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Home My WebLink AboutCohasset FY2020 CAFR TOWN OF COHASSET, MASSACHUSETTS Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Prepared By: The Fiscal Team TOWN OF COHASSET, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2020 Prepared by: The Fiscal Team Town of Cohasset, Massachusetts TOWN OF COHASSET, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2020 TABLE OF CONTENTS Introductory Section ...................................................................................................................................................... 1 Letter of Transmittal ..................................................................................................................................................... 3 GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................... 7 Organizational Chart .................................................................................................................................................... 8 Principal Town Officials – As of June 30, 2020 ........................................................................................................... 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 ........................................................................................................................ 76 General Fund Budgetary Comparison Schedule ................................................................................................... 78 General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ...... 79 Pension Plan Schedules ........................................................................................................................................ 81 Schedule of the Town’s Proportionate Share of the Net Pension Liability ......................................................... 82 Schedule of the Town Contributions ................................................................................................................... 83 Schedule of the Special Funding Amounts of the Net Pension Liability ............................................................. 84 Other Postemployment Benefits Plan Schedules .................................................................................................. 85 Schedule of Town’s net OPEB Liability and Related Ratios .............................................................................. 86 Schedule of Town Contributions ......................................................................................................................... 87 Schedule of Investment Returns ........................................................................................................................ 88 Notes to Required Supplementary Information ...................................................................................................... 89 Combining and Individual Fund Statements .............................................................................................................. 93 Nonmajor Governmental Funds ............................................................................................................................. 94 Nonmajor Governmental Funds – Combining Balance Sheet............................................................................ 96 Nonmajor Governmental Funds – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................................................................................................................... 100 Agency Fund ........................................................................................................................................................ 104 Agency Fund – Statement of Changes in Assets and Liabilities ...................................................................... 105 Statistical Section ...................................................................................................................................................... 107 Net Position By Component ..................................................................................................................................... 108 Changes in Net Position .......................................................................................................................................... 109 Fund Balances, Governmental Funds ..................................................................................................................... 110 Changes in Fund Balances, Governmental Funds .................................................................................................. 111 Assessed Value and Actual Value of Taxable Property by Classification and Tax Rates ....................................... 112 Principal Taxpayers ................................................................................................................................................. 113 Property Tax Levies and Collections ....................................................................................................................... 114 Ratios of Outstanding Debt and General Bonded Debt ........................................................................................... 115 Direct and Overlapping Governmental Activities Debt............................................................................................. 116 Computation of Legal Debt Margin .......................................................................................................................... 117 Demographic and Economic Statistics .................................................................................................................... 118 Principal Employers ................................................................................................................................................. 119 Full-Time Equivalent Town Employees by Function ................................................................................................ 120 Operating Indicators by Function/Program .............................................................................................................. 121 Capital Asset Statistics by Function/Program .......................................................................................................... 122 Introductory Section Ice sculpture at the Town’s 250th anniversary kickoff event. 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 OFFICE OF THE TOWN MANAGER COHASSET TOWN HALL 41 HIGHLAND AVENUE COHASSET, MA 02025 Christopher G. Senior TOWN MANAGER Email:csenior@cohassetma.org Office: 781-383-4100 x 5109 Fax: 781-383-0228 Letter of Transmittal February 19, 2021 To the Honorable Members of the Select Board 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, 2020 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, 2020, 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 unqualified opinion that the Town of Cohasset’s financial statements for the fiscal year ended June 30, 2020 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 requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management‘s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement 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 Town of Cohasset, Massachusetts 4 Comprehensive Annual Financial Report were home to 7,542 residents according to the 2010 US Census, and 7,955 residents according to the 2020 census conducted by the Cohasset Town Clerk. 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 Select Board 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 The COVID-19 pandemic’s impact on the local economy followed the same pattern as across the nation, with the mandatory closure of many businesses and a sharp short-term impact on employment. Cohasset’s unemployment rate went from 1.8% in March of 2020 to 11.9% in June of 2020, matching the trend at the State level which saw the unemployment rate leap from 3% in March to 17.8% in June. Despite the sharp increase, Cohasset’s numbers were significantly better than the State’s and were among the lowest in the South Shore region. Cohasset’s predominately white-collar work force continues to be one of the best educated in the state, with 73.3% of residents holding a bachelor’s degree or higher according to US Census Data. With employment concentrated in high tech, higher education, health care and the financial sector rather than the service, tourism or cultural sectors, Cohasset is well positioned to rebound into the new fiscal year as work-from-home models become more prevalent (the unemployment rate had declined to 4.5% by November of 2020). Cohasset remains home to a diverse mix of local businesses, including the South Shore Music Circus, the South Shore Arts Center, branch offices of five regional banks, an active fishing fleet, the Sunrise assisted living facility, the Evoke Addiction Treatment Facility, and the Work Station, a co-working location. The Cohasset Village district includes a mix of small businesses including restaurants, shops and realtors, and a growing residential component. A proposal now before the Planning Board would add 23 new residential units and some commercial space on Cohasset Cove, a short walk from the Village. The community’s natural beauty and abundant opportunities for outdoor activities, including a picturesque harbor, two beaches, the Whitney Woods Reservation, and Wompatuck State Park, have not only attracted active residents drawn to hiking, running, biking, swimming, and sailing, but also influence the local economy. During a regular year, Cohasset 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. Town of Cohasset, Massachusetts 5 Comprehensive Annual Financial Report The Town’s transit-oriented development complex adjacent to the Cohasset Commuter Rail Station continues to thrive. Anchored by the above-mentioned Work Station, which provides office and meeting space as well as support services to the burgeoning local population that work from home, the center also includes a juice bar, a fitness center, a gourmet wine store, a restaurant, a clothing store, a tutoring center, and sixteen living units. Construction has begun on a 60,000 square foot mixed-use building with 20 qualifying affordable rental units and ground floor commercial space on state route 3A. The previously mentioned Evoke Addiction Treatment Facility will begin taking patients this fall after completing the rehabilitation of an old nursing home. Financial Planning and Management The COVID-19 pandemic was the single biggest issue the Town addressed during the fiscal year. Cohasset was the first community outside of Boston to have a reported case of the virus, which required the Town to spin-up its emergency management team in early March and begin regular meetings which continued through the remainder of the fiscal year. Among the highlights: Policy and Program Development The Town retained its AAA rating from the Standard & Poor’s rating agency, 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. The most notable new policy was a funding plan for the Town’s OPEB liabilities adopted by the Select Board in January 2020. The plan, which runs through 2032, includes regular annual funding increases, coupled with larger contributions after the Norfolk County Retirement System (of which the Town is a part) reaches its funding goals. Cohasset made its scheduled June 2020 contribution pursuant to that plan. Cohasset was awarded the GFOA Budget Award for its FY20 budget document, the first such award for the Town. This recognition underscores the community’s commitment to both sound financial practices and fiscal transparency for all its residents. The budget book includes detailed departmental narratives, a comprehensive executive summary, all the Town financial management policies, and a detailed glossary. Technology Planning and Implementation COVID-19 forced fundamental changes in service delivery and day-to-day operations, especially for the School Department and the departments in Town Hall. Thanks to the superlative work of the Town’s IT staff, the School’s near-overnight transition to remote learning was a success, as was the move to on-line meetings of Cohasset’s boards and committees. At the same time, IT worked with office staff to transform manual functions for the internet, including tax collections, permits, information requests and a host of other routine services. Thanks to significant investment over the prior five years, from the build-out of a municipal fiber system, to major upgrades in cyber-security, to the recruitment and training of a dedicated IT staff, these challenges were met successfully. Strong IT services made all the difference during this public health crisis. Planning and Infrastructure The Town’s first-ever Master Plan Implementation Committee presented the Select Board with a package of priorities in June of 2020 for the FY21 fiscal year, maintaining the momentum from the adoption of Cohasset’s Comprehensive Master Plan in June of 2019. The Master Plan is a policy guide that provides a framework for the physical development of the community, including how it looks today and in what direction it wants to go in the Town of Cohasset, Massachusetts 6 Comprehensive Annual Financial Report future. While the emphasis is on buildings and infrastructure, it also includes important social, natural resource and economic values of the community. The FY21 goals include a focus on zoning updates, economic development, affordable housing, and the Elm Street corridor which links Cohasset Cove and Cohasset Village. The Cohasset Municipal Harbor Plan was adopted in June and sent on to the State for final review and approval. The updated Open Space and Recreation Plan received final State approval, and an Affordable Housing Production Plan was also adopted locally and sent on to the State for approval. Public Health The response to COVID-19 dominated much of the second half of the fiscal year, with particular emphasis on public education and coordinated work with the State Department of Public Health to track and trace confirmed infections. The Town worked closely with local businesses on infection control measures, regularly communicated with residents on websites and via social media, and reimagined service delivery for a non- contact, electronic world. From maintaining access to local parks and the beach to allow residents to get outdoors safely, to adopting effective enforcement tools to send clear messages about the severity of the situation and ways to keep Cohasset safe, it was a time like no other. Town staff successfully pulled together and tackled each challenge, helping Cohasset maintain one of the lowest infection rates in the State. 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, 2019. This was the eighth time that the Town submitted a CAFR to the GFOA. The Town was awarded this Certificate in each year. 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 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. I would also like to thank the Select Board 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 for Excellence in Financial Reporting Town of Cohasset, Massachusetts 8 Comprehensive Annual Financial Report Organizational Chart Town of Cohasset, Massachusetts 9 Comprehensive Annual Financial Report Principal Town Officials – As of June 30, 2020 Elected Officials Term Expires Select Board Diane Kennedy, Chair 2023 Keri Thompson, Vice Chair 2022 Cory Evans, Member 2023 Paul Schubert, Member 2021 Jack Creighton, Member 2022 Moderator Daniel Evans 2023 Town Clerk Carol L. St. Pierre 2023 Board of Assessors Alyson A. Silvia 2023 Debra J. Krupczak 2021 Melissa Browne 2022 School Committee Ellen M. Maher 2021 Lydia Jordan St. Onge 2023 Paul Kearney, Jr. 2021 Ashley Colleary 2022 Craig J. MacLellan 2022 Sewer Commission William B. McGowan, Jr. 2022 Wayne Sawchuk 2023 John Beck 2021 Water Commission Stephen M. Girardi 2023 Leonora C. Jenkins 2021 John W. Steinmetz 2022 Appointed Officials Town Manager Christopher G. Senior 2023 Director of Finance/Town Accountant Donald Piatt Treasurer/Collector Paula M. Linhares Director of Assessing Mary Quill Superintendent of Schools Patrick E. Sullivan School Business Manager Susan Owen 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 Annual Town Meeting held outdoors during the COVID‐19 pandemic. 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 Select Board 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, 2020, 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, 2020, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 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 February 19, 2021 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. February 19, 2021 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, 2020. 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, COVID-19, 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 $9.4 million at the close of year 2020. The overall financial condition of the Town’s governmental activities remained stable during year 2020. Town of Cohasset, Massachusetts 19 Comprehensive Annual Financial Report Governmental net position of $52.7 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, $8.9 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 $52.2 million. This deficit balance is primarily due to the recognition of a $19.2 million net pension liability, and a $72.3 million net OPEB liability. The governmental net position decreased by $2.5 million during the current year due to several offsetting factors. Net position increased due to $626,000 of capital grants and a general fund budget surplus of $2.0 million. This was offset by a $4.5 million increase in the net OPEB liability and related deferred inflows/outflows of resources. The increase in the net OPEB liability and related deferred inflows/outflows was the result of changes in assumptions included in the most recent actuarial valuation. The governmental expenses totaled $61.8 million of which $15.4 million (25%) was directly supported by program revenues. General revenues and transfers totaled $43.9 million, primarily coming from property taxes, motor vehicle excise and unrestricted investment income. Condensed financial data for years 2020 and 2019 is presented below. 2020 2019 Assets: Current assets…………………………………………$ 27,396,994 $ 24,972,330 Noncurrent assets (excluding capital)……………… 549,779 1,371,262 Capital assets, non depreciable……………………… 7,800,465 7,847,974 Capital assets, net of accumulated depreciation…… 53,539,444 54,988,209 Total assets………………………………………… 89,286,682 89,179,775 Deferred outflows of resources……………………… 24,083,565 16,242,066 Liabilities: Current liabilities (excluding debt)…………………… 1,761,397 1,196,377 Noncurrent liabilities (excluding debt)……………… 91,504,867 79,567,285 Current debt…………………………………………… 3,502,595 3,952,188 Noncurrent debt………………………………………… 5,550,889 7,839,318 Total liabilities…………………………………… 102,319,748 92,555,168 Deferred inflows of resources………………………… 1,630,427 903,730 Net position: Net investment in capital assets…………………… 52,655,651 51,546,419 Restricted……………………………………………… 8,555,627 8,638,617 Unrestricted…………………………………………… (51,791,206) (48,222,093) Total net position…………………………………$9,420,072 $11,962,943 Town of Cohasset, Massachusetts 20 Comprehensive Annual Financial Report 2020 2019 Program Revenues: Charges for services…………………………………………$ 3,112,566 $ 3,549,823 Operating grants and contributions……………………… 11,621,396 10,775,829 Capital grants and contributions…………………………… 626,307 464,453 General Revenues: Real estate and personal property taxes, net of tax refunds payable……………………………… 39,938,435 38,591,651 Motor vehicle and other excise taxes…………………… 2,017,829 1,975,254 Community preservation tax……………………………… 535,239 516,781 Penalties and interest on taxes…………………………… 144,810 164,731 Grants and contributions not restricted to specific programs……………………………………… 584,777 549,025 Unrestricted investment income…………………………… 629,831 816,026 Total revenues………………………………………… 59,211,190 57,403,573 Expenses: Administrative services……………………………………… 5,805,598 5,242,598 Public safety………………………………………………… 9,889,682 9,608,463 Education…………………………………………………… 37,021,333 35,137,381 Public works………………………………………………… 5,035,114 5,263,972 Health and welfare…………………………………………… 1,012,589 947,288 Culture and recreation……………………………………… 2,181,586 2,321,582 Community preservation…………………………………… 251,142 243,389 COVID-19…………………………………………………… 288,493 - Interest……………………………………………………… 268,524 372,204 Total expenses………………………………………… 61,754,061 59,136,877 Change in net position……………………………………… (2,542,871) (1,733,304) Net position, beginning of year…………………………… 11,962,943 13,696,247 Net position, end of year……………………………………$9,420,072 $11,962,943 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 2020. Business-type water net position of $14.6 million (84%) represents the net investment in capital assets, while $2.8 million (16%) is unrestricted. Net position increased by $1.6 million which is primarily due to operating revenues exceeding operating expenses. Business-type sewer net position of $18.1 million (69%) represents the net investment in capital assets, while $8.3 million (31%) is unrestricted. Net position decreased by $750,000 which was primarily due to depreciation expense recognized on capital assets. At the end of the current year all business-type activities were able to report positive balances in all categories of net position. The same situation held true for the prior year. Condensed financial data for years 2020 and 2019 is presented below. Town of Cohasset, Massachusetts 21 Comprehensive Annual Financial Report 2020 2019 Assets: Current assets………………………………………………$ 7,061,865 $ 7,547,326 Noncurrent assets (excluding capital)…………………… 4,934,113 5,575,509 Capital assets, non depreciable…………………………… 1,660,609 1,394,803 Capital assets, net of accumulated depreciation………… 58,400,842 59,149,436 Total assets……………………………………………… 72,057,429 73,667,074 Deferred outflows of resources…………………………… 412,535 473,043 Liabilities: Current liabilities (excluding debt)………………………… 691,781 385,535 Noncurrent liabilities (excluding debt)…………………… 197,907 183,077 Current debt ………………………………………………… 2,780,459 2,859,220 Noncurrent debt……………………………………………… 24,929,070 27,709,529 Total liabilities………………………………………… 28,599,217 31,137,361 Deferred inflows of resources……………………………… 5,315 2,601 Net position: Net investment in capital assets………………………… 32,718,167 30,410,288 Unrestricted………………………………………………… 11,147,265 12,589,867 Total net position………………………………………$43,865,432 $43,000,155 2020 2019 Program Revenues: Charges for services…………………………………………$ 7,205,161 $ 6,877,667 General Revenues: Unrestricted investment income…………………………… 120,922 179,066 Total revenues………………………………………… 7,326,083 7,056,733 Expenses: Water………………………………………………………… 3,676,666 3,616,818 Sewer………………………………………………………… 2,784,140 2,627,933 Total expenses………………………………………… 6,460,806 6,244,751 Change in net position……………………………………… 865,277 811,982 Net position, beginning of year…………………………… 43,000,155 42,188,173 Net position, end of year……………………………………$43,865,432 $43,000,155 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 $10.1 million, assigned fund balance was $468,000, committed fund balance was $398,000 and total fund balance was $11.0 million. Unassigned fund balance represents 19.6% of total general fund Town of Cohasset, Massachusetts 22 Comprehensive Annual Financial Report expenditures, while total fund balance represents 21.3% of that same amount. The General Fund’s fund balance increased by $2.1 million 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 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 $4.5 million, the Facilities Stabilization fund is $2,902, the Special Education Stabilization fund is $383,089, the Pension Reserve Stabilization fund is $364,813 and the Capital Stabilization fund is $1.3 million. 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 $845,000. Unexpended appropriations totaled $3.1 million of which $867,000 was carried forward to year 2021. During 2020, $1.1 million of supplemental appropriations were approved primarily for transfers to stabilization, amending the FY20 operating budget, and the allocation of funds for 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 $61.3 million which represented a net decrease of $1.5 million from the prior year. Major additions include roadway improvements, purchase & installation of LED streetlight project, the purchase of multiple police vehicles, and equipment for various departments. Depreciation expense for 2020 totaled $3.1 million. Enterprise capital assets, net of accumulated depreciation, were valued at $60.1 million at year end. Major additions during the year primarily included various water system upgrades and water building upper roof project. Depreciation of $1.9 million was recorded in 2020. Outstanding long-term debt of governmental activities, as of June 30, 2020, totaled $7.8 million, a decrease of $2.7 million over the prior year which was entirely due to budgeted principal payments. The Water Enterprise fund had $18.7 million of long-term debt outstanding at year-end, a decrease of $2 million from the prior year due to principal payments. The Sewer Enterprise fund had $9 million of long-term debt outstanding at year-end, a decrease of $775,000 from the prior year which was due to principal payments. Please refer to the footnotes for further discussion of the major capital asset and debt activity. Town of Cohasset, Massachusetts 23 Comprehensive Annual Financial Report 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. Governmental Business-type Activities Activities Total ASSETS CURRENT: Cash and cash equivalents………………………………………… $ 15,969,636 $ 2,526,231 $ 18,495,867 Investments…………………………………………………………… 8,650,188 2,055,879 10,706,067 Receivables, net of allowance for uncollectibles: Real estate and personal property taxes……………………… 431,793 - 431,793 Tax liens……………………………………...…………………… 914,330 - 914,330 Motor vehicle and other excise taxes…………………………… 90,798 - 90,798 User charges……………………………………………………… - 1,877,265 1,877,265 Departmental and other………………………………………… 264,531 - 264,531 Intergovernmental….……………………………………………… 748,394 - 748,394 Special assessments……………………………………………… 327,324 602,490 929,814 Total current assets…………………………………………… 27,396,994 7,061,865 34,458,859 NONCURRENT: Receivables, net of allowance for uncollectibles: Special assessments……………………………………………… 549,779 4,934,113 5,483,892 Capital assets, nondepreciable……………………………………… 7,800,465 1,660,609 9,461,074 Capital assets, net of accumulated depreciation………………… 53,539,444 58,400,842 111,940,286 Total noncurrent assets……………………………………… 61,889,688 64,995,564 126,885,252 TOTAL ASSETS………………………………………………………… 89,286,682 72,057,429 161,344,111 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows for refunding debt……………………………… 105,844 366,245 472,089 Deferred outflows related to pensions……………………………… 1,767,964 6,200 1,774,164 Deferred outflows related to OPEB………………………………… 22,209,757 40,090 22,249,847 TOTAL DEFERRED OUTFLOWS OF RESOURCES……………… 24,083,565 412,535 24,496,100 LIABILITIES CURRENT: Warrants payable…………………………………………………… 965,411 478,787 1,444,198 Accrued payroll……………………………………………………… 280,145 1,150 281,295 Accrued interest……………………………………………………… 51,294 211,844 263,138 Unearned revenue…………………………………………………… 464,547 - 464,547 Notes payable………………………………………………………… 1,253,400 - 1,253,400 Bonds payable………………………………………………………… 2,249,195 2,780,459 5,029,654 Total current liabilities………………………………………… 5,263,992 3,472,240 8,736,232 NONCURRENT: Net pension liability…………………………………………………… 19,236,243 67,458 19,303,701 Net OPEB liability…………………………………………………… 72,268,624 130,449 72,399,073 Bonds payable………………………………………………………… 5,550,889 24,929,070 30,479,959 Total noncurrent liabilities…………………………………… 97,055,756 25,126,977 122,182,733 TOTAL LIABILITIES……………………………………………………… 102,319,748 28,599,217 130,918,965 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions……………………………… 1,393,967 4,888 1,398,855 Deferred inflows related to OPEB…………………………………… 236,460 427 236,887 TOTAL DEFERRED INFLOWS OF RESOURCES…………………… 1,630,427 5,315 1,635,742 NET POSITION Net investment in capital assets………………………………..……… 52,655,651 32,718,167 85,373,818 Restricted for: Debt service…………………………………………………………… 243,576 - 243,576 Permanent funds: Expendable……….……………………………………………… 2,089,706 - 2,089,706 Nonexpendable…………………………………………………… 454,702 - 454,702 Gifts and grants……………………………………………………… 1,981,948 - 1,981,948 Community preservation…………………………………………… 3,785,695 - 3,785,695 Unrestricted………………………………………………………………… (51,791,206) 11,147,265 (40,643,941) TOTAL NET POSITION…………………………………………………$ 9,420,072 $ 43,865,432 $ 53,285,504 See notes to basic financial statements. Primary Government STATEMENT OF NET POSITION JUNE 30, 2020 Town of Cohasset, Massachusetts 27 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……………………… $ 5,805,598 $ 660,215 $ 444,366 $ 25,000 $ (4,676,017) Public safety…………………………………… 9,889,682 1,098,981 92,194 105,378 (8,593,129) Education……………………………………… 37,021,333 947,856 10,211,573 - (25,861,904) Public works…………………………………… 5,035,114 250,154 227,873 372,704 (4,184,383) Health and welfare…………………………… 1,012,589 46,373 131,638 - (834,578) Culture and recreation………………………… 2,181,586 108,987 153,593 - (1,919,006) Community preservation……………………… 251,142 - - 123,225 (127,917) COVID-19……………………………………… 288,493 - 288,493 - - Interest………………………………………… 268,524 - 71,666 - (196,858) Total Governmental Activities……………… 61,754,061 3,112,566 11,621,396 626,307 (46,393,792) Business-Type Activities: Water…………………………………………… 3,676,666 5,281,785 - - 1,605,119 Sewer…………………………………………… 2,784,140 1,923,376 - - (860,764) Total Business-Type Activities…………… 6,460,806 7,205,161 - - 744,355 Total Primary Government…………………$ 68,214,867 $ 10,317,727 $ 11,621,396 $ 626,307 $(45,649,437) See notes to basic financial statements.(Continued) STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2020 Program Revenues Town of Cohasset, Massachusetts 28 Comprehensive Annual Financial Report Governmental Business-Type Activities Activities Total Changes in net position: Net (expense) revenue from previous page………… $(46,393,792) $744,355 $(45,649,437) General revenues: Real estate and personal property taxes, net of tax refunds payable………………………… 39,938,435 - 39,938,435 Motor vehicle and other excise taxes……………… 2,017,829 - 2,017,829 Community preservation tax………………………… 535,239 - 535,239 Penalties and interest on taxes…………………… 144,810 - 144,810 Grants and contributions not restricted to specific programs…………………………………… 584,777 - 584,777 Unrestricted investment income…........................ 629,831 120,922 750,753 Total general revenues………………………………… 43,850,921 120,922 43,971,843 Change in net position…………………………… (2,542,871) 865,277 (1,677,594) Net position: Beginning of year…........................................……… 11,962,943 43,000,155 54,963,098 End of year…………………………………………… $ 9,420,072 $ 43,865,432 $ 53,285,504 See notes to basic financial statements. (Concluded) Primary Government STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2020 Town of Cohasset, Massachusetts 29 Comprehensive Annual Financial Report Nonmajor Total Governmental Governmental General Funds Funds ASSETS Cash and cash equivalents……………………………………$ 5,912,142 $ 10,057,494 $ 15,969,636 Investments…………………………………………………… 5,866,452 2,783,736 8,650,188 Receivables, net of uncollectibles: Real estate and personal property taxes………………… 431,793 - 431,793 Tax liens……………………………………...……………… 904,423 9,907 914,330 Motor vehicle and other excise taxes…………………… 90,798 - 90,798 Departmental and other…………………………………… 259,720 4,811 264,531 Intergovernmental………………………………………… 430,433 317,961 748,394 Special assessments……………………………………… 198,890 678,213 877,103 TOTAL ASSETS………………………………………………$ 14,094,651 $ 13,852,122 $ 27,946,773 LIABILITIES Warrants payable……………………………………………$ 648,282 $ 317,129 $ 965,411 Accrued payroll…………………………………………… 271,629 8,516 280,145 Unearned revenue………………………………………… - 464,547 464,547 Notes payable……………………………………………… - 1,253,400 1,253,400 TOTAL LIABILITIES…………………………………………… 919,911 2,043,592 2,963,503 DEFERRED INFLOWS OF RESOURCES Unavailable revenue……………………………………… 2,209,512 1,007,837 3,217,349 FUND BALANCES Nonspendable……………………………………………… - 454,702 454,702 Restricted…………………………………………………… - 11,233,331 11,233,331 Committed…………………………………………………… 398,305 - 398,305 Assigned…………………………………………………… 468,482 - 468,482 Unassigned………………………………………………… 10,098,441 (887,340) 9,211,101 TOTAL FUND BALANCES…………………………………… 10,965,228 10,800,693 21,765,921 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES…………………$ 14,094,651 $ 13,852,122 $ 27,946,773 See notes to basic financial statements. GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2020 Town of Cohasset, Massachusetts 30 Comprehensive Annual Financial Report Total governmental fund balances………………………………………………………………… $ 21,765,921 Capital assets (net) used in governmental activities are not financial resources and, therefore, are not reported in the funds………………………………………………… 61,339,909 Accounts receivable are not available to pay for current-period expenditures and, therefore, are unavailable in the funds………………………………… 3,217,349 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…………………………………… 22,453,138 In the statement of activities, interest is accrued on outstanding long-term debt, whereas in governmental funds interest is not reported until due………………………… (51,294) Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds: Bonds payable………………………………………………………………………………… (7,800,084) Net pension liability…………………………………………………………………………… (19,236,243) Net OPEB liability…………………………………………………………………………… (72,268,624) Net effect of reporting long-term liabilities…………………………………………… (99,304,951) Net position of governmental activities…………………………………………………………… $ 9,420,072 See notes to basic financial statements. RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION JUNE 30, 2020 Town of Cohasset, Massachusetts 31 Comprehensive Annual Financial Report Nonmajor Total Governmental Governmental General Funds Funds REVENUES: Real estate and personal property taxes, net of tax refunds……………………………………………$ 39,889,417 $ - $ 39,889,417 Motor vehicle and other excise taxes………………………… 2,025,097 - 2,025,097 Charges for services…………………………………………… - 1,166,319 1,166,319 Penalties and interest on taxes………………………………… 142,887 1,923 144,810 Fees……………………………………………………………… 836,319 - 836,319 Licenses and permits…………………………………………… 811,007 - 811,007 Fines and forfeitures…………………………………………… 31,464 - 31,464 Intergovernmental - Teachers Retirement…………………… 5,803,128 - 5,803,128 Intergovernmental……………………………………………… 4,116,957 2,559,370 6,676,327 Intergovernmental - COVID-19 relief………………………… - 288,493 288,493 Departmental and other………………………………………… 265,844 132,516 398,360 Community preservation taxes………………………………… - 536,245 536,245 Special assessments…………………………………………… 346,829 96,938 443,767 Contributions and donations…………………………………… - 252,731 252,731 Investment income……………………………………………… 444,078 185,753 629,831 TOTAL REVENUES…………………………………… 54,713,027 5,220,288 59,933,315 EXPENDITURES: Current: Administrative services……………………………………… 3,316,366 983,208 4,299,574 Public safety………………………………………………… 5,602,419 524,041 6,126,460 Education…………………………………………………… 20,084,535 2,720,231 22,804,766 Public works………………………………………………… 3,295,862 1,064,684 4,360,546 Health and welfare…………………………………………… 550,739 137,089 687,828 Culture and recreation……………………………………… 822,469 740,349 1,562,818 Community preservation…………………………………… - 251,142 251,142 COVID-19…………………………………………………… - 288,493 288,493 Pension benefits…………………………………………… 2,455,248 - 2,455,248 Pension benefits - Teachers Retirement………………… 5,803,128 - 5,803,128 Employee benefits…………………………………………… 6,118,050 - 6,118,050 State and county charges……………………………………… 560,848 - 560,848 Debt service: Principal……………………………………………………… 2,617,267 - 2,617,267 Interest………………………………………………………… 302,567 - 302,567 TOTAL EXPENDITURES……………………………… 51,529,498 6,709,237 58,238,735 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES…………………………… 3,183,529 (1,488,949) 1,694,580 OTHER FINANCING SOURCES (USES): Transfers in……………………………………………………… 565,114 1,893,258 2,458,372 Transfers out…………………………………………………… (1,680,156) (778,216) (2,458,372) TOTAL OTHER FINANCING SOURCES (USES)…… (1,115,042) 1,115,042 - NET CHANGE IN FUND BALANCES…………………………… 2,068,487 (373,907) 1,694,580 FUND BALANCES AT BEGINNING OF YEAR………………… 8,896,741 11,174,600 20,071,341 FUND BALANCES AT END OF YEAR……………………………$ 10,965,228 $ 10,800,693 $ 21,765,921 See notes to basic financial statements. GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2020 Town of Cohasset, Massachusetts 32 Comprehensive Annual Financial Report Net change in fund balances - total governmental funds………………………………………………………… $ 1,694,580 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……………………………………………………………………………………………… 1,596,663 Depreciation expense……………………………………………………………………………………… (3,092,937) Net effect of reporting capital assets……………………………………………………………… (1,496,274) 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………………………………………………………… (722,125) 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…………………………………………………………………… 76,972 Net amortization of premium from issuance of bonds………………………………………………… 67,783 Net change in deferred charge on refunding…………………………………………………………… (66,171) Debt service principal payments………………………………………………………………………… 2,617,267 Net effect of reporting long-term debt…………………………………………………………… 2,695,851 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……………………………………………………… 32,431 Net change in deferred outflow/(inflow) of resources related to pensions…………………………… (4,466,068) Net change in net pension liability………………………………………………………………………… 4,061,232 Net change in deferred outflow/(inflow) of resources related to OPEB……………………………… 11,629,816 Net change in net OPEB liability………………………………………………………………………… (16,105,540) Net change in landfill closure…………………………………………………………………….……… 133,226 Net effect of recording long-term liabilities……………………………………………………… (4,714,903) Change in net position of governmental activities………………………………………………………………… $ (2,542,871) 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, 2020 Town of Cohasset, Massachusetts 33 Comprehensive Annual Financial Report Business-type Activities - Enterprise Funds Water Sewer Total ASSETS CURRENT: Cash and cash equivalents………………………………………………$ 1,959,261 $ 566,970 $ 2,526,231 Investments………………………………………………………………… 5,830 2,050,049 2,055,879 Receivables, net of allowance for uncollectibles: User charges…………………………………………………………… 1,346,743 530,522 1,877,265 Special assessments………………………………………………… - 602,490 602,490 Total current assets………………………………………………… 3,311,834 3,750,031 7,061,865 NONCURRENT: Receivables, net of allowance for uncollectibles: Special assessments………………………………………………… - 4,934,113 4,934,113 Capital assets, non depreciable………………………………………… 1,659,600 1,009 1,660,609 Capital assets, net of accumulated depreciation……………………… 31,227,773 27,173,069 58,400,842 Total noncurrent assets…………………………………………… 32,887,373 32,108,191 64,995,564 TOTAL ASSETS……………………………………………………………… 36,199,207 35,858,222 72,057,429 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding……………………………………………… 366,245 - 366,245 Deferred outflows related to pensions…………………………………… - 6,200 6,200 Deferred outflows related to OPEB……………………………………… - 40,090 40,090 TOTAL DEFERRED OUTFLOWS OF RESOURCES…………………… 366,245 46,290 412,535 LIABILITIES CURRENT: Warrants payable………………………………………………………… 337,068 141,719 478,787 Accrued payroll…………………………………………………………… - 1,150 1,150 Accrued interest…………………………………………………………… 130,923 80,921 211,844 Bonds payable……………………………………………………………… 1,998,456 782,003 2,780,459 Total current liabilities……………………………………………… 2,466,447 1,005,793 3,472,240 NONCURRENT: Net pension liability………………………………………………………… - 67,458 67,458 Net OPEB liability…………………………………………………..……… - 130,449 130,449 Bonds payable……………………………………………………………… 16,665,540 8,263,530 24,929,070 Total noncurrent liabilities………………………………………… 16,665,540 8,461,437 25,126,977 TOTAL LIABILITIES…………………………………………………………… 19,131,987 9,467,230 28,599,217 DEFERRED INFLOWS OF RESOURCES Deferred inflows related to pensions…………………………………… - 4,888 4,888 Deferred inflows related to OPEB…………………….………………… - 427 427 TOTAL DEFERRED INFLOWS OF RESOURCES……………………… - 5,315 5,315 NET POSITION Net investment in capital assets………………………………..…………… 14,589,622 18,128,545 32,718,167 Unrestricted…………………………………………………………………… 2,843,843 8,303,422 11,147,265 TOTAL NET POSITION………………………………………………………$ 17,433,465 $ 26,431,967 $ 43,865,432 See notes to basic financial statements. PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2020 Town of Cohasset, Massachusetts 34 Comprehensive Annual Financial Report Business-type Activities - Enterprise Funds Water Sewer Total OPERATING REVENUES: Charges for services………………………………………………… $ 5,281,785 $ 1,923,376 $ 7,205,161 OPERATING EXPENSES: Cost of services and administration………………………………… 2,082,909 1,740,099 3,823,008 Depreciation…………………………………………………………… 1,098,848 832,679 1,931,527 TOTAL OPERATING EXPENSES……………………………… 3,181,757 2,572,778 5,754,535 OPERATING INCOME (LOSS)………………………………… 2,100,028 (649,402) 1,450,626 NONOPERATING REVENUES (EXPENSES): Investment income…………………………………………………… 10,184 110,738 120,922 Interest expense……………………………………………………… (494,909) (211,362) (706,271) TOTAL NONOPERATING REVENUES (EXPENSES), NET……………………………… (484,725) (100,624) (585,349) CHANGE IN NET POSITION…………………………………… 1,615,303 (750,026) 865,277 NET POSITION AT BEGINNING OF YEAR….................................… 15,818,162 27,181,993 43,000,155 NET POSITION AT END OF YEAR…………………………………… $ 17,433,465 $ 26,431,967 $ 43,865,432 See notes to basic financial statements. PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2020 Town of Cohasset, Massachusetts 35 Comprehensive Annual Financial Report Business-type Activities - Enterprise Funds Water Sewer Total CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and users………………………………………………$ 5,122,279 $ 1,893,408 $ 7,015,687 Payments to vendors……………………………………………………………… (1,863,264) (1,575,448) (3,438,712) Payments to employees…………………………………………………………… - (45,352) (45,352) NET CASH FROM OPERATING ACTIVITIES……………………………………… 3,259,015 272,608 3,531,623 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Special assessments……………………………………………………………… - 645,125 645,125 Acquisition and construction of capital assets…………………………………… (470,806) (977,933) (1,448,739) Principal payments on bonds and notes………………………………………… (1,943,829) (774,833) (2,718,662) Interest expense…………………………………………………………………… (583,419) (218,056) (801,475) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES………… (2,998,054) (1,325,697) (4,323,751) CASH FLOWS FROM INVESTING ACTIVITIES: Sale (purchase) of investments…………………………………………………… (195) (168,505) (168,700) Investment income………………………………………………………………… 10,184 110,738 120,922 NET CASH FROM INVESTING ACTIVITIES………………………………………… 9,989 (57,767) (47,778) NET CHANGE IN CASH AND CASH EQUIVALENTS……………………………… 270,950 (1,110,856) (839,906) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR…………………… 1,688,311 1,677,826 3,366,137 CASH AND CASH EQUIVALENTS AT END OF YEAR……………………………$ 1,959,261 $ 566,970 $ 2,526,231 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH FROM OPERATING ACTIVITIES: Operating income (loss)……………………………………………………………$ 2,100,028 $ (649,402) $ 1,450,626 Adjustments to reconcile operating income to net cash from operating activities: Depreciation……………………………………………………………………… 1,098,848 832,679 1,931,527 Deferred (outflows)/inflows related to pensions……………………………… - 15,661 15,661 Deferred (outflows)/inflows related to OPEB………………………………… - (20,992) (20,992) Changes in assets and liabilities: User charges………………………………………………………………… (159,506) (29,968) (189,474) Warrants payable…………………………………………………………… 219,645 109,341 328,986 Accrued payroll……………………………………………………………… - 459 459 Net pension liability…………………………………………………………… - (14,242) (14,242) Net OPEB liability…………………………………………………………… - 29,072 29,072 Total adjustments………………………………………………………… 1,158,987 922,010 2,080,997 NET CASH FROM OPERATING ACTIVITIES………………………………………$ 3,259,015 $ 272,608 $ 3,531,623 See notes to basic financial statements. PROPRIETARY FUNDS STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2020 Town of Cohasset, Massachusetts 36 Comprehensive Annual Financial Report Other Postemployment Private Benefit Purpose Agency Trust Fund Trust Funds Funds ASSETS Cash and cash equivalents…………………………………………$ 355,560 $ 15,220 $ 477,334 Investments: Investments in Pension Reserve Investment Trust………… 1,694,502 - - Mutual funds……………………………………………………… 1,850,924 - - Equity securities………………………………………………… - 988,428 - Receivables, net of allowance for uncollectibles: Departmental and other………………………………………… - - 480,768 TOTAL ASSETS………………………………………………………… 3,900,986 1,003,648 958,102 LIABILITIES Warrants payable…………………………………………………… - - 443,643 Liabilities due depositors…………………………………………… - - 370,658 Other liabilities……………………………………………………… - - 143,801 TOTAL LIABILITIES…………………………………………………… - - 958,102 NET POSITION Restricted for OPEB benefits……………………………………… 3,900,986 - - Held in trust for other purposes…………………………….……… - 1,003,648 - TOTAL NET POSITION……………………………………………… $ 3,900,986 $ 1,003,648 $ - See notes to basic financial statements. FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2020 Town of Cohasset, Massachusetts 37 Comprehensive Annual Financial Report Other Postemployment Private Benefit Purpose Trust Fund Trust Funds ADDITIONS: Contributions: Employer contributions………………………………………………………$ 500,000 $ - Employer contributions for OPEB payments……………………………… 1,801,843 - Private donations…………………………………………………………… - 257 Total contributions………………………………………………………… 2,301,843 257 Net investment income: Interest………………………………………………………………………… 72,379 39,836 TOTAL ADDITIONS……………………………………………………… 2,374,222 40,093 DEDUCTIONS: OPEB benefit payments…………………………………………………… 1,801,843 - Educational scholarships…………………………………………………… - 9,300 TOTAL DEDUCTIONS…………………………………………………… 1,801,843 9,300 NET INCREASE (DECREASE) IN NET POSITION………………… 572,379 30,793 NET POSITION AT BEGINNING OF YEAR………………………………… 3,328,607 972,855 NET POSITION AT END OF YEAR……………………………………………$ 3,900,986 $ 1,003,648 See notes to basic financial statements. FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2020 Town of Cohasset, Massachusetts 38 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2020 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 Select Board 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 publicly 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 2020, Cohasset’s share of the operating and debt expenses was $55,649. 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. 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 Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 40 Comprehensive Annual Financial Report rewards of operating a regional 911 call center. The Center became operational as of January 1, 2012, and the Town’s 2020 assessment totaled $355,043. 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 publicly 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 recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 41 Comprehensive Annual Financial Report 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, 2020 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 allow 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, 2020 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, 2020 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, 2020 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, 2020 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, 2020, 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, 2020, the Town reported deferred inflows of resources related to pensions and OPEB 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, 2020 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 Clean Water 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 allow 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, 2020 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 Select Board 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, 2020 Town of Cohasset, Massachusetts 49 Comprehensive Annual Financial Report reported by the Systems. 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, 2020 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 $840,018 and the MCWT septic loan program fund had a year-end deficit of $47,322. The deficits 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 $15,069,240 and the bank balance totaled $15,284,339. Of the bank balance, $1,676,012 was covered by Federal Depository Insurance, $4,627,104 was covered by DIF Insurance, and $8,981,223 was exposed to custodial credit risk because it was uninsured and uncollateralized. Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 51 Comprehensive Annual Financial Report At year-end the carrying amount of deposits for the Pratt Memorial Library Trust totaled $176,012. The bank balance totaled $176,012 all of which was covered by Federal Depository Insurance. Investments As of June 30, 2020, the Town had the following investments: Investment Type Fair value Under 1 Year 1-5 Years 6-10 Years Debt securities: U.S. treasury bonds………………………………$ 2,044,882 $ 225,516 $ 1,674,786 $ 144,580 Government sponsored enterprises…………… 1,734,750 176,492 1,396,810 161,448 Corporate bonds........................................... 1,691,103 428,068 1,050,573 212,462 Total debt securities..................................... 5,470,735 $ 830,076 $ 4,122,169 $ 518,490 Other investments: Equity securities.......................................... 5,106,727 Equity mutual funds……………………………… 2,459,708 Fixed income……………………………………… 508,249 Money market mutual funds…………………… 188,685 Pension Reserve Investment Trust (PRIT)……… 1,694,502 MMDT - Cash portfolio…………………………… 4,086,056 Total investments......................................... $ 19,514,662 Maturities As of June 30, 2020, the Pratt Memorial Library Trust had $1,506,949 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, $5,470,735 of debt securities, and $5,106,727 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 an 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, 2020, 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 AAA to BBB. Notes to Basic Financial Statements Year Ended June 30, 2020 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, 2020: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable June 30, Assets Inputs Inputs Investment Type 2020 (Level 1) (Level 2) (Level 3) Investments measured at fair value: Debt securities: U.S. treasury bonds…………………………… $ 2,044,882 $ 2,044,882 $ - $ - Government sponsored enterprises…………… 1,734,750 1,734,750 - - Corporate bonds......................................... 1,691,103 - 1,691,103 - Total debt securities.................................... 5,470,735 3,779,632 1,691,103 - Other investments: Equity securities......................................... 5,106,727 5,106,727 - - Equity mutual funds……………………………… 2,459,708 2,459,708 - - Fixed income…………………………………… 508,249 508,249 - - Money market mutual funds…………………… 188,685 188,685 - - Total other investments................................ 8,263,369 8,263,369 - - Total investments measured at fair value………… 13,734,104 $ 12,043,001 $ 1,691,103 $ - Investments measured at amortized cost: MMDT - Cash portfolio………………………… 4,086,056 Investments measured at net asset value: Pension Reserve Investment Trust (PRIT)…… 1,694,502 Total investments……………………………………$ 19,514,662 Fair Value Measurements Using Notes to Basic Financial Statements Year Ended June 30, 2020 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, 2020, of $1,506,949 are measured at fair value using quoted prices in active markets for identical assets (Level 1). NOTE 3 – RECEIVABLES At June 30, 2020, receivables for the individual major and non-major governmental funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows: Allowance Gross for Net Amount Uncollectibles Amount Receivables: Real estate and personal property taxes………$ 431,793 $ - $ 431,793 Tax liens……………………………………...… 914,330 - 914,330 Motor vehicle and other excise taxes………… 90,798 - 90,798 Departmental and other………………………… 264,531 - 264,531 Intergovernmental………………………………… 748,394 - 748,394 Special assessments…………………………… 877,103 - 877,103 Total………………………………………………$ 3,326,949 $ - $ 3,326,949 At June 30, 2020, receivables for the sewer and water enterprise funds consist of the following: `Allowance Gross for Net Amount Uncollectibles Amount Receivables: Water user charges…………………………$ 1,346,743 $ - $ 1,346,743 Sewer user charges………………………… 530,522 - 530,522 Sewer special assessments……………… 5,536,603 - 5,536,603 Total………………………………………… $ 7,413,868 $ - $ 7,413,868 Notes to Basic Financial Statements Year Ended June 30, 2020 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……………$322,193 $ - $ 322,193 Tax liens……………………………………...………… 904,423 9,907 914,330 Motor vehicle and other excise taxes……………… 90,798 - 90,798 Departmental and other……………………………… 259,719 4,812 264,531 Intergovernmental……………………………………… 433,489 314,905 748,394 Special assessments………………………………… 198,890 678,213 877,103 Total…………………………………………………… $ 2,209,512 $ 1,007,837 $ 3,217,349 NOTE 4 – CAPITAL ASSETS Capital asset activity for the year ended June 30, 2020, was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital assets not being depreciated: Land………………………………………………… $ 7,297,295 $ - $ - $ 7,297,295 Construction in progress…………………………… 550,679 169,579 (217,088) 503,170 Total capital assets not being depreciated…… 7,847,974 169,579 (217,088) 7,800,465 Capital assets being depreciated: Land improvements………………………………… 1,022,162 - - 1,022,162 Buildings and improvements……………………… 68,123,399 - - 68,123,399 Machinery and equipment………………………… 3,829,476 778,871 - 4,608,347 Vehicles……………………………………………… 5,615,559 148,987 - 5,764,546 Infrastructure………………………………………… 32,121,814 716,314 - 32,838,128 Total capital assets being depreciated……… 110,712,410 1,644,172 - 112,356,582 Less accumulated depreciation for: Land improvements………………………………… (328,108) (35,380) - (363,488) Buildings and improvements……………………… (31,201,859) (1,593,137) - (32,794,996) Machinery and equipment………………………… (2,465,588) (330,682) - (2,796,270) Vehicles……………………………………………… (3,902,973) (317,749) - (4,220,722) Infrastructure………………………………………… (17,825,673) (815,989) - (18,641,662) Total accumulated depreciation……………… (55,724,201) (3,092,937) - (58,817,138) Total capital assets being depreciated, net………… 54,988,209 (1,448,765) - 53,539,444 Total governmental activities capital assets, net……$ 62,836,183 $ (1,279,186) $ (217,088) $ 61,339,909 Notes to Basic Financial Statements Year Ended June 30, 2020 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…………………………… 86,245 420,806 (155,000) 352,051 Total capital assets not being depreciated…… 1,393,794 420,806 (155,000) 1,659,600 Capital assets being depreciated: Buildings and improvements……………………… 65,069 - - 65,069 Machinery and equipment………………………… 526,294 155,000 - 681,294 Vehicles……………………………………………… 48,858 50,000 - 98,858 Infrastructure………………………………………… 49,729,000 - - 49,729,000 Total capital assets being depreciated……… 50,369,221 205,000 - 50,574,221 Less accumulated depreciation for: Buildings and improvements……………………… (19,515) (3,003) - (22,518) Machinery, equipment and vehicles……………… (103,294) (45,663) - (148,957) Vehicles……………………………………………… (27,687) (12,272) - (39,959) Infrastructure………………………………………… (18,097,104) (1,037,910) - (19,135,014) Total accumulated depreciation……………… (18,247,600) (1,098,848) - (19,346,448) Total capital assets being depreciated, net………… 32,121,621 (893,848) - 31,227,773 Total water activities capital assets, net………………$ 33,515,415 $ (473,042) $ (155,000) $ 32,887,373 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………………………… 4,827,061 977,933 - 5,804,994 Infrastructure………………………………………… 33,351,017 - - 33,351,017 Total capital assets being depreciated……… 39,299,862 977,933 - 40,277,795 Less accumulated depreciation for: Buildings and improvements……………………… (387,385) (18,696) - (406,081) Machinery and equipment………………………… (2,696,241) (184,071) - (2,880,312) Infrastructure………………………………………… (9,188,421) (629,912) - (9,818,333) Total accumulated depreciation……………… (12,272,047) (832,679) - (13,104,726) Total capital assets being depreciated, net………… 27,027,815 145,254 - 27,173,069 Total sewer activities capital assets, net…………… $ 27,028,824 $ 145,254 $ - $ 27,174,078 Notes to Basic Financial Statements Year Ended June 30, 2020 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…………………………………………………$223,116 Public safety…………………………………………………………… 247,903 Education………………………………………………………………… 1,459,536 Public works…………………………………………………………… 965,758 Health & welfare………………………………………………………… 35,785 Culture and recreation………………………………………………… 160,839 Total depreciation expense - governmental activities……………………$ 3,092,937 Business-Type Activities: Water…………………………………………………………………..…$ 1,098,848 Sewer…………………………………………………………………..… 832,679 Total depreciation expense - business-type activities………………… $ 1,931,527 NOTE 5 – INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2020, are summarized as follows: Nonmajor General governmental Transfers Out: fund funds Total General fund……………………………$- $ 1,680,156 $ 1,680,156 Nonmajor governmental funds……… 565,114 213,102 778,216 Total……………………………………$ 565,114 $ 1,893,258 $ 2,458,372 Transfers In: Budgeted transfers between the general fund, special revenue funds, capital projects funds and permanent funds. NOTE 6 – 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, 2020 Town of Cohasset, Massachusetts 57 Comprehensive Annual Financial Report Details related to the Town’s short-term debt activity for the year ended June 30, 2020 are as follows: Balance at Balance at Rate June 30, Renewed/ Retired/ June 30, Type Purpose (%) Due Date 2019 Issued Redeemed 2020 Governmental Funds BAN Bond Anticipation Note…… 2.90% 06/19/20 $ 158,000 $ - $ (158,000) $ - BAN Bond Anticipation Note…… 2.00% 06/19/20 921,400 - (921,400) - BAN Bond Anticipation Note…… 0.00% 06/18/21 - 158,000 - 158,000 BAN Bond Anticipation Note…… 1.25% 06/18/21 - 945,400 - 945,400 Subtotal for General Obligation Bonds Payable….............................................................................. 1,103,400 Direct Borrowings Payable: BAN MCWT……………………… 0.00% 06/30/20 150,000 - (150,000) - BAN MCWT……………………… 0.00% 06/30/21 - 150,000 - 150,000 Total Governmental Funds………………………………$ 1,229,400 $ 1,253,400 $ (1,229,400) $ 1,253,400 NOTE 7 – 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". Details related to the Town’s outstanding general obligation indebtedness at June 30, 2020, and the debt service requirements are as follows on the next page. Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 58 Comprehensive Annual Financial Report Original Interest Outstanding Maturities Loan Rate at June 30, Project Through Amount (%) 2020 Governmental Funds: General Obligation Bonds Payable: General Obligation Refunding Bonds of 2010… 2021 $ 835,000 1.50-2.50 $ 75,000 General Obligation Refunding Bonds of 2012… 2024 8,812,600 1.80 3,355,000 General Obligation Refunding Bonds of 2013… 2026 496,850 2.00-3.00 171,000 General Obligation Bonds of 2013……………… 2024 59,000 2.00-3.00 20,000 General Obligation Bonds of 2016……………… 2026 1,030,000 2.00-3.00 645,000 General Obligation Refunding Bonds of 2016… 2027 193,500 2.00-3.00 157,000 General Obligation Bonds of 2017……………… 2037 842,000 3.00-4.00 717,756 General Obligation Refunding Bonds of 2017… 2030 166,800 3.00-4.00 166,800 Subtotal General Obligation Bonds Payable…………….……………………………………… 5,307,556 Direct Borrowings Payable: MCWT………………………………………………… 2021 $ 12,495,211 5.20-5.30 870,000 MCWT………………………………………………… 2031 900,000 2.00 539,108 MCWT………………………………………………… 2033 1,500,000 2.3-3.0 975,000 Subtotal Direct Borrowings Payable…………….……………………………………………… 2,384,108 Add: Unamortized premium on bonds…………………………………………………………… 108,420 Total Bonds Payable, net…………….………………………………………………………………$ 7,800,084 Debt service requirements for principal and interest for governmental bonds payable in future years are as follows on the next page. Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 59 Comprehensive Annual Financial Report Year Principal Interest Total 2021……………$ 1,209,517 $ 147,260 $ 1,356,777 2022…………… 1,086,863 105,818 1,192,681 2023…………… 1,069,824 70,611 1,140,435 2024…………… 1,050,600 39,155 1,089,755 2025…………… 198,192 20,696 218,888 2026…………… 180,000 15,398 195,398 2027…………… 60,824 10,364 71,188 2028…………… 46,665 8,912 55,577 2029…………… 46,522 7,315 53,837 2030…………… 47,397 6,936 54,333 2031…………… 45,289 5,998 51,287 2032…………… 46,200 5,088 51,288 2033…………… 47,128 4,159 51,287 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……………$ 5,307,556 $ 454,680 $ 5,762,236 General Obligations Bonds Payable Year Principal Interest Total 2021……………$989,256 $ 33,177 $ 1,022,433 2022…………… 120,151 9,446 129,597 2023…………… 121,064 8,533 129,597 2024…………… 121,994 7,603 129,597 2025…………… 122,944 6,653 129,597 2026…………… 123,912 5,685 129,597 2027…………… 124,900 4,697 129,597 2028…………… 125,908 3,689 129,597 2029…………… 126,937 2,660 129,597 2030…………… 127,986 1,611 129,597 2031…………… 129,056 541 129,597 2032…………… 75,000 - 75,000 2033…………… 75,000 - 75,000 Total……………$ 2,384,108 $ 84,295 $ 2,468,403 Direct Borrowings Payable 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 $430,433 have been recorded as an intergovernmental receivable in the general fund. Future interest subsidies total $22,837 and will be recognized as revenue when received. During 2020, the Town’s principal and interest subsidy amounted to approximately $590,000. Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 60 Comprehensive Annual Financial Report Enterprise Debt – Sewer Fund Original Interest Outstanding Maturities Loan Rate at June 30, Project Through Amount (%) 2020 Sewer Enterprise Fund General Obligation Bonds Payable: General Obligation Refunding Bonds of 2012… 2023 $ 46,000 1.80 $ 15,000 General Obligation Bonds of 2013……………… 2033 669,348 2.00-3.00 460,000 General Obligation Bonds of 2016……………… 2026 570,000 2.00-3.00 360,000 General Obligation Refunding Bonds of 2016… 2029 193,500 2.00-3.00 167,500 General Obligation Refunding Bonds of 2017… 2030 495,500 3.00-4.00 495,500 Subtotal General Obligation Bonds Payable…………….……………………………………… 1,498,000 Direct Borrowings Payable: MCWT………………………………………………… 2031 $ 12,600,000 2.00 7,547,533 Total Bonds Payable…………….…………………………………………………………………$ 9,045,533 Debt service requirements for principal and interest for Sewer Enterprise Fund bonds payable in future years are as follows: Year Principal Interest Total 2021……………$ 162,400 $ 44,757 $ 207,157 2022…………… 160,800 40,343 201,143 2023…………… 165,800 35,636 201,436 2024…………… 161,000 30,325 191,325 2025…………… 158,000 25,395 183,395 2026…………… 166,000 20,365 186,365 2027…………… 101,000 15,173 116,173 2028…………… 110,000 11,940 121,940 2029…………… 109,000 8,350 117,350 2030…………… 84,000 5,520 89,520 2031…………… 40,000 3,000 43,000 2032…………… 40,000 1,800 41,800 2033…………… 40,000 600 40,600 Total……………$ 1,498,000 $ 243,204 $ 1,741,204 General Obligation Bonds Payable Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 61 Comprehensive Annual Financial Report Year Principal Interest Total 2021……………$ 619,603 $ 144,755 $ 764,358 2022…………… 632,120 132,237 764,357 2023…………… 644,889 119,467 764,356 2024…………… 657,918 106,439 764,357 2025…………… 671,209 93,148 764,357 2026…………… 684,769 79,588 764,357 2027…………… 698,603 65,754 764,357 2028…………… 712,716 51,641 764,357 2029…………… 727,114 37,243 764,357 2030…………… 741,803 22,554 764,357 2031…………… 756,789 7,568 764,357 Total……………$ 7,547,533 $ 860,394 $ 8,407,927 Direct Borrowings Payable Enterprise Debt – Water Fund Original Interest Outstanding Maturities Loan Rate at June 30, Project Through Amount (%) 2020 Water Enterprise Fund General Obligation Bonds Payable: General Obligation Refunding Bonds of 2010… 2021 $ 455,500 1.50-2.50 $ 115,000 General Obligation Refunding Bonds of 2013… 2026 4,533,550 2.00-3.00 2,489,000 General Obligation Bonds of 2013……………… 2033 1,853,652 2.00-3.00 1,205,000 General Obligation Refunding Bonds of 2016… 2029 655,000 2.00-3.00 590,500 General Obligation Refunding Bonds of 2017… 2030 8,837,700 3.00-4.00 8,837,700 Subtotal General Obligation Bonds Payable…………….……………………………………… 13,237,200 Direct Borrowings Payable: MCWT………………………………………………… 2027 $ 1,435,545 2.00 569,834 MCWT………………………………………………… 2031 6,574,884 2.00 3,938,425 MCWT………………………………………………… 2029 307,602 2.00 167,607 Subtotal Direct Borrowings Bonds Payable…………….……………………………………… 4,675,866 Add: Unamortized premium on bonds…………………………………………………………… 750,930 Total Bonds Payable, net…………….………………………………………………………………$ 18,663,996 Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 62 Comprehensive Annual Financial Report Debt service requirements for principal and interest for Water Enterprise Fund bonds payable in future years are as follows: Year Principal Interest Total 2021……………$ 1,445,200 $ 430,817 $ 1,876,017 2022…………… 1,335,200 386,028 1,721,228 2023…………… 1,353,000 338,807 1,691,807 2024…………… 1,387,800 292,148 1,679,948 2025…………… 1,439,000 246,420 1,685,420 2026…………… 1,375,000 199,790 1,574,790 2027…………… 1,130,000 155,155 1,285,155 2028…………… 1,181,000 111,265 1,292,265 2029…………… 1,153,000 66,450 1,219,450 2030…………… 1,133,000 26,145 1,159,145 2031…………… 100,000 7,650 107,650 2032…………… 100,000 4,650 104,650 2033…………… 105,000 - 105,000 Total……………$ 13,237,200 $ 2,265,325 $ 15,502,525 General Obligation Bonds Payable Year Principal Interest Total 2021……………$ 417,089 $ 89,346 $ 506,435 2022…………… 425,516 80,920 506,436 2023…………… 434,112 72,324 506,436 2024…………… 442,882 63,554 506,436 2025…………… 451,829 54,607 506,436 2026…………… 460,956 45,479 506,435 2027…………… 470,269 36,167 506,436 2028…………… 391,655 27,548 419,203 2029…………… 399,568 19,635 419,203 2030…………… 387,085 11,769 398,854 2031…………… 394,905 3,949 398,854 Total……………$ 4,675,866 $ 505,298 $ 5,181,164 Direct Borrowings Payable Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 63 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, 2020, the Town had the following authorized and unissued debt: Purpose Amount Septic System……………………………………………………………$1,250,000 Department of Public Works Vehicles and Equipment……………… 10,000 Bound Brook Dam………………………………………………………… 581,400 Bear Hill Water Tank Painting & Repairs……………………………… 165,000 Town Hall Design………………………………………………………… 300,000 Border Street Bridget…………………………………………………… 810,000 Private Roadway Betterments…………………………………………… 500,000 Total…………………………………………………………………………$ 3,616,400 Changes in Long-term Liabilities During the year ended June 30, 2020, 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…………………$ 10,308,931 $ - $ (2,617,267) $- $ - $ 7,691,664 $ 2,198,773 Add: Unamortized premium on bonds… 176,203 - - - (67,783) 108,420 50,422 Total bonds payable……………………… 10,485,134 - (2,617,267) - (67,783) 7,800,084 2,249,195 Capital lease obligations………………… 76,972 - - - (76,972) - - Landfill closure……………………………… 133,226 - - - (133,226) - - Net pension liability……………………… 23,297,475 - - 2,982,233 (7,043,465) 19,236,243 - Net OPEB liability………………………… 56,163,084 - - 18,403,316 (2,297,776) 72,268,624 - Total governmental activity long-term liabilities………………………$ 90,155,891 $ - $ (2,617,267) $ 21,385,549 $ (9,619,222) $ 99,304,951 $ 2,249,195 Business-Type Activities: Long-term bonds payable…………………$ 29,677,261 $ - $ (2,718,662) $- $ - $ 26,958,599 $ 2,644,292 Add: Unamortized premium on bonds… 891,488 - - - (140,558) 750,930 136,167 Total bonds payable……………………… 30,568,749 - (2,718,662) - (140,558) 27,709,529 2,780,459 Net pension liability……………………… 81,700 - - 4,364 (18,606) 67,458 - Net OPEB liability………………………… 101,377 - - 33,139 (4,067) 130,449 - Total business-type activity long-term liabilities………………………$ 30,751,826 $ - $ (2,718,662) $ 37,503 $ (163,231) $ 27,907,436 $ 2,780,459 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, 2020 Town of Cohasset, Massachusetts 64 Comprehensive Annual Financial Report NOTE 8 – 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 $4,484,465, the Facilities Stabilization fund is $2,902, the Special Education Stabilization fund is $383,089, the Pension Reserve Stabilization fund is $364,813 and the Capital Stabilization fund is $1,331,204. 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, 2020 Town of Cohasset, Massachusetts 65 Comprehensive Annual Financial Report As of June 30, 2020, the governmental fund balance consisted of the following: Nonmajor Total Governmental Governmental General Funds Funds Fund Balances: Nonspendable: Permanent fund principal……………………………$- $ 454,702 $ 454,702 Restricted for: Town grants………………………………………………- 308,633 $ 308,633 School grants………………………………………… - 571,577 571,577 Receipts reserved for appropriation………………… - 1,054,406 1,054,406 Town revolving funds………………………………… - 514,962 514,962 School revolving funds……………………………… - 753,338 753,338 School lunch………………………………………… - 209,541 209,541 Community preservation…………………………… - 3,770,976 3,770,976 Gifts and donations ………………………………… - 1,101,738 1,101,738 Other Town special revenue………………………… - 3,817 3,817 Capital projects non-bonded……………………… - 854,637 854,637 Library expendable trust funds…………………… - 1,438,154 1,438,154 Other expendable trust funds……………………… - 651,552 651,552 Committed to: Administrative services……………………………… 175,842 - 175,842 Public safety………………………………………… 35,894 - 35,894 Education…………………………………………… 68,060 - 68,060 Public works………………………………………… 118,509 - 118,509 Assigned to: Encumbrances: Administrative services……………………………… 115,105 - 115,105 Public safety………………………………………… 6,227 - 6,227 Education…………………………………………… 312,038 - 312,038 Public works………………………………………… 31,825 - 31,825 Health & welfare……………………………………… 787 - 787 Benefits & Insurance………………………………… 2,500 - 2,500 Unassigned……………………………………………… 10,098,441 (887,340) 9,211,101 Total Fund Balances…………….………………………… $ 10,965,228 $ 10,800,693 $ 21,765,921 NOTE 9 – 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. 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 Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 66 Comprehensive Annual Financial Report and injury type. At June 30, 2020, the amount of the liability for workers’ compensation claims and unemployment benefits were immaterial and are therefore not reported. NOTE 10 – 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, 2019. The Town’s portion of the collective pension expense, contributed by the Commonwealth, of $5,803,128 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 $47,853,996 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, 2019. 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. Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 67 Comprehensive Annual Financial Report 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, 2019, was $2,462,635, (20.36%) 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, 2020, the Town reported a liability of $19,303,701 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31, 2019, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1, 2020. The Town’s proportion of the net pension liability 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, 2019, the Town’s proportion was 3.28%. Pension Expense For the year ended June 30, 2020, the Town recognized pension expense of $2,982,076. At June 30, 2020, the Town reported deferred outflows of resources related to pensions of $1,774,164 and deferred inflows of resources related to pensions of $1,398,855. The balances of deferred outflows and inflows related to pensions at June 30, 2020, consist of the following: Deferred Deferred Outflows of Inflows of Deferred Category Resources Resources Total Differences between expected and actual experience………………$ 1,653,974 $ - $ 1,653,974 Difference between projected and actual earnings………………… (543,691) - (543,691) Changes in assumptions……………………………………………… 354,071 - 354,071 Changes in proportion and proportionate share of contributions… 309,810 (1,398,855) (1,089,045) Total deferred outflows/(inflows) of resources……………………… $ 1,774,164 $ (1,398,855) $ 375,309 Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 68 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: 2021………………………………………………………… $ 737,112 2022………………………………………………………… 4,480 2023………………………………………………………… 208,074 2024………………………………………………………… (574,357) Total….................................................................... $ 375,309 Actuarial Assumptions The total pension liability in the January 1, 2020, 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, 2019: Valuation date………………………………… January 1, 2020 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 $18,000 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, 2020 Town of Cohasset, Massachusetts 69 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………………………… 30.50% 6.60% International equities……………………… 15.50% 8.00% Fixed income……………………………… 20.50% 3.80% Real estate………………………………… 9.50% 8.20% Private equity……………………………… 10.00% 9.10% Hedge funds ………………………………… 11.50% 7.20% Real assets………………………………… 2.50% 9.90% Total………………………………………… 100.00% Rate of return For the year ended December 31, 2019, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 16.28%. 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. Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension 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………………………$ 25,071,728 $ 19,303,701 $ 14,402,614 Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 70 Comprehensive Annual Financial Report Changes in Assumptions – The cost of living increase assumption was changed to 3.0% of the first $18,000 of retirement income; the base in the prior valuation was $17,000. Changes in Plan Provisions – None. NOTE 11 – 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 2020, the Town’s age-adjusted contribution to the plan totaled $2.3 million. The Town’s average contribution rate was 8.60% 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 2019, the Town pre-funded future OPEB liabilities by contributing $500,000 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, 2020, the balance of this fund totaled $3.9 million. Employees Covered by Benefit Terms – The following table represents the Plan’s membership at July 1, 2018: Active members……………………………………………… 360 Inactive members currently receiving benefits…………… 206 Total…………………………………………………………… 566 Components of OPEB Liability – The following table represents the components of the Plan’s OPEB liability as of June 30, 2020: Total OPEB liability…………………………………$ 76,300,059 Less: OPEB plan's fiduciary net position……… (3,900,986) Net OPEB liability…………………………………$ 72,399,073 The OPEB plan's fiduciary net position as a percentage of the total OPEB liability…… 5.11% Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 71 Comprehensive Annual Financial Report Significant Actuarial Methods and Assumptions – The total OPEB liability in the July 1, 2018, 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, 2020: Valuation date…………………………… July 1, 2018 Actuarial cost method…………………… Entry age normal Amortization method…………………… Increasing at 3.5% over 30 years on an open amortization period for partial pre-funding. Asset valuation method………………… Market value Healthcare cost trend rate……………… 8.00% for 2018, decreasing 0.50% per year to 5.50%, then grading down to an ultimate trend rate of 3.90%, utilizing the Society of Actuaries Getzen Medical Trend Model. The ultimate medical inflation rate is reached in 2075. Investment rate of return………………… 6.75%, compounded annually, net of fees. Discount rate…………………………… 2.28%, compounded annually, for the measurement as of June 30, 2020. Municipal bond rate……………………… 2.21%, based on the Bond Buyer 20-Bond GO Index published on June 30, 2020. Inflation rate……………………………… 2.4% per year, based on the 2020 Social Security Trustees Report published April 22, 2020. Payroll growth…………………………… 3.50% 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 White Collar Mortality Table, base year 2014, projected with generational mortality improvement using scale MP-2016. Post-retirement mortality - teachers…… RP-2014 White Collar Mortality Table, base year 2014, projected with generational mortality improvement using scale MP-2016. Rate of return – For the year ended June 30, 2020, the annual money-weighted rate of return on investments, net of investment expense, was 1.97%. 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, 2020, and projected arithmetic real rates of return for each major asset class, Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 72 Comprehensive Annual Financial Report 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.…………………………………… 53.50% 5.67% Fixed Income……………………………… 24.00% 2.00% Alternatives………………………………… 10.00% 2.76% Real Estate………………………………… 5.00% 3.70% Timberland………………………………… 2.00% 4.30% Portfolio Completion Strategies………… 5.50% 3.40% Total………………………………………… 100.00% Discount rate – The discount rate used to measure the total OPEB liability was 2.28% as of June 30, 2020. 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 3.50% municipal bond rate, based on the Bond Buyer 20-Bond Go Index published on June 27, 2019, was applied to all periods thereafter to determine the total OPEB liability. Changes in the Net OPEB Liability Plan Total OPEB Fiduciary Net OPEB Liability Net Position Liability (a) (b) (a) - (b) Balances at June 30, 2019…………………………………………$ 59,593,068 $ 3,328,607 $ 56,264,461 Changes for the year: Service cost……………………………………………………… 2,472,047 - 2,472,047 Interest…………………………………………………………… 2,189,678 - 2,189,678 Changes of benefit terms……………………………………… (1,473,101) - (1,473,101) Changes of assumptions ……………………………………… 15,320,210 - 15,320,210 Benefit payments ………………………………………………… (1,801,843) (1,801,843) - Employer contributions………………………………………… - 500,000 (500,000) Employer contributions to pay OPEB benefits ……………… - 1,801,843 (1,801,843) Net investment income………………………………………… - 72,379 (72,379) Net change…………………………………………………… 16,706,991 572,379 16,134,612 Balances at June 30, 2020…………………………………………$ 76,300,059 $ 3,900,986 $ 72,399,073 Increase (Decrease) Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 73 Comprehensive Annual Financial Report 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 2.28%, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.28%) or 1-percentage-point higher (3.28%) than the current rate. Current 1% Decrease Discount Rate 1% Increase (1.28%) (2.28%) (3.28%) Net OPEB liability……………………… $ 87,891,317 $ 72,399,073 $ 60,411,742 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 8.00% for 2018, decreasing 0.50% per year to 5.50%, then grading down to an ultimate trend rate of 3.90%, utilizing the Society of Actuaries Getzen Medical Trend Model. The ultimate medical inflation rate is reached in 2075. The table also presents the net OPEB liability 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……………………… $ 58,277,754 $ 72,399,073 $ 91,293,682 OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the financial reporting year ended June 30, 2020, the Town recognized OPEB expense of $6,785,647 and reported deferred outflows/(inflows) of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Deferred Category Resources Resources Total Differences between expected and actual experience………………$ 1,353,919 $ - $ 1,353,919 Difference between projected and actual earnings………………… 207,970 - 207,970 Changes in assumptions……………………………………………… 20,687,958 (236,887) 20,451,071 Total deferred outflows/(inflows) of resources……………………… $ 22,249,847 $ (236,887) $ 22,012,960 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: 2021………………………………………………………… $ 3,872,031 2022………………………………………………………… 3,872,032 2023………………………………………………………… 3,871,271 2024………………………………………………………… 3,867,001 2025………………………………………………………… 3,877,813 Thereafter…………………………………………………… 2,652,812 Total………………………………………………………… $ 22,012,960 Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 74 Comprehensive Annual Financial Report Changes of Assumptions The discount rate changed from 3.58% as of June 30, 2019 to 2.28% as of June 30, 2020. The health cost trend rates, inflation assumption, and the teacher mortality table and improvement scale have been updated. Changes in Plan Provisions – None. NOTE 12 – 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, 2020, 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, 2020, cannot be ascertained, management believes any resulting liability should not materially affect the financial position at June 30, 2020. NOTE 13 – COVID-19 On March 10, 2020, the Massachusetts Governor declared a state of emergency in response to the coronavirus outbreak. The World Health Organization officially declared the novel Coronavirus (COVID-19) a pandemic the following day. In an attempt to slow the spread of COVID-19, governments issued various stay at home orders that caused global economic shutdowns and substantial financial market impact. Starting in March 2020, the Governor continued to issue orders allowing governments to operate and carry out essential functions safely. These included modifying the state’s Open Meeting Law, issuing a stay-at-home order, and introducing a phased approach to reopening State businesses. The Town is considered an essential business and although it was closed to the public for a period of time, departments remained operational and most employees continued to perform their daily duties. A number of businesses have been forced to stop or significantly reduce operations decreasing, the Town’s portion of certain revenue. The Town has also incurred unanticipated costs specifically related to the pandemic. On March 27, 2020 the United States Federal Government established the Coronavirus Aid, Relief and Economic Security (CARES) Act in response to the economic downfall caused by the COVID-19 pandemic. This Act requires that the payment from these funds be used only to cover expenses that; are necessary expenditures incurred due to the public health emergency with respect COVID-19; were not accounted for in the budget most recently approved as of March 27, 2020; and were incurred during the period that begins on March 1, 2020, and ends on December 31, 2021. The Commonwealth and communities throughout the Commonwealth were awarded a portion of this federal funding. In addition to funding from the CARES Act, there are several other federal and state grants available. The full extent of the financial impact cannot be determined as of the date of the financial statements. Notes to Basic Financial Statements Year Ended June 30, 2020 Town of Cohasset, Massachusetts 75 Comprehensive Annual Financial Report NOTE 14 – SUBSEQUENT EVENTS Management has evaluated subsequent events through February 19, 2021, which is the date the financial statements were available to be issued. NOTE 15 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS During 2020, the following GASB pronouncement was implemented:  GASB Statement #95, Postponement of the Effective Dates of Certain Authoritative Guidance. This pronouncement postponed the effective dates of certain provisions in GASB Statements and Implementation Guides that first became effective or are scheduled to be effective for periods beginning after June 15, 2018 or later. The following GASB pronouncements will be implemented in the future:  The GASB issued Statement #84, Fiduciary Activities, which is required to be implemented in 2021.  The GASB issued Statement #87, Leases, which is required to be implemented in 2022.  The GASB issued Statement #89, Accounting for Interest Cost Incurred before the End of a Construction Period, which is required to be implemented in 2022.  The GASB issued Statement #90, Majority Equity Interests – an amendment of GASB Statements #14 and #61, which is required to be implemented in 2021.  The GASB issued Statement #91, Conduit Debt Obligations, which is required to be implemented in 2023.  The GASB issued Statement #92, Omnibus 2020, which is required to be implemented in 2022.  The GASB issued Statement #93, Replacement of Interbank Offered Rates, which is required to be implemented in 2022.  The GASB issued Statement #94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, which is required to be implemented in 2023.  The GASB issued Statement #96, Subscription-Based Information Technology Arrangements, which is required to be implemented in 2023.  The GASB issued Statement #97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32, in which certain paragraphs are required to be implemented in 2021 and 2022. 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 Required Supplementary Information Town of Cohasset, Massachusetts 77 Comprehensive Annual Financial Report This page intentionally left blank. Town of Cohasset, Massachusetts 78 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 GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2020 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…………………………………… $ 39,859,442 $ 39,859,442 $ 39,987,136 $ - $ 127,694 Motor vehicle and other excise taxes………………… 1,737,547 1,737,547 2,025,097 - 287,550 Penalties and interest on taxes……………………… 131,300 131,300 142,887 - 11,587 Fees….....................…………………………………… 852,597 852,597 836,319 - (16,278) Licenses and permits…………………………………… 618,135 618,135 811,007 - 192,872 Fines and forfeitures…………………………………… 25,250 25,250 31,464 - 6,214 Intergovernmental…………………………...………… 3,467,298 3,467,298 3,527,171 - 59,873 Departmental and other………………………………… 183,679 183,679 265,844 - 82,165 Special assessments…………………………………… 342,477 342,477 346,829 - 4,352 Investment income……………………………………… 34,275 34,275 123,500 - 89,225 TOTAL REVENUES……………………… 47,252,000 47,252,000 48,097,254 - 845,254 EXPENDITURES: Current: ADMINISTRATIVE SERVICES Town Moderator…………………………………… 500 500 - - 500 Board of Selectmen………………………………… 154,041 154,040 77,767 11,672 64,601 Town Manager……………………………………… 728,466 603,466 408,719 169,861 24,886 Human Resource Management…………………… 211,977 211,977 208,866 - 3,111 School Support Officer……………………………… 77,265 77,265 71,846 - 5,419 Advisory Committee………………………………… 360 360 180 - 180 Reserve Fund……………………………………… 234,090 - - - - Director of Finance………………………………… 248,935 248,935 241,811 - 7,124 Board of Assessors………………………………… 220,827 227,727 227,134 - 593 Treasurer/Collector………………………………… 350,363 350,363 342,188 1,005 7,170 Legal Services……………………………………… 156,130 196,130 169,448 15,916 10,766 Chief Technology Office…………………………… 541,603 541,603 497,154 10,512 33,937 Town Technology…………………………………… 148,716 148,716 111,530 - 37,186 Town Clerk…………………………………………… 181,547 246,547 178,722 60,000 7,825 Permits & Inspections……………………………… 289,208 362,208 303,755 21,981 36,472 Unclassified………………………………………… 421,500 421,500 408,743 - 12,757 - Total Administrative services………………………… 3,965,528 3,791,337 3,247,863 290,947 252,527 PUBLIC SAFETY Police………………………………………………… 2,665,907 2,901,907 2,882,626 1,000 18,281 Fire…………………………………………………… 2,637,524 2,582,030 2,406,789 9,783 165,458 Building Commissioner…………………………… 159,203 159,203 144,826 - 14,377 Emergency Management…………………………… 39,200 39,200 25,663 776 12,761 Harbormaster………………………………………… 121,303 174,103 141,650 30,562 1,891 Shellfish Constable………………………………… 475 475 475 - - Total Public Safety……………………………………… 5,623,612 5,856,918 5,602,029 42,121 212,768 EDUCATION Cohasset Schools…………………………………… 20,476,116 20,476,116 19,305,017 380,098 791,001 South Shore Vocational…………………………… 59,450 59,450 55,649 - 3,801 Total Education………………………………………… 20,535,566 20,535,566 19,360,666 380,098 794,802 PUBLIC WORKS Department of Public Works……………………… 1,789,393 1,825,393 1,655,785 134,286 35,322 Snow & Ice Removal……………………………… 125,002 125,002 100,180 - 24,822 Street Lighting……………………………………… 106,762 106,763 93,204 - 13,559 Transfer Station……………………………………… 494,280 494,280 464,483 405 29,392 Facilities Management……………………………… 1,090,523 1,090,523 982,210 15,643 92,670 Total Public Works……………………………………… 3,605,960 3,641,961 3,295,862 150,334 195,765 HEALTH & WELFARE Board of Health……………………………………… 158,675 171,175 150,514 787 19,874 Elder Affairs………………………………………… 316,929 316,929 295,710 - 21,219 Veterans Services…………………………………… 146,059 146,059 87,644 - 58,415 Total Health & Welfare………………………………… 621,663 634,163 533,868 787 99,508 (Continued) Budgeted Amounts Town of Cohasset, Massachusetts 79 Comprehensive Annual Financial Report GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2020 Actual Amounts Variance Original Final Budgetary Carried Forward to Final Budget Budget Amounts To Next Year Budget Budgeted Amounts CULTURE AND RECREATION Library………………………………………………… 659,249 685,249 684,617 - 632 Recreation…………………………………………… 137,275 137,275 136,782 - 493 Common Historical Commission………………… 500 500 470 - 30 Historical Preservation……………………………… 600 600 600 - - Total Culture and Recreation………………………… 797,624 823,624 822,469 - 1,155 DEBT SERVICE Principal……………………………………………… 2,307,165 2,346,049 2,099,147 - 246,902 Interest……………………………………………… - - 230,901 - (230,901) Total Debt Service……………………………………… 2,307,165 2,346,049 2,330,048 - 16,001 BENEFITS & INSURANCE Pension Assessment……………………………… 2,462,635 2,462,635 2,455,248 - 7,387 Workers Compensation…………………………… 198,373 178,373 173,936 - 4,437 Unemployment……………………………………… 5,000 5,000 2,401 2,500 99 Health Insurance…………………………………… 5,433,859 5,433,859 4,915,458 - 518,401 Life Insurance……………………………………… 10,335 10,335 8,274 - 2,061 Medicare Tax………………………………………… 363,378 363,378 361,951 - 1,427 Property & Liability Insurance……………………… 390,677 370,677 368,774 - 1,903 Total Benefits & Insurance…………………………… 8,864,257 8,824,257 8,286,042 2,500 535,715 State and County Assessment………………………… 658,175 658,175 560,848 - 97,327 TOTAL EXPENDITURES……………………… 46,979,550 47,112,050 44,039,695 866,787 2,205,568 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES…………………… 272,450 139,950 4,057,559 (866,787) 3,050,822 OTHER FINANCING SOURCES (USES): Transfers in……………………………………………… 782,426 782,426 815,414 - 32,988 Transfers out…………………………………………… (1,968,951) (2,893,951) (2,893,951) - - TOTAL OTHER FINANCING SOURCES (USES)………………… (1,186,525) (2,111,525) (2,078,537) - 32,988 NET CHANGE IN FUND BALANCE……………………… (914,075) (1,971,575) 1,979,022 (866,787) 3,083,810 BUDGETARY FUND BALANCE, Beginning of year…… 3,122,823 3,122,823 3,122,823 - - BUDGETARY FUND BALANCE, End of year…………… $ 2,208,748 $ 1,151,248 $ 5,101,845 $ (866,787) $ 3,083,810 See notes to required supplementary information.(Concluded) Town of Cohasset, Massachusetts 80 Comprehensive Annual Financial Report Town of Cohasset, Massachusetts 81 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 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, 2019………… 3.28% $ 19,303,701 $ 11,976,075 161.19% 64.60% December 31, 2018………… 3.59% 23,379,175 10,027,984 233.14% 58.30% 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 82 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, 2020………………… $ 2,462,635 $ (2,462,635) $ - $ 12,095,836 20.36% June 30, 2019………………… 2,512,622 (2,512,622) - 10,128,264 24.81% June 30, 2018………………… 2,296,320 (2,296,320) - 9,785,762 23.47% June 30, 2017………………… 1,880,030 (1,880,030) - 10,243,988 18.35% June 30, 2016………………… 1,706,914 (1,706,914) - 9,935,118 17.18% June 30, 2015………………… 1,596,748 (1,596,748) - 8,167,319 19.55% 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 83 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 2020………………………………… $ 47,853,996 $ 5,803,128 53.95% 2019………………………………… 45,339,435 4,594,495 54.84% 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 84 Comprehensive Annual Financial Report Town of Cohasset, Massachusetts 85 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 June 30, June 30, June 30, June 30, 2017 2018 2019 2020 Total OPEB Liability Service Cost………………………………………………… $ 2,645,732 $ 2,077,991 $ 2,127,301 $ 2,472,047 Interest………………………………………………………… 1,441,497 1,733,467 1,828,800 2,189,678 Changes of benefit terms…………………………………… - (3,333) - (1,473,101) Differences between expected and actual experience… - - 1,881,763 - Changes of assumptions…………………………………… (7,930,903) (422,437) 10,446,833 15,320,210 Benefit payments…………………………………………… (1,539,864) (1,670,698) (1,726,106) (1,801,843) Net change in total OPEB liability…………………………… (5,383,538) 1,714,990 14,558,591 16,706,991 Total OPEB liability - beginning……………………………..… 48,703,025 43,319,487 45,034,477 59,593,068 Total OPEB liability - ending (a)………………………………$ 43,319,487 $ 45,034,477 $ 59,593,068 $ 76,300,059 Plan fiduciary net position Employer contributions……………………………..……… $ 475,000 $ 350,000 $ 500,000 $ 500,000 Employer contributions for OPEB payments……………… 1,539,864 1,670,698 1,726,106 1,801,843 Net investment income………………………...…………… 191,237 171,228 148,667 72,379 Benefit payments……………………………...…………… (1,539,864) (1,670,698) (1,726,106) (1,801,843) Net change in plan fiduciary net position…………………… 666,237 521,228 648,667 572,379 Plan fiduciary net position - beginning of year……………… 1,492,475 2,158,712 2,679,940 3,328,607 Plan fiduciary net position - end of year (b)…………………$ 2,158,712 $ 2,679,940 $ 3,328,607 $ 3,900,986 Net OPEB liability - ending (a)-(b)…………………………$ 41,160,775 $ 42,354,537 $ 56,264,461 $ 72,399,073 Plan fiduciary net position as a percentage of the total OPEB liability………………………..…………… 4.98% 5.95% 5.59% 5.11% Covered-employee payroll………………………………..……$ 21,581,455 $ 23,163,230 $ 24,613,965 $ 26,765,965 Net OPEB liability as a percentage of covered-employee payroll…………………………..… 190.72% 182.85% 228.59% 270.49% Discount rate………………………………..…………………… 3.89% 3.95% 3.58% 2.28% 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 86 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, 2020………………$ 4,524,777 $ (2,301,843) $ 2,222,934 $ 26,765,965 8.60% June 30, 2019……………… 3,773,144 (2,226,106) 1,547,038 24,613,965 9.04% 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 87 Comprehensive Annual Financial Report Annual money-weighted rate of return, Year net of investment expense June 30, 2020…………………………… 1.97% June 30, 2019…………………………… 5.01% 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 Town of Cohasset, Massachusetts 88 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2019 Town of Cohasset, Massachusetts 89 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 2020 approved budget authorized $48.9 million in appropriations and other amounts to be raised. During 2020, $1.1 million of supplemental appropriations were approved primarily for transfers to stabilization, amending the FY20 operating budget, and the allocation of funds for one-time costs. The Finance Director/Town Accountant’s office has the responsibility to ensure that budgetary control is maintained. Budgetary control is exercised through the accounting system. B. Budgetary - GAAP Reconciliation For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of accounting (established by the Commonwealth) is followed, which differs from the GAAP basis of accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the year ended June 30, 2020, is presented below: Net change in fund balance - budgetary basis……………………………$ 1,169,389 Perspective differences: Activity of the stabilization fund recorded in the general fund for GAAP………………………………………………… 632,004 Basis of accounting differences: Net change in recording 60 day receipts……………………………… (97,719) Recognition of revenue for on-behalf payments……………………… 5,803,128 Recognition of expenditures for on-behalf payments………………… (5,803,128) Net change in fund balance - GAAP basis…………………………………$ 1,703,674 Notes to Required Supplementary Information Year Ended June 30, 2019 Town of Cohasset, Massachusetts 90 Comprehensive Annual Financial Report 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 cost of living increase assumption was changed to 3.0% of the first $18,000 of retirement income; the base in the prior valuation was $17,000. E. Changes in Plan Provisions None. 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. Notes to Required Supplementary Information Year Ended June 30, 2019 Town of Cohasset, Massachusetts 91 Comprehensive Annual Financial Report 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, 2018 Actuarial cost method…………………… Entry age normal Amortization method…………………… Increasing at 3.5% over 30 years on an open amortization period for partial pre-funding. Asset valuation method………………… Market value Healthcare cost trend rate……………… 8.00% for 2018, decreasing 0.50% per year to 5.50%, then grading down to an ultimate trend rate of 3.90%, utilizing the Society of Actuaries Getzen Medical Trend Model. The ultimate medical inflation rate is reached in 2075. Investment rate of return………………… 6.75%, compounded annually, net of fees. Discount rate…………………………… 2.28%, compounded annually, for the measurement as of June 30, 2020. Municipal bond rate……………………… 2.21%, based on the Bond Buyer 20-Bond GO Index published on June 30, 2020. Inflation rate……………………………… 2.4% per year, based on the 2020 Social Security Trustees Report published April 22, 2020. Payroll growth…………………………… 3.50% 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 White Collar Mortality Table, base year 2014, projected with generational mortality improvement using scale MP-2016. Post-retirement mortality - teachers…… RP-2014 White Collar Mortality Table, base year 2014, projected with generational mortality improvement using scale MP-2016. Notes to Required Supplementary Information Year Ended June 30, 2019 Town of Cohasset, Massachusetts 92 Comprehensive Annual Financial Report Changes in Assumptions - The discount rate changed from 3.58% as of June 30, 2019 to 2.28% as of June 30, 2020. The health cost trend rates, inflation assumption, and the teacher mortality table and improvement scale have been updated. Changes in Plan Provisions – None. 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 93 Comprehensive Annual Financial Report Combining and Individual Fund Statements Combining and Individual Fund Statements Town of Cohasset, Massachusetts 94 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 95 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. Receipts MCWT Town Town School Reserved For Septic Loan Revolving Grants Grants Appropriation Program Funds ASSETS Cash and cash equivalents………………………… $ 801,837 $ 603,392 $ 1,054,406 $ 102,678 $ 616,896 Investments…………………………………………… - - - - - Receivables, net of uncollectibles: Tax liens……………………………………...…… - - - - - Departmental and other…………………………… - - - - - Intergovernmental………………………………… - - - - - Special assessments……………………………… - - 678,213 - - TOTAL ASSETS………………………………………$ 801,837 $ 603,392 $ 1,732,619 $ 102,678 $ 616,896 LIABILITIES Warrants payable…………………………………$ 25,102 $ 31,815 $ - $ - $ 97,932 Accrued payroll…………………………………… 3,555 - - - 4,002 Unearned revenue………………………………… 464,547 - - - - Notes payable……………………………………… - - - 150,000 - TOTAL LIABILITIES………………………………… 493,204 31,815 - 150,000 101,934 DEFERRED INFLOWS OF RESOURCES Unavailable revenue……………………………… - - 678,213 - - FUND BALANCES Nonspendable……………………………………… - - - - - Restricted…………………………………………… 308,633 571,577 1,054,406 - 514,962 Unassigned………………………………………… - - - (47,322) - TOTAL FUND BALANCES…………………………… 308,633 571,577 1,054,406 (47,322) 514,962 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES…………$ 801,837 $ 603,392 $ 1,732,619 $ 102,678 $ 616,896 NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2020 Special Revenue Funds Town of Cohasset, Massachusetts 96 Comprehensive Annual Financial Report School Other Revolving School Community Gifts and Town Special Funds Lunch Preservation Donations Revenue Funds Subtotal $ 898,833 $ 210,558 $ 3,771,017 $ 453,808 $ 3,817 $ 8,517,242 - - - 657,309 - 657,309 - - 9,907 - - 9,907 - - 4,811 - - 4,811 - - - - - - - - - - - 678,213 $ 898,833 $ 210,558 $ 3,785,735 $ 1,111,117 $ 3,817 $ 9,867,482 $ 145,495 $58 $ 40 $ 9,379 $ - $ 309,821 - 959 - - - 8,516 - - - - - 464,547 - - - - - 150,000 145,495 1,017 40 9,379 - 932,884 - - 14,719 - - 692,932 - - - - - - 753,338 209,541 3,770,976 1,101,738 3,817 8,288,988 - - - - - (47,322) 753,338 209,541 3,770,976 1,101,738 3,817 8,241,666 $ 898,833 $ 210,558 $ 3,785,735 $ 1,111,117 $ 3,817 $ 9,867,482 (Continued) Special Revenue Funds Town of Cohasset, Massachusetts 97 Comprehensive Annual Financial Report Capital Projects Capital Projects Chapter 90 Bonded Non-Bonded Subtotal ASSETS Cash and cash equivalents………………………… $ - $ 266,003 $ 855,076 $ 1,121,079 Investments…………………………………………… - - - - Receivables, net of uncollectibles: Tax liens……………………………………...…… - - - - Departmental and other…………………………… - - - - Intergovernmental………………………………… 317,961 - - 317,961 Special assessments……………………………… - - - - TOTAL ASSETS………………………………………$ 317,961 $ 266,003 $ 855,076 $ 1,439,040 LIABILITIES Warrants payable…………………………………$ 3,056 $ 2,621 $ 439 $ 6,116 Accrued payroll…………………………………… - - - - Fees collected in advance……………………………- - - - Notes payable……………………………………… - 1,103,400 - 1,103,400 TOTAL LIABILITIES………………………………… 3,056 1,106,021 439 1,109,516 DEFERRED INFLOWS OF RESOURCES Unavailable revenue……………………………… 314,905 - - 314,905 FUND BALANCES Nonspendable……………………………………… - - - - Restricted…………………………………………… - - 854,637 854,637 Unassigned………………………………………… - (840,018) - (840,018) TOTAL FUND BALANCES…………………………… - (840,018) 854,637 14,619 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES…………$ 317,961 $ 266,003 $ 855,076 $ 1,439,040 NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2020 COMBINING BALANCE SHEET Capital Project Funds Town of Cohasset, Massachusetts 98 Comprehensive Annual Financial Report Total Nonmajor Library Other Governmental Trust Fund Trust Funds Subtotal Funds $ 176,014 $ 243,159 $ 419,173 $ 10,057,494 1,506,949 619,478 2,126,427 2,783,736 - - - 9,907 - - - 4,811 - - - 317,961 - - - 678,213 $ 1,682,963 $ 862,637 $ 2,545,600 $ 13,852,122 $- $ 1,192 $ 1,192 $ 317,129 - - - 8,516 - - - 464,547 - - - 1,253,400 - 1,192 1,192 2,043,592 - - - 1,007,837 244,809 209,893 454,702 454,702 1,438,154 651,552 2,089,706 11,233,331 - - - (887,340) 1,682,963 861,445 2,544,408 10,800,693 $ 1,682,963 $ 862,637 $ 2,545,600 $ 13,852,122 (Concluded) Permanent Funds Town of Cohasset, Massachusetts 99 Comprehensive Annual Financial Report Receipts MCWT Town Town School Reserved For Septic Loan Revolving Grants Grants Appropriation Program Funds REVENUES: Charges for services………………………………………………… $ - $ - $ 1,114 $ - $ 217,349 Penalties and interest on taxes……………………………………… - - 322 - - Intergovernmental…………………………………………………… 574,812 1,559,747 - - - Intergovernmental - COVID-19 relief………………………………… 288,493 - - - - Departmental and other……………………………………………… - - 22,284 600 104,532 Community preservation taxes……………………………………… - - - - - Special assessments………………………………………………… - - 96,938 - - Contributions and donations………………………………………… - - - - 9,000 Investment income…………………………………………………… - - - - - TOTAL REVENUES……………………………………………… 863,305 1,559,747 120,658 600 330,881 EXPENDITURES: Current: Administrative services…………………………………………… 431,060 - 2,675 - 83,255 Public safety………………………………………………………… 243,538 - - - - Education…………………………………………………………… - 1,349,673 - - - Public works………………………………………………………… 117,455 - - - - Health and welfare………………………………………………… 24,356 - - 55,314 31,450 Culture and recreation……………………………………………… 43,600 - - - 583,098 Community preservation…………………………………………… - - - - - COVID-19…………………………………………………………… 288,493 - - - - TOTAL EXPENDITURES……………………………………… 1,148,502 1,349,673 2,675 55,314 697,803 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES………………………………… (285,197) 210,074 117,983 (54,714) (366,922) OTHER FINANCING SOURCES (USES): Transfers in…………………………………………………………… - - - - - Transfers out…………………………………………………………… (27,988) - (155,337) - - TOTAL OTHER FINANCING SOURCES (USES)…………… (27,988) - (155,337) - - NET CHANGE IN FUND BALANCES………………………………… (313,185) 210,074 (37,354) (54,714) (366,922) FUND BALANCES AT BEGINNING OF YEAR…………………….. 621,818 361,503 1,091,760 7,392 881,884 FUND BALANCES AT END OF YEAR……………………………… $ 308,633 $ 571,577 $ 1,054,406 $ (47,322) $ 514,962 NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2020 Special Revenue Funds Town of Cohasset, Massachusetts 100 Comprehensive Annual Financial Report School Other Revolving School Community Gifts and Town Special Funds Lunch Preservation Donations Revenue Funds Subtotal $ 639,551 $ 308,305 $ - $ - $ - $ 1,166,319 - - 1,601 - - 1,923 - 51,295 123,225 - - 2,309,079 - - - - - 288,493 - - - - 5,100 132,516 - - 536,245 - - 536,245 - - - - - 96,938 24,835 - - 206,719 - 240,554 - - 38,836 46,304 - 85,140 664,386 359,600 699,907 253,023 5,100 4,857,207 - - - 204,309 - 721,299 - - - 29,758 - 273,296 623,788 400,527 - - - 2,373,988 - - - 6,355 - 123,810 - - - 7,592 5,100 123,812 - - - 113,651 - 740,349 - - 251,142 - - 251,142 - - - - - 288,493 623,788 400,527 251,142 361,665 5,100 4,896,189 40,598 (40,927) 448,765 (108,642) - (38,982) - - - 63,102 - 63,102 - - (173,093) - - (356,418) - - (173,093) 63,102 - (293,316) 40,598 (40,927) 275,672 (45,540) - (332,298) 712,740 250,468 3,495,304 1,147,278 3,817 8,573,964 $ 753,338 $ 209,541 $ 3,770,976 $ 1,101,738 $ 3,817 $ 8,241,666 (Continued) Special Revenue Funds Town of Cohasset, Massachusetts 101 Comprehensive Annual Financial Report Capital Projects Capital Projects Chapter 90 Bonded Non-Bonded Subtotal REVENUES: Charges for services………………………………………………… $ - $ - $ - $ - Penalties and interest on taxes……………………………………… - - - - Intergovernmental…………………………………………………… 250,291 - - 250,291 Intergovernmental - COVID-19 relief………………………………… - - - - Departmental and other……………………………………………… - - - - Community preservation taxes……………………………………… - - - - Special assessments………………………………………………… - - - - Contributions and donations………………………………………… - - - - Investment income…………………………………………………… - - - - TOTAL REVENUES……………………………………………… 250,291 - - 250,291 EXPENDITURES: Current: Administrative services…………………………………………… - 54,632 203,151 257,783 Public safety………………………………………………………… - 5,463 245,282 250,745 Education…………………………………………………………… - - 346,243 346,243 Public works………………………………………………………… 250,291 30,250 657,298 937,839 Health and welfare………………………………………………… - - 6,335 6,335 Culture and recreation……………………………………………… - - - - Community preservation…………………………………………… - - - - COVID-19…………………………………………………………… - - - - TOTAL EXPENDITURES……………………………………… 250,291 90,345 1,458,309 1,798,945 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES………………………………… - (90,345) (1,458,309) (1,548,654) OTHER FINANCING SOURCES (USES): Transfers in…………………………………………………………… - - 1,655,156 1,655,156 Transfers out…………………………………………………………… - - - - TOTAL OTHER FINANCING SOURCES (USES)…………… - - 1,655,156 1,655,156 NET CHANGE IN FUND BALANCES………………………………… - (90,345) 196,847 106,502 FUND BALANCES AT BEGINNING OF YEAR…………………….. - (749,673) 657,790 (91,883) FUND BALANCES AT END OF YEAR……………………………… $ - $ (840,018) $ 854,637 $ 14,619 NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Capital Project Funds Town of Cohasset, Massachusetts 102 Comprehensive Annual Financial Report Total Nonmajor Library Other Governmental Trust Fund Trust Funds Subtotal Funds $- $ - $ - $ 1,166,319 - - - 1,923 - - - 2,559,370 - - - 288,493 - - - 132,516 - - - 536,245 - - - 96,938 10,195 1,982 12,177 252,731 72,623 27,990 100,613 185,753 82,818 29,972 112,790 5,220,288 - 4,126 4,126 983,208 - - - 524,041 - - - 2,720,231 - 3,035 3,035 1,064,684 - 6,942 6,942 137,089 - - - 740,349 - - - 251,142 - - - 288,493 - 14,103 14,103 6,709,237 82,818 15,869 98,687 (1,488,949) - 175,000 175,000 1,893,258 (63,102) (358,696) (421,798) (778,216) (63,102) (183,696) (246,798) 1,115,042 19,716 (167,827) (148,111) (373,907) 1,663,247 1,029,272 2,692,519 11,174,600 $ 1,682,963 $ 861,445 $ 2,544,408 $ 10,800,693 (Concluded) Permanent Funds Town of Cohasset, Massachusetts 103 Comprehensive Annual Financial Report Town of Cohasset, Massachusetts 104 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. AGENCY FUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 2020 June 30, June 30, 2019 Additions Deletions 2020 CURRENT: Cash and cash equivalents……………………..………$ 521,566 $ 1,455,435 $ (1,499,667) $ 477,334 Receivables, net of allowance for uncollectibles: Departmental and other…………………………… 396,205 488,371 (403,808) 480,768 TOTAL ASSETS……………………………………………$ 917,771 $ 1,943,806 $ (1,903,475) $ 958,102 Warrants payable……………………………………… $ 418,042 $ 1,335,822 $ (1,310,221) $ 443,643 Liabilities due depositors……………………………… 358,076 100,747 (88,165) 370,658 Other liabilities…………………………………………… 141,653 507,237 (505,089) 143,801 TOTAL LIABILITIES……………………………………… $ 917,771 $ 1,943,806 $ (1,903,475) $ 958,102 ASSETS LIABILITIES Town of Cohasset, Massachusetts 105 Comprehensive Annual Financial Report Town of Cohasset, Massachusetts 106 Comprehensive Annual Financial Report This page intentionally left blank. Statistical Section Town Common Project Town of Cohasset, Massachusetts 107 Comprehensive Annual Financial Report Statistical Section 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. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Governmental activitiesNet investment in capital assets………………………$ 52,393,141 $ 45,256,816 $ 45,149,347 $ 45,942,136 $ 46,801,586 $ 48,845,082 $ 50,120,485 $ 49,209,259 $ 51,546,419 $ 52,655,651 Restricted………………………………………………… 6,107,623 4,904,201 5,941,619 6,742,197 6,995,791 7,488,345 7,805,611 7,938,855 8,638,617 8,555,627 Unrestricted……………………………………………… (867,326) 2,963,690 2,578,655 (13,865,740) (13,575,380) (15,146,493) (44,300,699) (43,451,867) (48,222,093) (51,791,206) Total governmental activities net position……………… $ 57,633,438 $ 53,124,707 $ 53,669,621 $ 38,818,593 $ 40,221,997 $ 41,186,934 $ 13,625,397 $ 13,696,247 $ 11,962,943 $ 9,420,072 Business-type activitiesNet investment in capital assets………………………$ 30,478,145 $ 23,986,222 $ 23,598,624 $ 24,552,663 $ 25,773,697 $ 26,675,077 $ 27,744,000 $ 28,848,754 $ 30,410,288 $ 32,718,167 Unrestricted……………………………………………… 1,593,511 13,812,098 14,040,400 13,279,974 13,128,471 13,304,136 13,125,184 13,339,419 12,589,867 11,147,265 Total business-type activities net position………………$ 32,071,656 $ 37,798,320 $ 37,639,024 $ 37,832,637 $ 38,902,168 $ 39,979,213 $ 40,869,184 $ 42,188,173 $ 43,000,155 $ 43,865,432 Primary governmentNet investment in capital assets………………………$ 82,871,286 $ 69,243,038 $ 68,747,971 $ 70,494,799 $ 72,575,283 $ 75,520,159 $ 77,864,485 $ 78,058,013 $ 81,956,707 $ 85,373,818 Restricted………………………………………………… 6,107,623 4,904,201 5,941,619 6,742,197 6,995,791 7,488,345 7,805,611 7,938,855 8,638,617 8,555,627 Unrestricted……………………………………………… 726,185 16,775,788 16,619,055 (585,766) (446,909) (1,842,357) (31,175,515) (30,112,448) (35,632,226) (40,643,941) Total primary government net position……………………$ 89,705,094 $ 90,923,027 $ 91,308,645 $ 76,651,230 $ 79,124,165 $ 81,166,147 $ 54,494,581 $ 55,884,420 $ 54,963,098 $ 53,285,504 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 ComponentLast Ten YearsTown of Cohasset, Massachusetts108Comprehensive Annual Financial Report 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Expenses Governmental activities: Administration……………………………………………… $ 3,194,742 $ 3,664,574 $ 3,447,387 $ 3,680,617 $ 3,997,974 $ 4,487,473 $ 4,413,663 $ 4,573,270 $ 5,242,598 $ 5,805,598 Public safety………………………………………………… 6,622,695 6,643,418 6,455,507 6,623,281 6,991,258 7,738,244 7,609,256 8,527,016 9,608,463 9,889,682 Education…………………………………………………… 25,743,937 26,247,926 27,666,185 28,305,008 27,464,152 29,217,508 31,221,840 32,995,136 35,137,381 37,021,333 Public works………………………………………………… 3,740,913 3,014,490 3,378,422 3,476,400 4,136,781 4,251,519 4,788,976 4,579,940 5,263,972 5,035,114 Health and human services………………………………… 537,404 582,648 1,924,232 743,217 735,795 863,580 847,136 811,904 947,288 1,012,589 Culture and recreation……………………………………… 1,125,988 1,542,483 1,543,186 1,582,372 1,673,178 2,062,098 2,260,471 2,252,810 2,321,582 2,181,586 Community preservation…………………………………… - 46,183 161,798 438,778 271,225 259,568 41,527 255,886 243,389 251,142 COVID-19….................................................................... - - - - - - - - - 288,493 Interest……………………………………………………… 921,343 1,244,644 1,146,440 966,501 810,989 643,741 594,413 505,479 372,204 268,524 Total governmental activities expenses……………………… 41,887,022 42,986,366 45,723,157 45,816,174 46,081,352 49,523,731 51,777,282 54,501,441 59,136,877 61,754,061 Business-type activities: Sewer………………………………………………………… 4,165,164 2,810,623 2,741,823 2,379,793 2,315,178 2,466,017 2,218,405 2,134,032 2,627,933 2,784,140 Water………………………………………………………… 4,339,973 3,937,565 3,796,075 3,553,676 3,447,642 3,584,724 3,473,117 3,453,070 3,616,818 3,676,666 Total business-type activity expenses………………………… 8,505,137 6,748,188 6,537,898 5,933,469 5,762,820 6,050,741 5,691,522 5,587,102 6,244,751 6,460,806 Total primary government expenses…………………………$ 50,392,159 $ 49,734,554 $ 52,261,055 $ 51,749,643 $ 51,844,172 $ 55,574,472 $ 57,468,804 $ 60,088,543 $ 65,381,628 $ 68,214,867 Program Revenues Governmental activities: Charges for services: Administration…………………………………………… $360,593 $ 495,669 $ 570,288 $ 594,218 $ 685,031 $ 572,046 $ 552,000 $ 591,117 $ 473,419 $ 660,215 Public safety charges for services……………………… 1,147,747 878,441 954,524 1,034,736 1,058,895 1,293,966 1,071,160 1,070,473 1,105,008 1,098,981 Education charges for services………………………… 1,145,164 975,482 1,064,381 1,090,505 1,129,365 1,143,391 1,072,356 1,131,422 1,348,914 947,856 Public works charges for services……………………… 178,356 238,427 314,016 303,932 292,558 276,478 249,587 272,253 293,889 250,154 Health and human Services……………………………… 21,499 46,623 44,208 37,433 32,907 25,905 21,025 25,569 50,609 46,373 Culture and recreation…………………………………… 332,205 77,414 15,219 20,849 10,000 20,030 14,164 319,224 277,984 108,987 Operating grants and contributions………………………… 6,417,307 7,713,034 9,315,471 8,814,016 7,583,649 8,817,175 10,318,668 10,140,592 10,775,829 11,621,396 Capital grants and contributions…………………………… 662,105 928,013 517,534 470,004 695,888 328,686 689,367 442,734 464,453 626,307 Total government activities program revenues...…………… 10,264,976 11,353,103 12,795,641 12,365,693 11,488,293 12,477,677 13,988,327 13,993,384 14,790,105 15,360,269 Business-type activities: Charges for services: Sewer……………………………………………………… 1,684,014 2,175,548 1,936,177 1,840,085 1,807,723 1,819,131 1,728,175 2,011,705 1,831,897 1,923,376 Water……………………………………………………… 4,732,701 5,102,955 4,562,181 4,507,575 5,143,208 5,385,579 5,089,666 5,119,996 5,045,770 5,281,785 Capital grants and contributions…………………………… 13,875,299 222,911 37,676 4,152 - - 12,300 - - - Total business-type activities program revenues...………… 20,292,014 7,501,414 6,536,034 6,351,812 6,950,931 7,204,710 6,830,141 7,131,701 6,877,667 7,205,161 Total primary government program revenues………………$ 30,556,990 $ 18,854,517 $ 19,331,675 $ 18,717,505 $ 18,439,224 $ 19,682,387 $ 20,818,468 $ 21,125,085 $ 21,667,772 $ 22,565,430 Net (Expense)/Revenue Governmental activities………………………………………$ (31,622,046) $ (31,633,263) $ (32,927,516) $ (33,450,481) $ (34,593,059) $ (37,046,054) $ (37,788,955) $ (40,508,057) $ (44,346,772) $ (46,393,792) Business-type activities……………………………………… 11,786,877 753,226 (1,864) 418,343 1,188,111 1,153,969 1,138,619 1,544,599 632,916 744,355 Total primary government net expense………………………$ (19,835,169) $ (30,880,037) $ (32,929,380) $ (33,032,138) $ (33,404,948) $ (35,892,085) $ (36,650,336) $ (38,963,458) $ (43,713,856) $ (45,649,437) General Revenues and other Changes in Net Position Governmental activities: Real estate, personal property taxes and tax liens, net of tax refunds payable………………………………$ 28,117,764 $ 29,542,428 $ 30,668,230 $ 31,786,548 $ 33,093,668 $ 34,635,305 $ 35,883,703 $ 37,184,773 $ 38,591,651 $ 39,938,435 Motor vehicle and other excise taxes…………………… 1,115,676 1,162,053 1,299,064 1,396,984 1,539,272 1,556,866 1,832,408 1,872,697 1,975,254 2,017,829 Community preservation tax…………….…………..…… 364,940 388,279 402,419 416,990 436,967 454,855 480,755 498,257 516,781 535,239 Penalties and interest on taxes…………………….…… 118,155 206,230 243,820 189,395 166,014 280,132 135,455 136,889 164,731 144,810 Grants and contributions not restricted to specific programs……………………………………… 531,931 507,739 441,823 445,448 457,801 490,188 578,281 513,968 549,025 584,777 Unrestricted investment income………………………… 353,846 109,608 239,803 426,962 147,933 392,935 464,935 165,440 816,026 629,831 Transfers…………………………………………………… (729,614) (172,726) 177,271 152,423 154,808 200,710 199,567 206,883 - - Total governmental activities………………………………… 29,872,698 31,743,611 33,472,430 34,814,750 35,996,463 38,010,991 39,575,104 40,578,907 42,613,468 43,850,921 Business-type activities: Unrestricted investment income (loss)………………… - 6,862 19,839 39,862 36,228 123,786 25,083 (18,727) 179,066 120,922 Transfers…………………………………………………… 729,614 172,726 (177,271) (152,423) (154,808) (200,710) (199,567) (206,883) - - Total business-type activities………………………………… 729,614 179,588 (157,432) (112,561) (118,580) (76,924) (174,484) (225,610) 179,066 120,922 Total primary government……………………………………$ 30,602,312 $ 31,923,199 $ 33,314,998 $ 34,702,189 $ 35,877,883 $ 37,934,067 $ 39,400,620 $ 40,353,297 $ 42,792,534 $ 43,971,843 Changes in Net Position Governmental activities………………………………………$ (1,749,348) $ 110,348 $ 544,914 $ 1,364,269 $ 1,403,404 $ 964,937 $ 1,786,149 $ 70,850 $ (1,733,304) $ (2,542,871) Business-type activities……………………………………… 12,516,491 932,814 (159,296) 305,782 1,069,531 1,077,045 964,135 1,318,989 811,982 865,277 Total primary government……………………………………$ 10,767,143 $ 1,043,162 $ 385,618 $ 1,670,051 $ 2,472,935 $ 2,041,982 $ 2,750,284 $ 1,389,839 $ (921,322) $ (1,677,594) Last Ten Years Changes in Net Position Town of Cohasset, Massachusetts 109 Comprehensive Annual Financial Report 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020General FundCommitted………………………………$- $ 563,210 $ 481,523 $ 481,240 $ 471,938 $ 381,282 $ 417,445 $ 500,653 $ 557,948 $ 398,305 Assigned……………………………… 261,659 100,724 177,296 161,245 351,097 274,535 410,837 322,503 201,701 468,482 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 8,137,092 10,098,441 Total general fund……………………… $ 1,916,210 $ 2,858,133 $ 3,739,333 $ 5,283,019 $ 6,018,750 $ 6,691,828 $ 7,515,699 $ 8,458,433 $ 8,896,741 $ 10,965,228 All Other Governmental FundsNonspendable…………………………$ 223,414 $ 223,414 $ 223,414 $ 424,735 $ 424,735 $ 425,885 $ 442,525 $ 442,525 $ 442,525 $ 454,702 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 11,481,748 11,233,331 Unassigned…………………………… (216,907) - - - - - - (275,769) (749,673) (887,340) Total all other governmental funds…. $ 7,097,734 $ 6,344,908 $ 8,000,553 $ 8,649,236 $ 9,558,086 $ 10,800,677 $ 11,132,828 $ 11,265,468 $ 11,174,600 $ 10,800,693 Last Ten YearsFund Balances, Governmental FundsTown of Cohasset, Massachusetts110Comprehensive Annual Financial Report 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Revenues:Real estate, personal property taxes and tax liens, net of tax refunds……………………………………………$ 28,288,869 $ 29,566,547 $ 30,728,408 $ 31,740,271 $ 33,054,033 $ 34,705,407 $ 35,703,170 $ 37,347,489 $ 38,728,934 $ 39,889,417 Motor vehicle and other excise taxes……………………… 1,141,926 1,145,219 1,323,667 1,423,062 1,561,442 1,545,914 1,835,268 1,874,827 1,955,662 2,025,097 Licenses, permits, and fees………………………………… 543,407 1,286,403 1,572,712 1,588,933 1,628,690 1,812,251 1,510,733 1,643,210 1,574,407 1,647,326 Penalties and interest on taxes……………………………… 118,155 206,230 243,820 189,395 166,014 280,132 135,455 144,450 171,678 144,810 Fines and Fees………………………………………………… 41,603 26,240 36,648 52,336 36,523 35,719 25,226 20,530 21,102 31,464 Charges for services………………………………………… - 975,618 1,065,228 1,091,101 1,090,181 1,135,036 1,067,252 2,076,193 2,178,394 1,166,319 Intergovernmental……………………………………………… 7,283,379 8,276,896 7,869,826 9,043,567 7,644,901 9,015,361 10,273,585 10,567,985 11,215,997 12,479,455 Intergovernmental - COVID-19……………………………… - - - - - - - - - 288,493 Departmental and other……………………………………… 2,541,449 1,097,591 624,797 685,874 849,262 740,897 797,096 511,587 345,773 398,360 Community preservation taxes……………………………… 364,940 386,736 406,634 416,852 430,473 457,336 473,928 500,038 513,604 536,245 Contributions…………………………………………………… 327,964 685,050 1,199,670 712,636 811,760 1,106,298 1,142,682 426,001 295,705 252,731 Special assessments………………………………………… - 543,308 528,928 588,606 554,695 500,308 458,721 441,835 473,711 443,767 Investment income…………………………………………… 353,846 101,859 239,803 426,962 147,933 392,935 464,935 188,887 864,658 629,831 Total revenue…………………………………………………… 41,005,538 44,297,697 45,840,141 47,959,595 47,975,907 51,727,594 53,888,051 55,743,032 58,339,625 59,933,315 Expenditures: Administrative services……………………………………… 2,233,776 2,928,984 2,752,661 2,872,276 3,094,345 3,560,252 4,892,650 3,963,898 4,246,037 4,299,574 Public safety…………………………………………………… 4,584,957 4,423,141 4,676,241 4,980,413 4,908,286 5,127,862 5,181,879 5,596,858 6,531,036 6,126,460 Education……………………………………………………… 17,678,808 17,790,989 18,395,033 18,736,662 20,039,676 20,372,298 21,111,579 21,808,213 22,619,354 22,804,766 Public works…………………………………………………… 3,144,958 2,274,672 2,239,202 2,737,423 3,289,689 3,902,865 4,139,697 3,656,643 4,433,497 4,360,546 Health and welfare…………………………………………… 384,277 477,299 1,788,316 602,257 579,058 1,634,611 644,356 584,294 648,816 687,828 Culture and recreation………………………………………… 903,198 1,130,054 1,159,141 1,189,344 1,244,446 1,588,856 1,723,623 1,734,291 1,691,446 1,562,818 Pension benefits……………………………………………… 4,577,048 4,432,165 4,819,457 4,943,764 3,611,380 4,859,456 6,159,043 6,729,841 7,101,244 8,258,376 Employee benefits…………………………………………… 2,777,999 3,570,122 4,022,985 4,191,000 4,366,746 5,792,801 6,035,065 6,233,635 6,548,658 6,118,050 Community preservation……………………………………… 295,713 207,144 161,798 438,778 271,225 259,568 41,527 255,886 243,389 251,142 COVID-19…....................................................................... - - - - - - - - - 288,493 State and county charges…………………………………… 988,613 973,754 922,630 937,872 1,015,079 418,365 401,673 431,545 527,772 560,848 Debt service Principal……………………………………………………… 2,034,985 3,264,323 2,925,391 3,303,933 3,219,630 3,223,085 3,373,347 3,345,448 2,991,290 2,617,267 Interest……………………………………………………… 921,343 1,152,362 1,332,712 985,927 846,574 705,104 622,298 533,989 409,646 302,567 Total expenditures…………………………………………… 40,525,675 42,625,009 45,195,567 45,919,649 46,486,134 51,445,123 54,326,737 54,874,541 57,992,185 58,238,735 Excess (deficiency) of revenues over (under) expenditures……………………………………… 479,863 1,672,688 644,574 2,039,946 1,489,773 282,471 (438,686) 868,491 347,440 1,694,580 Other financing sources (uses): Premium from issuance of bonds…………………………… - 7,749 - - - - - - - - Issuance of long-term debt…………………………………… - - 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…………………………………………………… 632,099 1,726,682 809,333 890,222 1,483,532 2,340,343 1,293,927 1,294,428 2,005,895 2,458,372 Transfers out…………………………………………………… (1,361,713) (1,899,408) (632,062) (737,799) (1,328,724) (2,139,633) (1,094,360) (1,087,545) (2,005,895) (2,458,372) Total other financing sources (uses)…………………………… (729,614) (235,697) 1,892,271 152,423 154,808 1,398,994 1,594,708 206,883 - - Net change in fund balance…………………………………… $ (249,751) $ 1,436,991 $ 2,536,845 $ 2,192,369 $ 1,644,581 $ 1,681,465 $ 1,156,022 $ 1,075,374 $ 347,440 $ 1,694,580 Debt service as a percentage of noncapital expenditures…… 7.48% 11.04% 9.55% 9.99% 8.88% 8.09% 7.78% 7.29% 6.16% 5.15%Note: Charges for services were reported as departmental revenue prior to FY2012.Last Ten YearsChanges in Fund Balances, Governmental FundsTown of Cohasset, Massachusetts111Comprehensive 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 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 2019 $2,791,853,248 $12.90 $182,778,344 $1,650,400 $27,033,840 $211,462,584 $12.90 7.0% $3,003,315,832 2020 $2,876,577,128 $12.97 $182,848,864 $1,650,400 $27,190,350 $211,689,614 $12.97 6.9% $3,088,266,742 (1) Revaluation year. Source: Assessor's Department, Town of Cohasset and Official Statements. All property in the Commonwealth of Massachusetts is assessed at 100% of fair cash value. Note: Chapter 59, Section 21C of the Massachusetts General Laws, known as "Proposition 2 1/2", imposes 2 separate limits on the annual tax levy of the Town. The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. The secondary limitation is that the tax levy cannot exceed the maximum levy limit for the preceding year as determined by the State Commissioner of Revenue by more than 2 1/2 percent, subject to an exception for property added to the tax rolls and for certain substantial valuation increases other than as part of a general revaluation. The secondary limit may be exceeded in any year by a majority vote of the voters, however it cannot exceed the primary limitation. Assessed Value and Actual Value of Taxable Property by Classification and Tax Rates Last Ten Years 93% 6%0%1% Total Assessed Value by Classification Year Ended June 30, 2020 Residential Commercial Industrial Personal Property 93% 6%0%1% Total Assessed Value by Classification Year Ended June 30, 2019 Residential Commercial Industrial Personal Property 6.5% 6.6% 6.7% 6.8% 6.9% 7.0% 7.1% 7.2% 7.3% 7.4% 7.5% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Commercial Value as % of Total Value Town of Cohasset, Massachusetts 112 Comprehensive Annual Financial Report Principal Taxpayers Current Year and Nine Years AgoPercentage of Percentage ofTotal Taxable Total TaxableNature of Assessed Assessed Assessed AssessedName BusinessValuation RankValueValuation RankValueAvalon Cohasset Inc. Residential 51,684,000$ 1 1.63% -$ -Minot International Residential 18,070,200 2 0.57% 18,095,800 1 0.74%Cushing Station LLC Retail 16,424,000 3 0.52% - -Cohasset Development Trust Retail 13,362,200 4 0.42% 11,554,500 3 0.47%Butler, Gerard Residential 12,658,500 5 0.40% - 0.00%Chute, Ruth Residential 11,820,900 6 0.37% 7,625,700 8 0.31%Hingham Lumber Company Inc. Retail 10,170,300 7 0.32% 8,237,500 7 0.34%Connell Cohasset Greenbush LLC Retail/Residential 9,976,700 8 0.31% 8,935,600 6 0.37%ESS Bristol Cohasset Residential 8,252,600 9 0.26% - -Cohasset CP LLC Retail 8,238,100 10 0.26% - 0.00%Cedarmere Road Limited Residential - 0.00% 13,212,400 2 0.54%CSHV Limited Partnership Retail - 0.00% 10,946,900 4 0.45%Roy, Peter A Residential - - 10,075,100 5 0.41%Roy, Mary Residential - - 7,599,500 9 0.31%Deane, Gordon Residential - - 7,478,800 10 0.31%Totals160,657,500$ 5.07% 103,761,800$ 4.24%Source: Official Statements, Town of Cohasset2020 2011Town of Cohasset, Massachusetts113Comprehensive Annual Financial Report Percent ofLess First Year Percent of Delinquent Total Total TaxTotal Abatements & Net Net as % Current Net Levy Tax Tax Collections toYear Tax Levy Exemptions Tax Levy of Total Tax Collections Collected Collections Collections Net Tax Levy2011 (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% $277,729 $37,135,761 99.69%2019 $38,742,774 $229,325 $38,513,449 99.41% $38,019,987 98.72% $341,955 $38,361,942 99.61%2020 $40,054,820 $195,378 $39,859,442 99.51% $39,491,016 99.08% $0 $39,491,016 99.08% (1) Revaluation year.Source: Assessor's Department and Official Statements, Town of CohassetProperty Tax Levies and CollectionsLast Ten Years$0$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000$30,000,000$35,000,000$40,000,0002011 2012 2013 2014 2015 2016 2017 2018 2019 2020Real Estate Tax Levies vs. First Year CollectionsLast Ten YearsReal Estate Tax LevyFirst Year Current Tax CollectionsTown of Cohasset, Massachusetts114Comprehensive Annual Financial Report General Less Net General Percentage Percentage Percentage PercentageU. S. Census Personal Assessed Obligation Amounts Obligation Capital Per of Personal of Assessed Per of Personal of AssessedYear Population Income Value Bonds Available (2) Bonds Leases Capita Income Value Capita Income Value2011 7,846 528,494,000$ 2,440,301,624$ $19,147,126 (791,622)$ $18,355,504 $0 $2,440 3.62% 0.78% 2,339$ 3.47% 0.75%2012 7,490 539,280,000$ 2,465,755,221$ $16,969,751 (730,728)$ $16,239,023 $0 $2,266 3.15% 0.69% 2,168$ 3.01% 0.66%2013 7,895 629,121,000$ 2,521,526,250$ $15,252,777 (669,834)$ $14,582,943 $0 $1,932 2.42% 0.60% 1,847$ 2.32% 0.58%2014 7,870 655,067,320$ 2,542,277,461$ $13,976,660 (608,940)$ $13,367,720 $0 $1,776 2.13% 0.55% 1,699$ 2.04% 0.53%2015 8,084 672,879,824$ 2,613,497,066$ $11,937,512 (548,047)$ $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$ $11,174,461 (487,153)$ $10,687,308 $181,803 $1,351 1.40% 0.42% 1,314$ 1.36% 0.41%2017 8,342 739,699,000$ 2,755,368,610$ $10,490,751 (426,258)$ $10,064,493 $148,204 $1,258 1.42% 0.38% 1,224$ 1.38% 0.37%2018 8,393 901,460,000$ 2,927,814,268$ $8,489,955 (365,364)$ $8,124,591 $113,278 $1,012 0.94% 0.29% 982$ 0.91% 0.28%2019 7,765 894,287,285$ 3,003,315,832$ $6,897,644 (304,470)$ $6,593,174 $76,972 $888 0.77% 0.23% 859$ 0.75% 0.22%2020 7,955 653,200,960$ 3,088,266,742$ $5,415,976 (243,576)$ $5,172,400 $0 $681 0.83% 0.18% 650$ 0.79% 0.17%Business-TypeActivities (1)General Total Net Percentage Percentage Percentage PercentageObligation Capital Debt Debt Per of Personal of Assessed Per of Personal of AssessedYear Bonds Leases Outstanding Outstanding Capita Income Value Capita Income Value2011 27,350,874$ $0 $46,498,000 $45,706,378 $5,926 8.80% 1.91% $5,825 8.65% 1.87%2012 25,870,529$ $0 $42,840,280 $42,109,552 $5,720 7.94% 1.74% $5,622 7.81% 1.71%2013 27,257,655$ $0 $42,510,432 $41,840,598 $5,384 6.76% 1.69% $5,300 6.65% 1.66%2014 25,478,014$ $0 $39,454,674 $38,845,734 $5,013 6.02% 1.55% $4,936 5.93% 1.53%2015 23,483,193$ $0 $61,813,636 $61,265,589 $7,543 9.19% 2.37% $7,476 9.10% 2.34%2016 22,217,133$ $0 $33,391,594 $32,904,441 $4,036 4.19% 1.25% $3,977 4.13% 1.23%2017 21,109,258$ $0 $31,600,009 $31,173,751 $3,788 4.27% 1.15% $3,737 4.21% 1.13%2018 19,143,346$ $0 $27,633,301 $27,267,937 $3,292 3.07% 0.94% $3,249 3.02% 0.93%2019 17,329,188$ $0 $41,053,883 $23,922,362 $5,287 4.59% 1.37% $3,081 2.68% 0.80%2020 15,486,130$ $0 $20,902,106 $20,658,530 $2,628 3.20% 0.68% $2,597 3.16% 0.67%(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 ServicesTotal Debt Outstanding Net Debt OutstandingRatios of Outstanding Debt and General Bonded DebtLast Ten YearsGovernmental ActivitiesGeneral Obligation Bonds Net General Obligation BondsTotal Primary GovernmentTown of Cohasset, Massachusetts115Comprehensive Annual Financial Report Share of Debt Percentage Overlapping Town of Cohasset, Massachusetts Outstanding Applicable Debt Overlapping debt repaid with property taxes Norfolk County………………………………………………… $13,175,000 (a) 2.02% $ 130,596 Massachusetts Bay Transportation Authority……………… 5,478,860,000 (a) 0.11% 190,105 South Shore Regional Vocational School District…………… 345,000 (a) 0.13% 880 Subtotal, overlapping debt……………………………………………………………………………………………… 321,581 Total Town direct debt………………………………………………………………………………………………… 5,415,976 Total direct and overlapping debt………………………………………………………………………………………$ 5,737,557 (a) Outstanding debt as of June 30, 2020 Source: Official Statement Town of Cohasset, Massachusetts Direct and Overlapping Governmental Activities Debt As of June 30, 2020 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. Town of Cohasset, Massachusetts 116 Comprehensive Annual Financial Report 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Equalized Valuation……………………………$ 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 $ 3,003,315,832 $3,088,266,742Debt Limit -5% of Equalized Valuation…………$ 122,015,081 $ 123,287,761 $ 126,076,313 $ 127,113,873 $ 130,674,853 $ 133,780,052 $ 137,768,431 $ 146,390,713 $ 150,165,792 154,413,337 Less: Outstanding debt applicable to limit……………25,958,228 24,041,598 25,452,840 24,138,172 25,879,262 21,537,272 21,455,527 19,172,109 34,275,981 $14,124,204Legal debt margin…………………………$96,056,853 $ 99,246,163 $ 100,623,473 $ 102,975,701 $ 104,795,591 $ 112,242,780 $ 116,312,904 $ 127,218,604 $ 115,889,811 140,289,133 Total debt applicable to the limit as a percentage of the limit……………………21.27% 19.50% 20.19% 18.99% 19.80%16.10% 15.57% 13.10% 22.83% 9.15%Source: Treasurer's Department, Town of CohassetComputation of Legal Debt MarginLast Ten YearsTown of Cohasset, Massachusetts117Comprehensive Annual Financial Report PerCapitaPopulation Personal Personal Median School UnemploymentYear Estimates Income Income Age Enrollment Rate2011 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%2019 7,765 894,287,285$ 115,169$ 44 1,557 2.70%2020 7,955 653,200,960$ 82,112$ 44 1,500 2.60%Source: U. S. Census, Division of Local ServicesMedian age is based on most recent census dataDemographic and Economic StatisticsLast Ten YearsTown of Cohasset, Massachusetts118Comprehensive Annual Financial Report Nature Percentage of Percentage ofof Total Town Total TownEmployer Business Employees Rank Employment Employees Rank EmploymentShaw's Grocery Store 141 1 3.15% 130 2 3.53%Super Stop & Shop Grocery Store 120 2 2.68% 167 1 4.53%South Shore Music Circus Seasonal Entertainment 100 3 2.23% 72 5 1.95%Hingham Lumber Building Supplies 96 4 2.14% 75 4 2.04%Cohasset Hospitality Partners Inn/Restaurant 95 5 2.12% - - -Harborview Center for Nursing Rehab Rehabilitation Hospital 87 6 1.94% 65 6 1.76%Sunrise of Cohasset Assisted Living Facility 70 7 1.56% 60 7 1.63%Coldwell Banker Real Estate Agency 37 8 0.83% - - -Buttonwood Books & Toys Book and Toy Store 36 9 0.80% - - -Pilgrim Bank Bank 35 10 0.78% - - -Red Lion Inn Inn/Restaurant - - - 80 3 2.17%Cohasset Harbor Restaurant Motel/Restaurant - - - 25 8 0.68%817 18.24% 674 18.29%Source: Massachusetts Workplace Development Agency & the Town's personnel and department records.Principal EmployersCurrent Year and Nine Years Ago2020 2011Town of Cohasset, Massachusetts119Comprehensive Annual Financial Report 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Function Administration………………… 21 21 24 22 22 23 22 22 22 22 Police…………………………… 112 87 89 102 96 100 50 50 51 51 Fire……………………………… 27 35 36 35 33 31 50 50 50 50 Education……………………… 332 334 337 345 313 363 359 359 359 359 Sewer…………………………… 1 1 1 1 1 1 1 1 1 1 Public works…………………… 27 25 25 25 27 34 29 29 29 29 Human services……………… 10 13 14 12 12 9 10 10 10 10 Culture and recreation………… 53 68 69 74 75 118 130 130 130 130 Total …………………………… 583 584 595 616 579 679 651 651 652 652 Source: Town personnel records and various Town departments. Full-time Equivalent Town Employees by Function Last Ten Years Town of Cohasset, Massachusetts 120 Comprehensive Annual Financial Report Function/Program2011 2012 2013 2014 2015 2016 2017 2018 2019 2020AdministrationPopulation……………………………………………… 7,846 7,490 7,895 7,870 8,064 8,225 8,018 8,393 7,765 7,955 Registered voters, annual town election…………… 5,398 5,424 5,814 5,679 5,675 5,857 5,973 5,780 5,872 6,005 Town Clerk Births………………………………………………… 58 65 49 61 73 69 76 92 76 65 Marriages…………………………………………… 29 35 27 23 35 33 35 22 23 21 Deaths……………………………………………… 77 67 87 73 88 67 77 85 67 85 Police Accidents covered by an officer…………………….… 133 140 160 158 165 180 165 171 155 138 Citations issued………………………………………… 2,401 1,739 928 1,571 1,133 1,428 1,104 1,230 753 1,009 Arrests…………………………………………………… 113 115 151 167 141 163 131 121 75 63 Larcenies………………………………….…………… 89 80 56 76 87 82 75 68 60 65 Fire Total Reponses……………………………………… 2,086 2,218 2,154 1,418 2,357 2,080 2,376 1,966 2,039 1,587 Fire related calls……………………………………… 71 70 48 59 77 84 93 78 30 32 EMS/Rescue related calls………………………….. 930 953 1,001 715 1,019 984 944 909 809 761 Building Department Building permits issued……………………………… 407 304 388 398 421 501 472 397 445 402 Education Public school enrollment……………………………… 1,535 1,530 1,594 1,632 1,614 1,637 1,593 1,582 1,557 1,500 Public Works Cemetery Interments…………………………………………… 42 33 28 38 37 43 37 48 39 33 Water Service connections………………………...……… 2,492 2,512 2,567 2,571 2,580 2,611 2,638 2,654 2,658 2,665 Consumption in billions of gallons………………… 0.305 0.269 0.272 0.268 0.275 0.290 0.284 0.276 0.295 0.326Daily consumption in millions of gallons………… 0.836 0.736 0.745 0.734 0.754 0.794 0.778 0.756 0.809 0.893Sewer Service connections………………………...……… 1,274 1,385 1,538 1,559 1,562 1,593 1,610 n/a 1,632 1,642 Daily average collection (MGD)…………………… 0.2393 0.224 0.277 .274 .279 .299 .319 n/a .289 n/aHighwayMiles of public road………………………………… 33.50 33.50 33.50 33.50 33.50 33.50 33.50 33.50 33.50 34 Human ServicesBoard of Health Permits/Septic……………………………………… 26 21 17 29 32 35 25 26 25 21 Council on AgingHome delivered meals……………………………… 3,470 3,630 2,936 3,607 3,613 3,029 3,258 4,061 4219 5,711 Transportation……………………………………… 4,510 5,031 4,369 3,024 3,699 3,864 4,210 3555 4548 3,175 Volunteer service hours…………………………… 9,235 7,752 7,755 10,697 8,558 7,650 6,913 5322 5687 3,794 Fitness/exercise program participants…………… 172 301 319 219 255 297 190 310 447 396 Recreation/social event participants……………… 1,137 1,057 1,148 265 360 412 475 481 621 459 Libraries Volumes in collection………………………………… 70,364 68,404 67,396 222,020 220,014 220,014 127,853 93,475 95,523 115,235 Circulation…………………………………..………… 149,224 152,773 157,437 155,411 155,974 158,433 150,188 129,056 140,573 129,920 Program attendance…………………………………… 7,067 8,454 9,683 10,636 10,675 12,899 12,458 10,462 12,193 12,933 Source: Various Town Departmentsn/a: Information not availableOperating Indicators by Function/ProgramLast Ten YearsTown of Cohasset, Massachusetts121Comprehensive Annual Financial Report Function/Program2011 2012 2013 2014 2015 2016 2017 2018 2019 2020AdministrationNumber of buildings…………….……… 1 1 1 1 1 1 1 1 1 1PoliceNumber of stations……………………… 1 1 1 1 1 1 1 1 1 1FireNumber of stations……………………… 1 1 1 1 1 1 1 1 1 1Number of vehicles……………………… 10 10 10 10 10 10 10 10 10 10EducationNumber of elementary schools………… 2 2 2 2 2 2 2 2 2 2Number of middle schools……………… 1 1 1 1 1 1 1 1 1 1Number of high schools………………… 1 1 1 1 1 1 1 1 1 1Public WorksWater mains (miles)……………………… 46 46 46 46 46 46 46 46 46 46Fire hydrants……………………………… 496 496 496 496 496 496 496 496 496 496Sanitary sewers (miles)………………… 33 33 33 33 33 33 33 33 33 33Number of wells………………………… 1 1 1 1 1 1 1 1 1 1Number of water storage tanks………… 2 2 2 2 2 2 2 2 2 2Number of pump stations……………… 9 9 9 9 9 9 9 9 9 9Human ServicesSenior center……………………………… - - - - - 1 1 1 1 1Culture and RecreationRecreation building……………………… 1 1 1 1 1 1 1 1 1 1Library…………………………………… 1 1 1 1 1 1 1 1 1 1 Source: Various Town Departments Capital Asset Statistics by Function/ProgramLast Ten YearsTown of Cohasset, Massachusetts122Comprehensive Annual Financial Report