TOWN OF CANTERBURY, CONNECTICUT BASIC FINANCIAL … of Canterbury Audit 2015-2016.pdf · TOWN OF...

TOWN OF CANTERBURY, CONNECTICUT

BASIC FINANCIAL STATEMENTS, SUPPLEMENTARY INFORMATION AND INDEPENDENT AUDITOR’S REPORT

JUNE 30, 2016

CONTENTS

Page Independent Auditor’s Report 1 Management’s Discussion and Analysis (Unaudited) 3 Basic Financial Statements: Government‐wide Financial Statements: Statement of Net Position 14 Statement of Activities 15 Fund Financial Statements: Governmental Fund Financial Statements Balance Sheet 16 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 17 Statement of Revenues, Expenditures and Changes in Fund Balances 18 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Statement of Revenues, Expenditures and Changes in Fund Balance ‐ Budget and Actual ‐ Budgetary Basis ‐ General Fund 20 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 21 Statement of Changes in Fiduciary Net Position 22 Notes to the Financial Statements 23

CONTENTS (Continued)

Page Required Supplementary Information: Schedule of the Town’s Proportionate Share of the Net Pension Liability – State of Connecticut Municipal Employees’ Retirement System (Unaudited) Schedule of Contributions – State of Connecticut Municipal Employees’ Retirement System (Unaudited) Schedule of the Town’s Proportionate Share of the Net Pension Liability Connecticut State Teachers’ Retirement System (Unaudited) Schedule of Funding Progress – Other Post‐Employment Benefits (Unaudited)

50 51 52 53

Combining and Individual Fund Statements and Schedules: Governmental Funds: General Fund: Schedule of Revenues and Other Financing Sources ‐ Budget and Actual ‐Budgetary Basis 54 Schedule of Expenditures and Other Financing Uses‐ Budget

and Actual ‐ Budgetary Basis 56

Schedule of Property Taxes Levied, Collected and Outstanding 61 Schedule of Debt Limitation 62 Nonmajor Governmental Funds: Combining Balance Sheet 63 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 65 Fiduciary Funds: Agency Funds: Combining Statement of Fiduciary Assets and Liabilities 67 Combining Statement of Changes in Fiduciary Assets and Liabilities 68

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INDEPENDENT AUDITOR’S REPORT To the Board of Finance Town of Canterbury, Connecticut Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Canterbury, Connecticut (the “Town”) as of and for the year ended June 30, 2016, 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 Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Canterbury, Connecticut, as of June 30, 2016, and the respective changes in financial position, and the budgetary comparison schedules for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3 through 13 and the schedules on the Town’s pension plans and other post‐employment benefit plan on pages 50 through 53 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The combining and individual fund statements and schedules on pages 54 through 68 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements and schedules are fairly stated, in all material respects, in relation to the basic 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 December 15, 2016, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance.

Glastonbury, Connecticut

December 15, 2016

MANAGEMENT’S DISCUSSION AND ANALYSIS

TOWN OF CANTERBURY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)

JUNE 30, 2016

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The management of the Town of Canterbury, Connecticut (the “Town”) offers the readers of its financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2016. FINANCIAL HIGHLIGHTS

The assets and deferred outflows of resources of the Town exceeded its liabilities at the close of the most recent fiscal year by $17,339,129 (net position). Of this amount, $3,664,213 (unrestricted net position) may be used to meet the Town’s ongoing obligations to citizens and creditors.

The Town’s total net position increased by $1,124,319 during the current fiscal year.

The Town’s Library received a bequest in the amount of $1,000,000 for general uses and purposes.

As of the close of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $5,714,361, an increase of $1,374,279 in comparison with the prior year.

At the close of the current fiscal year, unassigned fund balance for the General Fund was $1,595,217 or 11.2% of total General Fund expenditures and other financing uses, excluding on‐behalf payments of $842,390. Expressed another way, unassigned fund balance for the General Fund was sufficient to cover 1.3 months of General Fund operating expenditures.

OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Town’s basic financial statements. The Town’s basic financial statements comprise three components: 1) government‐wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government‐wide Financial Statements The government‐wide financial statements are designed to provide readers with a broad overview of the Town’s finances, in a manner similar to a private‐sector business. The statement of net position presents information on all of the Town’s assets, deferred outflows and inflows of resources, and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The statement of activities presents information showing how the Town’s net position changed during the most recent 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 result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

TOWN OF CANTERBURY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited) (Continued)

JUNE 30, 2016

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OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) Government‐wide Financial Statements (Continued) Both of the government‐wide financial statements are intended to distinguish functions of the Town 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 of the Town include activities such as: general government, public safety, public works, health and human services, and education. The Town has no business‐type activities. The government‐wide financial statements can be found on pages 14 and 15 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. All of the funds of the Town can be divided into two categories: governmental 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 the Town’s near‐term financing requirements. Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better understand the long‐term impact of the Town’s near‐term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Town maintains several individual governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Capital and Nonrecurring Fund, and the Library Fund, all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 16 through 20 of this report. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the Town government. Fiduciary funds are not reflected in the government‐wide financial statements because the resources of those funds are not available to the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 21 and 22 of this report.


JUNE 30, 2016

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OVERVIEW OF THE FINANCIAL STATEMENTS (Continued) Notes to the Financial Statements The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government‐wide and governmental fund financial statements. The notes to the financial statements can be found on pages 23 through 49 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also contains required supplementary information and combining and individual fund statements and schedules that can be found on pages 50 through 68 of this report. GOVERNMENT‐WIDE FINANCIAL ANALYSIS Net Position Over time, net position may serve as one measure of a government’s financial position. Net position of the Town totaled $17,339,129 and $16,214,810 as of June 30, 2016 and 2015, respectively, and are summarized as follow:

2016 2015

Current and other assets 8,781,916$ 7,946,455$

Capital assets 10,215,741 10,299,625

Total assets 18,997,657 18,246,080

Deferred outflows of resources 19,953 ‐

Other liabilities 734,862 1,033,995

Long‐term liabilities 943,619 934,030

Total liabilities 1,678,481 1,968,025

Deferred inflows of resources ‐ 63,245

Net Postion:

Net investment in capital assets 9,885,741 9,914,625

Restricted 3,789,175 3,285,183

Unrestricted 3,664,213 3,015,002

Total net position 17,339,129$ 16,214,810$

Town of Canterbury, Connecticut

Net Position

June 30, 2016 and 2015


JUNE 30, 2016

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GOVERNMENT‐WIDE FINANCIAL ANALYSIS (Continued) Net Position (Continued)

As of June 30, 2016, 57.0% of the Town’s net position reflect its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town’s investment in its capital assets is reported net of related debt, 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. Restricted net position represents 21.9% of the Town’s net position. These amounts are subject to external restrictions on how they may be used and are therefore presented as restricted net position. The remainder of the Town’s net position is considered unrestricted and may be used to meet the Town’s ongoing obligations to citizens and creditors. Overall, net position increased by $1,124,319 in comparison to the prior year.

Net investment incapital assets

Restricted Unrestricted

2015 9,914,625 3,285,183 3,015,002

2016 9,885,741 3,789,175 3,664,213

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Amount

Net Position


JUNE 30, 2016

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GOVERNMENT‐WIDE FINANCIAL ANALYSIS (Continued) Changes in Net Position Changes in net position for the years ended June 30, 2016 and 2015 are as follows:

2016 2015

Revenues

Program revenues:

Charges for services 316,898$ 203,259$

Operating grants and contributions 6,407,270 6,799,178

Capital grants and contributions 320,812 442,505

General revenues:

Property taxes, levied for general purposes 8,623,367 8,531,442

Grants and contributions not restricted to specific programs 76,661 93,579

Unrestricted investment earnings 10,896 8,453

Restricted investment earnings 7,946 4

Extraordinary item: bequest 1,000,000 ‐

Total revenues 16,763,850 16,078,420

Expenses

General government 1,212,229 1,214,094

Public safety 303,770 342,325

Public works 990,150 959,913

Health and human services 83,501 101,584

Education 13,032,900 13,250,306

Interest on long‐term debt 16,981 19,594

Total expenses 15,639,531 15,887,816

Change in net position 1,124,319$ 190,604$


JUNE 30, 2016

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GOVERNMENT‐WIDE FINANCIAL ANALYSIS (Continued) Change in Net Position (Continued)


JUNE 30, 2016

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GOVERNMENT‐WIDE FINANCIAL ANALYSIS (Continued) Change in Net Position (Continued) Governmental activities increased the Town’s net position by $1,124,319. Revenues increased approximately $685 thousand in comparison to the prior year. The change in revenues was driven by a $1,000,000 bequest received by the Library for general use, offset by a decrease in operating and capital grants receipts due to the completion of various grant funded projects. Expenses decreased approximately $248 thousand in comparison to the prior year. The largest drivers behind this change were related to a decrease in education expenditures in the current year as a result of decreased budgetary expenditures and decreases in special termination benefits liability. FINANCIAL ANALYSIS OF THE TOWN’S FUNDS As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. Governmental Funds The focus of the Town’s governmental funds is to provide information on near‐term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of the Town’s net resources available for spending at the end of the fiscal year. As of the close of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $5,714,361, an increase of $1,374,279 in comparison with the prior year. General Fund The General Fund is the chief operating fund of the Town. At the close of the current fiscal year, unassigned fund balance for the General Fund was $1,595,217 or 11.2% of total General Fund expenditures and other financing uses, excluding on‐behalf payments of $842,390. Expressed another way, unassigned fund balance for the General Fund was sufficient to cover 1.3 months of General Fund operating expenditures. The fund balance of the Town’s General Fund increased by $24,900 during the current fiscal year primarily due to budgetary results offset by various bugdget to GAAP reconciling items, as outlined below and in Note B to the financial statements. Capital and Nonrecurring Fund The fund balance of the Capital and Nonrecurring Fund increased by $210,018 during the current fiscal year. This increase is primarily related to current year transfers in and proceeds received from grants in excess of current year capital outlays. The ending fund balance as of June 30, 2016 of $1,573,440 is committed to fund various future capital projects. Library Fund The fund balance of the Library Fund increased by $1,009,778 during the current fiscal year. This increase was due to a bequest received by the Library in the amount of $1,000,000 for general uses and purposes.


JUNE 30, 2016

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GENERAL FUND BUDGETARY HIGHLIGHTS During the year ended June 30, 2016, additional appropriations of $21,000 were made to the budget for general government and public works expenditures. In addition, amounts committed in 2016 for future capital projects totaling $375,000 were transferred to the capital projects funds. The final budget for 2015 anticipated the utilization of fund balance of $563,208. The actual net change in fund balance of the General Fund on a budgetary basis was a decrease of $14,787 to fund balance. Expenditures were $453,698 less than budgeted due to underages in the general government, public works and education expense lines. Total budgetary revenues were $94,723 more than budgeted, due to current year tax collections of $304,792 in excess of expectation. This excess was offset by a decrease in expected intergovernmental revenue of $164,292, mainly caused by the aging out of two high cost special education students. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The Town’s investment in capital assets as of June 30, 2016 and 2015 totaled $10,215,741 and $10,299,625, respectively (net of accumulated depreciation and amortization). This investment in capital assets includes land, construction in progress, buildings and improvements, machinery, equipment and vehicles, and infrastructure. The total decrease in the Town’s investment in capital assets for the current fiscal year was $83,884 or 0.8%. This decrease consisted of capital asset additions of $341,406 offset by current year depreciation expense of $425,290. Major capital asset events during the current fiscal year included the purchase of two buses and two public works vehicles, totaling $240,265. The following table is a two year comparison of the investment in capital assets:

2016 2015

Land 677,299$ 677,299$

Construction in progress 890,339 875,961

Buildings and improvements 6,627,920 6,845,686

Machinery, equipment and vehicles 1,063,379 942,219

Infrastructure 956,804 958,460

Totals 10,215,741$ 10,299,625$


Capital Assets, Net

June 30, 2016 and 2015


JUNE 30, 2016

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CAPITAL ASSET AND DEBT ADMINISTRATION (Continued) Capital Assets (Continued)

Additional information on the Town’s capital assets can be found in Note E of this report. Long‐term Debt At the end of the current fiscal year, the Town had no outstanding bonded debt. Rather, long term debt consists of a note payable. State statutes limit the amount of general obligation debt the Town may issue to seven times its annual receipts from taxation, as defined by the statutes. The current debt limitation for the Town is $61,551,217 which is significantly in excess of the Town’s outstanding debt.

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Land Construction inprogress

Buildings andimprovements

Machinery,equipment and

vehicles

Infrastructure

Amount

Capital Assets(Net of Accumulated Depreciation and Amortization)

2015

2016


JUNE 30, 2016

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CAPITAL ASSET AND DEBT ADMINISTRATION (Continued) Long‐term Debt (Continued) The following table is a two year comparison of long‐term debt:

Additional information on the Town’s long‐term debt can be found in Note H of this report.

2016 2015

Note payable 330,000$ 385,000$


Long‐term Debt

June 30, 2016 and 2015

$300,000

$310,000

$320,000

$330,000

$340,000

$350,000

$360,000

$370,000

$380,000

$390,000

Note payable

Amount

Outstanding Debt

2015

2016


JUNE 30, 2016

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES A summary of key economic factors affecting the Town are as follows:

The unemployment rate for the Town as of June 30, 2016 was 5.6%, in comparison to the state’s average unemployment rate of 5.9% and the national unemployment rate of 5.1%.

Inflationary trends in the region are comparable to national indices.

During the current fiscal year, unassigned fund balance of the General Fund decreased to $1,595,217.

Significant estimates affecting next year’s budget that are subject to change in the near term consist of the following:

o For purposes of calculating property tax revenues for fiscal year 2017, the Assessor’s grand list was

used along with an estimated tax rate, and an estimated rate of collection, with deductions for taxes to be paid by the State on behalf of certain taxpayers.

o The Town receives intergovernmental revenues from the State of Connecticut. Connecticut’s

economy moves in the same general cycle as the national economy, which from time to time will affect the amount of intergovernmental revenues the Town will receive. The Town’s budget for such grants were based on estimates from the State.

o It is unknown how changes in market interest rates will impact real estate activity and related

revenues collected by the Land Use Department, the Town Clerk and the amount of conveyance taxes and interest income.

All of these factors were considered in preparing the Town’s budget for fiscal year 2017. The Town’s fiscal year 2017 General Fund budget was approved on June 8, 2016. The approved mill rate for the fiscal year 2017 budget is 24.5, an increase of 2.85, or 13.2%, over the fiscal year 2016 mill rate of 21.65. The Town has assigned $548,967 for spending in the 2017 fiscal year budget. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the Town’s finances for all those with an interest in the Town’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the First Selectman or Town Treasurer, Town of Canterbury, 1 Municipal Drive, Canterbury, Connecticut 06331.

BASIC FINANCIAL STATEMENTS

Governmental

Activities

Cash and cash equivalents 4,809,552$ Investments 911,880

Receivables:

Property taxes and interest, net 196,377

Grants and contracts 62,403

Settlement - current 130,000 Other 3,255

Inventories 3,636

Loans receivable - noncurrent 714,813 Settlement receivable - noncurrent 1,950,000

Capital assets:

Non-depreciable 1,567,638

Depreciable, net 8,648,103 Total assets 18,997,657

Deferred pension expense 19,953

Accounts payable 346,041 Salaries and benefits payable 300,229

Unearned revenue 88,592

Noncurrent liabilities:Due within one year 68,283

Due in more than one year 875,336

Total liabilities 1,678,481

Net investment in capital assets 9,885,741

Restricted for:

Health and human services 1,317,905

Public safety 1,420,207

Special reserves - external restrictions 33,482

Cemetery perpetual care:Nonexpendable 321

Expendable 1,856

Library:

Nonexpendable 4,000

Expendable 96 Donor restrictions 1,007,937

Veteran's Memorial:Expendable 3,371

Unrestricted 3,664,213 Total net position 17,339,129$

ASSETS

LIABILITIES

NET POSITION


STATEMENT OF NET POSITION

JUNE 30, 2016

DEFERRED OUTFLOWS OF RESOURCES

The accompanying notes are an integral part of these financial statements.

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Net (Expense)Operating Capital Revenue and

Charges for Grants and Grants and Changes in Net Position‐Expenses Services Contributions Contributions Governmental Activities

Primary Government Governmental activities:

General government 1,212,229$ 152,857$ 13,172$ ‐$ (1,046,200)$ Public safety 303,770 12,505 ‐ ‐ (291,265) Public works 990,150 2,182 74,151 320,812 (593,005) Health and human services 83,501 87,202 73,387 ‐ 77,088 Education 13,032,900 62,152 6,246,560 ‐ (6,724,188) Interest on long‐term debt 16,981 ‐ ‐ ‐ (16,981)

Total governmental activities 15,639,531$ 316,898$ 6,407,270$ 320,812$ (8,594,551)

General revenues:Property taxes, levied for general purposes 8,623,367 Grants and contributions not restricted to specific programs 76,661 Unrestricted investment earnings 10,896 Restricted investment earnings 7,946

Extraordinary items ‐ bequest 1,000,000 Total general revenues 9,718,870

Change in net position 1,124,319

Net position ‐ beginning 16,214,810

Net position ‐ ending 17,339,129$

Program Revenues

TOWN OF CANTERBURY, CONNECTICUTSTATEMENT OF ACTIVITIES

FOR THE YEAR ENDED JUNE 30, 2016

Functions/Programs


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Capital and Nonmajor TotalGeneral Nonrecurring Library Governmental Governmental

Fund Fund Fund Funds Funds

Cash and cash equivalents 4,672,460$ -$ 117,539$ 19,553$ 4,809,552$ Investments - - 907,784 4,096 911,880 Receivables:

Property taxes, net of allowance of $16,000 156,818 - - - 156,818 Interest, net of allowance of $15,000 39,559 - - - 39,559 Intergovernmental 345 52,509 - 9,549 62,403 Loans - - - 714,813 714,813 Other 3,225 - - 30 3,255

Due from other funds 9,101 1,607,261 - 255,142 1,871,504 Inventories - - - 3,636 3,636

Total assets 4,881,508$ 1,659,770$ 1,025,323$ 1,006,819$ 8,573,420$

LIABILITIES Accounts payable 160,304$ 86,330$ -$ 14,646$ 261,280$ Salaries and benefits payable 292,066 - - 8,163 300,229 Due to other funds 1,947,164 - - 9,101 1,956,265 Unearned revenue 85,828 - - 81,473 167,301

Total liabilities 2,485,362 86,330 - 113,383 2,685,075

DEFERRED INFLOWS OF RESOURCESUnavailable revenue 173,984 - - - 173,984

FUND BALANCESNonspendable:

Inventories - - - 3,636 3,636 Loans receivable - - - 714,813 714,813 Permanent funds principal - - - 4,321 4,321

Restricted:Library - - 1,007,937 - 1,007,937 Health and human services - - - 9,610 9,610 Special reserves - external 33,377 - - 5,428 38,805

Committed:Capital projects - 1,573,440 - - 1,573,440 Open space - - - 154,458 154,458 Library - - 17,386 - 17,386 Other governmental fund purposes - - - 8,671 8,671 Special purposes 7,987 - - - 7,987

Assigned:Subsequent year's budget 548,967 - - - 548,967 Other governmental fund purposes 36,614 - - - 36,614

Unassigned 1,595,217 - - (7,501) 1,587,716 Total fund balances 2,222,162 1,573,440 1,025,323 893,436 5,714,361 Total liabilities, deferred inflows of

resources and fund balances 4,881,508$ 1,659,770$ 1,025,323$ 1,006,819$ 8,573,420$

ASSETS

TOWN OF CANTERBURY, CONNECTICUTBALANCE SHEET

GOVERNMENTAL FUNDSJUNE 30, 2016


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Total fund balances for governmental funds 5,714,361$

Total net position reported for governmental activities in the statement of net position is different because:

Capital assets used in governmental activities are not financial resourcesand, therefore, are not reported in the governmental funds. Those assetsconsist of:

Land 677,299$ Construction in progress 890,339 Buildings and improvements 12,126,976 Machinery, equipment and vehicles 4,359,536 Infrastructure 6,769,836 Less: accumulated depreciation and amortization (14,608,245)

Total capital assets, net 10,215,741

Some of the Town's taxes and interest will be collected after year end, but are not availablesoon enough to pay for the current period's expenditures and, therefore, are reportedas deferred inflows of resources in the governmental funds. 173,984

Settlement receivable from a license agreement is not susceptible to accrual and istherefore not reported in the governmental funds. 2,158,709

Long-term liabilities applicable to the Town's governmental activities are not dueand payable in the current period and, accordingly, are not reported as governmentalfund liabilities. All liabilities - both current and long-term - are reported in the statementof net position. Those liabilities consist of:

Long-term debt:Note payable (330,000)

Other long-term liabilities:Compensated absences (48,214) Special termination benefits (66,000) Net pension liability (262,895) Net OPEB obligation (236,510)

Total long-term liabilities (943,619)

Deferred outflows of resources resulting from changes in the components of thenet pension liability are reported in the statements of net position. 19,953

Net position of governmental activities 17,339,129$

TOWN OF CANTERBURY, CONNECTICUTRECONCILIATION OF THE BALANCE SHEET OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITIONJUNE 30, 2016


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Capital and Nonmajor TotalGeneral Nonrecurring Library Governmental Governmental

Fund Fund Fund Funds FundsREVENUES

Property taxes 8,731,191$ -$ -$ -$ 8,731,191$ Intergovernmental 6,097,579 - - 625,958 6,723,537 Charges for services 257,384 35,000 - 147,885 440,269 Investment earnings 9,426 1,433 7,953 30 18,842 Miscellaneous 4,980 72,129 1,012,587 - 1,089,696

Total revenues 15,100,560 108,562 1,020,540 773,873 17,003,535 EXPENDITURES

Current:General government 1,196,728 - - - 1,196,728 Public safety 306,800 - - - 306,800 Public works 928,065 - - - 928,065 Health and human services 67,330 - 10,762 8,037 86,129 Education 12,129,756 - - 636,253 12,766,009

Debt service:Principal payments 55,000 - - - 55,000 Interest and fiscal charges 16,981 - - - 16,981

Capital outlays - 273,544 - - 273,544 Total expenditures 14,700,660 273,544 10,762 644,290 15,629,256

Excess (deficiency) of revenues over expenditures 399,900 (164,982) 1,009,778 129,583 1,374,279

OTHER FINANCING SOURCES (USES)

Transfers in - 375,000 - - 375,000 Transfers out (375,000) - - - (375,000)

Total other financing sources (uses) (375,000) 375,000 - - -

Net changes in fund balances 24,900 210,018 1,009,778 129,583 1,374,279

Fund balances - beginning 2,197,262 1,363,422 15,545 763,853 4,340,082 Fund balances - ending 2,222,162$ 1,573,440$ 1,025,323$ 893,436$ 5,714,361$

JUNE 30, 2016

TOWN OF CANTERBURY, CONNECTICUTSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


- 18 -

Net change in fund balances for governmental funds 1,374,279$

Total change in net position reported for governmental activities in the statement of activities is different because:

Governmental funds report capital outlays as expenditures. However, in the statementof activities the cost of those assets is allocated over their estimated useful lives andreported as depreciation and amortization expense. The amount by which depreciationand amortization exceeded capital outlay in the current period is as follows:

Expenditures for capital assets 341,406$ Depreciation and amortization expense (425,290) `

Net adjustment (83,884)

Settlement revenue related to a license agreement is not susceptible to accrualand, therefore, is only reported as revenue in the governmental funds when the cash is received by the Town. In the government-wide financial statements, thecash received reduces the settlement receivable recognized in the government-widestatement of net position. (131,860)

The issuance of long-term debt provides current financial resources to governmentalfunds, while the repayment of principal on long-term debt consumes the currentfinancial resources of governmental funds. However, neither transaction has anyeffect on net position. The net effect of these differences in the treatment of long-termdebt and related items is as follows:

Principal repayments:Note payable 55,000

Under the modified accrual basis of accounting used in the governmental funds,expenditures are not recognized for transactions that are not normally paid withexpendable available financial resources. However, in the statement of activities,which is presented on the accrual basis, expenses and liabilities are reported regardlessof when financial resources are available. The net effect of such items is as follows:

Compensated absences 11,269 Special termination benefits 49,560 Net pension liability (65,369) Net OPEB obligation (60,049)

(64,589)

Deferred outflows of resources resulting from changes in the components of the net pension liability are reported in the statements of net position. 83,198

Certain revenues reported in the statement of activities do not provide current financialresources and, therefore, are reported as deferred inflows of resources in the governmentalfunds. This amount represents the change in unavailable revenue. (107,825)

Change in net position of governmental activities 1,124,319$

JUNE 30, 2016

TOWN OF CANTERBURY, CONNECTICUTRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN

FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES


- 19 -

Variance WithFinal Budget

Original Final Actual Over (Under)REVENUES Property taxes 8,426,400$ 8,426,400$ 8,731,192$ 304,792$ Intergovernmental 5,412,471 5,415,471 5,251,179 (164,292) Licenses, permits and charges for services 261,500 261,500 238,881 (22,619)

Investment income 5,000 5,000 9,426 4,426 Miscellaneous 26,500 26,500 (1,084) (27,584) Total revenues 14,131,871 14,134,871 14,229,594 94,723

EXPENDITURESCurrent:

General government 1,333,434 1,342,434 1,180,363 (162,071) Public safety 295,955 295,955 288,297 (7,658) Public works 992,382 1,007,382 928,065 (79,317) Health and human services 68,198 68,198 66,176 (2,022) Special reserves 90,338 90,338 90,338 - Education 11,446,790 11,446,790 11,244,160 (202,630)

Debt service:Principal payments 55,000 55,000 55,000 - Interest and fiscal charges 16,982 16,982 16,982 -

Total expenditures 14,299,079 14,323,079 13,869,381 (453,698)

Excess (deficiency) of revenues over expenditures (167,208) (188,208) 360,213 548,421

OTHER FINANCING SOURCES (USES)Appropriation of fund balance 542,208 563,208 - (563,208) Transfers out (375,000) (375,000) (375,000) -

Total other financing sources (uses) 167,208 188,208 (375,000) (563,208)

Net change in fund balance -$ -$ (14,787) (14,787)$

Fund balance - beginning 2,158,970

Fund balance - ending 2,144,183$

Budgeted Amounts

TOWN OF CANTERBURY, CONNECTICUTSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -

BUDGET AND ACTUAL - BUDGETARY BASIS - GENERAL FUNDJUNE 30, 2016


- 20 -

Private

Purpose Agency

Trust FundsASSETS

Cash and cash equivalents 6,057$ 187,299$

Other - 84,761 Total assets 6,057$ 272,060$

LIABILITIES

Due to others -$ 272,060$ Total liabilities - 272,060$

NET POSITIONHeld in trust for perpetual use 6,057$


STATEMENT OF FIDUCIARY NET POSITION

JUNE 30, 2016

FIDUCIARY FUNDS


- 21 -

Private

Purpose

Trust

FundADDITIONS

Investment earnings:

Interest 26$

Total additions 26

DEDUCTIONS

Administrative expenses 3

Total deductions 3

Change in net position 23

Net position - beginning 6,034

Net position - ending 6,057$


STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

JUNE 30, 2016

FIDUCIARY FUNDS


- 22 -

TOWN OF CANTERBURY, CONNECTICUT NOTES TO THE FINANCIAL STATEMENTS

JUNE 30, 2016

‐ 23 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Town of Canterbury, Connecticut (the “Town”) conform to accounting principles generally accepted in the United States of America, as applicable to governmental organizations. The following is a summary of significant accounting policies: Financial Reporting Entity The Town of Canterbury, Connecticut was settled in 1703 and covers 40.3 square miles located in Windham County. The Town operates under a Board of Selectmen, Town Meeting and Board of Finance form of government and provides the following services as authorized by its charter: public safety, public works, health and human services, social services, culture and recreation, education, planning, zoning and general administrative services.

The legislative power of the Town is vested with the Board of Selectmen and Town Meeting. The Board of Selectmen may enact, amend or repeal ordinances and resolutions. The Board of Finance is responsible for financial and taxation matters as prescribed by Connecticut General Statutes, and is responsible for presenting fiscal operating budgets for Town Meeting approval.

The basic financial statements of the reporting entity include only the funds of the Town (the primary government) as no component units exist based on operational or financial relationships with the Town.

Government‐wide and Fund Financial Statements Government‐wide Financial Statements The statement of net position and the statement of activities display information about the Town and include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double‐counting of internal activities. The statements are intended to distinguish between governmental and business‐type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business‐type activities are financed in whole or in part by fees charged to external parties. The Town has no business‐type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. 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 and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported as general revenues. Fund Financial Statements The fund financial statements provide information about the Town’s funds, including its fiduciary funds. Separate statements for each fund category ‐ governmental and fiduciary ‐ are presented. The emphasis of fund financial statements is on major funds, each displayed in a separate column. All remaining funds are aggregated and reported as nonmajor funds.

TOWN OF CANTERBURY, CONNECTICUT NOTES TO THE FINANCIAL STATEMENTS (Continued)

JUNE 30, 2016

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NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Government‐wide and Fund Financial Statements (Continued) Fund Financial Statements (Continued)

The Town reports the following major governmental funds: General Fund ‐ This fund is the Town’s primary operating fund. It accounts for all financial resources of the general government, except those not accounted for and reported in another fund.

Capital and Nonrecurring Fund – This fund is used to account for the revenues and expenditures related to capital asset construction and/or purchase.

Library Fund – This fund is used to account for the revenues and expenditures associated with the Town’s Library.

The Town reports the following fiduciary fund types:

Private Purpose Trust Fund – This fund type is used to account for trust arrangements under which principal and income benefit individuals, private organizations, or other governments. The Town utilizes a private purpose trust fund to account for activities of funds held in trust for student scholarships.

Agency Funds – These funds are used to account for resources held by the Town in a purely custodial capacity. The Town utilizes these funds to account for assets of the student activity funds and performance bond fund. The student activities funds account for monies generated by student activities in the Town’s school system. The performance bond fund accounts for monies received to ensure that driveways are installed to correct specifications for new construction. Measurement Focus and Basis of Accounting The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

The 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 measureable 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 government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long‐term debt and acquisitions under capital lease are reported as other financing sources.


JUNE 30, 2016

‐ 25 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus and Basis of Accounting (Continued) Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues in the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure‐driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is available to be received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when the cash is received.

The private‐purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. The agency funds has no measurement focus but utilizes the accrual basis of accounting for reporting its assets and liabilities. Implementation of Accounting Standards Effective July 1, 2015, the Town adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, and certain provisions of GASB Statement No. 79, Certain External Investment Pools and Pool Participants. The adoption of these statements did not have a material effect on the Town’s financial statements. Assets, Liabilities, Deferred Outflow/Inflows of Resources and Net Position/Fund Equity Cash Equivalents

The Town’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short‐term investments with original maturities of three months or less from the date of acquisition. Investments Investments in certain external investment pools consist of the Short‐Term Investment Fund (STIF), which is managed by the State of Connecticut Treasurer's Office. Investments in these types of funds, which are permitted to measure their investment holdings at amortized costs, are measured by the Town at the net asset value per share as determined by the pool. Donor‐restricted Endowments

The Town allocates investment income on endowment investments in accordance with donor restrictions and Connecticut law. The State of Connecticut adopted the provisions of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) effective October 1, 2007. UPMIFA requires the investment of endowments in good faith and with the care that an ordinarily prudent person in a like position would exercise under similar circumstances. It requires prudence in incurring investment costs, authorizing only costs that are appropriate and reasonable. Factors to be considered in investing are expanded to include, for example, the effects of inflation. UPMIFA emphasizes that investment decisions be made in relation to the overall resources of the Town.


JUNE 30, 2016

‐ 26 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities, Deferred Outflow/Inflows of Resources and Net Position/Fund Equity (Continued) Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as of the measurement date. Authoritative guidance establishes a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources (also referred to as observable inputs). The Town classifies its assets and liabilities measured at fair value into Level 1 (securities valued using quoted prices from active markets for identical assets), Level 2 (securities not traded on an active market for which market inputs are observable, either directly or indirectly, and Level 3 (securities valued based on unobservable inputs). Investments are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Town does not currently hold any material assets or liabilities which require fair value disclosure. Inventories Inventories are reported at cost using the first‐in first‐out (FIFO) method, except for USDA donated commodities, which are recorded at market value. Inventories are recorded as expenditures when consumed rather than when purchased.

Loans Receivable The Town administers a residential rehabilitation loan program for low to moderate income families. The loans bear an interest rate of 0%. Repayment of the loans is deferred, but the loans become due and payable upon sale or transfer of the property, the owner’s demise, or when the subject property is no longer the applicant’s principal place of residence. The loans may be paid in full or in part by the borrower at any time without penalty. As of June 30, 2016, loans receivable totaled $714,813 under this program. Property Taxes All trade and property tax receivables are shown net of an allowance for uncollectible accounts. The allowance is calculated based upon historical collections and analysis of creditor’s ability to pay. The Town has established an allowance for uncollectible taxes and interest of $16,000 and $15,000, respectively, as of June 30, 2016. Property taxes are assessed as of October 1. Taxes for real estate and personal property taxes are due in two installments on July 1 and the following January 1. Personal property and motor vehicle taxes are payable on July 1 and supplemental motor vehicle taxes are payable on January 1. Liens are effective on the assessment date and are continued by filing before the end of the year following the due date. Assessments for real and personal property, excluding motor vehicles, are computed at 70% of the market value.


JUNE 30, 2016

‐ 27 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities, Deferred Outflow/Inflows of Resources and Net Position/Fund Equity (Continued) Capital Assets Capital assets, which include land, construction in progress, property, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the government‐wide financial statements. Capital assets are defined by the Town as assets with an initial individual cost of more than $35,000 for infrastructure assets and buildings and improvements, more than $20,000 for machinery, equipment and vehicles and more than $5,000 for interior equipment. Such assets 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 donation.

The costs of normal maintenance and repairs that do not add to the value of a capital asset or materially extend capital asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Capital assets of the Town are depreciated using the straight‐line method over the following estimated useful lives:

Assets Years

Buildings and improvements 50Machinery, equipment and vehicles 5‐10 Infrastructure 15

Capital assets acquired under a capital lease are amortized over the life of the lease term. Unearned Revenue

This liability represents resources that have been received but not yet earned.

Deferred Outflows/Inflows of Resources

Deferred outflows and inflows of resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an outflow or inflow of resources until that time. DDeferred outflows of resources consists of deferred pension expenses reported in the government‐wide statement of net position. Deferred pension expenses resulted from changes in the components of the Town’s net pension liability and are being amortized as a component of pension expense on as systematic and rational basis.

Deferred inflows of resources consist of revenue that is considered unavailable under the modified accrual basis of accounting and deferred pension benefits. Unavailable revenue from property taxes is reported in the governmental funds balance sheet and is recognized as an inflow of resources in the period that the amounts become available. Deferred pension benefits are reported net with deferred outflows of resources in the government‐wide statement of net position, and are amortized as a component of pension expense on a systematic and rational basis.


JUNE 30, 2016

‐ 28 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities, Deferred Outflow/Inflows of Resources and Net Position/Fund Equity (Continued) Compensated Absences Town employees and certain Board of Education employees are paid by a prescribed formula for absence due to vacation and sickness. The eligibility for vacation pay does not vest. In the event of termination, employees are compensated for accumulated sick time up to a maximum 60 days for Town employees and 30 days for certain Board of Education employees.

All compensated absences are accrued when incurred in the government‐wide financial statements. Expenditures for compensated absences are recognized in the governmental fund financial statements in the current year to the extent they are paid during the year, or the vested amount is expected to be paid with available resources.

Special Termination Benefits

Teachers covered under union contract are eligible to receive special termination benefits. A teacher with 15 years of continuous services in the Canterbury School System immediately preceding retirement will be eligible for longevity pay at the rate of $200 for each year of service in the Canterbury School System with a maximum of 35 years.

Special termination benefits are accrued when incurred in the government‐wide financial statements. Expenditures for special termination benefits are recognized in the governmental fund financial statements in the current year to the extent they are paid during the year, or the vested amount is expected to be paid with available resources. Long‐term Obligations In the government‐wide financial statements, long‐term debt and other long‐term obligations are reported as liabilities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Position and Fund Balance The government‐wide statement of net position presents the Town’s non‐fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories:

Net investment in capital assets ‐ This component of net position consists of capital assets, net of accumulated depreciation and amortization and reduced by outstanding balances for bonds, notes and other debt that are attributed to the acquisition, construction or improvement of capital assets.

Restricted net position ‐ This component of net position consists of amounts restricted either through external restrictions imposed by creditors, grantors, contributors, and the like, or through restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted net position ‐ This component of net position is the net amount of assets, liabilities, and deferred outflows/inflows of resources, which do not meet the definition of the two preceding categories.


JUNE 30, 2016

‐ 29 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Assets, Liabilities, Deferred Outflow/Inflows of Resources and Net Position/Fund Equity (Continued) Net Position and Fund Balance (Continued) The Town’s governmental funds report the following fund balance categories: Nonspendable ‐ Amounts that cannot be spent because they are not in spendable form or they are legally or contractually required to be maintained intact.

Restricted ‐ Constraints are placed on the use of resources that are either externally imposed by creditors, grantors, contributors or laws and regulations of other governments or imposed by law through enabling legislation.

Committed ‐ Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the Board of Finance (the highest levels of decision making authority of the Town) and cannot be used for any other purpose unless the Town removes or changes the specified use by taking the same formal action. The formal action required to be taken by the Board of Finance to commit fund balance includes formal voting procedures regulated by the Town Charter that of which is consistent with the Town’s budgeting procedures as described in Note B. Assigned ‐ Amounts are constrained by the government’s intent to be used for specific purposes, but are not restricted or committed. The Town Treasurer has been authorized by the Board of Finance to assign Fund Balance as needed to meet the obligations of the Town, with the exception of those amounts assigned by the Board of Finance during the Town’s annual budgeting process as described in Note B.

Unassigned ‐ Residual classification for the General Fund or amounts necessary in other governmental funds to eliminate otherwise negative fund balance amounts in the other four categories.

Net Position Flow Assumption

Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government‐wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied.

The Town does not have a formal policy over net position. In practice, the Town considers restricted net position to have been depleted before unrestricted net position is applied. Fund Balance Flow Assumption

Sometimes the Town will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied.

The Town does not have a formal policy over the use of fund balance. In practice, the Town uses restricted resources first, then unrestricted resources as needed. Unrestricted resources are used in the following order: committed; assigned; then unassigned.


JUNE 30, 2016

‐ 30 ‐

NOTE A ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Interfund Activities Interfund activities are reported as follows: Interfund Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e. the current portion of interfund loans) or “advances to/from other funds” (i.e. the non‐current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds”. Any residual balances outstanding between the governmental activities and business‐type activities are reported in the government‐wide financial statements as “internal balances”. Interfund Services Provided and Used Sales and purchases of goods and services between funds for a price approximating their external exchange value are reported as revenues and expenditures, or expenses, in the applicable funds. Interfund Transfers

Interfund transfers represent flows of assets without equivalent flows of assets in return and without a requirement for repayment. In governmental funds, transfers are reported as other financing uses in the funds making transfers and other financing sources in the funds receiving transfers. In proprietary funds, transfers are reported after non‐operating revenues and expenses. Interfund Reimbursements

Interfund reimbursements represent repayments from the funds responsible for particular expenditures, or expenses, to the funds that initially paid for them. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. NOTE B ‐ BUDGETARY INFORMATION The General Fund is the only fund for which an annual budget is legally adopted. The Town adheres to the following procedures in establishing the budgetary data for the General Fund financial statements in accordance with provisions of its Charter and Connecticut General Statutes.

A budget for the General Fund is authorized annually by the Board of Finance. The Board of Finance follows these procedures in establishing the budgetary data reflected in the financial statements.

The citizens of the Town vote on the recommended budget. The Board of Finance sets the tax rate for the upcoming fiscal year.


JUNE 30, 2016

‐ 31 ‐

NOTE B ‐ BUDGETARY INFORMATION (Continued)

Expenditures are budgeted by function, department and object. The legal level of budgetary control, the level at which expenditures may not exceed appropriations, is established by function and department. Transfers of budgeted amounts between departments must be approved by the Board of Finance. Management may transfer amounts between line items within a department. Additional appropriation requests are submitted by the department heads to the Board of Selectmen. The Board of Selectmen acts on the requests, which, if approved are sent to the Board of Finance. The Board of Finance may approve additional appropriations for a department, provided such additional appropriations do not exceed $20,000 or are not a second request for an appropriation by the asking board, commission or department. Appropriations in excess of the amount which the Board of Finance may approve or a second request by the requesting board, commission or department, must be approved by vote of a Town Meeting. During the year ended June 30, 2016 the Board of Finance and Town Meetings approved additional appropriations from fund balance of $21,000. In addition amounts committed in 2015 for future capital projects totaling $375,000 were transferred to the capital projects funds in 2016 to fund planned projects.

Formal budgetary integration is employed as a management control device during the year.

The budget is prepared on the modified accrual basis of accounting. “On‐behalf” payments made by the State of Connecticut into the State Teachers’ Retirement System (see Note I) are not recorded for budgetary purposes.

Encumbrances are recognized as a valid and proper charge against a budget appropriation in the year in

which the purchase order, contract or other commitment is issued and, accordingly, encumbrances outstanding at year‐end are reported in budgetary reports as expenditures of the current year.

All unexpended appropriations lapse at year‐end, except those for the Capital Projects Funds.

Appropriations for capital projects are continued until completion of applicable projects, even when projects extend more than one fiscal year.

As described above, accounting principles applied for purposes of developing data on a budgetary basis differ from those used to present financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP basis”). A reconciliation of General Fund amounts presented on the budgetary basis to amounts presented on the GAAP basis is as follows for the year ended June 30, 2016:

Other Net Change

Total Total Financing Uses ‐ In Fund Fund

Revenues Expenditures Transfers, Net Balance Balance

Budgetary basis 14,229,594$ 13,869,381$ (375,000)$ (14,787)$ 2,144,183$

"On‐behalf" payments ‐

State Teachers Retirement

Fund (see Note I) 842,390 842,390 ‐ ‐ ‐

Intergovernmental grants netted

against expenditures 18,503 18,503 ‐ ‐ ‐

Budgetary perspective differences ‐

funds combined for GAAP financial

reporting purposes 10,073 (29,614) ‐ 39,687 77,979

GAAP basis 15,100,560$ 14,700,660$ (375,000)$ 24,900$ 2,222,162$


JUNE 30, 2016

‐ 32 ‐

NOTE B ‐ BUDGETARY INFORMATION (Continued) Deficit Fund Balance As of June 30, 2016, the Child Nutrition Fund has a deficit fund balance of $3,865, which does not constitute a violation of statutory provisions. The deficit is expected to be eliminated through future revenues source and/or transfers from other funds. NOTE C ‐ CASH DEPOSITS AND INVESTMENTS Cash Deposits A reconciliation of the Town’s cash deposits as of June 30, 2016 is as follows:

Custodial Credit Risk Custodial credit risk is the risk that, in the event of a bank failure, the Town will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The Town does not have a deposit policy for custodial credit risk. As of June 30, 2016, $4,112,917 of the Town’s bank balance of $4,862,923 was exposed to custodial credit risk as follows:

All of the Town’s deposits were in qualified public institutions as defined by Connecticut state statute. Under this statute, any bank holding public deposits must at all times maintain, segregated from its other assets, eligible collateral in an amount equal to a certain percentage of its public deposits. The applicable percentage is determined based on the bank’s risk‐based capital ratio. The amount of public deposits is determined based on either the public deposits reported on the most recent quarterly call report, or the average of the public deposits reported on the four most recent quarterly call reports, whichever is greater. The collateral is kept in the custody of the trust department of either the pledging bank or another bank in the name of the pledging bank.

Government‐wide statement of net position 4,809,552$

Statement of fiduciary net position 193,356

Add: certificates of deposit considered cash equivalents 911,880

for disclosure purposes

Less: cash equivalents considered investments

for disclosure purposes (1,314,421)

4,600,367$

Uninsured and uncollateralized 3,701,625$

Uninsured and collateralized with securities held by the pledging

bank's trust department or agent but not in the Town's name 411,292

4,112,917$


JUNE 30, 2016

‐ 33 ‐

NOTE C ‐ CASH DEPOSITS AND INVESTMENTS (Continued) Investments A reconciliation of the Town’s investments as of June 30, 2016 is as follows:

Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely 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’s investment policy limits its exposure to fair value losses arising from changes in interest rates by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and investing operating funds primarily in shorter‐term securities, money market mutual funds, or similar investment pools. Information about the exposure of the Town’s investments to this risk using the segmented time distribution model is as follows:

Because the investment in the Short‐Term Investment Fund has a weighted average maturity of less than 90 days, it has been presented as an investment with a maturity of less than one year. Credit Risk The Town has no investment policy that would further limit its investment choices beyond those limited by Connecticut state statutes. Connecticut state statutes permit the Town to invest in obligations of the United States, including its instrumentalities and agencies; in obligations of any state or of any political subdivision, authority or agency thereof, provided such obligations are rated within one of the top two rating categories of any recognized rating service; or in obligations of the State of Connecticut or of any political subdivision thereof, provided such obligations are rated within one of the top three rating categories of any recognized rating service. The Town’s investments in debt securities, whose ratings are required to be disclosed, are summaried in the table above.

Government‐wide statement of net position: 911,880$

Add: cash equivalents considered investments

for disclosure purposes 1,314,421

Less: certificates of deposit considered cash equivalents

for disclosure purposes (911,880)

1,314,421$

Investment

Maturities

(In Years)

Credit Less

Rating Value Than 1

Debt Securities:

Government‐wide statement of net position:

Short‐Term Investment Fund (STIF) AAA 1,314,421$ 1,314,421$

Investment type


JUNE 30, 2016

‐ 34 ‐

NOTE C ‐ CASH DEPOSITS AND INVESTMENTS (Continued) Investments (Continued) Custodial Credit Risk

For an investment, custodial credit risk is the risk that, in the event of the failure of a counterparty, the Town will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

Concentrations of Credit Risk

The Town’s policy is to maintain a diversified portfolio to minimize the risk of loss resulting from over concentration of assets in a specific issuer. All of the Town’s governmental activities investments are invested in the Short‐term Investment Fund (100%).

NOTE D ‐ SETTLEMENT RECEIVABLE In May 2012, the Town entered into a license agreement with a renewable energy developer to provide for the installation of water intake and discharge components including water pipes located under a public highway in the Town of Canterbury. The initial term of the license agreement is for 20 years with the option of renewing the license by the developer for four additional 10 year terms. The agreement provides for quarterly installments to be made to the Town as consideration for this agreement. Annual amounts to be received by the Town amount to between $120,000 and $130,000 per year and are receivable as follows:

The agreement further stipulates that the annual receipts above are restricted for maintaining and operating its ambulance and emergency medical technician services ($85,000), library capital projects ($20,000), recreation capital projects ($15,000), and general purposes ($10,000). A summary of the restriction by function is as follows:

Additional provisions are included in the agreement to provide for additional sums payable to the Town once the developer begins commercial operations and for adjustments to be made to the above revenue streams at such time when certain conditions are met. No such conditions are known to be met as of June 30, 2016.

Governmental

Year ending June 30: Activities

2017 130,000$

2018 130,000

2019 130,000

2020 130,000

2021 120,000

2022 ‐ 2026 600,000

2027 ‐ 2031 600,000

2032 ‐ 2033 240,000

Total settlement receivable 2,080,000

Less: current portion 130,000

1,950,000$

Governmental Activities:

Public safety 85,000$

Health and human services 35,000

General government 10,000

130,000$


JUNE 30, 2016

‐ 35 ‐

NOTE E ‐ CAPITAL ASSETS Capital asset activity for governmental activities for the year ended June 30, 2016 consisted of the following:

Depreciation and amortization expense was charged to functions of the Town as follows:

Beginning Ending

Balance Increases Decreases Balance

Governmental Activities # # #

Capital assets, not being depreciated:

Land 677,299$ ‐$ ‐$ 677,299$

Construction in progress 875,961 14,378 ‐ 890,339

Total capital assets, not being depreciated 1,553,260 14,378 ‐ 1,567,638

Capital assets, being depreciated:

Buildings and improvements 12,126,976 ‐ ‐ 12,126,976

Machinery, equipment and vehicles 4,119,271 240,265 ‐ 4,359,536

Infrastructure 6,683,073 86,763 ‐ 6,769,836

Total capital assets, being depreciated 22,929,320 327,028 ‐ 23,256,348

Less accumulated depreciation:

Buildings and improvements 5,281,290 217,766 ‐ 5,499,056

Machinery, equipment and vehicles 3,177,052 119,105 ‐ 3,296,157

Infrastructure 5,724,613 88,419 ‐ 5,813,032

Total accumulated depreciation 14,182,955 425,290 ‐ 14,608,245

Total capital assets, being depreciated, net 8,746,365 (98,262) ‐ 8,648,103

Governmental activities capital assets, net 10,299,625$ (83,884)$ ‐$ 10,215,741$

Governmental Activities:

General government 32,679$

Public works 135,540

Education 257,071

Total depreciation and amortization expense ‐

governmental activities 425,290$


JUNE 30, 2016

‐ 36 ‐

NOTE F ‐ INTERFUND RECEIVABLES AND PAYABLES Interfund receivable and payable balances at June 30, 2016 are as follows:

All interfund balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. NOTE G ‐ INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2016 consisted of the following:

Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Amount

Governmental Funds

General Fund Nonmajor Governmental Funds 9,101$

Capital and Nonrecurring Fund General Fund 1,607,261

Nonmajor Governmental Funds General Fund 255,142

Fiduciary Funds

Agency Funds General Fund 84,761

Total interfund receivables/payables 1,956,265$

Receivable Fund Payable Fund

Amount

Governmental Funds

Capital and Nonrecurring Fund General Fund 375,000$

Transfers In Transfers Out


JUNE 30, 2016

‐ 37 ‐

NOTE H ‐ LONG‐TERM LIABILITIES The following is a summary of changes in long‐term liabilities for the year ended June 30, 2016:

Long ‐ term liabilities above typically have been liquidated by the General Fund. Note Payable A summary of the note payable outstanding at June 30, 2016 is as follows:

Annual debt service requirements to maturity on the note payable are as follows as of June 30, 2016:

Beginning Ending Due Within

Balance Increases Decreases Balance One Year

Governmental Activities

Notes payable:

Note payable 385,000$ ‐$ (55,000)$ 330,000$ 55,000$

Other liabilities:

Compensated absences 59,483 1,224 (12,493) 48,214 6,283

Special termination benefits 115,560 5,200 (54,760) 66,000 7,000

Net pension liability 197,526 65,369 ‐ 262,895 ‐

Net OPEB obligation 176,461 147,932 (87,883) 236,510 ‐

934,030$ 219,725$ (210,136)$ 943,619$ 68,283$

Final

Issue Original Maturity Interest Amount

Date Amount Dates Rates Outstanding


Note Payable

Rural Development Loan 2001 1,100,000$ 2022 4.75% 330,000$

Note Issue

Year ending June 30: Principal Interest

2017 55,000$ 14,369$

2018 55,000 11,756

2019 55,000 9,144

2020 55,000 6,531

2021 55,000 3,919

2022 55,000 1,306

330,000$ 47,025$


Note Payable


JUNE 30, 2016

‐ 38 ‐

NOTE H ‐ LONG‐TERM LIABILITIES (Continued)

Note Payable (Continued) Legal Debt Limit Connecticut General Statutes Section 7‐374(b) provides that authorized debt of the Town shall not exceed seven times base receipts, as defined in the Statute, or $61,551,217 as of June 30, 2016. Further, the Statute limits the amount of debt that may be authorized by the Town for general purposes, schools, sewers, urban renewal and pension deficit. The Town did not exceed any of the statutory debt limitations at June 30, 2016. Authorized, Unissued Bonds There are no authorized, unissued bonds or notes as of June 30, 2016. Special Termination Benefits Board of Education teachers covered under the union contract are eligible to receive special termination benefits upon retirement. Benefits are payable once teachers have reached 15 years of continuous service up to a maximum of 35 years in the amount of $200 per each year of service. NOTE I ‐ EMPLOYEE RETIREMENT PLANS Connecticut Municipal Employees’ Retirement Fund B The Town participates in the Connecticut's Municipal Employees’ Retirement System (CMERS). CMERS is the public pension plan offered by the State of Connecticut for municipal employees in participating municipalities. The plan was established in 1947 and is governed by Connecticut Statute Title 7, Chapter 113. Chapter 113, Part II of the General Statutes of Connecticut, which can be amended by legislative action, establishes PERS benefits, member contribution rates, and other plan provisions. Municipalities may designate which departments are to be covered under the CMERS. Only employees covered under the State Teachers’ Retirement System may not be included. There are no minimum age or service requirements. Membership is mandatory for all regular full time employees of participating departments except Police and Fire hired after age 60. The plan has 4 sub plans as follows:

• General employees with social security • General employees without social security • Policemen and firemen with social security • Policemen and firemen without social security

Plan Description Plan administration ‐ CMERS is a multiemployer pension plan administered by the Connecticut State Retirement Commission. The State Retirement Commission is responsible for the administration of the CMERS. The State Treasurer is responsible for investing CMERS funds for the exclusive benefit of CMERS members. Plan membership ‐ All full‐time employees of the Town, except for certified Board of Education personnel who are eligible for the State Teachers’ Retirement System, who are age 55 or younger at the date of hire, participate in the CMERS plan for general employees with social security.


JUNE 30, 2016

‐ 39 ‐

NOTE I ‐ EMPLOYEE RETIREMENT PLANS (Continued) Connecticut Municipal Employees’ Retirement Fund B (Continued) Plan Description (Continued) Benefits provided ‐ General employees are eligible to retire at age 55 with 5 years of continuous service, or 15 years of active aggregate service, or 25 years of aggregate service. Police are eligible at the compulsory retirement age for police and fire members are eligible at the age of 65. For members not covered by social security, the benefit is 2% of average final compensation times years of service. For members covered by social security, the benefit is 1% of the average final compensation not in excess of the year's breakpoint plus 2% of average final compensation in excess of the year's breakpoint, times years of service. The maximum benefit is 100% of average final compensation and the minimum benefit is $1,000 annually. Both the minimum and the maximum include workers' compensation and social security benefits. If any member covered by social security retires before age 62, the benefit until age 62 is reached or a social security disability award is received, is computed as if the member is not under social security. Employees are eligible for early retirement after 5 years of continuous or 15 years of active aggregate service. The benefit is calculated on the basis of average final compensation and service to date of termination. Deferred to normal retirement age, or an actuarially reduced allowance may begin at the time of separation. Employees are eligible for service‐related disability benefits from being permanently or totally disabled from engaging in the service of the municipality provided such disability has arisen out of and in the course of employment with the municipality. Disability due to hypertension or heart disease, in the case of firemen and policemen, is presumed to have been suffered in the line of duty. Disability benefits are calculated based on compensation and service to the date of the disability with a minimum benefit (including workers' compensation benefits) of 50% of compensation at the time of disability. Employees are eligible for non‐service‐related disability benefits with 10 years of service and being permanently or totally disabled from engaging in gainful employment in the service of the municipality. Disability benefits are calculated based on compensation and service to the date of the disability. The plan also offers a pre‐retirement death benefit in the form of a lump sum return of contributions with interest or surviving spouse benefit depending on length of service. Contributions ‐ The contribution requirements of plan members are established and may be amended by the State Retirement Commission. The Town is required to contribute annual contributions consisting of a normal cost contribution, a contribution for the amortization of the net unfunded accrued liability and a prior service amortization payment which covers the liabilities of the system not met by member contributions. The current rate is 11.38% of the annual Town employees’ covered payroll. The contribution requirements of the Town are established and may be amended by the State Retirement Commission. The Town’s contributions to the CMERS for the years ended June 30, 2016, 2015 and 2014 were $58,007, $66,644, and $67,860, respectively, and were equal to the required contributions for each year. For employees not covered by social security, each person is required to contribute 5% of compensation. For employees covered by social security, each person is required to contribute 2.25% of compensation up to the social security taxable wage base plus 5% of compensation, if any, in excess of such base.


JUNE 30, 2016

‐ 40 ‐

NOTE I ‐ EMPLOYEE RETIREMENT PLANS (Continued) Connecticut Municipal Employees’ Retirement Fund B (Continued) Summary of Significant Accounting Policies Pensions ‐ For purposes of measuring the net pension liability, deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of CMERS and additions and deletions from CMERS’ net position are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. For this purpose, benefit payments are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates.

Investment policy ‐ The CMERS’ policy in regard to the allocation of invested assets is established and may be amended by the State Retirement Commission. It is the policy of the State to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The State Treasurer is responsible for investing CMERS funds for the exclusive benefit of CMERS members. Net Pension Liability The total estimated net pension liability of the CMERS as of June 30, 2015 was $192.737 million, the most recent available reporting provided by the Board. The portion that was associated with the Town totaled $262,895 or approximately 0.1364% of the total estimated net pension liability. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014, rolled forward for the year ending June 30, 2015. The portion of the net pension liability associated with the Town was based on the 2014 actuarial (expected) payroll amounts reported by participating employers. Expected payroll adjusts actual payroll for known changes in the status of employees, annualized salaries for partial year employees and anticipated salary increases. Actuarial assumptions ‐ The total pension liability for the CMERS was determined by an actuarial valuation as of June 30, 2014, rolled forward for the year ending June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement:

Mortality rates were based on the RP‐2000 Combined Mortality Table for annuitants and non‐annuitants (set forward one year for males and set back one year for females). The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Inflation 3.25%

Salary increases 4.25% ‐ 11.00%, including inflation

Investment rate of return 8.00%

Discount rate 8.00%


JUNE 30, 2016

‐ 41 ‐

NOTE I ‐ EMPLOYEE RETIREMENT PLANS (Continued) Connecticut Municipal Employees’ Retirement Fund B (Continued) Net Pension Liability (Continued)

Discount rate ‐ The discount rate used to measure the CMERS’ total pension liability was 8.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that State contributions will be made at the actuarially determined rates in future years. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the net pension liability to changes in the discount rate ‐ The following presents the Town’s proportionate share of the net pension liability calculated using the discount rate of 8.00%, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1‐percentage point lower (7.00%) or 1‐percentage‐point higher (9.00%) than the current rate:

Pension plan fiduciary net position ‐ Detailed information about the CMERS plan’s fiduciary net position is included in the State of Connecticut’s basic financial statements.

Long‐term

Target Expected Real

Asset Class Allocation Rate of Return

Large cap U.S. Equities 16.0% 5.80%

Developed Non‐U.S. Equities 14.0% 6.60%

Emerging Markets (Non‐U.S.) 7.0% 8.30%

Core Fixed Income 8.0% 1.30%

Inflation Linked Bonds 5.0% 1.00%

Emerging Market Bonds 8.0% 3.70%

High Yield Bonds 14.0% 3.90%

Real Estate 7.0% 5.10%

Private Equity 10.0% 7.60%

Alternative Investment 8.0% 4.10%

Liquidity Fund 3.0% 0.40%

100.0%

Current

1% Decrease Discount 1% Increase

(7.00%) (8.00%) (9.00%)

Town proportionate share of the net pension

liability as of June 30, 2016 473,291$ 262,895$ 84,638$


JUNE 30, 2016

‐ 42 ‐

NOTE I ‐ EMPLOYEE RETIREMENT PLANS (Continued) Connecticut Municipal Employees’ Retirement Fund B (Continued) Pension Expense and Deferred Outflows of Resources For the year ended June 30, 2016, the Town recognized pension expense related to the CMERS of $48,601. At June 30, 2016 the Town reported its proportionate share of deferred inflows and outflows of resources related to the CMERS from the following source:

The net amount reported as deferred outflows of resources related to the CMERS will be amortized as a component of pension expense in future years as follows:

Connecticut State Teachers’ Retirement System The faculty and professional personnel of the Town’s Board of Education participate in the Teachers’ Retirement System (“TRS”), which is a cost‐sharing multiple‐employer defined benefit pension plan established under Chapter 167a of the Connecticut General Statutes. The TRS is administered by the Connecticut State Teachers’ Retirement Board (the “Board”) and is included as a fiduciary pension trust fund in the State of Connecticut’s basic financial statements. Plan benefits, cost‐of‐living allowances, required contributions of plan members and the State, and other plan provisions are described in Sections 10‐183b to 10‐183ss of the Connecticut General Statutes. The plan provides retirement, disability, death benefits, and annual cost‐of‐living adjustments to plan members and their beneficiaries. The contribution requirements of plan members and the State are established and may be amended by the State legislature. In accordance with Section 10‐183z of the General Statues, the Town does not and is not legally responsible to contribute to the plan as a special funding situation exists that requires the State to contribute one hundred percent of employer’s contributions on‐behalf of its participating municipalities at an actuarially determined rate. Plan members are currently required to contribute 7.25% of their annual earnings to the plan. After five years of service, teachers are fully vested in their own contributions. After ten years of service, teachers are fully vested in the monthly pension benefit which is payable at the age of sixty. For the year ended June 30, 2016, plan members of the Town contributed $249,993 to the plan and covered payroll for the year was $3,448,179. The Town has recognized on‐behalf payments of $842,390 made by the State of Connecticut into the plan as intergovernmental revenues, and related expenditures of the General Fund in the accompanying statement of revenues, expenditures and changes in fund balances of the governmental funds.

Deferred Inflows Deferred Outflows Deferred Outflows

of Resources of Resources of Resources, net

Net difference between projected and actual

earnings on pension plan investments 47,434$ 67,387$ 19,953$

Total 47,434$ 67,387$ 19,953$

Year ended June 30,

2017 1,035$

2018 1,035

2019 1,035

2020 16,848

19,953$


JUNE 30, 2016

‐ 43 ‐

NOTE I ‐ EMPLOYEE RETIREMENT PLANS (Continued) Connecticut State Teachers’ Retirement System (Continued) Administrative costs of the plan are funded by the State. The total estimated net pension liability of the TRS as of June 30, 2015 was $10.972 billion, the most recent available reporting provided by the Board. The portion that was associated with the Town totaled approximately $9.4 million or approximately 0.086% of the total estimated net pension liability. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014, rolled forward to June 30, 2015. The portion of the net pension liability associated with the Town was based on a projection of the long‐term share of contributions to the plan related to the Town relative to the projected contributions of all participating employers, actuarially determined. The pension expense attributed to the Town totaled $754,072 for the year ended June 30, 2016. The total pension liability was determined by an actuarial valuation as of June 30, 2014, rolled forward to June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.0% Salary increases 3.75% ‐ 7.0% (includes inflation) Investment rate of return 8.5% (includes inflation) Cost of living adjustments: Retirements prior to 9/1/1992 3.0% Retirements on or after 9/1/1992 2.0% For healthy retirees and beneficiaries, the RP‐2000 Combined Mortality Table projected forward 19 years using scale AA, with a two‐year setback for males and females. The long‐term expected rate of return on pension plan investments was determined using a building‐block method in which best‐estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Long‐term

Target Expected Real

Asset Class Allocation Rate of Return

Large cap U.S. Equities 16.0% 5.80%

Developed Non‐U.S. Equities 14.0% 6.60%

Emerging Markets (Non‐U.S.) 7.0% 8.30%

Core Fixed Income 8.0% 1.30%

Inflation Linked Bonds 5.0% 1.00%

Emerging Market Bonds 8.0% 3.70%

High Yield Bonds 14.0% 3.90%

Real Estate 7.0% 5.10%

Private Equity 10.0% 7.60%

Alternative Investment 8.0% 4.10%

Liquidity Fund 3.0% 0.40%

100.0%


JUNE 30, 2016

‐ 44 ‐

NOTE I ‐ EMPLOYEE RETIREMENT PLANS (Continued) Connecticut State Teachers’ Retirement System (Continued) The discount rate used to measure the total pension liability was 8.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that State contributions will be made at the actuarially determined rates in future years. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long‐term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The following presents the Town’s proportionate share of the net pension liability calculated using the discount rate of 8.50%, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1‐percentage point lower (7.50%) or 1‐percentage‐point higher (9.50%) than the current rate:

Detailed information about the plan’s fiduciary net position is included in the State of Connecticut’s basic financial statements. NOTE J ‐ OTHER POST‐EMPLOYMENT BENEFITS Plan Description The Town of Canterbury provides lifetime healthcare insurance benefits for eligible retirees and their spouses through the Town’s group health insurance plan, which covers both active and retired members. Benefit provisions are established through negotiations between the Town and the union representing Town employees and are renegotiated each three‐year bargaining period. The Plan does not issue a publicly available financial report and is not included in the financial statements of another entity. Funding Policy Contribution requirements of the plan members and the Town are established by and may be amended through negotiations between the Town and the union. Currently, Board of Education Employees with 20 years of service in the Canterbury School System are eligible to receive benefits for 2 years after retirement. Employees with 30 years of service are eligible to receive benefits for 4 years and employees with 35 years are eligible for 5 years. Those who choose to participate must pay the same percentage of premium cost as full time employees. Retirees may continue coverage at full cost to the retiree after the period of Board subsidization ends. All other Board of Education and Town retirees may participate at full cost to the retiree. The Town finances the plan on a pay‐as‐you‐go basis. The Town has not established a trust fund as of June 30, 2016, to irrevocably segregate assets to fund the liability for post‐employment benefits, which would require the reporting of a trust fund in accordance with GASB guidelines.

Current

1% Decrease Discount 1% Increase

(7.50%) (8.50%) (9.50%)

Town proportionate share of the net pension

liability as of June 30, 2016 $11.9 million $9.4 million $7.3 million


JUNE 30, 2016

‐ 45 ‐

NOTE J ‐ OTHER POST‐EMPLOYMENT BENEFITS (Continued) Funding Policy (Continued) The following is the current census, as of the latest actuarial valuation, of the Town’s post‐employment benefit participants:

OPEB payments for the year ended June 30, 2016, net of retiree and other contributions, amounted to $87,883. Annual OPEB Cost and Net OPEB Obligation The Town’s annual OPEB cost (expense) is calculated based on the annual required contribution (“ARC”), an amount actuarially determined. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The Town’s annual OPEB cost and net OPEB obligation are primarily attributed to an implicit rate subsidy, whereby retirees are considered to be receiving a benefit from the Town for access to insurance rates offered to the Town’s active employees. The following table shows the components of the Town’s annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the Town’s net OPEB obligation:

Three‐Year Trend Information

Active members 115

Retirees and spouses 6

Total 121

Annual required contribution 147,208$

Interest on net OPEB obligation 7,058

Adjustment to annual required contribution (6,334)

Annual OPEB cost 147,932

Contributions made 87,883

Increase in net OPEB obligation 60,049

Net OPEB obligation, beginning of the year 176,461

Net OPEB obligation, end of the year 236,510$

Annual Percentage

Plan Year OPEB of AOC Net OPEB

Ended June 30, Cost Contributed Obligation

2014 180,801$ 98.6% 109,141$

2015 141,413 52.4% 176,471

2016 147,932 59.4% 236,510


JUNE 30, 2016

‐ 46 ‐

NOTE J ‐ OTHER POST‐EMPLOYMENT BENEFITS (Continued)

Annual OPEB Cost and Net OPEB Obligation (Continued) Funded Status and Funding Progress The funded status of the plan as of July 1, 2014 (the date of the most recent actuarial valuation) was as follows:

The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of events in 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 Town are subject to continual revision, as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, present multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits are based on the substantive plan (the plan as understood by the Town and plan members) and include the types of benefits in force at the valuation date and the pattern of sharing benefit costs between the Town and the plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations on the pattern of cost sharing between the Town and plan members in the future. Actuarial calculations reflect a long‐term perspective and employ methods and assumptions that are designed to reduce short‐term volatility in actuarial accrued liabilities and the actuarial value of assets. Significant methods and assumptions were as follows:

Actuarial (Overfunded) UAAL as a

Actuarial Accrued Unfunded Percentage of

Actuarial Value of Liability (AAL) ‐ AAL Funded Covered Covered

Valuation Assets Projected Unit (UAAL) Ratio Payroll Payroll

Date (A) Credit (B) (B‐A) (A/B) (C) ((B‐A)/C)

July 1, 2014 ‐$ 1,321,593$ 1,321,593$ 0.0% 5,195,582$ 25.4%

Valuation date: July 1, 2014

Actuarial cost method: Projected Unit Credit

Amortization method: Open Amortization Period

Remaining amortization period: 30 years

Asset valuation method: N/A

Actuarial assumptions:

Investment rate of return 4.00% pay‐as‐you‐go

7.50% full pre‐funding

Inflation rate 3.50%

Healthcare cost trend rate 8.00% initial

5.00% final


JUNE 30, 2016

‐ 47 ‐

NOTE K ‐ RISK MANAGEMENT The Town is exposed to various risks of loss related to torts, thefts of, damage to, or destruction of assets; errors or omissions; injuries to employees or acts of God. The Town purchases commercial insurance for all risks of loss except worker’s compensation insurance for which it participates in a risk pool. During 2016, deductibles paid by the Town were insignificant. Neither the Town nor its insurers have settled any claims which exceeded the Town’s insurance coverage during the past three years.

The Town is a member of the Connecticut Interlocal Risk Management Agency (CIRMA), an unincorporated association of Connecticut local public agencies which was formed in 1980 by the Connecticut Conference of Municipalities for the purpose of establishing and administering an interlocal risk management program pursuant to the provisions of Section 7479a et. seq. of the Connecticut General Statutes.

The Town is a member of CIRMA’s Liability‐Automobile‐Property Pool, a risk sharing pool, which was begun on July 1, 1986. For the coverage period July 1, 2015 to June 30, 2016, the Town paid $36,298 in contributions (premiums) to CIRMA for provision of general liability, automobile liability, employee benefit liability, law enforcement liability, public officials liability, auto physical damage, property and boiler and machinery insurance coverages. The contribution (premium) is subject to audit after the close of the coverage period. Various deductibles applied to these coverages and claims and expense payments falling within the deductible amounts are the responsibility of the Town.

The Town is also a member of CIRMA’s Workers’ Compensation Pool, a risk sharing pool, which was begun on July 1, 1980. The Workers’ Compensation Pool provides statutory benefits pursuant to the provisions of the Connecticut Workers’ Compensation Act. The coverage is subject to an incurred loss retrospective rating plan and losses incurred in coverage period July 1, 2015 to June 30, 2016 will be evaluated at 18, 30 and 42 months after the effective date of coverage. The deposit contribution (premium) paid in for that period was $45,335. The contribution (premium) is subject to payroll audit at the close of the coverage period. CIRMA’s Workers’ Compensation Pool retains $750,000 for each insured occurrence to the limit of liability of $10 million per occurrence. In addition, CIRMA purchases statutory excess insurance in the event of a single occurrence in excess of $10 million.

NOTE L ‐ COMMITMENTS AND CONTINGENCIES Grants and Contracts Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. Any disallowed claims, including 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. Litigation There are several lawsuits pending against the Town. The outcome and eventual liability to the Town, if any, in these cases is not known at this time. The Town’s management, based upon consultation with legal counsel, estimates that potential claims against the Town, not covered by insurance, resulting from such litigation would not materially affect the financial position of the Town.


JUNE 30, 2016

‐ 48 ‐

NOTE M ‐ IMPACT OF NEW ACCOUNTING STANDARDS NOT YET EFFECTIVE In June 2015, the GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans other than Pension Plans. This statement establishes new accounting and financial reporting requirements for OPEB plans included in the general purpose external financial reports of state and local governmental OPEB plans and replaces the requirements of GASB Statements No. 43, Financial Reporting for Postemployment Benefit Plans other than Pension Plans, as amended, and GASB Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple‐Employer Plans. The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2016. The Town currently provides other post‐employment benefits to certain eligible employees. The Town has not yet determined the impact that this statement will have on its financial statements. In June 2015, the GASB issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits other than Pensions. This statement establishes new accounting and financial reporting requirements for OPEB plans and replaces the requirements of GASB Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and GASB Statement No. 57, OPEB Measurements by Agent Employers and Agent Multiple‐Employer Plans, for OPEB. The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2017. The Town currently provides other post‐employment benefits to certain eligible employees. The Town has not yet determined the impact that this statement will have on its financial statements. In August 2015, the GASB issued Statement No. 77, Tax Abatement Disclosures. This statement establishes disclosure of information about the nature and magnitude of tax abatements to allow users of the financial statements to understand 1) how tax abatements affect a government’s future ability to raise resources and meets its financial obligations and 2) the impact those abatements have on a government’s financial position and economic condition. The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2016. The Town does not expect this statement to have a material effect on its financial statements.

In December 2015, the GASB issued Statement No. 78, Pensions Provided through Certain Multiple‐Employer Defined Benefit Pension Plans. This statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local governmental employers through a cost‐sharing multiple‐employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or local governmental employer (either individually or collectively with other state or local governmental employers that provide pensions through the pension plan). The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2016. The Town does not expect this statement to have a material effect on its financial statements.

In December 2015, the GASB issued Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. Specifically, it establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. Certain provisions of this statement are effective for the Town’s reporting period beginning July 1, 2016. The Town does not expect this statement to have a material effect on its financial statements.

In January 2016, the GASB issued Statement No. 80, Blending Requirements for Certain Component Units – an amendment of GASB Statement No. 14. This statement amends the blending requirements established in GASB Statement No. 14, The Financial Reporting Entity, as amended. The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2017. The Town does not expect this statement to have a material effect on its financial statements.


JUNE 30, 2016

‐ 49 ‐

NOTE M ‐ IMPACT OF NEW ACCOUNTING STANDARDS NOT YET EFFECTIVE (Continued) In March 2016, the GASB issued Statement No. 81, Irrevocable Split‐Interest Agreements. This statement addresses accounting and financial reporting for irrevocable split‐interest agreements by providing recognition and measurement guidance for situations in which a government is a beneficiary of the agreement. The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2017. The Town does not expect this statement to have a material effect on its financial statements. In March 2016, the GASB issued Statement No. 82, Pension Issues – an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses issues regarding (1) the presentation of payroll‐related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The requirements of this statement are effective for the Town’s reporting period beginning July 1, 2017. The Town does not expect this statement to have a material effect on its financial statements.

REQUIRED SUPPLEMENTARY INFORMATION

2016 2015

Town's proportion of the net pension liability 0.1364% 0.1891%

Town's proportionate share of the net pension liability 262,895$ 186,374$

Town's covered payroll 509,728$ 426,102$

Town's proportionate share of the net pension

liability as a percentage of its covered payroll 51.6% 43.7%

Plan fiduciary net position as a percentage of the

total pension liability 92.72% 96.06%

Notes to Schedule:


SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (UNAUDITED)

CONNECTICUT MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM

LAST TWO FISCAL YEARS

The Town began to report this schedule when it implemented GASB Statement No. 68 in fiscal year

2015.

The total pension liability reported for each fiscal year is based on a measurement date as of the

end of the prior fiscal year (i.e. the total pension liability reported for 2016 is based on a June 30,

2015 measurement date).

Benefit Changes: There were no changes in benefit terms that affected the measurement of the

total pension liability.

Changes in assumptions: There were no changes in assumptions that affected the measurement of

the total pension liability.

The allocation totals and percentages for the year-ended June 30, 2015 have been adjusted based

on a restatement to the Connecticut Municipal Employees Retirement System fiduciary net

position. The July 1, 2014 fiduciary net position increased by $139,565,000 to include the gross

amount of contributions receivable.

See accompanying Independent Auditor's Report.

- 50 -

2016 2015

Contractually required contribution 58,007$ 66,644$

Contributions in relation to the contractually

required contribution 58,007 66,644

Contribution deficiency (excess) -$ -$

Covered employee payroll 509,728$ 426,102$

Contributions as a percentage of covered

employee payroll 11.38% 15.64%

Notes to Schedule:


SCHEDULE OF CONTRIBUTIONS (UNAUDITED)

CONNECTICUT MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM

The Town began to report this schedule when it implemented GASB Statement No. 68

in fiscal year 2015.



- 51 -

2016 2015

Town's proportion of the net pension liability 0.086% 0.086%

Town's proportionate share of the net pension

liability -$ -$

State's proportionate share of the net pension liability associated with the Town 9,411 8,698 Total 9,411$ 8,698$

Town's covered payroll 3,448$ 3,401$

Town's proportionate share of the net pension liability as a percentage of its covered payroll 0.0% 0.0%

Plan fiduciary net position as a percentage of the total pension liability 59.50% 61.51%

Notes to Schedule:

The Town began to report this schedule when it implemented GASB Statement No. 68 in fiscal year

2015.

The total pension liability reported for each fiscal year is based on a measurement date as of the

end of the prior fiscal year (i.e. the total pension liability reported for 2016 is based on a June 30,

2015 measurement date).

Benefit Changes: There were no changes in benefit terms that affected the measurement of the

total pension liability.

Changes in assumptions: There were no changes in assumptions that affected the measurement of

the total pension liability.


SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (UNAUDITED)

CONNECTICUT STATE TEACHERS' RETIREMENT SYSTEM

(Dollar amounts in thousands)



- 52 -

Actuarial UAAL as a

Actuarial Accrued Unfunded Percentage of

Actuarial Value of Liability (AAL) AAL Funded Covered CoveredValuation Assets Projected Unit (UAAL) Ratio Payroll Payroll

Date (A) Credit (B) (B-A) (A/B) (C) ((B-A)/C)

Other Post-Employment Benefit Plan

July 1, 2008 -$ 461,509$ 461,509$ 0.0% 5,310,272$ 8.7%

July 1, 2011 - 1,967,387 1,967,387 0.0% 5,100,000 38.6%

July 1, 2014 - 1,321,593 1,321,593 0.0% 5,195,582 25.4%


SCHEDULES OF FUNDING PROGRESS (UNAUDITED) LAST THREE ACTUARIAL VALUATIONS


- 53 -

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

GENERAL FUND


Original Final Actual Over (Under)PROPERTY TAXES Property taxes 8,331,400$ 8,331,400$ 8,616,294$ 284,894$ Interest and lien fees collected on taxes 92,000 92,000 105,970 13,970 Property taxes- attorney fees collected 3,000 3,000 8,713 5,713

DMV reporting fees - - 215 215 Total property taxes 8,426,400 8,426,400 8,731,192 304,792

INTERGOVERNMENTAL REVENUES Town aid road 224,492 224,492 224,629 137 Tax relief for elderly- circuit breaker 36,000 36,000 37,192 1,192 Tax loss on State property 9,880 9,880 - (9,880)

Tax relief for veterans 7,000 7,000 6,664 (336) Social security - totally disabled - - 710 710 Judicial-Distribution to Towns - - 1,245 1,245 Telephone access 10,000 10,000 11,427 1,427 Capital improvement- LOCIP 55,431 55,431 55,431 - ECS grant 4,754,383 4,754,383 4,747,745 (6,638) Education transportation 82,878 82,878 72,340 (10,538) Special education 125,000 125,000 1,991 (123,009)

Adult education 13,373 13,373 13,936 563 Mashantucket Pequot grant 36,012 36,012 32,095 (3,917) Document preservation grant - 3,000 3,000 - Library grants 10,000 10,000 - (10,000) OPM public works STEAP grant #2 20,000 20,000 14,378 (5,622) FEMA 26,000 26,000 26,374 374 Municipal revenue sharing 2,022 2,022 2,022 -

Total intergovernmental revenues 5,412,471 5,415,471 5,251,179 (164,292)

LOCAL REVENUES License and permits:

Conveyance tax 20,000 20,000 35,161 15,161 Certifications 3,000 3,000 4,758 1,758 License fees 1,000 1,000 1,943 943 Permits 15,000 15,000 29,311 14,311

MER recording fees - - 983 983 Town clerk office - - 25,038 25,038 Pre-selectman activities 10,000 10,000 2,280 (7,720) Equity distribution - - 7,258 7,258

Total license and permits 49,000 49,000 106,732 57,732 (Continued)

Budgeted Amounts

TOWN OF CANTERBURY, CONNECTICUTSCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL -

BUDGETARY BASIS - GENERAL FUND JUNE 30, 2016


- 54 -


Original Final Actual Over (Under)LOCAL REVENUES (Continued)

Charges for services: Planning and zoning commission 2,500$ 2,500$ 2,205$ (295)$

Planning and zoning surcharge fees 2,500 2,500 2,940 440 Records 20,000 20,000 20,017 17 Map machine 500 500 596 96 Recycling revenue - - 2,182 2,182 Recreation fees 22,000 22,000 13,952 (8,048) Dog fund fees 3,000 3,000 4,890 1,890 Municipal Building Extras 21,700 21,700 - (21,700) Dog fund returns 14,300 14,300 - (14,300)

Town entertainment 2,000 2,000 175 (1,825) PRE Payment (Ambulance Staffing) 89,000 89,000 85,192 (3,808) PRE Payment (Library Capital Imp) 20,000 20,000 - (20,000) PRE Payment (Rec Capital Imp) 15,000 15,000 - (15,000)

Total charges for services 212,500 212,500 132,149 (80,351) Total licenses, fees and permits 261,500 261,500 238,881 (22,619)

INVESTMENT EARNINGS 5,000 5,000 9,426 4,426

MISCELLANEOUS Advertising revenue 1,500 1,500 1,395 (105)

Copier revenue 5,000 5,000 6,351 1,351 Miscellaneous 20,000 20,000 (8,830) (28,830)

Total miscellaneous 26,500 26,500 (1,084) (27,584)

Total revenues 14,131,871 14,134,871 14,229,594 94,723

OTHER FINANCING SOURCES Appropriation of fund balance 542,208 563,208 - (563,208)

Total revenues and other financing sources 14,674,079$ 14,698,079$ 14,229,594$ (468,485)$

TOWN OF CANTERBURY, CONNECTICUTSCHEDULE OF REVENUES AND OTHER FINANCING SOURCES - BUDGET AND ACTUAL -

BUDGETARY BASIS - GENERAL FUND (Continued)FOR THE YEAR ENDED JUNE 30, 2016

Budgeted Amounts


- 55 -

Variance With

Final Budget

Original Final Actual Over (Under)

GENERAL GOVERNMENT

Board of Selectmen:

First Selectman 49,150$ 49,150$ 49,150$ -$

Pre-Selectman's Expense 10,000 10,000 2,280 (7,720)

Selectmen 3,266 3,266 3,266 -

Selectmen 3,266 3,266 3,266 -

Selectmen's administrative assistant 39,135 39,135 38,938 (197)

Selectmen expenses 3,000 3,000 2,163 (837)

Selectmen's recording secretary 936 936 436 (500)

Total Board of Selectmen 108,753 108,753 99,499 (9,254)

Treasurer:

Treasurer 21,455 21,455 21,455 -

Treasurer's expenses 1,400 1,400 731 (669)

Bank service charges 100 100 - (100)

Treasurer's adjustments 100 100 14 (86)

Total Treasurer 23,055 23,055 22,200 (855)

Tax Collector:

Tax Collector 24,540 24,540 24,540 -

Tax Collector's expenses 8,000 8,000 7,016 (984)

Tax refunds 3,500 3,500 2,571 (929)

Assistant Tax Collector 31,915 31,915 31,915 -

Tax collection legal expense 2,500 2,500 1,874 (626)

Total Tax Collector 70,455 70,455 67,916 (2,539)

Assessor:

Assessor 39,280 39,280 39,280 -

Assessor's expenses 5,000 5,000 4,974 (26)

Updated maps 3,000 3,000 3,000 -

Revaluation 14,547 14,547 14,547 -

Total Assessor 61,827 61,827 61,801 (26)

Town Clerk:

Town Clerk 31,217 31,217 31,216 (1)

Assistant Town Clerk 31,915 31,915 31,902 (13)

Town Clerk expenses 3,500 3,500 2,629 (871)

Vital statistics 300 300 294 (6)

Microfilm/lease/verification 6,500 6,500 5,855 (645)

Document preservation grant - 3,000 3,000 -

Total Town Clerk 73,432 76,432 74,896 (1,536)

(Continued)


SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES - BUDGET AND ACTUAL -

BUDGETARY BASIS - GENERAL FUND

JUNE 30, 2016

Budgeted Amounts


- 56 -

Variance With

Final Budget

Original Final Actual Over (Under)GENERAL GOVERNMENT (Continued)

Town Office Operations:

Copier rental/maintenance 4,190$ 4,190$ 3,101$ (1,089)$

Office supplies 1,649 1,649 1,424 (225)

Telephone 7,500 8,500 8,268 (232)

Data processing 31,953 36,953 33,002 (3,951)

Probate Court expense 2,345 2,345 2,344 (1)

Temporary office personnel 5,472 5,472 3,449 (2,023)

Town newsletter 3,600 3,600 3,189 (411)

Electricity 20,000 20,000 17,140 (2,860)

Heating 16,000 16,000 4,832 (11,168)

Maintenance/utility worker 11,934 11,934 11,934 -

Municipal building expense/maintenance 31,214 31,214 29,520 (1,694)

Capital equipment maintenance 3,500 3,500 3,500 -

Town website 500 500 - (500)

Payroll Accounting 5,834 5,834 4,310 (1,524)

Total town office operations 145,691 151,691 126,013 (25,678)

Employee Benefits:

Social Security 68,004 68,004 64,158 (3,846)

Benefits 287,711 287,711 253,603 (34,108)

Unemployment compensation 5,000 5,000 1,809 (3,191)

Total employee benefits 360,715 360,715 319,570 (41,145)

Insurance:

Insurance 38,390 38,390 36,298 (2,092)

CIRMA - Worker's Comp - Town 45,347 45,347 45,335 (12)

Total insurance 83,737 83,737 81,633 (2,104)

Legal Services:

Town counsel 7,000 7,000 315 (6,685)

Town counsel expenses 100 100 - (100)

Legal notice 7,000 7,000 1,651 (5,349)

Town counsel - planning and zoning,

inlands and wetlands 20,000 20,000 13,862 (6,138)

Tax Collector counsel 1,000 1,000 1,000 -

Town Clerk counsel 500 500 - (500)

Board of Finance counsel 1,000 1,000 - (1,000)

Treasurer counsel 1,000 1,000 - (1,000)

Assessor's legal counsel 1,000 1,000 - (1,000)

Total legal services 38,600 38,600 16,828 (21,772)

(Continued)


BUDGETARY BASIS - GENERAL FUND (Continued)


Budgeted Amounts



- 57 -

Variance With

Final Budget

Original Final Actual Over (Under)GENERAL GOVERNMENT (Continued)

Election Expense:

Registrars' salary 8,531$ 8,531$ 8,531$ -$

Registrars' expense 4,540 4,540 4,480 (60)

Election workers' pay 10,500 10,500 4,178 (6,322)

Election expense 10,000 10,000 7,886 (2,114)

Total election expense 33,571 33,571 25,075 (8,496)

Town Boards/Commissions:

Planner/ZEO/Inland Wetland agent 49,980 49,980 49,980 -

Planning and zoning expense 7,000 7,000 7,000 -

Land use secretary 24,346 24,346 23,987 (359)

Planning and zoning engineering services 15,288 15,288 15,288 -

Planning and zoning application advertising 6,000 6,000 2,974 (3,026)

Payment state service charges 8,000 8,000 2,262 (5,738)

Acquifer protection agency 500 500 - (500)

Inland wetland expense 2,500 2,500 1,910 (590)

Inland wetland application advertising 2,000 2,000 240 (1,760)

Eastern Connecticut resource

conservation and development 500 500 500 -

Zoning board of appeals expense 200 200 199 (1)

Zoning board of appeals application advertising 1,000 1,000 1,000 -

Board of Assessment appeals 250 250 100 (150)

Board of Finance expense 400 400 39 (361)

Board of Finance clerk 1,370 1,370 954 (416)

Auditor 18,500 18,500 16,500 (2,000)

Federal audit 4,000 4,000 - (4,000)

Library 28,630 28,630 26,673 (1,957)

Librarian/Director 37,128 37,128 37,128 -

Library support staff 68,606 68,606 67,181 (1,425)

Library grants 10,000 10,000 - (10,000)

Town entertainment expense 2,000 2,000 750 (1,250)

Kinne preserve 400 400 - (400)

Recreation parks and grounds 18,000 18,000 17,242 (758)

Recreation programs 22,000 22,000 11,474 (10,526)

Economic development commission 5,000 5,000 1,551 (3,449)

Total town boards/commissions 333,598 333,598 284,932 (48,666)

Total general government 1,333,434 1,342,434 1,180,363 (162,071)

(Continued)



Budgeted Amounts




- 58 -

Variance With

Final Budget


PUBLIC SAFETY

Public Safety:

Building inspector 25,372$ 25,372$ 25,372$ -$

Building inspector expenses 1,500 1,500 1,484 (16)

EMS Staffing 89,000 89,000 85,192 (3,808)

Fire marshal fee 5,320 5,320 5,215 (105)

Police protection 4,500 4,500 4,497 (3)

Civil defense 3,000 3,000 964 (2,036)

CERT grant 500 500 - (500)

Volunteer fire company 138,463 138,463 138,463 -

QV emergency communications 8,565 8,565 8,564 (1)

Total public safety 276,220 276,220 269,751 (6,469)

Animal Control:

Dog pound expenses 15,288 15,288 15,288 -

Dog damage 447 447 242 (205)

State of Connecticut - payments 4,000 4,000 3,016 (984)

Total animal control 19,735 19,735 18,546 (1,189)

Total public safety 295,955 295,955 288,297 (7,658)

PUBLIC WORKS

Public Works:

Wages- Public Works Director 62,962 62,962 62,962 -

Wages- Director overtime 11,353 11,353 6,243 (5,110)

Wages- Highway crew 186,081 186,081 184,536 (1,545)

Wages- Highway crew overtime 40,414 40,414 16,875 (23,539)

Highway general 100,000 100,000 83,761 (16,239)

Equipment maintenance and fuel 82,895 82,895 65,447 (17,448)

Town garage expense 29,227 29,227 25,193 (4,034)

Street signs 2,950 2,950 2,950 -

Street lights 11,025 11,025 11,025 -

Cemeteries/mowing 552 552 533 (19)

Local capital improvements 55,431 55,431 55,431 -

Town aid roads 224,492 224,492 218,759 (5,733)

Total public works 807,382 807,382 733,715 (73,667)

Refuse Disposal:

Waste and refuse disposal 165,000 180,000 179,972 (28)

OPEM public works STEAP grant #2 20,000 20,000 14,378 (5,622)

Total refuse disposal 185,000 200,000 194,350 (5,650)

Total public works 992,382 1,007,382 928,065 (79,317)

(Continued)


Budgeted Amounts





- 59 -

Variance With

Final Budget


HEALTH AND HUMAN SERVICES

NE District of Health 21,404$ 21,404$ 21,403$ (1)$

Day Kimball home care 2,500 2,500 2,500 -

United services 3,592 3,592 3,592 -

United community and family services 2,990 2,990 2,990 -

Women's Center of NE CT 500 500 500 -

TVCCA 10,627 10,627 9,866 (761)

Senior citizens expense 2,500 2,500 2,278 (222)

Municipal agent to the elderly 7,214 7,214 6,196 (1,018)

Municipal agent expenses 800 800 780 (20)

Municipal agent senior activities 5,000 5,000 5,000 -

Community Kitchens of NE CT 1,000 1,000 1,000 -

NECASSA funds 1,283 1,283 1,283 -

Council of Governments 4,841 4,841 4,841 -

CT conference of municipalities 3,122 3,122 3,122 -

COST 825 825 825 -

Total health and human services 68,198 68,198 66,176 (2,022)

SPECIAL RESERVES

OPEB trust reserve 90,338 90,338 90,338 -

Total special reserves 90,338 90,338 90,338 -

EDUCATION 11,446,790 11,446,790 11,244,160 (202,630)

DEBT SERVICE

Municipal building 71,982 71,982 71,982 -

Total expenditures 14,299,079 14,323,079 13,869,381 (453,698)

OTHER FINANCING USES

Transfers out:

Capital and nonrecurring fund 375,000 375,000 375,000 -

Total expenditures and other financing uses 14,674,079$ 14,698,079$ 14,244,381$ (453,698)$

Budgeted Amounts



BUDGETARY BASIS - GENERAL FUND (Concluded)



- 60 -

Grand Uncollected Transfers Adjusted Uncollected

List Taxes Current Lawful Corrections to Taxes Collections Taxes

Year July 1, 2015 Year Levy Additions Deletions Suspense Collectible Taxes Interest Liens June 30, 2016

2014 -$ 8,561,475$ 9,762$ 19,305$ 4,156$ 8,547,776$ 8,449,483$ 35,724$ 7,784$ 98,293$

2013 149,727 - 1,146 1,631 6,531 142,711 107,322 21,510 3,658 35,389

2012 62,238 - 1,013 - 7,665 55,586 41,181 12,413 702 14,405

2011 26,996 - - - 4,689 22,307 14,144 6,225 251 8,163

2010 18,397 - - - 3,084 15,313 10,801 4,064 180 4,512

2009 13,474 - - - 1,332 12,142 7,631 4,007 108 4,511

2008 10,417 - - - 342 10,075 8,039 2,461 102 2,036

2007 7,393 - - - 131 7,262 5,216 995 54 2,046

2006 7,114 - - - - 7,114 5,075 924 48 2,039

2005 6,292 - - - - 6,292 4,868 861 54 1,424

2004 330 - - - - 330 330 (400) 24 - 302,378$ 8,561,475$ 11,921$ 20,936$ 27,930$ 8,826,908$ 8,654,090$ 88,784$ 12,965$ 172,818$


SCHEDULE OF PROPERTY TAXES LEVIED, COLLECTED AND OUTSTANDING



- 61 -

Total cash collections for the year endedJune 30, 2016:

Taxes 8,654,090$ Interest and lien fees 101,749

Total 8,755,839

Reimbursement for revenue loss:

Tax relief for elderly (CGS 12-129d) 37,192 Base 8,793,031$

General Urban Pension

Purposes Schools Sewers Renewal Deficit

Debt limitation:2-1/4 times base 19,784,320$ -$ -$ -$ -$

4-1/2 times base - 39,568,640 - - - 3-3/4 times base - - 32,973,866 - -

3-1/4 times base - - - 28,577,351 -

3 times base - - - - 26,379,093

Total debt limitation 19,784,320 39,568,640 32,973,866 28,577,351 26,379,093

Indebtedness:

Note payable 330,000 - - - -

Total indebtedness 330,000 - - - -

Debt limitation in excess of outstanding and authorized debt 19,454,320$ 39,568,640$ 32,973,866$ 28,577,351$ 26,379,093$

Total capacity of borrowing (7 times base) 61,551,217$

Total present indebtedness 330,000 Margin for additional borrowing 61,221,217$


SCHEDULE OF DEBT LIMITATION

CONNECTICUT GENERAL STATUTES, SECTION 7-374(b)

JUNE 30, 2016


- 62 -

NONMAJOR GOVERNMENTAL FUNDS

Education Child Nonrecurring Total SpecialSpecial and Nutrition Historical Open Space Small Cities Municipal RevenueGrant Funds Fund Fund Fund Fund Extras Fund Funds

Cash and cash equivalents -$ 2,972$ -$ -$ 9,610$ 105$ 12,687$ Investments - - - - - - - Receivables:

Intergovernmental 1,255 8,294 - - - - 9,549 Loans - - - - 714,813 - 714,813 Other - - - - - - -

Due from other funds 92,013 - 8,671 154,458 - - 255,142 Inventories - 3,636 - - - - 3,636

Total assets 93,268$ 14,902$ 8,671$ 154,458$ 724,423$ 105$ 995,827$

LIABILITIESAccounts payable 5,125$ 9,521$ -$ -$ -$ -$ 14,646$ Salaries and benefits payable 6,670 1,493 - - - - 8,163 Due to other funds - 7,753 - - - - 7,753 Unearned revenue 81,473 - - - - - 81,473

Total liabilities 93,268 18,767 - - - - 112,035

FUND BALANCESNonspendable:

Inventories - 3,636 - - - - 3,636 Loans receivable - - - - 714,813 - 714,813 Permanent funds principal - - - - - - -

Restricted: Heath and human services - - - - 9,610 - 9,610 Special reserves - external - - - - - 105 105

Committed: Other governmental fund purposes - - 8,671 154,458 - - 163,129

Unassigned - (7,501) - - - - (7,501) Total fund balances - (3,865) 8,671 154,458 724,423 105 883,792 Total liabilities and

fund balances 93,268$ 14,902$ 8,671$ 154,458$ 724,423$ 105$ 995,827$

(Continued)

ASSETS

TOWN OF CANTERBURY, CONNECTICUTCOMBINING BALANCE SHEET

JUNE 30, 2016

Nonmajor Special Revenue Funds



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Tyler Veteran's Total Total Nonmajor

Shepard Smith/Horton Bradford Smith Memorial Memorial Permanent Governmental

Fund Fund Fund Fund Library Fund Fund Funds Funds

Cash and cash equivalents 187$ 1,365$ 526$ 99$ -$ 4,689$ 6,866$ 19,553$

Investments - - - - 4,096 - 4,096 4,096

Receivables:

Intergovernmental - - - - - - - 9,549

Loans - - - - - - - 714,813

Other - - - - - 30 30 30

Due from other funds - - - - - - - 255,142

Inventories - - - - - - - 3,636 Total assets 187$ 1,365$ 526$ 99$ 4,096$ 4,719$ 10,992$ 1,006,819$

LIABILITIES

Accounts payable -$ -$ -$ -$ -$ -$ -$ 14,646$

Salaries and benefits payable - - - - - - - 8,163

Due to other funds - - - - - 1,348 1,348 9,101

Unearned revenue - - - - - - - 81,473

Total liabilities - - - - - 1,348 1,348 113,383

FUND BALANCES

Nonspendable:

Inventories - - - - - - - 3,636

Loans receivable - - - - - - - 714,813

Permanent funds principal - 321 - - 4,000 - 4,321 4,321

Restricted:

Heath and human services - - - - - - - 9,610

Special reserves - external 187 1,044 526 99 96 3,371 5,323 5,428

Committed:

Other governmental fund purposes - - - - - - - 163,129

Unassigned - - - - - - - (7,501)

Total fund balances 187 1,365 526 99 4,096 3,371 9,644 893,436

Total liabilities andfund balances 187$ 1,365$ 526$ 99$ 4,096$ 4,719$ 10,992$ 1,006,819$

Cemetery Funds

ASSETS

Nonmajor Permanent Funds


COMBINING BALANCE SHEET

JUNE 30, 2016

NONMAJOR GOVERNMENTAL FUNDS (Continued)


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Education Child Nonrecurring Total SpecialSpecial and Nutrition Historical Open Space Small Cities Municipal RevenueGrant Funds Fund Fund Fund Fund Extras Fund Funds

REVENUESIntergovernmental 499,462$ 68,696$ -$ -$ 57,800$ -$ 625,958$ Charges for services - 62,152 - 12,658 72,981 - 147,791 Investment earnings - - 21 - - - 21

Total revenues 499,462 130,848 21 12,658 130,781 - 773,770 EXPENDITURES

Current:Health and human services - - - 3,937 3,800 - 7,737 Education 499,462 136,791 - - - - 636,253

Total expenditures 499,462 136,791 - 3,937 3,800 - 643,990

Net changes in fund balances - (5,943) 21 8,721 126,981 - 129,780

Fund balances - beginning - 2,078 8,650 145,737 597,442 105 754,012 Fund balances - ending -$ (3,865)$ 8,671$ 154,458$ 724,423$ 105$ 883,792$

(Continued)

TOWN OF CANTERBURY, CONNECTICUTCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES


Nonmajor Special Revenue Funds



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Tyler Veteran's Total Total NonmajorShepard Smith/Horton Bradford Smith Memorial Memorial Permanent Governmental

Fund Fund Fund Fund Library Fund Fund Funds FundsREVENUES

Intergovernmental -$ -$ -$ -$ -$ -$ -$ 625,958$ Charges for services - - - - 94 - 94 147,885 Investment earnings - 9 - - - - 9 30

Total revenues - 9 - - 94 - 103 773,873 EXPENDITURES

Current:Health and human services 40 - 80 - - 180 300 8,037 Education - - - - - - - 636,253

Total expenditures 40 - 80 - - 180 300 644,290 Net changes in fund balances (40) 9 (80) - 94 (180) (197) 129,583

Fund balances - beginning 227 1,356 606 99 4,002 3,551 9,841 763,853 Fund balances - ending 187$ 1,365$ 526$ 99$ 4,096$ 3,371$ 9,644$ 893,436$

Cemetery FundsNonmajor Permanent Funds

TOWN OF CANTERBURY, CONNECTICUTCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

FOR THE YEAR ENDED JUNE 30, 2016NONMAJOR GOVERNMENTAL FUNDS (Continued)


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FIDUCIARY FUNDS

Canterbury

Helen Elementary Performance Total

Baldwin Student Activity Bond Agency

School Fund Fund Funds

ASSETS

Cash and cash equivalents 11,042$ 16,308$ 159,949$ 187,299$

Other - - 84,761 84,761 Total assets 11,042$ 16,308$ 244,710$ 272,060$

LIABILITIES

Due to others 11,042$ 16,308$ 244,710$ 272,060$ Total liabilities 11,042$ 16,308$ 244,710$ 272,060$


COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

JUNE 30, 2016

AGNECY FUNDS


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Balance, Balance,

July 1, 2015 Additions Deletions June 30, 2016

Helen Baldwin School

Assets

Cash and cash equivalents 15,676$ 58,729$ 63,363$ 11,042$ Total assets 15,676$ 58,729$ 63,363$ 11,042$

Liabilities


Canterbury Elementary Student Activity Fund

Assets

Cash and cash equivalents 17,940$ 8,114$ 9,746$ 16,308$ Total assets 17,940$ 8,114$ 9,746$ 16,308$

Liabilities


Canterbury Elementary Teacher Activity Fund

Assets

Cash and cash equivalents 286$ -$ 286$ -$ Total assets 286$ -$ 286$ -$

Liabilities

Due to others 286$ -$ 286$ -$ Total liabilities 286$ -$ 286$ -$

Performance Bond Fund

Assets

Cash and cash equivalents 159,749$ 1,000$ 800$ 159,949$

Other 82,839 1,922 - 84,761 Total assets 242,588$ 2,922$ 800$ 244,710$

Liabilities

Due to others 242,588$ 2,922$ 800$ 244,710$ Total liabilities 242,588$ 2,922$ 800$ 244,710$

Total Agency Funds

Assets

Cash and cash equivalents 193,651$ 67,843$ 74,195$ 187,299$

Other 82,839 1,922 - 84,761 Total assets 276,490$ 69,765$ 74,195$ 272,060$

Liabilities



COMBINING STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES

AGENCY FUNDS

JUNE 30, 2016


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