Gain on sale of capital assets………………………………………. - - - 829,212 - - - - - -
Transfers……………………………………………………………… 11,231,986 8,303,291 6,942,620 7,881,295 8,659,384 - (285,264) - 755,164 1,904,024
Total business-type activities….………..………………………………….. 11,243,979 8,359,039 6,986,650 8,743,442 8,721,468 71,855 (189,735) 161,926 905,264 1,971,855
Total primary government general revenues and other
changes in net position…………………………………………………. 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$ 106,813,508$
Changes in Net Position
Governmental activities……………………....…………………………….. 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)$ (240,937)$
Business-type activities……………………....…………………………….. 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 20,431,850
Total primary government changes in net position………………………………………. 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$ 20,190,913$
(concluded)
Town of Nantucket, Massachusetts Page 123 of 138 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund:
Nonspendable………………………………. -$ -$ -$ 11,406$ -$ -$ -$ 3,113,226$ 2,641,982$ 2,406,361$
Restricted………………………………. 1,485,147 1,577,323 650,518 488,344 414,514 346,780 285,872 231,468 78,354 55,245
Committed…………………………….. 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 9,787,120
Assigned…………………………….. 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 6,415,772
Unassigned…………………………… 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 34,456,291
Total general fund…………………………….. 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$ 53,120,789$
All Other Governmental Funds:
Nonspendable……………………………….44,305$ 44,305$ 114,762$ 44,805$ 44,805$ 44,805$ 44,805$ 44,965$ 44,965$ 44,965$
Restricted………………………………. 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 36,012,525
Unassigned…………………………… (104,106) - - (1,109,351) (17,737,453) (9,779,936) (5,012,857) (3,451,045) (3,212,380) (2,395,932)
Total all other governmental funds…………….. 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$ 33,661,558$
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 124 of 138 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues:
Real estate and personal property taxes,
net of tax refunds……………………………………………………. 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$ 88,864,937$
Motor vehicle and other excise………………………………………… 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 3,445,539
Hotel and meals excise………………………………………………. 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 9,797,223
User charges………………………………………………. - - - - - 9,229,547 8,345,708 8,093,931 7,147,978 10,052,709
Departmental and other……………………………………….. 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 7,337,705
Communities Preservation surcharges……………………………………… 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 2,491,130
Penalties and interest on taxes………………………………………………………..687,221 677,906 598,411 882,916 657,303 687,316 584,164 605,321 544,079 793,136
Licenses and permits………………………………………………………..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 1,757,337
Fines and forfeitures…………………………………………………………….223,054 208,503 296,917 283,179 269,441 334,451 367,483 408,220 320,746 304,284
Intergovernmental………………………………………………………..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 16,950,139
Contributions………………………………………………………..- 258,425 372,331 107,578 408,337 687,574 377,203 1,046,223 487,677 453,682
Investment income……………………………………………………….. 164,936 63,751 147,521 252,185 375,220 228,864 286,452 923,459 600,829 537,477
Total Revenue………………………………………………… 84,406,781 84,605,735 86,860,554 91,584,368 97,741,601 113,088,644 131,337,651 123,831,070 126,827,847 142,785,298
Expenditures:
General government……………………………………………………………. 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 15,317,532
Public safety……………………………………………………………… 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 12,856,806
Education………………………………………………………………… 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 35,538,007
Public works…………………………………………………………….. 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 16,367,581
Health and human services………………………………………………… 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 8,185,585
Culture and recreation……………………………………………….. 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 3,343,271
Pension and fringe benefits………………………………………………………… 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 28,645,994
State and county charges………………………………………… 531,772 546,250 566,814 574,275 591,536 606,206 632,692 734,866 683,317 1,169,441
Capital outlay and other………………………………………………………………. 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 15,650,643
Debt service:
Principal……………………………………………………………… 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 5,645,743
Interest……………………………………………………………………. 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 3,203,201
Total Expenditures……………………………………………………….. 72,319,131 75,872,635 79,508,402 85,326,226 105,290,679 140,615,199 137,478,088 135,029,535 126,974,651 145,923,804
Excess of revenues over (under) expenditures………………………………………………… 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) (3,138,506)
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 15,393,700
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 1,138,749 910,769
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………………………………………………… - 865,210 3,888,758 2,474,833 1,439,916 208,199 201,248 1,635,924 112,905 231,999
Transfers in……………………………………………………………………………… 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 3,826,353
Transfers out…………………………………………………………………………… (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) (5,730,377)
Total other financing sources (uses)………………………………………………………………….. (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 14,632,444
Net change in fund balance…………………………………………………………………. 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$ 11,493,938$
Debt service as a percentage of noncapital expenditures………………………………………………. 13.12%11.34%10.22%9.40%8.92%7.16%7.95%6.61%7.33%6.79%
LAST TEN FISCAL YEARS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
Town of Nantucket, Massachusetts Page 125 of 138 Annual Comprehensive 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
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
2021 22,581,497,590 2,128,000 1,383,412,874 60,008,200 362,033,140 1,805,454,214 24,389,079,804 26,096,711,600 93.46%3.63 6.20 3.65
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 126 of 138 Annual Comprehensive 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 122,707,629$ 1 0.50%94,815,683$ 1 0.56%
Nantucket Electric Company Private Utility 69,283,605 2 0.28%51,642,160 3 0.31%
Nantucket Yacht Club Recreation 54,109,342 3 0.22%44,784,922 4 0.27%
New England Power Company Private Utility 50,374,817 4 0.21%
Penant Realty LLC Residential 49,883,114 5 0.21%
Greenhill, Robert Residential 48,737,900 6 0.22%
Nantucket Island Resort LLC Resort 48,200,213 7 0.22%40,866,050 5 0.24%
Great Harbor Yacht Club Inc.Recreation 46,980,896 8 0.21%
Sankaty Head Golf Club, Inc.Recreation 28,982,656 9 0.13%14,532,106 8 0.09%
White Elephant Hotel LLC Resort 28,607,703 10 0.12%
Walter Glowacki Private 59,157,763 2 0.35%
Nantucket Golf Club Recreation 16,230,110 6 0.10%
NIR Retail III LLC Resort 15,869,101 7 0.09%
Westmoor Club Resort 12,575,364 9 0.07%
Wauwinet Inn, LLC Resort 10,674,447 10 0.06%
Totals 547,867,875$ 2.32%361,147,706$ 2.14%
Source: Official Statements
2021 2012
Town of Nantucket, Massachusetts Page 127 of 138 Annual Comprehensive 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
2012 62,274,744$ 59,645,473$ 95.78%1,805,852$ 61,451,325$ 98.68%
2013 63,618,273 60,028,036 94.36%2,648,869 62,676,905 98.52%
2014 64,647,039 60,979,366 94.33%3,033,794 64,013,160 99.02%
2015 66,329,953 63,876,955 96.30%1,635,015 65,511,970 98.77%
2016 69,636,373 67,228,059 96.54%1,245,005 68,473,064 98.33%
2017 74,553,632 72,289,087 96.96%1,384,525 73,673,612 98.82%
2018 78,168,480 76,433,219 97.78%1,478,271 77,911,490 99.67%
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%2,033,229 81,400,436 96.58%
2021 88,899,100 86,419,886 97.21%- 86,419,886 97.21%
Source: Accounting Records and Official Statements
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Collections
Town of Nantucket, Massachusetts Page 128 of 138 Annual Comprehensive 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
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%
2021 10,298 550,016,180 24,389,079,804 105,536,321 10,248 19.19%0.43%
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
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%
2021 100,937,235 9,802 18.35%0.41%206,473,556 20,050 37.5%0.85%
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 129 of 138 Annual Comprehensive Financial Report
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Equalized Valuation………………………………….. 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$ 26,096,711,600$
Debt Limit…………………………..…………………. 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 1,304,835,580
Outstanding general obligation bonds………………. 153,072,902 144,200,827 137,176,623 133,498,025 124,250,817 153,529,728 156,402,504 189,740,061 192,967,752 206,473,556
Authorized and unissued debt…………………………. 48,369,825 51,318,862 24,976,578 87,611,526 166,096,099 124,200,429 157,015,166 204,519,266 241,336,013 294,910,157
Debt not applicable to debt limit…………………………. (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) (34,935,300)
Legal debt margin………………………………………….. 847,234,796$ 663,137,624$ 697,226,299$ 631,516,337$ 551,792,229$ 771,111,995$ 737,475,511$ 762,503,319$ 724,774,613$ 768,516,567$
Total debt applicable to the limit
as a percentage of debt limit………………………………….. 14.09%16.86%13.25%20.53%27.13%22.36%25.84%30.36%33.92%35.75%
Source: State Division of Local Services, Accounting Records
LAST TEN FISCAL YEARS
COMPUTATION OF LEGAL DEBT MARGIN
Town of Nantucket, Massachusetts Page 130 of 138 Annual Comprehensive 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……………………………………………………………. 105,536,321
Total direct and overlapping debt…………………………………………… 105,536,321$
*Outstanding debt as of June 30, 2020.
Source: Official Statements, Accounting Records
The estimated percentage applicable is based 100% to the Town.
AS OF JUNE 30, 2021
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
Town of Nantucket, Massachusetts Page 131 of 138 Annual Comprehensive 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
2012 10,298 550,016,180 53,410 39.4 1,331 6.00%
2013 10,298 550,016,180 53,410 39.4 1,386 5.90%
2014 10,298 550,016,180 53,410 39.4 1,483 6.20%
2015 10,298 550,016,180 53,410 39.4 1,557 5.50%
2016 10,298 550,016,180 53,410 39.4 1,570 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 1,627 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%
2021 10,298 550,016,180 53,410 39.4 1,658 4.10%
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 132 of 138 Annual Comprehensive 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 8.66%941 1 17.52%
Nantucket Cottage Hospital Medical 180 2 2.33%180 2 3.35%
Nantucket Island Resorts Hospitality 125 3 1.62%125 4 2.33%
Marine Home Center Retail 90 4 1.16%135 3 2.51%
Stop & Shop Retail 90 5 1.16%65 6 1.21%
Blue Hills Bank Finance 60 6 0.78%
Myles Reis Trucking Haulage 30 7 0.39%30 7 0.56%
Steamship Authority Transportation 28 8 0.36%28 9 0.52%
Don Allen Auto Dealership 25 9 0.32%25 10 0.47%
Bartlett Oceanview Farm Farm/Retail 25 10 0.32%25 10 0.47%
Nantucket Bank Finance 80 5 1.49%
A&P/Grand Union Retail Food 30 7 0.56%
Source: Official Statements
2021 2012
CURRENT YEAR AND NINE YEARS AGO
PRINCIPAL EMPLOYERS (INCLUDING TOWN)
Town of Nantucket, Massachusetts Page 133 of 138 Annual Comprehensive Financial Report
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government……………………………………………………………. 63 60 66 68 73 75 76 82 82 83
Public safety…………………………………………….. 81 81 81 81 83 85 85 88 88 92
Education…………………………………………………… 299 299 301 301 310 315 321 332 332 338
Public works…………………………………………………………….. 28 27 30 30 32 31 32 35 32 32
Health and human services………………………………………………………….. 74 75 75 75 75 75 67 70 67 70
Culture and recreation………………………………………………… 9 10 10 10 10 10 10 10 10 10
Sub-total governmental activities ……………………………………………………….. 554 552 563 565 583 591 591 617 611 625
Nantucket Memorial Airport………………………… 44 44 41 41 44 44 46 48 49 49
Siasconset Water………………………………………………………………… - - - - - - - - - -
Wannacomet Water………………………….. 11 11 11 11 11 11 12 13 13 13
Sewer………………………………………………………………… 10 10 10 10 10 10 11 13 13 13
Sub-total business-type activities ……………………………………………………….. 65 65 62 62 65 65 69 74 75 75
Total Town employees…………….…………………...…….. 619 617 625 627 648 656 660 691 686 700
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 134 of 138 Annual Comprehensive Financial Report
OPERATING INDICATORS BY FUNCTION/PROGRAM
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government:
Town Clerk
Registered voters…………………………………….. 8,394 8,546 8,618 8,618 9,100 9,263 9,263 9,150 9,212 9,390
Public Safety:
Police
Criminal offenses
Arrests……………………………….. 1,531 992 584 568 887 952 952 369 475 544
Reported crimes…………………….. 479 490 501 356 345 345 345 2,116 595 1,501
Motor vehicle responses………………………… 3,469 3,411 3,432 3,493 4,322 4,625 4,625 6,283 5,789 1,870
Other responses………………………… 20,648 17,899 21,576 23,678 22,023 24,327 24,327 10,762 20,152 13,397
Total criminal offenses…………. 26,127 22,792 26,093 28,095 27,577 30,249 30,249 19,530 27,011 17,312
Fire
Incidents
Fires…………………………….. 52 67 82 86 66 68 68 70 73 47
Non-fire incidents……………………………………………………….. 3,721 4,915 3,893 3,942 4,011 4,234 4,234 4,081 4,158 4,839
Total fire calls………………… 3,773 4,982 3,975 4,028 4,077 4,302 4,302 4,151 4,231 4,886
Inspectional Services:
Number of building permits…………………………………. 1,639 1,797 2,010 2,137 1,996 1,875 1,875 1,985 1,892 2,031
Education:
Number of students…………………………………. 1,331 1,386 1,483 1,557 1,570 1,588 1,627 1,686 1,683 1,666
Public Works:
Landfill
Solid waste tonnage………………………….. 33,710 37,400 38,000 39,000 38,000 33,237 33,237 35,689 34,285 36,896
Health and Human Services:
Board of Health
Inspections
Food establishments…………………. 230 247 262 668 675 675 675 814 862 885
Other………………………….. 358 367 380 1,373 1,563 1,563 1,563 744 928 983
Total inspections………………….. 588 614 642 2,041 2,238 2,238 2,238 1,558 1,790 1,868
Our Island Home - Nursing Home
Number of beds………………… 45 45 45 45 45 45 45 45 45 45
Culture and Recreation:
Beaches
Beach Stickers 3,795 3,973 4,102 4,259 4,559 4,680 4,680 4,992 5,023 6,257
Transportation:
Nantucket Memorial Airport
Number of enplanements……… 178,303 174,129 164,290 138,752 124,321 122,356 122,356 127,733 124,983 71,810
Number of tower operations…… 126,898 119,976 109,225 106,186 104,913 102,678 102,678 69,817 99,356 61,274
Gallons of jet fuel sold……………. 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 1,686,370
N/A - Information not available
Source: Various Town Departments, State websites and annual Town Report.
LAST TEN FISCAL YEARS
Town of Nantucket, Massachusetts Page 135 of 138 Annual Comprehensive Financial Report
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government:
Number of buildings………………………………..7 7 7 7 7 7 7 7 7 7
Public Safety:
Police
Number of stations…………………………….2 2 2 2 2 2 2 2 2 2
Fire
Number of stations…………………………….2 2 2 2 2 2 2 3 3 3
Education:
Number of elementary schools…………………………………….1 1 1 1 1 2 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 136 of 138 Annual Comprehensive Financial Report
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Town of Nantucket, Massachusetts Page 137 of 138 Annual Comprehensive Financial Report
Town of Nantucket, Massachusetts Page 138 of 138 Annual Comprehensive Financial Report