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Home My WebLink About2018 Comprehensive Annual Financial Report TOWN OF COHASSET, MASSACHUSETTS Comprehensive Annual Financial Report In September 2017, the Town’s new 1,500 panel solar array opened at the old landfill site at 81 Cedar Street. In addition to providing clean, renewable energy, the solar array is expected to save the Town of Cohasset an estimated $40,000 a year in energy costs. For the Year Ended June 30, 2018 Prepared By: The Fiscal Team TOWN OF COHASSET, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2018 Prepared by: The Fiscal Team Town of Cohasset, Massachusetts TOWN OF COHASSET, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2018 TABLE OF CONTENTS Introductory Section...................................................................................................................................................... 1 Letter of Transmittal ..................................................................................................................................................... 3 GFOA Certificate of Achievement ................................................................................................................................ 7 Organizational Chart .................................................................................................................................................... 8 Principal Town Officials ................................................................................................................................................ 9 Financial Section ......................................................................................................................................................... 11 Independent Auditor’s Report .................................................................................................................................... 13 Management’s Discussion and Analysis ................................................................................................................... 15 Basic Financial Statements ........................................................................................................................................ 25 Statement of Net Position ....................................................................................................................................... 27 Statement of Activities ............................................................................................................................................ 28 Governmental Funds – Balance Sheet .................................................................................................................. 30 Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to the Statement of Net Position .............................................................................................................................................................. 31 Governmental Funds – Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ................................................................................................................. 33 Proprietary Funds – Statement of Net Position ...................................................................................................... 34 Proprietary Funds – Statement of Revenues, Expenses and Changes in Net Position ........................................ 35 Proprietary Funds – Statement of Cash Flows ...................................................................................................... 36 Fiduciary Funds – Statement of Fiduciary Net Position ......................................................................................... 37 Fiduciary Funds – Statement of Changes in Fiduciary Net Position ...................................................................... 38 Notes to Basic Financial Statements ..................................................................................................................... 39 Required Supplementary Information ........................................................................................................................ 77 General Fund Budgetary Comparison Schedule ................................................................................................... 79 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ...... 80 Pension Plan Schedules ........................................................................................................................................ 82 Schedule of the Town’s proportionate share of the net pension liability ............................................................ 83 Schedule of the Town contributions ................................................................................................................... 84 Schedule of the special funding amounts of the net pension liability ................................................................. 85 Other Postemployment Benefits Plan Schedules .................................................................................................. 86 Schedule of Town’s net OPEB Liability and Related Ratios .............................................................................. 87 Schedule of Town Contributions ......................................................................................................................... 88 Schedule of Investment Returns ........................................................................................................................ 89 Notes to Required Supplementary Information ...................................................................................................... 90 Combining and Individual Fund Statements .............................................................................................................. 95 Nonmajor Governmental Funds ............................................................................................................................. 96 Nonmajor Governmental Funds – Combining Balance Sheet............................................................................ 98 Nonmajor Governmental Funds – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................................................................................................................... 102 Agency Fund ........................................................................................................................................................ 106 Agency Fund – Statement of Changes in Assets and Liabilities ...................................................................... 107 Statistical Section ...................................................................................................................................................... 109 Net Position By Component ..................................................................................................................................... 110 Changes in Net Position .......................................................................................................................................... 111 Fund Balances, Governmental Funds ..................................................................................................................... 112 Changes in Fund Balances, Governmental Funds .................................................................................................. 113 Assessed Value and Actual Value of Taxable Property by Classification and Tax Rates ...................................... 114 Principal Taxpayers ................................................................................................................................................. 115 Property Tax Levies and Collections ....................................................................................................................... 116 Ratios of Outstanding Debt and General Bonded Debt ........................................................................................... 117 Direct and Overlapping Governmental Activities Debt............................................................................................. 118 Computation of Legal Debt Margin .......................................................................................................................... 119 Demographic and Economic Statistics .................................................................................................................... 120 Principal Employers ................................................................................................................................................. 121 Full-Time Equivalent Town Employees by Function ................................................................................................ 122 Operating Indicators by Function/Program .............................................................................................................. 123 Capital Asset Statistics by Function/Program .......................................................................................................... 124 Introductory Section A new addition to the Cohasset Police Department, Einstein is a Malinois (or Belgian Shepherd dog) and is the partner of CPD canine officer Patrick Reardon. Town of Cohasset, Massachusetts 1 Comprehensive Annual Financial Report Introductory Section Town of Cohasset, Massachusetts 2 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 3 Comprehensive Annual Financial Report Letter of Transmittal Letter of Transmittal December 21, 2018 To the Honorable Members of the Board of Selectmen and the Citizens of the Town of Cohasset: It is with pleasure that the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2018 for the Town of Cohasset, Massachusetts is hereby presented for review. This report is the primary means of reporting the Town’s financial activities, and the financial reports contained within have been prepared and presented in conformity with generally accepted accounting principles (GAAP). Management assumes full responsibility for the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, based upon an internal control framework that has been established for this purpose. Recognizing that the cost of a system of internal control should not exceed its anticipated benefits, this system has been designed to provide reasonable rather than absolute assurance that the financial statements are free of any material misstatements. To the best of management’s knowledge and belief, this report is complete and reliable in all material respects. The Town’s financial statements have been audited by Powers & Sullivan, LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town for the fiscal year ended June 30, 2018, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town of Cohasset’s financial statements for the fiscal year ended June 30, 2018 are fairly presented in conformity with GAAP. The independent auditors report is presented as the first component of the financial section of this report. GAAP require 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 MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditors. Profile of the Town The Town of Cohasset was incorporated in 1770, some 150 years after its first recorded mention in the logs of English explorer Captain John Smith, and its early development as part of the Town of Hingham. Located in Norfolk County (as a non-geographically contiguous member community, along with the Town of Brookline), Cohasset is a coastal community 20 miles south of Boston, and is bordered by Hull to the north, Hingham to the west, Scituate to the south, and Massachusetts Bay to the east. Cohasset’s 9.89 square miles were home to 7,542 residents according to the 2010 US Census, and 8,316 residents according to the 2018 census conducted by the Cohasset Town Clerk. CHRISTOPHER G. SENIOR TOWN MANAGER EMAIL: csenior@cohassetma.org OFFICE: 781-383-4105 x 109 FAX: 781-383-0228 OFFICE OF THE TOWN MANAGER COHASSET TOWN HALL 41 HIGHLAND AVENUE COHASSET, MA 02025 Town of Cohasset, Massachusetts 4 Comprehensive Annual Financial Report While the Town remains home to an active fishing fleet, it is primarily a residential community. The main highways include State routes 3A and 228, with connecting access to Route 3, the primary north-south highway on the South Shore. The Massachusetts Bay Transportation Authority (MBTA) provides easy access to Boston through a commuter rail station in Cohasset, a subway station in Braintree, and commuter boat service in Hingham. Logan International Airport, which can be reached via all three MBTA mass transit options, is approximately 22 miles away by car. The Town operates under an Open Town Meeting form of government, which is vested with all legislative and budgetary approval authority. A five-member Board of Selectmen is responsible for general policy implementation, and appoints a Town Manager who directs all day-to-day governmental operations, other than schools, as Chief Administrative and Chief Financial Officer. A five-member School Committee oversees a K-12 school system, and appoints a full-time Superintendent. Elected Water and Sewer boards oversee the water and sewer enterprise funds, respectively. General governmental services provided within the Town’s boundaries include police and fire protection, collection and treatment of sewage, water distribution, public works (including roads, cemeteries, and tree and park maintenance), harbor management, recreation, health, veteran’s services, aging support services, and a public library. The water and sewer enterprise funds are self-supporting. The Town also maintains a solid waste recycling and transfer station. Local Economy Cohasset’s unemployment rate of 3.6% in June, 2018 was 8% lower than the statewide average (according to data from the Mass. Department of Labor and Workforce Development), a figure influenced by a highly-educated workforce (67.7% of residents have a Bachelor’s degree or higher according to MAPC data), and proximity to high tech, higher education, health care and financial sector employers in metropolitan Boston. The Town’s per capita income of more than $107,369 is more than two-and-a-half times the statewide average, according to the Mass. Department of Revenue. While many of the Town’s residents work in other communities, Cohasset is home to a diverse mix of local businesses, including the South Shore Music Circus, the South Shore Arts Center, the headquarters of Pilgrim Bank, an active fishing fleet, and the Sunrise assisted living facility. The Cohasset Village district, which includes a mix of small businesses including restaurants, shops and realtors, continues to thrive, with two new restaurants opening during the past year. Thirteen new housing units and three business condominiums were recently completed, further enhancing the vibrancy of the Village district. The community’s natural beauty and abundant opportunities for outdoor activities, including a picturesque harbor, two beaches, the Whitney Woods Reservation, and W ompatuck State Park, have not only attracted active residents drawn to hiking, running, biking, swimming and sailing, but also influence the local economy. Cohasset now plays host to more than a dozen charitable and for-profit road race events, among them the Cohasset Triathlon which attracts 1,200 racers and supporters to Town, the Road Race by the Sea, a pre-Boston Marathon 10K event run since 1975, and a Town-sponsored Thanksgiving Day 5K which draws some 750 annual racers. In addition, the annual South Shore Arts Festival (sponsored by the South Shore Arts Center) brings thousands to the Town Common over a long weekend every June. Anchored by a co-working location called Workspace which provides office and meeting space, as well as support services, to the burgeoning local population that work from home, the Town’s transit-oriented development complex adjacent to the Cohasset Commuter Rail Station continues to thrive. Also including a juice bar (which recently doubled in size), a gourmet wine store, a restaurant, a clothing store, a health club, a tutoring center, and sixteen living units, the facility is fully leased and a hub of commercial and residential activity. Town of Cohasset, Massachusetts 5 Comprehensive Annual Financial Report Two luxury residential subdivisions have recently been completed: a 41-unit complex of single-family homes being built by Toll brothers; and a 27-unit complex known as Cook Estates. A new 20-unit mixed-use building has also won approval and is expected to be constructed during the coming year. Financial Planning and Management Policy and Program Development The Town retained its AAA rating from the Standard & Poor’s rating agency during the fiscal year, as the Town’s financial management team, with strong support from volunteer boards and commissions, continued to update and adopt a series of financial policies, improving day-to-day management practices, and increasing transparency. A new budget document was released for the FY19 budget process, a 121-page compilation including detailed departmental narratives, a detailed executive summary, all of the Town financial management policies, and a detailed glossary. The financial team is planning to refine this document for FY20 in preparation for a GFOA budget award application. Cohasset’s efforts to address substance abuse received recognition from the Massachusetts Interlocal Insurance Association in 2018, with an award honoring the work of the Cohasset Safe Harbor Coalition. The group, a consortium including local residents, the schools, law enforcement, local government, and members of the faith, medical and recovery communities, has sponsored programs, workshops, and activities for youth and parents to promote healthy decision making and address addictive behaviors. Technology Planning and Implementation The Town completed work on a new e-permitting system for the Department of Permits and Inspections, bringing the building, conservation, health and planning permit process on-line for the first time. Work was also completed on a grant-funded GIS base map upgrade, which includes all of the Town’s public infrastructure from road signs to buildings. In addition, the Town RTF was equipped with electronic payment capacity for the first time. Network and data security were also IT priorities during the fiscal year, with a grant-funded security assessment completed and staff level training implemented. Planning and Infrastructure With the hiring of a full-time Director of Planning, work on the Town’s first Master Plan in more than a decade is currently well underway, with an expected completion in early 2019. The Town is also at work on its first Harbor Management Plan, funded with an $80,000 grant from the Seaport Economic Council. These two plans will help guide both public infrastructure upgrades as well as private sector development throughout the Town. Cohasset became one of the first communities in Massachusetts to take part in Municipal Vulnerability Preparedness (MVP) planning, running two community planning meetings over the winter which identified critical infrastructure at risk from climate change. The MVP planning process now opens up future grant opportunities targeted at addressing these areas of concern. Work to replace the nearly 60-year-old Cunningham Bridge is nearing completion, with the State picking up nearly the entire cost for the $6.2 million project. The newly redesigned bridge will include better access for pedestrians and cyclists, as well as a dedicated area for scenic viewing and fishing. Town of Cohasset, Massachusetts 6 Comprehensive Annual Financial Report The completion of a privately financed solar array brought the first locally produced green energy into the local electric grid. The Town’s agreement with the array operator netted more than $50,000 in electricity savings during its initial months of operation. In addition, Cohasset joined the Complete Streets program, designed to improve pedestrian and bicycle access throughout the Town’s road and sidewalk grid. The initial stages of the program are underway, with a priority project plan and formal complete streets policy expected to be adopted in 2019. Awards and Acknowledgments The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Cohasset for its CAFR for the fiscal year ended June 30, 2017. This was the fifth time that the Town submitted a CAFR to the GFOA. The Town was awarded this Certificate in each year. In order to receive this prestigious award, a government had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report on a timely basis could not be accomplished without efficient and dedicated staff. I would like to express my appreciation to all members of the Town’s staff who assisted and contributed to the preparation of this report. I would particularly like to thank Director of Finance Don Piatt, Treasurer-Collector Paula Linhares, and the staff at Powers & Sullivan, LLC. I would also like to thank the Board of Selectmen and the Advisory Committee for their strong interest and support in planning and conducting the financial operations of the Town. Respectfully Submitted Christopher Senior Cohasset Town Manager Town of Cohasset, Massachusetts 7 Comprehensive Annual Financial Report GFOA Certificate of Achievement Town of Cohasset, Massachusetts 8 Comprehensive Annual Financial Report Organizational Chart Town of Cohasset, Massachusetts 9 Comprehensive Annual Financial Report Principal Town Officials Elected Officials Term Expires Board of Selectmen Diane Kennedy, Chairman 2020 Kevin McCarthy, Vice Chairman 2020 Paul Schubert, Clerk 2021 Steve Gaumer, Selectman 2019 Jack Keniley, Selectman 2019 Moderator Daniel Evans 2020 Town Clerk Carol L. St. Pierre 2020 Board of Assessors Alyson A. Silvia 2020 Debra J. Krupczak 2019 Melissa Browne 2018 School Committee Jeanne M. Astino 2019 Paul Kearney 2021 Ellen M. Maher 2021 Jennifer Madden 2020 Barbara Stefan 2019 Sewer Commission William B. McGowan, Jr. 2019 Wayne Sawchuk 2020 John Beck 2018 Water Commission Rolf N. Gjesteby 2020 Leonora C. Jenkins 2018 John W. Steinmetz 2019 Appointed Officials Town Manager Christopher G. Senior 2020 Director of Finance/Town Accountant Donald Piatt Treasurer/Collector Paula M. Linhares Director of Assessing Mary Quill Superintendent of Schools Louise L. Demas School Business Manager Michael MacMillan Police Chief William Quigley Fire Chief Robert Silvia Director of Public Works Brian Joyce Town of Cohasset, Massachusetts 10 Comprehensive Annual Financial Report This page intentionally left blank. Financial Section Town of Cohasset, Massachusetts 11 Comprehensive Annual Financial Report Financial Section Financial Section Town of Cohasset, Massachusetts 12 Comprehensive Annual Financial Report This page intentionally left blank. 13 Independent Auditor’s Report To the Honorable Board of Selectmen Town of Cohasset, Massachusetts Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Cohasset, Massachusetts as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Town of Cohasset’s basic financial statements as listed in the table of contents. 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 from material misstatement. An audit involves 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. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Cohasset, Massachusetts, as of June 30, 2018, 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. 14 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a 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 of Cohasset, Massachusetts’ basic financial statements. The introductory section, combining and individual fund statements, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund 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 with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund 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 our report dated December 21, 2018, on our consideration of the Town of Cohasset, Massachusetts’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town of Cohasset, Massachusetts’ internal control over financial reporting and compliance. December 21, 2018 Town of Cohasset, Massachusetts 15 Comprehensive Annual Financial Report Management’s Discussion and Analysis Town of Cohasset, Massachusetts 16 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 17 Comprehensive Annual Financial Report Management’s Discussion and Analysis As management of the Town of Cohasset, Massachusetts (Town), we offer readers of these financial statements this narrative overview and analysis of the financial activities of the Town for the year ended June 30, 2018. We encourage readers to consider the information presented in this report in conjunction with additional information that we have furnished in our letter of transmittal. The Governmental Accounting Standards Board (GASB) is the authoritative standard setting body that provides guidance on how to prepare financial statements in conformity with generally accepted accounting principles (GAAP). Users of these financial statements (such as investors and rating agencies) rely on the GASB to establish consistent reporting standards for all governments in the United States. This consistent application is the only way users (including citizens, the media, legislators and others) can assess the financial condition of one government compared to others. Governments must adhere to GASB pronouncements in order to issue their financial statements in conformity with GAAP. The users of financial statements also rely on the independent auditor’s opinion. If the Town’s financial statements have significant departures from GAAP the independent auditors may issue a qualified opinion or a disclaimer (where no opinion is given). These types of opinions may have an adverse effect on the Town’s bond rating and our ability to borrow money at favorable interest rates. The Town has enjoyed an unmodified opinion on its financial statements for many years. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements comprise three components: 1) government-wide financial statements 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to private-sector businesses. The statement of net position presents information on all of the Town’s assets, deferred outflows of resources, liabilities and deferred inflows of resources, with the difference 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 Town’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing or the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include administrative services, public safety, education, public works, health and welfare, culture and recreation, community preservation, and interest. The business-type activities include the activities of the sewer and water enterprise funds. Town of Cohasset, Massachusetts 18 Comprehensive Annual Financial Report 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. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the 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 government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with this budget. Proprietary funds. The Town maintains one type of proprietary fund. Enterprise funds are used to report the same functions as business-type activities in the government-wide financial statements. The Town uses enterprise funds to account for its sewer and water activities. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for sewer and water activities, all of which are considered major funds of the Town. 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 statements 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 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. Government-wide Financial Analysis Governmental Activities As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. For governmental activities, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $13.7 million at the close of year 2018. The overall financial condition of the Town’s governmental activities remained stable during year 2018. Town of Cohasset, Massachusetts 19 Comprehensive Annual Financial Report Governmental net position of $49.2 million reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that are still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the investment in its capital assets is reported net of its related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the net position, $7.9 million represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position has a year-end deficit balance of $43.5 million. This deficit balance is primarily due to the recognition of a $19.8 million net pension liability, and a $42.3 million net OPEB liability. The governmental net position increased by $71,000 during the current year due to several offsetting factors. Net position increased due to a $1.1 million increase in the governmental funds, as well as the receipt of $443,000 of capital grant revenue. This was offset by a $1.7 million of increases in the net OPEB and net pension liabilities. The governmental expenses totaled $54.5 million of which $14 million (26%) was directly supported by program revenues. General revenues and transfers totaled $40.6 million, primarily coming from property taxes, motor vehicle excise and non-restricted state aid. Condensed financial data for years 2018 and 2017 is presented below. 2017 2018 (As Revised) Assets: Current assets……………………………………………$24,610,385 $23,372,071 Noncurrent assets (excluding capital)………………… 2,229,800 3,113,933 Capital assets, non depreciable………………………… 8,945,655 8,235,076 Capital assets, net of accumulated depreciation……… 54,109,089 56,129,242 Total assets…………………………………………… 89,894,929 90,850,322 Deferred outflows of resources…………………………… 4,092,419 3,341,775 Liabilities: Current liabilities (excluding debt)……………………… 1,289,499 1,163,596 Noncurrent liabilities (excluding debt)…………………… 62,180,602 60,350,457 Current debt……………………………………………… 4,160,239 4,043,476 Noncurrent debt…………………………………………… 10,562,106 13,561,665 Total liabilities……………………………………… 78,192,446 79,119,194 Deferred inflows of resources…………………………… 2,098,655 1,447,506 Net position: Net investment in capital assets………………………… 49,209,259 50,120,485 Restricted………………………………………………… 7,938,855 7,805,611 Unrestricted……………………………………………… (43,451,867) (44,300,699) Total net position……………………………………$13,696,247 $13,625,397 Town of Cohasset, Massachusetts 20 Comprehensive Annual Financial Report 2017 2018 (As Revised) Program Revenues: Charges for services……………………………………………$3,410,058 $2,980,292 Operating grants and contributions…………………………… 10,140,592 10,318,668 Capital grants and contributions……………………………… 442,734 689,367 General Revenues: Real estate and personal property taxes, net of tax refunds payable………………………………… 37,184,773 35,883,703 Motor vehicle and other excise taxes………………………… 1,872,697 1,832,408 Community preservation tax…………………………………… 498,257 480,755 Penalties and interest on taxes……………………………… 136,889 135,455 Grants and contributions not restricted to specific programs…………………………………………… 513,968 578,281 Unrestricted investment income……………………………… 165,440 464,935 Total revenues…………………………………………… 54,365,408 53,363,864 Expenses: Administrative services………………………………………… 4,573,270 4,413,663 Public safety…………………………………………………… 8,527,016 7,609,256 Education………………………………………………………… 32,995,136 31,221,840 Public works…………………………………………………… 4,579,940 4,788,976 Health and welfare……………………………………………… 811,904 847,136 Culture and recreation………………………………………… 2,252,810 2,260,471 Community preservation……………………………………… 255,886 41,527 Interest…………………………………………………………… 505,479 594,413 Total expenses…………………………………………… 54,501,441 51,777,282 Excess (Deficiency) before transfers………………………… (136,033) 1,586,582 Transfers…………………………………………………………… 206,883 199,567 Change in net position…………………………………………… 70,850 1,786,149 Net position, beginning of year (as revised)………………… 13,625,397 11,839,248 Net position, end of year…………………………………………$13,696,247 $13,625,397 Beginning net position of the governmental activities has been revised to reflect the implementation of GASB Statement #75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions”. The implementation of this standard required the calculation of the OPEB liability to be revised due to the use of different methods and assumptions as previously required by GASB Statement #45, “Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions”. Accordingly, the Town’s net position as of June 30, 2017, has been revised to reflect these changes. (See Note 15 for further details regarding the revised balances). Town of Cohasset, Massachusetts 21 Comprehensive Annual Financial Report Business-type Activities The Town’s business-type activities include water and sewer services. They are self-supporting and each fund maintained their financial condition in year 2018. Business-type water net position of $11.6 million (81%) represents the net investment in capital assets, while $2.8 million (19%) is unrestricted. Net position increased by $1.6 million which is primarily due to principal payments on long-term debt exceeding depreciation by $1.1 million, and better than anticipated user charges collections Business-type sewer net position of $17.2 million (62%) represents the net investment in capital assets, while $10.6 million (38%) is unrestricted. Net position decreased by $250,000 which was primarily due to the planned use of reserves. At the end of the current year all business-type activities were able to report positive balances in all categories of net position. The same situation held true for the prior year. Condensed financial data for years 2018 and 2017 is presented below. 2017 2018 (As Revised) Assets: Current assets…………………………………………………$7,772,076 $7,206,879 Noncurrent assets (excluding capital)………………………… 6,219,818 6,912,573 Capital assets, non depreciable……………………………… 1,582,860 1,308,558 Capital assets, net of accumulated depreciation…………… 60,141,491 61,884,389 Total assets………………………………………………… 75,716,245 77,312,399 Deferred outflows of resources………………………………… 516,802 585,530 Liabilities: Current liabilities (excluding debt)…………………………… 513,637 492,022 Noncurrent liabilities (excluding debt)………………………… 145,640 205,533 Current debt…………………………………………………… 2,810,199 2,942,230 Noncurrent debt………………………………………………… 30,568,749 33,378,947 Total liabilities…………………………………………… 34,038,225 37,018,732 Deferred inflows of resources………………………………… 6,649 10,013 Net position: Net investment in capital assets……………………………… 28,848,754 27,744,000 Unrestricted……………………………………………………… 13,339,419 13,125,184 Total net position…………………………………………$42,188,173 $40,869,184 Town of Cohasset, Massachusetts 22 Comprehensive Annual Financial Report 2017 2018 (As Revised) Program Revenues: Charges for services……………………………………………$7,131,701 $6,830,141 General Revenues: Unrestricted investment income……………………………… (18,727) 25,083 Total revenues…………………………………………… 7,112,974 6,855,224 Expenses: Water…………………………………………………………… 3,453,070 3,473,117 Sewer…………………………………………………………… 2,134,032 2,218,405 Total expenses…………………………………………… 5,587,102 5,691,522 Excess (Deficiency) before transfers………………………… 1,525,872 1,163,702 Transfers…………………………………………………………… (206,883) (199,567) Change in net position…………………………………………… 1,318,989 964,135 Net position, beginning of year (as revised)………………… 40,869,184 39,905,049 Net position, end of year…………………………………………$42,188,173 $40,869,184 Beginning net position of the business-type enterprise activities has been revised to reflect the implementation of GASB Statement #75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions”. The implementation of this standard required the calculation of the OPEB liability to be revised due to the use of different methods and assumptions as previously required by GASB Statement #45, “Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions”. Accordingly, the Town’s net position as of June 30, 2017, has been revised to reflect these changes. (See Note 15 for further details regarding the revised balances). Financial Analysis of the Government’s Funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the year. The General Fund is the chief operating fund. At the end of the current year, unassigned fund balance of the General Fund was $7.6 million, assigned fund balance was $323,000, committed fund balance was $501,000 and total fund balance was $8.5 million. Unassigned fund balance represents 15% of total general fund expenditures, while total fund balance represents 17% of that same amount. The General Fund’s fund balance increased by $943,000 primarily due to positive budgetary results. Massachusetts General Law Ch.40 §5B allows for the establishment of Stabilization funds for one or more different purposes. The creation of a fund requires a two-thirds vote of the legislative body and must clearly Town of Cohasset, Massachusetts 23 Comprehensive Annual Financial Report define the purpose of the fund. Any changes to the purpose of the fund along with any additions to or appropriations from the fund required a two-thirds vote of the legislative body. At year end the balance of the General Stabilization fund is $3,606,092, the Facilities Stabilization fund is $2,491, the Special Education Stabilization fund is $283,421, and the Capital Stabilization fund is $1,495,433. All stabilization balances have been reported as unassigned fund balance within the General Fund. General Fund Budgetary Highlights The Town has adopted a budget for the General Fund. Actual revenues exceeded budget amounts by $944,000. Unexpended appropriations totaled $1.4 million of which $823,000 was carried forward to year 2019. During 2018, $919,000 of supplemental appropriations were approved primarily for transfers to stabilization, as well as other one-time costs. Capital Asset and Debt Administration In conjunction with the operating budget, the Town annually prepares a capital budget for the upcoming year. Governmental capital assets, net of accumulated depreciation, at year end amounted to $63.1 million which represented a net decrease of $1.3 million from the prior year. Major additions include roadway improvements, as well as the ongoing Bound Brook culvert replacement. Depreciation expense for 2018 totaled $3.0 million. Enterprise capital assets, net of accumulated depreciation, were valued at $61.7 million at year end. Major additions during the year primarily included various water system upgrades. Depreciation of $1.7 million was recorded in 2018. Outstanding long-term debt of governmental activities, as of June 30, 2018, totaled $13.6 million, a decrease of $3.4 million over the prior year which was entirely due to budgeted principal payments. The Water Enterprise fund had $22.8 million of long-term debt outstanding at year-end, a decrease of $2.2 million from the prior year due to anticipated principal payments. The Sewer Enterprise fund had $10.6 million of long-term debt outstanding at year-end, a decrease of $745,000 from the prior year which was due to anticipated principal payments. Please refer to footnotes 4, 7, and 8 for further discussion of the major capital asset and debt activity. Requests for Information This financial report is designed to provide a general overview of the Town of Cohasset’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, Town Hall, 41 Highland Avenue, Cohasset, Massachusetts 02025. Town of Cohasset, Massachusetts 24 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 25 Comprehensive Annual Financial Report Basic Financial Statements Town of Cohasset, Massachusetts 26 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 27 Comprehensive Annual Financial Report Governmental Business-type Activities Activities Total ASSETS CURRENT: Cash and cash equivalents…………………………………………$14,081,276 $3,587,582 $17,668,858 Investments…………………………………………………………… 7,710,312 1,696,743 9,407,055 Receivables, net of allowance for uncollectibles: Real estate and personal property taxes……………………… 399,485 - 399,485 Tax liens……………………………………...…………………… 950,094 - 950,094 Motor vehicle and other excise taxes………………………… 78,474 - 78,474 User charges……………………………………………………… - 1,870,804 1,870,804 Departmental and other………………………………………… 189,495 - 189,495 Intergovernmental….…………………………………………… 982,165 - 982,165 Special assessments…………………………………………… 219,084 616,947 836,031 Total current assets………………………………………… 24,610,385 7,772,076 32,382,461 NONCURRENT: Receivables, net of allowance for uncollectibles: Intergovernmental………………………………………………… 948,553 - 948,553 Special assessments…………………………………………… 1,281,247 6,219,818 7,501,065 Capital assets, nondepreciable…………………………………… 8,945,655 1,582,860 10,528,515 Capital assets, net of accumulated depreciation………………… 54,109,089 60,141,491 114,250,580 Total noncurrent assets……………………………………… 65,284,544 67,944,169 133,228,713 TOTAL ASSETS………………………………………………………… 89,894,929 75,716,245 165,611,174 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows for refunding debt……………………………… 255,229 503,351 758,580 Deferred outflows related to pensions…………………………… 3,834,154 13,446 3,847,600 Deferred outflows related to OPEB………………………………… 3,036 5 3,041 TOTAL DEFERRED OUTFLOWS OF RESOURCES……………… 4,092,419 516,802 4,609,221 LIABILITIES CURRENT: Warrants payable…………………………………………………… 927,723 254,482 1,182,205 Accrued payroll……………………………………………………… 216,133 910 217,043 Accrued interest……………………………………………………… 119,143 258,245 377,388 Capital lease obligations…………………………………………… 36,306 - 36,306 Landfill closure……………………………………………………… 26,500 - 26,500 Notes payable………………………………………………………… 1,047,400 - 1,047,400 Bonds payable……………………………………………………… 3,076,533 2,810,199 5,886,732 Total current liabilities………………………………………… 5,449,738 3,323,836 8,773,574 NONCURRENT: Capital lease obligations…………………………………………… 76,972 - 76,972 Landfill closure……………………………………………………… 133,226 - 133,226 Net pension liability………………………………………………… 19,769,152 69,326 19,838,478 Net OPEB liability…………………………………………………… 42,278,224 76,314 42,354,538 Bonds payable……………………………………………………… 10,485,134 30,568,749 41,053,883 Total noncurrent liabilities…………………………………… 72,742,708 30,714,389 103,457,097 TOTAL LIABILITIES…………………………………………………… 78,192,446 34,038,225 112,230,671 DEFERRED INFLOWS OF RESOURCES Taxes paid in advance……………………………………………… 27,977 - 27,977 Deferred inflows related to pensions……………………………… 1,710,741 5,999 1,716,740 Deferred inflows related to OPEB………………………………… 359,937 650 360,587 TOTAL DEFERRED INFLOWS OF RESOURCES………………… 2,098,655 6,649 2,105,304 NET POSITION Net investment in capital assets………………………………..……… 49,209,259 28,848,754 78,058,013 Restricted for: Debt service………………………………………………………… 365,364 - 365,364 Permanent funds: Expendable……….……………………………………………… 2,128,695 - 2,128,695 Nonexpendable…………………………………………………… 442,525 - 442,525 Gifts and grants……………………………………………………… 1,883,797 - 1,883,797 Community preservation…………………………………………… 3,118,474 - 3,118,474 Unrestricted……………………………………………………………… (43,451,867) 13,339,419 (30,112,448) TOTAL NET POSITION…………………………………………………$13,696,247 $42,188,173 $55,884,420 See notes to basic financial statements. Primary Government STATEMENT OF NET POSITION JUNE 30, 2018 Town of Cohasset, Massachusetts 28 Comprehensive Annual Financial Report Operating Capital Charges for Grants and Grants and Net (Expense) Functions/Programs Expenses Services Contributions Contributions Revenue Primary Government: Governmental Activities: Administrative services………………………$4,573,270 $591,117 $558,522 $45,642 $(3,377,989) Public safety…………………………………… 8,527,016 1,070,473 167,960 - (7,288,583) Education……………………………………… 32,995,136 1,131,422 8,355,641 - (23,508,073) Public works…………………………………… 4,579,940 272,253 142,244 291,894 (3,873,549) Health and welfare…………………………… 811,904 25,569 90,497 - (695,838) Culture and recreation……………………… 2,252,810 319,224 663,944 - (1,269,642) Community preservation…………………… 255,886 - - 105,198 (150,688) Interest………………………………………… 505,479 - 161,784 - (343,695) Total Governmental Activities…………… 54,501,441 3,410,058 10,140,592 442,734 (40,508,057) Business-Type Activities: Water…………………………………………… 3,453,070 5,119,996 - - 1,666,926 Sewer…………………………………………… 2,134,032 2,011,705 - - (122,327) Total Business-Type Activities…………… 5,587,102 7,131,701 - - 1,544,599 Total Primary Government…………………$60,088,543 $10,541,759 $10,140,592 $442,734 $(38,963,458) See notes to basic financial statements.(Continued) STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018 Program Revenues Town of Cohasset, Massachusetts 29 Comprehensive Annual Financial Report Governmental Business-Type Activities Activities Total Changes in net position: Net (expense) revenue from previous page……………$(40,508,057) $1,544,599 $(38,963,458) General revenues: Real estate and personal property taxes, net of tax refunds payable………………………… 37,184,773 - 37,184,773 Motor vehicle and other excise taxes……………… 1,872,697 - 1,872,697 Community preservation tax………………………… 498,257 - 498,257 Penalties and interest on taxes……………………… 136,889 - 136,889 Grants and contributions not restricted to specific programs…………………………………… 513,968 - 513,968 Unrestricted investment income (loss)……………… 165,440 (18,727) 146,713 Transfers, net …………………………………………… 206,883 (206,883) - Total general revenues and transfers………………… 40,578,907 (225,610) 40,353,297 Change in net position……………………………… 70,850 1,318,989 1,389,839 Net position: Beginning of year, as revised………………………… 13,625,397 40,869,184 54,494,581 End of year………………………………………………$13,696,247 $42,188,173 $55,884,420 See notes to basic financial statements.(Concluded) Primary Government STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018 Town of Cohasset, Massachusetts 30 Comprehensive Annual Financial Report Nonmajor Total Governmental Governmental General Funds Funds ASSETS Cash and cash equivalents…………………………………$4,653,767 $9,427,509 $14,081,276 Investments…………………………………………………… 4,659,190 3,051,122 7,710,312 Receivables, net of uncollectibles: Real estate and personal property taxes……………… 399,485 - 399,485 Tax liens……………………………………...…………… 940,311 9,783 950,094 Motor vehicle and other excise taxes…………………… 78,474 - 78,474 Departmental and other…………………………………… 185,791 3,704 189,495 Intergovernmental………………………………………… 1,577,133 353,585 1,930,718 Special assessments……………………………………… 739,202 761,129 1,500,331 Due from other funds………………………………………… 136,618 - 136,618 TOTAL ASSETS………………………………………………$13,369,971 $13,606,832 $26,976,803 LIABILITIES Warrants payable…………………………………………$797,747 $129,976 $927,723 Accrued payroll…………………………………………… 180,799 35,334 216,133 Due to other funds………………………………………… - 136,618 136,618 Notes payable……………………………………………… - 1,047,400 1,047,400 TOTAL LIABILITIES………………………………………… 978,546 1,349,328 2,327,874 DEFERRED INFLOWS OF RESOURCES Taxes paid in advance…………………………………… 27,977 - 27,977 Unavailable revenue……………………………………… 3,905,015 992,036 4,897,051 TOTAL DEFERRED INFLOWS OF RESOURCES……… 3,932,992 992,036 4,925,028 FUND BALANCES Nonspendable……………………………………………… - 442,525 442,525 Restricted…………………………………………………… - 11,098,712 11,098,712 Committed………………………………………………… 500,653 - 500,653 Assigned…………………………………………………… 322,503 - 322,503 Unassigned………………………………………………… 7,635,277 (275,769) 7,359,508 TOTAL FUND BALANCES…………………………………… 8,458,433 11,265,468 19,723,901 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES…………………$13,369,971 $13,606,832 $26,976,803 See notes to basic financial statements. GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2018 Town of Cohasset, Massachusetts 31 Comprehensive Annual Financial Report Total governmental fund balances………………………………………………………………… $19,723,901 Capital assets (net) used in governmental activities are not financial resources and, therefore, are not reported in the funds………………………………………………… 63,054,744 Accounts receivable are not available to pay for current-period expenditures and, therefore, are unavailable in the funds………………………………… 4,897,051 The statement of net position includes certain deferred inflows of resources and deferred outflows of resources that will be amortized over future periods. In governmental funds, these amounts are not deferred…………………………………… 2,021,741 In the statement of activities, interest is accrued on outstanding long-term debt, whereas in governmental funds interest is not reported until due………………………… (119,143) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: Bonds payable………………………………………………………………………………… (13,561,667) Net pension liability…………………………………………………………………………… (19,769,152) Net OPEB liability…………………………………………………………………………… (42,278,224) Landfill closure……………………………………………………………………………… (159,726) Capital lease obligations…………………………………………………………………… (113,278) Net effect of reporting long-term liabilities…………………………………………… (75,882,047) Net position of governmental activities…………………………………………………………… $13,696,247 See notes to basic financial statements. RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION JUNE 30, 2018 Town of Cohasset, Massachusetts 32 Comprehensive Annual Financial Report Nonmajor Total Governmental Governmental General Funds Funds REVENUES: Real estate and personal property taxes, net of tax refunds…………………………………………$37,347,489 $- $37,347,489 Motor vehicle and other excise taxes……………………… 1,874,827 - 1,874,827 Charges for services………………………………………… - 2,076,193 2,076,193 Penalties and interest on taxes……………………………… 142,746 1,704 144,450 Fees and rentals……………………………………………… 878,864 - 878,864 Licenses and permits………………………………………… 764,346 - 764,346 Fines and forfeitures………………………………………… 20,530 - 20,530 Intergovernmental - Teachers Retirement………………… 4,433,521 - 4,433,521 Intergovernmental…………………………………………… 4,029,414 2,105,050 6,134,464 Departmental and other……………………………………… 189,523 322,064 511,587 Community preservation taxes……………………………… - 500,038 500,038 Special assessments………………………………………… 358,065 83,770 441,835 Contributions and donations………………………………… - 426,001 426,001 Investment income…………………………………………… 34,105 154,782 188,887 TOTAL REVENUES…………………………………… 50,073,430 5,669,602 55,743,032 EXPENDITURES: Current: Administrative services…………………………………… 2,888,462 1,075,436 3,963,898 Public safety……………………………………………… 5,373,336 223,522 5,596,858 Education…………………………………………………… 18,934,720 2,873,493 21,808,213 Public works………………………………………………… 2,929,569 727,074 3,656,643 Health and welfare………………………………………… 497,776 86,518 584,294 Culture and recreation…………………………………… 756,485 977,806 1,734,291 Community preservation………………………………… - 255,886 255,886 Pension benefits…………………………………………… 2,296,320 - 2,296,320 Pension benefits - Teachers Retirement……………… 4,433,521 - 4,433,521 Employee benefits………………………………………… 6,233,635 - 6,233,635 State and county charges…………………………………… 431,545 - 431,545 Debt service: Principal…………………………………………………… 3,345,448 - 3,345,448 Interest……………………………………………………… 517,489 16,500 533,989 TOTAL EXPENDITURES……………………………… 48,638,306 6,236,235 54,874,541 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES………………………… 1,435,124 (566,633) 868,491 OTHER FINANCING SOURCES (USES): Transfers in…………………………………………………… 371,967 922,461 1,294,428 Transfers out…………………………………………………… (864,357) (223,188) (1,087,545) TOTAL OTHER FINANCING SOURCES (USES)… (492,390) 699,273 206,883 NET CHANGE IN FUND BALANCES………………………… 942,734 132,640 1,075,374 FUND BALANCES AT BEGINNING OF YEAR……………… 7,515,699 11,132,828 18,648,527 FUND BALANCES AT END OF YEAR…………………………$8,458,433 $11,265,468 $19,723,901 See notes to basic financial statements. GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2018 Town of Cohasset, Massachusetts 33 Comprehensive Annual Financial Report Net change in fund balances - total governmental funds………………………………………………………… $1,075,374 Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay……………………………………………………………………………………………… 1,657,897 Depreciation expense……………………………………………………………………………………… (2,967,471) Net effect of reporting capital assets……………………………………………………………… (1,309,574) 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. This amount represents the net change in unavailable revenue………………………………………………………… (1,386,127) 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 transaction has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are unavailable and amortized in the Statement of Activities. Principal payments on capital leases…………………………………………………………………… 34,926 Net amortization of premium from issuance of bonds………………………………………………… 100,631 Net change in deferred charge on refunding…………………………………………………………… (98,241) Debt service principal payments………………………………………………………………………… 3,345,448 Net effect of reporting long-term debt…………………………………………………………… 3,382,764 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Net change in accrued interest on long-term debt……………………………………………………… 26,124 Net change in deferred outflow/(inflow) of resources related to pensions…………………………… 582,614 Net change in net pension liability………………………………………………………………………… (778,310) Net change in deferred outflow/(inflow) of resources related to OPEB……………………………… (356,901) Net change in net OPEB liability………………………………………………………………………… (1,191,614) Net change in landfill closure…………………………………………………………………….……… 26,500 Net effect of recording long-term liabilities……………………………………………………… (1,691,587) Change in net position of governmental activities………………………………………………………………… $70,850 See notes to basic financial statements. RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018 Town of Cohasset, Massachusetts 34 Comprehensive Annual Financial Report Business-type Activities - Enterprise Funds Water Sewer Total ASSETS CURRENT: Cash and cash equivalents………………………………………………$1,851,065 $1,736,517 $3,587,582 Investments………………………………………………………………… - 1,696,743 1,696,743 Receivables, net of allowance for uncollectibles: User charges…………………………………………………………… 1,321,640 561,611 1,883,251 Special assessments………………………………………………… - 604,500 604,500 Total current assets………………………………………………… 3,172,705 4,599,371 7,772,076 NONCURRENT: Receivables, net of allowance for uncollectibles: Special assessments………………………………………………… - 6,219,818 6,219,818 Capital assets, non depreciable………………………………………… 1,581,851 1,009 1,582,860 Capital assets, net of accumulated depreciation……………………… 32,329,893 27,811,598 60,141,491 Total noncurrent assets…………………………………………… 33,911,744 34,032,425 67,944,169 TOTAL ASSETS……………………………………………………………… 37,084,449 38,631,796 75,716,245 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding……………………………………………… 503,351 - 503,351 Deferred outflows related to pensions…………………………………… - 13,446 13,446 Deferred outflows related to OPEB……………………………………… - 5 5 TOTAL DEFERRED OUTFLOWS OF RESOURCES…………………… 503,351 13,451 516,802 LIABILITIES CURRENT: Warrants payable………………………………………………………… 253,982 500 254,482 Accrued payroll…………………………………………………………… - 910 910 Accrued interest…………………………………………………………… 163,973 94,272 258,245 Bonds payable……………………………………………………………… 2,049,893 760,306 2,810,199 Total current liabilities……………………………………………… 2,467,848 855,988 3,323,836 NONCURRENT: Net pension liability………………………………………………………… - 69,326 69,326 Net OPEB liability…………………………………………………..……… - 76,314 76,314 Bonds payable……………………………………………………………… 20,748,383 9,820,366 30,568,749 Total noncurrent liabilities………………………………………… 20,748,383 9,966,006 30,714,389 TOTAL LIABILITIES…………………………………………………………… 23,216,231 10,821,994 34,038,225 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions…………………………………… - 5,999 5,999 Deferred inflows related to OPEB…………………….………………… - 650 650 TOTAL DEFERRED INFLOWS OF RESOURCES……………………… - 6,649 6,649 NET POSITION Net investment in capital assets………………………………..…………… 11,616,819 17,231,935 28,848,754 Unrestricted…………………………………………………………………… 2,754,750 10,584,669 13,339,419 TOTAL NET POSITION………………………………………………………$14,371,569 $27,816,604 $42,188,173 See notes to basic financial statements. PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2018 Town of Cohasset, Massachusetts 35 Comprehensive Annual Financial Report Business-type Activities - Enterprise Funds Water Sewer Total OPERATING REVENUES: Charges for services…………………………………………………$5,119,996 $2,011,705 $7,131,701 OPERATING EXPENSES: Cost of services and administration………………………………… 1,873,358 1,124,273 2,997,631 Depreciation………………………………………………………… 978,881 764,017 1,742,898 TOTAL OPERATING EXPENSES……………………………… 2,852,239 1,888,290 4,740,529 OPERATING INCOME (LOSS)………………………………… 2,267,757 123,415 2,391,172 NONOPERATING REVENUES (EXPENSES): Investment income (loss)…………………………………………… 9,169 (27,896) (18,727) Interest expense……………………………………………………… (600,831) (245,742) (846,573) TOTAL NONOPERATING REVENUES (EXPENSES), NET……………………………… (591,662) (273,638) (865,300) INCOME (LOSS) BEFORE TRANSFERS…………………… 1,676,095 (150,223) 1,525,872 TRANSFERS: Transfers out………………………………………………………… (106,668) (100,215) (206,883) CHANGE IN NET POSITION…………………………………… 1,569,427 (250,438) 1,318,989 NET POSITION AT BEGINNING OF YEAR, as revised…….……… 12,802,142 28,067,042 40,869,184 NET POSITION AT END OF YEAR…………………………………… $ 14,371,569 $ 27,816,604 $ 42,188,173 See notes to basic financial statements. PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2018 Town of Cohasset, Massachusetts 36 Comprehensive Annual Financial Report Business-type Activities - Enterprise Funds Water Sewer Total CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and users………………………………………………$5,148,404 $2,009,808 $7,158,212 Payments to vendors……………………………………………………………… (1,650,328) (1,332,271) (2,982,599) Payments to employees…………………………………………………………… - (34,543) (34,543) NET CASH FROM OPERATING ACTIVITIES……………………………………… 3,498,076 642,994 4,141,070 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out………………………………………………………………………… (106,668) (100,215) (206,883) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Special assessments……………………………………………………………… - 723,882 723,882 Acquisition and construction of capital assets…………………………………… (274,302) - (274,302) Principal payments on bonds and notes………………………………………… (2,071,600) (744,518) (2,816,118) Interest expense…………………………………………………………………… (674,324) (251,764) (926,088) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES……… (3,020,226) (272,400) (3,292,626) CASH FLOWS FROM INVESTING ACTIVITIES: Sale (purchase) of investments…………………………………………………… 4,062 (138,218) (134,156) Investment income (loss)………………………………………………………… 9,169 (27,896) (18,727) NET CASH FROM INVESTING ACTIVITIES……………………………………… 13,231 (166,114) (152,883) NET CHANGE IN CASH AND CASH EQUIVALENTS…………………………… 384,413 104,265 488,678 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR………………… 1,466,652 1,632,252 3,098,904 CASH AND CASH EQUIVALENTS AT END OF YEAR……………………………$1,851,065 $1,736,517 $3,587,582 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES: Operating income (loss)……………………………………………………………$2,267,757 $123,415 $2,391,172 Adjustments to reconcile operating income to net cash from operating activities: Depreciation……………………………………………………………………… 978,881 764,017 1,742,898 Deferred (outflows)/inflows related to pensions……………………………… - 3,212 3,212 Deferred (outflows)/inflows related to OPEB………………………………… - 645 645 Changes in assets and liabilities: User charges………………………………………………………………… 28,408 (1,897) 26,511 Warrants payable…………………………………………………………… 223,030 (186,976) 36,054 Accrued payroll……………………………………………………………… - 471 471 Net pension liability………………………………………………………… - (62,043) (62,043) Net OPEB liability…………………………………………………………… - 2,150 2,150 Total adjustments………………………………………………………… 1,230,319 519,579 1,749,898 NET CASH FROM OPERATING ACTIVITIES………………………………………$3,498,076 $642,994 $4,141,070 See notes to basic financial statements. PROPRIETARY FUNDS STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2018 Town of Cohasset, Massachusetts 37 Comprehensive Annual Financial Report Other Postemployment Private Benefit Purpose Agency Trust Fund Trust Funds Funds ASSETS Cash and cash equivalents…………………………………………$253,530 $6,307 $591,694 Investments: Investments in Pension Reserve Investment Trust………… 1,192,576 - - Mutual funds……………………………………………………… 1,233,834 - - Equity securities………………………………………………… - 872,547 - Receivables, net of allowance for uncollectibles: Departmental and other………………………………………… - - 219,891 TOTAL ASSETS……………………………………………………… 2,679,940 878,854 811,585 LIABILITIES Warrants payable…………………………………………………… - - 399,474 Liabilities due depositors…………………………………………… - - 226,624 Other liabilities……………………………………………………… - - 185,487 TOTAL LIABILITIES…………………………………………………… - - 811,585 NET POSITION Restricted for OPEB benefits……………………………………… 2,679,940 - - Held in trust for other purposes…………………………….……… - 878,854 - TOTAL NET POSITION………………………………………………$2,679,940 $878,854 $- See notes to basic financial statements. FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2018 Town of Cohasset, Massachusetts 38 Comprehensive Annual Financial Report Other Postemployment Private Benefit Purpose Trust Fund Trust Funds ADDITIONS: Contributions: Employer contributions………………………………………………………$350,000 $- Employer contributions for OPEB payments……………………………… 1,670,698 - Private donations……………………………………………………………… - 350 Total contributions………………………………………………………… 2,020,698 350 Net investment income (loss)…………………………………………………… 171,228 (4,870) TOTAL ADDITIONS……………………………………………………… 2,191,926 (4,520) DEDUCTIONS: OPEB benefit payments……………………………………………………… 1,670,698 - Educational scholarships…………………………………………………… - 16,450 TOTAL DEDUCTIONS…………………………………………………… 1,670,698 16,450 NET INCREASE (DECREASE) IN NET POSITION………………… 521,228 (20,970) NET POSITION AT BEGINNING OF YEAR………………………………… 2,158,712 899,824 NET POSITION AT END OF YEAR……………………………………………$2,679,940 $878,854 See notes to basic financial statements. FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2018 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 39 Comprehensive Annual Financial Report NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Notes to Basic Financial Statements The accompanying basic financial statements of the Town of Cohasset, Massachusetts (Town) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described herein. A. Reporting Entity The Town of Cohasset, Massachusetts, was incorporated in 1770, and has an open Town Meeting form of government with administrative authority vested in a five member Board of Selectmen and an appointed Town Manager. The Town’s major operations include police and fire protection, parks, library, recreation, public works, education, and general administrative services. In addition, the Town owns and operates a water system and sewer system. For financial reporting purposes, the Town has included all funds, organizations, agencies, boards, commissions and institutions. The Town has also considered all potential component units for which it is financially accountable as well as other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the basic financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the Town (the primary government) and its component units. Pursuant to these criteria, the Town includes one entity, The Cohasset Library Trust, as a blended component unit within the basic financial statements. Blended Component Unit Chapter 368, of the Acts of 2006, of the Massachusetts General Court granted the Cohasset Board of Library Trustees the right to establish a nonprofit corporation to be called the Cohasset Library Trust, Inc. under chapter 180 of the General Laws. Chapter 368 requires the Town Treasurer to serve as ex officio Treasurer of the Trust. The criteria used to determine the Trust being reported as a blended component unit within the permanent funds include the following. The legislation granted the Trustees the power to appoint the board of directors and remove any director with or without cause. The Town is financially accountable for the Trust as it has access to the resources and a financial benefit exists. Upon establishment of the Trust, the legislation required the Town Treasurer to turn over the Town Library Endowment funds. The Board of Library Trustees solicits donations to increase the endowment and directs the donors to make the donations directly to the Trust. The Trust’s purpose is to invest endowment funds and ultimately provide resources to support the capital and operating needs of the Town Library as determined by the Trustees. This support can be in the form of a transfer to the Town or minor expenses made directly from the Trust. The Trust is blended primarily due to the fact the directors of the Trust provide services exclusively to the Town Treasurer to assist in management of the endowment fund of the Paul Pratt Memorial Library, the public library of the Town. The legislation states that the Trust shall have no role in the governance of the Library. The Trust does not issue publically available financial statements. Joint Venture The Town is a member of the South Shore Vocational Technical High School that provides educational services to eight area communities. This joint venture assesses each community its share of operating and debt service costs based on student population and other factors. In 2018, Cohasset’s share of the operating and debt expenses was $68,633. There is no equity interest reported in these financial statements. Complete audited financial statements can be obtained directly from the School’s administrative office located at 476 Webster Street, Hanover, MA 02339. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 40 Comprehensive Annual Financial Report The Town has also entered into a joint venture for the South Shore Regional Emergency Communications Center (SSRECC) along with the Town of Hingham, Hull, and Norwell to pool resources and share costs, risks, and rewards of operating a regional 911 call center. The Center became operational as of January 1, 2012, and the Town’s 2018 assessment totaled $300,701. Since the assets of the SSRECC were acquired with State grants, there is currently no significant equity interest accruing to the member communities. The annual assessments are based on and equal to the operating costs of the Center. The SSRECC issues a publically available financial report that includes its financial statements. Copies of these financial statements may be obtained by writing to the SSRECC’s Executive Director, 210 Central Street, Hingham, MA 02043. B. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (i.e., statement of net position and the statement of changes in net position) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are supported primarily by user fees and charges. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Non-major funds are aggregated and displayed in a single column. Major Fund Criteria Major funds must be reported if the following criteria are met: • If 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 10 percent of the corresponding element (assets and deferred outflows of resources, liabilities and deferred inflows or resources, etc.) for all funds of that category or type (total governmental or total enterprise funds), and • If 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 5 percent of the corresponding element for all governmental and enterprise funds combined. Additionally, any other governmental or enterprise fund that management believes is particularly significant to the basic financial statements may be reported as a major fund. Fiduciary funds are reported by fund type. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 41 Comprehensive Annual Financial Report recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The statement of activities demonstrates the degree to which the direct expenses of a particular function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include the following: • Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. • Grants and contributions that are restricted to meeting the operational requirements of a particular function or segment. • Grants and contributions that are restricted to meeting the capital requirements of a particular function or segment. Taxes and other items not identifiable as program revenues are reported as general revenues. For the most part, the effect of interfund activity has been removed from the government-wide financial statements. Exceptions are charges between the general fund and sewer and water funds. Elimination of these charges would distort the direct costs and program revenues reported for the functions affected. Fund Financial Statements Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources. Real estate and personal property tax revenues are considered available if they are collected within 60 days after year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The General fund is the primary operating fund. It is used to account for all financial resources, except those that are required to be accounted for in another fund. The nonmajor governmental funds consist of 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: Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 42 Comprehensive Annual Financial Report The special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than permanent funds or capital projects. The capital projects fund is used to account for financial resources that are restricted, committed or assigned to expenditures for capital outlays. The permanent fund is used to account for and report financial resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. Proprietary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The Sewer enterprise fund is used to account for sewage treatment operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. The Water enterprise fund is used to account for water distribution operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods and services to the general public on a continuing basis be financed or recovered primarily through user charges. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the governmental programs. The following fiduciary fund types are reported: The other postemployment benefit trust fund is used to accumulate resources to provide funding for future OPEB liabilities. The private purpose trust fund is used to account for trust arrangements that exclusively benefit individuals, private organizations, or other governments. Some of these trusts have donor restrictions and trustee policies that do not allow the endowment portion and any unrealized appreciation to be spent. The restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings. The Town’s mainly uses this fund to account for educational scholarships. The agency fund is used to account for assets held in a purely custodial capacity. The Town’s agency accounts consist of off-duty work details, performance bonds, and fees collected on behalf of other governments. The Agency fund applies the accrual basis of accounting but does not have a measurement focus. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 43 Comprehensive Annual Financial Report D. Cash and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. The fair values were determined by the closing price for those securities traded on national stock exchanges and the average bid-and-ask quotation for those securities traded in the over- the-counter market. E. Fair Value Measurements The Town reports required types of financial instruments in accordance with the fair value standards. These standards require an entity to maximize the use of observable inputs (such as quoted prices in active markets) and minimize the use of unobservable inputs (such as appraisals or valuation techniques) to determine fair value. Fair value standards also require the government to classify these financial instruments into a three-level hierarchy, based on the priority of inputs to the valuation technique or in accordance with net asset value practical expedient rules, which allow for either Level 2 or Level 3 depending on lock up and notice periods associated with the underlying funds. Instruments measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 – Quoted prices are available in active markets for identical instruments as of the reporting date. Instruments, which are generally included in this category, include actively traded equity and debt securities, U.S. government obligations, and mutual funds with quoted market prices in active markets. Level 2 – Pricing inputs are other than quoted in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Certain fixed income securities, primarily corporate bonds, are classified as Level 2 because fair values are estimated using pricing models, matrix pricing, or discounted cash flows. Level 3 – Pricing inputs are unobservable for the instrument and include situations where there is little, if any, market activity for the instrument. The inputs into the determination of fair value require significant management judgment or estimation. In some instances the inputs used to measure fair value may fall into different levels of the fair value hierarchy and is based on the lowest level of input that is significant to the fair value measurement. Market price is affected by a number of factors, including the type of instrument and the characteristics specific to the instrument. Instruments with readily available active quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. It is reasonably possible that change in values of these instruments will occur in the near term and that such changes could materially affect amounts reported in these financial statements. For more information on the fair value of the Town’s financial instruments, see Note 2 – Cash and Investments. F. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 44 Comprehensive Annual Financial Report accounting. The recognition of revenue related to accounts receivable reported in the governmental funds financial statements are reported under the modified accrual basis of accounting. Real Estate, Personal Property Taxes and Tax Liens Real estate and personal property taxes are levied and based on values assessed on January 1st of every year. Assessed values are established by the Board of Assessor’s for 100% of the estimated fair market value. Real estate and personal property taxes are billed on a quarterly basis. The first two quarters (August 1st and November 1st) are preliminary tax bills based upon the previous year’s total annual tax. The second two quarters (February 1st and May 1st) are actual tax, reflecting the current year assessment and the current tax rate. Taxes due and unpaid are subject to penalties and interest if they are not paid by the respective due date. The Town has an ultimate right to foreclose on property for which taxes have not been paid. Real estate and personal property taxes levied are recorded as receivables in the year of the levy and are recorded under the modified accrual basis of accounting. Real estate tax liens are processed after the tax bills are sent and are recorded as receivables in the year they are processed. Real estate receivables are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectible accounts is not reported. Personal property taxes cannot be secured through the lien process. The allowance of uncollectible accounts is estimated based on historical trends and specific account analysis. Motor Vehicle and Other Excise Taxes Motor vehicle excise taxes are assessed annually for each vehicle registered and are recorded as receivables in the year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles. The tax calculation is the fair value of the vehicle multiplied by $25 per $1,000 of value. Boat excise taxes are assessed annually for each boat registered and are recorded as receivables in the year of the levy. The Commonwealth is responsible for reporting the number of boats registered and the fair value of those boats. The tax calculation is the fair value of the boat multiplied by $10 per $1,000 of value. The allowance for uncollectible accounts is estimated based on historical trends and specific account analysis. User Charges User fees are levied quarterly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date. Unbilled user fees are estimated at year-end and are recorded as revenue in the current period. Water and Sewer liens are processed in December of every year and included as a lien on the property owner’s tax bill. Water and Sewer charges and liens are recorded as receivables in the year of the levy. Since the receivables are secured via the lien process, these accounts are considered 100% collectible and therefore do not report an allowance for uncollectible accounts. Departmental and Other Departmental and other receivables consist primarily of ambulance charges and veterans benefits and are recorded as receivables in the year accrued. The allowance of uncollectible accounts is estimated based on historical trends and specific account analysis. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 45 Comprehensive Annual Financial Report Special Assessments Special assessments consist of sewer construction and particular apportioned street and water line betterments. These receivables are considered to be 100% collectible and therefore do not report an allowance for uncollectible accounts. Intergovernmental Various federal and state grants for operating and capital purposes are applied for and received annually. For non-expenditure driven grants, receivables are recorded as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants, receivables are recorded when the qualifying expenditures are incurred and all other grant requirements are met. These receivables are considered 100% collectible and therefore do not report an allowance for uncollectible accounts. G. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the government-wide and fund financial statements, and therefore are not reported. H. Capital Assets Government-Wide and Proprietary Fund Financial Statements Capital assets, which include land, land improvements, buildings, machinery and equipment, vehicles and infrastructure (e.g., roads, water mains, sewer mains, and similar items), are reported in the applicable governmental or business-type activity column of the government-wide financial statements, and the proprietary fund financial statements. Capital assets are recorded at historical cost, or at estimated historical cost, if actual historical cost is not available. Donated capital assets; donated works of art, historical treasures and similar assets, and capital assets received in service concession arrangements are recorded at the acquisition value. Except for the capital assets of the governmental activities column in the government-wide financial statements, construction period interest is capitalized on constructed capital assets. All purchases and construction costs in excess of $25,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Capital assets (excluding land and construction-in-progress) are depreciated on a straight-line basis over the estimated useful life of the assets. The estimated useful lives of capital assets are as follows: Estimated Useful Life Capital Asset Type (in years) Land improvements………………………………………… 20 Buildings and improvements……………………………… 40 Machinery and equipment………………………………… 5 Vehicles……………………………………………………… 5 Infrastructure………………………………………………… 40 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 46 Comprehensive Annual Financial Report The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized. Governmental Fund Financial Statements Capital asset costs are recorded as expenditures in the acquiring fund in the year of the purchase. I. Deferred Outflows/Inflows of Resources Government-Wide Financial Statements (Net Position) 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. As of June 30, 2018, the Town reported a deferred loss on refunding, deferred outflows related to OPEB, as well as deferred outflows related to pensions within this category. 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 so will not be recognized as an inflow of resources (revenue) until that time. As of June 30, 2018, the Town reported deferred inflows of resources related to pensions within this category. Governmental Fund Financial Statements Unavailable revenue at the governmental fund financial statement level represents outstanding receivables that do not meet the available criterion for revenue recognition in accordance with the current financial resources measurement focus and the modified accrual basis of accounting. Unavailable revenues are reported as deferred inflows of resources. Unavailable revenues are recognized as revenue during the conversion to the government- wide (full accrual) financial statements. J. Interfund Receivables and Payables During the course of its operations, transactions occur between and within individual funds that may result in amounts owed between funds. Government-Wide Financial Statements Transactions of a buyer/seller nature between and within governmental funds are eliminated from the governmental activities in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the statement of net position as “internal balances”. Fund Financial Statements Transactions of a buyer/seller nature between and within funds are not eliminated from the individual fund statements. Receivables and payables resulting from these transactions are classified as “Due from other funds” or “Due to other funds” on the balance sheet. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 47 Comprehensive Annual Financial Report K. Interfund Transfers During the course of its operations, resources are permanently reallocated between and within funds. These transactions are reported as transfers in and transfers out. Government-Wide Financial Statements Transfers between and within governmental funds and internal service funds are eliminated from the governmental activities in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the statement of activities as “Transfers, net”. Fund Financial Statements Transfers between and within funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. L. Net Position and Fund Equity Government-Wide Financial Statements (Net Position) 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 assets. Outstanding receivables related to future subsidies from the Massachusetts Water Pollution Abatement Trust 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 future use. Net position has been “restricted for” the following: “Debt service” represents a capital grant to fund debt service on the school debt that will be amortized over the remaining life of the debt in accordance with state governmental regulations “Permanent funds – expendable” represents the amount of realized and unrealized investments earnings of donor restricted trusts. The restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings. “Permanent funds – nonexpendable” represent the endowment portion of donor restricted trusts. “Grants and Gifts” represents restrictions placed on assets from outside parties. “Community preservation” represents amounts held for uses restricted by law for community preservation purposes. Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town’s policy to consider restricted net position to have been depleted before unrestricted net position is applied. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 48 Comprehensive Annual Financial Report Fund Financial Statements (Fund Balances) Governmental fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned based on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The governmental fund balance classifications are as follows: “Nonspendable” fund balance includes amounts that cannot be spent because they are either not in spendable form or they are legally or contractually required to be maintained intact. “Restricted” fund balance includes amounts subject to constraints placed on the use of resources that is either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or that are imposed by law through constitutional provisions or enabling legislation. “Committed” fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority. Town Meeting is the highest level of decision-making authority for the government that can, by adoption of a Town Meeting article (resolution) prior to the end of the year, commit fund balance. Once adopted, the limitation imposed by the article remains in place until a similar action is taken to remove or revise the limitation. “Assigned” fund balance includes amounts that are constrained by the Town’s intent to be used for specific purposes, but are neither restricted nor committed. The Board of Selectmen has by resolution authorized the Finance Director to assign fund balance. The Board 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 budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. “Unassigned” fund balance includes the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The Town’s spending policy is to spend restricted fund balance first, followed by committed, assigned and unassigned fund balance. Most governmental funds are designated for one purpose at the time of their creation. Therefore, any expenditure from the fund will be allocated to the applicable fund balance classifications in the order of the aforementioned spending policy. The general fund and certain other funds may have more than one purpose. M. Unavailable Revenue Unavailable revenue at the governmental fund financial statement level represents billed receivables that do not meet the availability criterion in accordance with the current financial resources measurement focus and the modified accrual basis of accounting. Unavailable revenue is recognized as revenue in the conversion to the entity-wide (full accrual) financial statements. N. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Norfolk County Contributory Retirement System and the Massachusetts Teachers Retirement System and additions to/deductions from the System’s fiduciary net position have been determined on the same basis as they are Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 49 Comprehensive Annual Financial Report reported by the System s. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. O. Long-term debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net position. Material bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources. Bond premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual bond proceeds received, are reported as administrative services expenditures. P. Investment Income Excluding the permanent funds, investment income derived from major and nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL). Investment income from Enterprise Funds is retained in their respective funds. Q. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave, which will be liquidated with expendable available financial resources, are reported as expenditures and fund liabilities upon maturity of the liability, i.e. unused reimbursable leave still outstanding following an employee’s resignation or retirement. R. Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the year. Actual results could vary from estimates that were used. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 50 Comprehensive Annual Financial Report S. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. T. Fund Deficits The bonded capital projects fund had a year-end deficit of $275,769. This deficit will be funded through future long-term debt proceeds and other available funds. NOTE 2 – CASH AND INVESTMENTS A cash and investment pool is maintained that is available for use by all funds. Each fund type's portion of this pool is displayed on the balance sheet as "Cash and Cash Equivalents". The deposits and investments of the trust funds are held separately from those of other funds. Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment Pool (Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth. The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts Municipal Depository Trust (MMDT), which was established by the Treasurer of the Commonwealth who serves as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares. The Town participates in the Pension Reserve Investment Trust (PRIT), which meets the criteria of an external investment pool. PRIT is administered by the Pension Reserves Investment Management Board, which was established by the Treasurer of the Commonwealth of Massachusetts who serves as Trustee. The fair value of the position in the PRIT is the same as the value of the PRIT shares. The PRIT fund, as a pool, invests in various products including, but not limited to, money market mutual funds, equities, pooled foreign and domestic fixed income and equity funds, United States government sponsored enterprises and Treasury notes, real estate, and commodities. The underlying components of PRIT’s fixed income portfolio had an effective weighted duration rate ranging from .15 to 16.31 years. There is no credit quality rating for the fund. Custodial Credit Risk – Deposits In the case of deposits, this is the risk that in the event of a bank failure, the Town of Cohasset’s deposits may not be returned to it. The Town does not have a deposit policy for custodial credit risk. At year-end, the carrying amount of deposits totaled $14,401,608 and the bank balance totaled $14,952,012. Of the bank balance, $1,413,739 was covered by Federal Depository Insurance, $2,136,074 was covered by DIF Insurance, $2,250,189 was covered by SIF Insurance, and $9,152,010 was exposed to custodial credit risk because it was uninsured and uncollateralized. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 51 Comprehensive Annual Financial Report At year-end the carrying amount of deposits for the Pratt Memorial Library Trust totaled $77,650. The bank balance totaled $77,650 all of which was covered by Federal Depository Insurance. Investments As of June 30, 2018, the Town had the following investments: Investment Type Fair value Under 1 Year 1-5 Years 6-10 Years Debt securities: U.S. treasury bonds…………………………………$2,078,090 $338,663 $1,482,755 $256,672 Government sponsored enterprises……………… 2,085,408 445,083 1,272,526 367,799 Corporate bonds................................................... 968,151 - 826,739 141,412 Total debt securities............................................. 5,131,649 $783,746 $3,582,020 $765,883 Other investments: Equity securities.................................................... 3,149,603 Equity mutual funds………………………………… 886,635 Fixed income………………………………………… 2,345,549 Money market mutual funds……………………… 120,601 Pension Reserve Investment Trust (PRIT)……… 1,192,576 MMDT - Cash portfolio……………………………… 3,920,530 Total investments.................................................$16,747,143 Maturities As of June 30, 2018, the Pratt Memorial Library Trust had $1,562,306 invested in mutual funds. Custodial Credit Risk – Investments For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to recover the value of its investments or collateral security that are in the possession of an outside party. Of the Town’s investments, $5,131,649 of debt securities, and $3,149,603 of equity securities are exposed to custodial credit risk because the related securities are uninsured, unregistered and held by the counterparty. The Town’s investment policy requires all securities not held directly by the Town to be held in the Town’s name and tax identification number by a third party custodian approved by the Treasurer. Interest Rate Risk Interest rate risk exists when there is a possibility that changes in interest rates could adversely affect the fair value of the Town’s investments. The Town’s investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk The Town’s investment policy limits investments in debt securities to United States Treasuries and United States Government Agency obligations, which carry a AA rating, and other investments that must be in high grade securities, a high concentration of which must be rated A and above. Additionally the Treasurer may invest in the Massachusetts Municipal Depository Trust (MMDT) with no limit to the amount of funds placed in this fund. At June 30, 2018, the Town’s investments in U.S. Treasury Bonds and Government Sponsored Enterprises were rated AA+. The Town’s investment in Corporate Bonds held ratings that ranged from A to BBB. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 52 Comprehensive Annual Financial Report Concentration of Credit Risk The Town will minimize the concentration of credit risk by diversifying the investment portfolio, so that the impact of potential losses from any one type of security or issuer will be minimized. No more than 5% of the Town’s investments are invested in any one issuer. Fair Value of Investments The Town holds investments that are measured at fair value on a recurring basis. Because investing is not a core part of the Town’s mission, the Town determines that the disclosures related to these investments only need to be disaggregated by major type. The Town chooses a tabular format for disclosing the levels within the fair value hierarchy. The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Town has the following fair value measurements as of June 30, 2018: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable June 30,Assets Inputs Inputs Investment Type 2018 (Level 1)(Level 2)(Level 3) Investments measured at fair value: Debt securities: U.S. treasury bonds…………………………………$2,078,090 $2,078,090 $- $- Government sponsored enterprises……………… 2,085,408 2,085,408 - - Corporate bonds................................................. 968,151 - 968,151 - Total debt securities............................................ 5,131,649 4,163,498 968,151 - Other investments: Equity securities.................................................. 3,149,603 3,149,603 - - Equity mutual funds………………………………… 886,635 886,635 - - Fixed income……………………………………… 2,345,549 2,345,549 - - Money market mutual funds……………………… 120,601 120,601 - - Total other investments...................................... 6,502,388 6,502,388 - - Total investments measured at fair value…………… 11,634,037 $10,665,886 $968,151 $- Investments measured at amortized cost: MMDT - Cash portfolio…………………………… 3,920,530 Investments measured at net asset value: Pension Reserve Investment Trust (PRIT)……… 1,192,576 Total investments………………………………………$16,747,143 Fair Value Measurements Using Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 53 Comprehensive Annual Financial Report Government sponsored enterprises, U.S. Treasury notes, equity securities, mutual funds, money market mutual funds classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Corporate bonds classified in Level 2 of the fair value hierarchy are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. PRIT Investments are valued using the net asset value method. This investment pool was established by the Treasurer of the Commonwealth of Massachusetts, who serves as Trustee. PRIT is administered by the Pension Reserves Investment Management Board (PRIM). The fair values of the positions in each investment Pool are the same as the value of each Pool’s shares. The Town does not have the ability to control any of the investment decisions relative to its funds in PRIT. MMDT investments are valued at amortized cost. Under the amortized cost method, an investment is valued initially at its cost and adjusted for the amount of interest income accrued each day over the term of the investment to account for any difference between the initial cost and the amount payable at its maturity. If amortized cost is determined not to approximate fair value, the value of the portfolio securities will be determined under procedures established by the Advisor. The Pratt Memorial Library Trust investments at June 30, 2018, of $1,562,306 are measured at fair value using quoted prices in active markets for identical assets (Level 1). NOTE 3 – RECEIVABLES At June 30, 2018, receivables for the individual major and non-major governmental funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance Gross for Net Amount Uncollectibles Amount Receivables: Real estate and personal property taxes…………$402,485 $(3,000) $399,485 Tax liens……………………………………...……… 950,094 - 950,094 Motor vehicle and other excise taxes…………… 89,474 (11,000) 78,474 Departmental and other…………………………… 585,472 (395,977) 189,495 Intergovernmental………………………………… 1,930,718 - 1,930,718 Special assessments……………………………… 1,500,331 - 1,500,331 Total…………………………………………………$5,458,574 $(409,977) $5,048,597 At June 30, 2018, receivables for the sewer and water enterprise funds consist of the following: `Allowance Gross for Net Amount Uncollectibles Amount Receivables: Water user charges……………………………$1,321,640 $- $1,321,640 Sewer user charges…………………………… 561,611 - 561,611 Sewer special assessments………………… 6,824,318 - 6,824,318 Total……………………………………………$8,707,569 $- $8,707,569 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 54 Comprehensive Annual Financial Report Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: Other General Governmental Fund Funds Total Receivables: Real estate and personal property taxes………………$384,557 $- $384,557 Tax liens……………………………………...…………… 939,859 10,235 950,094 Motor vehicle and other excise taxes………………… 78,474 - 78,474 Departmental and other………………………………… 185,790 3,705 189,495 Intergovernmental………………………………………… 1,577,133 216,967 1,794,100 Special assessments…………………………………… 739,202 761,129 1,500,331 Total………………………………………………………$3,905,015 $992,036 $4,897,051 NOTE 4 – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2018, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets not being depreciated: Land……………………………………………………$6,947,032 $- $- $6,947,032 Construction in progress……………………………… 1,288,044 710,579 - 1,998,623 Total capital assets not being depreciated……… 8,235,076 710,579 - 8,945,655 Capital assets being depreciated: Land improvements…………………………………… 1,022,162 - - 1,022,162 Buildings and improvements………………………… 67,965,690 59,527 - 68,025,217 Machinery and equipment……………………………… 3,343,389 118,500 - 3,461,889 Vehicles………………………………………………… 4,470,359 188,236 (63,372) 4,595,223 Infrastructure…………………………………………… 29,193,648 581,055 (51,173) 29,723,530 Total capital assets being depreciated………… 105,995,248 947,318 (114,545) 106,828,021 Less accumulated depreciation for: Land improvements…………………………………… (257,348) (35,380) - (292,728) Buildings and improvements………………………… (28,025,235) (1,586,126) - (29,611,361) Machinery and equipment……………………………… (1,885,783) (285,327) - (2,171,110) Vehicles………………………………………………… (3,339,251) (302,621) 63,372 (3,578,500) Infrastructure…………………………………………… (16,358,389) (758,017) 51,173 (17,065,233) Total accumulated depreciation………………… (49,866,006) (2,967,471) 114,545 (52,718,932) Total capital assets being depreciated, net…………… 56,129,242 (2,020,153) - 54,109,089 Total governmental activities capital assets, net………$64,364,318 $(1,309,574) $- $63,054,744 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 55 Comprehensive Annual Financial Report Business-Type Activities Beginning Ending Balance Increases Decreases Balance Water: Capital assets not being depreciated: Land……………………………………………………$1,307,549 $- $- $1,307,549 Construction in progress……………………………… - 274,302 - 274,302 Total capital assets not being depreciated……… 1,307,549 274,302 - 1,581,851 Capital assets being depreciated: Buildings and improvements………………………… 65,069 - - 65,069 Machinery, equipment and vehicles………………… 263,749 - - 263,749 Vehicles………………………………………………… 75,021 - (26,163) 48,858 Infrastructure…………………………………………… 49,140,048 - - 49,140,048 Total capital assets being depreciated………… 49,543,887 - (26,163) 49,517,724 Less accumulated depreciation for: Buildings and improvements………………………… (13,509) (3,003) - (16,512) Machinery, equipment and vehicles………………… (55,601) (19,158) - (74,759) Vehicles………………………………………………… (34,306) (9,772) 26,163 (17,915) Infrastructure…………………………………………… (16,131,697) (946,948) - (17,078,645) Total accumulated depreciation………………… (16,235,113) (978,881) 26,163 (17,187,831) Total capital assets being depreciated, net…………… 33,308,774 (978,881) - 32,329,893 Total water activities capital assets, net…………………$34,616,323 $(704,579) $- $33,911,744 Beginning Ending Balance Increases Decreases Balance Sewer: Capital assets not being depreciated: Land……………………………………………………$1,009 $- $- $1,009 Capital assets being depreciated: Buildings and improvements………………………… 1,121,784 - - 1,121,784 Machinery and equipment……………………………… 4,827,061 - - 4,827,061 Infrastructure…………………………………………… 33,351,017 - - 33,351,017 Total capital assets being depreciated………… 39,299,862 - - 39,299,862 Less accumulated depreciation for: Buildings and improvements………………………… (349,993) (18,696) - (368,689) Machinery and equipment……………………………… (2,425,891) (135,175) - (2,561,066) Infrastructure…………………………………………… (7,948,363) (610,146) - (8,558,509) Total accumulated depreciation………………… (10,724,247) (764,017) - (11,488,264) Total capital assets being depreciated, net…………… 28,575,615 (764,017) - 27,811,598 Total sewer activities capital assets, net…………………$28,576,624 $(764,017) $- $27,812,607 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 56 Comprehensive Annual Financial Report Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: Administrative services……………………………………………………$221,146 Public safety………………………………………………………………… 296,410 Education…………………………………………………………………… 1,431,850 Public works………………………………………………………………… 828,160 Health & welfare…………………………………………………………… 29,243 Culture and recreation……………………………………………………… 160,662 Total depreciation expense - governmental activities………………………$2,967,471 Business-Type Activities: Water…………………………………………………………………..……$978,881 Sewer…………………………………………………………………..…… 764,017 Total depreciation expense - business-type activities………………………$1,742,898 NOTE 5 – CAPITAL LEASES The Town has entered into non-cancelable long-term lease agreements for the purchase of certain equipment. The lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date. The following identifies the assets acquired through capital lease agreements: Governmental Activities Asset: Machinery and equipment……………$181,803 Less: accumulated depreciation…… (53,026) Total……………………………………$128,777 The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2018, were as follows: Years ending June 30: 2019…………………………………………………$40,780 2020………………………………………………… 40,780 2021………………………………………………… 40,783 Total minimum lease payments………………… 122,343 Less: amounts representing interest…………… (9,065) Present value of minimum lease payments……$113,278 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 57 Comprehensive Annual Financial Report NOTE 6 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund receivables and payables for the year ended June 30, 2018, included an advance of $136,618 from the general fund to the Chapter 90 fund to meet temporary cash flow need. Interfund transfers for the year ended June 30, 2018, are summarized as follows: Nonmajor General governmental Transfers Out:fund funds Total General fund……………………………$- $864,357 $864,357 (1) Nonmajor governmental funds………… 165,084 58,104 223,188 (2) Water enterprise fund………………… 106,668 - 106,668 (3) Sewer enterprise fund………………… 100,215 - 100,215 (3) Total………………………………………$371,967 $922,461 $1,294,428 Transfers In: (1) Budgeted transfers from the general fund and the capital stabilization fund to various capital project funds. (2) Budgeted transfers from school construction surplus, wetlands, open space, and Title V betterments to the general fund. Also, transfers to and from various nonmajor governmental funds. (3) Budgeted transfers from the sewer and water enterprise funds. NOTE 7 – SHORT-TERM FINANCING Short-term debt may be authorized and issued to fund the following: • Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation notes (RANS or TANS). • Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). Short-term loans are general obligations of the Town and carry maturity dates that are limited by statute. Interest expenditures for short-term borrowings are accounted for in the General Fund and the Enterprise funds, where applicable. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 58 Comprehensive Annual Financial Report Details related to the Town’s short-term debt activity for the year ended June 30, 2018, is as follows: Balance at Balance at Rate June 30,Renewed/Retired/June 30, Type Purpose (%)Due Date 2017 Issued Redeemed 2018 Governmental Funds: BAN Municipal Purpose…… 1.50%06/22/18 $597,400 $- $(597,400) $- BAN Municipal Purpose…… 1.95%06/21/19 - 597,400 - 597,400 BAN Municipal Purpose…… 1.95%06/21/19 - 300,000 - 300,000 BAN MCWT interim loan… 0.00%06/30/19 - 150,000 - 150,000 Total Governmental Funds…………………………$597,400 $1,047,400 $(597,400) $1,047,400 NOTE 8 – LONG-TERM DEBT Under the provisions of Chapter 44, Section 10, Municipal Law authorizes indebtedness up to a limit of 5% of the equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the debt limit". In addition, however, debt may be authorized in excess of that limit for specific purposes. Such debt, when issued, is designated as being "outside the debt limit". In prior years, certain general obligation bonds were defeased by placing the proceeds of bonds in an irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, the trust account’s assets and liabilities for the defeased bonds are not included in the basic financial statements. At June 30, 2018, $176,000 of governmental and $9,959,000 of business-type general obligation bonds that mature in 2020 are considered defeased. Details related to the Town’s outstanding general obligation indebtedness at June 30, 2018, and the debt service requirements are as follow: Original Interest Outstanding Maturities Loan Rate at June 30, Project Through Amount (%)2018 Governmental Funds: MCWT…………………………………………………… 2033 $27,680,877 0.00-5.30 $5,071,712 General Obligation Bonds of 2009…………………… 2027 265,000 1.50-4.00 30,000 General Obligation Bonds of 2010…………………… 2030 1,726,000 1.00-3.50 84,000 General Obligation Refunding Bonds of 2010……… 2021 835,000 1.50-2.50 235,000 General Obligation Refunding Bonds of 2012……… 2024 9,039,000 1.80 5,095,000 General Obligation Refunding Bonds of 2013……… 2026 696,450 2.00-3.00 333,400 General Obligation Bonds of 2013…………………… 2024 215,000 2.00-3.00 30,000 General Obligation Bonds of 2016…………………… 2026 1,208,000 2.00-3.00 900,000 General Obligation Refunding Bonds of 2016……… 2027 193,500 2.00-3.00 189,500 General Obligation Bonds of 2017…………………… 2037 1,417,000 3.00-4.00 1,164,810 General Obligation Refunding Bonds of 2017……… 2030 166,800 3.00-4.00 166,800 Total Bonds Payable…………….………………………………………………………………………… 13,300,222 Add: Unamortized premium on bonds……………………………………………………………………… 261,445 Total Bonds Payable, net…………….………………………………………………………………………$13,561,667 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 59 Comprehensive Annual Financial Report Debt service requirements for principal and interest for governmental bonds payable in future years are as follows: Year Principal Interest Total 2019……………$2,991,291 $387,334 $3,378,625 2020…………… 2,617,266 277,222 2,894,487 2021…………… 2,198,774 180,437 2,379,212 2022…………… 1,207,014 115,264 1,322,278 2023…………… 1,190,888 79,144 1,270,032 2024…………… 1,172,594 46,758 1,219,352 2025…………… 321,136 29,749 350,885 2026…………… 303,912 21,083 324,995 2027…………… 185,724 15,061 200,785 2028…………… 172,573 12,601 185,174 2029…………… 173,459 9,975 183,434 2030…………… 175,383 8,547 183,930 2031…………… 174,345 6,539 180,884 2032…………… 121,200 5,088 126,288 2033…………… 122,128 4,159 126,287 2034…………… 48,075 3,211 51,286 2035…………… 49,042 2,246 51,288 2036…………… 50,028 1,259 51,287 2037…………… 25,390 254 25,644 Total……………$13,300,222 $1,205,930 $14,506,152 The Town receives subsidy assistance from the Massachusetts Clean Water Trust (MCWT). Future subsidies of capital expenses are structured as principal subsidies of principal payments. Interest on the outstanding bonds for MCWT is subsidized over the life of the bonds to assist the Town in repayment of this future debt. Future principal subsidies of $1,577,133 have been recorded as an intergovernmental receivable in the general fund. Future interest subsidies total $213,904 and will be recognized as revenue when received. During 2018, the Town’s principal and interest subsidy amounted to approximately $772,000. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 60 Comprehensive Annual Financial Report Original Interest Outstanding Maturities Loan Rate at June 30, Project Through Amount (%)2018 Sewer Enterprise Fund MCWT…………………………………………………… 2031 $12,600,000 2.00 $8,750,172 General Obligation Bonds of 2009…………………… 2029 350,000 4.00 20,000 General Obligation Bonds of 2010…………………… 2030 1,071,000 3.30-3.40 110,000 General Obligation Refunding Bonds of 2012……… 2023 46,000 1.80 25,000 General Obligation Bonds of 2013…………………… 2033 669,348 2.00-3.00 520,000 General Obligation Bonds of 2016…………………… 2026 570,000 2.00-3.00 470,000 General Obligation Refunding Bonds of 2016……… 2026 193,500 2.00-3.00 190,000 General Obligation Refunding Bonds of 2017……… 2030 495,500 3.00-4.00 495,500 Total Bonds Payable…………….…………………………………………………………………………$10,580,672 Debt service requirements for principal and interest for Sewer Enterprise Fund bonds payable in future years are as follows: Year Principal Interest Total 2019……………$760,306 $223,405 $983,711 2020…………… 774,833 206,279 981,112 2021…………… 782,003 189,512 971,514 2022…………… 792,920 172,580 965,500 2023…………… 810,689 155,103 965,793 2024…………… 818,918 136,764 955,682 2025…………… 829,209 118,543 947,752 2026…………… 850,769 99,953 950,722 2027…………… 799,603 80,927 880,530 2028…………… 822,716 63,581 886,297 2029…………… 836,114 45,593 881,707 2030…………… 825,803 28,074 853,877 2031…………… 796,789 3,000 799,789 2032…………… 40,000 1,800 41,800 2033…………… 40,000 600 40,600 Total……………$10,580,672 $1,525,715 $12,106,387 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 61 Comprehensive Annual Financial Report Original Interest Outstanding Maturities Loan Rate at June 30, Project Through Amount (%)2018 Water Enterprise Fund MCWT…………………………………………………… 2027 $7,145,507 2.00 $5,485,430 General Obligation Bonds of 2009…………………… 2029 1,051,000 4.00 50,000 General Obligation Bonds of 2010…………………… 2030 16,379,000 3.50 1,406,000 General Obligation Refunding Bonds of 2010……… 2021 1,705,000 1.50-2.50 350,000 General Obligation Refunding Bonds of 2013……… 2026 4,533,550 2.00-3.00 3,426,600 General Obligation Bonds of 2013…………………… 2033 2,004,652 2.00-3.00 1,405,000 General Obligation Refunding Bonds of 2016……… 2029 655,000 2.00-3.00 650,500 General Obligation Bonds of 2017…………………… 2020 235,000 3.00-4.00 155,000 General Obligation Refunding Bonds of 2017……… 2030 8,837,700 3.00-4.00 8,837,700 Total Bonds Payable…………….………………………………………………………………………… 21,766,230 Add: Unamortized premium on bonds……………………………………………………………………… 1,032,046 Total Bonds Payable, net…………….………………………………………………………………………$22,798,276 Debt service requirements for principal and interest for Water Enterprise Fund bonds payable in future years are as follows: Year Principal Interest Total 2019……………$1,909,335 $637,077 $2,546,411 2020…………… 1,943,829 576,097 2,519,926 2021…………… 1,862,289 520,164 2,382,453 2022…………… 1,760,716 466,948 2,227,665 2023…………… 1,787,112 411,131 2,198,243 2024…………… 1,830,682 355,702 2,186,384 2025…………… 1,890,829 301,027 2,191,856 2026…………… 1,835,956 245,269 2,081,225 2027…………… 1,600,269 191,322 1,791,591 2028…………… 1,572,655 138,813 1,711,468 2029…………… 1,552,568 86,085 1,638,653 2030…………… 1,520,085 37,914 1,557,999 2031…………… 494,905 7,650 502,555 2032…………… 100,000 4,650 104,650 2033…………… 105,000 - 105,000 Total……………$21,766,230 $3,979,849 $25,746,078 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 62 Comprehensive Annual Financial Report The Town is subject to various debt limits by statute and may issue additional general obligation debt under the normal debt limit. At June 30, 2018, the Town had the following authorized and unissued debt: Purpose Amount Septic System…………………………………………………………………$1,250,000 Department of Public Works Vehicles and Equipment…………………… 10,000 Bound Brook Dam…………………………………………………………… 597,400 Bear Hill Water Tank Painting & Repairs………………………………… 165,000 Town Hall Design…………………………………………………………… 300,000 Private Roadway Betterments……………………………………………… 500,000 Total……………………………………………………………………………$2,822,400 Changes in Long-term Liabilities During the year ended June 30, 2018, the following changes occurred in long-term liabilities: Bonds and Bonds and Beginning Notes Notes Other Other Ending Due Within Balance Issued Redeemed Increases Decreases Balance One Year Governmental Activities: Long-term bonds payable……………………$16,645,665 $- $(3,345,443) $- $- $13,300,222 $2,991,291 Add: Unamortized premium on bonds… 362,076 - - - (100,631) 261,445 85,242 Total bonds payable………………………… 17,007,741 - (3,345,443) - (100,631) 13,561,667 3,076,533 Capital lease obligations…………………… 148,204 - - - (34,926) 113,278 36,306 Landfill closure……………………………… 186,226 - - - (26,500) 159,726 26,500 Net pension liability…………………………… 18,990,842 - - 3,066,605 (2,288,295) 19,769,152 - Net OPEB liability…………………………… 41,086,611 - - 3,208,670 (2,017,057) 42,278,224 - Total governmental activity long-term liabilities…………………………$77,419,624 $- $(3,345,443) $6,275,275 $(4,467,409) $75,882,047 $3,139,339 Business-Type Activities: Long-term bonds payable……………………$35,163,019 $- $(2,816,117) $- $- $32,346,902 $2,669,641 Add: Unamortized premium on bonds… 1,158,158 - - - (126,112) 1,032,046 140,558 Total bonds payable………………………… 36,321,177 - (2,816,117) - (126,112) 33,378,948 2,810,199 Net pension liability…………………………… 131,369 - - - (62,043) 69,326 - Net OPEB liability…………………………… 74,164 - - 5,791 (3,641) 76,314 - Total business-type activity long-term liabilities…………………………$36,526,710 $- $(2,816,117) $5,791 $(191,796) $33,524,588 $2,810,199 The governmental activities liabilities will be liquidated by the general fund. The business-type liabilities will be liquidated by the enterprise fund reporting the liability. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 63 Comprehensive Annual Financial Report NOTE 9 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS The Town has adopted GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Types Definitions. The intention of the GASB is to provide a more structured classification of fund balance and to improve the usefulness of fund balance reporting to the users of the Town’s financial statements. The reporting standard establishes a hierarchy for fund balance classifications and the constraints imposed on the uses of those resources. Massachusetts General Law Ch.40 §5B allows for the establishment of Stabilization funds for one or more different purposes. The creation of a fund requires a two-thirds vote of the legislative body and must clearly define the purpose of the fund. Any changes to the purpose of the fund along with any appropriations from the fund required a two-thirds vote of the legislative body. Any additions to the fund require a majority vote of the legislative body. At year end the balance of the General Stabilization fund is $3,606,092, the Facilities Stabilization fund is $2,491, the Special Education Stabilization fund is $283,421, and the Capital Stabilization fund is $1,495,433. All stabilization balances have been reported as unassigned fund balance within the General Fund. GASB 54 provides for two major types of fund balance, which are nonspendable and spendable and are more fully discussed in Note 1. Nonspendable fund balances are balances that cannot be spent because they are not expected to be converted to cash or they are legally or contractually required to remain intact. Examples of this classification are prepaid items, inventories, and principal (corpus) of an endowment fund. The Town has reported principal portions of endowment funds as nonspendable. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in the governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to other purposes, it may be necessary to report a negative unassigned fund balance in that fund. In addition to the nonspendable fund balances, GASB 54 has provided a hierarchy of spendable fund balances, based on a hierarchy of spending constraints. • Restricted: fund balances that are constrained by external parties, constitutional provisions, or enabling legislation. • Committed: fund balances that contain self-imposed constraints of the government from its highest level of decision making authority. • Assigned: fund balances that contain self-imposed constraints of the government to be used for a particular purpose. • Unassigned: fund balance of the general fund that is not constrained for any particular purpose. The Town’s spending policy is to spend restricted fund balance first, followed by committed, assigned and unassigned fund balance. Most governmental funds are designated for one purpose at the time of their creation. Therefore, any expenditure from the fund will be allocated to the applicable fund balance classifications in the order of the aforementioned spending policy. The general fund and certain other funds may have more than one purpose. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 64 Comprehensive Annual Financial Report As of June 30, 2018, the governmental fund balance consisted of the following: Nonmajor Total Governmental Governmental General Funds Funds Fund Balances: Nonspendable: Permanent fund principal………………………………$- $442,525 $442,525 Restricted for: Town grants…………………………………………… - 557,679 557,679 School grants…………………………………………… - 307,170 307,170 Receipts reserved for appropriation………………… - 1,097,178 1,097,178 MCWT septic loan program…………………………… - 22,332 22,332 Town revolving funds…………………………………… - 990,470 990,470 School revolving funds………………………………… - 519,999 519,999 School lunch…………………………………………… - 211,818 211,818 Community preservation……………………………… - 3,104,534 3,104,534 Gifts and donations…………………………………… - 1,018,948 1,018,948 Other Town special revenue…………………………… - 3,892 3,892 Capital projects non-bonded…………………………… - 1,135,997 1,135,997 Library expendable trust funds………………………… - 1,405,342 1,405,342 Other expendable trust funds………………………… - 723,353 723,353 Committed to: Administrative services………………………………… 226,569 - 226,569 Public safety…………………………………………… 14,459 - 14,459 Education………………………………………………… 126,754 - 126,754 Public works…………………………………………… 132,871 - 132,871 Assigned to: Encumbrances: Administrative services………………………………… 96,099 - 96,099 Public safety…………………………………………… 5,888 - 5,888 Education………………………………………………… 126,524 - 126,524 Public works…………………………………………… 87,863 - 87,863 Health & welfare………………………………………… 4,629 - 4,629 Culture and recreation………………………………… 1,500 - 1,500 Unassigned……………………………………………………… 7,635,277 (275,769) 7,359,508 Total Fund Balances…………….……………………………..$8,458,433 $11,265,468 $19,723,901 NOTE 10 – 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. The Town participates in a premium-based health care plan for its employees. The plan is a health care risk pool and is administered by the Massachusetts Inter-local Insurance Association (Association). The Association was created to establish cost stability for its members with each participant being charged a premium for coverage based on rates established by the Association. The Town is obligated to pay the Association the required premiums as well as a pro-rata share of any Association deficit should the Association terminate operations. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 65 Comprehensive Annual Financial Report The Town is self-insured for worker’s compensation and unemployment benefits which are funded on a pay-as- you-go basis from annual appropriations. The estimated future workers’ compensation liability is based on history and injury type. At June 30, 2018, the amount of the liability for workers’ compensation claims and unemployment benefits were immaterial and are therefore not reported. NOTE 11 – PENSION PLAN The Town is a member of the Norfolk County Contributory Retirement System (System), a cost-sharing multiple- employer defined benefit pension plan covering eligible employees of the 43 member units. The system is administered by five board members (Board) on behalf of all current employees and retirees except for current teachers and retired teachers. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. The System issues a publicly available unaudited financial report in accordance with guidelines established by the Commonwealth’s Public Employee Retirement Administration Commission. That report may be obtained by contacting the System located at 480 Neponset Street, Building 15, Canton, MA 02021; or by visiting http:// http://www.norfolkcountyretirement.org/. The Town is a member of the Massachusetts Teachers’ Retirement System (MTRS), a cost-sharing multi- employer defined benefit plan. MTRS is managed by the Commonwealth of Massachusetts (Commonwealth) on behalf of municipal teachers and municipal teacher retirees. The Commonwealth is a nonemployer contributor and is responsible for 100% of the contributions and future benefit requirements of the MTRS. The MTRS covers certified teachers in cities (except Boston), towns, regional school districts, charter schools, educational collaboratives and Quincy College. The MTRS is part of the Commonwealth’s reporting entity and the audited financial report may be obtained by visiting http://www.mass.gov/osc/publications-and-reports/financial-reports/. Special Funding Situation The Commonwealth is a nonemployer contributor and is required by statute to make 100% of all actuarially determined employer contributions on behalf of the Town to 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 and the Commonwealth is a nonemployer contributor in MTRS. Since the Town does not contribute directly to MTRS, there is no net pension liability to recognize. The total of the Commonwealth provided contributions have been allocated based on each employer’s covered payroll to the total covered payroll of employers in MTRS as of the measurement date of June 30, 2017. The Town’s portion of the collective pension expense, contributed by the Commonwealth, of $4,433,521 is reported in the general fund as intergovernmental revenue and pension expense in the current fiscal year. The portion of the Commonwealth’s collective net pension liability associated with the Town is $42,477,695 as of the measurement date. Benefits Provided Both Systems provide retirement, disability, survivor and death benefits to plan members and beneficiaries. Massachusetts Contributory Retirement System benefits are, with certain minor exceptions, uniform from system to system. The System provides for retirement allowance benefits up to a maximum of 80% of a member's highest three-year average annual rate of regular compensation. For persons who became members on or after April 2, 2012, average salary is the average annual rate of regular compensation received during the five consecutive years that produce the highest average, or, if greater, during the last five years (whether or not consecutive) preceding retirement. Benefit payments are based upon a member's age, length of creditable service, level of compensation, and group classification. Members become vested after ten years of creditable service. There were no changes in benefit terms that affected the measurement of the total pension liability at December 31, 2017. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 66 Comprehensive Annual Financial Report Employees who resign from service and who are not eligible to receive a retirement allowance or are under the age of 55 are entitled to request a refund of their accumulated total deductions. Survivor benefits are extended to eligible beneficiaries of members whose death occurs prior to or following retirement. Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth’s state law during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living adjustments granted after 1997 must be approved by the Board and are borne by the System. Contributions Chapter 32 of the MGL governs the contributions of plan members and member units. Active plan members are required to contribute to the System at rates ranging from 5% to 9% of gross regular compensation with an additional 2% contribution required for compensation exceeding $30,000. The percentage rate is keyed to the date upon which an employee's membership commences. The member units are required to pay into the ERRS a legislatively mandated actuarial determined contribution that is apportioned among the employers based on active current payroll. The Town’s proportionate share of the required contribution equaled its actual contribution for the year ended December 31, 2017, was $2,296,320, (23.70%) of covered payroll, actuarially determined as an amount that, when combined with plan member contributions, is expected to finance the costs of benefits earned by plan members during the year, with an additional amount to finance any unfunded accrued liability. Pension Liabilities At June 30, 2018, the Town reported a liability of $19,838,478 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2018. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of contributions to the pension plan relative to the projected contributions of all participating members. At December 31, 2017, the Town’s proportion was 3.59%, a decrease compared to its 3.66% proportion as of December 31, 2016. Pension Expense For the year ended June 30, 2018, the Town recognized pension expense of $2,433,185. At June 30, 2018, the Town reported deferred outflows of resources related to pensions of $3,847,600 and deferred inflows of resources related to pensions of $1,716,740. The balances of deferred outflows and inflows related to pensions at June 30, 2018, consist of the following: Deferred Deferred Outflows of Inflows of Deferred Category Resources Resources Total Differences between expected and actual experience…………………$1,891,209 $- $1,891,209 Difference between projected and actual earnings…………………… - (612,787) (612,787) Changes in assumptions………………………………………………… 994,706 (800,105) 194,601 Changes in proportion and proportionate share of contributions……… 961,685 (303,848) 657,837 Total deferred outflows/(inflows) of resources…………………………$3,847,600 $(1,716,740) $2,130,860 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 67 Comprehensive Annual Financial Report The Town’s net deferred outflows/(inflows) of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2019……………………………………………………………$960,927 2020…………………………………………………………… 839,254 2021…………………………………………………………… 554,521 2022…………………………………………………………… (223,842) $2,130,860 Actuarial Assumptions The total pension liability in the January 1, 2018, actuarial valuation was determined using the following actuarial methods and assumptions, applied to all periods including the measurement date that was updated through December 31, 2017: Valuation date…………………………………… January 1, 2018 Actuarial cost method…………………………… Individual Entry Age Normal Cost Method. Asset valuation method………………………… Market value. Investment rate of return……………………… 7.75% Discount rate…………………………………… 7.75% Inflation rate……………………………………… 3.00% Projected salary increases…………………… 3.50% - 5.50% Cost of living adjustments……………………… 3.0% of first $17,000 of retirement income. Mortality rates…………………………………… It is assumed that both pre-retirement and beneficiary mortality is presented by the RP-2014, fully generational. Mortality for retired members for Group 1 and 2 is represented by the RP-2014 Blue Collar Mortality table set forward five years for males and 3 years for females, fully generational. Mortality for retired members for Group 4 is represented by the RP-2014 Blue Collar Morality Table set forward three years for males, and six years for females, fully generational. Mortality for disabled members for Group 1 and 2 is represented by the RP-2000 Mortality Table set forward six years. Mortality for disabled members for Group 4 is represented by the RP-2000 Mortality Table set forward two years. Generational adjusting is based on Scale MP-2014. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 68 Comprehensive Annual Financial Report Investment policy The pension plan’s policy in regard to the allocation of invested assets is established and may be amended by the Board. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the pension plan. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of January 1, 2018, are summarized in the following table: Long-Term Expected Long-Term Expected Asset Class Asset Allocation Real Rate of Return Domestic equities…………………………… 32.00%8.80% International equities………………………… 17.50%8.80% Fixed income………………………………… 19.00%3.60% Real estate…………………………………… 9.00%7.40% Private equity………………………………… 8.50%13.30% Hedge funds………………………………… 9.00%7.40% Real assets…………………………………… 5.00%10.40% Total…………………………………………… 100.00% Rate of return For the year ended December 31, 2017, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 14.81%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. Discount rate The discount rate used to measure the total pension liability was 7.75%. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made at the current contribution rate and that contributions will be made at rates equal to the actuarially determined contribution rated. Based on those assumptions, the pension plan’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. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 69 Comprehensive Annual Financial Report Sensitivity of the net position liability to changes in the discount rate The following presents the net position liability, calculated using the discount rate of 7.75%, as well as what the net position liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.75%) or 1-percentage-point higher (8.75%) than the current rate: Current 1% Decrease Discount 1% Increase (6.75%)(7.75%)(8.75%) The Town's proportionate share of the net pension liability…………………………$25,672,951 $19,838,478 $14,882,054 Changes in Assumptions The January 1, 2018, actuarial valuation included a 7.75% discount rate, a decrease from 8.00% from the prior year. Changes in Plan Provisions None. NOTE 12 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description – The Town of Cohasset administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The plan provides health, dental and life insurance for eligible retirees and their spouses through a single-employer defined Other Postemployment Benefit (OPEB) plan. Chapter 32B of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the Town and the unions representing Town employees and are renegotiated each bargaining period. The Retiree Health Plan does not issue a publicly available financial report. Funding Policy – The contribution requirements of plan members and the Town are established and may be amended by the Town. The required contribution is based on a pay-as-you-go financing requirement. The Town contributes between 50 - 90 percent of the cost of current-year premiums for eligible retired plan members and their spouses. Plan members receiving benefits contribute the remaining percentage of their premium costs. For 2018, the Town’s age-adjusted contribution to the plan totaled $2.0 million. The Town’s average contribution rate was 8.72% of covered-employee payroll. The Commonwealth of Massachusetts passed special legislation that has allowed the Town to establish a postemployment benefit trust fund and to enable the Town to begin pre-funding its other postemployment benefit (OPEB) liabilities. During 2018, the Town pre-funded future OPEB liabilities by contributing $350,000 to the Other Postemployment Benefit Fund in excess of the pay-as-you-go required contribution. These funds are reporting within the Fiduciary Funds financial statements. As of June 30, 2018, the balance of this fund totaled $2.7 million. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 70 Comprehensive Annual Financial Report Employees Covered by Benefit Terms – The following table represents the Plan’s membership at June 30, 2018: Active members………………………………………………… 369 Inactive members currently receiving benefits……………… 186 Total……………………………………………………………… 555 Components of OPEB Liability – The following table represents the components of the Plan’s OPEB liability as of June 30, 2018: Total OPEB liability……………………………………$45,034,478 Less: OPEB plan's fiduciary net position…………… (2,679,940) Net OPEB liability………………………………………$42,354,538 The OPEB plan's fiduciary net position as a percentage of the total OPEB liability……… 5.95% Significant Actuarial Methods and Assumptions – The total OPEB liability in the July 1, 2016, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified, that was updated to June 30, 2018: Valuation date…………………………………… July 1, 2016, rolled forward to the measurement date. Actuarial cost method…………………………… Individual entry age normal cost method. Amortization method - UAAL………………… Increasing at 3.5% over 30 years on an open amortization period. Asset valuation method………………………… Market value. Inflation rate……………………………………… 3.00% Healthcare cost trend rate……………………… 8.00% for 2016, decreasing one percent per year to an ultimate rate of 5.00%. Investment rate of return……………………… 7.50% compounded annually, net of fees. Discount rate…………………………………… 3.95% compounded annually, for the measurement as of June 30, 2018. Municipal bond rate…………………………… 3.87%, based on the Bond Buyer 20-Bond Go Index published on June 28, 2018 Inflation rate……………………………………… 3.00% per year. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 71 Comprehensive Annual Financial Report Payroll growth…………………………………… 4% per year. Pre-retirement mortality - town………………… RP-2000 Employees Mortality Table, base year 2009, projected with generational mortality improvement using scale BB. Post-retirement mortality - town……………… RP-2000 Healthy Annuitant Mortality Table, base year 2009, projected with generational mortality improvement using scale BB. Pre-retirement mortality - teachers…………… RP-2014 Employees Mortality Table, base year 2014, projected with generational mortality improvement using scale BB. Rate of return – For the year ended June 30, 2018, the annual money-weighted rate of return on investments, net of investment expense, was 7.67%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 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 rates of return (expected returns, net of investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return of by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation and subtracting expected investment expenses and a risk margin. The target allocation as of June 30, 2018, and projected arithmetic real rates of return for each major asset class, after deducting inflation, but before investment expenses, used in the derivation of the long-term expected investment rate of return assumption are summarized below: Long-Term Expected Long-Term Expected Asset Class Asset Allocation Real Rate of Return Equities.……………………………………… 47.00%5.42% Fixed Income………………………………… 24.00%3.43% Alternatives…………………………………… 16.00%7.68% Real Estate…………………………………… 5.00%4.70% Timberland…………………………………… 2.00%4.25% Portfolio Completion Strategies…………… 6.00%4.54% Total…………………………………………… 100.00% Discount rate – The discount rate used to measure the total OPEB liability was 3.95% as of June 30, 2018. The projection of cash flows used to determine the discount rate assumed that contributions will be made in accordance with the Plan’s funding policy. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be insufficient to make all projected benefit payments to current plan members. Therefore the long-term expected rate of return on the OPEB plan assets was applied to the first seven period of projected future benefit payments, and the 3.87% municipal bond rate, based on the Bond Buyer 20-Bond Go Index published on June 28, 2018, was applied to all periods thereafter to determine the total OPEB liability. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 72 Comprehensive Annual Financial Report Changes in the Net OPEB Liability Plan Total OPEB Fiduciary Net OPEB Liability Net Position Liability (a)(b)(a) - (b) Balances at June 30, 2017………………………………………………$43,319,487 $2,158,712 $41,160,775 Changes for the year: Service cost………………………………………………………… 2,077,992 - 2,077,992 Interest……………………………………………………………… 1,733,467 - 1,733,467 Changes of benefit terms…………………………………………… (3,333) - (3,333) Differences between expected and actual experience………… - - - Changes of assumptions…………………………………………… (422,437) - (422,437) Benefit payments…………………………………………………… (1,670,698) (1,670,698) - Employer contributions……………………………………………… - 350,000 (350,000) Employer contributions to pay OPEB benefits…………………… - 1,670,698 (1,670,698) Net investment income……………………………………………… - 171,228 (171,228) Net change……………………………………………………… 1,714,991 521,228 1,193,763 Balances at June 30, 2018………………………………………………$45,034,478 $2,679,940 $42,354,538 Increase (Decrease) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate – The following table presents the net OPEB liability, calculated using the discount rate of 3.95%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.95%) or 1-percentage-point higher (4.95%) than the current rate. Current 1% Decrease Discount Rate 1% Increase (2.95%)(3.95%)(4.95%) Net OPEB liability……………………………$50,260,338 $42,354,538 $36,117,541 Sensitivity of the Net OPEB Liability to Changes in the Healthcare Trend – The following table presents the net OPEB liability, calculated using the current healthcare trend rate of 8% initially, decreasing 1% per year to an ultimate rate of 5%, as well as what the net OPEB liability would be if it were calculated using a healthcare trend rate that is 1-percentage-point lower or 1-percentage-point higher. 1% Decrease Current Trend 1% Increase Net OPEB liability……………………………$34,441,866 $42,354,538 $53,350,980 Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 73 Comprehensive Annual Financial Report OPEB Expense and Deferred Outflows of Resources Related to OPEB – For the financial reporting year ended June 30, 2018, the Town recognized OPEB expense of $3,572,007 and reported deferred outflows/(inflows) of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Deferred Category Resources Resources Total Difference between projected and actual earnings……………………$3,041 $- $3,041 Changes in assumptions………………………………………………… - (360,587) (360,587) Total deferred outflows/(inflows) of resources…………………………$3,041 $(360,587) $(357,546) Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Reporting year ended June 30: 2019……………………………………………………………$(61,090) 2020…………………………………………………………… (61,090) 2021…………………………………………………………… (61,090) 2022…………………………………………………………… (61,090) 2023…………………………………………………………… (61,090) Thereafter……………………………………………………… (52,096) Total……………………………………………………………$(357,546) Changes of Assumptions The discount rate was increased to 3.95%, a change from the previous discount rate of 3.89% Changes in Plan Provisions The Patient Protection and Affordable Care Act (PPACA) applies a 40% excise tax, commonly referred to as the “Cadillac Tax”, to the cost of plan benefits in excess of statutory thresholds beginning in 2022. NOTE 13 – LANDFILL CLOSURE State and federal laws and regulations require the Town to construct a final capping system on its landfill site when it stops accepting waste and to perform certain maintenance and monitoring functions at the site after closure. The Town closed and capped its landfill in 1997. The Town has reflected a $159,726 post-closure care liability at June 30, 2018, as an obligation of governmental funds. This amount is based upon estimates of what it would cost to perform all post-closure care. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. Its cost was estimated based on annual sampling for the current monitoring network at the site and estimated costs to maintain the integrity of the landfill cap during the post-closure period. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 74 Comprehensive Annual Financial Report NOTE 14 – CONTINGENCIES The Town participates in a number of federal award programs. Although the grant programs have been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30, 2018, these programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although it is expected such amounts, if any, to be immaterial. Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not always predictable. Although the amount of liability, if any, at June 30, 2018, cannot be ascertained, management believes any resulting liability should not materially affect the financial position at June 30, 2018. NOTE 15 – REVISION OF PREVIOUSLY REPORTED NET POSITION The Town implemented GASB Statement No.75 during 2018 which resulted in the revision of net position previously reported in governmental and enterprise funds. These revisions included reporting the Net OPEB liability and deferred outflows of resources related to OPEB at the beginning of the period. The following table details the effect of the net position revisions: 06/30/2017 Previously 06/30/2017 Reported Implementation Revised Balances of GASB #75 Balances Government-Wide Financial Statements Governmental activities………………………………$42,973,083 $(29,347,686) $13,625,397 Business-type activities……………………………… 40,943,348 (74,164) 40,869,184 Total……………………………………………………$83,916,431 $(29,421,850) $54,494,581 Business-type Activities - Enterprise Funds Water enterprise fund…………………………………$12,802,142 $- $12,802,142 Sewer enterprise fund………………………………… 28,141,206 (74,164) 28,067,042 Total……………………………………………………$40,943,348 $(74,164) $40,869,184 NOTE 16 – SUBSEQUENT EVENTS Management has evaluated subsequent events through December 21, 2018, which is the date the financial statements were available to be issued. Notes to Basic Financial Statements Year Ended June 30, 2018 Town of Cohasset, Massachusetts 75 Comprehensive Annual Financial Report NOTE 17 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS During 2018, the following GASB pronouncements were implemented: • GASB Statement #75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. The basic financial statements, related notes and required supplementary information were updated to be in compliance with this pronouncement. • GASB Statement #81, Irrevocable Split-Interest Agreements. This pronouncement did not impact the basic financial statements. • GASB Statement #85, Omnibus 2017. This pronouncement did not impact the basic financial statements. • GASB Statement #86, Certain Debt Extinguishment Issues. This pronouncement did not impact the basic financial statements. The following GASB pronouncements will be implemented in the future: • The GASB issued Statement #83, Certain Asset Retirement Obligations, which is required to be implemented in 2019. • The GASB issued Statement #84, Fiduciary Activities, which is required to be implemented in 2019. • The GASB issued Statement #87, Leases, which is required to be implemented in 2021. • The GASB issued Statement #88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements, which is required to be implemented in 2019. • The GASB issued Statement #89, Accounting for Interest Cost Incurred before the End of a Construction Period, which is required to be implemented in 2021. • The GASB issued Statement #90, Majority Equity Interests – an amendment of GASB Statements #14 and #61, which is required to be implemented in 2019. Management is currently assessing the impact the implementation of these pronouncements will have on the basic financial statements. Town of Cohasset, Massachusetts 76 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 77 Comprehensive Annual Financial Report Required Supplementary Information Town of Cohasset, Massachusetts 78 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 79 Comprehensive Annual Financial Report General Fund Budgetary Comparison Schedule The General Fund is the general operating fund of the Town. It is used to account for the entire Town’s financial resources, except those required to be accounted for in another fund. General Fund Budgetary Comparison Schedule Town of Cohasset, Massachusetts 80 Comprehensive Annual Financial Report GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2018 Actual Amounts Variance Original Final Budgetary Carried Forward to Final Budget Budget Amounts To Next Year Budget REVENUES: Real estate and personal property taxes, net of tax refunds……………………………………$37,221,745 $37,221,745 $37,397,945 $- $176,200 Motor vehicle and other excise taxes………………… 1,412,150 1,412,150 1,874,827 - 462,677 Penalties and interest on taxes………………………… 127,498 127,498 142,746 - 15,248 Fees and rentals………………………………………… 878,513 878,513 878,864 - 351 Licenses and permits…………………………………… 637,000 637,000 764,347 - 127,347 Fines and forfeitures…………………………………… 25,000 25,000 20,530 - (4,470) Intergovernmental…………………………...………… 3,175,056 3,175,056 3,257,767 - 82,711 Departmental and other………………………………… 169,203 169,203 189,523 - 20,320 Special assessments…………………………………… 347,597 347,597 358,065 - 10,468 Investment income……………………………………… 40,000 40,000 93,439 - 53,439 TOTAL REVENUES……………………… 44,033,762 44,033,762 44,978,053 - 944,291 EXPENDITURES: Current: ADMINISTRATIVE SERVICES Town Moderator……………………………………… 500 500 - - 500 Board of Selectmen………………………………… 217,487 217,487 156,177 28,803 32,507 Town Manager……………………………………… 579,051 489,051 333,773 100,815 54,463 Human Resource Management…………………… 150,131 130,131 123,964 791 5,376 School Support Officer……………………………… 100,000 60,000 50,479 - 9,521 Advisory Committee………………………………… 360 360 180 - 180 Reserve Fund………………………………………… 225,000 - - - - Director of Finance………………………………… 256,986 244,986 226,927 - 18,059 Board of Assessors………………………………… 231,118 191,118 183,161 - 7,957 Treasurer/Collector………………………………… 319,675 327,875 323,248 1,228 3,399 Legal Services……………………………………… 153,143 228,143 173,183 48,823 6,137 Chief Technology Office…………………………… 529,370 534,370 507,157 19,560 7,653 Town Technology…………………………………… 107,124 107,124 67,681 23,446 15,997 Town Clerk…………………………………………… 159,115 165,815 162,813 39 2,963 Permits & Inspections……………………………… 344,949 274,949 166,433 99,163 9,353 Unclassified………………………………………… 416,240 416,240 413,286 - 2,954 Total Administrative services…………………………… 3,790,249 3,388,149 2,888,462 322,668 177,019 PUBLIC SAFETY Police………………………………………………… 2,409,956 2,578,956 2,572,293 - 6,663 Fire…………………………………………………… 2,443,411 2,548,430 2,503,388 17,669 27,373 Building Commissioner……………………………… 152,815 152,815 137,338 624 14,853 Emergency Management…………………………… 42,225 42,225 36,318 767 5,140 Harbormaster………………………………………… 122,782 127,782 123,524 1,287 2,971 Shellfish Constable………………………………… 475 475 475 - - Total Public Safety……………………………………… 5,171,664 5,450,683 5,373,336 20,347 57,000 EDUCATION Cohasset Schools…………………………………… 19,168,314 19,176,313 18,866,087 253,278 56,948 South Shore Vocational…………………………… 86,158 69,116 68,633 - 483 Total Education………………………………………… 19,254,472 19,245,429 18,934,720 253,278 57,431 PUBLIC WORKS Department of Public Works……………………… 1,239,996 1,529,994 1,315,129 193,869 20,996 Snow & Ice Removal………………………………… 125,000 227,036 227,036 - - Street Lighting……………………………………… 59,839 60,839 58,839 - 2,000 Transfer Station……………………………………… 474,398 484,398 471,789 7,724 4,885 Facilities Management……………………………… 958,953 953,980 856,776 19,141 78,063 Total Public Works……………………………………… 2,858,186 3,256,247 2,929,569 220,734 105,944 HEALTH & WELFARE Board of Health……………………………………… 164,872 117,372 107,814 - 9,558 Elder Affairs………………………………………… 287,690 287,690 275,600 4,629 7,461 Veterans Services…………………………………… 141,657 141,657 114,362 - 27,295 Total Health & Welfare………………………………… 594,219 546,719 497,776 4,629 44,314 (Continued) Budgeted Amounts Town of Cohasset, Massachusetts 81 Comprehensive Annual Financial Report GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2018 Actual Amounts Variance Original Final Budgetary Carried Forward to Final Budget Budget Amounts To Next Year Budget Budgeted Amounts CULTURE AND RECREATION Library………………………………………………… 645,723 645,723 625,099 1,500 19,124 Recreation…………………………………………… 130,760 131,760 130,786 - 974 Common Historical Commission…………………… 500 500 - - 500 Historical Preservation……………………………… 600 600 600 - - Total Culture and Recreation………………………… 777,583 778,583 756,485 1,500 20,598 DEBT SERVICE Principal……………………………………………… 2,735,585 2,735,585 2,735,585 - - Interest……………………………………………… 342,395 355,705 355,705 - - Total Debt Service……………………………………… 3,077,980 3,091,290 3,091,290 - - BENEFITS & INSURANCE Pension Assessment……………………………… 2,296,320 2,296,320 2,296,320 - - Workers Compensation…………………………… 198,000 205,582 205,582 - - Unemployment……………………………………… 5,000 5,000 2,619 - 2,381 Health Insurance…………………………………… 5,505,527 5,505,527 5,389,781 - 115,746 Life Insurance………………………………………… 9,933 9,933 7,236 - 2,697 Medicare Tax………………………………………… 317,334 345,868 333,020 - 12,848 Property & Liability Insurance……………………… 326,428 326,428 295,397 - 31,031 Total Benefits & Insurance…………………………… 8,658,542 8,694,658 8,529,955 - 164,703 State and County Assessment………………………… 391,636 391,636 431,545 - (39,909) TOTAL EXPENDITURES……………………… 44,574,531 44,843,394 43,433,138 823,156 587,100 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES…………………… (540,769) (809,632) 1,544,915 (823,156) 1,531,391 OTHER FINANCING SOURCES (USES): Transfers in……………………………………………… 807,487 807,487 807,487 - - Transfers out…………………………………………… (1,095,000) (1,745,000) (1,745,000) - - TOTAL OTHER FINANCING SOURCES (USES)…………………… (287,513) (937,513) (937,513) - - NET CHANGE IN FUND BALANCE……………………… (828,282) (1,747,145) 607,402 (823,156) 1,531,391 BUDGETARY FUND BALANCE, Beginning of year…… 2,448,217 2,448,217 2,448,217 - - BUDGETARY FUND BALANCE, End of year……………$1,619,935 $701,072 $3,055,619 $(823,156) $1,531,391 See notes to required supplementary information.(Concluded) Town of Cohasset, Massachusetts 82 Comprehensive Annual Financial Report Pension Plan Schedules - Town The Schedule of the Town’s Proportionate Share of the Net Pension Liability presents multi-year trend information on the Town’s net pension liability and related ratios. The Schedule of Town Contributions presents multi-year trend information on the Town’s required and actual contributions to the pension plan and related ratios. The Schedule of the Special Funding Amounts of the Net Pension Liability for the Massachusetts Teachers Contributory Retirement System presents multi-year trend information on the liability and expense assumed by the Commonwealth of Massachusetts on behalf of the Town along with related ratios. These schedules are intended to present information for ten years. Until a ten year trend is compiled, information is presented for those years for which information is available. Pension Plan Schedules Town of Cohasset, Massachusetts 83 Comprehensive Annual Financial Report Net pension Plan fiduciary Proportionate liability as a net position as Proportion of share of the percentage of a percentage of the net pension net pension Covered covered the total Year liability (asset)liability (asset)payroll payroll pension liability December 31, 2017………… 3.59%$19,838,478 $9,688,873 204.76%63.50% December 31, 2016………… 3.66% 19,122,211 10,142,562 188.53%61.60% December 31, 2015………… 3.66% 19,898,650 9,836,750 202.29%58.60% December 31, 2014………… 3.30% 17,115,594 8,086,454 211.66%60.10% Note: this schedule is intended to present information for 10 years. Until a 10-year trend is compiled, information is presented for those years for which information is available. See notes to required supplementary information. SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY NORFOLK COUNTY CONTRIBUTORY RETIREMENT SYSTEM Town of Cohasset, Massachusetts 84 Comprehensive Annual Financial Report Contributions in relation to the Contributions as Actuarially actuarially Contribution a percentage of determined determined deficiency Covered covered Year contribution contribution (excess)payroll payroll June 30, 2018…………………$2,296,320 $(2,296,320) $- $9,688,873 23.70% June 30, 2017………………… 1,880,030 (1,880,030) - 10,142,562 18.54% June 30, 2016………………… 1,706,914 (1,706,914) - 9,836,750 17.35% June 30, 2015………………… 1,596,748 (1,596,748) - 8,086,454 19.75% Note: this schedule is intended to present information for 10 years. Until a 10-year trend is compiled, information is presented for those years for which information is available. See notes to required supplementary information. SCHEDULE OF THE TOWN'S CONTRIBUTIONS NORFOLK COUNTY CONTRIBUTORY RETIREMENT SYTEM Town of Cohasset, Massachusetts 85 Comprehensive Annual Financial Report Year Commonwealth's 100% Share of the Associated Net Pension Liability Expense and Revenue Recognized for the Commonwealth's Support Plan Fiduciary Net Position as a Percentage of the Total Liability 2018…………………………………$42,477,695 $4,433,521 54.25% 2017………………………………… 41,948,409 4,279,013 52.73% 2016………………………………… 38,868,017 3,152,542 55.38% 2015………………………………… 29,555,851 2,053,387 61.64% Note: this schedule is intended to present information for 10 years. Until a 10-year trend is compiled, information is presented for those years for which information is available. See notes to required supplementary information. SCHEDULE OF THE SPECIAL FUNDING AMOUNTS OF THE NET PENSION LIABILITY MASSACHUSETTS TEACHERS' RETIREMENT SYSTEM The Commonwealth of Massachusetts is a nonemployer contributor and is required by statute to make all actuarially determined employer contributions on behalf of the member employers which creates a special funding situation. Therefore, there is no net pension liability to recognize. This schedule discloses the Commonwealth's 100% share of the associated collective net pension liability; the portion of the collective pension expense as both a revenue and pension expense recognized; and the Plan's fiduciary net position as a percentage of the total liability. Town of Cohasset, Massachusetts 86 Comprehensive Annual Financial Report Other Postemployment Benefits Plan Schedules The Schedule of Changes in the Town’s Net Other Postemployment Benefit Liability and Related Ratios presents multi-year trend information on changes in the Plan’s total OPEB liability, changes in the Plan’s net position, and ending net OPEB liability. It also demonstrates the Plan’s net position as a percentage of the total liability and the Plan’s net other postemployment benefit liability as a percentage of covered employee payroll. The Schedule of the Town’s Contributions presents multi-year trend information on the Town’s actual contributions to the other postemployment benefit plan and related ratios. The Schedule of Investment Return presents multi-year trend information on the money-weighted investment return on other postemployment assets, net of investment expense. These schedules are intended to present information for ten years. Until a ten year trend is compiled, information is presented for those years for which information is available. Other Postemployment Benefits Plan Schedules Town of Cohasset, Massachusetts 87 Comprehensive Annual Financial Report June 30,June 30, 2017 2018 Total OPEB Liability Service Cost…………………………………………………$2,645,732 $2,077,991 Interest………………………………………………………… 1,441,497 1,733,467 Changes of benefit terms…………………………………… - (3,333) Differences between expected and actual experience… - - Changes of assumptions…………………………………… (7,930,903) (422,437) Benefit payments…………………………………………… (1,539,864) (1,670,698) Net change in total OPEB liability…………………………… (5,383,538) 1,714,990 Total OPEB liability - beginning……………………………..… 48,703,025 43,319,487 Total OPEB liability - ending (a)………………………………$43,319,487 $45,034,477 Plan fiduciary net position Employer contributions……………………………..………$475,000 $350,000 Employer contributions for OPEB payments……………… 1,539,864 1,670,698 Net investment income………………………...…………… 191,237 171,228 Benefit payments……………………………...…………… (1,539,864) (1,670,698) Net change in plan fiduciary net position…………………… 666,237 521,228 Plan fiduciary net position - beginning of year……………… 1,492,475 2,158,712 Plan fiduciary net position - end of year (b)…………………$2,158,712 $2,679,940 Net OPEB liability - ending (a)-(b)…………………………$41,160,775 $42,354,537 Plan fiduciary net position as a percentage of the total OPEB liability………………………..…………… 4.98% 5.95% Covered-employee payroll………………………………..……$21,581,455 $23,163,230 Net OPEB liability as a percentage of covered-employee payroll…………………………..… 190.72% 182.85% Note: this schedule is intended to present information for 10 years. Until a 10-year trend is compiled, information is presented for those years for which information is available. See notes to required supplementary information. SCHEDULE OF CHANGES IN THE TOWN'S NET OPEB LIABILITY AND RELATED RATIOS OTHER POSTEMPLOYMENT BENEFIT PLAN Town of Cohasset, Massachusetts 88 Comprehensive Annual Financial Report Contributions in relation to the Contributions as Actuarially actuarially Contribution a percentage of determined determined deficiency Covered-covered- Year contribution contribution (excess)employee payroll employee payroll June 30, 2018………………$3,663,467 $(2,020,698) $1,642,769 $23,163,230 8.72% June 30, 2017……………… 2,676,614 (2,014,864) 661,750 21,581,455 9.34% Note: this schedule is intended to present information for 10 years. Until a 10-year trend is compiled, information is presented for those years for which information is available. See notes to required supplementary information. SCHEDULE OF THE TOWN'S CONTRIBUTIONS OTHER POSTEMPLOYMENT BENEFIT PLAN Town of Cohasset, Massachusetts 89 Comprehensive Annual Financial Report Annual money-weighted rate of return, Year net of investment expense June 30, 2018…………………………… 7.67% June 30, 2017…………………………… 10.20% Note: this schedule is intended to present information for 10 years. Until a 10-year trend is compiled, information is presented for those years for which information is available. See notes to required supplementary information. SCHEDULE OF INVESTMENT RETURNS OTHER POSTEMPLOYMENT BENEFIT PLAN Notes to Required Supplementary Information Year Ended June 30, 2018 Town of Cohasset, Massachusetts 90 Comprehensive Annual Financial Report NOTE A – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Notes to Required Supplementary Information A. Budgetary Information Municipal Law requires the adoption of a balanced budget that is approved by the Advisory Committee (Committee). The Committee presents an annual budget to the Open Town Meeting, which includes estimates of revenues and other financing sources and recommendations of expenditures and other financing uses. The Town, which has full authority to amend and/or reject the budget or any line item, adopts the expenditure budget by majority vote. Increases or transfers between departments subsequent to the approval of the annual budget, requires majority vote at a Special Town Meeting. The majority of appropriations are non-continuing which lapse at the end of each year. Others are continuing appropriations for which the governing body has authorized that an unspent balance from a prior year be carried forward and made available for spending in the current year. These carry forwards are included as part of the subsequent year’s original budget. Generally, expenditures may not exceed the legal level of spending (departmental) authorized for an appropriation account. However, the payment of debt service is statutorily required, regardless of whether such amounts are appropriated. Additionally, expenditures for disasters, natural or otherwise, and final claims and judgments may exceed the level of spending authorized by majority vote at a Special Town Meeting. An annual budget is adopted for the general fund in conformity with the guidelines described above. The original 2018 approved budget authorized $44.8 million in appropriations and other amounts to be raised. During 2018, $919,000 of supplemental appropriations were approved primarily for transfers to stabilization, as well as other one-time costs. The Finance Director/Town Accountant’s office has the responsibility to ensure that budgetary control is maintained. Budgetary control is exercised through the accounting system. B. Budgetary - GAAP Reconciliation For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the year ended June 30, 2018, is presented below: Net change in fund balance - budgetary basis…………………………………$607,402 Perspective differences: Activity of the stabilization fund recorded in the general fund for GAAP…………………………………………………… 385,789 Basis of accounting differences: Net change in recording 60 day receipts…………………………………… (50,457) Recognition of revenue for on-behalf payments………………………… 4,433,521 Recognition of expenditures for on-behalf payments…………………… (4,433,521) Net change in fund balance - GAAP basis……………………………………$942,734 Notes to Required Supplementary Information Year Ended June 30, 2018 Town of Cohasset, Massachusetts 91 Comprehensive Annual Financial Report C. Appropriation Deficits Expenditures exceeded appropriations for state and county assessments. State and county assessments are based on state assessments which are not required to be raised. NOTE B – PENSION PLAN Pension Plan Schedules A. Schedule of the Town’s Proportionate Share of the Net Pension Liability The Schedule of the Town’s Proportionate Share of the Net Pension Liability details the allocated percentage of the net pension liability (asset), the proportionate share of the net pension liability, and the covered employee payroll. It also demonstrates the net position as a percentage of the pension liability and the net pension liability as a percentage of covered payroll. B. Schedule of Town’s Contributions Governmental employers are required to pay an annual appropriation as established by PERAC. The appropriation includes the amounts to pay the pension portion of each member’s retirement allowance, an amount to amortize the actuarially determined unfunded liability to zero in accordance with the system’s funding schedule, and additional appropriations in accordance with adopted early retirement incentive programs. The appropriations are payable on July 1 and January 1. The Town may choose to pay the entire appropriation in July at a discounted rate. Accordingly, actual contributions may be less than the “total appropriation”. The pension fund appropriation is allocated to the Town based on covered payroll. C. Schedule of the Special Funding Amounts of the Net Pension Liabilities The Commonwealth of Massachusetts is a nonemployer contributor and is required by statute to make all actuarially determined employer contributions on behalf of the member employers which creates a special funding situation. Since the Town does not contribute directly to MTRS, there is no net pension liability to recognize. This schedule discloses the Commonwealth's 100% share of the collective net pension liability that is associated with the Town; the portion of the collective pension expense as both a revenue and pension expense recognized by the Town; and the Plan's fiduciary net position as a percentage of the total liability. D. Changes in Assumptions The January 1, 2018, actuarial valuation included a 7.75% assumed rate of return on Plan investments; this is a decrease from the 8.00% assumed rate included in the prior valuation. Additionally, the cost of living increase assumption was changed to 3.0% of the first $17,000 of retirement income; the base in the prior valuation was $15,000. E. Changes in Plan Provisions None. Notes to Required Supplementary Information Year Ended June 30, 2018 Town of Cohasset, Massachusetts 92 Comprehensive Annual Financial Report NOTE C – OTHER POSTEMPLOYMENT BENEFITS The Town administers a single-employer defined benefit healthcare plan (“the Plan”). The plan provides lifetime healthcare for eligible retirees and their spouses through the Town’s health insurance plan, which covers both active and retired members, including teachers. The Other Postemployment Benefit Plan The Schedule of Changes in the Town’s Net Other Postemployment Benefit Liability and Related Ratios The Schedule of Changes in the Town’s Net Other Postemployment Benefit Liability and Related Ratios presents multi-year trend information on changes in the Plan’s total OPEB liability, changes in the Plan’s net position, and ending net OPEB liability. It also demonstrates the Plan’s net position as a percentage of the total liability and the Plan’s net other postemployment benefit liability as a percentage of covered-employee payroll. Schedule of the Town’s Contributions The Schedule of the Town’s Contributions includes the Town’s annual required contribution to the Plan, along with the contribution made in relation to the actuarially determined contribution and the covered-employee payroll. The Town is not required to fully fund this contribution. It also demonstrates the contributions as a percentage of covered-employee payroll. Methods and assumptions used to determine contribution rates are as follows: Valuation date…………………………………… July 1, 2016, rolled forward to the measurement date. Actuarial cost method…………………………… Individual entry age normal cost method. Amortization method - UAAL………………… Increasing at 3.5% over 30 years on an open amortization period. Asset valuation method………………………… Market value. Inflation rate……………………………………… 3.00% Healthcare cost trend rate……………………… 8.00% for 2016, decreasing one percent per year to an ultimate rate of 5.00%. Investment rate of return……………………… 7.50% compounded annually, net of fees. Discount rate…………………………………… 3.95% compounded annually, for the measurement as of June 30, 2018. Municipal bond rate…………………………… 3.87%, based on the Bond Buyer 20-Bond Go Index published on June 28, 2018 Inflation rate……………………………………… 3.00% per year. Notes to Required Supplementary Information Year Ended June 30, 2018 Town of Cohasset, Massachusetts 93 Comprehensive Annual Financial Report Payroll growth…………………………………… 4% per year. Pre-retirement mortality - town………………… RP-2000 Employees Mortality Table, base year 2009, projected with generational mortality improvement using scale BB. Post-retirement mortality - town……………… RP-2000 Healthy Annuitant Mortality Table, base year 2009, projected with generational mortality improvement using scale BB. Pre-retirement mortality - teachers…………… RP-2014 Employees Mortality Table, base year 2014, projected with generational mortality improvement using scale BB. Changes in Assumptions - The discount rate increased to 3.95% from 3.89% used in the prior year. Changes in Plan Provisions - The Patient Protection and Affordable Care Act (PPACA) applies a 40% excise tax, commonly referred to as the “Cadillac Tax”, to the cost of plan benefits in excess of statutory thresholds beginning in 2022. Schedule of Investment Returns The Schedule of Investment Returns includes the money-weighted investment return on the Plan’s other postemployment assets, net of investment expenses. Town of Cohasset, Massachusetts 94 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 95 Comprehensive Annual Financial Report Combining and Individual Fund Statements Combining and Individual Fund Statements Town of Cohasset, Massachusetts 96 Comprehensive Annual Financial Report Nonmajor Governmental Funds Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for the proceeds of specific revenue sources (other than permanent funds or capital project funds) that are restricted by law or administrative action to expenditures for specified purposes. The Town’s special revenue funds are grouped into the following categories: Town Grants – This fund accounts for all federal and state grants used for Town related projects and activities. School Grants – This fund is used to account for all federal and state grants used for school related projects and activities. Receipts Reserved for Appropriation – This fund is used to account for receipts from a specific revenue source that by law is accounted for separately from the general fund and must be spent by appropriation. MCWT Septic Loan Program – This fund is used to account for the activities related to septic loans issued to citizens, funded through the MCWT. Town Revolving Funds – This fund accounts for various Town operations such as insurance recoveries, and the law enforcement trust. School Revolving Fund – This fund accounts for school activity, such as transportation receipts, athletic receipts and tuition costs. School Lunch – This fund is used to account for all cafeteria activities and is funded by user charges, federal and state grants, and commodities received. Community Preservation – This fund is used to account for the 1.5% local real estate tax surcharge on nonexempt property (and matching state trust fund distribution) that can be used for open space, historic resource and affordable housing purposes. Property exempt from the surcharge consists of the first $100,000 of all residential property and also property owned by low income seniors with a low or moderate income as defined by Massachusetts Department of Revenue (DOR) guidelines. Disbursements from this fund must originate from the Community Preservation Committee and be approved by Town Meeting. Gifts and Donations – This fund is used to account for the activities of donated funds. Other Town Special Revenue Funds – This fund accounts for activities related to various Treasury bond premiums. Town of Cohasset, Massachusetts 97 Comprehensive Annual Financial Report Capital Project Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Chapter 90 – This fund accounts for roadway improvements for which expenditures are reimbursed 100% by the Commonwealth. Capital Projects Bonded – This fund is used to account for major Town and school capital acquisition and construction projects. These projects will be funded through the issuance of long-term bonds and notes. Capital Projects Non-Bonded – This fund is used to account for major Town and school capital acquisition and construction projects. These projects will be funded through available funds. 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. Library Trust Fund – This fund accounts for all endowment funds managed by the Treasurer and the Cohasset Library Trust, Inc., a blended component unit. The expendable portion of the endowment can only be spent to support the Paul Pratt Memorial Library. Other Trust Funds – These funds account for all contributions and bequests for which only earnings may be expended to benefit the government. Town of Cohasset, Massachusetts 98 Comprehensive Annual Financial Report Receipts MCWT Town Town School Reserved For Septic Loan Revolving Grants Grants Appropriation Program Funds ASSETS Cash and cash equivalents…………………………$575,686 $352,352 $1,097,178 $172,332 $1,040,791 Investments…………………………………………… - - - - - Receivables, net of uncollectibles: Tax liens……………………………………...…… - - - - - Departmental and other………………………… - - - - - Intergovernmental………………………………… - - - - - Special assessments…………………………… - - 761,129 - - TOTAL ASSETS………………………………………$575,686 $352,352 $1,858,307 $172,332 $1,040,791 LIABILITIES Warrants payable…………………………………$16,708 $45,182 $- $- $24,464 Accrued payroll…………………………………… 1,299 - - - 25,857 Due to other funds………………………………… - - - - - Notes payable…………………………………… - - - 150,000 - TOTAL LIABILITIES………………………………… 18,007 45,182 - 150,000 50,321 DEFERRED INFLOWS OF RESOURCES Unavailable revenue……………………………… - - 761,129 - - FUND BALANCES Nonspendable…………………………………… - - - - - Restricted………………………………………… 557,679 307,170 1,097,178 22,332 990,470 Unassigned………………………………………… - - - - - TOTAL FUND BALANCES………………………… 557,679 307,170 1,097,178 22,332 990,470 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES…………$575,686 $352,352 $1,858,307 $172,332 $1,040,791 NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2018 Special Revenue Funds Town of Cohasset, Massachusetts 99 Comprehensive Annual Financial Report School Other Revolving School Community Gifts and Town Special Funds Lunch Preservation Donations Revenue Funds Subtotal $529,035 $214,674 $3,105,182 $461,465 $3,892 $7,552,587 - - - 568,762 - 568,762 - - 9,783 - - 9,783 - - 3,704 - - 3,704 - - - - - - - - - - - 761,129 $529,035 $214,674 $3,118,669 $1,030,227 $3,892 $8,895,965 $3,243 $773 $195 $10,977 $- $101,542 5,793 2,083 - 302 - 35,334 - - - - - - - - - - - 150,000 9,036 2,856 195 11,279 - 286,876 - - 13,940 - - 775,069 - - - - - - 519,999 211,818 3,104,534 1,018,948 3,892 7,834,020 - - - - - - 519,999 211,818 3,104,534 1,018,948 3,892 7,834,020 $529,035 $214,674 $3,118,669 $1,030,227 $3,892 $8,895,965 (Continued) Special Revenue Funds Town of Cohasset, Massachusetts 100 Comprehensive Annual Financial Report Capital Projects Capital Projects Chapter 90 Bonded Non-Bonded Subtotal ASSETS Cash and cash equivalents…………………………$- $633,753 $1,152,309 $1,786,062 Investments…………………………………………… - - - - Receivables, net of uncollectibles: Tax liens……………………………………...…… - - - - Departmental and other………………………… - - - - Intergovernmental………………………………… 353,585 - - 353,585 Special assessments…………………………… - - - - TOTAL ASSETS………………………………………$353,585 $633,753 $1,152,309 $2,139,647 LIABILITIES Warrants payable…………………………………$- $12,122 $16,312 $28,434 Accrued payroll…………………………………… - - - - Due to other funds………………………………… 136,618 - - 136,618 Notes payable…………………………………… - 897,400 - 897,400 TOTAL LIABILITIES………………………………… 136,618 909,522 16,312 1,062,452 DEFERRED INFLOWS OF RESOURCES Unavailable revenue……………………………… 216,967 - - 216,967 FUND BALANCES Nonspendable…………………………………… - - - - Restricted………………………………………… - - 1,135,997 1,135,997 Unassigned………………………………………… - (275,769) - (275,769) TOTAL FUND BALANCES………………………… - (275,769) 1,135,997 860,228 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES…………$353,585 $633,753 $1,152,309 $2,139,647 Capital Project Funds NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2018 Town of Cohasset, Massachusetts 101 Comprehensive Annual Financial Report Total Nonmajor Library Other Governmental Trust Fund Trust Funds Subtotal Funds $77,650 $11,210 $88,860 $9,427,509 1,562,306 920,054 2,482,360 3,051,122 - - - 9,783 - - - 3,704 - - - 353,585 - - - 761,129 $1,639,956 $931,264 $2,571,220 $13,606,832 $- $- $- $129,976 - - - 35,334 - - - 136,618 - - - 1,047,400 - - - 1,349,328 - - - 992,036 234,614 207,911 442,525 442,525 1,405,342 723,353 2,128,695 11,098,712 - - - (275,769) 1,639,956 931,264 2,571,220 11,265,468 $1,639,956 $931,264 $2,571,220 $13,606,832 (Concluded) Permanent Funds Town of Cohasset, Massachusetts 102 Comprehensive Annual Financial Report Receipts MCWT Town Town School Reserved For Septic Loan Revolving Grants Grants Appropriation Program Funds REVENUES: Charges for services…………………………………………………$- $- $18,276 $- $926,495 Penalties and interest on taxes……………………………………… - - 292 - - Intergovernmental……………………………………………………… 418,256 1,118,296 - - - Departmental and other……………………………………………… - - 47,123 600 265,642 Community preservation state match……………………………… - - - - - Special assessments………………………………………………… - - 83,770 - - Contributions and donations………………………………………… - - - - - Investment income…………………………………………………… - - - - - TOTAL REVENUES……………………………………………… 418,256 1,118,296 149,461 600 1,192,137 EXPENDITURES: Current: Administrative services…………………………………………… 84,121 - 4,000 - 94,107 Public safety………………………………………………………… 9,317 - - - 65,148 Education…………………………………………………………… - 1,072,613 - - - Public works………………………………………………………… 3,548 - - - - Health and welfare………………………………………………… 16,374 - - 25,547 7,876 Culture and recreation……………………………………………… 5,305 - - - 858,760 Community preservation…………………………………………… - - - - - Debt service: Interest……………………………………………………………… - - 16,500 - - TOTAL EXPENDITURES……………………………………… 118,665 1,072,613 20,500 25,547 1,025,891 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES………………………………… 299,591 45,683 128,961 (24,947) 166,246 OTHER FINANCING SOURCES (USES): Transfers in…………………………………………………………… - - - - - Transfers out…………………………………………………………… - - (140,337) - - TOTAL OTHER FINANCING SOURCES (USES)…………… - - (140,337) - - NET CHANGE IN FUND BALANCES………………………………… 299,591 45,683 (11,376) (24,947) 166,246 FUND BALANCES AT BEGINNING OF YEAR…………………….. 258,088 261,487 1,108,554 47,279 824,224 FUND BALANCES AT END OF YEAR………………………………$557,679 $307,170 $1,097,178 $22,332 $990,470 NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2018 Special Revenue Funds Town of Cohasset, Massachusetts 103 Comprehensive Annual Financial Report School Other Revolving School Community Gifts and Town Special Funds Lunch Preservation Donations Revenue Funds Subtotal $752,693 $378,729 $- $- $- $2,076,193 - - 1,412 - - 1,704 - 62,912 81,751 - - 1,681,215 - - - - 8,699 322,064 - - 500,038 - - 500,038 - - - - - 83,770 158,412 - - 249,004 - 407,416 - - 23,447 (4,537) - 18,910 911,105 441,641 606,648 244,467 8,699 5,091,310 - - - 105,996 - 288,224 - - - 31,192 - 105,657 1,113,130 419,645 - - - 2,605,388 - - - 15,962 - 19,510 - - - 2,271 9,000 61,068 - - - 88,792 - 952,857 - - 255,886 - - 255,886 - - - - - 16,500 1,113,130 419,645 255,886 244,213 9,000 4,305,090 (202,025) 21,996 350,762 254 (301) 786,220 - - - 58,104 - 58,104 - - (24,747) - - (165,084) - - (24,747) 58,104 - (106,980) (202,025) 21,996 326,015 58,358 (301) 679,240 722,024 189,822 2,778,519 960,590 4,193 7,154,780 $519,999 $211,818 $3,104,534 $1,018,948 $3,892 $7,834,020 (Continued) Special Revenue Funds Town of Cohasset, Massachusetts 104 Comprehensive Annual Financial Report Capital Projects Capital Projects Chapter 90 Bonded Non-Bonded Subtotal REVENUES: Charges for services…………………………………………………$- $- $- $- Penalties and interest on taxes……………………………………… - - - - Intergovernmental……………………………………………………… 423,835 - - 423,835 Departmental and other……………………………………………… - - - - Community preservation state match……………………………… - - - - Special assessments………………………………………………… - - - - Contributions and donations………………………………………… - - - - Investment income…………………………………………………… - - - - TOTAL REVENUES……………………………………………… 423,835 - - 423,835 EXPENDITURES: Current: Administrative services…………………………………………… - 664,491 119,979 784,470 Public safety………………………………………………………… - 12,775 105,090 117,865 Education…………………………………………………………… - - 268,105 268,105 Public works………………………………………………………… 424,225 1,496 208,462 634,183 Health and welfare………………………………………………… - 450 25,000 25,450 Culture and recreation……………………………………………… - - 17,000 17,000 Community preservation…………………………………………… - - - - Debt service: Interest……………………………………………………………… - - - - TOTAL EXPENDITURES……………………………………… 424,225 679,212 743,636 1,847,073 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES………………………………… (390) (679,212) (743,636) (1,423,238) OTHER FINANCING SOURCES (USES): Transfers in…………………………………………………………… - 180,000 684,357 864,357 Transfers out…………………………………………………………… - - - - TOTAL OTHER FINANCING SOURCES (USES)…………… - 180,000 684,357 864,357 NET CHANGE IN FUND BALANCES………………………………… (390) (499,212) (59,279) (558,881) FUND BALANCES AT BEGINNING OF YEAR…………………….. 390 223,443 1,195,276 1,419,109 FUND BALANCES AT END OF YEAR………………………………$- $(275,769) $1,135,997 $860,228 Capital Project Funds NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2018 Town of Cohasset, Massachusetts 105 Comprehensive Annual Financial Report Total Nonmajor Library Other Governmental Trust Fund Trust Funds Subtotal Funds $- $- $- $2,076,193 - - - 1,704 - - - 2,105,050 - - - 322,064 - - - 500,038 - - - 83,770 10,275 8,310 18,585 426,001 147,118 (11,246) 135,872 154,782 157,393 (2,936) 154,457 5,669,602 - 2,742 2,742 1,075,436 - - - 223,522 - - - 2,873,493 - 73,381 73,381 727,074 - - - 86,518 7,949 - 7,949 977,806 - - - 255,886 - - - 16,500 7,949 76,123 84,072 6,236,235 149,444 (79,059) 70,385 (566,633) - - - 922,461 (58,104) - (58,104) (223,188) (58,104) - (58,104) 699,273 91,340 (79,059) 12,281 132,640 1,548,616 1,010,323 2,558,939 11,132,828 $1,639,956 $931,264 $2,571,220 $11,265,468 (Concluded) Permanent Funds Town of Cohasset, Massachusetts 106 Comprehensive Annual Financial Report Agency Fund Agency Fund The Agency Fund is used to account for assets held in a purely custodial capacity. The Town’s agency fund consists of off-duty work details, payroll withholdings, performance bonds, and fees collected on behalf of other governments. Town of Cohasset, Massachusetts 107 Comprehensive Annual Financial Report AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 2018 June 30,June 30, 2017 Additions Deletions 2018 CURRENT: Cash and cash equivalents……………………..……$1,063,980 $1,817,586 $(2,289,872) $591,694 Receivables, net of allowance for uncollectibles: Departmental and other…………………………… 214,649 221,553 (216,311) 219,891 TOTAL ASSETS……………………………………………$1,278,629 $2,039,139 $(2,506,183) $811,585 Warrants payable………………………………………$- $399,474 $- $399,474 Liabilities due depositors……………………………… 639,811 882,893 (1,296,080) 226,624 Other liabilities………………………………………… 638,818 714,971 (1,168,302) 185,487 TOTAL LIABILITIES………………………………………$1,278,629 $1,997,338 $(2,464,382) $811,585 ASSETS LIABILITIES Town of Cohasset, Massachusetts 108 Comprehensive Annual Financial Report This page intentionally left blank. Statistical Section Town of Cohasset, Massachusetts 109 Comprehensive Annual Financial Report Statistical Section This part of the Town of Cohasset’s comprehensive annual financial report presents detailed 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 Town’s financial reports for the relevant year. Statistical Section Town of Cohasset, Massachusetts 110 Comprehensive Annual Financial Report 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Governmental activities Net investment in capital assets………………………$51,522,827 $51,634,686 $52,393,141 $45,256,816 $45,149,347 $45,942,136 $46,801,586 $48,845,082 $50,120,485 $49,209,259 Restricted………………………………………………… 4,516,539 5,582,944 6,107,623 4,904,201 5,941,619 6,742,197 6,995,791 7,488,345 7,805,611 7,938,855 Unrestricted……………………………………………… 2,953,254 1,356,625 (867,326) 2,963,690 2,578,655 (13,865,740) (13,575,380) (15,146,493) (44,300,699) (43,451,867) Total governmental activities net position………………$58,992,620 $58,574,255 $57,633,438 $53,124,707 $53,669,621 $38,818,593 $40,221,997 $41,186,934 $13,625,397 $13,696,247 Business-type activities Net investment in capital assets………………………$14,652,348 $18,013,611 $30,478,145 $23,986,222 $23,598,624 $24,552,663 $25,773,697 $26,675,077 $27,744,000 $28,848,754 Restricted………………………………………………… 4,824,658 - - - - - - - - - Unrestricted……………………………………………… 498,502 2,446,486 1,593,511 13,812,098 14,040,400 13,279,974 13,128,471 13,304,136 13,125,184 13,339,419 Total business-type activities net position………………$19,975,508 $20,460,097 $32,071,656 $37,798,320 $37,639,024 $37,832,637 $38,902,168 $39,979,213 $40,869,184 $42,188,173 Primary government Net investment in capital assets………………………$66,175,175 $69,648,297 $82,871,286 $69,243,038 $68,747,971 $70,494,799 $72,575,283 $75,520,159 $77,864,485 $78,058,013 Restricted………………………………………………… 9,341,197 5,582,944 6,107,623 4,904,201 5,941,619 6,742,197 6,995,791 7,488,345 7,805,611 7,938,855 Unrestricted……………………………………………… 3,451,756 3,803,111 726,185 16,775,788 16,619,055 (585,766) (446,909) (1,842,357) (31,175,515) (30,112,448) Total primary government net position…………………$78,968,128 $79,034,352 $89,705,094 $90,923,027 $91,308,645 $76,651,230 $79,124,165 $81,166,147 $54,494,581 $55,884,420 The Town implemented GASB 68 in fiscal year 2015 and revised the fiscal year 2014 balance to reflect the net pension liability recorded for the first time. The Town implemented GASB 75 in fiscal year 2018 and revised the fiscal year 2017 balance to reflect the net OPEB liability recorded for the first time. Net Position By Component Last Ten Years Town of Cohasset, Massachusetts 111 Comprehensive Annual Financial Report 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Expenses Governmental activities: Administration………………………………………………$2,077,306 $2,996,631 $3,194,742 $3,664,574 $3,447,387 $3,680,617 $3,997,974 $4,487,473 $4,413,663 $4,573,270 Public safety………………………………………………… 5,603,698 6,078,695 6,622,695 6,643,418 6,455,507 6,623,281 6,991,258 7,738,244 7,609,256 8,527,016 Education…………………………………………………… 24,592,648 24,660,716 25,743,937 26,247,926 27,666,185 28,305,008 27,464,152 29,217,508 31,221,840 32,995,136 Public works………………………………………………… 3,303,838 3,319,593 3,740,913 3,014,490 3,378,422 3,476,400 4,136,781 4,251,519 4,788,976 4,579,940 Health and human services……………………………… - 534,902 537,404 582,648 1,924,232 743,217 735,795 863,580 847,136 811,904 Culture and recreation……………………………………… 2,149,442 1,573,707 1,125,988 1,542,483 1,543,186 1,582,372 1,673,178 2,062,098 2,260,471 2,252,810 Community preservation…………………………………… 389,070 - - 46,183 161,798 438,778 271,225 259,568 41,527 255,886 Interest……………………………………………………… 1,138,051 902,237 921,343 1,244,644 1,146,440 966,501 810,989 643,741 594,413 505,479 Total governmental activities expenses…………………… 39,254,053 40,066,481 41,887,022 42,986,366 45,723,157 45,816,174 46,081,352 49,523,731 51,777,282 54,501,441 Business-type activities: Sewer………………………………………………………… 2,574,878 3,247,261 4,165,164 2,810,623 2,741,823 2,379,793 2,315,178 2,466,017 2,218,405 3,453,070 Water………………………………………………………… 3,107,783 4,058,435 4,339,973 3,937,565 3,796,075 3,553,676 3,447,642 3,584,724 3,473,117 2,134,032 Total business-type activity expenses……………………… 5,682,661 7,305,696 8,505,137 6,748,188 6,537,898 5,933,469 5,762,820 6,050,741 5,691,522 5,587,102 Total primary government expenses………………………$44,936,714 $47,372,177 $50,392,159 $49,734,554 $52,261,055 $51,749,643 $51,844,172 $55,574,472 $57,468,804 $60,088,543 Program Revenues Governmental activities: Charges for services: Administration……………………………………………$568,125 $326,584 $360,593 $495,669 $570,288 $594,218 $685,031 $572,046 $552,000 $591,117 Public safety charges for services……………………… 728,561 1,123,285 1,147,747 878,441 954,524 1,034,736 1,058,895 1,293,966 1,071,160 1,070,473 Education charges for services………………………… 1,111,911 1,111,911 1,145,164 975,482 1,064,381 1,090,505 1,129,365 1,143,391 1,072,356 1,131,422 Public works charges for services……………………… 332,941 338,641 178,356 238,427 314,016 303,932 292,558 276,478 249,587 272,253 Health and human Services…………………………… - 16,103 21,499 46,623 44,208 37,433 32,907 25,905 21,025 25,569 Culture and recreation…………………………………… 329,764 306,237 332,205 77,414 15,219 20,849 10,000 20,030 14,164 319,224 Operating grants and contributions……………………… 6,549,047 7,839,025 6,417,307 7,713,034 9,315,471 8,814,016 7,583,649 8,817,175 10,318,668 10,140,592 Capital grants and contributions………………………… 1,118,972 470,782 662,105 928,013 517,534 470,004 695,888 328,686 689,367 442,734 Total government activities program revenues...………… 10,739,321 11,532,568 10,264,976 11,353,103 12,795,641 12,365,693 11,488,293 12,477,677 13,988,327 13,993,384 Business-type activities: Charges for services: Sewer……………………………………………………… 1,132,954 938,375 1,684,014 2,175,548 1,936,177 1,840,085 1,807,723 1,819,131 1,728,175 2,011,705 Water……………………………………………………… 3,103,861 3,994,707 4,732,701 5,102,955 4,562,181 4,507,575 5,143,208 5,385,579 5,089,666 5,119,996 Capital grants and contributions………………………… 521,528 772,599 13,875,299 222,911 37,676 4,152 - - 12,300 - Total business-type activities program revenues...……… 4,758,343 5,705,681 20,292,014 7,501,414 6,536,034 6,351,812 6,950,931 7,204,710 6,830,141 7,131,701 Total primary government program revenues……………$15,497,664 $17,238,249 $30,556,990 $18,854,517 $19,331,675 $18,717,505 $18,439,224 $19,682,387 $20,818,468 $21,125,085 Net (Expense)/Revenue Governmental activities………………………………………$(28,514,732) $(28,533,913) $(31,622,046) $(31,633,263) $(32,927,516) $(33,450,481) $(34,593,059) $(37,046,054) $(37,788,955) $(40,508,057) Business-type activities……………………………………… (924,318) (1,600,015) 11,786,877 753,226 (1,864) 418,343 1,188,111 1,153,969 1,138,619 1,544,599 Total primary government net expense……………………$(29,439,050) $(30,133,928) $(19,835,169) $(30,880,037) $(32,929,380) $(33,032,138) $(33,404,948) $(35,892,085) $(36,650,336) $(38,963,458) General Revenues and other Changes in Net Position Governmental activities: Real estate, personal property taxes and tax liens, net of tax refunds payable……………………………$26,301,119 $27,205,991 $28,117,764 $29,542,428 $30,668,230 $31,786,548 $33,093,668 $34,635,305 $35,883,703 $37,184,773 Motor vehicle and other excise taxes………………… 1,125,863 1,083,885 1,115,676 1,162,053 1,299,064 1,396,984 1,539,272 1,556,866 1,832,408 1,872,697 Community preservation tax…………….…………..… 347,755 289,045 364,940 388,279 402,419 416,990 436,967 454,855 480,755 498,257 Penalties and interest on taxes…………………….…… 157,070 199,216 118,155 206,230 243,820 189,395 166,014 280,132 135,455 136,889 Grants and contributions not restricted to specific programs……………………………………… 577,913 478,507 531,931 507,739 441,823 445,448 457,801 490,188 578,281 513,968 Unrestricted investment income……………………… 261,154 289,538 353,846 109,608 239,803 426,962 147,933 392,935 464,935 165,440 Transfers………………………………………………… (440,022) (1,430,634) (729,614) (172,726) 177,271 152,423 154,808 200,710 199,567 206,883 Total governmental activities………………………………… 28,330,852 28,115,548 29,872,698 31,743,611 33,472,430 34,814,750 35,996,463 38,010,991 39,575,104 40,578,907 Business-type activities: Unrestricted investment income (loss)………………… - - - 6,862 19,839 39,862 36,228 123,786 25,083 (18,727) Transfers………………………………………………… 440,022 1,430,634 729,614 172,726 (177,271) (152,423) (154,808) (200,710) (199,567) (206,883) Total business-type activities………………………………… 440,022 1,430,634 729,614 179,588 (157,432) (112,561) (118,580) (76,924) (174,484) (225,610) Total primary government……………………………………$28,770,874 $29,546,182 $30,602,312 $31,923,199 $33,314,998 $34,702,189 $35,877,883 $37,934,067 $39,400,620 $40,353,297 Changes in Net Position Governmental activities………………………………………$(183,880) $(418,365) $(1,749,348) $110,348 $544,914 $1,364,269 $1,403,404 $964,937 $1,786,149 $70,850 Business-type activities……………………………………… (484,296) (169,381) 12,516,491 932,814 (159,296) 305,782 1,069,531 1,077,045 964,135 1,318,989 Total primary government……………………………………$(668,176) $(587,746) $10,767,143 $1,043,162 $385,618 $1,670,051 $2,472,935 $2,041,982 $2,750,284 $1,389,839 Notes: Health and human services were combined with Culture and recreation prior to FY2009. Changes in Net Position Last Ten Years Town of Cohasset, Massachusetts 112 Comprehensive Annual Financial Report 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 General Fund Reserved………………………………$650,882 $635,676 $- $- $- $- $- $- $- $- Unreserved…………………………… 366,706 328,674 - - - - - - - - Committed……………………………… - - - 563,210 481,523 481,240 471,938 381,282 417,445 500,653 Assigned……………………………… - - 261,659 100,724 177,296 161,245 351,097 274,535 410,837 322,503 Unassigned…………………………… - - 1,654,551 2,194,199 3,080,514 4,640,534 5,195,715 6,036,011 6,687,417 7,635,277 Total general fund………………………$1,017,588 $964,350 $1,916,210 $2,858,133 $3,739,333 $5,283,019 $6,018,750 $6,691,828 $7,515,699 $8,458,433 All Other Governmental Funds Unreserved, reported in: Special revenue funds………………$4,686,206 $4,447,470 $- $- $- $- $- $- $- $- Capital projects funds……………… 1,564,003 1,547,657 - - - - - - - - Permanent funds…………………… 470,507 602,861 - - - - - - - - Nonspendable………………………… - - 223,414 223,414 223,414 424,735 424,735 425,885 442,525 442,525 Restricted……………………………… - - 7,091,227 6,121,494 7,777,139 8,224,501 9,133,351 10,374,792 10,690,303 11,098,712 Committed……………………………… - - - - - - - - - - Assigned……………………………… - - - - - - - - - - Unassigned…………………………… - - (216,907) - - - - - - (275,769) Total all other governmental funds….$6,720,716 $6,597,988 $7,097,734 $6,344,908 $8,000,553 $8,649,236 $9,558,086 $10,800,677 $11,132,828 $11,265,468 The Town implemented GASB 54 in year 2011, fund balances prior to year 2011 have been reported in the pre-GASB 54 format. Last Ten Years Fund Balances, Governmental Funds Town of Cohasset, Massachusetts 113 Comprehensive Annual Financial Report 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Revenues: Real estate, personal property taxes and tax liens, net of tax refunds…………………………………………$26,358,347 $26,911,817 $28,288,869 $29,566,547 $30,728,408 $31,740,271 $33,054,033 $34,705,407 $35,703,170 $37,347,489 Motor vehicle and other excise taxes……………………… 1,151,630 1,013,543 1,141,926 1,145,219 1,323,667 1,423,062 1,561,442 1,545,914 1,835,268 1,874,827 Licenses, permits, and fees………………………………… 354,247 478,108 543,407 1,286,403 1,572,712 1,588,933 1,628,690 1,812,251 1,510,733 1,643,210 Penalties and interest on taxes……………………………… 157,070 199,216 118,155 206,230 243,820 189,395 166,014 280,132 135,455 144,450 Fines and Fees……………………………………………… 31,905 66,214 41,603 26,240 36,648 52,336 36,523 35,719 25,226 20,530 Charges for services………………………………………… - - - 975,618 1,065,228 1,091,101 1,090,181 1,135,036 1,067,252 2,076,193 Intergovernmental…………………………………………… 7,902,111 6,815,415 7,283,379 8,276,896 7,869,826 9,043,567 7,644,901 9,015,361 10,273,585 10,567,985 Departmental and other……………………………………… 2,611,334 3,401,009 2,541,449 1,097,591 624,797 685,874 849,262 740,897 797,096 511,587 Community preservation taxes……………………………… 347,755 289,045 364,940 386,736 406,634 416,852 430,473 457,336 473,928 500,038 Contributions………………………………………………… 343,821 1,231,690 327,964 685,050 1,199,670 712,636 811,760 1,106,298 1,142,682 426,001 Special assessments………………………………………… - - - 543,308 528,928 588,606 554,695 500,308 458,721 441,835 Investment income…………………………………………… 261,154 289,538 353,846 101,859 239,803 426,962 147,933 392,935 464,935 188,887 Total revenue………………………………………………… 39,519,374 40,695,595 41,005,538 44,297,697 45,840,141 47,959,595 47,975,907 51,727,594 53,888,051 55,743,032 Expenditures: Administrative services……………………………………… 2,021,005 2,371,786 2,233,776 2,928,984 2,752,661 2,872,276 3,094,345 3,560,252 4,892,650 3,963,898 Public safety…………………………………………………… 4,252,024 4,674,695 4,584,957 4,423,141 4,676,241 4,980,413 4,908,286 5,127,862 5,181,879 5,596,858 Education……………………………………………………… 16,866,182 17,614,538 17,678,808 17,790,989 18,395,033 18,736,662 20,039,676 20,372,298 21,111,579 21,808,213 Public works…………………………………………………… 3,566,755 2,432,446 3,144,958 2,274,672 2,239,202 2,737,423 3,289,689 3,902,865 4,139,697 3,656,643 Health and welfare…………………………………………… - 361,930 384,277 477,299 1,788,316 602,257 579,058 1,634,611 644,356 584,294 Culture and recreation……………………………………… 1,317,249 2,121,394 903,198 1,130,054 1,159,141 1,189,344 1,244,446 1,588,856 1,723,623 1,734,291 Pension benefits……………………………………………… 3,913,458 4,154,230 4,577,048 4,432,165 4,819,457 4,943,764 3,611,380 4,859,456 6,159,043 2,296,320 Employee benefits…………………………………………… 2,754,754 2,891,482 2,777,999 3,570,122 4,022,985 4,191,000 4,366,746 5,792,801 6,035,065 6,233,635 Community preservation…………………………………… 389,070 278,054 295,713 207,144 161,798 438,778 271,225 259,568 41,527 255,886 State and county charges…………………………………… 1,069,319 1,036,228 988,613 973,754 922,630 937,872 1,015,079 418,365 401,673 431,545 Debt service Principal……………………………………………………… 1,954,979 1,838,109 2,034,985 3,264,323 2,925,391 3,303,933 3,219,630 3,223,085 3,373,347 3,345,448 Interest……………………………………………………… 1,075,004 1,015,231 921,343 1,152,362 1,332,712 985,927 846,574 705,104 622,298 533,989 Total expenditures…………………………………………… 39,179,799 40,790,123 40,525,675 42,625,009 45,195,567 45,919,649 46,486,134 51,445,123 54,326,737 50,441,020 Excess (deficiency) of revenues over (under) expenditures…………………………………… 339,575 (94,528) 479,863 1,672,688 644,574 2,039,946 1,489,773 282,471 (438,686) 5,302,012 Other financing sources (uses): Premium from issuance of bonds…………………………… - - - 7,749 - - - - - - Issuance of long-term debt………………………………… 1,360,000 1,349,196 - - 1,715,000 - - 1,208,000 1,417,000 - Issuance of refunding bonds………………………………… - - - 9,039,000 696,450 - - 193,500 166,800 - Premium from issuance of refunding bonds……………… - - - 1,063,518 41,802 - - - - - Payment to refunded bond escrow agent………………… - - - (9,973,238) (738,252) - - (203,216) (188,659) - Payments of current refunded debt………………………… - - - (200,000) - - - - - - Transfers in…………………………………………………… 348,660 487,366 632,099 1,726,682 809,333 890,222 1,483,532 2,340,343 1,293,927 1,294,428 Transfers out………………………………………………… (788,682) (1,918,000) (1,361,713) (1,899,408) (632,062) (737,799) (1,328,724) (2,139,633) (1,094,360) (1,087,545) Total other financing sources (uses)………………………… 919,978 (81,438) (729,614) (235,697) 1,892,271 152,423 154,808 1,398,994 1,594,708 206,883 Net change in fund balance……………………………………$1,259,553 $(175,966) $(249,751) $1,436,991 $2,536,845 $2,192,369 $1,644,581 $1,681,465 $1,156,022 $5,508,895 Debt service as a percentage of noncapital expenditures… 8.09% 7.41% 7.48% 11.04% 9.55% 9.99% 8.88% 8.09% 7.78%7.95% Note: Charges for services were reported as departmental revenue prior to FY2012. Last Ten Years Changes in Fund Balances, Governmental Funds Town of Cohasset, Massachusetts 114 Comprehensive Annual Financial Report Assessed and Actual Values and Tax Rates Personal Total Commercial Total Residential Residential Commercial Industrial Property Commercial Commercial % of Town Year Value Tax Rate Value Value Value Value Tax Rate Total Value Value 2009 $2,285,017,876 $10.78 $142,386,023 $9,809,100 $17,961,230 $170,156,353 $10.78 6.9%$2,455,174,229 2010 $2,265,856,922 $11.22 $144,324,020 $9,809,100 $18,749,710 $172,882,830 $11.22 7.1%$2,438,739,752 2011 (1)$2,260,416,269 $11.59 $147,290,135 $10,439,000 $22,156,220 $179,885,355 $11.59 7.4%$2,440,301,624 2012 $2,289,907,980 $11.98 $152,768,381 $468,500 $22,610,360 $175,847,241 $11.98 7.1%$2,465,755,221 2013 $2,344,387,276 $12.20 $153,133,804 $526,500 $23,478,670 $177,138,974 $12.20 7.0%$2,521,526,250 2014 (1)$2,364,598,033 $12.54 $153,369,768 $526,500 $23,783,160 $177,679,428 $12.54 7.0%$2,542,277,461 2015 $2,423,560,624 $12.71 $165,225,922 $1,070,900 $23,639,620 $189,936,442 $12.71 7.3%$2,613,497,066 2016 $2,485,772,774 $12.88 $164,369,961 $1,070,900 $24,387,410 $189,828,271 $12.88 7.1%$2,675,601,045 2017 (1)$2,564,462,219 $13.06 $163,904,671 $1,070,900 $25,930,820 $190,906,391 $13.06 6.9%$2,755,368,610 2018 $2,722,764,935 $12.79 $177,299,433 $1,650,400 $26,099,500 $205,049,333 $12.79 7.0%$2,927,814,268 (1) Revaluation year. Source: Assessor's Department, Town of Cohasset and Official Statements. All property in the Commonwealth of Massachusetts is assessed at 100% of fair cash value. Note: Chapter 59, Section 21C of the Massachusetts General Laws, known as "Proposition 2 1/2", imposes 2 separate limits on the annual tax levy of the Town. The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. The secondary limitation is that the tax levy cannot exceed the maximum levy limit for the preceding year as determined by the State Commissioner of Revenue by more than 2 1/2 percent, subject to an exception for property added to the tax rolls and for certain substantial valuation increases other than as part of a general revaluation. The secondary limit may be exceeded in any year by a majority vote of the voters, however it cannot exceed the primary limitation. Assessed Value and Actual Value of Taxable Property by Classification and Tax Rates Last Ten Years 93% 6%0%1% Total Assessed Value by Classification Year Ended June 30, 2018 Residential Commercial Industrial Personal Property 93% 6%0%1% Total Assessed Value by Classification Year Ended June 30, 2017 Residential Commercial Industrial Personal Property 6.7% 6.8% 6.9% 7.0% 7.1% 7.2% 7.3% 7.4% 7.5% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Commercial Value as % of Total Value Town of Cohasset, Massachusetts 115 Comprehensive Annual Financial Report Principal Taxpayers Current Year and Nine Years Ago Percentage of Percentage of Total Taxable Total Taxable Nature of Assessed Assessed Assessed Assessed Name Business Valuation Rank Value Valuation Rank Value Avalon Cohasset Inc.Residential 51,684,000$ 1 1.77%-$ - Minot International Residential 18,070,200 2 0.62%- - Cushing Station LLC Retail 16,424,000 3 0.56%- - Roy, Peter A Residential 12,435,900 4 0.42%9,663,200 5 0.39% Toll MA Land LTD Partnership Residential 12,411,500 5 0.42%- - Hingham Lumber Company Inc.Retail 10,165,700 6 0.35%8,237,500 6 0.34% Connell Cohasset Greenbush LLC Retail/Residential 9,976,700 7 0.34%- - Roy, Mary L Residential 9,120,800 8 0.31%- - Chute, Ruth Residential 8,849,700 9 0.30%7,046,200 9 0.29% Metropolitan/Cohasset Senior Housing Assisted Living 7,982,200 10 0.27%7,539,600 7 0.31% Whitehead Road Limited Residential --15,172,100 1 0.62% Cedarmere Road Limited Residential --14,473,400 2 0.59% CSDV Limited Partnership Retail --11,993,500 3 0.49% Cohasset Development Trust Retail/Residential --11,759,000 4 0.48% Cohasset Golf Club Recreation --7,223,457 8 0.29% TRT Cohasset LLC Commercial - -6,940,900 10 0.28% Totals 157,120,700$ 5.37%100,048,857$ 4.08% Source: Official Statements, Town of Cohasset 2018 2009 Town of Cohasset, Massachusetts 116 Comprehensive Annual Financial Report Percent of Less First Year Percent of Delinquent Total Total Tax Total Abatements &Net Net as % Current Net Levy Tax Tax Collections to Year Tax Levy Exemptions Tax Levy of Total Tax Collections Collected Collections Collections Net Tax Levy 2009 $26,466,778 $226,467 $26,240,311 99.14%$25,909,543 98.74%$330,665 $26,240,208 100.00% 2010 $27,362,660 $193,471 $27,169,189 99.29%$26,682,972 98.21%$471,009 $27,153,981 99.94% 2011 (1)$28,284,096 $137,105 $28,146,991 99.52%$27,767,687 98.65%$379,126 $28,146,813 100.00% 2012 $29,539,748 $158,733 $29,381,015 99.46%$28,827,046 98.11%$304,413 $29,131,459 99.15% 2013 $30,762,620 $145,021 $30,617,599 99.53%$30,225,220 98.72%$151,290 $30,376,510 99.21% 2014 (1)$31,880,160 $192,772 $31,687,388 99.40%$31,155,908 98.32%$461,911 $31,617,819 99.78% 2015 $33,217,548 $141,026 $33,076,522 99.58%$32,545,881 98.40%$562,904 $32,545,881 98.40% 2016 $34,461,741 $118,371 $34,343,370 99.66%$33,666,964 98.03%$197,444 $33,864,408 98.61% 2017 (1)$35,985,114 $119,374 $35,865,740 99.67%$35,430,892 98.79%$184,051 $35,614,943 99.30% 2018 $37,446,745 $196,841 $37,249,904 99.47%$36,858,032 98.95%$0 $36,858,032 98.95% (1) Revaluation year. Source: Assessor's Department and Official Statements, Town of Cohasset Property Tax Levies and Collections Last Ten Years $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Real Estate Tax Levies vs. First Year Collections Last Ten Years Real Estate Tax Levy First Year Current Tax Collections Town of Cohasset, Massachusetts 117 Comprehensive Annual Financial Report General Less Net General Percentage Percentage Percentage Percentage U. S. Census Personal Assessed Obligation Amounts Obligation Capital Per of Personal of Assessed Per of Personal of Assessed Year Population Income Value Bonds Available (2)Bonds Leases Capita Income Value Capita Income Value 2009 7,777 539,625,000$ 2,455,174,229$ $21,622,991 ($913,410)$20,709,581 $0 $2,780 4.01%0.88%2,663$ 3.84%0.84% 2010 7,874 455,330,000$ 2,438,739,752$ $21,134,078 ($852,516)$20,281,562 $0 $2,684 4.64%0.87%2,576$ 4.45%0.83% 2011 7,846 528,494,000$ 2,440,301,624$ $18,784,897 ($791,622)$17,993,275 $0 $2,394 3.55%0.77%2,293$ 3.40%0.74% 2012 7,490 539,280,000$ 2,465,755,221$ $28,375,584 ($730,728)$27,644,856 $0 $3,788 5.26%1.15%3,691$ 5.13%1.12% 2013 7,895 629,121,000$ 2,521,526,250$ $28,043,018 ($669,834)$27,373,184 $0 $3,552 4.46%1.11%3,467$ 4.35%1.09% 2014 7,870 655,067,320$ 2,542,277,461$ $24,587,105 ($608,940)$23,978,165 $0 $3,124 3.75%0.97%3,047$ 3.66%0.94% 2015 8,084 672,879,824$ 2,613,497,066$ $21,223,504 ($548,047)$20,675,457 $0 $2,590 3.15%0.81%2,558$ 3.07%0.79% 2016 8,273 796,681,627$ 2,675,601,045$ $19,087,807 ($487,153)$18,600,654 $181,803 $2,307 2.40%0.71%2,270$ 2.36%0.70% 2017 8,342 739,699,000$ 2,755,368,610$ $17,007,742 ($426,258)$16,581,484 $148,204 $2,039 2.30%0.62%2,005$ 2.26%0.61% 2018 8,393 901,460,000$ 2,927,814,268$ $13,561,667 ($365,364)$13,196,303 $113,278 $1,616 1.50%0.46%1,586$ 1.48%0.45% Business-Type Activities (1) General Total Net Percentage Percentage Percentage Percentage Obligation Capital Debt Debt Per of Personal of Assessed Per of Personal of Assessed Year Bonds Leases Outstanding Outstanding Capita Income Value Capita Income Value 2009 66,414,491$ $0 $88,037,482 $87,124,072 $11,320 16.31%3.59%$11,203 16.15%3.55% 2010 63,506,979$ $0 $84,641,057 $83,788,541 $10,749 18.59%3.47%$10,641 18.40%3.44% 2011 60,953,569$ $0 $79,738,466 $78,946,844 $10,163 15.09%3.27%$10,062 14.94%3.24% 2012 45,681,585$ $0 $74,057,169 $73,326,441 $9,887 13.73%3.00%$9,790 13.60%2.97% 2013 46,185,305$ $0 $74,228,323 $73,558,489 $9,402 11.80%2.94%$9,317 11.69%2.92% 2014 43,504,411$ $0 $68,091,516 $67,482,576 $8,652 10.39%2.68%$8,575 10.30%2.65% 2015 40,590,132$ $0 $61,813,636 $61,265,589 $7,543 9.19%2.37%$7,476 9.10%2.34% 2016 38,386,037$ $0 $57,473,844 $56,986,691 $6,947 7.21%2.15%$6,888 7.15%2.13% 2017 36,321,177$ $0 $53,328,919 $52,902,661 $6,393 7.21%1.94%$6,342 7.15%1.92% 2018 33,378,948$ $0 $46,940,615 $46,575,251 $5,593 5.21%1.60%$5,549 5.17%1.59% (1) Water and Sewer Funds (2) Amounts available are restricted resources from the Massachusetts School Building Administration. Source: Audited Financial Statements, U. S. Census, Division of Local Services Net Debt Outstanding Total Primary Government Ratios of Outstanding Debt and General Bonded Debt Last Ten Years Governmental Activities General Obligation Bonds Net General Obligation Bonds Total Debt Outstanding Town of Cohasset, Massachusetts 118 Comprehensive Annual Financial Report Share of Debt Percentage Overlapping Town of Cohasset, Massachusetts Outstanding Applicable Debt Overlapping debt repaid with property taxes Norfolk County…………………………………………………$14,204,000 (a)2.17%$132,476 Massachusetts Bay Transportation Authority……………… 5,563,850 (a)0.11%180,678 South Shore Regional Vocational School District………… 575,000 (a)1.16%84,043 Subtotal, overlapping debt…………………………………………………………………………………………… 397,197 Town debt……………………………………………………………………………………………………………… 13,561,667 Town capital leases…………………………………………………………………………………………………… 113,278 Total Town direct debt………………………………………………………………………………………………… 13,674,945 Total direct and overlapping debt……………………………………………………………………………………$14,072,142 (a) Outstanding debt as of June 30, 2018 Source: Official Statement Town of Cohasset, Massachusetts Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the taxpayers of the Town. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. The overlap of Norfolk county is set by the Commonwealth based on property valuations and for the School District the overlap represents the Town's students proportionate share compared to all students. As of June 30, 2018 Direct and Overlapping Governmental Activities Debt Town of Cohasset, Massachusetts 119 Comprehensive Annual Financial Report 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Equalized Valuation……………………………$2,455,174,229 $2,438,739,752 $2,440,301,624 $2,465,755,221 $2,521,526,250 $2,542,277,461 $2,613,497,066 $2,675,601,045 $2,755,368,610 $2,927,814,268 Debt Limit -5% of Equalized Valuation………$122,758,711 $121,936,988 $122,015,081 $123,287,761 $126,076,313 $127,113,873 $130,674,853 $133,780,052 $137,768,431 $146,390,713 Less: Outstanding debt applicable to limit……… 64,610,320 62,821,695 59,198,694 55,258,487 57,170,731 52,775,014 54,516,104 45,619,522 43,184,437 38,479,423 Legal debt margin…………………………$58,148,391 $59,115,293 $62,816,387 $68,029,274 $68,905,582 $74,338,859 $76,158,749 $88,160,530 $94,583,994 $107,911,290 Total debt applicable to the limit as a percentage of the limit………………… 52.63%51.52%48.52%44.82%45.35%41.52%41.72%34.10%31.35%26.29% Source: Treasurer's Department, Town of Cohasset Last Ten Years Computation of Legal Debt Margin Town of Cohasset, Massachusetts 120 Comprehensive Annual Financial Report Per Capita Population Personal Personal Median School Unemployment Year Estimates Income Income Age Enrollment Rate 2009 7,777 539,625,000$ 71,549$ 44 1,466 6.60% 2010 7,874 455,330,000$ 57,827$ 44 1,496 5.90% 2011 7,846 528,494,000$ 67,358$ 44 1,535 5.00% 2012 7,490 539,280,000$ 72,000$ 44 1,530 5.00% 2013 7,895 629,121,000$ 83,416$ 44 1,594 4.50% 2014 7,870 655,067,320$ 83,236$ 44 1,632 4.50% 2015 8,084 672,879,824$ 83,236$ 44 1,614 4.00% 2016 8,273 796,681,627$ 96,299$ 44 1,637 3.40% 2017 8,342 739,699,000$ 89,411$ 44 1,593 2.10% 2018 8,393 901,460,000$ 108,063$ 44 1,582 3.00% Source: U. S. Census, Division of Local Services Median age is based on most recent census data Demographic and Economic Statistics Last Ten Years Town of Cohasset, Massachusetts 121 Comprehensive Annual Financial Report Nature Percentage of Percentage of of Total Town Total Town Employer Business Employees Rank Employment Employees Rank Employment Shaw's Grocery Store 130 1 3.18%130 2 3.73% Super Stop & Shop Grocery Store 119 2 2.91%155 1 4.45% South Shore Music Circus Seasonal Entertainment 100 3 2.45%87 3 2.49% Hingham Lumber Building Supplies 88 4 2.15%80 4 2.29% Harborview Center for Nursing Rehab Rehabilitation Hospital 68 5 1.66%-N/A - Sunrise Assisted Living Facility 64 6 1.57%80 5 2.29% Red Lion Inn Inn/Restaurant 48 7 1.17%50 7 1.43% Cohasset Pediatrics Health Services 40 8 0.98%-N/A - Pilgrim Bank Bank 36 9 0.88%-N/A - Health Care South Health Services 35 10 0.86%-N/A - Golden Living Center Rehabilitation Hospital ---60 6 1.72% Cohasset Harbor Restaurant Motel/Restaurant ---10 8 0.29% 728 17.82%652 18.70% Source: Massachusetts Workplace Development Agency & the Town's personnel and department records. 2018 2009 Principal Employers Current Year and Nine Years Ago Town of Cohasset, Massachusetts 122 Comprehensive Annual Financial Report 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function Administration…………… 15 20 21 21 24 22 22 23 22 22 Police…………………… 185 109 112 87 89 102 96 100 50 50 Fire……………………… 25 27 27 35 36 35 33 31 50 50 Education……………… 349 336 332 334 337 345 313 363 359 359 Sewer…………………… 1 1 1 1 1 1 1 1 1 1 Public works…………… 25 26 27 25 25 25 27 34 29 29 Human services………… 12 11 10 13 14 12 12 9 10 10 Culture and recreation… 44 43 53 68 69 74 75 118 130 130 Total …………………… 656 573 583 584 595 616 579 679 651 651 Source: Town personnel records and various Town departments. Last Ten Years Full-time Equivalent Town Employees by Function Town of Cohasset, Massachusetts 123 Comprehensive Annual Financial Report Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Administration Population……………………………………………… 7,777 7,874 7,846 7,490 7,895 7,870 8,064 8,225 8,018 8,393 Registered voters, annual town election…………… 272 5,239 5,398 5,424 5,814 5,679 5,675 5,857 5,973 5,780 Town Clerk Births………………………………………………… 66 70 58 65 49 61 73 69 76 92 Marriages…………………………………………… 33 27 29 35 27 23 35 33 35 22 Deaths……………………………………………… 83 60 77 67 87 73 88 67 77 85 Police Accidents covered by an officer…………………… 133 155 133 140 160 158 165 180 165 171 Citations issued……………………………………… 768 1,825 2,401 1,739 928 1,571 1,133 1,428 1,104 1,230 Arrests………………………………………………… 144 104 113 115 151 167 141 163 131 121 Larcenies………………………………….…………… 75 73 89 80 56 76 87 82 75 68 Fire Total Reponses……………………………………… 2,515 2,108 2,086 2,218 2,154 1,418 2,357 2,080 2,376 1,966 Fire related calls……………………………………… 78 45 71 70 48 59 77 84 93 78 EMS/Rescue related calls………………………….. 967 937 930 953 1,001 715 1,019 984 944 909 Building Department Building permits issued……………………………… 335 301 407 304 388 398 421 501 472 397 Education Public school enrollment……………………………… 1,466 1,496 1,535 1,530 1,594 1,632 1,614 1,637 1,593 1,582 Public Works Cemetery Interments…………………………………………… 31 28 42 33 28 38 37 43 37 48 Water Service connections………………………...…… 2,433 2,467 2,492 2,512 2,567 2,571 2,580 2,611 2,638 2,654 Consumption in billions of gallons……………… 0.306 0.281 0.305 0.269 0.272 0.268 0.275 0.290 0.284 0.276 Daily consumption in millions of gallons………… 0.838 0.771 0.836 0.736 0.745 0.734 0.754 0.794 0.778 0.756 Sewer Service connections………………………...…… 1,031 1,134 1,274 1,385 1,538 1,559 1,562 1,593 1,610 n/a Daily average collection (MGD)………………… 0.226 0.223 0.2393 0.224 0.277 .274 .279 .299 .319 n/a Highway Miles of public road………………………………… 33.50 33.50 33.50 33.50 33.50 33.50 33.50 33.50 33.50 33.50 Human Services Board of Health Permits/Septic……………………………………… 21 31 26 21 17 29 32 35 25 26 Council on Aging Home delivered meals…………………………… 5,000 2,302 3,470 3,630 2,936 3,607 3,613 3,029 3,258 n/a Transportation……………………………………… 3,820 4,209 4,510 5,031 4,369 3,024 3,699 3,864 4,210 n/a Volunteer service hours…………………………… 7,831 8,304 9,235 7,752 7,755 10,697 8,558 7,650 6,913 n/a Fitness/exercise program participants…………… 190 212 172 301 319 219 255 297 190 n/a Recreation/social event participants…………… 1,106 1,013 1,137 1,057 1,148 265 360 412 475 n/a Libraries Volumes in collection………………………………… 62,306 64,924 70,364 68,404 67,396 222,020 220,014 220,014 127,853 93,475 Circulation…………………………………..………… 149,299 139,221 149,224 152,773 157,437 155,411 155,974 158,433 150,188 129,056 Program attendance………………………………… 5,962 6,314 7,067 8,454 9,683 10,636 10,675 12,899 12,458 10,462 Source: Various Town Departments n/a: Information not available Last Ten Years Operating Indicators by Function/Program Town of Cohasset, Massachusetts 124 Comprehensive Annual Financial Report Function/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Administration Number of buildings…………….……… 1 1 1 1 1 1 1 1 1 1 Police Number of stations……………………… 1 1 1 1 1 1 1 1 1 1 Fire Number of stations……………………… 1 1 1 1 1 1 1 1 1 1 Number of vehicles……………………… 10 10 10 10 10 10 10 10 10 10 Education Number of elementary schools………… 2 2 2 2 2 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 Water mains (miles)……………………… 46 46 46 46 46 46 46 46 46 46 Fire hydrants……………………………… 496 496 496 496 496 496 496 496 496 496 Sanitary sewers (miles)………………… 33 33 33 33 33 33 33 33 33 33 Number of wells………………………… 1 1 1 1 1 1 1 1 1 1 Number of water storage tanks………… 2 2 2 2 2 2 2 2 2 2 Number of pump stations……………… 9 9 9 9 9 9 9 9 9 9 Human Services Senior center……………………………… - - - - - - - 1 1 1 Culture and Recreation Recreation building……………………… 1 1 1 1 1 1 1 1 1 1 Library…………………………………… 1 1 1 1 1 1 1 1 1 1 Source: Various Town Departments Last Ten Years Capital Asset Statistics by Function/Program