HomeMy WebLinkAbout2013 Annual Report - Part 4TOWN OF
READING, MASSACHUSETTS
Annual Financial Statements
For the Year Ended June 30, 2013
293
TABLE OF CONTENTS
295
PAGE
INDEPENDENT AUDITORS' REPORT
A-1
MANAGEMENT'S DISCUSSION AND ANALYSIS.
A� 5
BASIC FINANCIAL STATEMENTS: .
Government -wide Financial Statements:
Statement of Net Position
A-15
Statement of Activities
A-16
Fund Financial Statements:
Governmental Funds:
Balance Sheet
A-18
Reconciliation of Total Governmental Fund Balances to
Net Position of Governmental Activities in the Statement
A -19
of Net Position
Statement of Revenues, Expenditures, and Changes
in Fund Balances
A-20
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to
the Statement of Activities
a- 21
Statement of Revenues and Other Sources, and Expenditures
and Other Uses - Budget and Actual - General Fund
A- 22
Proprietary Funds:
Statement of Net Position
A- 23
Statement of Revenues, Expenses, and Changes in Fund
Net Position
A-24
Statement of Cash Flows
R- 25
Fiduciary Funds:
Statement of Fiduciary Net Position
26
Statement of Changes in Fiduciary Net Position
A -27
Notes to Financial Statements
A- 28
Electric Light Plant Notes to the Financial Statements
A -57
295
PAGE
REQUIRED SUPPLEMENTARY INFORMATION:
Schedule of Funding Progress A -75
SUPPLEMENTARY INFORMATION:
Combining Balance Sheet - Nonmajor Governmental Funds
A -76
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds
A -8o
Combining Schedule of Net Position - Nonmajor Proprietary Funds
A-84
Combining Schedule of Revenues, Expenses and Changes
in Fund Net Position - Nonmajor Proprietary Funds
A -85
Combining Schedule of Cash Flows - Nonmajor Proprietary Funds
A-86
296
MELANSON HEAni & COMPANY, Pc
URrimi) Pubic Ac,coux**IANIS
M.AItAPFNm -- -t Anvisoits
INDEPENDENT AUDITORS' REPORT
To the Board of Selectmen
Town of Reading, Massachusetts
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activi-
ties, the business -type activities, each major fund, and the aggregate remaining fund
information of the Town of Reading, Massachusetts, as of and for the year ended
June 30, 2013, and the related notes to the financial statements, which collectively
comprise the Town's basic financial statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
The Town's 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 Govemment 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 assess-
ments, the auditor considers internal control relevant to the entity's preparation an
102 Pewimeter Road 149 Hamwn- Street • 10 N,!w Ei!gland Business a-nta-Drive Sudte 107 • 51 Davis Stw,t Suite I P.O. Bm- 646
Nashna, NH 03063 Manchester. NH 03101 Andm%J(A 0 18 10 GrcenfW, MA 01301 Eps+eorth, ME 04605
800.282 -24402 9 7teummelansonhead►.wm
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 opin-
ion 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 Reading, Massachusetts, as of June 30, 2013, and the respective changes in
financial position and, where applicable, cash flows thereof and the respective budget-
ary comparison for the general fund for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters ,
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
Management's Discussion and Analysis and Schedule of Funding Progress be pre-
sented 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 supple-
mentary 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 evidence sufficient to express an opinion or
provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial state-
ments that collectively comprise the Town's basic financial statements. The accom-
panying supplementary information appearing on pages 76 through 86 is presented
for purposes of additional analysis and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived
from and relates directly to the underlying accounting and other records used to
prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the
Underlying accounting and other records used to prepare the financial statements or
to the financial statements themselves, and other additional procedures in accord-
ance with auditing standards generally accepted in the United States of America. In
our opinion, the information is fairly stated in all material respects in relation to the
financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report
dated February 27, 2014 on our consideration of the Town's internal control over
financial reporting and on our tests of its oompliance 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 report-
ing and compliance and the results of that testing, and not to provide an opinion on
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 Town's internal control over financial reporting and compliance.
Andover, Massachusetts
February 27, 2014
299
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Town of Reading, Massachusetts we offer readers this
narrative overview and analysis of the financial activities of the Town for the fiscal
year ended June 30, 2013. Unless otherwise noted, all amounts reported in this
analysis are expressed In thousands.
A. OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended'to serve as an introduction to the basic
financial statements. The basic financial statements are comprised of three com-
ponents: (1) government -wide financial statements, (2) fund financial state-
ments, and (3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements them-
selves.
Government -wide financial statements. The government -vide financial state-
ments are designed to provide readers with a broad overview of our finances in
a manner similar to a private - sector business.
The Statement of Net Position presents information on all assets and liabilities,
with the difference between the two reported as net "position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the finan-
cial position is improving or deteriorating.
The Statement of Activities presents information showing how the government's
net position changed during the most recent fiscal year. All changes in net
position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
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 general government, public safety, educa-
tion, public works, health and human services,, and culture and recreation. The
business -type activities include water supply and distribution, sewer disposal,
landfill, electric, and storm water activities.
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 activi-
ties or objectives. Fund accounting is used to ensure and demonstrate compli-
300
ance with finance- related legal requirements. All of the funds 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 financial statements focus on near -term inflows and outflows
of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating a
government's near -term financing requirements.
Because the focus of governmental funds is narrower than that of the government-
wide financial statementsi 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 deci-
sions. Both the governmental fund balance sheet and the govemmental fund
statement of revenues, expendityres and changes in fund balances provide
a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
An. annual appropriated budget is adopted for the general fund. A budgetary
comparison statement has been provided for the general fund to demonstrate
compliance with this budget.
Proprietary funds. Proprietary funds are maintained as follows:
Enterprise funds are used to report the same functions presented as business -
type activities in the government- widefinancial statements. Specifically, enter-
prise funds are used to account for water, sewer, landfill, electric, and storm
water operations.
Proprietary funds provide the same type of information as the business -type
activities reported in the government -wide financial statements, only*in more
detail. The proprietary fund financial statements provide separate information
for the water, sewer, landfill, electric, and storm water operations. Water and
electric operations are considered to be major funds.
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
govemment wide financial statements because the resources of those funds are
not available to support the Town's own programs. The accounting used for-fidu-
ciary 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.
301
Other information. In addition to the basic financial statements and accom-
panying notes, this report also presents certain required supplementary infor-
mation which is required to be disclosed by accounting principles generally
accepted in the United States of America.
B. FINANCIAL HIGHLIGHTS
• As of the close of the current fiscal year, the total of assets exceeded liabili-
ties by $236,298 (i.e., net position), a change of $4,779 in comparison to the
prior year.
• As of the close of the current fiscal year, governmental funds reported com-
bined ending fund balances of $31,537, a change of $2,158 in comparison to
the prior year.
• At the end of the current fiscal year, unassigned fund balance for the general
fund was $10,508, a change of $780 in comparison to the prior year.
• Total bonds payable at the close of the current fiscal year was $35,989, a
change of $(4,664) in comparison to the prior year.
C. GOVERNMENT -WIDE FINANCIAL ANALYSIS
The following is a summary of condensed government -wide financial data for the
current and prior fiscal years.
Current and other assets
Capital assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net position:
Net Investment in capital assets
Restricted
Unrestricted
Total net position
NET POSITION
Governmental
Activities
2013 2012
$ 40,444 $ 37,452
124,529 128,670
164,973 166,122
Business -Type
Activities Total
2013 2012 2013 2012
48,672 $ 49,264 $ 89,116 $ 86,716
91,533 89,594 216,062 218,264
140,205 138,858 305,178 304,980
39,458
41,898
14,428
16,642
53,886
58,540
7,702
6,870
7,292
8,051
14,994
14,921
47,160
48,768
21,720
24,693
68,880
73,461
99,515
100,475
81,395
79,844
180,910
180,319
17,475
15,580
2,734
3,981
20,209
19,561
823
1,299
34,356
30,340
35,179
31,639
$ 117,813 $
117,354 $
118,485 $
114,165 $
236,298 $
231,519
302
Revenues:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Property taxes
Excises
Penalties, interest, and
other taxes
Grants and contributions
not restricted to specific
programs
Investment Income
Other
Total revenues
Expenses:
General government
Public safety
Education
Public works
Human services
Culture and recreation
Employee benefits
Interest on long-term debt
Intergovernmental
Electric
Water
Other
Total expenses
Change in net position
before transfers
Transfers in (out)
Change in net position
Net position - beginning of year
Net position - end of year
CHANGES IN NET POSITION
4;336
11#826
11,737
Govemmental
'Business Type
8,062
7,306
Activities
Activities
Total
3,297
2013
2012
2013
2012
2013
2012
$ 7,043 $
7,437 $
95,370 $
92,725 $
102,413 $
100,162
21,759
21,039
53
325
21,812
21,364
1,388
1,651
31
199
1,419
1,849
54,504
53,082
-
-
54,504
53,082
3,090
2,834
-
-
3,090
2,834
853
842
-
-
853
842
3,417
7,237
-
-
3,417
7,237
542
584
33
100
575
684
857
667
1,077
892
1,934
1,559
93,453
95,373
96,564
94,241
190,017
189,613
4,943
4;336
11#826
11,737
64,838
63,731
8,062
7,306
935
1,354
3,134
3,297
1,220
3,706
951
956
- - 4,943
4,336
- - 11,826
11,737
- - 64,838
63,731
- 8,062
7,306
- - 935
1,354
- - 3,134
3,297
- - 1,220
3,706
- - 951
956
79,431 77,949 79,431
77,949
4,356 4,435 4,356
4,435
5,542 5,297 5,542
5,297
95,909
96,423
89,329
87,681
' 185,238
184,104
(2,456)
(1,050)
7,235
.6,560
4,779
5,509
2,915
2,842
(2,915)
(2,842)
-
-
459
1,792
4,320
3,718
4,779
5,509
117,354
115,562
114,165
110,447
231,519
226,010
$ 117,613 $ 117,354 $ 118,485 $ 114,165 $ 236,298 $ 231,519
��v
303
As noted earlier, net position may serve over time as a useful indicator of a
government's financial position. At the close of the most recent fiscal year,
total net position was $236,298, a change of $4,779 from the prior year.
The largest portion of net position $180,910 reflects our investment in capital
assets (e.g., land, buildings, machinery, and equipment); less any related debt
used to acquire those assets that is still outstanding. These capital assets are
used to provide services to citizens; consequently,, these assets are not available
for future spending. Although the investment in capital assets is reported net of
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 net position $20,209 represents resources that are sub-
ject to external restrictions on how they may be used. The remaining balance
of unrestricted net position $35,179 may be used to meet the governments
ongoing obligations to citizens and creditors.
Governmental activities. Govemmental activities for the year resulted in a
change in net position of $459. Key elements bf this change are as follows:
General fund expenditures exceeding revenues $ (3,333)
PILOT from RMLD
2,265
Enterprise fund indirect costs
649
Subtotal General Fund
(419)
Special revenue and permanent fund revenues
exceeding expenditures
1,843
Library renovations state grant revenue
1,021
Current year revenue used for the acquisition
of capital assets
1,696
Depreciation expense exceeding debt service
principal
(2,590)
Increase in net OPEB obligation
(1,325)
Other
233
Total
$ 459
Business_type activities. Business -type activities, for the year resulted in a
change in net position of $4,320. Key elements of this change are as follows:
• The electric operations had revenues of $83,479 and expenses and
transfers of $81,696, resulting in a change in net position of $1,783.
• The water operations had revenues of $6,003 and expenses and transfers
of $4,741, resulting in a change in net position of $1,262.
304
• The sewer operations had revenues of $6,677 and expenses and
transfers of $5,571, resulting in a change in net position of $1,106.
• The landfill operations did not report any revenues or expenditures.
• The storm water management operations had revenues of $404 and
expenses of $235, resulting in a change in net position of $169.
D. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, fund accounting is used 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 fiscal year.
As of the end of the current fiscal year, governmental funds reported combined
ending fund balances of $31,537, a change of $2,158 in comparison to the prior
year. Key elements of this change are as follows:
General fund expenditures exceeding revenues $ (3,333)
PILOT from RMLD
2,265
Enterprise fund indirect costs
649
Subtotal General Fund
(419)
New construction inspection permit revenue
368
Sale of Lothrop Road and Pearl Street properties
320
Special education tuition receipts
246
Other special revenue and permanent fund
revenues exceeding expenditures
542
Library renovations state grant revenue
1,021
Other
80
Total
$ 2,158
The general fund is the chief operating fund. At the end of the current fiscal year,
unassigned fund balance of the general fund was $10,508, while total fund bal-
ance was $14,177. As a measure of the general fund's liquidity, it may be useful
to compare both unassigned fund balance and total fund balance to total general
fund expenditures. Refer to the table below.
305
% of
Total General
General Fund 6/30/13 6130/12 Chance Fund Expenditures
Unassigned fund balance $ 10,508 $ 9,728 (a) $ 780 12.4%
Total fund balance 14,177 14,129 48 16.7%
(')Restated to include the Town's general stabilization account balance.
The total fund balance of the general fund changed by $48 during the current
fiscal year. Key factors in this change are as follows:
General fund:
Use of free cash and overlay surplus as a. funding source $ (2,042)
Use of MS BA grant for debt service
(216)
Revenues in excess of budget
1,441
Expenditures less than budget
1,267
Expenditures of prior year encumbrances greater
1,545 $
than current year encumbrances
(314)
Other
(88
Total
$ 48
Included in the total general fund balance are the Town's stabilization accounts
with. the following balances:
(*The Town used $10,800 of debt reserves to pay down school related debt.
(D)Reclassilled the Town's general stabilization account to unassigned fund balance.
1:
6/30/13
6/30/12
Change
Stabilization - general
$ 1,550 •$
1,545 $
5
Stabilization - smart growth
310
369
(59)
Stabilization - sick buy -back
55
31
24
Total
$' 1,915 $
1 $
(30�
The following table reflects the trend in all the components of the general
fund's
fund balance:
Last Six Fiscal Years
Assigned for
Restricted Committed for
Subsequent
As of for Debt Stabilization
Assigned for
Year's
Total Fund
30-Jun Service Fund
Encumbrances
Expenditures
Unassigned
Balance
2008 $ 4,362 $ - (b)
$ 1,597
$ 227
$ 7,905 a)
$ 14,091
2009 - 350 (b)
1,210
763
7,976 tw
10,299
2010 12,530 375 (°)
1,486
1,491
7,822 (°)
23,706
2011 11,833 705 IN
1,006
928
8,649 (b)
23,121
2012 1,033 (') 400 M
1,492
1,476
9,728 ro)
14,129 (�
2013 817 365 (D)
1,087
1,400
10,508
14,177
(*The Town used $10,800 of debt reserves to pay down school related debt.
(D)Reclassilled the Town's general stabilization account to unassigned fund balance.
1:
Proprietary funds. Proprietary funds provide the same type of information found
in the business -type activities reported in the government -wide financial state-
ments, but in more detail.
Net position of the enterprise funds at the end of the year amounted to $118,485,
a change of $4,320 in comparison to the prior year. Factors concerning the
finances of proprietary funds have already been addressed in the entity -wide
discussion of business -type activities.
E. GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget resulted
in an overall change in appropriations of $1,367. Major reasons for these
amendments include:
• $424 increase in stabilization account funding
• $250 increase in snow and ice funding
• $152 increase in Town /School capital expenses
• $125 Increase in fire-department sick/vacation leave buy -back
• $112 increase In public safety wages
• $304 increase in other departmental.expenses
Of this increase, $686 was funded by additional state aid, $566 from free cash,
$295 through the tax levy, and $50 from transfers in from other funds. In addition,
other local revenues were reduced by $230.
F. CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. Total investment in capital assets for governmental and business -
type activities at yearend amounted to $216,062 (net of accumulated deprecia-
tion), a change of $(2,202) from the prior year. This investment in capital assets
includes land, buildings and system, improvements, and machinery and equip-
ment.
Major capital asset events during the current fiscal year included the following:
307
Governmental additions:
$ 733 in roadway improvements
$ 373 in various school improvements
$ 135 for a sidewalk snow plow
$ 116 in Town Hall technology improvements
Business -type additions:
$ 5,574 In electric improvements
$ 1,185 in water improvements
$ 333 in sewer improvements
$ 190 in stormwater improvements
Additional information on capital assets can be found in the Notes to Financial
Statements.
Lona term debt. At the end of the current fiscal year, total bonded debt out-
standing was $35,989, all of which was backed by the full faith and credit of the
government.
Additional information on capital assets and long -term debt can be found in the
Notes to Financial Statements.
G. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The adopted FY14 General Fund budget of $80,365 is a 3.5% increase over the
prior year. The FY14 budget is balanced.
FY2014 State aid will be $13,096 which represents a 1.1% percent increase over
prior year.
The tax levy for FY14 of $56,444 represents a 2.5% increase ovbr the prior year.
The FY14 tax rate is $14.74 per thousand compared to $14.94 in the prior year.
Overall, property values increased 4.0% to $3,829,000.
For FY2014, the Board of Selectmen, acting as the Water and Sewer Commis-
sioners, voted to increase Water Rates by 2.3% and Sewer Rates by 5.9% for all
customers effective September 2013. These increases are expected to cover all
operations, planned infrastructure improvements, and debt.
The State passed legislation allowing Massachusetts municipalities to pass a
Local Option Meals Tax,of 0.75% with 100% of the revenue going to the Town.
Reading voted to accept this local option at their November 2010 Town Meeting.
m
We received revenue in FY2013 totaling $343. The FY14 revenue budgeted for
this tax is $365.
The Town is working on an $18,400 capital improvement project for remodeling
our library. in April 2013, voters approved $14,900 of debt exclusion. In April
2014, voters will be asked to approve an additional $3,500 of debt exclusion.
Note that of these totals, the state bas approved $5,100 of grant funding for the
project, and the balance will be the local share.
At April 2012 Town Meeting, the Town voted to adopt Massachusetts General
Laws Chapter 32B, Section 20 which allows the Town to set up an irrevocable trust
for (OPEB), Other Post - Employment Benefits liabilities. Currently, the funds set
aside in this trust are invested in MMDT, which invests in US Treasuries, commer-
cial paper, and very short-term bonds according to the prudent investor rule set
forth in Chapter 203C. The Town is exploring the possibility of investing the funds
in the (SRBT) State Retiree Benefits Trust Fund administered by PRIM. The SRBT
funds are invested in Pension Reserve Investment Trust (PRIT). Investment In
PRIT offers higher returns which would reduce the Town's unfunded OPEB liability.
REQUESTS FOR INFORMATION
This financial report is designed-to provide a general overview of the Town of
Reading'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:
Town Accountant
Town Hall
16 Lowell Street
Reading, MA 01867
309
TOWN OF READING, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30,2D13
310
Gouanmental
Buslness -Type
AcU les
ActhiNes
Totaf
ASSETS
Ctrrent:
Cash and shorkerm Irnestmeds
$ 29,388,298
$ 16,141,675
$ 45,527.973
ResMded cash
-
18,035,438
18,035,438
M ants
sstm
8,822,898
-
8,822.898
ReceheWes, net of dowenee for wbllectihles:
Property taxes
348,737
-
348,737
Excises
247,031
-
247,031
Userfm
-
12,114,088
12,114,088
Departmental and other
459,918
-
459,918
Interpovenrnen<al
613,843
-
613,643
Prepaid assets
-
691,445
891,445
Inventory
-
1.65080
1,852,960
Other assets
8,055
-
8.085
Nono a t
Imm nerd In associated companies
-
36,774
36,774
Recehables, net of ak wauce for rrrcolledibles:
Property taxes
559,986
-
558,888
capital assts be ft depreciated, net
120,397,393
89,778,124
210.175,517
Capital assets not bebug depreciated
4,131,446
1,754,799
5,868,244
TOTAL ASSETS
184,973,390
140,205,283
305.178,673
LIABILITIES
Crarent:
Warrants payable
1,943,693
5,517,174
7,460,887
Acwjed pabiAtiea
3,895,647
619,481
4,615,106
Unewad
179,703
-
179,703
Customer advances forconsMidion
-
405.154
405,154
Customer deposits
-
700,021
700,021
Ralatregepayable
1,104,104
-
1,104,104
Other curant gabIliUes
578,844
61,373
630,217
Cunaut portion of bnp4vm WMIes:
Banda and bras payable
3,220,349
1,013,539
4,233,888
Accrued empioyee benefits
Non d:
57 ,320
384,518
441,847
wn
Bonds and bars payable, net of current portion
22,000,340
9,754,387
31,754,727
Accrued wnpbyae bwWb
11680,853
2,832,632
4.413,285
Net OPES d*patlon
12,599,089
442,483
13,041,652
TOTAL LMUTMS
47,159,751
21,720,722
68,880,473
NET POSITION
Net bmtrrerd In capital assets
99,515,153
81,395,441
160,910,694
ResMded for
Grants and other statutory restdcUons
8.389,980
2,733,147
11,123,127
Pemwrwd lads:
Nonexpendable
2,967,075
-
2,967,075
Expendable
6,118,498
-
8,118,498
Uvestdded
822 ,933
34,355.973
35,178,908
TOTAL NET POSITION
S 117 813.869
S 118,581
$
The eccompav ft rates are an integral part d these financial statements.
310
TOWN OF READING, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2013
Total general revenues and transfats
Change In Net Position
Net Position:
Beginning of year
End of year
The accompanying notes are an integral part of these financial statements.
.311
Program Revenues
Operating
Capital
Charges for Grants and
Grants and
Expenses
Services Contributions
Contributions
Govemmental Activities:
General govemment
$ 4,942,781
$ 436,450 $ 146,523
$ -
Public safety
11,826,097
2,235,805 90,331
-
Education
64,837,662
3,662,465 21,215,998
-
Public works
8,061,935
165,683 1,250
366,644
Health and human seMces
934,775
125,236 266,117
-
Culture and recreation
3,134,593
397,588 38,679
1,021,023
Debt service interest
1,219,961
-
Intergovemmentai
951,306
- -
-
Total Guvemmental ActWes
95,909,130
7,043,227 21,758,898
1,387,667
Business -Type Activities:
'
Electric operations
79 ,430,833
82,294,531 53,074
30,965
Water operations
4,355,920
5,998,510 -
-
Other
5,542,448
7,076,993 -`
-
Total Business -type Activities
89,329,201
95,370,034 53,074
30,965
Total
$ 185,238,331
$ 102,413,261 $ 21,811,972
$ 1,418,632
General Revenues and Transfers:
Property taxes
Excises
Penalties, Interest and other taxes
Grants and contributions not restricted
to specific programs
Investment Income
Other
Transfers, net
Total general revenues and transfats
Change In Net Position
Net Position:
Beginning of year
End of year
The accompanying notes are an integral part of these financial statements.
.311
Net (Expenses) Revenues and Changes in Net Position
Business-
Govemmental Type
Activities Activities Total
$ (4,359,808) $
- $ (4,359,808)
(9,499,961)
- (9,499,981)
(39,959,199)
- (39,959,199)
(7,508,358)
- (7,508,358)
(543,422)
- (543,422)
(1,677,303)
- (1,677.303)
(1,219,981)
- (1,219,981)
(951,306)
- (951.306)
(65,719,338) - (65,719,338)
-
2,947,737
2,947,737
-
1,642,590
1,642,590
-
1,534,545
1,534,545
-
6,124,872
6,124,872
(65,719,338)
6,124,872
(59,594,486)
54,503,950
-
54,503,950
3,090,305
-
3.090,305
653.484
-
853,484
3,418,574
-
3,416,574
542,533
33,219
575,752
857.459
1.076,374
1,933,833
2,914,541
(2,914,541)
-
66,178,846
(1,804,948)
64,373,898
459,508
4,319,924
4,779,432
117,354,131
114,164,637
231,518,768
$ 117,813,639
$ 118,484,561
$ 236,298,200
312
TOWN OF READING, MASSACHUSETTS
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2013
The accompanying notes are an Integral part of these inaneuM statements.
313
Nonmajor
Total
Governmental
Govemmental
General
Funds
Funds
ASSETS
Cash and short-term 6nestments
$
19,745,936
$ 9,640,362
$
29,386,298
Investments
-
8,822,898
8,822,896
Receivables:
Property taxes
1,027,251
-
1;027,251
Excises
335,368
-
335,388
Departmental and other
365,717
94,199
459,916
Intergovernmental
73,007
540,636
613,643
Other assets
6,085
-
6,065
TOTAL ASSETS
$
21,553,364
$ 19,098,093
$
40,851,457
LIABILITIES
Vyarrants payable
$
1,763,613
$ 180,080
$
1,943,693
Accrued liabilities
3,358,483
179,464
3,537,947
Unearned revenue
-
179,703
179,703
Retainage payable
-
1,104,104
1,104,104
Other liabilities
578,844
578,844
TOTAL LIABILITIES
5,700,940
1;643,351
7,344,291
DEFERRED INFLOWS OF RESOURCES
1,675,643
94,199
1,769,642
FUND BALANCES
Nonspendable
-
2.967,076
2,987,075
Restricted
817,305
14,508,473
15,325,778
Committed
365,413
-
, 365,413
Assigned
2,486,291
-
2,486,291
.Unassigned
10,507,772
{115,005}
10,392,767
TOTAL FUND BALANCES
14,176,781
17,360,643
31,537,324
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCES
$
21,553,364
$ 19,098,093
$
40,851,4S7
The accompanying notes are an Integral part of these inaneuM statements.
313
TOWN OF READING, MASSACHUSETTS
RECONCILIATION OF TOTAL GOVERNMENTAL FUND
BALANCES TO NET POSITION OF GOVERNMENTAL
ACTIVITIES IN THE STATEMENT OF NET POSITION
JUNE 30, 2013
Total governmental fund balances
M
• Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
• Revenues are reported on the accrual basis of accounting
and are not deferred until collection.
• In the Statement of Activities, interest is accrued on outstanding
long -term debt, whereas in governmental funds interest is not
reported until due.
$ 31,537,324
124,528,838
1,562,937
(357,700)
• Long -term liabilities, (bonds payable, accrued employee benefits
and net OPEB obligation) are not due and payable in the current period,
and, therefore, are not reported in the governmenial funds. (39,457,760)
Net position of governmental activities $ 117,813,639
The accompanying notes are an Integral part of these financial statements.
314
TOWN OF READING, MASSACHUSETTS
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, E)PENDtTURES AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2013
The accompanying notes are an integral part of these financial statements.
315
Nonmajor
I Total
Goremmental
Goyar mental
General
Funds
Funds
Revenues:
Property taxes
$ 54,364,039
$ -
$ 54,384,039
Excises
3,020,149
3,020,149
Penalties, interest and other taxes
853,484
-
853,484
Departmental
1,595,743
5,148,495
6,744,238
Licenses and permits
197,338
-
197,338
Fines and forfeitures
97,719
-
97,719
Irrtergoremmertal
21,317,279
5,245,860
26,563,139
knestment income
92,051
345,168
437,219
Otter
124,331
741,246
865,577
Total Revenues
81,682,133
11,480,769
3j62,902
Expenditures:
Current:
General goonmert
3,930,929
176,522
4,107,451
Public safety
8,868,241
745,823
9,614,064
Education
45,163,804
6,959,912
52,123,716
Public works
6,067,025
216,649
6,283,674
Health and human services
570,796
261,766
832,562
Culture and recreation
2,048,377
543,370
2,591,747
Employee benefits
12,842,249
-
12,842,249
Debt service
4,672,367
4,572,367
I tergommmental
951,306
-
951,306
Total Expenditures
85,015,094
8,904,042
93,919,136
Excess (deficiency) d revenues
orerexpenddures
(3,332,961)
2,576;727
(756,234)
Other Financing Sources (Uses):
Transfers in
3,410,575
30,000
3,440,575
Transfers out
(496,034)
(526,034)
Total Other Finking Sources (Uses)
_30,0080
3,380,575
(466,034)
2,914,541
Net change In fund balances
47,614
2,110,693
2,158,307
Fund Balances, at Booming of Year
14,129,167
15,249,850
29,379,017
Fund Balances, at End of Year
$ 14,176,781
$ 17,360,543
$ 31,537,324
The accompanying notes are an integral part of these financial statements.
315
TOWN OF READING, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES
EXPENDITURES, AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2013
Net changes in fund balances - Total governmental funds $ 2,158,307
• 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 purchases, net of dispositions
1,982,898
Depreciation
(6,124,895)
• Revenues in the Statement of Activities that do not provide current
financial resources are fully deferred in the Statement of Revenues,
Expenditures and Changes in Fund Balances. Therefore, the
recognition of revenue for various types of accounts receivable
(i.e., real estate and personal property, motor vehicle excise, etc.)
differ between the two statements. This amount represents the
net change M deferred revenue.
185,881
• The issuance of long -term debt (e.g., bonds) 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, however,
has -any effect on net position:
Repayments of debt
3,535,000
Current year amortization of bond premiums
24,238
• In the Statement of Activities, Interest is accrued on outstanding
long4erm debt, whereas In governmental funds interest is not
reported until due.
(101,538)
• Some expenses reported in the statement of activities, ou'Ph as
compensated absences, do not require the use of current financial
resources and therefore, are not reported as expenditures in the
governmental funds:
Accrued employee benefits
124,620
Net OPEB obligation
(1,325,003)
Change in net position of governmental activities
$ 459,508
The accompanying notes are an integral part of these financial statements.
316
TOWN OF READING, MASSACHUSETTS
GENERALFUND
STATEMENT OF REVENUES AND OTHER SOURCES, AND E )PENDITURES AND OTHER USES - BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2013
The accompanying notes we an Integral pat of these financial statements.
317
Budgeted Amourds
Variance with
Final Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
Rave nues and Trensfem
Taxes
$ 64,143,695
$ 54,438,695
$ 54,438,895
$
Excise taxes
2,800,000
2,650,000
3,020,149
370,149
Penalties, Interest and other taxes
745,000
785,000
853,484
68,484
Departmental
1,475,000
1,475,000
1,695,743
120,743
Licenses and permits
135,000
140,000
197,338
67,338
Fines and for(dures
110,000
110,000
97,719
(12,281)
Intergowmme ad
12,400,000
13,085,784
13,623,980
538,196
kaAShnent income
225,000
100,000
92,051
(7,949)
Other
-
-
124,331
124,331
Transfers In
3,779,9211
3,829,494
4,011,421
161,927
Total Revenues and Transfers
75,813,623
76,613,973
78,054,911
1,440,938
Experdtknres and Transfers:
C,eneralgommmerd
3,881,320
4,093,796
3,893,233
200,563
Puimic safety
8,639,778
8,935,702
6,1355,945
79,757
Education
37,582,284
37,880,874
37,838,833
24,041
Public works
5,881,513
6,050,413
5,749,722
300,791
Health and hurrnan services
860,101
889,715
570,725
119,050
Culture and leisure
2,069,113
2,098,858
2,01,345
33,511
idergow"In ntet
94079
972,755
951,308
21,449
Employee bents
13,329,635
13,329,635
12,855,420
474,215
Debt Samoa
4,639,675
4,686,075
4,672,367
13,700
Transfers out
-
454,000
454,000
Total Expenditures and Tran etas
77,605,398
78,871,981
77,604,896
1,267,065
Excess (deficieney) of reverures and other
sources over expenditures and other uses
(1,691,775)
(2,258,008)
450.015
2,706,023
Other Financing Sources:
Use of free cash
For operating budget support
1,000,000
1.142,233
-
(1,142,233)
For stabilization account furnd M
424,000
(424,000)
Use d owlay surplus
475,947
475,947
-
(475,947)
Use o(RMHS debt savice reserve
215,628
215,628
-
(215,828)
Total Other Financing Sources
1,691,775
2,258,008
2( 256,008)
Excess of revenues and other
sources ovor expenditures and other uses
$ -
i -
$ 450,015
S 450,015
The accompanying notes we an Integral pat of these financial statements.
317
TOWN OF READING, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2013
The acumparriing notes are an integral part of these financial statements.
318
I
Business-Type Acil4des
Eraerprise
Funds
Electric
Ohbion
water
Non Major
Ulm
Find
Funds
Total
ASSETS
Currant
Cash and short-term knisMarsa
i 9,151,851
L 36521,970
i 3,487,854
= 18,141,875
User law, netof allowance for unedbetibba
8,381,377
1,714,9811
2,017,711
12,114,068
Prepaid ercpaaes
891.445
691,445
Inwdory
1.589,030
83,301
829
1.852,980
Total current assets
19,793,703
5,320,251
5,488,184
30,800,148
Noncurrent:
ResirloWd cash and ash oq *AWU
18,035,438
-
-
18,035,438
tnsabneM in associated companies
36.774
4774
CupBel oasis b*V depreelaled, fist
68,94575
14,290.972
6,658,577
89.778,124
Capital asset not babe depreciated
1,255,842
121,823
307,134
1,754,799
Tote] narcumenl assets
88,268,629
14,412,795
8,925,711
109,64135
TOTAL ASSETS
108,080,352
19,74048
12,411,905
148.205,283
LIABILITIES
Cum*
Wamrds payable
4,970,818
437,634
100,871
5,517,174
Accrued labititlas
527,838
8$807
9,216
819,401
Customeraftweeforcmatnrc8an
405 ,164
-
-
405.154
Ouslarawdspoelts
700,021
700,021
Olhercwmdlsb=a
-
51,373
51,373
Currant portion ofbV4*m 9Nr9Was:
Bonds and loam payable
-
935,000
78,539
1.013,639
Accrued employee bene6U
384,518
3!14,518
Total current liabilities
8,988,149
1.41K141
239.950
8,891.248
Noncurrent
Bonds and lam payable
-
9.580.000
174,3117
9,754,387
Accnwd amplayee berafts
2 ,747,004
54,176
51,452
2,832,832
Net OPEB ob9gdm
311,328
131,134
442,483
TOTAL LIAB LITIES
9,743,153
11,400,818
576,923
21,720.722
NET POSITION,
Net lewtment In capital assela
70,194.418
4,433,073
61787,950
81.395,411
RaaWctad for depreciation AM
2,733,147
-
2,733,147
Unrestricted
25.389.614
3,899,327
5.067.032
34.365,973
TOTAL NET POSITION
i 98,317,179
i 8,832,400
6 11,834.982
i 110,484,581
The acumparriing notes are an integral part of these financial statements.
318
I
TOWN OF READING, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
The accompanying notes are an integral part of time financial statements.
319
Business Type Activities
Enterprise Funds
Electric
Division
Water
Non Maya
Fund
Fund
Funds
Total
Opeaflng Revenues:
Charges to services
$ 82,294,531
S 5,998,510
$ 7,076,993
S 95,370,034
Total Operating Revenues
82,294,531
5,998,510
7,076,993
95,370,034
Operating Expenses:
Personnel expenses
-
910,242
534,770
1,445,012
Non-personnel expenses
-
388,689
228,340
617,029
Intergovernmental
11375,900
1,811,212
4,326,182
7,513,294
Depreciation
3,665,630
864,565
426,918
4,957,113
Energy purchases
61,423,332
27,557
26,238
61,477,127
Operating
10,325,086
-
-
10,325,086
Maintenance
2,255,706
-
2,255,706
Total Operating Expenses
79,045,634
4,002,265
5,542,448
88,59,347
Operating income
3,248,897
1,996,245
1,534,545
6,779,887
Nonoperaflng Revenues (Expense*
Mer9awr mental revenue
53,074
-
53,074
Imestment Income
24,435
4,391
21-
4,383
33,219
Interest expense
-
M056)
-
(353,E
Loss on disposal of capital assets
085,199)
-
-
(385,199)
Other
1,076,374
-
1,076,374
Total Nonoperaling Revenues (Expenses)
768,684
9,264
4,393
423,813
Income Before Transfers and ContrbAk ns
4,017,581
1,646,981
1,538,938
7,203,500
Capital contributions
30,965
-
30,965
Transfers out
(2.265,4Z7)
21,9191
84,198)
914,541
Charge In Net Position
1,783,119
1,282,065
1,274,740
4,319,924
Net Position at Beginning of Year
98,534,060
7,070,335
10,580,242
114,164,637
Net Position at End of Year
$ 98;317,179
i 8,332,400
$ 11,834,962
$ 118,484,561
The accompanying notes are an integral part of time financial statements.
319
TOWN OF READING, MASSACHUSETTS
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2013
Recondlialton of Ooeatina Income to Net Cash
ProAded t31 Mad Fort —Operating Activities:
Operating Income
Mudmerts to moonotle operating kwmw (loss) to rot
cash pea ided by (uteri for) oPaa8n9 acOON:
Deprectom
Charges in assets and Oabtities:
User bet raeehatules
krrertay and PraPayme is
Otherassets
Wanants payable
Aeausd Ilab91tlas
Other ttab8ties
Due to retirement trust
Net OPEB dtigatlon
Not Cash Provided By Operaft Activities
$ 3,248,697 4 1,994245 S 1.634,545 $ 4779.687
3,665,630 864.565
(285.6651
W4330)
Business -Type AdMtbs
4632
.
BOB
Enterprise Funds
149,638
215,286
Ebcbto
68.753
46.515
(1.0w.000)
-
DMslon
Water
Nan Major
Fund
Fud
Funds
TOW
Cash Flows From Oaeralina Activities
Receipts tom customers and users S
80,619,625
S 5,742,180
$ 6,689,161
i 93.050.966
Psymerts to verrdas and employees
(77,467.006)
(1,254.011)
(=792)
(19,521,809)
Customer refund, Purchase power, and had charge e4ustments
1.478,004
-
1,474004
Payments to othergoverrmerts
1,811,212)
(4,326,182)
(6,137,394)
Net Cash Provided BY Operating AdMiles
4,830,623
2,678,957
1,562,187
8,889,767
Cash Flows From Noncaaltal Flnandrm Adividee
MMWEC refnd
445,278
445,278
ktergow nmer" reyetsua
53,074
-
-
b3,074
Other
631,096
-
631,096
Trml6rout
(Z285,427)
41916
.196)
(2.914.641)
Net Cash Nted For) Noncapital Financing Add
(1,135,979)
(364.916)
(284,198)
(1,785.093)
Cash Flows From Caottal end Related Flnandna Activities
Aaqul Mm of c4pkal assets
(4574,329)
(1,184,682)
(522,700)
(7,281,891)
.Cootal prarte and conU bAlons
72.680
-
7$1380
Princ.1 el payments on bards and notes
(935.000)
(87.408)
(1,022,4057
Interest eorpeue
(3a?_855�
_
Net Cash (Used Far) Capital and Related Flw xI g AdWas;
Awl-am)
8473,317)
(810.106)
(4565-09
Cash Flows From k odna Aetivltlaac
(Increase) deasase In restrided cash and tneetmerts
1,178,481
1,176,461
Investment Income
24,435
4,391
4,393
33,219
Net Cash Provided By huts g AdWas
1,200,916
4,391
4,393
1,209,700
Not Charge In Cash and Shat Tenn kaaatmerts
(806,109)
(176,885)
892,276
(280 -716)
Unrestricted Cash and Shat Term Irwatrtnxts, Begimkg ofYasr
9,957,960
3.8981855
2,775.578
14432,393
Unrestricted Cash and Start Term hastmerft End of Year £
9,151,651
$ 3.521.070
S 3�4167.854
S 16`11,876
Recondlialton of Ooeatina Income to Net Cash
ProAded t31 Mad Fort —Operating Activities:
Operating Income
Mudmerts to moonotle operating kwmw (loss) to rot
cash pea ided by (uteri for) oPaa8n9 acOON:
Deprectom
Charges in assets and Oabtities:
User bet raeehatules
krrertay and PraPayme is
Otherassets
Wanants payable
Aeausd Ilab91tlas
Other ttab8ties
Due to retirement trust
Net OPEB dtigatlon
Not Cash Provided By Operaft Activities
$ 3,248,697 4 1,994245 S 1.634,545 $ 4779.687
3,665,630 864.565
(285.6651
W4330)
8.208)
4632
.
BOB
35.009
149,638
215,286
(104,043)
68.753
46.515
(1.0w.000)
-
1 ,3335.089)
(7,5 S)
3 4,630,623 S 2,676,957
The accompanying notes are an Integral part of these financial stalemeits.
320
42B,918 4,957,113
(387.832)
(909.817)
2.326
33.852
ass
59,325
243.972
(51.549)
59,694
(2$238)
46.515
-
(1.000.000)
690
(1_341
$ 1,552,187 $ 4869,767
TOWN OF READING, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF FIDUMW NET POSITION
JUNE 30, 2013
UABIUTIES AND NET POSITION
Warrants payable - - - - 15,289
Other liab0itles 158,787 305,791
Told UebllWas 156,787 32Z090
NET POSITION
Total net position held In test for pension bene tt
andotherpurposes i 100,175,693 $ 6,197,082 $ 1,384,921 i 1,495,511 $ -
The 80compenyirrp notes are an krtepral part of these tlnapncial statemarts.
321
Municipal
Ught
Municipal
Pension
Ugtt.
Pension
Trust
OPES
OPEB
Aperncy
Trust Fund
Funds
Tntst Fund
ThW Fund
Funds
ASSETS
Cash and OW term Inkastmerts
i 139,355
$ 5,197,092
$ 1,364,921
S 1,495,511
$ 314,676
tnestrnerds
100,101,354
-
-
_
Accosts receivable
93,671
-
-
-
Ottler
-
-
-
-
7,412
Told Asset
100,334,380
5,197,092
1,354,921
1,495,511
322,090
UABIUTIES AND NET POSITION
Warrants payable - - - - 15,289
Other liab0itles 158,787 305,791
Told UebllWas 156,787 32Z090
NET POSITION
Total net position held In test for pension bene tt
andotherpurposes i 100,175,693 $ 6,197,082 $ 1,384,921 i 1,495,511 $ -
The 80compenyirrp notes are an krtepral part of these tlnapncial statemarts.
321
TOWN OF READING, MASSACHUSETTS
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
The accompanying motes are an Integral part of these 8nanclal statements.
322
Municipal
Municipal
Light
Light
Pension
Pension
OPES
OPEB
Trust Fund
Trust Funds
Trust Fund
Trust Fund
Additions:
Contributions:
Employes
$ 4,54434
$ 1,000,000
i 862,901
$ 1,483,007
ttegoyemmertal
349,478
Plan members
2,162,382
Total contrbdk ms
7,055,294
1,000,000
862,901
1,483,007
Irmstmert Income:
Increase In fair value of investments
11,708,524
8,391
1.986
12,504
Less: managernent fees
(5M,863)
-
-
Not I estment income
11,172,661
8,391
1.988
12,5W
Total add lions
18,227,955
1,008,391
864,887
1,495,511
Deductions:
Bene9t payments to plan members, berre8cleries,
and other systems
8,267,909
-
-
-
Relnds and transfers to other systems
107,425
-
Admbdstrative expenses
81,521
-
-
DOW
-
1,288,076
Total deductions
8,476,855
1,288,076
-
Net increase (decrease)
9.751,100
(27 IMI
864,887.
1,495,511
Net position:
Beginning of yew
90,424,493
5,476,777
500,034
-
End of year
$ 100,175,593
$ 4197,092
S 1,364,921
$ 1,495,511
The accompanying motes are an Integral part of these 8nanclal statements.
322
TOWN OF READING, MASSACHUSETTS
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The accounting policies of the Town of Reading, Massachusetts (the Town)
conform to generally accepted accounting principles (GAAP) as applicable to
governmental units. The following is a summary of the more significant
policies:
A. Reporting Entity
The Town is a municipal corporation governed by an elected Board of
Selectmen. As required by generally accepted accounting principles,
these financial statements present the government and applicable com-
ponent units for which the government is considered to be financially
accountable. In fiscal year 2013, it was determined that no entities met the
required GASB 39 criteria of component units. The Reading Contributory
Retirement System was established to provide retirement benefits primar-
ily to employees and their beneficiaries. The System is presented using
the accrual basis of accountirig and is reported as a pension trust fund in
the fiduciary fund financial statements. Additional financial information of
the System can be obtained by contacting the System located at 16 Lowell
Street, Reading, Massachusetts 01867.
B. Government -wide and Fund Financial Statements
Government -wide Financial Statements
The government -pride financial statements (i.e., the Statement of Net
Position and the Statement of Activities) report information on all of the
nonfiduciary activities of the primary government. For the most part, the
effect of interfund activity has been removed from these statements.
Govemmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type
activities, which rely to a significant extent on fees and charges for
support.
The Statement of Activities demonstrates the degree to which the direct
expenses of a given function or segment is offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific func-
tion or segment. Program revenues include (1) charges to customers
or applicants who purchase, use, or directly benefit from goods, services,
or privileges provided by a given function or segment and (2) grants and
contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items
323
not properly included among program revenues are reported instead as
general revenues.
Fund Financial Statements •
Separate financial statements are provided for governmental funds,
proprietary funds, and fiduciary funds, even though the latter are excluded
from the government -wide financial statements. Major individual govern -
mentat funds and major individual enterprise funds are reported as sepa-
rate columns in the fund financial statements.
C. Measurement Focus Basis of Accounting, and Financial Statement
Presentation,
Govemment -wide Financial Statements
The government -wide financial statements are reported using the eco-
nomic resources measurement focus and the accrual basis of accounting,
as is the proprietary fund and fiduciary fund financial statements. Reve-
nues are recorded when earned and expenses are recorded when a
liabilityis incurred, regardless of the timing of related cash flows. Property
taxes are recognized as revenues in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligi-
bility requirements imposed by the provider have been met. As a general
rule, the effect of interfund activity has been eliminated from the govern-
ment -wide financial statements.
Amounts reported as program revenues include (1) charges to customers
or applicants for goods, services, or privileges provided, (2) operating
grants and contributions, and (3) capital grants and contributions, Includ-
ing special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general
revenues include all taxes and excises.
Fund Financial Statements
Governmental fund financial statements are reported using the current
financial resources measurement focus and the modified accrual basis of
accounting. Revenues are recognized as soon as they are both measur-
able and available. Revenues are considered to be available when they
are collectible within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the Town considers
property tax revenues to be available if they are collected within 60 days
of the end of the current fiscal period. All other revenue items are consid-
ered to be measurable and available only when cash is received by the
government. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expendi-
tures, as well as expenditures related to compensated absences and
claims and judgments, are recorded only when payment is due.
The government reports the following major governmental funds:
324
• The general fund is the government's primary operating fund.
It accounts for all financial resources of the general government,
except those required to be accounted for in, another fund.
Proprietary funds distinguish operating revenues and expenses from non -
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise fund are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported
as nonoperating revenues and expenses.
The Town reports the following major proprietary funds:
• Electric Enterprise Fund
• Water Enterprise Fund
The Town reports the following fiduciary funds:
• The pension trust fund accounts for the activities of the Employees
Contributory Retirement System, which accumulates resources for
pension benefit payments to qualified employees.
• The municipal light pension trust fund accounts for the activities of
the Municipal Light Employees Contributory Retirement System,
which accumulates resources for pension benefit payments to
qualified employees.
• The OPEB trust fund accounts for reserves set aside by the Town to
fund future OPEB costs.
• The municipal light OPEB trust fund accounts for reserves set aside
by the Municipal Light Department to fund future OPEB costs.
• The agency fund is custodial in nature and is used to account for
funds held for others.
D. Cash and Short -Term Investments
Cash balances from all funds, except those required to be segregated by
law, are combined to form a consolidation of cash. Cash balances are
invested to the extent available, and interest earnings are recognized in
the General Fund. Certain special revenue, proprietary, and fiduciary
funds segregate cash, and investment earnings become a part of those
funds.
Deposits with financial institutions consist primarily of demand deposits,
certificates of deposits, and savings accounts. A cash and investment pool
325
is maintained that is available for use by all funds. Each fund's portion of
this pool is reflected on the combined financial statements under the cap-
tion "cash and short-term investments ". The interest earnings attributable
to each fund type are included under investment income.
For purpose of the statement of cash flows, the proprietary funds consider
investments with original maturities of three months or less to be short -
term investments.
E. -Investments
State and local statutes place certain limitations on the nature of deposits
and investments available. Deposits in any financial institution may not
exceed certain levels within the financial institution. Non - fiduciary fund
investments can be made in securities issued by or unconditionally guar-
anteed by the U.S. Government or agencies that have a maturity of one
year or less from the date of purchase and repurchase agreements guar-
anteed by such securities with maturity dates of no more than 96 days
from the date of purchase.
Investments for the Contributory Retirement System and Trust Funds
consist of marketable securities, bonds and short-term money market
investments. Investments are carried at market value.
F. Property Tax Limitations
Legislation known as "Proposition 2W limits the amount of revenue that
can be derived from property taxes. The prior fiscal year's tax levy limit is
used as a base and cannot increase by more than 2.5 percent (excluding
new growth), unless an override or debt exemption is voted. The actual
fiscal year 2013 tax levy reflected an excess capacity of $15,269.
G. Inventories
Inventories are valued at cost using the first- in/first -out (FIFO) method.
The costs of governmental fund -type inventories are recorded as expendi-
tures when purchased rather than when consumed. No significant inven-
tory balances were on hand in governmental funds.
H. Capital Assets
Capital assets, which include property, plant, equipment, and infrastruc-
ture assets are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. Capital
assets are defined by the Town as assets with an initial individual cost of
more than $5,000 and an estimated useful life in excess of two years.
Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at
estimated fair market value at the date of donation.
326
The costs of normal maintenance and repairs that do not add to the value
of the asset or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as pro-
jects are constructed. Interest incurred during the construction phase of
capital assets of business -type activities is included as part of the capital-
ized value of the assets constructed.
Capital assets are depreciated using the straight -line method over the
following estimated useful lives:
Assets
Years
Land improvements
20
Buildings and improvements
20-40
Machinery, equipment, and
furnishings
3 -20
Infrastructure
50
1. Compensated Absences
It is the Town's policy to permit employees to accumulate earned but
unused vacation and sick pay benefits. All vested sick and vacation pay is
accrued when Incurred in the government-wide, proprietary, and fiduciary
fund financial statements. A liability for these amounts Is reported in
governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
J. Lono -Term Obliaaiions
In the government -wide financial statements, and proprietary fund types in
the fund financial statements, long -term debt, and other long -term obliga-
tions are reported as liabilities in the applicable governmental activities,
business -type activities, or proprietary fund type Statement of Net
Position.
K. Fund Eauff
Fund equity at the governmental fund financial reporting level is classified
as "fund balance ". Fund equity for all other reporting is classified as "net
position".
Fund Balance - Generally, fund balance represents the difference
between the current assets and current liabilities. The Town reserves
those portions of fund balance that are legally segregated for a specific
future use or which do not represent available, spendable resources
and therefore, are not available for appropriation or expenditure.
327
Unassigned fund balance indicates that portion of fund balance that is
available for appropriation in future periods.
The Town's fund balance classification policies and procedures are as
follows:
1) Nonsnendable funds are either unspendable in the current form
(i.e., inventory or prepaid items) or can never be spent (i.e.,
perpetual care).
2) Restricted funds are used solely for the purpose in which the fund
was established. In the case of special revenue funds, these funds
are created by statute-or otherwise have external constraints on
how the funds can be expended.
3) Committed funds are reported and expended as a result of motions
passed by the highest decision making authority in the government
(i.e., the Town Meeting).
4) Assigned funds are used for specific purposes as established by
management. These funds, which include encumbrances, have
been assigned for specific goods and services ordered but not yet
paid for. This account also includes fund balance (free cash) voted
to be used in the subsequent fiscal year.
5) Unassigned funds are available to be spent in future periods.
When an expenditure is incurred that would qualify for payment from multi-
ple fund balance types, the Town uses the following order to liquidate lia-
bilities: restricted, committed, assigned and unassigned.
Net Position - Net position represents the difference between assets/
deferred outflows and liabilities/deferred inflows. Net investment in capital
assets consist of capital assets, net of accumulated depreciation, reduced
by the outstanding balances of any borrowing used for the acquisition,
construction or improvement of those assets. Net position is reported as
restricted when there are limitations imposed on their use either through
the enabling legislation adopted by the Town or through external
restrictions Imposed by creditors, grantors, or laws or regulations of other
governments. The remaining net position is reported as unrestricted.
L. Use of Estimates
The preparation of basic financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosures for contingent assets and liabilities at the date of the basic
financial statements, and the reported amounts of the revenues and
328
expenditures /expenses during the fiscal year. Actual results could vary
from estimates that were used.
2. Stewardship. Compliance, and Accountability
A. Budgetary Information
At the annual town meeting, the Finance Committee presents an operating
and capital budget for the proposed expenditures of the fiscal year com-
mencing the following July 1. The budget, as enacted by town meeting,
establishes the legal level of control and specifies that certain appropria-
tions are to be funded by particular revenues. The original budget is
amended during the fiscal year at special town meetings as required by
changing, conditions. In cases of extraordinary or unforeseen expenses,
the Finance Committee is empowered to transfer funds from the Reserve
Fund (a contingency appropriation) to a departmental appropriation.
"Extraordinary" includes expenses which are not in the usual line, or are
great or exceptional. "Unforeseen" includes expenses which are not fore-
seen as of the time of the annual meeting when appropriations are voted.
Departments are limited to the line Items as voted. Certain items may
exceed the line item budget as approved if it is for an emergency and for
the safety of the general public. These items are limited by the Massa-
chusetts General Laws and must be raised in the next year's tax rate.
Formal budgetary integration is employed as a management control
device during the year for the General Fund and Proprietary Funds;
Effective budgetary control is achieved for all other funds through provi-
sions of the Massachusetts General Laws.
At year -end, appropriation balances lapse, except for certain unexpended
capital items and encumbrances which will be honored during the subse-
quent year.
B. Budgetary Basis
The General Fund final appropriation appearing on the 'Budget and
Actual" page of the fund financial statements represents the final amended
budget after all reserve fund transfers and supplemental appropriations.
C. Bu get/GAAP Reconciliation
The budgetary data for the General Fund is based upon accounting
principles that differ from generally accepted accounting principles
(GAAP.). Therefore, in addition to the GAAP basis financial statements, the
results of operations of the general fund are presented in accordance with
329
3.
budgetary accounting principles to provide a meaningful comparison to
budgetary data.
The following is a summary of adjustments made to the actual revenues
and other sources, and expenditures and other uses, to conform to the
budgetary basis of accounting.
D. Deficit Fund Eauity
The Town reported various special revenue funds reflecting individual
deficit account balances as of June 30, 2013. The deficits in these funds
will be eliminated through future intergovern mental revenues and transfers
from other funds.
Cash and Short -Term Investments
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the
event of a bank failure, the Town's and Contributory Retirement System's (the
System) deposits may not be returned. Massachusetts General Law Chapter
44, Section 55, limits the Town's deposits "in a bank or trust company or
banking company to an amount not exceeding sixty percent of the capital and
330
Revenues
Expenditures
and Other
and Other
General Fund
Financing Sources
Financing Uses
Revenues/Expenditures
(GAAP Basis)
$ 81,682,133
$ 85,015,094
Other financing sources/uses
(GAAP Basis)
3,410,575
30,000
Subtotal (GAAP Basis)
85,092,708
85,045,094
To adjust property tax revenue
to the budgetary basis
54,656
-
Reverse beginning of year
appropriation carryforwards
from expenditures
-
(1,360,814)
Add end -of-year appropriation
carryforwards to expenditures
-
1,047,300
To reverse the effects of non-
budgeted State contributions
for teacher retirements
(7,693,299)
(7,693,299)
To record stabilization activity
458,231
424,000
Other
142,615
142,615
Budgetary Basis
$ 78,054,911
$ 77,604,896
D. Deficit Fund Eauity
The Town reported various special revenue funds reflecting individual
deficit account balances as of June 30, 2013. The deficits in these funds
will be eliminated through future intergovern mental revenues and transfers
from other funds.
Cash and Short -Term Investments
Custodial Credit Risk - Deposits. Custodial credit risk is the risk that in the
event of a bank failure, the Town's and Contributory Retirement System's (the
System) deposits may not be returned. Massachusetts General Law Chapter
44, Section 55, limits the Town's deposits "in a bank or trust company or
banking company to an amount not exceeding sixty percent of the capital and
330
surplus of such bank or trust company or banking company, unless satisfac-
tory security is given to it by such bank or trust company or banking company
for such excess. Massachusetts General Law Chapter 32, Section 23, limits
the System's deposits "in a bank or trust company to an amount not exceed-
ing tan percent of the capital and surplus of such bank or trust company. The
Town and System do not have a deposit policy for custodial credit risk.
As of June 30, 2013, $58,828,194 of the Town's and $139,255 of the
System's bank balances of $70,912,439 and $350,269, respectively, were
exposed to custodial credit risk. However, $58,373,100 of the Town's
exposed balance and the entire System's exposed balance was on deposit
with the Massachusetts Municipal Depository Trust (MMDT).
4. Investments
A. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not
fulfill its obligation to the holder of the investment. For short -term invest-
ments that were purchased using surplus revenues, Massachusetts
General Law, Chapter 44, Section 55, limits the Town's investments to
the top rating issued by at least one nationally recognized statistical rating
organization (NRSROs).
The Town and System do not have a policy for credit risk.
Presented below (in thousands) is the actual rating as of year -end for
each investment of the Town:
Exempt Rating as of Year-end
Fair From
Investment Tym value Disclosure Aaa Aa2 Aa3 Al A2 A3 Baal Baal
Corporate bends - $ 3,365 $ - $ - $ 189 $ 466 $ 353 $ 513 $ 1,245 $ 376 $ 223
certificates of deposits 2,126 2,126 - - - - - - -
Corporate equities 1,959 1,959 - - - - - - - -
Federal agency securities 1,373 1,373 - - - - - -
Total Investments $ 8` $. 4,085� $ 1,373 slog $ 466 $_ = $ 513 $ 1` 245. $ 376 $ M
Massachusetts General Law, Chapter 32, Section 23, limits the investment
of System funds, to the extent not required for current disbursements, in the
PRIT Fund or in securities, other than mortgages or collateral loans, which
are legal for the investment of funds in savings banks under the laws of the
Commonwealth, provided that no more than the established percentage of
assets, is invested in any one security.
331
At June 30, 2013, the Contributory Retirement System maintained its invest-
ments in the State Investment Pool* with a fair value of $100,101,354. This
investment type is not rated.
'Fair value is the same as the value of the pool share. The Pension Reserves Investment Trust was
created under Massachusetts General Law, Chapter 32, Section 22, in December 1983. The
Pension Reserves Investment Trust is operated under contract with a private investment advisor,
approved by the Pension Reserves Investment Management Board. The Pension Reserves
Investment Management Board shall choose an investment advisor by requesting proposals from
advisors and reviewing such proposals based on criteria adopted under Massachusetts General
Law, Chapter 308.
B. Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the
failure of the counterparty (e.g. broker - dealer) to a transaction, a govern-
ment will not be able to recover the value of its investment or, collateral
securities that are in the possession of another party. The Town and
System do not have policies for custodial credit risk.
The System's investments of $100,101,354 were exposed to custodial
credit risk as uninsured and uncollateralized. However, the investments
were held in the State Investment Pool (PRIT).
Of the Town's Investment of $8,822,896, the government has a custodial
credit risk exposure of $8,822,896 because the related securities are
uninsured, unregistered and held by the Town's brokerage firm, which is
also the Counterparty to these securities. The Town manages this custo-
dial credit risk with SIPC and excess SIPC. .
C. Concentration of Credit Risk
The Town places no limit on the amount the Town may invest in any one
issuer. Investments in any one issuer (other than U.S. Treasury securities
and mutual funds) that represent 5% or more of total investments are as
follows (in thousands):
Investment Issuer Amount
SPDR S &P 500 ETF $ 1,403
People's United Bank certificate of deposit 1,000
Federal Home Loan Mortgage Notes 501
Federal Home Loan Bank Coupon Bonds 475
Total $ 3,379
Massachusetts General Law Chapter 32, Section 23 limits the amount the
System may invest in any one issuer or security type, with the exception of
the PRIT Fund.
332
The System does not have an investment in one issuer greater than 5% of
total investments, with the exception of the PRIT Fund.
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will ad-
versely affect the fair value of an investment. Generally, the longer the
maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. The Town and System do not have
a formal investment policy that limits investment maturities as a means
of managing its exposure to fair value losses arising from increasing
interest rates.
Information about the sensitivity of the fair values of the Town's invest-
ments to market interest rate fluctuations is as follows (in thousands):
Investment Type
Debt-related Securities:
Corporate bonds
Federal agency securities.
Total
E. Foreign Curvency Risk
Investment Maturities (in Years)
Fair Less
Value Than 1 1 -5 640
$ 3,365 $ - $ 58 $ 3,307
1,373 - 1,373
$ 4,738 $ - $ 58 $ 4,6$0
Foreign currency risk is the risk that changes in foreign exchange rates
will adversely affect the fair value of an investment. The Town and System
do not have policies for foreign currency risk.
5. Taxes Receivable
Real estate and personal property taxes are levied and based on values
assessed on January 1 st of every year. Assessed.values are established by
the Board of Assessor's for 100% of the estimated fair market value. Taxes
are due on a quarterly basis and are subject to penalties and interest if they
are not paid by the respective due date. Real estate and personal property
taxes levied are recorded as receivables in the fiscal year they relate to.
Fourteen days after the due date for the final tax bill for real estate taxes, a
demand notice may be sent to the delinquent taxpayer. Fourteen days after
the demand notice has been sent the tax collector may proceed to file a Tien
against the delinquent taxpayers' property. The Town has an ultimate right
to foreclose on property for unpaid taxes. Personal property taxes cannot be
secured through the lien process.
333
Taxes receivable at June 30, 2013 consist of the following (in thousands):
Real Estate
2013 $ 291
2012 5
296
Personal Property
2013
3
2012
2
2011
2
2010
5
2009
2
Prior
9
23
Tax Liens
622
Deferred Taxes
86
Total
6. Allowance for Doubtful Accounts
The receivables reported in the accompanying entity -wide financial state-
ments reflect the following estimated allowances for doubtful accounts (in
thousands):
Governmental
Property taxes $ 118
Excises 88-
7. Interciovernmental Receivables
This balance represents reimbursements requested from Federal and State
agencies for expenditures incurred in fiscal 2013.
334
8.
9.
Transfers In /Out
The Town reports interfund transfers between many of its funds. The sum of
all transfers presented in the table agrees with the sum of interfund transfers
presented in the governmental fund financial statements. The following is an
analysis of interfund transfers made in fiscal year 2013.
Fund : Transfers In
General Fund $ 3,410,575
Nonmajor Governmental Funds:
Revolving funds -
Receipts reserved for appropriation
Gifts and donations -
School capital project funds 30,000
Major Enterprise Funds:
Electric Division fund
Water fund
Nonmajor Enterprise Funds:
Sewer fund -
Total $ 3,440,575
Transfers Out
$ 30,000
95,486
324,335
75,000
1,213
2,265,427
384,916
264,198
$ 3,440,575
The transfers from the water and sewer funds to the general fund are made to
cover indirect costs of water and sewer funds incurred in the general fund.
The transfer from the electric division fund to the general fund is a payment in
lieu of taxes (PILOT). The Town's routine transfers include transfers made to
move (1) unrestricted revenues or balances that have been collected or
accumulated in the general fund to other funds based on budgetary
authorization, and (2) revenues from a fund that by statute or budgetary
authority must collect them to funds that are required by statute or budgetary
authority to expend them.
Caaital Assets
Capital asset activity for the year ended June 30, 2013 was as follows (in
thousands):
335
Governmental Activities:
Capital assets, being depreciafed:
Land improvements
Buildings and improvements
Machinery, equipment, and furnishings
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for. ,
Land improvements
Buildings and Improvements
Machinery, equipment, and furnishings
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Capital assets, not being depreciated:
Land
Construction In progress
Total capital assets, not being depreciated
Governmental activities capital assets, net
Business -Type Activities:
Capital assets, being depreciated:
Land Improvements
Buildings and improvements
Machinery, equipment, and furnishings
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for
Land improvements
Buildings and improvements
Machinery, equipment,.and furnishings
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Business -type activities capital assets, net
336
Beginning Ending
Balance Increases Decreases Balance
$ 3,652 $ 20 $ - $ 3,672
133,498 239 133,737
9,345 869 (505) 9,709
35,281 1,336 (2,079) 34,538
181,776 2,464 (2,584) 181,656
(907) (156) - (1,063)
(31,836) (3,697) - (35,533)
(4,216) (932) 505 (4,643)
(20,759) (1,340) 2,079 (20,020)
(57,718 ) 125) 2,584 (61,259)
124,058 (3,661) - 120,397
3,981 - - 3,981
631 67 (547) 151
4,612 67 (547) 4,132
$ 128,670 $ (3,594) $ (547) $ 124,529
Beginning Ending
Balance Increases Decreases Balance
$ 1,437 $
-
$ -
$ 1,437
16,674
332
(305)
16,701
33,861
1,457
(415)
34,903
104,424
5,502
(1,286)
108,640
156,396
7,291
(2,006)
161,681
(188)
(70)
-
(258)
(9,625)
(494)
305
(9,814)
(19,543)
(1,197)
415
(20,325)
(39,210)
(3,196)
900
(41,506)
(68,566)
(4,957)
1,620
1,903)
87,830
2,334
(386)
89,778
1,450
-
-
1,450
314
305.
(314)
305
1,764
305
(314)
1,755
$ 89,594 $
2,639
$ (700)
$ 91,533
Depreciation expense was charged to functions of the Town as follows (in
thousands):
Governmental Activities:
General government
$ 291
Public safety
560
Education
3,411
Public works
1,626
Health and human services
30
Culture and recreation
207
Total depreciation expense - governmental activities $ 6,125
Business -Type Activities:
Electric $ 3,666
Water 865
C3ther- Sewer 396
Other - Stormwater 30
Total depreciation expense - business -type activities $ 4. 57
10. Warrants Payable
Warrants payable represent 2013 expenditures paid by July 15, 2013.
11. Long -Term Debt
A: General Obliaetion Bonds
The Town issues general obligation bonds to provide funds for the acquisi-
tion and construction of major capital facilities. General obligation bonds
have been Issued for both governmental and business -type activities.
General obligation bonds currently outstanding are as follows:
337
Total Governmental Activities: $ 22,920,000
Amount
Serial
Outstanding
Maturities
Interest
as of
Governmental Activities:
Through
Rates %
6/30/13
Memorial High School
03115/24
4.22%
$ 1,670,000
Barrow Elementary School
04/15/24
3.96%
1,375,000
Wood End Elementary School
04/15/24
3.96%
1,650,000
Wood End Elementary School
04 /15/24
3.92%
110,000
Wood End Elementary School
04/15124
3.94%
330,000
Wood End Elementary School
04 /15/24
3.94%
495,000
Downtown Improvement projects
11/01117
3.45%
325,000
Joshua Eaton refunding
07/01/13
3.05% •
15,000
Parker School refunding
07/01/17
3.05%
925,000
Ladder truck
07/01/17
3.05%
400,000
Fire truck
08101115
4.61%
210,000
Energy Improvements
08/01/25
4.61%
3,995,000
RMHS refinance
02/01/24
2.25%
10,440,000
Coolidge refinance
02/01/15
0.59%
80,000
IGllam Roof
02/01%22
1.83%
603,000
Birch Meadows windows
02/01/22
1.83%
297,000
Total Governmental Activities: $ 22,920,000
Total Business -Type Activities: $ 10,767,926
B. Future Debt Service
The annual payments to retire all general obligation long -term debt
outstanding as of June 30, 2013 are as follows:
338
Amount
Serial
Outstanding
Maturities
Interest
as of
Business -Type Activities:
Through
Rates %
6/30/13
Water treatment plant
06/30/15
3.38%
$ 200,000
MWRA buy -in
04/15/27
4.00%
2,220,000
MNRA buy -in
11/01/27
3.05%
5,850,000
MWRA buy4n
07/01/17
3.05%
400,000
MWRA water system pipeline
08/15/21
0.000/0
1,845,000
MWPAT septic
02/01/17
0.00%
9,298
MWRA sewer
08117/14
0.00%
65,868
M RA sewer
08/15/16
0.00%
177,760
Total Business -Type Activities: $ 10,767,926
B. Future Debt Service
The annual payments to retire all general obligation long -term debt
outstanding as of June 30, 2013 are as follows:
338
Governmental
Principal
Interest
Total
2014
$ 3,010,000
$ 960,500
$ 3,970,500
2015
2,135,000
852,730
2,987,730
2016
2,030,000
778,458
2,808,458
2017
2,045,000
692,960
2,737,960
2018
2,055,000
605,275
2,660,275
2019-2023
9,3759000
1,771,324
11,146,324
2024-2025
2,270,000
102,299
2,372,299
Total $ 22,920,000 $ 5,763,546 $ 28683,
The general fund has been designated as the sole source to repay the
governmental -type general obligation debt outstanding as of June 30,
2013:
Business -Type
Principal
Interest
Total
2014
$ 1,013,539
$ 339,905
$ 1,353,444
2015
1,013,539
312,340
1,325,879
2016
880,605
284,531
1,165,136
2017
880,605
256,785
1,137,390
2018
836,165
228,795
1,064,960
2019-2023
3,573,473
807,875
4,381,348
2024-2028.
2,570,000
257,913
2,827,913
Total
$ 10,767,926
$ 2,4 ®44
$ 13,256,070
C. Can es in General Lon -Tenn Liabilities
During the year ended June 30, 2013, the following changes occurred in
long -term liabilities (in thousands):
Governmental Activities
Bonds payable
Unamortized bond premiums
Total bonds payable
Other.
Accrued employee benefits
Net OPEB obligation
Totals
339
Equals
Total
Total
Less
Long -Term
Balance
Balance
Current
Portion
7/1/12
Additions
Reductions
6130/13
Portion
6/30/13
$ 26,455
$ -
$ (3,535)
$ 22,920
$ (3,010)
$ 19,910
2,406
-
(105)
2,309
(210)
2,091
28,861
-
(3,640)
25,221
(3,220)
22,001
1,763
61
(186)
1,638
(57)
1,581
11,274
4,587
(3,262)
12,599
-
12,599
$ 41,898
$ 4,648
$ (7,088)
$ 39,458
$ (3,277)
$ 36,181
339
Business -Type Activities
Bonds payable
Unamortized bond premiums
Total bonds payable
Other.
Accrued employee benefits
Net OPEB obligation
Totals
D. Bond Authorizations
Long -term debt authorizations which have not been issued or rescinded
as of June 30, 2013 are as follows:
Date Authorized
Purpose
Amount
November 2010
Killam School remodeling
Equals
Total
Birch Meadow School remodeling
110,607
Total
Less
Long Term
Balance
MWRA VI sewer loan
421,000
Balance
Current
Portion
7/1/12
Additions
Reductions
6/30113
Portion
6130113
$ 11,790
$ -
$ (1,022)
$ 10,768
$ (1,014)
$ 9,754
2
-
(2)
-
-
-
11,792
-
(1,024)
10,768
(1,014)
9,754
3,066
267
(115)
3,218
(385)
2,833
1,784
760
(2,102)
442
-
442
$ 16,642
®.mom
$ 1,027
.�
$ (3,241)
®®.
$ 14,428
$ (1,399)
mnmc�
$ 13,029
�.
D. Bond Authorizations
Long -term debt authorizations which have not been issued or rescinded
as of June 30, 2013 are as follows:
Date Authorized
Purpose
Amount
November 2010
Killam School remodeling
$ 329,772
November 2010
Birch Meadow School remodeling
110,607
November 2010
MWRA water system pipeline
235,000
November 2012
MWRA VI sewer loan
421,000
Jarwary 2013
Library renovations
14,900,000
April 2013
MWRA VI sewer ban
460,000
April 2013
MWRA water ban
6,125,000
Total
$ 22,581,379
E. Advance and Current Refundinas
Prior Year
In prior years, the Town has defeased various bond issues by creating
separate irrevocable trust funds. The proceeds from the new issuance of
the general obligation bonds were used to purchase U.S. government
securities, and those securities were deposited in an irrevocable trust with
an escrow agent to provide debt service payments until the refunded
bonds mature on March 15, 2024. For financial reporting purposes, the
debt has been considered defeased and therefore removed as a liability
from the Town's balance sheet. As of June 30, 2013, the amount of
defeased debt outstanding but removed from the governmental activities
was $21,762,775.
340
12. Deferred Inflows of Resources
The Town has implemented GASB 65, Items Previously Reported as Assets
and Liabilities. Deferred inflows of resources are the acquisition of net assets
by the Town that are applicable to future reporting periods. Deferred inflows
of resources have a negative effect on net position, similar to liabilities.
Governmental funds report unavailable revenues in connection with
receivables that are not considered to be available to liquidate liabilities of the
current period.
The balance of the General Fund unavailable revenues account is equal to
the total of all June 30, 2013 receivable balances, except real and personal
property taxes that are accrued for subsequent 60-day collections.
13. Restricted Net Position
The accompanying entity wide financial statements report restricted net
position when external constraints from grantors or contributors are placed
on net position.
Permanent fund restricted, net position are segregated between nonexpend-
able and -expendable. The nonexpendable portion represents the original
restricted principal contribution, and the expendable represents accumulated
earnings which are available to be spent based on donor restricUbns.
14. Governmental Funds—. Balances
Fund balances are segregated to account for resources that are either not
available for expenditure in the future or are legally set aside for a specific
future use.
The Town implemented GASB Statement No. 54 (GASB 54), Fund Balance
Reporting and Governmental Fund Type Definitions, which enhances,the use-
fulness of fund balance information by providing cleareF fund balance classifi-
cations that can be more consistently applied and by clarifying existing gov-
ernmental fund type definitions.
The following types of fund balances are reported at June 30, 2013:
Nonspendable - Represents amounts that cannot be spent because they are
either (a) not in spendable form or (b) legally or contractually required to be
maintained intact. This fund balance classification includes general fund
reserves for prepaid expenditures and nonmajor governmental fund reserves
for the principal portion of permanent trust funds.
341
Restricted - Represents amounts that are restricted to specific purposes by
constraints imposed by creditors, grantors, contributors, or laws or regulations
of other governments, or constraints imposed by law through constitutional'
provisions or enabling legislation. This fund balance classification includes
general fund encumbrances funded by bond issuances, various special reve-
nue funds, and the income portion of permanent trust funds.
Committed - Represents amounts that can only be used for specific pur-
poses pursuant to constraints imposed by formal action of the Town's highest
level of decision - making authority. This fund balance classification includes
general fund encumbrances for non - lapsing, special article appropriations
approved at Town Meeting, and various special revenue funds.
Assigned - Represents amounts that are constrained by the Town's intent to
use these resources for a specific purpose. This fund balance classification
includes general fund encumbrances that have been established by various
Town departments for the expenditure of current year budgetary financial
resources upon vendor performance in the subsequent budgetary period. The
Town follows an informal policy that permits management to assign fund
balance amounts to a specific purpose, although fund balance to be applied
against a subsequent year's budget is voted by Town Meeting.
Unassigned_ - Represents amounts that are available to be spent in future
periods.
Following is a breakdown of the Town's fund balances at June 30, 2013:
342
343
Nonmajor
Total
General
Governmental
Governmental
Fund
Funds
Funds
Nonspendable
Nonexpendable permanent funds $
-
$ 2,967,075
$ 2,967,075
Total Nonexpendable
-
2,967,075
2,967,075
'Restricted
For high school debt service
817,305
-
$17,305
Federal grants
-
4,539
4,539
State grants
-
1,441,397
1,441,397.
Revolving funds:
Extended day program
-
548,890
548,890
RISE preschool program
-
452,052
452,052
Ail -day kindergarten program
-
613,094
613,094
Special Education tuition
-
665,434
665,434
Inspection permit
-
683,970
683,970
School lunch
- .
310,204
310,204
Other
-
686,401
686,401
Receipts reserved for appropriation
Sale of real estate
-
778,161
778,161
Affordable housing bid
-
259,895
259,895
Sale of cemetery lots
-
173,069
173,069
Other
-
14,775
14,775
Gifts and donations
-
530,067
530,067
Expendable permanent funds
Healthcare.
-
4,120,772
4,120,772
Cemetery
-
1,469,926
1,469,926
Other
-
527,800
527,800
Town capital project. funds
-
1,083,514
1,083,514
School capital project funds
-
144,513
144,513
Total Restricted
817,305
14,508,473
15,325,778
Committed
Smarth growth stabilization fund
310,000
-
3!0,000
Sick buy-back stabilization fund
55,413
-
55,413
Total Committed
365,413
-
365,413
Assigned
For encumbrances
1,086,291
-
1,086,291
For next year's expenditures
1,400,000
-
1,400,000
Total Assigned
2,486,291
-
2,486,291
Unassigned
10,507,772 W
(115,005)
10,392,767
Total Unassigned
10,507,772
(115,005)
10,392,767
Total Fund Balance $
14,176,781
$ 17,360,543
$ 31,537,324
°l Now kxWes the Town's general stabilization account
343
15. Commitments and Contingencies
Outstanding Legal Issues - There are several pending legal issues in which
the Town is involved. The Town's management is of the opinion that the
potential future settlement of such claims would not materially affect its finan-
cial statements taken as a whole.
Abatements - There are several cases pending before the Appellate Tax
Board in regard to alleged discrepancies in property assessments. According
to Town counsel, the probable outcome of these cases at the present time is
indeterminable, although the Town expects such amounts, if any, to be
Immaterial.
Grants - Amounts received or receivable from grantor agencies are subject to
audit and adjustment by grantor agencies, principally the federal government.
Any disallowed claims, inbluding amounts already collected, may constitute
a liability of the applicable funds. The amount of expenditures which may be
disallowed by the grantor cannot be determined at this time, although the
Town expects such amounts, if any, to be immaterial.
16. Post - Employment Healthcare and We Insurance Benefits
Other Post - Employment Benefits
GASB Statement 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions, requires governments to
account for other post - employment benefits (OPEB), primarily healthcare, on
an accrual basis rather than on a pay- as- you-go basis. The effect is the
recognition of an actuarially required contribution as an expense on the
Statement of Activities when a future retiree earns their -post-employment
benefits, rather than when they use their post - employment benefit. To the
extent that an entity does not fund their actuarially required contribution, a post -
employment benefit liability Is recognized on the Statement of Net Position over
time.
A. Plan Desolation
In addition to providing the pension benefits described in Note 17, the
Town provides post - employment health and life insurance benefits for
retired employees through the Town's .Massachusetts Interlocal Insurance
Association (MIIA) Health Benefits Trust. Benefits, benefit levels,
employee contributions, and employer contributions are governed by
Chapter 32 of the Massachusetts General Laws. As of June 30, 2013, the
actuarial valuation date, approximately 683 retirees and- 509 active
employees meet the eligibility requirements. The plan does not issue a
separate financial report.
344
B. Benefits Provided
The Town provides post - employment medical, prescription drug, and life
insurance benefits to all eligible retirees and their surviving spouses. All
active employees who retire from the Town and meet the eligibility criteria
will be eligible to receive these benefits.
C. Fundingg Policy
Retirees contribute 29% of the cost of the medical and prescription drug
.plan, as determined by the MIIA Health Benefits Trust. Retirees also
contribute 50% of the premium for a $5,000 life insurance benefit. The
Town contributes the remainder of the medical, prescription drug, and life
Insurance plan costs on a pay- as- you-go basis.
D. Annual OPEB Costs and Net OPEB Obligation
The Town's fiscal 2013 annual OPEB expense Is calculated based on
the annual required contribution of the employer (ARC), an amount actu-
arially determined in accordance with the parameterd of GASB Statement
No. 45. The ARC represents a level of funding that, if paid on an ongoing
basis, is projected to cover the normal cost per year and amortize the
unfunded actuarial liability over a period of thirty years. The following table
shows the components of the Town's annual OPEB cost for the year
ending June-30, 2013, the amount actually contributed to the plan, and the
chang'e in the Town's net OPEB obligation based on an actuarial valuation
as of June 30, 2013.
Net OPES obligation - beginning of year 11,274,086 316,867 107,573 22,871 1,335,089 13,058,486
NetOPESobligation - endofyear $ 12,599,089 S 311,329 $ 109,436 $ 21,698 $ - $ 13,041,552
The Town's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation were as follows:
345
Governmental
water
Sewer
Stonnwater
Electric
Funds
Fund
Fund
Fund
Fund
Total
Annual Required Contribution (ARC)
$ 4,524,423 $
107,338 $
46,342
$ 4,623 $
604,987 $
5287,713
Intereston not OPES obligation
648 ,260
24,712
8,337
1,773
-
663,08?
Adjustment to ARC
(586,048)
(27,193)
(9,174)
(1,950)
-
(624,365)
Annual OPEB cost
4,586,635
104,857
45,505
4,446
604,987
5,346,430
contributions made
(2,461,632)
(64,731)
(33,975)
(49)
(457,069)
(3,017,456)
Additional funding to trust
(800,000)
(47,664)
(9,667)
(5,570)
(1,483,007)
(2,345,908)
Increase in net OPEB obligation
1,325,003
(7,538)
1,863
(1,173)
(1,335,089)
(16,934)
Net OPES obligation - beginning of year 11,274,086 316,867 107,573 22,871 1,335,089 13,058,486
NetOPESobligation - endofyear $ 12,599,089 S 311,329 $ 109,436 $ 21,698 $ - $ 13,041,552
The Town's annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation were as follows:
345
Annual OPEB
Fiscal year ended Cost
Percentage of
OPEB
Cost Contributed
Net OPEB
Obligation
2013
$
5,346,430
100.32%
$
13,041,552
2012
$
6,956,808
50.08%
$
13,058,486
2011
$
6,733,892
48.16%
$
9,248,292
2010
$
6,522,905
57.09%
$
5,757,459
2009
$
6,326,701
53.24%
$
2,958,316
The Town's net OPEB obligation as of June 30, 2013 is recorded as a
component of the "noncurrent liabilities" line item.
E. Funded Status and Funding Progress
The funded status of the plan as of June 30, 2013, the date of the most
recent actuarial valuation was as follows:
Actuarial accrued liability (AAL)
$ 67,170,840
Actuarial value of plan assets
2,860,432
Unfunded actuarial accrued liability (UAAL)
$ 64,310,408
Funded ratio (actuarial value of plan assets/AAL)
4.26%
Covered payroll (active plan members)
N/A
UAAL as a percentage of covered payroll
N/A
Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts and -assumptions about the probability of events far into
the future. Examples include assumptions about future employment, mor-
-tality, and the healthcare cost trend. Amounts determined regarding the
funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary infor-
mation following the notes to the financial statements, presents multi -year
trend information about whether the actuarial value of plan assets is
Increasing or decreasing over time relative to the actuarial accrued liability
for benefits.
F. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the
plan as understood by the Town and the plan members and include the
types of benefits provided at the time of each valuation and the historical
pattern of sharing of benefit costs between the Town and plan members
to that point. The actuarial methods and assumptions used include tech-
346
niques that are designed to reduce short -term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the
long -term perspective of the calculations.
In the June 30, 2013 actuarial valuation, the Projected Unit Credit actuarial
cost method was used. The actuarial assumptions included a blended
5.75% investment rate of return for governmental funds, a funded 7.75%
investment rate of return for enterprise funds, and an initial annual
healthcare cost trend rate of 8.5% which decreases to a 5.0% long -term
rate for all healthcare benefits after seven years. The amortization costs
for the initial UAAL is a level percentage of payroll amortization, with
governmental fund amortization payments increasing at 2.5% per year
for a period of 30 years (open), and enterprise fund amortization payments
increasing at 2.5 %' per year for a period of 18 years (closed). In open
amortization, the period is reset to the initial value every year and the
UAAL is re- amortized, while under a closed amortization the remaining
period decreases and the UAAL is eventually paid off.
17. Contributory Retirement System
The Town follows the provisions of GASB Statement No. 27, Accounting for
Pensions for State and Local Govemment Employees, (as amended by
GASB 50) with respect to the employees' retirement funds.
A. Plan Description and Contribution Information
Substantially all employees of the Town (except teachers and administra-
tors under contract employed by the School Department) are members of
the Reading Contributory Retirement System (Reading CRS), a cost shar-
ing, multiple employer defined benefit PERS. Eligible employees must
participate In the Reading CRS. The pension plan provides pension
benefits, deferred allowances, and death and disability benefits. Chapter
32 of the Massachusetts General Laws establishes the authority of the
Reading CRS Retirement Board. Chapter 32 also establishes contribution
percentages and benefits paid. The Reading CRS Retirement Board does
not have the authority to amend benefit provisions. As required by
Massachusetts General Laws, the System issues a separate report to the
Commonwealth's Public Employee Retirement Administration Commis-
sion.
Membership of each plan consisted of the following at December 31,
2012:
347
Retirees and beneficiaries receiving benefits 320
Terminated plan members entitled to but not yet
receiving benefits 33
Active plan members 345
Total 698
Number of participating employers 2
Employee contribution percentages are specified in Chapter 32 of the
Massachusetts General Laws. The percentage is determined by the
participant's date of entry into the system. All employees hired after
January 1, 1979 contribute an additional 2% on all gross regular earnings.
over the rate of $30,000 per year. The percentages are as follows:
Before January 1, 1975 5%
January 1, 1975 -December 31, 1983 7%
January 1, 1984 -June, 30, 1996 8%
Beginning July 1, 1996 9%
Employers are required to contribute at actuarially determined rates as
accepted by the Public Employee Retirement Administration Commission
(PERAC).
Schedule of Employer Contributions:
Year Ended.
Annual Required
Percentage
June 30
Contribution
Contributed
2004
$ 3,124,800
100%
2005
$ 3,405,725.
100%
2006
$ 3,488,686
100%
2007
$ : 3,696,695
100%
• 2008
$ 3,785,501
100%
2009
$ 3,600,826
100%
2010
$ , 3,686,795
100%
2011.
$ 4,231,461
100%
2012
$ 4,420,321
100%
2013
$ 4,543,434
100%
B. Summga of Si_anificantAccountinQ Policies
Basis of Accounting - Contributory retirement system financial statements
are prepared using the accrual basis of accounting. Plan member contri-
butions are recognized in the period in which the contributions are due.
Employer contributions are recognized when due and the employer has
made a formal commitment to provide the contributions. Benefits and
348
refunds are recognized when due and payable in accordance with the
terms of the plan.
Method Used to Value Investments - Investments are reported at fair
value in accordance with PERAC requirements.
C. Funded Status and Funding Progress
The Information presented below is from the Reading Contributory
Retirement System's most recent valuation.
The Schedule of Funding Progress following the notes to the financial
statements presents multi -year trend information about the actuarial
value of plan assets relative to the actuarial accrued liability for benefits.
D. Actuarial Methods and Assumptions
The annual required contribution for the current year was determined as part
of the actuarial valuation using the entry age normal actuarial cost method.
Under this method an unfunded actuarial accrued liability of $43.1 million
was calculated. The actuarial assumptions included (a) 7.75% investment
rate of return and (b) a projected salary increase of 4.75% - 8.00% per year.
Liabilities for cost of living increases have been assumed at an annual
increase of 3 %, on the first $12,000 of benefit payments. The actuarial value
of assets is determined by projecting the market value of assets as of the
beginning of the prior plah year with the assumed rate of return during that
year (7.75 %) and accounting for deposits and disbursements with interest at
the assumed rate of return. An adjustment is then applied to recognize the
difference between the actual investment return and expected return over a
five -year period. As of June 30, 2013, the unfunded actuarially accrued
liability is being amortized over 19 years using 4.5% increase in payments
method.
E. Teachers
As required by State statutes, teachers of the Town are covered by the
Massachusetts Teachers Retirement System (MTRS). The MTRS is
349
Actuarial
MAL as
Accrued'
a Percent -
Actuarial
Liability
Unfunded
age of
Actuarial
Value of
(AAL) -
AAL
Funded
Covered
Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
Lal
LbI
(b-a)
(a/b)
121
b-a /c
07/01/11
$91,359
$134,440
$43,081
68.0%
$20,934
205.8%
The Schedule of Funding Progress following the notes to the financial
statements presents multi -year trend information about the actuarial
value of plan assets relative to the actuarial accrued liability for benefits.
D. Actuarial Methods and Assumptions
The annual required contribution for the current year was determined as part
of the actuarial valuation using the entry age normal actuarial cost method.
Under this method an unfunded actuarial accrued liability of $43.1 million
was calculated. The actuarial assumptions included (a) 7.75% investment
rate of return and (b) a projected salary increase of 4.75% - 8.00% per year.
Liabilities for cost of living increases have been assumed at an annual
increase of 3 %, on the first $12,000 of benefit payments. The actuarial value
of assets is determined by projecting the market value of assets as of the
beginning of the prior plah year with the assumed rate of return during that
year (7.75 %) and accounting for deposits and disbursements with interest at
the assumed rate of return. An adjustment is then applied to recognize the
difference between the actual investment return and expected return over a
five -year period. As of June 30, 2013, the unfunded actuarially accrued
liability is being amortized over 19 years using 4.5% increase in payments
method.
E. Teachers
As required by State statutes, teachers of the Town are covered by the
Massachusetts Teachers Retirement System (MTRS). The MTRS is
349
funded by contributions from covered employees and the Commonwealth
of Massachusetts. The Town is not required to contribute.
All persons. employed on at least a half- -time basis, who are covered under
a contractual agreement requiring certification by the Board of Education
are eligible, and must participate in the MTRS.
Based on the Commonwealth of Massachusetts' retirement laws, employ-
ees covered by the pension plan must contribute a percentage of gross
earnings into the pension fund. The percentage is determined by the
participant's date of entry into the system and gross earnings, up to
$30,000, as follows:
Before January 1, 1975 5%
January 1, 1975 -December 31, 1983 , 7%
January 1, 1984 - June 30,1996' 8%
July 1, 1996 -June 30, 2001 9%
Beginning July 1, 2001 11%
*Effective January 1, 1990, all participants hired after January 1, 1979, who
have not elected to Increase to 11 %, contribute an additional 2% of salary in
excess of $30,000.
The Town's current year covered payroll for teachers and administrators was
not available.
In fiscal year 2Q13, the Commonwealth of Massachusetts contributed
$7,693,299 to the MTRS on behalf of the Town. This is included in the
education expenditures and intergovernmental revenues in the general
fund.
18. Risk Management
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 government carries commercial insurance. There were no signifi-
cant reductions in insurance coverage from the previous year and have been
no material settlements in excess of coverage in any of the past three fiscal
years.
350
19. Implementation of New GASB Standards
The GASB has issued Statement 68 Accounting and Financial Reporting for
Pensions, which is required to be implemented in fiscal year 2015.
Management's current assessment is that this pronouncement will have a
significant impact on the Town's basic financial statements by recognizing as
a liability and expense, the Town's actuarially accrued unfunded pension
liability.
351
Town of Reading, Massachusetts Municipal Light Department
Notes to Financial Statements
1. Summary of Significant Accounting Policies
The significant accounting policies of the Town of Reading Municipal Light
Department ("the Department") (an enterprise fund of the Town of Reading)
are as follows:
A. Business Activity - The Department purchases electricity which it dis-
tributes to consumers within the towns of Reading, North Reading,
Wilmington, and Lynnfield.
B. Regulation and Basis of Accounting - Under Massachusetts General
Laws, the Department's electric rates are set by the Municipal Light Board.
Electric rates, excluding the fuel charge, cannot be changed more often
than once every three months. Rate schedules are filed with the Massa-
chusetts Department of Public Utilities (DPU). While the DPU exercises
general supervisory authority over the Department, the Departments rates
are not subject to DPU approval. The Department's policy is to prepare its
financial statements in conformity with generally accepted accounting
principles.
Proprietary funds distinguish operating revenues and expenses from non -
operating items. Operating revenues and expenses generally result from
providing services and producing and delivering goods in connection with
a proprietary fund's principal ongoing operations. The principal operating
revenues of the enterprise fund are charges to customers for sales and
services. Operating expenses for enterprise funds include the cost of
sales and services, administrative expenses and depreciation on capital
assets. All revenues and expenses not meeting this definition are reported
as nonoperating revenues and expenses.
C. Concentrations - The Department operates within the electric utility indus-
try which has undergone significant restructuring and deregulation. Legis-
lation was enacted by the Commonwealth of Massachusetts in 1998 which
changed the electric industry. The law introduced competition and pro-
vided consumers with choices while assuring continued reliable service.
Municipal utilities are not currently subject to this legislation.
D. Retirement Trust - The Reading Municipal Light Department Employees'
Pension Trust (the "Pension Trust") was established on December 30,
1966, by the Town of Reading's Municipal Light Board pursuant to
Chapter 164 of the General Laws of the Commonwealth of
Massachusetts.
352
The Pension Trust constitutes the principal instrument of a plan estab-
lished by the Municipal Light Board for the purpose of funding the
Department's annual required contribution to the Town of Reading
Contributory Retirement System (the System), a cost sharing, multi -
employer public employee retirement system.
E. Other Post- Emplovment Benefits Trust - The Other Post - Employment
Benefits Liability Trust Fund (the 'OPEB Trust") was established by the
Reading Municipal Light Board pursuant to Chapter 32B, Section 20 of the
General Laws of the Commonwealth of Massachusetts.
The OPEB Trust constitutes the principal instrument of a plan established
by the Municipal Light Board for the purpose of funding the Department's
annual actuarially determined OPEB contribution *for future retirees.
F. Revenues - Revenues are based on rates established by the Department
and filed with the DPU. Revenues from sales of electricity are recorded on
the basis of bills rendered from monthly meter readings taken on a cycle
basis and are stated net of discounts. Recognition is given to the amount
of sales to customers which are unbilled at the end of the fiscal period.
G. Cash and Short-term investments - For the purposes of the Statement of
Cash Flows, the Department considers both restricted and unrestricted
cash on deposit with the Town. Treasurer to be cash or short -tern invest-
ments. For purpose of the Statement of Net Position, the proprietary funds
consider investments with original maturities of three months or less to be
short-term investments.
H. Investments - State and local statutes place certain limitations on the
nature of deposits and Investments available. Deposits in any financial
institution may not exceed certain levels within the financial institution.
Non - fiduciary fund investments can be made in securities issued or
unconditionally guaranteed by the U.S. Government or agencies that
have a maturity of one year or less from the date of purchase and
repurchase agreements guaranteed by such securities with maturity
dates of no more than 90 days from date of purchase.
Investments for the Department and the Trust consist of shares in the
Massachusetts Municipal DepositoryTrust (MMDT). Because of their
immediate liquidity, these funds are classified as cash and short-term
investments in the accompanying financial statements.
I. Inventory - Inventory consists of parts and accessories purchased for use
in the utility business for construction, operation, and maintenance pur-
poses and is stated at average cost. Meters and transformers are capi-
talized when purchased.
353
J. Capital Assets and Depreciation - Capital assets, which, include property,
plant, equipment, and utility plant infrastructure, are recorded at historical
cost or estimated historical cost when purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of
the donation.
The cost of normal maintenance and repairs that do not add to the value
of the asset or materially extend asset lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as they
are acquired or constructed. Interest incurred during the constructign phase
of proprietary fund capital assets is included as part of the capitalized value
of the constructed asset. When capital assets are retired, the cost of the
retired asset, less accumulated depreciation, salvage value and any cash
proceeds, is charged to the Department's unrestricted net position
account.
Massachusetts General Laws require utility plant in service to be depre-
ciated at an annual rate of 3 %. To change this rate, the Department must
obtain approval from the DPU. Changes in annual depreciation rates may
be made for financial factors relating to cash flow for plant expansion,
rather than engineering factors relating to estimates of useful lives.
K. Accrued Compensated Absences - Employee vacation leave is vested
annually but may only be carried. forward to the succeeding year with
supervisor approval and, if appropriate, within the terms of the applicable
Department policy or union contract. Generally, sick leave may accumu-
late according to union and Department contracts and policy, and is paid
upon normal termination at the current rate of pay. The Department's
policy is to recognize vacation costs at the time payments are made. The
Department records accumulated, unused, vested sick pay as a liability.
The amount recorded Is the amount to be paid at termination at the
current rate of pay.
L: Long -Term Obligations - The proprietary fund financial statements report
long-term debt and other long -term obligations as liabilities in the propri-
etary fund statement of Net Position.
M. Use of Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures for contingent assets and liabilities
at the date of the financial statements, and the reported amounts of the
revenues and expenses during the fiscal year. Actual results could vary
from estimates that were used.
N. Rate of Return - The Department's rates must be set such that earnings
attributable to electric operations do not exceed eight percent of the net
354
2.
cost of plant. The audited financial statements are prepared in accordance
with auditing standards_ generally accepted in the United States of
America. To determine the net income subject to the rate of return, the
Department performs the following calculation. Using the net income per
the audited financials, the return on investment to the Town of Reading
is added back, the fuel charge adjustment is added or deducted, and
miscellaneous debits /credits (i.e., gain /loss on disposal of fixed assets,
etc.) are added or deducted, leaving an adjusted net income figure for
rate of return purposes. Investment interest income and bond principal
payments are then deducted from this figure to determine the net income
subject to the rate of return. The net income subject to the rate of return
is then subtracted from the allowable eight percent rate of return, which
is calculated by adding the book value of net plant and the investment in
associated companies less the contributions in aid of construction multi-
plied by eight percent. From this calculation, the Municipal Light Board will
determine what dash transfers need to be made at year -end.
Cash and Short -Term Investments
Cash and short-term investments as of June 30, 2012 are classified in the
accompanying financial statements gs follows:
Statement of net assets:
Unrestricted cash and short-term investments $ 9,151,851
Restricted cash and short4erm investments 18,035,438
Fiduciary funds:
Cash and short4erm investments - Pension Trust 5,197,092
Cash and short term investments - OPEB Trust 1,495,511
Total cash and investments $ 33,879,892
Cash and short-term investments at June 30, 2012 consist of the following:
Cash on hand $ 3,000
Deposits with financial Institutions 33,876,892
Total cash and investments $ 33,879,892
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that the fair value of an investment will be
adversely affected by changes in market interest rates. Generally, the
longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. The Department manages its
exposure to interest rate risk by purchasing a combination of shorter term
355
and longer term investments and by timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly
over time as necessary to provide the cash flow and liquidity needed for
operations.
As of June 30, 2013, all Department (including the Pension Trust and OPEB
Trust) were held in pooled investments with the Massachusetts Municipal
Depository Trust (MMDT). Because of their immediate liquidity, these funds
are classified as cash and short -term investments in the accompanying
financial statements and are not considered to be exposed to significant
interest rate risk.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that the issuer of an investment will not fulfill
its obligation to the holder of the investment. This is measured by the assign-
ing of a rating by a nationally recognized statistical rating organization. As of
June 30, 2013, none of the Department's (including Pension Trust and OPEB
Trust) short-term investments were exposed to significant credit risk.
Concentration of Credit Risk
The Department follows the Town of Reading's investment policy, which does
not limit the amount that can be invested in any one issuer beyond that stipu-
lated by Massachusetts General Laws. At June 30, 2013, the Department's
(including Pension Trust and OPEB Trust) short-term investments were held
in MMDT's Investment pool.
Custodial Credit Risk
Custodial Credit Risk for deposits is the risk that, in the event of the failure of a
depository financial institution, the Department will not be able to recover its
deposits or will not be able to recover collateral securities that are in the pos-
session of an outside party. The custodial credit risk for investments is the risk
that, In the event of the failure of the counterparty (e.g., broker - dealer) to a
transaction, the Department will not be able to recover the value of its invest-
ments or collateral securities that are in the possession of another party.
Massachusetts General Laws, Chapter 44, Section 55, limits deposits in a
bank or trust company or banking company to an amount not exceeding sixty
percent of the capital and surplus of such bank or trust company or banking
company, unless satisfactory security is given to it by such bank or trust
company or banking company for such excess." The Department follows the
Massachusetts statute as written, as well as the Town of Reading's deposit
policy for custodial credit risk.
Because the Department pools its cash with the Town of Reading, the spe-
cific custodial credit risk of the Department's deposits could not be deter-
mined at June 30, 2013.
356
3.
As of June 30, 2013, none of the Department's (including Pension Trust and
4PEB Trust) short -term mutual fund investments were exposed to custodial
credit risk.
Restricted Cash and Investments
Restricted cash and investments consist of the following at June 30, 2013:
Depreciation fund
Construction fund
Deferred fuel reserve
Deferred energy conservation reserve
Rate stabilization
Reserve for uncollectible accounts
Sick leave benefits
Hazardous waste fund
Customer deposits
Total
Cash
$ 2,733,147
1,500,000
2,609,487
319,022
6,692,239
200,000
3,131,522
150,000
700,021
$ 18,035,438
The Department maintains the following restricted cash accounts:
- Depreciation fund - The Department is normally required to reserve
3.0% of capital assets each year to fund capital improvements.
- Construction fund — This represents additional funds set aside to fund
capital expenditures.
- Deferred fuel reserve - The Department transfers the difference
between the customers' monthly fuel charge adjustment and actual
fuel costs into this account to be used in the event of a sudden
increase in fuel costs.
- Deferred enemy conservation reserve - This account is used to reserve
monies collected from a special energy charge added to customer bills.
Customers who undertake measures to conserve and improve energy
efficiency can apply for rebates that are paid from this-account.
- Rate stabilization - This represents amounts set aside to help stabilize
cost increases resulting from fluctuations in purchase power costs.
- Reserve for uncollectible accounts - This account was set up to offset
a portion of the Department's bad debt reserve.
- Sick leave benefits - This account is used to offset the Department's
actuarially determined compensated absence liability.
357
4.
5.
6.
- Hazardous waste fund -This reserve was set up by the Board of
Commissioners to cover the Department's insurance deductible. in
the event of a major hazardous materials incident.
- Customer deposits - Customer deposits that are held in escrow.
Accounts Receivable
Accounts receivable consists of the following at June 30, 2013:
Customer Accounts:
Billed
$ 4,107,834
Less allowances:
433,900
Uncollectible accounts
(200,000)
Sales discounts
(298,829)
Total billed
Unbilled, net
Total customer accounts
Merchandise sales
121,089
MMWEC surplus
433,900
kitergovemmental grants
21,536
Liens and other
37,824.
Total other accounts
Total net receivables
Prepaid Expenses
Prepaid expenses consist of the following:
Insurance and other $ 295,899
Purchase power 10,474
NYPA prepayment fund 242,261
WC Fuel - Watson 142,811
Total $ 691,445
Inventory
3,609,005
4,158,023
7,767,028
614,349
$ 8,381,377
Inventory is comprised of supplies and materials at June 30, 2013, and is
valued using the average cost method.
358
7. Investment In Associated Companies
Under'agreements with the New England Hydro- Transmission Electric Com-
pany, Inc. (NEH) and the New England Hydro- Transmission Corporation
(NHH), the Department has made the following advances to fund its equity
requirements for the Hydro - Quebec Phase II interconnection. The Depart-
ment is carrying its investment at cost, reduced by shares repurchased. The
Department's equity position in the Project is less than one -half of one percent.
Investment in associated companies consists of the following, at June 30, 2013:
New England Hydro Transmission (NEH & NHH) $ 36,774
8. Capital Assets
the following is a summary of fiscal year 2013 activity in capital assets (in
thousands):
359
Beginning
Ending
Balance
Increased
.,Decreases
Balance
Business -Type Activities
Capital assets, being depreciated:
Structures and Improvements
$ 13,847
$ 332
$ -
$ 14,179
Equipment and furnishings
30,471
1,290
(402)
31,359
Infrastructure
77,682
3,952
(1,185)
80,449
Total capital assets, being depreciated
122,000
5,574
(1,587)
125,987
Less accumulated depreciation for:
Structures and Improvements
(7,362)
(386)
-
(7,748)
Equipment and furnishings
(18,441)
(920)
402
(18,959)
Infrastructure
(28,792)
(2,360)
800
(30,352)
Total accumulated depreciation
(54,595)
(3,666)
1,202
(57,059)
Total capital assets, being depreciated, net
67,405
1,908
(385)
68,928
Capital assets, not being depreciated:
Land
1,266
-
-
1,266
Total capital assets, not being depreciated
1,266
-
-
1,266
Capital assets, net
$ 68,671
$ 1,908
$ (385)
$ 70,194
359
9.
10.
11.
12.
13.
14.
Accounts Payable
Accounts payable represent fiscal 2013 expenses that were paid after June 30,
2013.
Accrued Liabilities
Accrued liabilities consist of the following at June 30, 2013:
Accrued payroll $ 289,204
Accrued sales tax 174,374
Other 64,060
Total $ 527,638
Customer Deposits
This balance represents deposits received from customers that are held in
escrow.
Customer Advances for Construction
This balance represents deposits received from vendors in advance for work
to be performed by the Department. The Department recognizes these
deposits as revenue after the work has been completed.
Accrued Employee Compensated Absences
Department employees are granted sick leave in varying amounts. Upon
retirement, termination, or death, employees are compensated for unused
sick leave (subject to certain limitations) at their then current rates of pay.
Restricted Net Position
The proprietary fund financial statements report restricted net position when
external constraints are placed on net position. Specifically, restricted net
position represents depreciation fund reserves, which are restricted for future
capital costs.
360
15. Post- Emplovnient Healthcare and Life Insurance Benefits
Other Post - Employment Benefits
The Department follows GASB Statement 45, Accounting and Financial
Reporting by Employers for Post- employment Benefits Other Than Pensions.
Statement 45. requires governments to account for other post - employment
benefits (OPEB), primarily healthcare, on an accrual basis rather than on a
pay- as- you-go basis. The effect is the recognition of an actuarially required
contribution as an expense on the Statements of Revenues, Expenses, and
Changes in Net Position when a future retiree earns their post - employment
benefits, rather than when they use their post - employment benefit. To the
extent that an entity does not fund their actuarially required contribution, a
post - employment benefit liability is recognized on the Statement of Net
Position over time.
A. Plan Description
In addition to providing the pension benefits described in Note 16, the
Department provides post - employment health and life insurance benefits
for retired employees through the Town of Reading's Massachusetts Inter -
local Insurance Association (MIIA) Health Benefits Trust. Benefits, benefit
levels, employee contributions and employer contributions are governed
by Chapter 32 of the Massachusetts General Laws. As of June 30, 2011;
the actuarial valuation date, .approximately 73 retirees and 50 active
employees meet the eligibility requirements. The plan does not issue
a separate financial report.
B. Benefits Provided
The Department provides post - employment medical, prescription drug,
and life insurance benefits to all eligible retirees and their surviving
spouses. All active employees who retire from the Department and
meet the eligibility criteria will be eligible to receive these benefits.
C. Fundina Policy
As of the June 30, 2011, the actuarial valuation date, retirees were
required to contribute 29% of the cost of the medical and prescription
drug plan, as determined by the MIIA Health Benefits Trust. Retirees also
contribute 50% of the premium for a $5,000 life insurance benefit. The
Department contributes the remainder of the medical, prescription drug,
and life insurance plan costs on a pay -as- you -go basis.
D. Annual OPEB Costs and Net OPEB Obligation
The Department's fiscal 2013 annual OPEB expense is calculated based
on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance with the parameters of GASB State-
361
ment No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover the normal cost per year and amortize
the unfunded actuarial liability over a period of twenty years. The following
table shows the components of the Department's annual OPEB cost for
the year ending June 30, 2013, the amount actually contributed to the
plan, and the change in the Department's net OPEB obligation based on
an actuarial valuation as of June 30, 2011.
Annual Required Contribution (ARC)
$ 506,576
Interest on net OPEB obligation
98,411
Annual OPEB cost
604,987
Projected benefit payments
(457,069)
Increase in net OPEB obligation
147,918
Net OPEB obligation - beginning of year
1,335,089
Contributions to OPEB Trust (1,483,007 )
Net OPEB obligation -end of year $
0) See Part E for additional information
The Department's annual OPEB Cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation for fiscal year 2013 and
the two preceding fiscal years were as follows:
The Department's net OPEB obligation as of June 30, 2013 is recorded
as a component of the "noncurrent liabilities" line item in the Statements
of Net Position.
E. Funded Status and Fundina Progress
The funded status of the plan as of June 30, 2011, the date of the most
recent actuarial valuation was as follows:
362
Annual
Percentage of
OPEB
OPEB
Net OPEB
Fiscal year ended
Cost
Cost Contributed
Obligation
2013 $
604,987
100.00%
$ -
2012 $
587,945
75.55%
$ - 1,335,089
2011 $
905,981
61.11%
$ 1,165,800
The Department's net OPEB obligation as of June 30, 2013 is recorded
as a component of the "noncurrent liabilities" line item in the Statements
of Net Position.
E. Funded Status and Fundina Progress
The funded status of the plan as of June 30, 2011, the date of the most
recent actuarial valuation was as follows:
362
Actuarial accrued liability (AAL) $ 8,643,438
Actuarial value of plan assets 1,167,161
Unfunded actuarial accrued liability (UAAL) $ 9,810,599
Funded ratio (actuarial value of plan assets /AAL) 13.5%
Covered payroll (active plan members) N/A
UAAL as a percentage of covered payroll N/A
In fiscal year 2010, the Department's Board of Commissioners voted to
accept the provisions of Massachusetts General Law Chapter 32B §20,
to create an Other Post - Employment Benefits Liability Trust Fund as a
mechanism to set aside monies to fund its OPEB liability. In fiscal year
2013, the Board of Commissioners voted to create an OPEB trust instru -.
ment in alignment with the Town of Reading. In fiscal year 2013, the
Department contributed $1 ,483,007 to this trust, which was equal to all of
its actuarially determined annual contributions through June 30, 2013. The
assets and net position of this trust are reported In the Department's
Statement of fiduciary Net Position.
Actuarial valuations of an ongoing plari involve estimates of the value of
reported amounts and assumptions about the probability of events far into
the future. Examples include assumptions about future employment,
mortality, and the healthcare cost trend. Amounts determined regarding
the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared
to past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary
Information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets Is
Increasing or decreasing over time relative to the actuarial accrued liability
for benefits.
F. Actuarial Methods and Assumnfions
Projections of benefits for financial reporting purposes are based on the
plan as understood by the Department and the plan members and include
the types of benefits provided at the time of each valuation and the his-
torical pattern of sharing of benefit costs between the Department and
plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce short-term volatility
in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long -term perspective of the calculations.
363
In the June 30, 2011 actuarial valuation, the Projected .Unit Credit actuarial
cost rpethod was used. The Department's actuarial value of assets was
$1,167,161. The actuarial assumptions included a 7.75% investment rate
of return and an initial annual health care cost trend rate of 9.0% which
decreases to a 5.0% long -term rate for all health care benefits after seven
years. The amortization costs for the initial UAAL is a level percentage of
payroll amortization, with amortization payments increasing at 2.5% per
year fora period of 20 years.
16. Pension Plan
The Department follows the provisions of GASB Statement No. 27, (as
amended by GASB 50) Accounting for Pensions for State and Local
Govemment Employees, with respect to the employees' retirement funds.
Chapter 32 of the Massachusetts General Laws assigns the System the
authority to establish and amend benefit provisions of the plan, and the
State legislature has the authority to grant cost -of- living increases. The
System issues a publicly available financial report which can be obtained
through the Town of Reading Contributory Retirement system at Town
Hall, Reading, MA.
A. Plan DescnDflon
The Department contributes to the Town of Reading Contributory Retire-
ment System (the System), a cost sharing, multiple - employer, defined
benefit pension plan administered by a Town Retirement Board. The
System provides retirement, disability and death benefits to plan mem-
bers and beneficiaries. Chapter 32 of the Massachusetts General Laws
assigns the System the authority to establish and amend benefit provi-
sions of the plan, and grant cost -of- living increases.
B. Funding Policv
Plan members are required to contribute to the System at rates ranging
from 5% to 11% of annual covered compensation. The Department is
required to pay into the System its share of the remaining system wide
actuarially determined contribution plus administration costs which are
apportioned among the employers based on active covered payroll. The
contributions of plan members and the Department are governed by
Chapter 32 of the Massachusetts General Laws. The Department's con-
tributions to the System for the years ended June 30, 2013, June 30,
2012, and June 30, 2011 were $1,288,076, $1,336,326, and $1,278,695,
respectively, which were equal to its annual required contributions for
each of these years.
364
17. Participation in Massachusetts Municipal Wholesale Electric
Company
The Town of Reading, acting through its Light Department, is a participant in
certain Projects of the Massachusetts Municipal Wholesale Electric Company
(MMWEC).
MMWEC is a public corporation and a political subdivision of the Common-
wealth of Massachusetts, created as a means to develop a bulk power supply
for its Members and other utilities. MMWEC is authorized to construct, own or
purchase ownership interests in, and to issue revenue bonds to finance,
electric facilities (Projects). MMWEC has acquired ownership interests in
electric facilities operated by other entities and also owns and operates its
own electric facilities. MMWEC sells all of the capability (Project Capability) of
each of its Projects to Its Members and other utilities (Project Participants)
under Power Sales Agreements (PSAs). Among other things, the PSAs
require each Project Participant to pay its pro rata share of MMWEC's costs
related to the Project, which costs include debt service on the revenue bonds
issued by MMWEC to finance the Project, plus 10% of MMWEC's debt ser-
vice to be paid into a Reserve and Contingency Fund. In addition, should a
Project Participant fail to make any payment when due, other Project Partici-
pants of that Project may be required to Increase (step -up) their payments
and correspondingly their Participants share of that Projecte Project Capa-
bility to an additional amount not to exceed 25% of their original Participant's
share of that Project's Project Capability. Project Participants have cove-
nanted to fix, revise and collect rates at least sufficient to meet their obliga-
tions under the PSAs.
MMWEC has issued separate issues of revenue bonds for each of its eight
Projects, which are payable solely from, and secured solely by, the reve-
nues derived from the Project to which the bonds relate, plus available funds
pledged under MMWEC's Amended and Restated General Bond Resolution
(GBR) with respect to the bonds of that Project. The MMWEC revenues
derived from each Project are used solely to provide for the.payment of the
bonds of any bond issue relating to such Project and to pay MMWEC's cost
of owning and operating such Project and are not used to provide for the
payment of the bonds of any bond issue relating to any other Project.
MMWEC operates the Stony Brook Intermediate Project and the Stony
Brook Peaking Project, both fossil - fueled power plants. MMWEC has a 3.7%
interest in the W.F. Wyman Unit No. 4 plant, which is operated and owned by
its majority owner, FPL Energy Wyman IV, LLC, a subsidiary of NextEra
Energy Resources LLC, and a 4.8% ownership interest in the Millstone Unit 3
nuclear unit, operated by Dominion Nuclear Connecticut, Inc. (DNCI), the
majority owner and an indirect subsidiary of Dominion Resources, Inc. DNCI
also owns and operates the Millstone Unit 2 nuclear unit. The operating
license for the Millstone Unit 3 nuclear unit extends to November 25, 2045.
365
A substantial portion of MMWEC's plant investment and financing program
is an 11.6% ownership interest in the Seabrook Station nuclear generating
unit operated by NextEra Energy Seabrook, LLC (NextEra Seabrook), the
majority owner and an indirect subsidiary of NextEra Energy Resources LLC.
The operating license for Seabrook Station extends to March, 2030. NextEra
Seabrook has submitted an application to extend the Seabrook Station
operating license for an addidonal'20 years.
Pursuant to the PSAs, the MMWEC Seabrook and Millstone Project Partici-
pants are liable for their proportionate share of the costs associated with
decommissioning the plants, which costs are being funded through monthly
Project billings. Also the Project Participants are liable for their proportionate
share of the uninsured costs of a nuclear incident that might be imposed
under the Price - Anderson Act (Act). Originally enacted in 1957, the Act has
been renewed several times. In July 2005, as part of the Energy Policy Act
of 2005, Congress extended the Act until the end of 2025.
Reading Municipal Light Department has entered Into PSAs and Power
Purchase Agreements (PPAs) with MMWEC. Under both the PSAs and
PPAs, the Department is required to make certain payments to MMWEC
payable solely from Department revenues. Under the PSAs, each Participant
is unconditionally obligated to make all payments due to MMWEC, whether
or not the Project(s) is completed or operating, and notwithstanding the
suspension or interruption of the output of the Project(s).
MMWEC is involved in various legal actions. In the opinion of MMWEC
management, the outcome of such actions will not have a material adverse
effect ,on the financial position of the coinpany.
Total capital expenditures for MMWEC's Projects amounted to $1,599,051,000,
of which $114,471,000 represents the amount associated with the Department's
share of Project Capability of the Projects in which it participates, although such
amount is not allocated to the Department. MMWEC's debt outstanding for the
Projects includes Power Supply Project Revenue Bonds totaling $284,005,000,
of which $12,912,000 is associated with the Department's share of Project
Capability of the Projects in which it participates, although such amount is not
allocated to the Department. After the July 1, 2013 principal payment, MMWEC's
total future debt service requirement on outstanding bonds issued for the
Projects is $253,040,000, of.which $10,488,000 is anticipated to be billed to the
Department in the future.
The estimated aggregate amount of Reading Municipal Light Department's
required payments under the PSAs and PPAs, exclusive of the Reserve and
Contingency Fund billings, to MMWEC at June 30, 2013 and estimated for
future years is shown below.
.a
18.
For the years ended June 30,
2014 $ 3,552,000
2015
2,574,000
2016
2,700,000
2017
1,472,000
2018
190,000
Total
$ 10,488,000
In addition, under the PSAs, the Department is required to pay to MMWEC
its share of the Operation and Maintenance (O &M) costs of the Projects in
which it participates. The Department's total O &M costs including debt service
under the PSAs were $12,353,000 and $12,596,000 for the years ended
June 30, 2013 and 2012, respectively.
Renewable Eneray Certificates
In 2003, the Massachusetts Department of Energy and Environmental Affairs
adopted the Massachusetts Renewable Energy Portfolio Standard (RPS), a
regulation that requires Investor Owned Utilities (IOUs) to purchase mandated
amounts of energy generated by renewable resources (Green Energy) as a
percentage of their overall electricity sales. The Massachusetts RPS applies
only to IOUs, so the Department is currently exempt from this mandate.
Energy suppliers meet their annual RPS obligations by acquiring a sufficient
quantity of RPS - qualified renewable energy certificates (RECs) that are
created and recorded at the New England Power Pool ( NEPOOL) Generation
Information System (GIS). Suppliers can purchase RECs from electricity
generators or from other utilities that have - acquired RECs.
As part of its ongoing commitment to Green Energy, the Department has
entered into Purchase Power Agreements (PPAs) with Swift River Hydro LLC
and Concord Steam Corporation to purchase power generated from renew-
able energy resources. These PPA's include the Department taking title to
RECs, which certify that the energy produced was the product of a renewable
resource. Because the Department is exempt from the RPS provisions, it has
the option of holding these RECs until they expire or selling them through the
NEPOOL GIS.
Information regarding the Department fiscal year 2013 REC activity and
balances is as follows:
367
REC Sales During Fiscal 2013
REC Holdings at June 30, 2013
Certificates Amount
CT Class 1 3,272 $ 176,688
MA Class II 4,024 109,893
Subtotal 7,296 286,581
Various 4,606 245,711
Total 11,902 $ 532,292
(4 RECs were In the process of being sold and
transferred to purchaser at June 30, 2013.
Because there are currently no clear accounting guidelines under GAAP or
IFRS for RECs and the Department does not have a formal policy for the
future disposition of RECs, the estimated fair value of the Department's REC
holdings at June 30, 2013 are not reported as an asset on the Statement of
Net Position.
19. Leases
Related Pa -Transaction - Property Sub -Lease
The Department is sub - leasing facilities to the Reading Town Employees
Federal Credit Union. The original sub -lease agreement commenced in
December 2000 and was extended by various amendments through
November 30, 2011. An additional amendment, effective December 1, 2011,
extends the lease through November 30, 2014. The following is the future
minimum rental income for the years ending June 30:
rc.s
Certificates
Amount
Various
4,269
$ 105,658
Various
2,504
158,378
Various
5,836
318,062
Various
1,924
104,858
Various
937
59,218
Various
206
12,978
Various
661
16,525
16,337
$ 775,677
Sale proceeds netted against fiscal year 2013
purchased power fuel charge.
REC Holdings at June 30, 2013
Certificates Amount
CT Class 1 3,272 $ 176,688
MA Class II 4,024 109,893
Subtotal 7,296 286,581
Various 4,606 245,711
Total 11,902 $ 532,292
(4 RECs were In the process of being sold and
transferred to purchaser at June 30, 2013.
Because there are currently no clear accounting guidelines under GAAP or
IFRS for RECs and the Department does not have a formal policy for the
future disposition of RECs, the estimated fair value of the Department's REC
holdings at June 30, 2013 are not reported as an asset on the Statement of
Net Position.
19. Leases
Related Pa -Transaction - Property Sub -Lease
The Department is sub - leasing facilities to the Reading Town Employees
Federal Credit Union. The original sub -lease agreement commenced in
December 2000 and was extended by various amendments through
November 30, 2011. An additional amendment, effective December 1, 2011,
extends the lease through November 30, 2014. The following is the future
minimum rental income for the years ending June 30:
rc.s
2014
$ 8,712
2015
3,630
Total
$ 12,342
20. Implementation of New GASB Standards
The Governmental Accounting Standards Board has issued Statement 68
Accounting and Financial Reporting for Pensions, which is required to be
implemented in fiscal year 2015. Management's current assessment is that
this pronouncement will have a significant impact on the Department's basic
financial statements by requiring the Department to recognize, as a liability
and expense, its applicable portion of the Town of Reading Contributory
Retirement System's actuarially accrued unfunded pension liability. At
January 1, 2012, the date of the most recent actuarial valuation of the
Department's Retirement trust, the Department' s portion of the Town of
Reading Contributory Retirement System's unfunded actuarially accrued
liability was $12,388,256.
369
TOWN OF READING, MASSACHUSETTS
SCHEDULE OF FUNDING PROGRESS
REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2013
(Unaudited)
(Amounts Expressed in thousands)
Employees' Retirement System
Other Post - Employment Benefits
Actuarial
UAAL as
-
Accrued
a Percent -
Actuarial
Liability
Unfunded
age of
Actuarial
Value of
(AAL) -
AAL
Funded
Covered
Covered
Valuation
Assets
Entry Age
(l1AAL)
Ratio
Payroll
Payroll
Date
fal
Lbj
(b-a)
LqLbl
f 91
b-a /c
07/01/11
$ 91,359
$134,440
$ 43,081
68.0%
$ 20,934
205.8%
06/30/09
$ 83,167
$121,918
$ 38,751
68.2°%
$ 21,005
184.5%
06130/07
$ 84,784
$ 112,012
$ 27,228
75.7°%
$19,313
141.0%
06/30/06
$ 77,151
$ 106,238
$ 29,087
72.6°%
$18,860
154.2%
06/30/05
$ 71,468
$ 102,153
$ 30,685
70.0°A '
$18,048
17.0.0%
06130104
$ 66,850
$ 95,961
$ 29,111
69.7%
$17,487
166.5%
06/30/03
$ 62,897
$ 91,302
$ 28,405
68.9°%
$16,734
169.7%
06/30/02
$ 60,933
$ 86,888
$25,955
70.1°%
$16,855
154.0%
06/30101
$ 58,286
$ 82,550
$ 24,264
70.6°%
$16,129
150.4°%
06/30100
$ 54,076
$ 78,486
$ 24,410
68.9%
$15,798
154.5%
Other Post - Employment Benefits
See Independent Auditors' Report.
370
Actuarial
UAAL as
Accrued
a Percent -
Actuarial
Liability
Unfunded
age of
Actuarial,
Value of
(AAL) -
AAL
Funded
Covered
Covered
Valuation
Assets
Entry Age
(UAAL)
Ratio
Payroll
Payroll
Date
f a-1
Lbj
ilha-I
(a/b)
121
b-a /c
06/30/13
$ 2,860
$ 67,170
$ 64,310
4.26%
WA
WA
06/30/11
$ 1,167
$ 94,458
$93,291
1.24%
WA
WA
06/30/08
$ -
$ 60,023
$ 60,023
0.0%
WA
WA
See Independent Auditors' Report.
370
TOWN OF READING, MASSACHUSETTS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
ASSETS
Cash and short-term Investments
Investments
Receivables:
Departmental and other
Intergovemmental
Total Assets
LIABILITIES AND FUND BALANCE
Liabilities:
Warrants payable
Accrued liabilities
Unearned revenue
Retainage payable
Total liabilities
Deferred Inflows of resources
Fund Balances:
Non - spendable
Restricted
Unassigned
Total Fund Balance
Total Liabilities, Deferred
Inflows, and Fund Balance
See Independent Auditors' Report.
Special Revenue Funds
Federal
State
Revolving
Grants
Grants
Funds
$ (10,354)
$ 973,869
$ 4,271,249
-
-
94,199
105,432
435,204
-
$ 95,078.
$ 1,409,073
$ 4,365,448
$ 22,881
$ 40,838
$ 63,273
108,769
732
68,228
-
-
179,703
131,650
41,570
311,204
-
-
94,199
4,539
1,441,397
3,960,045
(41,111)
(73,894)
-
(36,572)
1,367,503
3,960,045
$ 95,078
$ 1,409,073
$ 4,365,448
371
u
Special Revenue Funds
Receipts Gifts and
Resen+ed Donations Subtotals
$ 1,225,900 $ 562,484 $ 7,023,148
94,199
540,636
$ 1,225,900 $ 562,484 $ 7,657,983
$ - $ 32,417
$ 159,409
- -
177,729
- -
179,703
- 32,417
516,841
- -
94,199
1,225,900 530,067
7,161,948
- -
(115,005)
1,225,900 530,067
7,046,943
$ 1,225,900 $ 562,484 $ 7,657,983
372
(continued)
TOWN OF READING, MASSACHUSETTS
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
(continued)
Capital Project Funds
Town
School
Capital
Capital
Project Funds
Project Funds
Subtotals
ASSETS
Cash and short -term Investments
$ 1,085,887
$ 1,251,695
$
2,337,582
Investments
-
-
-
Recehables:
Departmental and other
-
-
-
Intergovernmental
-
-
-
Total Assets
$ 1,085,887
$ 1,251,695
$
2,337,582
LIABILITIES AND FUND BALANCE
Liabilities:
Warrants payable
$ 638
$ 3,078
$
3,716
Accrued liabilities
1,735
-
1,735
Unearned revenue
-
-
-
Retainage payable
-
1,104,104
1,104,104
Total Liabilities
2,373
1,107,182
1,109,555
Deferred inflows of resources
-
-
-
Fund Balances:
Non- spendable
-
-
-
Restricted
1,083, 514
144,513
1,228,027
Unassigned
-
-
-
Total Fund Balance
1,083,514
144,513
1,228,027
Total Liabilities, Deferred
Inflows, and Fund Balance
$ 1,085,887
$ 1,251,695
$
2,337,582
See Independent Auditors' Report.
373
Permanent Funds
Total
Town School Nonrn4or
Trust Trust Govemmental
Funds Funds Subtotals Funds
$ 97,447 $ 182,185 $ 279,632 $ 9,640,362
8,806,446 16,450 8,822,896 8,822,896
- 94,199
- 540,636
$ 8,903,893 $ 198,635 $ 9,102,528 $ 19,098,093
$ 16,955
$ -
$ 16,955
$ 180,080
-
-
-
179,464
179,703
-
1,104,104
16,955
-
16,955
1,643,351
-
94,199
2,842,125
124,950
2,967,075
2,967,075
6,044,613
73,685
6,118,498
14,508,473
_
-
-
(115,005)
8,886,938
198,635
9,085,573
17,360,543
$ 8,903,893
$ 198,635
$ 9,102,528
$ 19,098,093
374
TOWN OF READING, MASSACHUSETTS
COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
Special Revenue Funds
See Independent Auditors' Report.
375
Federal
State
Rewhing
Grants
Grants
Funds
Revenues:
Departmental
$ -
$ -
$ '5,084,156
Intergovernmental
1,771,230
2,300,653
- 152,954
Investment Income
-
-
91
Other
-
-
14,133
Total Revenues
1,771,230
2,300,653
5,251,334
Expenditures:
Current:
-
General govemment
-
3,639
23,987
Public safety
45,388
95,499
604,286
Education
1,693,299
1,773,137
3,161,178
Public works
-
91,288
1,080
Health and human services .
54,402
47,132
17,184
Culture and recreation
4,017
14,775
485,966
Total Expenditures
1,797,106
2,025,470
4,293,681
Excess (deficiency) of revenues over
(under) expenditures
(25,876)
275,183
957,653
Other Financing Sources (Uses):
Transfers in
-
-
-
Transfers out
-
-
(95,40
Total Other Financing Sources (Uses)
-
-
(95,486)
Change In fund balances
(25,876)
275,183
862,167
Fund Balances, beginning of year
(10,696)
1,092,320
3,097,878
Fund Balances, end of year
$ (36,572)
$ 1,367,503
$ 3,960,045
See Independent Auditors' Report.
375
Special Revenue Funds
Receipts Gifts and
Resened Dpnations Subtotals
$ 37,453
$ -
$ 5,121,609
-
-
4,224,837
1,892
-
1,983
369,135
354,108
737,376
408,480
354,108
10,085,805
3,147
4,580
35,353
-
650
745,823
-
158,494
6,786.108
-
-
92,368
-
622
119,340
-
34,370
539,128
3,147
198,716
8,318,120
405,333
155,392
1,767,685
(324,335)
(75,000)
(494,821)
(324,335)
(75,000)
(494,821)
80,998
80,392
1,272,864
1,144,902
449,675
5,774,079
$ 1,225,900
$ 530,067
$ 7,046,943
(continued)
376
TOWN OF READING, MASSACHUSETTS
COMBINING STATEMENT OF REVENUES, E)P ENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
(continued)
Revenues:
Departmental
Intergovemmental
Investment income
Other
Total Revenues
Expenditures:
Current:
General government
Public safety
Education
Public works
Health and human services
Culture and recreation
Total Expenditures
Excess (deficiency) of revenues over
(under'] expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Change In fund balances
Fund Balances, beginning of year
Fund Balances, end of year
See Independent Auditors' Report.
Capital Project Funds
Town School
Capital Capital
Project Funds Project Funds Subtotals
377
1,021,023
-
1,021,023
1,021,023
-
1,021,023
115,829
-
115,829
-
166,424
166,424
4,280
-
4,280
120,109
166,424
286,533
900,914
(166,424)
734,490
-
30,000
30,000
-
(1,213)
(1,213)
-
28,787
28,787
900,914
(137,637)
763,277
182,600
282,150
464,750
$ 1,083,514
$ 144,513
$ 1,228,027
377
30,000
(496,034)
- - - (466.034)
74,318 234 74,552 2,110,693
8,812,620 198,401 9,011,021 15, 249, 850
$ 8,886,938 $ 19® $ 9,085,573 $ 17,360,543
378
Permanent Funds
Total
Town
School
Nonm4or
Trust
Trust
Go%emmental
Funds
Funds
Subtotals
Funds
$ 26,886
$ -
$ 26,886
$ 5,148,495
-
_
-
5,245,860
335,571
7,614
343,185
345,168
3,870
-
3,870
741,246
366,327
7,614
373,941
11,480,769
25,340
-
25,340
176,522
_
-
-
745,823
-
7,380
7,380
6,959,912
120,001
-
120,001
216,649
142,426
-
142,426
261,768
4,242
-
4,242
543,370
292,009
7,380
299,389
8,904,042
74,318
234
74,552
2,576,727
30,000
(496,034)
- - - (466.034)
74,318 234 74,552 2,110,693
8,812,620 198,401 9,011,021 15, 249, 850
$ 8,886,938 $ 19® $ 9,085,573 $ 17,360,543
378
TOWN OF READING, MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
Business -Type Activities
Enterprise Funds
Landfill
Sewer Closure and Stonnwater
Fund Postclosure Management - Total
Operating Revenues:
Charges for serkes $
6,673,855 $
- $ 403,138
$ 7,076,993
Total Operating Revenues
6,673,855
- 403,138
7,076,993
Operating Expenses:
Personnel expenses
380,746
- 154,024
534,770
Non personnel expenses
177,477
- 50,863
228,340
Intergovernmental
4,326,182
- -
4,326,182
Depreciation
396,257
- 30,661
426,918
Energy purchases
26,238
- -
28,238
Total Operating Expenses
5,306,900
235,548
5,542,448
Operating Income
1,366,955
- 167,590
1,534,545
Nonoperating Revenues (Expenses):
Investment income
3,201
- 1,192
4,393
Total Nonoperating Revenues (Expenses)
3,201
- 1,192
4,393
Income Before Transfers
1,370,156
- 168,762
1,538,938
Transfers out
(284,198)
-
(264,198)
Change In Net Position
1,105,958
168,782
1,274,740
Net Position at Beginning of Year
9,018,626
- 1,541,616
10,560,242
Net Position at End of Year $
10,124,584 $
- $ 1,710,398
$ 11,834,982
See Independent Auditors' Report.
379
TOWN OF READING, MASSACHUSETTS
NONMAJOR PROPRIETARY FUNDS
COMBINING SCHEDULE OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2013
Cash Flows From Operating Activities:
Receipts tam customers and users
Payments to vendors and employees
Payments to other governments
Net Cash Provided By (Ubad Far) Operating ActiAles
Cash Flows From Nonceoital Finanoina Activltlex
Transfer out
Nei Cash (Used For) Noncao(al Fktancing Acthdtles -
Q_ ash Flows From Caottal and Rslaied FinanclM Activities:
Acquisition of caplid assets
Pdn Ipel payments on bands and notes
Net Cash PW For) Capital and Related Fbw rJng Acthltles
Cash Flows From Investina Activld
Msstment Income
Net Cash Provided By Imestkg Acthtties
Net Charon In Cash and ShorFTerm Inestmenls
Cash and Start Term kneatments, BegkWng of Year
Cash and Shat Tenn lo estments, End of Year
Reconciliation of Ogera6na Income 4-=) to Net Cash
Pmvlded BydUesd Fod Ooeratlna Activitlex
Operating Income
A* atmerda to reconcile operating Income (toss) to net
cash prodded by (080 f04 owatk9 ac"Ift:
Depreclatiort
Changes In assets end Males,
Usertses.receivetdes
Inverdary and prepayments
Warrants payable
Aermred 9ablNes
Other lief ies
Net OPES ~Ion
Net Cash Provided By (Used For) Operating Activities
See kdepe lent Aud'tors' Report.
Business -Type Activities
Enterprise Funds
fl
Sewer Closure and Stormwrater
Fund Postclosure Manawnent Total
$ 8,296,569 $ - $ 392,592 S 4889,161
(624,534) (5,219) (171,039) (800,792)
4,928,182) - - 4,326,182
1,345,853 (5,219) 221,553 1,582,187
,198 198
(264,198)
(3331075)
- (189,825)
(522.700)
(87,406)
-
7,406
(420,481)
(189,625)
(810,106)
3,201
1,192
4,393
3,201
1,192
4,393
684,375
(5,219) 33,12D
692,276
1,730,681
73,611 971,288
2,7751578
$ 2,395,058 $ 68,392. $ 1,004,408 $ 3,467,854
i 1,386,955
S - S 167,680
$ 1,534,545
398,257
- 30,681
428,918
(377,288)
(101548)
(387,832)
2,328
- -
$328
9,336
17,019 32,970
M325
(53,600)
- 2,051
(51,548)
(22,236) -
(2Z238)
1,883
- 0,1M
690
$ 1,345,853 3 (5,219) $ 21553 i 1,562.187
.m