Town of Topsfield, Massachusetts
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TOWN OF ACTON, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30, 2015 On the Cover: The Acton Memorial Library has a rich tradition of meeting the diverse needs of its patrons. William Allan Wilde built the library in 1890. The original red brick and brownstone building housed a collection of 3,973 books and served a community of about 1,900 people. In 1967 the library was expanded with an addition by local architect Joseph Schiffer to enable the library to provide services for approximately 10,000 people and to hold a collection of 40,000 books. At Town Meeting in 1996, Acton citizens voted overwhelmingly to approve an article to expand the library from 10,000 to 30,000 square feet. The expanded building, designed to accommodate 102,000 books, included more space for people, collections, and computers, a much larger Children's Room, two meeting rooms, and increased parking. The expanded library opened its doors to the public in February, 1999. Open year round, NARA Park is a relatively new park off Rt. 27 in Acton, MA. This is a beautiful place to bring your family for some summer fun. It's never too hot here, as there always seems to be the perfect breeze to make things just right. During the summer, the beach portion has variety of boats (canoes, paddleboats) that can be rented for a small charge. The remaining park & playground area is free during the summer. There is a reasonably priced concession stand that provides hot dogs & pizza and various ice creams and snacks. There is a nice deck with umbrella table seating as well as covered seating. They have nice restrooms and outdoor showers for hosing off. The Park has a playground and large tented area in the summer which can be rented for outings, along with a smaller pavilion area. There is an amphitheater which has many concerts throughout the summer, including the weekly summer concert series. The amphitheater is, also, available for rental. The bowl of the amphitheater holds 3,000+/- people. NARA Park has multiple-fields for sports. The Park has a one mile trail that goes around the perimeter which is great for running or walking. Truly an elegant structure, the historic 1860 Exchange Hall is listed on the National Register of Historic Places and is one of Acton's most important buildings both historically and architecturally. It is an elaborate example of the Bracketed-Italianate style architecture. For over 150 years, Exchange Hall has been a vital part of the economic and social life of Acton. Acton was a dancing town and the third floor was intended for community use. Exchange Hall provided a meetinghouse for South Acton's first religious society from 1861-1878, and hosted lectures by Henry David Thoreau in the 1860's and Henry Ward Beecher in the 1870's. It was the site of many visits by John "Honey Fitz" Fitzgerald, ex-mayor of Boston, congressman and grandfather of President Kennedy. Honey Fitz sang "Sweet Adeline" from the hall stage on many occasions. He and Mary Josephine "Josie" Hannon, from Acton, were the parents of Rose Fitzgerald Kennedy. With the building's restoration in 2009, Exchange Hall continues the tradition by offering the hall for private or public dances, social gatherings, concerts, lectures and classes. A spring dance floor, installed in the late 1800's, has never needed repair. Town of Acton, Massachusetts Comprehensive Annual Financial Report For the Fiscal Year July 1, 2014 through June 30, 2015 Prepared by the Finance Department Town of Acton, Massachusetts Comprehensive Annual Financial Report For the Year Ended June 30, 2015 Table of Contents Page INTRODUCTORY SECTION Letter of Transmittal 2-5 Organizational Chart 6 List of Principal Officials 7 GFOA – Certificate of Achievement for Excellence in Financial Reporting 8 FINANCIAL SECTION Independent Auditors’ Report 10-12 Management's Discussion and Analysis (Required Supplementary Information) 13-22 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 24 Statement of Activities 25 Fund Financial Statements Balance Sheet - Governmental Funds 26 Reconciliation of the Balance Sheet - Governmental Funds to the Government-wide Statement of Net Position 27 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 28 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Government-wide Statement of Activities 29 Statement of Net Position - Proprietary Funds 30 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds 31 Statement of Cash Flows - Proprietary Fund 32 Statement of Fiduciary Net Position – Fiduciary Funds 33 Statement of Changes in Fiduciary Net Position – Fiduciary Funds 34 Notes to the Financial Statements 35-68 Required Supplementary Information Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual - General Fund 70-76 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual - Community Preservation Act Fund 77 Schedule of the Town of Acton Massachusetts’ Proportionate Share of the Net Pension Liability - Middlesex County Retirement System 78 Schedule of the Town of Acton Massachusetts’ Contributions – Middlesex County Retirement System 79 Schedule of the Town of Acton Massachusetts’ Proportionate Share of the Collective Net Pension Liability - Massachusetts Teachers’ Retirement System 80 Schedule of Funding Progress and Employer’s Contributions – Other Post Employment Benefits 81 Valuation Details – Other Post Employment Benefits 82 Notes to the Required Supplementary Information 83-88 Combining and Individual Fund Financial Statements and Schedules: Nonmajor Governmental Fund Categories 90 Town of Acton, Massachusetts Comprehensive Annual Financial Report For the Year Ended June 30, 2015 Table Contents Combining Balance Sheet – Nonmajor Governmental Funds 92,93 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 94,95 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Non Major Special Revenue - Council on Aging Fund 96 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Non Major Special Revenue - Septage Fund 97 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Non Major Special Revenue - Ambulance Fund 98 Fiduciary Fund Categories 99 Combining Statement of Net Position – Fiduciary Funds 100 Combining Statement of Changes in Net Position – Fiduciary Funds 101 Statement of Changes in Assets and Liabilities - Agency Fund 102 STATISTICAL SECTION Financial Trends: Net Position by Component – Last Ten Fiscal Years 105 Changes in Net Position – Last Ten Fiscal Years 106,107 Fund Balances - Governmental Funds – Last Ten Fiscal Years 108 Changes in Fund Balances - Governmental Funds – Last Ten Fiscal Years 109 Revenue Capacity: Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years 110 Principal Property Taxpayers – Current Year and Nine Years Ago 111 Property Tax Levies and Collections – Last Ten Fiscal Years 112 Debt Capacity: Ratios of Outstanding Debt by Type and General Bonded Debt – Last Ten Fiscal Years 113 Direct and Overlapping Governmental Activities Debt – as of June 30, 2015 114 Legal Debt Margin Information – Last Ten Fiscal Years 115 Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years 116 Principal Employers – Current Year and Nine Years Ago 117 Operating Information: Full-Time Equivalent Employees by Function – Last Ten Fiscal Years 118 Operating Indicators by Function/Program – Last Ten Fiscal Years 119 Capital Assets Statistics by Function/Program – Last Ten Fiscal Years 120 INTRODUCTORY SECTION 1 Town of Acton 472 Main Street Acton, MA 01720 (978) 929-6624 Telephone Finance Department Stephen G. Barrett, CPA, Director Brian McMullen, Assistant Director Letter of Transmittal December 21, 2015 To the Honorable Board of Selectmen and Citizens of the Town of Acton: At the close of each fiscal year, state law requires the Town of Acton to publish a complete set of audited financial statements in conformance with accounting principles generally accepted in the United States of America (GAAP) and that are audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue this Comprehensive Annual Financial Report (CAFR) of the Town of Acton, Massachusetts, for the fiscal year ending June 30, 2015 for your review. The report consists of management's representations concerning the finances of the Town. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the assets of the Town from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that to the best of our knowledge and belief,