HomeMy WebLinkAboutTown of Acton - Public Financial ReportABOUT THE “PAFR”
As part of Acton’s commitment to keep residents
informed about how tax dollars are being invested,
the Town is pleased to present this Popular Annual
Financial Report (PAFR).
This PAFR presents a summary of financial
information from the following sources: FY21
and FY20 Annual Comprehensive Financial
Reports, Annual Town Budgets, Middlesex County
Retirement System Actuarial Valuation, Acton OPEB
Actuarial Valuation, Public Employee Retirement
Administration Commission, and the Commonwealth
of Massachusetts Division of Local Services.
The intent is the information presented in this PAFR
will allow the reader to better understand the Town’s
financial health.
TOWN OF ACTON | POPULAR ANNUAL FINANCIAL REPORT | ACTONMA.GOV
TOWN OF ACTON, MASSACHUSETTSTOWN OF ACTON, MASSACHUSETTS
POPULAR ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDING JUNE 30, 2021
ABOUT THE TOWN
The Town of Acton, incorporated in 1735, is located in
Middlesex County approximately 21 miles northwest
of Boston. With over 24,000 residents, Acton is
primarily a bedroom community, with more than ninety
percent of real estate tax generated from residential
properties. Acton is known for its rich history,
recreational and conservation assets, and high-quality
municipal services, highlighted by K-12 education
provided by the Acton-Boxborough Regional School
District and Minuteman Regional Vocational Technical
High School.
An Open Town Meeting, in which every Acton
registered voter may participate, serves as the
Town’s legislative body. An elected Select Board
establishes policy to be implemented by an appointed
Town Manager, who directs the Town’s day-to-day
operations. School Committees oversee the two
school districts, which are managed by School
Superintendents.
FY21 GENERAL FUND REVENUES & EXPENDITURES
(STATED ON A GAAP BASIS)
Revenues: Property taxes are the single largest
revenue source for Acton, comprising 92% of annual
general fund revenue. Motor Vehicle Excise Tax and
State Aid account for 6% of revenues; and Local
Receipts (closely tied to economic activity) and Other
comprise the remaining 2% of revenue.
Expenditures: A large majority (66%) of General
Fund expenditures goes to the Schools (Acton-
Boxborough Regional School District and Minuteman
Regional Vocational Technical High School). Services
provided by the Town Government make up 24%
of expenditures; Employee Benefits 8%; and Debt
Service 2%.
Property Tax, $95,706,488
Motor Vehicle Excise,
$3,572,604
State Aid, $2,558,014
Local Receipts, $1,381,367
Other, $267,076
Town Government, $23,655,031
Education, $67,317,032
Employee Benefits, $8,578,259
Debt Service, $2,162,209
GENERAL FUND FINANCIAL STATEMENTS
• Assets (resources owned) =
Liabilities (amounts owed) +
Deferred Inflows (resources to be recognized in
the future) +
Fund Balances (reserves).
• Fund balances have specific restrictions:
Committed (by Town Meeting, i.e. stabilization
funds), Assigned (i.e. Town Manager-approved
purchase orders), and Unassigned (available for
appropriation).
• Committed funds balances contain self-imposed
constraints on spending. Most of the committed
funds are warrant articles or continuing
appropriations authorized by Town Meeting.
In FY21, committed fund balances included
funding for Kelley’s Corner improvements,
Commuter Lot maintenance and modifications,
railroad crossing safety improvements, and
Sustainability initatives. FY21 committed funds
were approximately 7% lower than FY20.
Balance Sheet
FY21 FY20
Amount
Change
Percent
ChangeAssets
Cash and Short-Term Investments $12,479,103 $12,282,965 $196,138 1.60%
Receivables $3,816,569 $4,885,179 $(1,068,610)-21.87%
Other $1,146,823 $828,846 $317,977 38.36%
Total Assets $17,442,495 $17,996,990 $(554,495)-3.08%
Liabilities
Warrants Payable $314,642 $152,351 $162,291 106.52%
Accrued Liabilities $537,665 $698,444 $(160,779)-23.02%
Other $110,600 $175,347 $(64,747)-36.93%
Total Liabilities $962,907 $1,026,142 $(63,235)-6.16%
Deferred Inflows
Taxes Paid in Advance $31,482 $48,208 $(16,726)-34.70%
Unavailable Revenue $4,342,779 $5,599,354 $(1,256,575)-22.44%
Total Deferred Inflows $4,374,261 $5,647,562 $(1,273,301)-22.55%
Fund Balances
Committed $1,827,706 $1,958,118 $(130,412)-6.66%
Assigned $1,765,882 $2,432,444 $(666,562)-27.40%
Unassigned $8,511,739 $6,932,724 $1,579,015 22.78%
Total Fund Balances $12,105,327 $11,323,286 $782,041 6.91%
Total Liabilities, Deferred Inflows & Fund Balances $17,442,495 $17,996,990 $(554,495)-3.08%
Statement of Revenues, Expenditures and Changes in Fund Balance
FY21 FY20
Amount
Change
Percent
Change
Revenues
Property Tax $95,706,488 $88,367,433 $7,339,055 8.31%
Motor Vehicle Excise $3,572,604 $3,624,411 $(51,807)-1.43%
State Aid $2,558,014 $2,622,688 $(64,674)-2.47%
Local Receipts $1,381,367 $1,401,969 $(20,602)-1.47%
Other $267,076 $454,491 $(187,415)-41.24%
Total Revenue $103,485,549 $96,470,992 $7,014,557 7.27%
Expenditures
Town Government $23,655,031 $22,960,311 $694,720 3.03%
Education $67,317,032 $62,690,935 $4,626,097 7.38%
Employee Benefits $8,578,259 $7,996,435 $581,824 7.28%
State and County Charges $330,123 $322,515 $7,608 2.36%
Debt Service $2,162,209 $2,257,200 $(94,991)-4.21%
Total Expenditures $102,042,654 $96,227,396 $5,815,258 6.04%
Other Financing Sources (Uses)
Transfers In $315,207 $109,900 $205,307 186.81%
Transfers Out $(976,061) $(678,167) $(297,894)43.93%
Total Other Financing $(660,854) $(568,267) $(92,587)16.29%
Changes in Fund Balance $782,041 $(324,671) $1,106,712 -340.87%
Fund Balance
Beginning of Year $11,323,286 $11,647,957 $(324,671)-2.79%
End of Year $12,105,327 $11,323,286 $782,041 6.91%
• Total revenues increased by $7.0 million from
FY20 to FY21.
• The increase in property tax revenue was $7.3
million or 8.31%. Most of this new property tax
revenue is attributed to debt exclusions for the
new ABRSD Boardwalk Campus and North Acton
Fire Station.
• FY21 “Other” revenues which mainly include
revenues from Nursing Services, Veterans Aid,
as well as Investment Income was down 41%
from FY20. The Town recouped over $80,000 in
miscellaneous revenue by disposing of surplus
highway equipment.
• Total Revenue exceeded Total Expenditures by
$1.4 million, which is approximately $1.2 million
over FY20.
• Fund Balance remains strong at $12.1 million,
nearly 12% of total expenditures. Fund Balance is
one of the reasons for Acton’s AAA credit rating.
BALANCE SHEET
SUMMARY
STATEMENT OF REV., EXP., &
CHANGES IN FUND BAL. SUMMARY
This information is a condensed version of the Town’s
Annual Comprehensive Financial Reports, which are
accessible in full on the Town website.
MAJOR LIABILITIES
• The Town borrows money to pay for various capital
projects, including the construction of new schools,
fire stations, renovations of exisiting facilities, and
purchase of heavy equipment.
• As of June 30, 2021, approximately 60% of current
general obligation bonds will be repaid within the
next 6 years.
• The chart to the right shows the future repayment
of debt that has been issued as of June 30, 2021.
• Source: FY21 Annual Comprehensive Financial Report,
Town Manager’s FY22 Recommended Budget
*Includes educational debt service
DEBT
Liabilities are committments that the Town has made and will eventually have to pay. The three major liabilities
for communities are generally: Debt, Pension, and Other Post-Employment Benefits (OPEB). These liabilities are
important to monitor as they can place a burden on future taxpayers if not addressed with a responsible funding plan.
Accounting standards also are beginning to require municipalities to fully account for bonds payable, net pension
liability, and net OPEB liability. Metrics are benchmarked against comparable communities located in Middlesex
County with an Open Town Meeting form of government and a population between 18,000 and 30,000.
• Acton is a member of the Middlesex County
Retirement System.
• Acton’s pension plan is 48.10% funded as of December
31, 2020 and is projected to be fully funded by 2037.
• As of December 31, 2020, the Actuarial Value of Assets
is $53 million.
• The Actuarial Accrued Liability is $108.5 million with
an Unfunded Accrued Liability (the difference between
the pension assets and liabilities) of $55.5 million.
• Source: Pension Actuarial Valuation (December 31, 2020),
MA DOR Division of Local Services Databank
* Acton’s ratio excludes educational pension liabilities
PENSION
• Other Post-Employment Benefits (OPEB) generally
represents the Town’s liability for the cost of healthcare
benefits received or to be received by the Town’s
retireees.
• To comply with new accounting standards, the Town
established an OPEB Trust Fund in 2015.
• The Plan is 33.4% funded as of June 30, 2020 and is
projected to be fully funded by 2034.
• As of 12/31/20, the Trust Fund assets are $7.6 million.
• The Actuarial Accrued Liability is $22.9 million with an
Unfunded Actuarial Accrued Liability of $15.3 million.
• Source: OPEB Actuarial Valuation (December 31, 2020),
MA DOR Division of Local Services Databank
* Acton’s ratio excludes educational OPEB liabilities
OPEB
SPENDING AND TAXES
• Total per capita spending is determined by using
the most recent numbers posted to the Mass.
Department of Revenue Division of Local Services
(DLS) databank reports.
• Population and expenditure numbers are based on
Fiscal Year 2021.
• The chart to the right demonstrates Acton ($4,457)
ranks in a normal range of the comparison group
for per capita spending.
• Source: MA DOR Division of Local Services Databank
TOTAL PER CAPITA SPENDING
Having the proper levels of spending and taxes is crucial for the functioning of a well-run municipality that ensures
sustainability of operations while being responsive to community needs. The following information shows how Acton
compares with neighboring communities in terms of total per capita spending, average residential tax bill, and annual
budget growth. Metrics are benchmarked against comparable communities located in Middlesex County with an Open
Town Meeting form of government and a population between 18,000 and 30,000.
• The average single-family tax bill metric is often used
to measure budgetary impact on taxpayers.
• The chart to the right demonstrates Acton’s average
single family tax bill ($12,500) ranks in the median of
the comparison group.
• Source: MA DOR Division of Local Services Databank
AVERAGE SINGLE FAMILY TAX BILL
• The annual growth of a municipal budget can vary
depending on service levels, new projects and
initiatives, and community priorities.
• The 10-year compound annual budget growth rate can
be used to measure a community’s spending over a
longer period of time rather than year-over-year.
• The chart to the right demonstrates Acton’s 10-year
annual budget growth tax rate (2.84%) is lower than
most of the comparable communities.
• Source: MA DOR Division of Local Services Databank
ANNUAL BUDGET GROWTH