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Home My WebLink AboutCity of Waltham - Public Financial Report City of Waltham, Massachusetts ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2022 E - �� -..,� - �_ - - ,n.�: -- �. -� - - - ..r,� .�:.�.�''+�a'� Q' _g � �- �.� - _ �. �. - - �_-.,''� � �,,�, a_��. - " , � >_.:'., . :�- - ..� �� ,�� - .^d: .: . . .. � __ ..� _�-. ' x. F-��.; -�_ -- - - ..; " � :tr �- ±=! � , 1� '•�, { �,.�, � ;! y� �.. . �1 �.!. YL{��. �` � ,_r �_ �.t - R:, � . � . r� .� . �(- � - . . -%,. � : _ y e �lI7 b. .r � t , s +. ;+.t $� , � , �'. �J -,.. ' .�' � - �- .��5 i . r �� . '�:@" .!i- '� Z n �:� ,�i ' . .l <. �' . , c _. �Y� ��`.';j. �_�a" "�`€k j��`��. �.:A� Ji�+"kx� s;� 'k- l.a. " t 4.a-r� 1 a � p,l �. -.� �t `�. „w. . . 7 ;. '1� ,�aY , �.� i.- _- t. "�".�' ;'' ' .�.� «;; "�` ,j .�- �, �� .; .,{ _y� � � t �' � ;� �'� .� " ,. ."' 4 � ar�; . j ��' ��,.�s" yy •'�' - +� `,��_ -�. ,'��w�; �,Y'Y �-.i i ` { .� � . /� C y� `�- _ f�':.'.�:� � �.+�. . 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Aerial View of Mount Feake Cemetery CITY OF WALTHAM, MASSACHUSETTS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Year Ended June 30, 2022 o�P�� A TOH' pQ`e , �%� G �' � ,i �cP 2 iiiiinii►i � � � �umi i� • WA LT HAM • _ .. � � � o� , , , „ �m`� , „ , , ,,,, „ , ,�„�,,,, .o� � � �� ,� ,� � �� y Rq T E D A G�� Prepared by: City Auditor's Office CITY OF WALTHAM,MASSACHUSETTS ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2022 TABLE OF CONTENTS IntroductorySection.................................................................................................................................................................1 Letterof Transmittal.............................................................................................................................................................2 OrganizationalChart............................................................................................................................................................7 PrincipalCity Officials.........................................................................................................................................................8 Certificateof Achievement..................................................................................................................................................9 FinancialSection.....................................................................................................................................................................10 IndependentAuditors' Report..........................................................................................................................................11 Management's Discussion and Analysis.........................................................................................................................14 Basic Financial Statements Statementof Net Position..............................................................................................................................................26 Statementof Activities...................................................................................................................................................27 Governmental Funds-Balance Sheet..........................................................................................................................29 Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to the Statement of Net Position.............................................................................................................................................................................30 Governmental Funds-Statement of Revenues,Expenditures and Changes in Fund Balance...........................31 Reconciliation of the Statement of Revenues,Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities............................................................................................................................32 Proprietary Funds-Statement of Fund Net Position................................................................................................33 Proprietary Funds-Statement of Revenues,Expenses and Changes in Fund Net Position...............................34 Proprietary Funds-Statement of Cash Flows............................................................................................................35 Fiduciary Funds-Statement of Fiduciary Net Position............................................................................................36 Fiduciary Funds-Statement of Changes in Fiduciary Net Position.......................................................................37 Notes to Basic Financial Statements.............................................................................................................................38 Required Supplementary Information.................................................................................................................................79 General Fund-Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget and Actual.........80 Community Preservation Fund-Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget andActual............................................................................................................................................................................94 PensionPlan Schedules......................................................................................................................................................96 Schedule of Changes in Employers'Net Pension Liability and Related Ratios (System).....................................96 Schedule of Employer Contributions (System)...........................................................................................................97 Schedule of Investment Returns (System)...................................................................................................................97 Schedule of City's Proportionate Share of the Net Pension Liability......................................................................98 Schedule of City's Contributions..................................................................................................................................98 Schedule of Special Funding Amounts of the Net Pension Liability(MTRS)........................................................99 Other Postemployment Benefits Schedule....................................................................................................................100 Schedule of Changes in the City's Total OPEB Liability and Related Ratios.......................................................100 Notes to Required Supplementary Information...............................................................................................................101 Combining and Individual Fund Statements...................................................................................................................103 Nonmajor Governmental Funds.....................................................................................................................................104 Narrative........................................................................................................................................................................104 CombiningBalance Sheet............................................................................................................................................106 Combining Statement of Revenues,Expenditures and Changes in Fund Balance..............................................110 StatisticalSection...................................................................................................................................................................115 Tableof Contents..............................................................................................................................................................116 NetPosition by Component............................................................................................................................................117 Changesin Net Position...................................................................................................................................................118 Fund Balances,Governmental Funds............................................................................................................................119 Changes in Fund Balances,Governmental Funds........................................................................................................120 Assessed Value and Actual Value of Taxable Property..............................................................................................121 PrincipalTaxpayers..........................................................................................................................................................122 Property Tax Levies and Collections..............................................................................................................................123 Ratios of Outstanding Debt and General Bonded Debt..............................................................................................124 Direct and Overlapping Governmental Activities Debt..............................................................................................125 Computationof Legal Debt Margin...............................................................................................................................126 Principal Employers (Excluding City)...........................................................................................................................127 Demographic and Economic Statistics...........................................................................................................................128 Full-Time Equivalent City Employees by Function.....................................................................................................129 Operating Indicators by Function/Program.................................................................................................................130 Capital Assets Expenditures by Purpose.......................................................................................................................131 Introductory Section �, , {d ��:. �� r��f F r a �•' i . ��, i 'E�x� 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' i�� . � .� - � . . . � .. .. .. ' . . . _ . . .- _ ' _ . . _ .� 5 � _ � , 2*1 ' -"� r ,Y;3� .,�F.f,�k, t >, ;. .:�� ? L�'�.; � - ' `.�.... '�.` ..�u :z- Y' +�• �N� AJ`'+'Z,'-%! Wayside Rail Trail City of Walthain,Massachusetts 1 Annual Comprehensive Financial Report PQo�P Tow� CITY OF WALTHAM _ -��SE�.A m Commonwealth of Massachusetts _ .... .... •WALTHAM� �9 ---� m� 610 Main Street ,oq....:: ' _"';�y ��E°"`� Waltham,Massachusetts 02452-5580 Paul G. Centofanti (781) 314-3220 City Auditor Email:pcentofanti@city.waltham.ma.us Letter of Transmittal January 27, 2023 To the Honorable Mayor, Members of the City Council and Citizens of the City of Waltham, Massachusetts: At the close of each fiscal year, state law requires the City of Waltham to publish a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America(GAAP), and that are audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement,we hereby issue the Annual Comprehensive Financial Report(ACFR) of the City of Waltham,Massachusetts, for the fiscal year ended June 30, 2022 for your review. This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss,theft or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits,the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The City of Waltham's financial statements have been audited by CliftonLarsonAllen, LLP a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2022 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded,based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the �scal year ended June 30, 2022 are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Ciry was part of a broader, federally mandated"Single Audit"designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Waltham's separately issued Single Audit Report. City of Walthain,Massachusetts 2 Annual Comprehensive Financial Report GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of the Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement that analysis and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the City Settled in 1630 and incorporated as a Town in 1738, Waltham was chartered as a City in 1884. Located in Middlesex County, 9 miles west of Boston,the City is bordered by the Towns of Belmont, Lexington, Lincoln, Newton,Watertown and Weston. The City encompasses approximately 12.7 square miles and, according to the 2020 federal census, has a population of 65,218. Subject to local legislative decisions made by a fifteen(15)member City Council elected for two-year terms,the affairs of the City are generally administered by a Mayor, who is elected for a four-year term on an at-large basis. As chief executive officer, the Mayor appoints, subject to approval by the City Council, all the other principal executive officers of the City other than the City Clerk. The Mayor is responsible for the administration of the fiscal and other affairs of the City with the exception of local school affairs which are administered by the School Committee. The City Council annually elects its own President, who presides over all Council meetings and appoints all standing committees of the Council. Actions of the Council are generally subject to veto by the Mayor,but such action may be overridden by a two-thirds vote of the Council members. The School Committee, whose members are elected for four-year terms,has exclusive jurisdiction over the City's public school system and appoints a Superintendent to administer the day-to-day affairs of the system. The City provides general governmental services for the territory within its boundaries,including police and fire protection, curbside collection and disposal of trash and recyclable materials,public education in grades kindergarten through twelve,water and sewer services, street maintenance,parks and recreation. The Massachusetts Bay Transportation Authority provides bus coverage throughout the City with connections to the metropolitan Boston area as well as commuter rail service between the City and Boston. The Massachusetts Water Resources Authority provides water and sewerage disposal services to the City. The Waltham Housing Authority, a separate legal entity,provides public housing for eligible low-income families, the elderly and the handicapped. Within 170 days after the annual arganization of the City government(which is ordinarily in early January), the Mayor is required to submit a budget of proposed expenditures for the fiscal year beginning on the next July 1. The City Council may make appropriations for the recommended purposes and may reduce or reject any item. Without a recommendation of the Mayor, the Council may not make any appropriation for a purpose not included in the proposed budget, except by a two-thirds vote in the case of the failure of the Mayor to recommend an appropriation for such a purpose within 7 days after a request from the Council. The Council may not increase any item without the recommendation of the Mayor(except as provided by legislation,recommendation of the school committee or regional district school committee and by two-thirds vote of the Council,provided that such increase does not cause the total annual budget to exceed the property tax limitations). If the Council fails to act on any item of the proposed budget within 45 days, that item takes effect. City of Walthain,Massachusetts 3 Annual Comprehensive Financial Report If the Mayor does not make a timely budget submission,provision is made for preparation of a budget by the Council.Provision is also made for supplementary appropriations upon recommendation of the Mayor. Water and sewer department expenditures are included in the budgets adopted by City Council. The City manages its risk through a combination of self-insured programs and premium based coverage with commercial insurance carriers. Health care and workers compensation are self-insured plans. The City is exposed to various risks of loss related to general liability,property and casualty, workers' compensation and unemployment compensation claims. Buildings and property are insured against�re, theft and natural disaster to the extent that losses exceed the City's deductible per incident. These deductibles vary by rype of incident,none of which exceed$25,000. Financial Planning and Policies Financial planning and policy goals are broad, fairly timeless statements of the financial position the City of Waltham seeks to attain. The financial goals for the City of Waltham are: ■ To provide full value to the residents and commercial owners of Waltham for each tax dollar by delivering quality services efficiently and on a cost-effective basis. ■ To preserve the quality of life of the City's citizens by providing and maintaining adequate financial resources necessary to sustain a sufficient level of municipal services and to respond to changes in the economy or other changes that may affect our financial status. ■ To improve or at a minimum maintain our AA+and Aal bond rating. ■ To advise Ciry policy makers on management and financial decisions which have a significant fiscal impact. ■ To utilize operating principles that minimizes the cost of government and financial risk. ■ To develop fair and balanced revenue approaches that provide for adequate funding for desired programs. ■ To maintain appropriate financial capacity for current and future needs. ■ To promote sound financial management by providing accurate and timely information on the City's financial condition. ■ To ensure the legal use of financial resources through an effective system of internal control. To achieve these goals,the City of Waltham has adopted formal policies for the following areas: ■ Operating Budget Policy ■ Revenue Policy ■ Expenditure/Expense Policy ■ Reserve Policy ■ Capital Budgeting and Planning Policy ■ Debt Management Policy ■ Protection of Credit Rating Policy Factors Affecting Economic Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Waltham operates. The City is a mature residential community with significant commercial and industrial activity, a good part of which is in the technology,bio-tech,pharmaceutical, communication, education, consulting services and manufacturing, is concentrated along Interstate 95 (Route 128). Retail trade is concentrated in the City's downtown central business district. Several nationally known companies have chosen to locate in the City. In addition to its commercial base,the City is home to both Bentley University and Brandeis University. City of Walthain,Massachusetts 4 Annual Comprehensive Financial Report The City continues to manage its financial affairs in a prudent, fiscally responsible manner as is demonstrated by its excellent Moody's bond rating of Aal and Standard&Poor's bond rating of AA+. The City's financial actions are generally guided by long range planning tools such as a five-year Capital Improvement Program; prioritizing spending plans and identifying discretionary spending;pay-as-you go financing strategies; long-term planning for all liabilities including pension and insurance reserves and municipal best practices,which are reviewed annually at the beginning of each budget development cycle. Additionally, the City has enhanced its revenue flexibility by establishing enterprise funds and many other user-supported programs. This has allowed the City to shift the operating costs of certain services to the users so that little or no tax support subsidizes these services. The City maintains a strong industrial and commercial tax base. In FY2022, the combined assessed value of these properties represented 33.6%of the total City value. In terms of tax burden, the same industrial and commercial tax base bore 58.7%of the FY2022 tax levy. The appreciation of residential values, while keeping properry taxes comparatively low, serves as an attraction to the Ciry. The City's close proximity to Boston and major highways, its quality of life,the affordable delivery of services to its residents and dedication to public education personifies the community's popular reputation. Quarterly tax billings and excellent collection rates have eliminated the need to borrow on a short-term basis to maintain cash flow. The City's investment options are governed by Massachusetts General Laws and focus on safety, liquidity and yield. At the State level,the economic outlook for the Commonwealth has been generally stable. It is anticipated that state aid will see sustainable increases in the following years. Optimistically, this will place the City in a position of having a lesser degree of reliance on property taxes to cover the increasing cost of providing services. The City is currently managing approximately$235.7 million in long-term debt. The long-term indebtedness consists of$218.7 million of general obligation bonds for the general fund and$17.0 million which is self- supporting through enterprise fund revenues. During June 2022,the City issued$15 million of short-term notes maturing in Apri12023; $14.295 million for the general fund and$705,000 for the self-supporting enterprise funds. Under the school building assistance program,the City built new and/or renovated two middle schools and six elementary schools. The City was approved for a state grant representing 90%reimbursement of eligible costs incurred in the construction of six elementary and two middle school facilities and received$124.8 million of such assistance beginning in FY2005 and ending with the final payment in FY2010. The City has outstanding bonds totaling $13.4 million with maturity dates of 2025 and 2028 that provided the remainder of the cost for the eight schools building project. During September 2019, the City authorized$374.6 million for the construction of a new Waltham High School. Under the school building assistance program,the City has been approved for a state grant estimated at$1223 million, representing 65.71%reimbursement of eligible costs incurred for the project. In October 2020,the City issued$144 million of general obligation bonds towards the project. The City expects to issue an estimated additional$100 million of general obligation bonds for the remainder of its share of the project cost during FY2024. The City has authorized and unissued debt for the new high school project, water/sewer infrastructure improvements, street improvements,recreation land development and other various projects totaling$221.0 million as of June 30, 2022. The authorized and unissued debt includes $4.6 million for water/sewer infrastructure improvements. City of Walthain,Massachusetts 5 Annual Comprehensive Financial Report The City of Waltham contributes to the Waltham Contributory Retirement System(the System), a cost sharing, defined benefit pension plan administered by the Waltham Contributory Retirement Board(Board). Each year, an independent actuary engaged by the Board calculates the amount of the annual contribution that the City of Waltham must make to the pension plan to ensure that the plan will be able to fully meet its obligations to retired employees on a timely basis. As required by law,the City of Waltham fully funds each year's annual required contribution to the pension plan as determined by the actuary. As of January 1, 2021, the latest full actuarial valuation date, the System had succeeded in funding 61.5°/o of the present value of the projected benefits earned by employees. An interim valuation, dated January 1, 2022, estimates the funding ratio at 66.1%. The remaining unfunded amount is being systematically funded as part of the annual required contribution as calculated by the actuary and scheduled to be completed in 2032. The City of Waltham also provides post retirement health care benefits for certain retirees and their dependents. There are approximately 1,971 retired employees receiving these benefits,which are financed on a pay-as-you-go basis. GAAP requires the City to conduct an actuarial valuation to determine the unfunded liability and to recognize the annual cost of reducing this liability in addition to the current year benefits. The City completed this actuarial valuation effective June 30,2022, with a reported net OPEB liability of$688.9 million under GASB 74 & 75. If the City is unable to fund the minimum annual contribution as determined by the actuarial valuation, the unpaid amount will be required to be recorded as a liability on the financial statements of the City. The City established and maintains an OPEB Trust Fund(not considered a trust for GASB reporting purposes) with a market value balance of$18.9 million as of June 30, 2022. Of this balance, $2.5 million is attributable to employee contributions paid during 2017-2022 under an ongoing provision of the collective bargaining agreements between the City and its Unions. Non-union employees are also required to contribute to the OPEB Trust Fund. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada(GFOA) awarded a Certi�cate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR)for the fiscal year ended June 30, 202 L This was the eighteenth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, the Ciry had to publish an easily readable and efficiently organized ACFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid far a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the dedication and commitment to excellence of the staff of the Auditing Department. We would like to express our appreciation to the members of all the departments who assisted and contributed to the preparation of this report. We would also like to acknowledge and give credit to the Mayor, the Finance Committee and the City Council for their consistent support to uphold the highest standards of professionalism in the management of the City of Waltham's finances. Respectfully submitted, Pa.w�, G. Paul G. Centofanti City Auditor City of Walthain,Massachusetts 6 Annual Comprehensive Financial Report City of Waltham,Massachusetts Organizational Chart Citizens ivtayor ciry council Health& General Public Human Se�vi to Community Culture& Public Govemment SaEety Service propeiry Development Receeation Education Co lon Cons lidated Libra Sehuol . Fire Aging I'ubl c Works Planning iS' Committee � � Vet Wrae�i& s� ae�,� A d�tox S Paine2state Recreation oeS1��e s fSchools eY Ma g nt Servi�es Op Cons c�erer . vererans s�hoot CiryClerk Police Health y Housui Commiss�o g Skati�g2ink Depertment �VS ter Dis cmilti�ies � Bu V�e nf 2e�i tration Dispatch Se Engi g Suc v& Com Pla g waee�/Sewe� ZoningBoaxd �N' WiYes Billing&Water ndm�n�sevaeon of Appeals H Li Tr ffic Resources � � Purchasing Parking Meters � Coiismi sion Com TrustPund HisroriaL Commiss�o Comm�ss�o ]n£oimation Technology Bwlding City of Walthain,Massachusetts 7 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PRINCIPAL CITY OFFICIALS as of June 30,2022 ELECTED OFFICIALS Mayor Jeannette A.McCarthy City Council Councillors-at-Lar�e Colleen Bradley-MacArthur Randall J.LeBlanc Kathleen B.McMenimen,Council President Patrick O'Brien Thomas M Stanley Carlos A.Vidal Ward Councillors Anthony LaFauci Caren Dunn George A.Darcy III John J.McLaughlin,Council Vice President Joseph P.LaCava Sean Durkee Paul S.Katz Cathyann Harris Jonathan Paz School Committee Jeannette A.McCarthy,Mayor,Chairperson Dr.Brian Reagan,Superintendent of Schools Elizabeth A1Jammal Debbie Coleman Margaret Donnelly John A.Frassica,II Jane Gately Edmund Tarallo PRINCIPAL EXECUTIVE OFFICERS City Auditor Paul G.Centofanti City Treasurer/Collector Thomas J.Magno City Clerk Joseph W.Vizard City of Walthain,Massachusetts 8 Annual Comprehensive Financial Report Got-emiuent Fuiance Officers Associatiou Certitic�te ot 1�C�11��'�lll�llt fC�r E1C�II�llC� 111 F111�i11C1�i1 Repartin� Presented to C'it�� of«7altham 1lassachuserts For its Aimual Coiuprehensire Fui�icial Report For the Fiscal Year Euded huie 30, ?0?1 C��:�Q.�c�. 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' _ _ � a ,1 >. . 3 c'�v '.�'.v 'r -�-� �� a � ,,.,� ~„ic.. �rr�. _.. � �y�...�,,,; Y'D�'pY�d�.c.. ,:�a �y �'� v' ��t I �. :�- ' .,�,j;'�/�� . �......,-. p,�- �� y,.y{y.�: _ - L�" �yv' �_'1�Y�y�s� ��=�w[y,�.�-g��'�i�.�,r„�,a �a'i�" � 1'c ',�' � t,'�..;.fr/4.. , '71r�P�P:�'�. y� y. ..a_wtR -'.� �, , ` .a:.. � 4- ,� 3t� ; `,'b�t �..._.,. :�n w �.r� , y� ��': `q,�r . . � :a 'a� �,. � ,,, .. ' . . .. �, c -....�. .. ,.�...f � ` . ,ir. A.� 2:� �.�v�?��.��..K ��•. . . •.��. . , ._ a� . _ . .. � . �. -w.,�e:4 ../ . .. 1` �� „�. '. , ':. _—�h.�-°p^�:—;.�.0 •"O '^VI � `lv . !w' ��,t•��E:� �.. _ _ • � � .. T e.' . � ��.�NiiFw'.y..•t'x : �<;"�-e s,� ��„r� , - - „ ��'f'-��+��s.�� ,� '` ',�, '�`��''k"+w 'a�`;K��i; "'�'- F�:..s'�' ... � . . � � y' �� 4 - �'f., . +b ti'yr fi`'�i _ ��frb._NM'��S�,d S ' >.`"Bw '► iP^�}�'; �,P+- . " ., 1. . !�ea��.K y . �..4!:.�" �r:�' � ... . .wv, �„�..•,r-A+�'�' 6�7...'-' ...Y.r.wN a�� d;g�t.S.l �� _ .. . �' F ' 'T,L ..�,.�i _ :y,�fG �:� ��_ yA" !'�. 1` � -w,' __ 'J�.. .aM'�.,�. v`i . .. . . . .,�ys�p,,,� I. .r .. � ._ .. . . . - � � . �a ' The Robert Treat Paine Estate City of Walthain,Massachusetts 10 Annual Comprehensive Financial Report �( CliftonLarsonAllen LLP . CLAconnect.com / INDEPENDENT AUDITORS'REPORT To the Honorable Mayor and City Council City of Waltham,Massachusetts Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities,each major fund, and the aggregate remaining fund information of the City of Waltham,Massachusetts (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of matter As discussed in Note 1 to the financial statements, effective July 1, 2021, the City adopted new accounting guidance for leases. The guidance requires lessees to recognize right-to-use lease asset and corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred inflow of resources for all leases with lease terms greater than twelve months. Our auditors' opinions were not modified with respect to this matter. Responsibilities of Management 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, and for 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. In preparing the financial statements,management is required to evaluate whether there are conditions or events considered in the aggregate,that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. CLA�loba I.com/disclaimer 11 Auditors'Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error,and to issue an auditors' report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement made by a reasonable user based on the financial statements In performing an audit in accordance with GAAS and Government Auditing Standards,we: • Exercise professional judgement and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 City's internal control.Accordingly,no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, general fund and community preservation fund budgetary comparisons, and certain pension and other postemployment benefits information be presented to supplement the basic financial statements. Such information is the responsibility of management and 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 GAAS, 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. 12 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual fund statements are presented for purposes of additional analysis and are not a require part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing 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 GAAS. In our opinion, the combining and individual fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express any opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by GovernmentAuditing Standards In accordance with Government Auditing Standards,we have also issued our report dated January 27,2023, on our consideration of the City of Waltham, Massachusetts' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's 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 City of Waltham, Massachusetts' internal control over financial reporting and compliance. G?ej�'-�-�xL�o-x��LL� CliftonLarsonAllen Boston,Massachusetts January 27,2023 13 Management's Discussion and Analysis City of Walthain,Massachusetts 14 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 As management of the City of Waltham,Massachusetts (City),we offer readers of these financial statements this narrative overview and analysis of the City's financial activities for the fiscal year ended June 30,2022. Significant Financial Results ➢ The current liabilities of$105,357,483,noncurrent liabilities of$1,054,818,663 and deferred inflows of $134,881,423 exceeded its current assets of$284,000,290,noncurrent assets of$472,882,863 and deferred outflows of$62,688,577 at the close of the most recent fiscal year by$475,485,839(net deficit). The City's governmental activities had an unrestricted net deficit totaling($830,781,312) and$8,071,287 in unrestricted net position for its business-type activities. ➢ The City's total net position increased$14,137,178. ➢ As of the close of the fiscal year,the City's governmental funds reported combined ending fund balances totaling$190,262,868,a decrease of$52,474,706,in comparison with the prior year. $42,413,540 represents unassigned fund balance. ➢ At the end of the fiscal year,unassigned fund balance for the general fund totaled$50,010,464 or 17.8% of total general fund expenditures and transfers out. ➢ The City's total long-term debt decreased by$15,815,130 (-6.0%) during fiscal year 2022 due to payments made. Overview of the Basic Financial Statements This discussion and analysis is intended to serve as an introduction to the basic financial statements,which consists of the following three components: 1. Government-wide financial statements 2. Fund financial statements 3. Notes to the basic financial statements. This report also contains required supplementary and other information in addition to the basic financial statements. Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances,in a manner similar to a private-sector business. The statement of net position presents information on all of the City's non-fiduciary assets,deferred outflows of resources,liabilities and deferred inflows of resources with the difference reported as net position.Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the government's net position changed during the most recent fiscal year.All changes in net position are reported as soon as the underlying event giving rise to the change occurs,regardless of the timing of related cash flows.Thus,revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,uncollected taxes,earned but unused vacation leave,etc.). Both of the government-wide financial statements distinguish functions of the City 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). City of Walthain,Massachusetts 15 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Governmental activities include general government,public safety,education,public works,health and human services,culture and recreation,community development and debt service (interest).Business-type activities include the sewer,water and Veterans Memorial Rink operations. 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 City,like other state and local governments,uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into the following categories and are described below: 1. Governmental funds 2. Proprietary funds 3. 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 funds financial statements focus on near-term inflows and outflows of expendable resources,as well as on balances of expendable resources available at the end of the fiscal year.Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial 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 effect of the government'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 City maintains 30 individual governmental funds. Information is presented separately in the goverrunental funds balance sheet and in the governmental funds statement of revenues,expenditures,and changes in fund balances for the general and community preservation(special revenue)funds,each of which are considered to be major funds.Data from the other 26 governmental funds are combined into a single,aggregated presentation titled nonmajor governmental funds.Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements. Proprietary Funds The City maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements.The City uses an enterprise fund to account for its sewer,water and Veterans Memorial Rink operations,for which sewer and water are considered to be major funds. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions.The City uses an internal service fund to account for employee health insurance activities. City of Walthain,Massachusetts 16 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Because these services predominantly benefit governmental rather than business-type functions,they have been included within governmental activities in the government-wide financial statements but are combined into a single,aggregated presentation in the proprietary funds financial statements. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's programs.The accounting used for fiduciary funds is similar to that used for proprietary funds. The fiduciary funds provide separate information for the City's pension trust fund.Private-purpose trust funds and custodial funds are reported and combined into a single,aggregate presentation in the fiduciary fund financial statements under the captions"private purpose trust funds" and"custodial funds"respectively. Notes to the Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary and Other Information In addition to the basic financial statements and accompanying notes,this report also presents certain required supplementary information regarding the budget comparison for the general fund and community preservation fund and certain pension and other postemployment benefits information. The combining statements previously referred to are presented immediately following the required supplementary information. City of Walthain,Massachusetts 17 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Government-Wide Financial Analysis The following tables present current and prior year data on the government-wide financial statements. Net Position As noted earlier,net position may serve over time as a useful indicator of a government's financial position.The City's liabilities exceeded assets by$475,485,839 at the close of the fiscal year and are summarized as follows: GoaernmentalActivities Business-TypeActiaities Total 2022 2021 2022 2021 2022 2021 Assets and Deferred Outflows of Resources Current Assets................................$ 256,098,852 $ 296,000,555 $ 27,901,438 $ 34,496,351 $ 284,OOQ290 $ 330,496,906 Noncurrent Assets(Excluding Capital Assets).......................... 1,732,953 1,855,086 - - 1,732,953 1,855,086 Capital Assets(Net)......................... 422,797,978 318,059,634 48,351,932 44,966,598 471,149,910 363,026,232 Total Assets............................. 650,629,783 615,975,275 76,253,370 79,462,949 756,883,153 695,378,224 Deferred Outflows oE Resources......... 61,701,450 82,558,025 987,127 1,438,583 62,688,577 83,996,608 Liabilities and Deferred Inflows of Resources Current Liabilities (Excluding Debt)....................... 73,510,746 55,686,020 1,594,269 1,904,617 75,105,015 57,590,637 Noncurrent Liabilities (Excluding Debt)....................... 808,467,132 895,531,952 13,919,458 16,315,019 822,386,590 911,846,971 Current Debt.................................. 26,526,918 10,970,965 3,725,550 3,033,076 30,252,468 14,004,041 Noncurrent Debt............................. 217,636,048 231,524,904 14,796,025 17,970,726 232,432,073 249,495,630 Total Liabilities......................... 1,126,140,844 1,193,713,541 34,035,302 39,223,438 1,160,176,146 1,232,937,279 Deferred Inflows of Resources........... 132,447,550 35,213,503 2,433,873 847,067 134,881,423 36,060,570 Net Position Net Investment in Capital Assets......., 245,806,339 203,589,323 32,700,035 25,847,021 278,506,374 229,436,344 Restricted...................................... 68,717,812 82,001,511 - - 68,717,812 82,001,5ll Unrestricted................................... (830,781,312) (816,044,578) 8,071,287 14,984,006 (822,710,025) (801,O60,S72) Total Net Position..................... $ (516,257,161) $ (530,454,044) $ 40,771,322 $ 40,831,027 $ (475,485,839) $ (489,623,01� The largest portion of the City's net position($278,506,374) reflects its net investment in capital assets (e.g.,land, construction in progress,land improvements,buildings and improvements,equipment,infrastructure and library books);less any related outstanding debt used to acquire those assets.These capital assets are used to provide services to citizens;consequently,these assets are not available for future spending.Although the investment in its capital assets is reported net of related debt,it should be noted that the resources needed to repay this debt must be provided from other sources,since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net position($68,717,812)represents resources that are subject to external restrictions on how they may be used. Unrestricted net position of$8,071,287 may be used to support business-type activities.The City has no unrestricted net position available for the support of governmental activities.Such resources have been consumed with the recognition of net pension and other post-employment benefits liabilities. City of Walthain,Massachusetts 18 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Chan�es in Net Position For the fiscal year ended June 30,2022,the City's total net position increased by$14,137,178,compared to a decrease of$18,163,502 in the prior fiscal year.These amounts are summarized as follows: GovernmentalActiaities Business-TypeActiaities Total 2022 2021 2022 2021 2022 2021 Revenues Program Revenues: Charges for Services....................................$ 21,499,261 $ 15,934,370 $ 34,001,313 $ 31,530,495 $ 55,500,574 $ 47,464,865 Operating Grants and Contributions.............. 60,684,OS8 62,640,622 - - 60,684,088 62,640,622 Capital Grants and Contributions.................. 21,575,352 25,183,698 911,818 2,990,745 22,787,200 31,174,443 General Rer�enues: Real Estate and Personal Propexty Taxes......... 204,539,910 196,033,657 - - 204,539,910 196,033,657 Motor Vehicle and Other Excise Taxes............ 7,455,047 7,787,307 - - 7,455,047 7,787,307 Hotel/Motel Taxes...................................... 2,921,240 959,940 - - 2,921,240 959,940 Meals Tax.................................................. 1,537,411 1,102,254 1,537,411 1,102,254 Penalties and Interest on Taxes....._............... 792,809 624,047 - - 792,809 624,047 Payments in Lieu of Taxes............................ 11,651 283,819 - - 11,681 283,819 Community Preservation Taxes...._............... 3,A80,932 3,283,277 - - 3,480,932 3,283,277 Grants and Contributions Not Restricted to Specific Programs.................................. 11,024,595 11,075,046 - - 11,024,595 11,075,046 Unrestricted Investment Income.................... 1,025,803 3,175,423 77,916 147,198 1,103,719 3,322,621 Gain on Sale of Capital Assets....................... SS,405 82,370 - - SS,405 82,370 Total Revenues..................................... 337,206,564 331,16S,S30 34,991,047 34,665,438 372,197,611 365,537,268 Expenses General Government......................................... 14,024,011 16,189,063 - - 14,024,011 16,159,063 Public Safety.................................................... 77,904,711 83,871,469 - - 77,904,711 83,871,469 Education....................................................... 177,325,950 194,846,409 - - 177,325,950 194,846,409 Public Works................................................... 24,231,119 23,560,756 - - 24,231,119 23,560,756 Health and Human Services............................... 4,922,77� 4,798,806 - - 4,922,715 4,798,806 Culture and Recreation...................................... 8,420,224 5,502,765 - - 8,420,224 8,502,765 Community Development................................. 10,506,032 10,032,000 - - 10,506,032 10,032,000 Debt Service-Interest....................................... 5,156,669 6,543,397 - - 5,156,669 6,543,397 Sewer............................................................. - - 18,549,061 19,358,293 18,549,061 19,358,293 Water............................................................. - - 15,542,549 15,728,833 15,542,549 15,728,833 Veterans Memorial Rink.................................... - - 577,392 568,979 577,392 568,979 Total Expenses........................................... 322,791,431 348,344,665 35,269,002 35,656,105 358,060,433 384,000,770 Change in Net Position Before Transfers..................... 14,415,133 (17,175,835) (277,955) (957,667) 14,137,178 (18,163,502) Transfers,Net........................................................ (218,250) (365,848) 218,250 365,848 - - Change in Net Position............................................ 14,196,SS3 (17,541,653) (59,705) (621,819) 14,137,178 (18,163,502) Net Position-Beginning of Year................................. (530,454,044) (512,912,361) 40,531,027 41,452,846 (489,623,01� (471,459,515) Net Position-End of Year........................................$ (516,257,161) $ (530,454,044) $ 40,771,322 $ 40,831,027 $ (475,485,839) $ (489,623,017) Governmental activities increased the City's net position by$14,196,883. In the prior year,governmental activities decreased the City's net position by$17,541,683.The key element of this change is an increase in charges for services and property taxes and decreases in general government,public safety and education expenses. Business-type activities decreased the City's net position by$59,705. In the prior year,business-type activities decreased the City's net position by$621,819.The key element of this change is an increase in charges for services City of Walthain,Massachusetts 19 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Fund Financial Statement Analysis As noted earlier,the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the governmental funds is to provide information on near-term inflows,outflows,and balances of expendable resources.Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year,the governmental funds reported combined ending fund balances totaling $190,262,868,a decrease of$52,474,706 in comparison with the prior year.$43,413,540 represents unassigned fund balance.The remainder of fund balance includes the following constraints: ➢ Nonspendable-$3,030,285 ➢ Restricted-$137,311,145 ➢ Committed-$2,282,546 ➢ Assigned-$4,225,352 The general fund is the primary operating fund of the City.At the end of the current fiscal year,the general fund's unassigned fund balance totaled$51,010,464,while total fund balance was$76,431,201.As a measure of the general fund's liquidity,it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures and transfers out.Unassigned fund balance represents 18.3% of total general fund expenditures and transfers out,while total fund balance represents 27.5% of that same amount. The balance of the City's general fund increased by$9,479,228 during fiscal year 2022,primarily due to a 37% increase in revenues from local sources (building permits,hotel taxes,meals taxes,etc). The City recognized a budgetary surplus of$24,996,672(excluding encumbrances and continuing appropriations),and anticipated utilizing reserves and continuing appropriations of approximately$15,105,000 to fund fiscal year 2022 operations. Financial highlights of the City's other major governmental funds are as follows: The fund balance of the school capital projects (capital projects) decreased by$39,147,169 during the current fiscal year.The fund recognized$33,198,182 of intergovernmental revenues and expenditures incurred totaled $72,345,351. The fund balance of the community preservation fund (special revenue) decreased by$13,491,482 during the current fiscal year. The fund recognized$3,493,857 of community preservation taxes,$11,235 of penalties and interest on taxes,$1,438,811 of intergovernmental revenues,and$146,365 of investment income and market appreciation.Expenditures incurred totaled$18,581,750. The fund balance of the American Rescue Plan Act(ARPA)fund (special revenue) remains the same in the current fiscal year. The fund recognized$8,175,864 of intergovernmental revenues,and$55,199 of investment income.Expenditures incurred totaled$8,231,064.To date,the City has received$27,161,683 in ARPA funding,of which$20,136,913 is reported as unearned revenue at year end. The fund balance of the city capital projects (capital projects) decreased by$8,348,942 during the current fiscal year. The fund recognized revenues of$95,941 of premiums from BAN issuance and expenditures incurred totaled$8,444,884. City of Walthain,Massachusetts 20 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements,but in more detail. Unrestricted net position of the sewer,water,and Veterans Memorial Rink enterprise funds at the end of the year amounted to$4,662,660,$4,267,482 and ($858,855),respectively.The sewer and Veterans Memorial Rink enterprise funds had increases in net position for the year of$2,284,504 and$62,313,respectively,and water enterprise fund had a decrease in net position of$2,406,522.Other factors concerning the finances of the fund have already been addressed in the discussion of the City's business-type activities. General Fund Budgetary Results The original general fund budget of$265,401,350 increased by$6,475,497(2.4%) during the fiscal year.The following table summarizes the increase: Purpose of Increase Amount Funding Source CPW-Snow Removal............................................................ $ 1,542,000 Unassigned Fund Balance Auditor-Stabilization Fund ................................................ 1,500,000 Unassigned Fund Balance Fire-Overtime ....................................................................... 1,000,000 Stabilization Fund Mayor-Land Development(Fernald Demoltion)............. 343,833 Stabilization Fund Traffic-Thermo Paint Service ............................................. 267,000 Unassigned Fund Balance CPW-Street Sweeper........................................................... 261,000 Stabilization Fund CPW-Bucket Truck.............................................................. 220,000 Stabilization Fund CPW-Land Developmemt(Fernald Tree Removal)........ 200,000 Unassigned Fund Balance Human Resources-Workers'Compensation..................... 200,000 Unassigned Fund Balance Housing-Land Development(Demolition)...................... 180,784 Unassigned Fund Balance Engineering-Phase 1 Phosphorous Plan............................ 112,117 Unassigned Fund Balance Engineering-Land Development(Embassy Lot)............. 70,000 Unassigned Fund Balance Information Technology-Servers ....................................... 70,000 Unassigned Fund Balance Law-Legal Settlements ........................................................ 66,500 Unassigned Fund Balance Planning-MVP Grant Match Funds ................................. 55,905 Stabilization Fund Recreation-Land Development(Lowell Field Design).... 48,000 Stabilization Fund Library-Carpet/Tiles............................................................. 44,000 Library State Aid Library-Education Supplies................................................ 44,000 Library State Aid Auditor-FICA Payroll.......................................................... 30,000 Unassigned Fund Balance Human Resources-Unemployment.................................... 28,000 Unassigned Fund Balance Voter Registration-Election Poll Pads................................ 26,200 Unassigned Fund Balance Fire-Mobile Computers....................................................... 26,136 Unassigned Fund Balance Purchasing-Cyber Insurance.............................................. 25,510 Unassigned Fund Balance Emergency Management-Environmental Services......... 24,000 Stabilization Fund CPW-Fuel Management System........................................ 19,000 Stabilization Fund Traffic-RRFB Signals............................................................ 18,600 Unassigned Fund Balance Human Resources-Pre Employment Services.................. 14,000 Unassigned Fund Balance Engineering-Office Equipment and Computers.............. 12,135 Unassigned Fund Balance Mayor-Copy Machine ......................................................... 7,267 Unassigned Fund Balance Clerk-Copy Machine........................................................... 7,000 Unassigned Fund Balance Emergency Management-Environmental Services......... 6,510 Unassigned Fund Balance Mayor-Appraisal ................................................................. 3,000 Unassigned Fund Balance Mayor-IT Consultant........................................................... 3,000 Unassigned Fund Balance Total Increase.........................................................................$ 6,475,497 City of Walthain,Massachusetts 21 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 During the year,general fund revenues exceeded budgetary estimates,and expenditures,encumbrances and continuing appropriations were less than budgetary estimates,resulting in a positive overall budget to actual variance of approximately$24,997,000. Encumbrances and continuing appropriations totaled$6,402,646 at year end. Some of the significant revenue items that exceeded budgetary estimates were the following: • Licenses and Permits $6,720,000 • Intergovernmental $1,578,000 • Hotel/Motel Occupancy Tax $1,421,000 • Tax Lien Collections $1,380,000 • Motor Vehicle and Other Excise Tax $ 641,000 • Meals Tax $ 437,000 • Departmental and Other $ 342,000 • Penalties and Interest on Taxes $ 231,000 Some of the programs that expended less than budgetary estimates were the following: • Public Works $1,905,000 • Education $1,581,000 • General Government $1,126,000 • Public Safety $ 648,000 • Recreation $ 643,000 • Public Health Services $ 374,000 • Community Development $ 242,000 The under expenses were primarily due to staffing vacancies across all programs,reduced trash and snow removal expenses,and reduced operating expenses across all programs. Capital Asset and DebtAdministration Capital Assets The City's investment in capital assets for its governmental and business type activities at the end of the fiscal year totaled$456,096,807(net of accumulated depreciation).This investment in capital assets includes land,land improvements,buildings and improvements,machinery and equipment,infrastructure and library books.The total increase in the investment in capital assets for the current fiscal year totaled$93,070,575 or 25.6%. Major capital asset events that occurred during the current fiscal year include the following: ➢ Construction in Progress-Waltham High School ($69,000,000) ➢ Construction in Progress-Water and Sewer Improvements ($4,789,000) ➢ Land Purchase-240 Beaver Street($17,430,500) ➢ Land Purchase-1 Balm Avenue ($4,500,000) City of Walthain,Massachusetts 22 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 The following table summarizes the City's capital assets (net of accumulated depreciation): GovernmentalActiaities Business-TypeActivities Total 2022 2021 2022 2021 2022 2021 Land........................................$ 85,130,014 $ 61,726,210 $ 38,550 $ 38,550 $ 85,168,564 $ 61,764,760 Land Improvements................... 18,379,059 20,042,400 - - 18,379,059 20,042,400 Buildings and Improvements......., 139,704,268 142,207,187 1,092,224 1,152,237 140,796,492 143,359,424 Machinery and Equipment........... 6,848,200 7,967,002 1,679,189 1,990,732 8,527,389 9,957,734 Infrastructure............................ 28,653,123 32,673,576 39,946,170 41,355,414 68,599,293 74,028,990 Construction in Progress............. 128,103,635 52,577,903 5,595,799 429,665 133,699,434 53,007,568 Library Books............................ 926,576 865,356 - - 926,576 865,356 Total Capital Assets.................... $ 407,744,875 $ 318,059,634 $ 48,351,932 $ 44,966,598 $ 456,096,807 $ 363,026,232 Additional information on the City's capital assets can be found in Note 5 of this report. Lon�-Term Debt At the end of the current fiscal year,total long-term debt and unamortized premiums outstanding was $247,684,541,which is backed by the full faith and credit of the City,and is summarized as follows: Governmental Activities Business-Type Activities Total 2022 2021 2022 2021 2022 2021 General Obligation Bonds......... $ 229,868,641 $ 242,495,869 $ 12,605,568 $ 14,748,232 $ 242,474,209 $ 257,244,101 MWRA.................................. - - 4,207,948 5,098,417 4,207,948 5,098,417 MCWT.................................. - - 1,002,384 1,157,153 1,002,384 1,157,153 Total Bonds and Notes and Unamortized Premiums.........$ 229,868,641 $ 242,495,869 $ 17,815,900 $ 21,003,802 $ 247,684,541 $ 263,499,671 The City's total long-term debt decreased$15,815,130(-6.0%) during fiscal year 2022,primarily due to payments made. Additional information on the City's long-term debt can be found in Note 10 of this report. Economic Factors and Next Year's Budgets and Rates Waltham is one of the primary economic engines of inetropolitan Boston. An increase in Waltham's commercial and industrial tax base from$5.0 billion in FY2021 to$5.3 billion in FY2022 makes it one of the most highly valued business centers in the state. Interstate 95 passes through the western part of the City and access to the Massachusetts Turnpike is close-by. Growing industries focused on information technology,bio-tech, pharmaceutical,communication,education,consulting services and manufacturing have chosen to locate in Waltham. During fiscal year 2022,the estimated cost of construction resulting from the issuance of building permits totaled in excess of$965.3 million. Waltham homeowners consequently enjoy a significant benefit from a relatively high tax contribution from business properties of approximately sixty cents($0.60) of every property tax dollar,including tax policies which shift the burden away from the residential property. City of Walthain,Massachusetts 23 Annual Comprehensive Financial Report Management's Discussion and Analysis For the Year Ended June 30,2022 Because of the continuing pandemic and its projected impact on the FY2023 budget,the City took a methodical approach to estimating the revenue stream and building the expenditure side of the FY2023 budget. Property taxes were increased by$10 million. The approved amount of state aid increased by$3.8 million from FY2022. Local receipts,which include significant revenues generated from the building permits,motor vehicle excise tax, local occupancy tax on hotels and the local meals tax,were estimated to increase by$6.6 million. Despite the increase in property taxes,state aid and local receipts,the City calculated the additional revenue need to be$2 million and used the American Rescue Plan Act(ARPA)funds for revenue replacement purposes. The Waltham City Council approved the FY2023 operating budget totaling$312.5 million during June 2022. This represents a$15.7 million increase,or a 5.3% increase from the FY2022 approved budget. While funding increased for mandatory items of health insurance,pensions and other contractual obligations,departmental operating expense accounts were maintained and the staffing for several vacant positions were put on hold and not funded. The approved FY2023 budget includes increases of$5.7 million for employee and retiree health benefits,$4.7 million for education,$1.7 million for a collective bargaining contingency,$1.5 million for the water/sewer enterprise funds,$1.2 million for retiree pension benefits,and$911,000 for public safety. Of the$312.5 million FY2023 operating budget,the revenues budgeted to balance it are from property taxes- 68.4%,local receipts-8.9%,state aid-9.7%,enterprise funds user charges-12.4%,and ARPA Funds-0.6%. The average owner-occupied single-family home has an assessed value of$686,030. After applying the 35% residential exemption of$260,455,the annual property tax bill for the average owner-occupied single-family home is$4,392. This represents a decrease of about$32 from fiscal year 2022. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in its finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City Auditor,City Hall,610 Main Street,Waltham, Massachusetts 02452. City of Walthain,Massachusetts 24 Annual Comprehensive Financial Report Basic Financial Statements City of Walthain,Massachusetts 25 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS STATEMENT OF NET POSITION JUNE 30,2022 Primary Government Governmental Business-Type ASSETS ActiviHes Activities Total Current Assets: Cash and Cash Equivalents................................................. $ 68,611,499 $ 2Q925,656 $ 59,537,155 Restcicted Cash and Cash Equivalents................................... 154,676,874 2,880,100 157,556,974 Restricted Investments....................................................... 21,550,620 - 21,550,620 Receivables,Net of Allowance for Uncollectible Amounts: Real PsYate and PersonaL Property Taxes...._...._....._.._....... 1,623,567 - 1,623,567 Tax and Utilitv Liens....................................................... 673,529 119,584 793,113 Motor Vehicle and Other Excise Taxes................................. 758,043 - 758,043 Community Preservation Taxes......................................._ 63,088 - 63,088 Water........................................................................_. - 1,558,388 1,558,388 Sewer............._...._........_...._...._...._........_...._...._... - 2,417,710 2,417,710 Special Assessments........................................................ 42 - 42 Departmental and Other.................................................. 1,167,340 - 1,167,340 Intergovemmental.......................................................... 6,974,250 - 6,974,250 Tota]Current Assets..................................................... 256,098,852 27,901,438 284,OOQ290 Noncurrent Assets: Receivables,Net of Allowance for Uncollectible Amounts: Rea]Estate Tax Deferrals................................................. 173,123 - 173,123 Specia]Assessments....................................................._. 5,291 - 5,291 Loans.._.._................_..._...._...._...._.._...._...._...._.... 1,554,539 - 1,554,539 Right-to-Use Assets,Net of Amortization.............................. 15,053,103 - 15,053,103 Capital Assets not being Depreciated.................................... 213,233,649 5,634,349 218,867,998 Capital Assets,Net of Accumulated Depreciation.................... 194,511,226 42,717,583 237,228,809 Tota]Noncurrent Assets.............................................._ 424,530,931 48,351,932 472,882,563 Tota]Assets................................................................ 680,629,783 76,253,370 756,883,153 DEFERRED OUTFLOWS OF RESOURCES Pension Related................................................................ 4,100,007 125.349 4.225,356 OPEB Related................................................................... 57,601,443 861,778 58,463,221 Tota]Deferred Outflows of Resources.............................. 61,701,450 987,127 62,688,577 LIABILITIES Current Liabilities: Warrants Payable............................................................. 17,050,122 755,371 17,80$493 Accrued Payroll................................................................ 888,693 36,851 925,544 Tax Refunds Payable......................................................... 619,000 - 619,000 Other Liabilities................................................................ 182,460 151,031 333,491 UnearnedRevenue_...._...._..._...._...._...._........_...._....... 20,136,913 - 20,136,913 Accrued Interest............................................................... 1,609,263 145,998 1,755,261 Accrued Heakh Claims Payable........................................... 3,162,809 - 3,162,809 Lease Liability........................................................................ 825,941 - 825,941 Workers'Compensation Claims........................................... 451,701 - 451,701 TotaIOPEBLiability_...._........_...._...._..._...._...._...._..._ 24,875,638 372,165 25,247,503 Compensated Absences..................................................... 3,708,206 129,853 3,83$059 Short-Term Notes Payable.................................................. 14,294,325 705,675 15,OOQ000 Long-Term Bonds and Notes Payable................................... 12,232,593 3,019,875 15,252,468 Tota]Current Liabilities................................................ 100,037,664 5,319,819 105,357,483 Noncurrent Liabilities: Lease Liability........................................................................ 14,308,943 - 14,308,943 Compensated Absences..._...._...._..._...._...._.............._... 5,203,519 160,902 5,364,421 TotaIOPEBLiability_.............._...._...._..._...._...._........... 663,732,423 H,930,130 673,662,553 Net Pension Liability......................................................... 125,222,247 3,825,426 129,050,673 Long-Term Bonds and Notes Payable................................... 217,636,048 14,796,025 232,432,073 Tota]Noncurrent Liabilities........................................... 1,026,103,180 28,715,483 1,054,818,663 Tota]Liabilifies........................................................... 1,126,140,844 34,035,302 1,16Q176,146 DEFEBRED IIVFLOWS OF RESOUBCES Pension Related................................................................ 29,491,259 901,637 30,392,596 OPEB Related.................................................................. 102,415,090 1,532,26 103,947,326 Taxes Collected in Advance................................................ 541,201 - 541,201 Tota]Deferred Inflows of Resources................................ 132,447,550 2,433,873 134,881,423 NET POSITION Net Investment in CapiYal Assets..._...._........._...._................ 245,806,339 32,700,035 275,506,374 Restricted for: OPEB............................................................................. 18,912,539 - 15,912,839 Loans............................................................................. 1,554,539 - 1,554,539 Community Preservation................................................... 15,882,210 - 15,882,210 PermanentFunds: Expendable................................................................... 461,170 - 461,170 Nonexpendable._.............._...._...._...._........................ 3,03Q284 - 3,030,254 RevolvingFunds_...._..._........._...._...._..._...._...._...._... 5,225,931 - 5,225,931 Traffic Impact.................................................................. 6,359,727 - 6,359,727 Pazking Meters................................................................. 803,873 - 803,873 HousingTrust.................................................................. 1,530,249 - 1,530,249 PublicSafety..._...._........_...._...._...._..._...._...._...._.._.. 7A51,6S8 - 7,051,6SS Schoo]Lunch......._...._...._...._..............................._...._. 2,519,408 - 2,519,405 Other Specific Purposes..................................................... 5,385,594 - 5,385,594 UncestciMed....................................................................... (830,781,312) 8,071,287 (822,710,025) Tota]Net Position........................................................ $ (516,257,161)$ 4Q771,322 $ (475,485,539) The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 26 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2022 Program Revenues Operating Capital Net Charges for Grants and Grants and (Expense)/ Functions/Programs Expenses Services Contributions Contributions Revenue Primary Government: Governmental Activities: General Government............................... $ 14,024,011 $ 14,206,278 $ 122,657 $ - $ 304,924 Public Safety......................................... 77,904,711 4,527,123 2,278,361 - (71,099,227) Education............................................. 177,325,950 1,409,258 46,572,165 20,630,613 (108,713,914) Public Warks......................................... 24,231,119 484,661 8,630,237 41,647 (15,074,574) Health and Human Services..................... 4,922,715 350,980 272,998 - (4,298,737) Culture and Recreation............................ 8,420,224 359,837 196,672 - (7,863,715) Community Development........................ 10,806,032 161,124 2,515,056 1,203,122 (6,926,730) Debt Service-Interest............................... 5,156,669 - 95,942 - (5,060,727) Total Governmental Activities.............. 322,791,431 21,499,261 60,684,088 21,875,382 (218,732,700) Business-Type Activities: Sewer.................................................. 18,849,061 20,191,919 - 9ll,818 2,254,676 Water.................................................. 15,842,549 13,387,939 - - (2,454,610) Veterans Memorial Rink.......................... 577,392 421,455 - - (155,937) Total Business-Type Activities............. 35,269,002 34,001,313 - 911,818 (355,871) Total Primary Government.................. $ 358,060,433 $ 55,500,574 $ 60,684,088 $ 22,787,200 $ (219,088,571) The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 27 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS STATEMENT OF ACTIVITIES(CONTINUED) YEAR ENDED JUNE 30,2022 Primary Government Governmental Business-Type Activities Activities Total CHANGES IN NET POSITION Net(Expense)Revenue(From Previous Page)..................................... $ (218,732,700) $ (355,871) $ (219,088,571) General Revenues: Real Estate and Personal Property Taxes.......................................... 204,839,910 - 204,839,910 Motor Vehicle and Other Excise Taxes............................................. 7,455,047 - 7,455,047 Hotel/Motel Taxes...................................................................... 2,921,240 - 2,921,240 Meals Tax.................................................................................. 1,537,411 - 1,537,411 Penalties and Interest on Taxes...................................................... 792,809 - 792,809 Payments in Lieu of Taxes............................................................ 11,681 - 11,681 Community Preservation Taxes...................................................... 3,480,932 - 3,480,932 Grants and Contributions not Restricted to Specific Programs....................................................................... 11,024,595 - 11,024,595 Unrestricted Investment Income.................................................... 1,025,803 77,916 1,103,719 Gain on Sale of Capital Assets......................................................... 58,405 - 58,405 Transfers,Net............................................................................... (218,250) 218,250 - Total General Revenues and Transfers.......................................... 232,929,583 296,166 233,225,749 CHANGE IN NET POSITION........................................................... 14,196,883 (59,705) 14,137,178 Net Position-Beginning of Year........................................................... (530,454,044) 40,831,027 (489,623,017) NET POSITION-END OF YEAR...................................................... $ (516,257,161) $ 40,771,322 $ (475,485,839) The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 28 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GOVERNMENTAL FUNDS BALANCESHEET JUNE 30,2022 School American City Nonm�jor Total Capit�] Rescue Plan Community Capital Governmental Governmenta] ASSETS General Projects Ad(ARPA) Preservation Projects Punds Punds Cash and Cash Equivalents.................................................. $ 61,279,527 $ - $ - $ - $ - $ 155,220 $ 61,434,747 Restricted Cash and Cash Equivalents..................................... 319,388 80,012,201 20,856,830 15,691,931 8,433,381 29,363,143 154,676,874 Restricted Investments........................................................ 18,593,451 - - - - 2,957,169 21,SSQ620 Receivables,Net of Allowance for Uncollectible Amounts: Real Estate and Pe�sonaL Property Taxes............................... 1,623,567 - - - - - 1,623,567 Rea]EstateTaxDeferrals_....__...._..................._...._........ 173,123 - - - - - 173,123 TaxLiens_....._...._............_...._..........._......._..........._.. 673,529 - - - - - 673,529 Motor Vehicle and Other Bxcise Taxes..._...._..................._. 755,043 - - - - - 758,043 Community Preservation Taxes......._...._............_......._..... - - - 63,088 - - 63,088 SpecialAssessments_..................._...._......_..........._....... 5,333 - - - - - 5,333 DepartmentaL and Other............._...._....._......_...._....__. 241,838 - - - - 420,680 662,515 lntergovernmental..........._......_...._..........._......_...._..... 213,157 4,707,917 - 1,056,434 - 996,742 6,974,250 Loans._..........._...._............._...._...._....._....__...._...... - - - - - 1,554,539 1,554,539 Due from Other Funds......_...._......_...._..................._....... 1,400,799 - - - - - 1,400,799 Tota]Assets............................................................ $ 85,281.755 $ 84,720,ll8 $ 2Q856,830 $ 16,811,453 $ 8,433,381 $ 35,447,493 $ 251,551,030 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Warrants Pavable...._....._......_...._...._....._............_...._ $ 3,742,091 $ 10,001,755 $ 719,917 $ 919,453 $ 845,530 $ 798,273 $ 17,027,022 AccruedPayrolL....._....._...._..................._..........._....._ 821,806 - - S38 - 66,049 SS8,693 Tax Refunds PayabLe._...._....._...._......_...._....._...._....... 619,000 - - - - - 619,000 UnearnedRevenue....__...._...._............._...._......_...._..... - - 20,136,913 - - - 20,136,913 Other Liabilities.................................................................................. 32,400 - - - - 150,060 152,460 Due to Other Funds.......................................................... - - - - - 1,400,799 1,400,799 Short-Term Notes Payable................................................. - - - - 14,294,325 - 14,294,325 Tota]Liabilities........................................................ 5,215,297 10,001,758 20,556,830 920,291 15,139,855 2,415,181 54,549,212 DEFERRED INFLOWS OF 2ESOURCES UnavailableRevenue...................._.................................. 3,103,008 - - 1,119,522 - 1,975,219 6,197,749 Taxes Collected in Advance............................................... 532,249 - - $952 - - 541,201 Tota]Deferred Inflo�n�s of Resources.............._............. 3,635,257 - - 1,12$474 - 1,975,219 6,738,950 FUND BALANCES Nonspendable................................................................. - - - - - 3,03Q2S5 3,03Q2S5 Restricted....................................................................... 18,912,839 74,718,360 - 14,762,688 - 25,917,255 137,311,145 Committed..................................................................... 2,282,546 - - - - - 2,282,546 Assigned.............._...._....._............_...._............_......_. 4,225,352 - - - - - 4,225,352 Unassigned..........._...._....._...._......_...._....._...._......._ 51,010,464 - - - (6,706,474) (590,450) 43,413,540 Tota]Fund Balances.................................................. 76,431,201 74,718,360 - 14,762,688 (6,706,474) 31,057,093 190,262,868 Tota]LiabiliHes,Deferred Inflows of Resources and Fund Balances........................................................... $ 85,281,755 $ 84,720,118 $ 20,856,830 $ 16,811,453 $ 8,433,351 $ 35,447,493 $ 251,551,030 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 29 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION JUNE 30,2022 Total Governmental Fund Balances................................................................................ $ 190,262,868 Capital assets (net of accumulated depreciation)used in governmental activities are not financial resources and,therefore,are not reported in the governmental funds.............. 407,744,875 Right-to-Use Assets in governmental activities are not financial resources and, therefore,are not reported in the in the governmental funds...................................... 15,053,103 Other assets that are not available to pay for current period expenditures and, therefore,are reported as deferred inflows of resources in the governmental funds........, 6,197,749 In the statement of net position,interest is accrued on outstanding long-term debts and leases,whereas in the governmental funds interest is not reported until due................. (1,609,263) Long-term liabilities that are not due and payable in the current period and, therefore,are not reported in the governmental funds. Bonds and Notes Payable............................................................................... (229,868,641) LeaseLiability........................................................................................................................... (15,134,884) Workers' Compensation Claims....................................................................... (451,701) Compensated Absences................................................................................. (8,911,725) Total OPEB Liability,Net of Deferred Outflows and Inflows of Resources................ (733,421,708) Net Pension Liability,Net of Deferred Outflows and Inflows of Resources............... (150,613,499) Internal service funds are used by management to account for health insurance activities.The assets and liabilities of the internal service fund is reported as governmental activities in the statement of net position............................................. 4,495,665 Net Position of Governmental Activities......................................................................... $ (516,257,161) The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 30 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30,2022 Schoo] American City Nonmajor Tota] CapitaL Rescue Plan Commurtity CapitaL Governmental GovernmentaL General Projects Act(ARPA) Preservation Projects Punds Punds REVENUES Rea]Estate and Personal Property Taxes....................... $ 204,705,525 $ - $ - $ - $ - $ - $ 204,705,525 Motor Vehide and Other Excise Taxes.......................... $166,999 - - - - - 8,166,999 Hotel/MotelTax...................................................... 2.921,240 - - - - - 2.921,240 Meals Tax............................................................... 1.537,411 - - - - - 1.537,411 Tax Liens................................................................ 1.380,129 - - - - - 1.380,129 Payments in Lieu of Taxes..............................._........ 11,651 - - - - - 11,681 Community Preservation Taxes................................... - - - 3,493,857 - - 3,493,857 Charges for Services................................................. - - - - - 3,337,012 3,337,012 Intergovernmental................................................... 43,934,040 33,195,182 5,175,564 1,43$Sll - 17,733,769 104,480,666 Specia]Assessments................................................. 1,321 - - - - 6,270 7,591 Penalties and Interest on Taxes................................_. 781,574 - - 11,235 - - 792,509 Licenses and Permits................................................ 14,060,917 - - - - - 14,060,917 Fines and Forfeitures................................................ 339,295 - - - - 46,180 385,475 Departmental and Other............................................ 1,956,730 - - - - 2,336,984 4,293,714 Contributions..........._...._......_...._....._...._......_.... - - - - - 522,893 822,593 lnvestment lnmme........_............_....__...._...._....... 878,073 - 55,1HH 146,365 - 121,035 1,200,672 TotalRevenues_...._......_...._............_....._..... 2SQ674,935 33,195,182 5,231,063 5,090,268 - 24,404,143 351,598,591 EXPENDITURES Current General Government.............................................. 13,802,766 - - - 4,619,795 184,577 18,607,138 PublicSafety...................._................................... 41,382,813 - 59,152 - 693,206 19,906,405 62,041,606 Educatimt............................................................ lOS,O1Q8S9 72,345,351 - - - 14,734,281 195,090,521 Public Works........................................................ ]5,30Q740 - 911,815 - 1,445,501 95,025 17,753,OS4 Health and Hmnan Services.................................... 1,956,024 - 247,455 - - 223,240 2,426,722 Culture and Recreation........................................... 4,357,404 - 12,605 - 1,671,672 396,426 6,438,107 CommunityDevelopment...._........................._..... 1,497,169 - - 15,581,750 14,710 4,524,817 24,618,446 PensionBenefits..._...._....__...._....._...._......_...... 15,640,078 - - - - - 18,64Q078 Employee Benefits...._...._....__...._....._...._...._.... i1,568,753 - - - - - 51,56$753 State and County Charges............._...._......_...._....... 2,123,454 - - - - - 2,123,454 Debt Service: Principal._......_...._....._............_...._............_.... 10,106,238 - - - - 644,309 10,75Q547 Interest...._...._......_..........._............_...._........... H,378,534 - - - - 141,597 9,520,131 TotalExpenditures...._............_....._............_... 275,124,562 72,345,351 1,231,063 15,581,750 8,444,884 40,550,677 419,578,SS7 EXCESS(DEFICIENCY)OF REVENUES OVEREXPENDITORES........._...._....._...._....__...._. 2,550,073 (39,147,169) 7,000,000 (13,491,482) (8,444,884) (16,446,534) (67,979,996) OTHER FINANCING SOURCES(USES) Premium from Issuance of Bond Anticipation Notes....... - - - - 95,942 - 95,942 Sale of Capita]Assets................................................. 58,405 - - - - - 58,405 Leases....................................................................... - - - - - 15,569,193 15,569,193 Transfers In............................................................ 7,089,000 - - - - - 7,089,000 Transfers Out........................................................_ (21$250) - (7,000,000) - - (89,000) ��,so�,zso� Tora�or�,erP�n.n��n�so�r�es�vses�......__....___ 6,9z9,iss - ��,000,000� - 9s,9az is,4ao,i9s is,so�,z90 NETCHANGEINPUNDBALANCES.....__..__...__.... 9,479,228 (39,147,169) - (13,491,452) (8,348,942) (966,341) (52,474,706) Fund Balances-Beginning of Year................................... 66,951,973 113,865,529 - 28,254,170 1,642,468 32,023,434 242,737,574 FUND BALANCES-END OF YEAR............................. g 76,431,201 $ 74,718,360 $ - $ 14,762,658 $ (6,706,474) $ 31,057,093 $ 190,262,868 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 31 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2022 Net Change in Fund Balances-Total Governmental Funds...................................................... $ (52,474,706) Governmental funds report capital outlays and leases as expenditures. However,in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense. These amounts represent the related activity of the current period. Capital Outlays................................................................................................. 104,127,833 Depreciation..................................................................................................... (14,442,592) Lease Expenditures (Right-to-Use Assets)............................................................... 15,569,193 Amortization of Right-to-Use Assets..................................................................... (516,090) Revenues in the statement of activities that do not provide current financial resources are reported as deferred inflows of resources in the governmental funds. Therefore, the recognition of revenue for various types of accounts receivable(i.e.,real estate and personal property,motor vehicle excise,etc) differ between the two statements. This amount represents the net change in deferred inflows of resources............................ (15,195,950) The issuance of long-term debt(e.g.,bonds and leases)provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the financial resources of governmental funds. Neither transaction,however,has any impact on net position. Also,governmental funds report the effect of premiums,discounts, and similar items when debt is first issued,whereas these amounts are deferred and amortized in the statement of activities. These amounts represent the related activity of the current period. BondMaturities................................................................................................ 10,316,238 Amortization of Bond Premiums.......................................................................... 2,310,990 Lease Liability.................................................................................................. (15,569,193) Principal Paid on Lease Liability........................................................................... 434,309 In the statement of activities,interest is accrued on outstanding long-term debt, whereas in the governmental funds interest is not reported until due. This amount represents the net change in accrued interest payable.................................................... 2,052,472 Some expenses reported in the statement of activities do not require the use of current financial resources and,therefore,are not reported in the governmental funds. These amounts represent the net changes: Workers'Compensation...................................................................................... (101,956) Compensated Absences...................................................................................... 774,551 Total OPEB Liability,Net ................................................................................... (27,439,344) Net Pension Liability,Net................................................................................... 8,620,465 Internal service funds are used by management to account far health insurance activities.The net activity of the internal service fund is reported with governmental activities........................................................................................... (4,269,337) Changes in Net Position of Governmental Activities.............................................................. $ 14,196,883 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 32 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PROPRIETARY FUNDS STATEMENT OF FUND NET POSTTION JUNE 30,2022 Business-Type Activities-Enterprise Funds Governmental Activities- Nonmajor Internal Veterans Service ASSETS Sewer Water Memorial Rink Total Funds Current Assets: Cash and Cash Equivalents............................................. $ 7,524,315 $ 13,210,609 $ 19Q732 $ 20,925,656 $ 7,176,752 Restricted Cash and Cash Equivalents............................... 2,449,964 392,099 38,037 2,880,100 - Receivables,Net of Allowance for Uncollectible Amounts: User Charges............................................................. 2,417,710 1,558,388 - 3,976,098 - Utility Liens............................................................... 69,650 49,934 - ll9,584 - Departmental and Other............................................... - - - - 504,822 Total Current Assets................................................. 12,461,639 15,211,030 228,769 27,901,438 7,681,574 Noncurrent Assets: Capital Assets Not Being Depreciated................................ 3,767,880 1,866,469 - 5,634,349 - Capital Assets,Net of Accumulated Depreciation................ 28,963,177 13,224,624 529,782 42,717,583 - Total Noncurrent Assets............................................ 32,731,057 15,091,093 529,782 48,351,932 - Total Assets............................................................. 45,192,696 30,302,123 758,551 76,253,370 7,681,574 DEFERRED OUTFLOWS OF RESOURCES Pension Related............................................................ 43,036 79,925 2,388 125,349 - OPEB Related............................................................... 237,491 552,494 71,793 861,778 - Total Deferred Outflows of Resources........................... 280,527 632,419 74,181 987,127 - LIABILITIES Current Liabilities: Warrants Payable.......................................................... 331,572 416,021 10,778 758,371 23,100 Accrued Payroll............................................................ 12,100 21,761 2,990 36,851 - Other Liabilities............................................................ 151,031 - - 151,031 - Accrued Interest............................................................ 104,499 36,600 4,899 145,998 - Accrued Health Claims Payable....................................... - - - - 3,162,809 Total OPEB Liability...................................................... 102,562 238,599 31,004 372,165 - Compensated Absences.................................................. 55,150 60,958 13,745 129,853 - Short-Term Notes Payable............................................... 705,675 - - 705,675 - Long-Term Bonds and Notes Payable................................ 1,859,174 1,032,286 128,415 3,019,875 - Total Current Liabilities............................................. 3,321,763 1,806,225 191,831 5,319,819 3,185,909 Noncurrent Liabilities: Compensated Absences.................................................. 94,552 45,335 21,015 160,902 - Total OPEB Liability...................................................... 2,736,575 6,366,300 827,255 9,930,130 - Net Pension Liability...................................................... 1,314,418 2,441,065 72,943 3,828,426 - Long-Term Bonds and Notes Payable................................ 10,033,117 4,638,700 124,208 14,796,025 - Total Noncurrent Liabilities........................................ 14,178,662 13,491,400 1,045,421 28,715,483 - Total Liabilities........................................................ 17,500,425 15,297,625 1,237,252 34,035,302 3,185,909 DEFERRED INFLOWS OF RESOURCES Pension Related................................................................. 309,560 574,898 17,179 901,637 - OPEB Related............................................................... 422,258 982,331 127,647 1,532,236 - Total Deferred Inflows of Resources............................. 731,818 1,557,229 144,826 2,433,873 - FUND NET POSITION Net Investment in Capital Assets......................................... 22,578,320 9,812,206 309,509 32,700,035 - Unrestricted.................................................................... 4,662,660 4,267,482 (858,855) 8,071,287 4,495,665 Total Net Position..................................................... $ 27,240,980 $ 14,079,688 $ (549,346) $ 40,771,322 $ 4,495,665 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 33 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION YEAR ENDED JUNE 30,2022 Business-Type Activities-Enterprise Funds Governmental Activities- Nonmajor Internal Veterans Service Sewer Water Memorial Rink Total Funds OPERATING REVENUES Charges for Services................................................... $ 20,191,919 $ 13,387,939 $ 421,455 $ 34,001,313 $ - Employer Contributions.............................................. - - - - 49,191,963 Employee Contributions.............................................. - - - - 6,776,113 Total Operating Revenues.................................... 20,191,919 13,387,939 421,455 34,001,313 55,968,076 OPERATING EXPENSES Cost of Service and Administration............................... 3,253,933 4,732,313 524,403 8,510,649 - MWRA Assessment.................................................... 14,299,920 10,338,346 - 24,638,266 - Depreciation............................................................. 1,167,707 669,537 50,088 1,887,332 - Employee Benefits...................................................... - - - - 60,272,578 Total Operating Expenses..................................... 18,721,560 15,740,196 574,491 35,036,247 60,272,578 OPERATING INCOME(LOSS)..................................... 1,470,359 (2,352,257) (153,036) (1,034,934) (4,304,502) NONOPERATING REVENUES(EXPENSES) Investment Income..................................................... 29,828 48,088 - 77,916 35,165 Interest Expense........................................................ (127,501) (102,353) (2,901) (232,755) - Total Nonoperating Revenues(Expenses),Net......... (97,673) (54,265) (2,901) (154,839) 35,165 INCOME(LOSS)BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS...................................................................... 1,372,686 (2,406,522) (155,937) (1,189,773) (4,269,337) Capital Contributions................................................. 911,818 - - 911,818 - Transfers In.............................................................. - - 218,250 218,250 - Total Transfers and Capital Contributions............... 911,818 - 218,250 1,130,068 - CHANGE IN FUND NET POSITION............................. 2,284,504 (2,406,522) 62,313 (59,705) (4,269,337) Fund Net Position-Beginning of Year............................... 24,956,476 16,486,210 (611,659) 40,831,027 8,765,002 FUND NET POSITION-END OF YEAR......................... $ Z�,Z40,980 $ 14,079,688 $ (549,346) $ 4Q771,322 $ 4,495,665 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 34 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PROPRIETARY FUNDS STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30,2022 Business-Type Activities-Enterprise Funds Governmental Adivities- Nonmajor Internal Veterans Service Sewer Water Memorial Rink Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers and Users................................................................... $ 20,020,512 $ 13,421,621 $ 421,455 $ 33,863,888 $ 6,776,113 Receipts from Interfund Services Provided.......................................................... - - - - 49,070,052 Payments to Vendors...................................................................................... (17,590,037) (13,134,920) (301,968) (31,326,925) - Payments to Employees................................................................................... (722,434) (1,246,916) (165,781) (2,135,131) - Payments for Interfund Services Used................................................................. - - - - (59,795,943) Net Cash Provided(Used)by Operating Activities......................................... 1,408,341 (960,215) (46,294) 401,832 (3,949,775) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers In................................................................................................... - - 218,250 218,250 - Net Cash Provided by Noncapital Financing Activities................................... - - 215,250 215,250 - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from the Issuance of Bonds and Notes.................................................... 705,675 - - 705,675 - Capital Contributions...................................................................................... 911,815 - 911,818 - Acquisition and Construction of Capital Assets.................................................... (3,695,772) (1,907,096) - (5,602,868) - Principal Payments on Bonds and Notes............................................................. (1,748,874) (1,013,765) (125,000) (2,887,639) - Interest Paid.................................................................................................. (405,320) (130,598) (21,404) (557,322) - Net Cash Used by Capital and Related Financing Activities............................. (4,232,473) (3,051,459) (146,404) (7,430,336) - CASH FLOWS FROM INVESTING ACTNITIES Investment Incoma........................................................................................ 29,828 48,088 - 77,916 35,165 NET CHANGE IN CASH AND CASH EQUIVALENTS.......................................... (2,794,304) (3,963,586) 25,552 (6,732,338) (3,914,613) Cash and Cash Equivalents-Beginning of Year (Includes$4,775,936, $715,150 and$38,037 Reported as Restricted in the Sewer,Water and Nonmajor Enterprise Funds,Respectively)................................... 12,768,583 17,566,294 203,217 30,538,094 11,091,365 CASH AND CASH EQUIVALENTS AT END OF YEAR (Includes$2,449,964,$392,099 and$35,037 Reported as Restricted in the Sewer,Water and Nonmajor Enterprise Funds,Respectively)................................... $ 9,974,279 $ 13,602,708 $ 228,769 $ 23,805,756 $ 7,176,752 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH FROM OPERATING ACTIVITIES Operating Income(Loss).................................................................................. $ 1,470,359 $ (2,352,257) $ (153,036) $ (1,034,934) $ (4,304,502) Adjustments to Reconcile Operating[ncome(Loss)to Net Cash Provided(Used)by Operating Activities: Changes in Assets and Liabilities not Requiring Current Cash Flows: Depreciation............................................................................................. 1,167,707 669,537 50,088 1,887,332 - Change in Total OPEB Liability.................................................................... (940,448) 55,445 (55,189) (940,192) - Change in Net Pension Liability................................................................... (475,471) (883,017) (19,164) (1,377,652) - Change in Deferred Outflows-Pension......................................................... 89,061 165,399 4,410 255,870 - Change in Deferred Inflows-Pension........................................................... 107,475 199,597 6,780 313,852 - Change in Deferred Outflows-OPEB........................................................... 116,973 61,739 13,874 192,586 - Change in Deferred Inflows-OPEB.............................................................. 335,091 831,283 106,580 1,272,954 - Effect of Changes in Operating Assets and Liabilities: Utility Liens............................................................................................. 14,221 4,150 - 15,371 - User Charges............................................................................................ (155,325) 29532 - (155,796) - Departmental and Other............................................................................. - - - - (121,911) Warrants Payable...................................................................................... (318,970) 320,167 5,511 9,708 23,100 Accrued Payroll........................................................................................ 12,100 21,761 2,990 36,851 - Other Liabilities........................................................................................ 11,944 - - 11,944 - Accrued Health Claims Payable.................................................................... - - - - 453,535 Compensated Absences.............................................................................. 3,627 (83,551) (12,138) (92,062) - TotalAdjustments................................................................................._ (62,018) 1,392,042 106,742 1,436,766 354,724 Net Cash Provided(Used)by Operating Actrvities......................................... $ 1,408,341 $ (960,215) $ (46,294) $ 401,832 $ (3,949,778) The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 35 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30,2022 Pension Benefit Private Purpose Custodial Trust Fund Trust Funds Funds ASSETS Cash and Cash Equivalents........................................................ $ 64,061 $ 69,257 $ 318,169 Investments: Equities and Equity Mutual Funds............................................ 188,743,859 - - Fixed Income Mutual Funds.................................................... 77,991,520 - - US Treasuries and Agencies..................................................... - 3,465,455 - PrivateEquity........................................................................ 3,317 - - External Investment Pool(PRIT)............................................... 83,121,005 - - Receivables,Net of Allowance for Uncollectible Amounts: Departmental and Other......................................................... 3,617 - - Loans.................................................................................. - 103,916 - Total Assets.................................................................. 349,927,379 3,638,628 318,169 LIABILITIES Warrants Payable.................................................................. 152,139 - 21,401 NET POSITION Restricted for: Pensions..................................................................................... 349,775,240 - - Individuals,Organizations and Other Governments..................... - 3,638,628 296,768 Total Net Position.......................................................... $ 349,775,240 $ 3,638,628 $ 296,768 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 36 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30,2022 Pension Benefit Private Purpose Custodial Trust Fund Trust Funds Funds ADDITIONS Contributions: Employer..................................................................................... $ 19,800,000 $ - $ - Plan Members............................................................................... 7,242,000 - - Private Donations........................................................................... - 20,440 - Total Contributions................................................................... 27,042,000 20,440 - Net Investment Income(Loss): Net Change in Fair Value of Investments................................................ 39,943,705 124,685 - Interest........................................................................................ 1,221 - - Dividends..................................................................................... 7,742,561 - - Total Investment Income........................................................... 47,687,487 124,685 - Less:Investment Expense.................................................................. (1,746,075) - - NET INVESTMENT INCOME............................................................. 45,941,412 124,685 - Intergovernmental............................................................................ 319,089 - - Taxes and Fees Collected for Other Governments and Organizations......... - - 307,869 Transfers from Other Systems............................................................. 370,897 - - Total Additions........................................................................ 73,673,398 145,125 307,869 DEDUCTIONS Administration................................................................................ 559,776 - - Retirement Benefits and Refunds......................................................... 30,498,651 - - Scholarships Awarded....................................................................... - 147,823 - Payments of Taxes and Fees to Other Governments and Organizations....... - - 255,318 Total Deductions....................................................................... 31,058,427 147,823 255,318 CHANGE IN NET POSITION............................................................... 42,614,971 (2,698) 52,551 Net Position-Beginning of Year.............................................................. 307,160,269 3,641,326 244,217 NET POSITION-END OF YEAR........................................................... � 349,775,240 $ 3,638,628 $ 296,768 The accompanying notes are an integral part of the financial statements. City of Walthain,Massachusetts 37 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General The basic financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America(GAAP).The Governmental Accounting Standards Board (GASB)is the standard- setting body for establishing governmental accounting and financial reporting principles.The significant accounting policies are described herein. B. Reporting Entity The City of Waltham,Massachusetts (City) is a municipal corporation with a Mayor-Council form of government. The Mayor is elected at large for a four-year term.The City Council is comprised of fifteen members elected for two-year terms from nine election districts and six at large. For financial reporting purposes,the basic financial statements include all funds,organizations,agencies,boards, commissions and institutions that are not legally separate from the City. The City has also considered all potential component units for which it is financially accountable as well as other organizations for which the nature and/or significance of their relationship with the City are such that exclusion would cause the City's basic financial statements to be misleading or incomplete.As required by GAAP,these basic financial statements present the City (primary government) and its component units. The City has included one entity as a component unit(fiduciary fund) in the reporting entity because of the significance of its operational and financial relationship with the City. Component units are entities that are legally separate from the City,but are so related that they are,in substance,the same as the City or entities providing services entirely or almost entirely for the benefit of the City. Fiduciary Fund Component Unit The Waltham Contributory Retirement System(System)was established to provide retirement benefits to City employees,the Waltham Housing Authority employees,and their beneficiaries.The System is governed by a five- member board comprised of the City Auditor(ex-officio),two members elected by the System's participants,one member appointed by the Mayor and one member appointed by the other board members.The System is presented using the accrual basis of accounting and is reported as a pension trust fund in the fiduciary funds financial statements. The System did not issue a separate audited financial statement.The System issues a publicly available unaudited financial report in accordance with guidelines established by the Commonwealth of Massachusetts' (Commonwealth) Public Employee Retirement Administration Commission(PERAC).That report may be obtained by contacting the System located at 25 Lexington Street,Waltham,Massachusetts 02452. C. Implementation of New Accounting Principles In June 2017,the Governmental Accounting Standards Board (GASB)issued GASB Statement No.87,Leases.This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset.Under this standard,a lessee is required to recognize a lease liability and an intangible right-to-use lease asset,and a lessor is required to recognize a lease receivable and a deferred inflow of resources. City of Walthain,Massachusetts 38 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 The City adopted the requirements of the guidance effective July 1,2021,and has applied the provisions of this standard to the beginning of the period. D. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (statement of net position and the statement of activities)report information on all non-fiduciary activities of the primary government and its component units. Governmental activities,which are primarily supported by taxes and intergovernmental revenues,are reported separately from business-type activities,which are primarily supported by user fees. Fund Financial Statements Separate financial statements are provided for governmental funds,proprietary funds,and fiduciary funds,even though fiduciary funds are excluded from the government-wide financial statements.Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.Nonmajor funds are aggregated and displayed in a single column. Internal service funds and fiduciary funds are reported by fund type. E. Measurement Focus,Basis of Accounting and Basis of Presentation Government-Wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under this method,revenues are recorded when earned and expenses are recorded when the liabilities are incurred.Real estate and personal property taxes are recognized as revenues in the fiscal year for which they are levied.Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The statement of activities demonstrates the degree to which the direct expenses of a function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include the following: ➢ Charges to customers or applicants who purchase,use,or directly benefit from goods,services,or privileges provided by a given function or segment. ➢ Grants and contributions that are restricted to meeting the operational requirements of a specific function or segment. ➢ Grants and contributions that are restricted to meeting the capital requirements of a specific function or segment. Taxes and other items not identifiable as program revenues are reported as general revenues. Except for charges between the general fund and enterprise funds,the effect of interfund activity has been eliminated from the government-wide financial statements.Elimination of these charges would distort the direct costs and program revenues reported for the functions affected. City of Walthain,Massachusetts 39 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Fund Financial Statements Governmental funds financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting.Under the modified accrual basis of accounting,revenues are recognized when susceptible to accrual(i.e.,measurable and available).Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period.Expenditures are recorded when the related fund liability is incurred,except for unmatured interest on general long-term debt which is recognized when due,and certain compensated absences,claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. Real estate and personal property tax revenues are considered available if they are collected within 60-days after the end of the fiscal year. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met.Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The General Fund is used to account for and report all financial resources not accounted for and reported in another fund. The School Capital Projects Fund is used to account for and report all financial activity related to the City's construction of the new high school.This project will be funded through the issuance of long-term bonds,state funding and other available funds. The American Rescue Plan Act(ARPA)Fund is used to account for and report all financial activity related to the City's ARPA funding. The Community Preservation Fund is a special revenue fund used to account for the 2% local real estate tax on nonexempt property (and state trust fund distribution)that can be used for open space,historic resource and affordable housing purposes. Property exempt from the tax consists of the first$100,000 of all residential property and also property owned by low income seniors with a low or moderate income as defined by Massachusetts Department of Revenue(DOR) guidelines. Disbursements from this fund must originate from the Community Preservation Committee and be approved by the City Council. The City Capital Projects Fund is used to account for and report all financial activity related to the City's various capital projects and improvements throughout the City.These projects will be funded by the issuance of long- term bonds,state funding,and other available funds. The nonmajor governmental funds consist of other special revenue,capital projects and permanent funds that are aggregated and presented in the nonmajor governmental funds column on the governmental funds financial statements.The following describes the general use of these fund types: Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. Capital projects funds are used to account for and report financial resources that are restricted,committed,or assigned to expenditure for capital outlays,including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals,private organizations,or other governments. City of Walthain,Massachusetts 40 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Permanent funds are used to account for and report resources that are restricted to the extent that only earnings, and not principal,may be used for purposes that support the government's programs and benefit the government or its citizenry. Proprietary funds financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting,whereby revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items.Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principal ongoing operations.All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The sewer enterprise fund is used to account for the City's sewer activities. The water enterprise fund is used to account for the City's water activities. The following nonmajor proprietary fund is reported: The Veterans Memorial Rink enterprise fund is used to account for the City's rink activities. Additionally,the following proprietary fund type is reported: The internal service fund is used to account for the financing of services provided by one department to other departments or governmental units.This fund is used to account for risk financing activities related to active employees' and retirees'health insurance. Fiduciary funds financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting.Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the government's programs. The following fiduciary fund types are reported: The pension trust fund is used to account for the activities of the System,which accumulates resources to provide pension benefits to eligible retirees and their beneficiaries. The private-purpose trust fund is used to account for trust arrangements,other than those properly reported in the permanent fund,under which principal and investment income exclusively benefit individuals,private organizations,or other governments.The City reports private purpose trust funds related to scholarship funds. The custodial fund is used to account for assets held in a custodial capacity.Such assets consist of taxes and fees collected for other governments and organizations. F. Deposits and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value,net asset value(NAV) or amortized cost,as further described in Note 3. City of Walthain,Massachusetts 41 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 G. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide,proprietary and fiduciary funds financial statements is reported under the accrual basis of accounting.The recognition of revenue in the governmental funds financial statements is reported under the modified accrual basis of accounting. Real Estate Taxes,Personal Property Taxes and Tax Liens Real estate and personal property taxes are levied and based on values assessed on January 1St of every year. Assessed values are established by the Board of Assessor's for 100% of the estimated fair market value.Taxes are due on August 1St,November 15t,February 1St and May 1St and are subject to penalties and interest if they are not paid by the respective due date. Real estate tax liens are processed six months after the close of the valuation year on delinquent properties and are recorded as receivables in the fiscal year they are processed. Motor Vehicle Excise Taxes Motor vehicle excise taxes are assessed annually for each vehicle registered in the City and are recorded as receivables in the fiscal year of the levy.The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles to the City.The tax calculation is the fair value of the vehicle multiplied by$25 per$1,000 of value. Community Preservation Taxes Community preservation taxes are levied annually at a rate of 2% of residents' real estate tax bills with exemptions for the first$100,000 of residential property and property owned by qualified persons with low income and seniors with low or moderate income as defined by DOR guidelines.The tax is due with the real estate tax on a quarterly basis each August 1St,November 1St,February 15t,and May 15t and are subject to penalties and interest if they are not paid by the respective due date. Overdue taxes are included on the tax liens processed on delinquent real estate taxes.Taxes are recorded as receivables in the fiscal year of the levy. Water and Sewer User Charges and Utility Liens User fees are levied monthly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date.Water and sewer liens are processed in December of every year and are included as a lien on the property owner's tax bill.Water and sewer charges and liens are recorded as receivables in the fiscal year of the levy. Departmental and Other Departmental and other receivables primarily consist of parking ticket fines and police and fire details and are recorded as receivables in the fiscal year accrued. Special Assessments Special assessments consist of street and sidewalk betterments and are recorded as receivables in the fiscal year accrued. Intergovernmental Various state and federal operating and capital grants are applied for and received annually.For non-expenditure driven grants,revenue is recognized as soon as all eligibility requirements imposed by the provider have been met.For expenditure driven grants,revenue is recognized when the qualifying expenditures are incurred and all other grant requirements are met. City of Walthain,Massachusetts 42 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Loans The Planning/Housing Department administers loan programs that provide housing assistance to residents and capital needs for small businesses. Loans are recorded as receivables upon issuance. H. Allowance for Uncollectible Amounts The allowance for uncollectible amounts is estimated based on historical trends and specific account analysis for the following accounts receivable: ➢ Personal property taxes ➢ Motor vehicle and other excise taxes ➢ Departmental and other The following types of accounts receivable are secured via the lien process and are considered 100% collectible. Accordingly,an allowance for uncollectible amounts is not reported. ➢ Real estate taxes and tax liens ➢ Community preservation taxes ➢ Water and sewer user charges and liens ➢ Special assessments ➢ Loans Intergovernmental receivables are considered 100% collectible. I. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase.Such inventories are not material in total to the government-wide and fund financial statements and therefore are not reported. J. Restricted Assets Government-Wide and Fund Financial Statements Assets are reported as restricted when limitations on their use change the nature of the availability of the asset. Such constraints are either externally imposed by creditors,contributors,grantors,or laws of other governments, or are imposed by law through constitutional provisions or enabling legislation. K Capital Assets Government-Wide and Proprietary Funds Financial Statements Capital assets,which consist of land,land improvements,buildings and improvements,equipment,infrastructure (e.g.,roads,water mains,sewer mains,and similar items) and library books are reported in the applicable governmental or business-type activities column of the government-wide financial statements and the proprietary funds'financial statements. Capital assets are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Donated capital assets,donated works of art and similar items,and capital assets received in a service concession arrangement are recorded at the acquisition value. City of Walthain,Massachusetts 43 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 All purchases and construction costs in excess of$10,000 are capitalized at the date of acquisition or construction, respectively,with expected useful lives of greater than one year. Capital assets (excluding land and construction in progress) are depreciated on a straight-line basis.The estimated useful lives of capital assets are as follows: Estimated Useful Life Capital Asset Type (in years) Land Improvements............................................. 10-50 Buildings and Improvements................................. 5-40 Equipment......................................................... 3-20 Right-to-Use Leased Building................................ 15 Infrastructure..................................................... 10-50 Library Books..................................................... 5 The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized and are treated as expenses when incurred.Improvements are capitalized. Governmental Funds Financial Statements Capital asset costs are recorded as expenditures in the acquiring fund in the fiscal year of the purchase. L. Interfund Receivables and Payables During the course of its operations,transactions occur between funds that may result in amounts owed between funds. Government-Wide Financial Statements Transactions of a buyer/seller nature between governmental funds are eliminated from the governmental activities in the statement of net position.Any residual balances outstanding between the governmental activities and business-type activities are reported in the statement of net position as"internal balances". Fund Financial Statements Transactions of a buyer/seller nature between funds are not eliminated from the individual fund statements. Receivables and payables resulting from these transactions are classified as"Due from other funds" or"Due to other funds" on the balance sheet. M. Interfund Transfers During the course of its operations,resources are permanently reallocated between funds. Government-Wide Financial Statements Transfers between governmental funds are eliminated from the governmental activities in the statement of activities.Any residual balances outstanding between the governmental activities and business-type activities are reported in the statement of activities as"Transfers,net". City of Walthain,Massachusetts 44 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Fund Financial Statements Transfers between funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. N. Unearned Revenue Unearned revenue is presented in the governmental-wide statement of net position and governmental fund balance sheet and represents federal grants received by the City in advance of ineeting eligibility requirements for revenue recognition. O. Deferred Outflows of Resources In addition to assets,the statement of net position will sometimes report a separate section for deferred outflows of resources.This separate financial statement element, deferred outflows of resources,represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until that time. Deferred outflows of resources related to pensions and OPEB are reported in the government-wide and enterprise funds' statements of net position. P. Deferred Inflows of Resources In addition to liabilities,the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element,deferred inflows of resources,represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue)until that time. The City has three items that qualify for reporting in this category.Unavailable revenue is reported in the governmental funds balance sheet and taxes collected in advance is reported in both the statement of net position and governmental funds balance.Unavailable revenue represents billed receivables that do not meet the available criterion in accordance with the current financial resources measurement focus and the modified accrual basis of accounting.Taxes collected in advance represents amount collected related to the fiscal year 20231evy. The third type of deferred inflows of resources reported are related to pensions and OPEB and are reported in the government-wide and enterprise funds' statements of net position. Q. Net Position and Fund Balances Government-Wide Financial Statements and Proprietary Funds Financial Statements (Net Position� Net position represents the residual difference between assets and deferred outflows less liabilities and deferred inflows. Net position is reported as restricted when amounts are restricted by outside parties for a specific future use. Net position has been"restricted"for the following: "OPEB" represents amounts restricted for retiree health insurance benefits pursuant to special legislation enacted in 2002. "Loans" represents amounts outstanding for community development block grant program loans receivable. "Community preservation" represents amounts restricted for the purpose of acquiring land for conservation, recreational,historic preservation,and affordable housing projects. City of Walthain,Massachusetts 45 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 "Permanent funds-expendable"represents amounts held in trust for which the expenses are restricted by various trust agreements. "Permanent funds-nonexpendable' represents amounts held in trust for which only investment earnings may be expended. "Revolving funds" represents amounts restricted for various activities that require a user charge. "Traffic impact" represents amounts restricted for traffic improvements required by special permit. "Parking meters"represents amounts restricted for parking meter and off-street parking lot improvements. "Housing Trust" represents amounts provided for the creation and preservation of affordable housing in the City. "Public safety' represents amounts restricted for public safety purposes. "School lunch" represents amounts restricted for education purposes. "Other specific purposes" represents other restrictions placed on assets from outside parties. Governmental Funds Financial Statements (Fund Balances� The following fund balance classifications describe the relative strength of the spending constraints: Nonspendable — represents amounts that cannot be spent either because they are in nonspendable form(i.e.,loans receivable) or because they are legally or contractually required to be maintained intact(i.e.,principal of permanent fund). Restricted — represents amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors,grantors,contributors, or the laws or regulations of other governments. Committed — represents amounts that can be used only for specific purposes imposed by a formal action(vote) of City Council,which is the highest level of decision-making authority for the City. Committed amounts may be established,modified,or rescinded only through"Council Orders" voted and approved by City Council. Assigned — represents amounts that do not meet the criteria to be classified as restricted or committed but are intended to be used for specific purposes.Under the City's structure,only authorized assignments for non- contractual encumbrances can be made by individual department heads. Unassigned-represents the residual fund balance for the General Fund and the negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting assigned fund balance amounts. In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications,fund balance is depleted in the order of restricted,committed,assigned and unassigned. Encumbrance amounts have been assigned for specific purposes for which resources already have been allocated. R. Long-Term Debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary funds statements of net position. Material bond premiums and discounts are amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. City of Walthain,Massachusetts 46 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources when the debt is issued. Bond premiums and discounts,as well as issuance costs,are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs,whether or not withheld from the actual bond proceeds received,are reported as general government expenditures. S. Leases The City determines if an arrangement is a lease at inception.Leases are included in right-to-use lease assets and lease liabilities in the statement of net position. Lease assets represent the City's control of the right to use an underlying asset for the lease term,as specified in the contract,in an exchange or exchange-like transaction. Right-to-use lease assets are recognized at the commencement date based on the initial measurement of the lease liability.Right-to-Use Lease assets are amortized in a systematic and rational manner over the shorter of the lease term or useful life of the underlying asset. Lease liabilities represent the City's obligation to make lease payments arising from the lease.Lease liabilities are recognized at the commencement date based on the present value of expected lease payments over the lease term, less any lease incentives. Interest expense is recognized ratably over the contract term. The City recognizes payments for short-term leases with a lease term of 12 months or less,including options to extend,as expense as incurred,and these leases are not included in lease liabilities or right-to-use assets in the statement of net position. The individual lease contracts do not provide information about the discount rate implicit in the lease.Therefore, the City has elected to use their incremental borrowing rate to calculate the present value of expected lease payments. T. Investment Income Excluding the permanent funds,investment income derived from major and nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL). Investment income from permanent,proprietary and fiduciary funds is retained by the respective funds. U. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave,which will be liquidated with expendable available financial resources,are reported as expenditures and fund liabilities upon employee retirements and resignations. City of Walthain,Massachusetts 47 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 V. Pensions For purposes of ineasuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions,and pension expense,information about the fiduciary net position of the Waltham Contributory Retirement System(System) and additions to/deductions from the System's fiduciary net position have been determined on the same basis as they are reported by the System.For this purpose,benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.Investments are reported at fair value. W. Other Postemployment Benefits In addition to providing pension benefits,and as more fully described in Note 11,the City provides health,dental and life insurance coverage for current and future retirees and their spouses. X. Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the fiscal year.Actual results could vary from estimates that were used. Y. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column presented on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. NOTE 2-STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY A. Budgetary Information Within 170 days after the annual organization of the City government(which is ordinarily in early January),the Mayor is required to submit a budget of proposed expenditures for the fiscal year beginning on the next July 1. The City Council may make appropriations for the recommended purposes and may reduce or reject any item. Without a recommendation of the Mayor,the Council may not make any appropriation for a purpose not included in the proposed budget,except by a two-thirds vote in the case of the failure of the Mayor to recommend an appropriation for such a purpose within 7 days after a request from the Council.The Council may not increase any item without the recommendation of the Mayor(except as provided by legislation, recommendation of the school committee or regional district school committee and by two-thirds vote of the Council,provided that such increase does not cause the total annual budget to exceed the property tax limitations). If the Council fails to act on any item of the proposed budget within 45 days,that item takes effect. City department heads are generally required to submit their budget requests to the Mayor by the end of February.This does not apply to the school department,which must submit its request in time for the Mayor to include them in the submission to the Council. City of Walthain,Massachusetts 48 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 If the Mayor does not make a timely budget submission,provision is made for preparation of a budget by the Council.Provision is also made for supplementary appropriations upon recommendation of the Mayor.Water and Sewer Department expenditures are included in the budgets adopted by City Council. The majority of appropriations are non-continuing which lapse at the end of each fiscal year.Others are continuing appropriations for which the governing body has authorized that an unspent balance from a prior fiscal year be carried forward and made available for spending in the current fiscal year. Generally,expenditures may not exceed the level of spending(personnel,general,equipment/unusual,capital improvement and special) authorized for an appropriation account.However,the City is statutorily required to pay debt service and certain other obligations,regardless of whether such amounts are appropriated. An annual budget is adopted for the general fund and community preservation fund in conformity with the guidelines described above.The original fiscal year 2022 approved budget for the general fund authorized $265,401,350 in appropriations.During fiscal year 2022 supplemental appropriations totaling$6,475,497 were authorized.The original fiscal year 2022 approved budget for the community preservation fund authorized $177,172 in appropriations. During fiscal year 2022, supplemental appropriations totaling$6,478,678 were authorized.The American Rescue Plan Act(ARPA)fund does not have a legally adopted budget. The Auditor's office has the responsibility to ensure that budgetary control is maintained. Budgetary control is exercised through the accounting system. B. Fund Deficits At June 30,2022,the following governmental fund deficits exist: Fund Amount Funding Source Governmental Funds: City Capital Projects............................... $ 6,706,474 Issuance of Long-Term Debt Police and Fire Detail.............................. 578,840 User Charges and Available Funds School Federal Grants............................. 105,305 Federal Grant City Federal Grants(Public Safety)............ 182,593 Federal Grant Highway Improvement........................... 23,712 Available Funds Total.................................................... $ 7,596,924 NOTE 3-DEPOSITS AND INVESTMENTS Cifiy(excluding the Pension Trust Fund) The municipal finance laws of the Commonwealth authorize the City to invest temporarily idle cash in bank term deposits and certificates of deposits,and U.S.Treasury and Agency obligations,with maturities of one year or less;U.S.Treasury or Agency repurchase agreements with maturities of not more than 90 days;money market accounts;and the state treasurer's investment pool-the Massachusetts Municipal Depository Trust(MMDT).The Treasurer also has expanded investment powers as it relates to certain trust funds (as defined by the Commonwealth),permanent funds and fiduciary funds,which permits investments in equity and other securities. The MMDT is an external investment pool that meets the criteria established under GASB 79 to report its investments at amortized cost.As such,the City reports its investments in MMDT at amortized cost which approximates the net asset value of$1.00 per share. City of Walthain,Massachusetts 49 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 A cash and investment pool is maintained that is available for use by all funds with unrestricted cash and investments.The deposits and investments of the permanent funds,private purpose trust funds and the pension trust fund are held separately from other City funds. A reconciliation of the City's cash and investments (excluding the pension trust fund) is as follows: Total Deposits Investments Primary Government: Cash-Governmental Activities........................ $ 61,434,747 68,611,499 - Restricted Cash-Governmental Activities.......... 161,853,626 154,676,874 2,094,095 Investments-Governmental Activities.............. 21,550,620 - 21,550,620 Cash-Business-Type Activities........................ 20,925,656 20,925,656 - Restricted Cash-Business-Type Activities.......... 2,880,100 2,880,100 - Fiduciary Funds(excluded Pension Trust): Cash-Private Purpose Trust Funds.................. 69,257 - 69,257 Cash-Custodial Funds.................................. 318,169 318,169 - Investments-Private Purpose Trust Funds......... 3,465,455 - 3,465,455 Total $ 272,497,630 247,412,298 27,179,427 Deposits-Custodial Credit Risk Custodial credit risk for deposits is the risk that,in the event of a bank failure,the City's deposits may not be recovered.The City's policy allows unlimited deposits,for up to one year,in bank accounts or CD's that are fully collateralized through a third-party agreement in banking institutions that do not receive the highest bank rating as determined by a recognized bank rating firm.For banking institutions receiving the highest rating no collateralization is required.The City's policy also allows unlimited investments in money market funds,which are allowed by statute and are considered to be liquid funds. As of June 30,2022,$638,656 of the City's bank balance of$246,957,870 was uninsured,uncollateralized and exposed to custodial credit risk.The carrying value of the City's deposits totaled$245,318,203 at June 30,2022. Investments Summary The City's investments at June 30,2022 are presented below.All investments are presented by investment type, with debt securities presented by maturity. Investment Maturities(in Years) Total Less Investment Type Amount Than 1 1-5 6-10 Debt Securities: U.S.Treasuries.................................... $ 4,377,789 $ - $ 3,629,982 $ 747,807 U.S.Agencies..................................... 2,093,449 249,852 1,555,803 287,794 Corporate Bonds................................. 2,227,248 175,746 1,695,958 355,544 Money Market Mutual Funds................ 332,550 332,550 - - Fixed Income Mutual Funds.................. 2,355,928 2,355,928 - - External Investment Pool(MMDT)......... 1,830,800 1,830,800 - - TotalInvestments................................ 13,217,764 $ 4,944,876 $ 6,881,743 $ 1,391,145 Other Investments: Equity Securities.................................. 13,961,663 TotalInvestments................................ $ 27,179,427 City of Walthain,Massachusetts 50 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Investments-Interest Rate Risk of Debt Securities Interest rate risk for debt securities is the risk that changes in interest rates of debt securities will adversely affect the fair value of an investment.The City's investment policy limits maturities to one year,except for the trust funds,which are not limited,as a means of managing its exposure to fair value losses arising from increasing interestrates. Investments-Custodial Credit Risk Custodial credit risk for investments is the risk that,in the event of the failure of the counterparty,the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.The City does not have a policy for custodial credit risk of investments.As of June 30,2022,the City was not exposed to custodial credit risk. Investments-Credit Risk of Debt Securities Credit risk for debt securities is the risk that an issuer or other counterparty to a debt security will not fulfill its obligations.The City's policy is to limit investments in debt securities to government agencies and government sponsored enterprises,with the exception of the trust funds,which are not limited,as means of limiting credit risk.As of June 30,2022,the credit quality ratings of the City's debt securities are as follows: Quality Ratings* Total InvestmentType Amount AAA AA+ A+ A- BBB+ BBB Unrated U.S.AQencies................................... $ 2,093,449 $ 2.093,449 $ - - $ - $ - $ - $ - Corporate Bonds..._.._.._..._.._.._..... 2,227,248 - - 342,194 932,942 613,145 335,967 - Money Market MutuaL Funds.____.__ 332,550 - - - - - - 332,550 Pixed lncome Mutual Punds................ 2,355,928 - 2,355,928 - - - - - External Investment Pools(MMDT).._.. 1,S30,S00 1,83QS00 Total...._.._.._.._..._.._.._.._.._..._... $ 8,539,975 $ 2,093,449 $ 2,355,928 $ 342,194 $ 932,942 $ 613,145 $ 335,967 $ 2,163,350 *Per the rating scale of Standard and Poor's (a national credit rating organization) Investments-Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single issuer.The City does not have a policy for concentration of credit risk.As of June 30,2022,the City was exposed to concentration of credit risk by the below investments. Percenta�e Total of Total Issuer Amount Investments Federal National Mortgage Association $ 1,867,707 6.87% Investments-Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by GAAP.The hierarchy is based on the valuation inputs used to measure the fair value of the asset.Leve11 inputs are quoted prices in active markets for identical assets;Level 2 inputs are significant other observable inputs;Leve13 inputs are significant unobservable inputs. City of Walthain,Massachusetts 51 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 The City has the following recurring fair value measurements as of June 30,2022: Investment Maturities Quoted Prices in Active Markets for Significant Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Investment Type Value (Level l) (Leve12) (Leve13) Investments by Fair Value Level: U.S.Treasuries.............................................................. $ 4,377,789 $ 4,377,789 $ - $ - U.S.A�encies.................................................................. 2,093,449 2,093,449 - - Equity Securities............................................................ 13,961,663 13,961,663 - - Money Market Mutual Funds...................................... 332,550 332,550 - - Fixed Income Mutual Funds............................................ 2,355,928 2,355,928 - - Corporate Bonds............................................................ 2,227,248 - 2,227,248 - Total Investments at Fair Value.............................................. 25,348,627 $ 23,121,379 $ 2,227,248 $ - Investments measured at Amortized Cost: External Investment Pool(MMDT)............................... 1,830,800 TotalInvestments......................................................... $ 27,179,427 Investments classified in Leve11 of the fair value hierarchy are valued using quoted prices in active markets for those securities. Investments classified in Leve12 are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities'relationship to benchmark quoted prices. Pension Trust Fund(The System) The System has expanded investment powers,including the ability to invest in real estate and private equity investments.The investment policy objective states that the assets are to be invested in accordance with sound investment practices that emphasize long-term investment fundamentals.This is accomplished through the retention of investment managers that adhere to M.G.L. Chapter 32,Section 23 (3),the Prudent Person rule. The System has retained an investment consultant to work as a non-discretionary advisor to the Board. The consultant will assist in the development and periodic review of the Investment Policy Statement and the Plan's asset allocations,conduct manager searches when necessary,monitor the performance of the funds,and communicate other matters related to the oversight of the Plan. The System participates in the Pension Reserve Investment Trust(PRIT),which meets the criteria of an external investment pool and operates in accordance with applicable state laws and regulations. The Treasurer of the Commonwealth serves as Trustee and provides regulatory oversight. The System does not have the ability to control any of the investment decisions related to its funds in PRIT. Deposits-Custodial Credit Risk Custodial credit risk for deposits is the risk that,in the event of a bank failure,the System's deposits may not be recovered.The System does not have a policy for custodial credit risk of deposits.As of December 31,2021,the System was not exposed to custodial credit risk.The System's deposits totaled$23,749 at December 31,2021. City of Walthain,Massachusetts 52 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Investments SummarV The System's investments at December 31,2021 are presented below. All investments are presented by investment type with debt securities presented by maturity. Investment Maturities (in Years) Total Less Investment Type Amount Than 1 Debt Securities: Money Market Mutual Funds....................... $ 40,312 $ 40,312 Fixed Income Mutual Funds......................... 77,991,520 77,991,520 External Investment Pools(PRIT).................. 83,121,006 83,121,006 Total Debt Securities.................................. 161,152,838 $ 161,152,838 Other Investments: Equities and Equity Mutual Funds................. $ 188,743,859 Private Equity Funds.................................. 3,617 Total Other Investments............................. 188,747,476 TotalInvestments....................................... $ 349,900,314 Investments-Custodial Credit Risk Custodial credit risk for investments is the risk that,in the event of the failure of the counterparty,the System will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The System does not have a policy for custodial credit risk. As of December 31, 2021, the System's investments were not exposed to custodial credit risk. Investments-Credit Risk of Debt Securities Credit risk for debt securities is the risk that an issuer or other counterparty to a debt security will not fulfill its obligations.The System does not have a policy for credit risk of debt securities.As of December 31,2021,the System's debt securities were unrated by a national credit rating organization. Investments-Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the System's investment in a single issuer.The System does not have a policy for concentration of credit risk.As of December 31,2021,the System was not exposed to concentration of credit risk. Investments-Forei�n Currency Risk Foreign currency risk is the risk that fluctuations in exchange rates will adversely affect the fair value of an investment or a deposit.The System does not have a policy for foreign currency risk.As of December 31,2021,the System was not exposed to foreign currency risk. Investments-Fair Value Measurements The System categorizes its fair value measurements within the fair value hierarchy established by GAAP.The hierarchy is based on the valuation inputs used to measure the fair value of the asset.Leve11 inputs are quoted prices in active markets for identical assets;Level 2 inputs are significant other observable inputs;Leve13 inputs are significant unobservable inputs. City of Walthain,Massachusetts 53 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 The System has the following recurring fair value measurements as of December 31,2021: Quoted Prices in Active Markets Significant Other Significant for ldentical Observable Unobservable Fair Assets Inputs Inputs Investment Type Value (Level 1) (Leve12) (Leve13) Equitv Securities: Equities and Equity Mutual Funds......................................... $ 188,743,859 $ 188,743,859 $ - $ - Total Equiry Securities...................................................... 188,743,859 788,743,859 - - Debt Securities: Money Market Mutual Funds................................................... 4Q312 4Q312 - - Fixed Income Mutual Funds...................................................... 77,991,520 77,991,520 - - External Investment Pool(PRIT)................................................... 83,121,006 - 83,121,006 - Total Investments by Fair Value Level................................... 349,896,697 $ 266,775,691 $ 83,121,006 $ - Investments measured at the NAV: PrivateEquiry......................................................................... 3,617 Total Investments Measured at the NAV................................. 3,617 Total Investments Measured at Fair Value.............................. $ 349,900,314 Investments classified in Leve11 of the fair value hierarchy are valued using quoted prices in active markets for those securities. The PRIT fund is an external investment pool (level2)that is not registered with the Securities and Exchange Commission,but is subject to oversight provided by the Pension Reserves Investment Management Board (the PRIM Board).The PRIM Board was created by legislation to provide general supervision of the investments and management of PRIT.PRIT is not a rated fund.The fair value of the PRIT pooled fund is based on unit value as reported by management of the PRIT fund.The PRIT fund issues separately available audited financial statements.The Plan is required to provide a 30 day redemption notice for this investment. The valuation method for investments measured at the net asset value (NAV)per share (or its equivalent)is presented in the following table: Redemption Fair Unfunded Redemption Notice Value Commitments Frequency Period Private Equity(1).................................................................... $ 3,617 $ 445,352 N/A N/A Total Investments Measured at the NAV................................. $ 3,617 (1) Private Equity:This type includes 1 private equity fund that consist primarily of limited partnership interests in private equity and venture capital funds.The fair values of the investment in this type has been determined using the NAV per share (or its equivalent) of the System's ownership interest in partners' capital.The remaining investment can never be redeemed with the funds.Distributions from these funds will be received as the underlying investments of the funds are liquidated. It is expected that the underlying asset will be liquidated over the next year. City of Walthain,Massachusetts 54 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 4-ACCOUNTS RECEIVABLE At June 30,2022,receivables for the individual major governmental funds and nonmajor governmental,internal service,and fiduciary funds in the aggregate,including the applicable allowances for uncollectible accounts, consist of the following: Allowance Gross for Net Amount Uncollectibles Amount Receivables: Real Estate and Personal Property Taxes..... $ 1,623,567 $ - $ 1,623,567 Real Estate Tax Deferrals......................... 173,123 - 173,123 Tax Liens............................................. 673,529 - 673,529 Motor Vehicle and Other Excise Taxes....... 2,276,792 (1,518,749) 758,043 Community Preservation Taxes................ 63,088 - 63,088 Special Assessments............................... 5,333 - 5,333 Departmental and Other......................... 1,723,277 (552,320) 1,170,957 Intergovernmental................................. 6,974,250 - 6,974,250 Loans.................................................. 1,658,455 - 1,658,455 $ 15,171,414 $ (2,071,069) $ 13,100,345 At June 30,2022,receivables for the water and sewer enterprise funds consist of the following: Allowance Gross for Net Amount Uncollectibles Amount Receivables: User Charges........................................ $ 3,976,098 $ - $ 3,976,098 Water and Sewer Liens........................... 119,584 - 119,584 $ 4,095,682 $ - $ 4,095,682 City of Walthain,Massachusetts 55 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 5-CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30,2022,was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets Not Being Depxeciated: Land.............................................................................. $ 61,726,210 $ 23,403,804 $ - $ 85,130,014 Construction In Pro�ress.................................................... 52,577,903 78,578,941 (3,053,209) 128,103,635 Total Capital Assets Not Being Depreciated....................... 114,304,113 101,982,745 (3,053,209) 213,233,649 Capital Assets Being Depreciated: Land Improvements.......................................................... 38,957,462 ll6,000 - 39,073,462 Buildings and Improvements.............................................. 259,301,014 3,844,322 - 263,145,336 Right-to-Use Leased Buildings............................................. - 15,569,193 - 15,569,193 Equipment....................................................................... 35,631,386 601,505 (726,101) 35,506,790 Infrastructure................................................................... 88,148,227 229,519 - 88,377,746 Library Books.................................................................. 1,665,690 406,952 (281,019) 1,791,623 Total Capital Assets Being Depreciated............................. 423,703,779 20,767,491 (1,007,120) 443,464,150 Less Accumulated Depreciation For: Land Improvements.......................................................... (18,915,062) (1,779,341) - (2Q694,403) Buildin�s and Improvements.............................................. (117,093,828) (6,347,240) - (123,441,068) Right-to-Use Leased Buildings............................................. - (516,090) - (516,090) Equipment....................................................................... (27,664,383) (1,720,308) 726,101 (28,658,590) Infrastructure................................................................... (55,474,652) (4,249,971) - (59,724,623) Library Books.................................................................. (800,334) (345,732) 281,019 (865,047) Total Accumulated Depreciation...................................... (219,948,259) (14,958,682) 1,007,120 (233,899,821) Total Capital Assets Bein�Depreciated,Net.............................. 203,755,520 5,808,809 - 209,564,329 Total Governmental Activities Capital Assets,Net....................... $ 318,059,633 $ 107,791,554 $ (3,053,209) $ 422,797,978 Beginning Ending Balance Increases Decreases Balance Sewer Enterprise Fund: Capital Assets Not Being Depreciated: Land.............................................................................. $ 38,550 $ - - $ 38,550 Construction In Progress.................................................... 429,665 3,299,665 - 3,729,330 Total Capital Assets Not Bein�Depreciated....................... 468,215 3,299,665 - 3,767,880 Capital Assets Being Depreciated: Buildin�s and Improvements.............................................. 3,185,587 - - 3,185,587 Equipment....................................................................... 2,477,066 16,615 (18,026) 2,475,655 Infrastructure................................................................... 55,225,779 49,290 - 55,275,069 Total Capital Assets Being Depreciated............................. 60,888,432 65,905 (18,026) 60,936,311 Less Accumulated Depreciation For: Buildings and Improvements.............................................. (2,073,462) (53,735) - (2,127,197) Equipment....................................................................... (1,690,386) (166,374) 18,026 (1,838,734) Infrastructure................................................................... (27,059,605) (947,598) - (28,007,203) Total Accumulated Depreciation...................................... (30,823,453) (1,167,707) 18,026 (31,973,134) Total Capital Assets Bein�Depreciated,Net............................... 30,064,979 (1,101,802) - 28,963,177 Total Sewer Enterprise Capital Assets,Net................................. $ 30,533,194 $ 2,197,863 $ - $ 32,731,057 City of Walthain,Massachusetts 56 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Beginning Ending Balance Increases Decreases Balance Water Enterprise Fund: Capital Assets Not Being Depreciated: Construction in Progress.................................................... $ - $ 1,866,469 $ - $ 1,866,469 Total Capital Assets Not Being Depreciated....................... - 1,866,469 - 1,866,469 Capital Assets Being Depreciated: Buildin�s and Improvements.............................................. 1,104,422 - - 1,104,422 Equipment....................................................................... 3,568,262 40,627 (58,495) 3,550,394 Infrastructure................................................................... 28,455,737 - - 28,455,737 Total Capital Assets Being Depreciated............................. 33,128,421 40,627 (58,495) 33,110,553 Less Accumulated Depreciation For: Buildings and Improvements.............................................. (1,104,422) - - (1,104,422) Equipment....................................................................... (2,903,968) (158,602) 58,495 (3,004,075) Infrastructure................................................................... (15,266,497) (510,935) - (15,777,432) Total Accumulated Depreciation...................................... (19,274,887) (669,537) 58,495 (19,885,929) Total Capital Assets Bein�Depreciated,Net............................... 13,853,534 (628,910) - 13,224,624 Total Water Enterprise Capital Assets,Net................................. $ 13,853,534 $ 1,237,559 $ - $ 15,091,093 Beginning Ending Balance Increases Decreases Balance Veterans Memorial Rink Enterprise Fund: Capital Assets Being Depreciated: Buildin�s and Improvements.............................................. $ 102,355 $ - $ - $ 102,355 Equipment....................................................................... 770,939 - - 770,939 Total Capital Assets Being Depreciated............................. 873,294 - - 873,294 Less Accumulated Depreciation For: Buildings and Improvements.............................................. (62,243) (6,278) - (68,521) Equipment....................................................................... (231,181) (43,810) - (274,991) Total Accumulated Depreciation...................................... (293,424) (50,088) - (343,512) Total Veterans Memorial Rink Enterprise Capital Assets,Net........ $ 579,870 $ (50,088) $ - $ 529,782 Total Business-Type Activities Capital Assets,Net....................... $ 44,966,598 $ 3,385,334 $ - $ 48,351,932 Depreciation expense was charged to functions/programs of the primary government as follows: Depreciation Governmental Activities: General Government..................................................... $ 381,924 Public Safety............................................................... 1,917,547 Education................................................................... 5,322,036 Public Works............................................................... 4,136,168 Health and Human Services........................................... 61,382 Culture and Recreation.................................................. 1,543,440 Community Development.............................................. 1,596,185 Total Depreciation Expense-Governmental Activities.................. $ 14,958,682 Depreciation Business-Type Activities: Sewer......................................................................... $ 1,167,707 Water......................................................................... 669,537 Veterans Memorial Rink................................................ 50,088 Total Depreciation Expense-Business-Type Activities................. $ 1,887,332 City of Walthain,Massachusetts 57 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 6-NET INVESTMENT IN CAPITAL ASSETS The City's net investment in capital assets at June 30,2022,is summarized as follows: Governmental Activities Capital Assets................................................ $ 656,697,799 Less Accumulated Depreciation......................... (233,899,821) Right-to-Use Assets......................................... 15,569,193 Less Accumulated Amortization........................ (516,090) Less Outstanding Bonds and Notes Payable......... (244,162,966) Less Lease Liability......................................... (15,134,884) Add Unspent Proceeds of Capital Related Debt..... 82,306,211 Net Investment in Capital Assets........................ $ 260,859,442 Business-Type Activities Capital Assets................................................ $ 100,554,507 Less Accumulated Depreciation......................... (52,202,575) Less Outstanding Bonds and Notes Payable......... (18,521,575) Add Unspent Proceeds of Capital Related Debt..... 2,869,678 Net Investment in Capital Assets........................ $ 32,700,035 NOTE 7-INTERFUND RECEIVABLES,PAYABLES AND TRANSFERS Receivables and payables between funds at June 30,2022 are summarized as follows: Receivable Fund Payable Fund Amount General Fund............ School Federal Grants Nonmajor Fund.......................... $ 550,689 (1) General Fund............ Police and Fire Detail Nonmajor Fund........................... 516,219 (1) General Fund............ Public Safety Federal Grants Nonmajor Fund.................. 204,882 (1) General Fund............ Federal Partnership Nonmajor Fund............................. 97,393 (1) General Fund............ Highway Projects Nonmajor Fund................................ 23,712 (1) General Fund............ Community Development Fund................................... 7,904 (1) $ 1,400,799 (1) Represents temporary cash advances to the respective funds. Interfund transfers for the fiscal year ended June 30,2022 are summarized as follows: Transfers In: Veterans Memorial Rink General Enterprise Transfers Out: Fund Fund Total General Fund............................................. $ - $ 218,250 $ 218,250 ARPA Fund.................................................. 7,000,000 - 7,000,000 Nonmajor Governmental Fund.................... 89,000 - 89,000 $ 7,089,000 $ 218,250 $ 7,307,250 (1) Represents budgeted transfers to Veterans Memorial Rink fund ($218,250). (2) Represents budgeted revenue replacement revenue from the ARPA fund($7,000,000). (3) Represents budgeted transfers from library state aid ($88,000) and insurance recovery($1,000). City of Walthain,Massachusetts 58 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 8-SHORT-TERM FINANCING Short-term debt may be authorized and issued to fund the following: • Current operating costs prior to the collection of revenues through issuance of revenue anticipation notes (RAN) or tax anticipation notes (TAN). • Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through issuance of bond anticipation notes (BAN) or grant anticipation notes (GAN). Short-term loans are general obligations and carry maturity dates that are limited by statute.Interest expenditures and expenses for short-term borrowings are accounted for in the general fund and enterprise funds, respectively. The following represents a summary of short-term debt activity related to the City during the fiscal year ended June 30,2022: Govermnental Funds Origination Maturity Interest Balance at Balance at Type DescriVtion Date Date Rate Tune 30,2021 Increases Decreases Tune 30,2022 BAN Prospect Hill Paxk Improvements 1 6/28/2022 4/28/2023 2.16% $ - $ 1,578,500 $ - $ 1,575,500 BAN Prospect Hill Park Improvements 2 6/28/2022 4/28/2023 216% - 345,825 - 345,825 BAN Wayside Rail Trail 6/28/2022 4/28/2023 216% - 7,870,000 - 7,870,000 BAN Land Acquisition(1 Balm Avenue) 6/28/2022 4/28/2023 216% 4,500,000 4,500,000 $ - $ 14,294,325 $ - $ 14,294,325 Sewer Enterprise Funds OxiQination Maturity Interest Balance at Balance at TVPe DescripGon Date Date Rate T�ne 30,2021 Increases Decreases iune 30,2022 BAN SewerImprovements 6/28/2022 4/28/2023 216% $ - $ 105,675 $ $ - $ 105,675 BAN Sewer/SurEaceDrain 6/28/2022 4/28/2023 216% 60Q000 600,000 $ - $ 705,675 $ $ - $ 705,675 NOTE 9-LONG-TERM OBLIGATIONS The following represents a summary of changes that occurred in long-term obligations during the fiscal year ended June 30,2022: Balance Balance June 30, June 30, Current 2021 Increases Decreases 2022 Partion Governmental Activities: Bonds and Notes Payable............................... $ 228,589,702 $ - $ (1Q106,238) $ 218,483,464 $ 11,072,238 Direct Borrowings........................................... 961,000 - (210,000) 757,000 210,000 Unamortized Deferred Premium..................... 12,945,167 - (2,310,990) 10,634,177 950,355 Bonds and Notes Payable,Gross.................. 242,495,869 - (12,627,228) 229,868,641 12,232,593 Lease Liabiliry............................................ - 15,569,193 (434,309) 15,134,884 825,941 Workers'Compensation Claims..................... 349,745 617,292 (515,336) 451,701 451,701 Compensated Absences............................... 9,686,276 3,449,934 (4,224,485) 8,911,725 3,708,206 Total.......................................................... $ 252,531,890 $ 19,636,419 $ (17,801,358) $ 254,366,951 $ 17,218,441 Business-Type Activities: Bonds and Notes Payable............................... $ 13,864,400 $ - $ (1,842,400) $ 12,022,000 $ 1,821,400 Direct Borrowings........................................... 6,255,570 - (1,045,238) 5,210,332 1,048,377 Unamortized Deferred Premium..................... 883,832 - (300,264) 583,568 150,098 Bonds and Notes Payable,Gross.................. 21,003,802 - (3,187,902) 17,815,900 3,019,875 Compensated Absences............................... 382,817 85,689 (177,751) 290,755 129,853 Total.......................................................... $ 21,386,619 $ 85,689 $ (3,365,653) $ 18,106,655 $ 3,149,728 The governmental activities long-term obligations are generally liquidated by the general fund. City of Walthain,Massachusetts 59 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 10-LONG-TERM DEBT Details related to the outstanding indebtedness at June 30,2022,and the debt service requirements are as follows: Bonds and Notes Payable- Governmental Funds Outstanding Outsta�ding Interest at June 30, at June 30, Project Maturiry Date Rate 2021 Issued Redeemed 2022 GeneraL Obli aG tions: BuildingRenovaHons(City).................... 9/17/27 2.00-5.00% $ 323,000 $ - $ (64,000) $ 259,000 SchoolConstruction(MSBAProject)..___. 9/15/28 2.00-5.00% 16,343,102 - (2,921,638) 13/621,4b4 �ana�e�etopa,�„t._..._......._......._...... 9/is�za z.00-s.00i 4z�,000 - �zoe,000� zu,000 �anaa�q��;noa................._......._.._.. 9/is�z� z.00-s.00i z,zoo,000 - �540,000� bbo,000 Streets/Sidewalklmprovements.._...._.._ 9/15/28 3.00-5.00% 320,000 - (40,000) 280,000 StreetRewnstruction._...................._.... 9/15/28 3.00-5.00% 80,000 - (10,000) 70,000 LandAcquisiHon.................................. 2/1/32 3.00-5.00% 1,760,000 - (160,000) 1,600,000 BuildingRenovaHons(City/School).......... 2/1/32 3.00-5.00% 1,275,600 - (130,600) 1,145,000 LandDevelopment..____._____.____. 2�7�27 3.00-5.00% 558,000 - (108,000) 40,000 �n�„�arorPa�;i�rvRe�o�at.................... z/i/v a.00-s.00i so5,000 - ��9,000� zzb,000 c�rvYa=ashu�cu�es........._.._............... z/i/z� a.00-5.00i ziz,000 - �ab,000� i�b,000 Design/Engineering(Recreation)...._....... 2/1/25 3.00-5.00% 56,000 - (16,000) 40,000 BuildingRenovntions(SchooL)_.._.._.._... 2/1/33 2.00-425% 245,000 - (25,000) 220,000 Equipment(School)............................... 2/1/22 2.00-4.00� 55,000 - (55,000) - s��a�,geeno�anons�c�ry�___.____._.. z/i/zs z.00-a.00� za5,000 - �as,000� zao,000 eq��pme�r___._____.___.___.___._. z/i/zz z.00-a.00q 5,000 - �5,000) - �„a�e�etop�n�,t._..._......._......._...... z/i/v z.00-4.00i s55,000 - �95,000� 460,000 s�e�/s�aewau�imPro�em�,r�_......._.._ z/i/zs z.00-4.00i �o,000 - �i45,000� 495,000 Te�n�,oio�y._.._..._.._._..._.._..._.._._.. z/i/zz zoo-4.00r io,000 - �io,000) - LandAcquisiHon.................................. 2/1/33 2.00-425� 575,000 - (50,000) 525,000 LandAcquisiHon................................... 2/1/22 2.00-4.00% 135,000 - (135,000) - Design�Engineering(School).____.____ 5�1�34 2.50-5.00% 90,000 - (10,000) 80,000 Design�Engineering(School).____.____ 5�1�30 2.50-5.00% 4,000 - (5,000) 49,000 BuildingRenovations(City).................... 5/1/24 3.00-5.00� 15,000 - (5,000) 10,000 Street/Sidewalklmprovements_.__._.._.. 5/1/24 3.00-5.00% 630,000 - (210,000) 420,000 Signals&Communications._.........._.._.. 5/1/24 3.00-5.00% 15,000 - (5,000) 10,000 Revaluafion(Assessor)........................... 5/1/24 3.00-5.00% 40,000 - (15,000) 25,000 Street/Sidewalklmprovements................ 5/1/24 3.00-5.00% 75,000 - (25,000) 50,000 �„aa�q��a�non___.____._____.___. 5/i/aa zso-5.o0� zeo,000 - �zo,000� zao,000 ey�Pmear�s�t,00q....._........._..._......._ e�is�zz 4.00i z5,000 - �z5,000) - ��aa�q��;noa................._......._...._ e�is�ae a.00-4.00i �a5,000 - �55,000� �so,000 l.andAcquisition..._..._.._..._._..._.._... 6/15/36 3.00-4.00% 695,000 - (45,000) 650,000 BuildingRenovations(City)._.._.._..._.._. 6/15/27 4.00% 140,000 - (25,000) 115,000 Sidewalks Main&Moodv....................... 6/15/27 4.00% 1,200,000 - (200,000) 1,000,000 SidewalksMain&Moody____.___._.__ 6�15�27 4.00% 1,375,000 - (230,000) 1,14,000 s�e�/staewaix�mPro�emenr�._.__...__. 6�is�z� 4.00i i,soo,000 - �soo,000� i,5oo,000 s�e�/s�aewau�ia,P�o�ea,enr�.............._ e�is�z� 4.00� sao,000 - �i4o,000� �oo,000 s�e�/s�aewau�ia,P�o�ea,enr�.............._ e�is�z� 4.00� boo,000 - �ioo,000� soo,000 squ�pmeat�F�re�_.._._...._.._......._...__. e/is/22 4.00i ies,000 - �ie5,000) - Equipment(PubGcWoeks).__............._... 6/15/22 4.00% 105,000 - (105,000) - Signals&Communicafions(Police).......... 6/15/26 4.00% 25,000 - (5,000) 20,000 PublicLightingMain&Moodv.__..____. 6/15/25 4.00 0 500,000 - (125,000) 375,000 PublicLighlingMain&Moodv.__..____. 6/15/26 4.00 0 615,000 - (125,000) 490,000 ae�atuaeon�nssesso��_.._......._..........._ e�is�ze 4.00i �o,000 - �i5,000� s5,000 ��a�e�etop�,�,c�xe��eaeon�............._ e/i5/so 4.00i zz5,000 - �z5,000� zoo,000 l.andDeveLopmc�t(Reaeation)._._..._.._ 6/15/30 4.00% 495,000 - (55,000) 440,000 LandDevelopment(Recreafion)............... 6/15/32 4.00% 225,000 - (25,000) 200,000 LandDevelopment(Recreafion)............... 6/15/31 4.00% 800,000 - (80,000) 720,000 Te�i,noiogy(n�a�ror�____.____._____ 6�is�zz 4.00i 5,000 - �5,000) - eq��pmear��re�_.__.._....__.____.__.. z/i/z4 s.00/ izo,000 - �90,000� so,000 ey�pmear�;re�..__.._..............._..._... z/i/z4 5.00i sn5,000 - �n5,000� zso,000 Equipment(CPW)._.._..._.._.._..._.._.... 2/1/22 5.00$0 5,000 - (5,000) - Equipment(CPW)._._................._.._.... 2/1/24 5.0090 600,000 - (200,000) 400,000 Street/Sidewalklmprovements................ 2/1/24 5.00% 135,000 - (45,000) 90,000 LandAcquisfion(Sfigmafine's)............... 2/1/48 3.00-5.00% 17,040,000 - (635,000) 16,405,000 Design�Engineering(Traffic)_..__.....___..... 5�1�24 5D0% 195,000 - (65,000) 130,000 Design/Engineering(Traffic)................_...... 5/1/24 5.00% 55,000 - (20,000) 35,000 Te�t,notosr(a�a;ro��..................................._ s/i/zs s.00i io,000 - �5,000� 5,000 Street/Sidewalklmprovements_.___._........ 5/1/30 5.0090 175,000 - (20,000) 155,000 squ�pmeat�cPw�...._........_.._..._.._.... s/i/24 s.00� i5,000 - �s,000� io,000 Street/Sidewalklmprovemen[s.................... 5/1/30 5.00% 870,000 - (100,000) 770,000 S�eet�Sidewalk]mprovements__.........___. 5�1�30 5D0% 350,000 - (4,000) 335,000 LandDeveLopmeni(Recreation)___...____.. 5�1�34 3375-5.00% 970,000 - (75,000) 895,000 BuildingConstruction(Fire).._..................... 5�1�49 3375-5.00% 9,850,000 - (190,000) 9,660,000 LandDeveLopmeni(Recreation)................._ 5�1�34 3375-5.00% 1,645,000 - (130,000) 1,515,000 Street/Sidewalklmprovements...___........... 5/1/30 5.00% 1,125,000 - (125,000) 1,000,000 l.andDeveLopment(Becreation)_................. 5/1/34 5.00% 2,055,000 - (160,000) 1,895,000 Street/Sidewalklmprovements.................... 5/1/30 5.00% 990,000 - (110,000) 850,000 LandAcquisition(SHgmatine's)_.__...._.. 5�1�49 3.375-5.00% 10,835,000 - (210,000) 70,625,000 HighSchoolConstruction.....____.......____.. 10�15�50 2.00-5.00% 143,950,000 - (785,000) 143,165,000 Direct Borrowines: HUD Loan................................_.....__............. 6/30/26 0.00",6 961,000 - (210,000) 751,000 SubtotnL_......................._......._..__... 229550,702 - (10,316,238) 219,234,464 Add:UnamortizedPremium..._.._.._.._.. 12,945,167 - (2,310,990) 10,634,177 TotalGovernmentalFunds._____.____.. $ 242,495,869 $ - $ (12,627,225) $ 229,868,641 City of Walthain,Massachusetts 60 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Debt service requirements for principal and interest for governmental funds in future fiscal years are as follows: General Obligations Direct Borrowings Fiscal Year Principal Interest Principal Interest Total 2023............... $ 11,072,238 $ 6,929,799 $ 210,000 $ - $ 18,212,037 2024............... 11,102,238 6,453,792 210,000 - 17,766,030 2025............... 10,452,238 5,976,147 210,000 - 16,638,385 2026............... 9,463,238 5,529,188 121,000 - 15,113,426 2027............... 8,803,238 5,126,737 - - 13,929,975 2028............... 7,253,238 4,741,271 - - 11,994,509 2029............... 7,294,236 4,408,598 - - 11,702,834 2030............... 6,647,600 4,074,069 - - 10,721,669 2031............... 6,412,600 3,745,850 - - 10,158,450 2032............... 6,532,600 3,486,072 - - 10,018,672 2033............... 6,395,000 3,283,503 - - 9,678,503 2034............... 6,495,000 3,085,024 - - 9,580,024 2035............... 6,265,000 2,908,449 - - 9,173,449 2036............... 6,385,000 2,765,019 - - 9,150,019 2037............... 6,405,000 2,618,961 - - 9,023,961 2038............... 6,540,000 2,473,063 - - 9,013,063 2039............... 6,665,000 2,320,784 - - 8,985,784 2040............... 6,810,000 2,162,294 - - 8,972,294 2041............... 6,950,000 1,999,349 - - 8,949,349 2042............... 7,100,000 1,832,913 - - 8,932,913 2043............... 7,260,000 1,659,263 - - 8,919,263 2044............... 7,415,000 1,478,095 - - 8,893,095 2045............... 7,590,000 1,289,168 - - 8,879,168 2046............... 7,760,000 1,092,055 - - 8,852,055 2047............... 7,950,000 889,163 - - 8,839,163 2048............... 8,140,000 681,256 - - 8,821,256 2049............... 7,710,000 464,181 - - 8,174,181 2050............... 6,720,000 256,375 - - 6,976,375 2051............... 6,895,000 86,188 - - 6,981,188 Total $ 218,483,464 $ 83,816,626 $ 751,000 $ - $ 303,051,090 City of Walthain,Massachusetts 61 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Bonds and Notes Payable-Enterprise Funds Sewer Enterprise Outstanding Outstanding Interest at June 30, at June 30, Project Maturity Date Rate 2021 Issued Redeemed 2022 General Obligations: Sewer Improvements............................. 11/15/26 2.00-5.00% $ 1,075,000 $ - $ (220,000) $ 855,000 Sewerlmprovements............................. 9/15/28 4.00% 282,000 - (34,000) 248,000 Sewer Equipment.................................. 9/15/28 2.00-5.00% 96,000 - (12,000) 84,000 Sewer Improvements............................. 2/1/32 3.00-5.00% 1,460,050 - (133,550) 1,326,500 Sewer Improvements............................. 2/1/32 3.00-5.00% 2,124,250 - (193,750) 1,930,500 Traffic&Signal Improvements................ 2/1/22 3.00-5.00% 6,000 - (6,000) - Sewer Improvements............................. 2/1/33 2.00-4.25% 815,000 - (75,000) 74Q000 Sewer Improvements............................. 6/15/24 4.00% 15,000 - (5,000) 10,000 SewerImprovements............................. 6/15/25 4.00% 390,000 - (65,000) 325,000 SewerImprovements............................. 6/15/27 4.00% 210,000 - (35,000) 175,000 SewerImprovements............................. 6/15/27 4.00% 495,000 - (85,000) 410,000 SewerImprovements............................. 6/15/27 4.00% 710,000 - (120,000) 590,000 SewerImprovements............................. 6/15/25 4.00% 400,000 - (100,000) 300,000 Sewer Improvements............................. 6/15/25 4.00% 70,000 - (20,000) 5Q000 Sewer Improvements............................. 2/1/29 3.00-5.00% 1,805,000 - (23Q000) 1,575,000 Sewer Improvements............................. 5/1/35 3.375-5.00% 70,000 - (5,000) 65,000 Direct Borrowin�s: Sewer Improvements(MCWT)................ 7/8/30 2.00% 978,663 - (141,590) 837,073 SewerImprovements(MCWT)................ 7/15/32 2.00% 178,490 - (13,179) 165,311 Sewer Improvements(MWRA)................. 2/15/25 0.00% 235,500 - (58,875) 176,625 Sewer Improvements(MWRA)................. 5/15/29 0.00% 769,901 - (96,238) 673,663 Sewer Improvements(MWRA)................. 2/15/31 0.00% 996,915 - (99,691) 897,224 Subtotal............................................... 13,182,769 - (1,748,873) 11,433,896 Add:Unamortized Premium................... 719,690 - (261,295) 458,395 Total Sewer Enterprise........................... $ 13,902,459 $ - $ (2,010,168) $ 11,892,291 Debt service requirements for principal and interest for the sewer enterprise fund in future fiscal years are as follows: General Obligations Direct Borrowings Fiscal Year Principal Interest Principal Interest Total 2023............... $ 1,328,300 $ 324,468 $ 412,712 $ 18,469 $ 2,083,949 2024............... 1,323,300 272,939 415,916 15,278 2,027,433 2025............... 1,323,300 221,383 419,184 12,023 1,975,890 2026............... 1,142,300 171,023 363,642 8,703 1,685,668 2027............... 962,300 129,989 367,044 5,314 1,464,647 2028............... 672,300 92,267 231,592 3,246 999,405 2029............... 666,300 65,942 232,326 2,526 967,094 2030............... 395,300 41,504 136,840 1,790 575,434 2031............... 395,300 28,734 137,604 1,040 562,678 2032............... 395,300 15,962 16,340 497 428,099 2033............... 70,000 3,270 16,696 167 90,133 2034............... 5,000 338 - - 5,338 2035............... 5,000 168 - - 5,168 Total $ 8,684,000 $ 1,367,987 $ 2,749,896 $ 69,053 $ 12,870,936 City of Walthain,Massachusetts 62 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Water Enterprise Outstanding Outstanding Interest at June 30, at June 30, Project Maturity Date Rate 2021 Issued Redeemed 2022 General Obligations: Water Improvements............................. 9/15/28 410-5.00% $ 95,000 $ - $ (15,000) $ 80,000 Water Improvements............................. 9/15/28 4.00% 678,000 - (91,000) 587,000 Water Improvements............................. 2/1/32 3.00-5.00% 218,900 - (19,900) 199,000 Water Improvements............................. 2/1/32 3.00-5.00% 628,100 - (57,100) 571,000 Water Improvements............................. 2/1/32 3.00-5.00% 276,100 - (25,100) 251,000 Water Improvements............................. 2/1/33 2.00-4.25% 545,000 - (50,000) 495,000 Water Improvements............................. 5/1/34 2.50-5.00% 13Q000 - (10,000) 120,000 Water Improvements............................. 6/15/26 4.00% 25,000 - (5,000) 20,000 Water Improvements............................. 6/15/27 4.00% 235,000 - (40,000) 195,000 Water Improvements............................. 2/1/29 5.00% 280,000 - (35,000) 245,000 Water Improvements............................. 5/1/40 3.50-5.00% 205,000 - (15,000) 190,000 Water Improvements............................. 5/1/24 3.50-5.00% 15,000 - (5,000) 10,000 Water Improvements............................. 5/1/40 3.50-5.00% 145,000 - (10,000) 135,000 Direct Borrowin*s: Water Improvements(MWRA)................ 5/15/23 0.00% 431,290 - (215,645) 215,645 Water Improvements(MWRA)................ 8/15/24 0.00% 191,347 - (47,837) 143,510 Water Improvements(MWRA)................ 5/15/27 0.00% 1,512,000 - (252,000) 1,260,000 Water Improvements(MWRA)................. 11/15/28 0.00% 961,464 - (120,183) 841,281 Subtotal.............................................. 6,572,201 - (1,013,765) 5,558,436 Add:Unamortized Premium................... 135,567 - (23,017) 112,550 Total Water Enterprise........................... $ 6,707,768 $ - $ (1,036,782) $ 5,670,986 Debt service requirements for principal and interest for the water enterprise fund in future fiscal years are as follows: General Obligations Direct Borrowings Fiscal Year Principal Interest Principal Interest Total 2023............... $ 373,100 $ 113,902 $ 635,665 $ - $ 1,122,667 2024............... 373,100 99,801 420,020 - 892,921 2025............... 358,100 85,840 420,019 - 863,959 2026............... 358,100 72,360 372,183 - 802,643 2027............... 348,100 58,682 372,183 - 778,965 2028............... 313,100 45,165 120,183 - 478,448 2029............... 263,100 34,047 120,183 - 417,330 2030............... 177,100 25,053 - - 202,153 2031............... 177,100 18,776 - - 195,876 2032............... 172,100 12,480 - - 184,580 2033............... 70,000 6,668 - - 76,668 2034............... 25,000 3,912 - - 28,912 2035............... 15,000 3,056 - - 18,056 2036............... 15,000 2,550 - - 17,550 2037............... 15,000 2,044 - - 17,044 2038............... 15,000 1,538 - - 16,538 2039............... 15,000 1,031 - - 16,031 2040............... 15,000 524 - - 15,524 Total $ 3,098,000 $ 587,429 $ 2,460,436 $ - $ 6,145,865 City of Walthain,Massachusetts 63 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Veterari s Rink Enterprise Outstanding Outstanding Interest at June 30, at June 30, Project Maturity Date Rate 2021 Issued Redeemed 2022 General Obligations: Veterans Rink Equipment....................... 2/1/24 5.00% $ 365,000 $ - $ (125,000) $ 240,000 Subtotal.............................................. 365,000 - (125,000) 240,000 Add:Unamortized Premium................... 28,575 - (15,952) 12,623 Total Veteran's Rink Enterprise................ $ 393,575 $ - $ (140,952) $ 252,623 Debt service requirements for principal and interest for the veteran's rink enterprise fund in future fiscal years are as follows: General Obligations Fiscal Year Principal Interest Total 2023............... $ 120,000 $ 12,000 $ 132,000 2024............... 120,000 6,000 126,000 Total $ 240,000 $ 18,000 $ 258,000 The Massachusetts Water Resource Authority (MWRA) operates financial assistance programs for community owned collection systems.Financial assistance received from the MWRA consists of non-interest bearing loans (payable in five equal annual installments) and,in some instances,grants. MWRA bonds outstanding at June 30, 2022,totals$1,747,512 and$2,460,436 for sewer and water enterprise funds,respectively. The City is subject to various debt limits by statute and may issue additional general obligation debt under the normal debt limit. At June 30,2022,the City had the following authorized and unissued debt: Purpose Amount WHS Project......................................................... $ 183,467,695 Land Development.................................... 10,136,675 Landfill................................................... 3,234,000 Streets..................................................... 1,897,977 Equipment............................................... 1,891,870 Design/Engineering................................... 464,420 Sewer..................................................... 3,105,411 Water..................................................... 815,891 Total......................................................... $ 205,013,939 City of Walthain,Massachusetts 64 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 11-OTHER POST EMPLOYMENT BENEFITS Plan Description-The City's defined benefit OPEB plan provides health,dental and life insurance coverage for its retirees and their survivors (hereinafter referred to as the"Plan") as a single-employer defined benefit Other Post Employment Benefit(OPEB) plan.Chapter 32B of the MGL assigns authority to establish and amend benefit provisions. Changes to plan design and contribution rates must be accomplished through the collective bargaining process.The Plan does not issue a stand-alone financial report. The City established an Other Post-Employment Benefits trust fund under a special act through the Commonwealth of Massachusetts in 2002.However,the trust is not considered a qualifying trust for reporting purposes under GASB Statement No. 74 and 75.The City's OPEB trust fund fair value as of June 30,2022 is approximately$18.9 million. Of this balance,approximately$2.5 million is attributable to employee contributions received under an ongoing provision of the collective bargaining agreements between the City and its unions. Non-union employees are also required to contribute to the OPEB trust fund. Benefits Provided-The City provides health, dental and life insurance coverage for its retirees and their survivors.The contribution requirements of Plan members and the City are established and may be amended by the City.The required health and dental insurance (including Medicare Part B)contribution rates of Plan members and the City are between 1.0% to 12.5% depending on the plan elected.The Plan members and the City each contribute 50% towards a$5,000 term life insurance premium.The City currently contributes enough money to the Plan to satisfy current obligations on a pay-as-you-go basis.The costs of administering the Plan are paid by the City. Employees covered by benefit terms-At June 30,2022,the following employees were covered by the benefit terms. Active Employees................................ 1,617 Retirees and Survivors.......................... 1,971 Total 3,588 Total OPEB Liability The City's total OPEB liability of$698,910,356 was determined by an actuarial valuation performed as of June 30, 2022 with a measurement date of June 30,2022. Actuarial Assumptions-The total OPEB liability in the June 30,2022 actuarial valuation and other inputs, applied to all periods included in the measurement,unless otherwise specified: Discount Rate: 3.50%,net of investment expenses Healthcare/Medical cost inflation rate: 4.5% for year 2022 and after Age-based Morbidity: Medical costs are adjusted to reflect expected cost increases related to age.The increase in the net costs assumed to be:49 and below-2.6%,50- 54-3.2%,55-59-3.4%,60-64-3.7%,65-69-3.2%,70-74-2.4%,75-79- 1.8%,80 and over-0.0%. City of Walthain,Massachusetts 65 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Mortality (Non-Teachers):It is assumed that both pre-retirement mortality and beneficiary mortality is represented by the RP-2014 Blue Collar Mortality with Scale MP-2014,fully generational. Mortality for retired members for Group 1 and 2 is represented by the RP-2014 Blue Collar Mortality Table set forward five years for males and 3 years for females,fully generational.Mortality for retired members for Group 4 is represented by the RP-2014 Blue Collar Mortality Table set forward three years for males,and six years for females,fully generational.Mortality for disabled members for Group 1 and 2 is represented by the RP-2000 Mortality Table set forward six years.Mortality for disabled members for Group 4 is represented by the RP-2000 Mortality Table set forward two years.Generational adjusting is based on Scale MP-2014. Mortality (Teachers): It is assumed that pre-retirement mortality,retiree mortality and beneficiary mortality is represented by the RP-2014 Blue Collar Mortality with Scale MP-2017,fully generational. For the period after disability retirement,the RP-2000 Combined Healthy Table set forward 2 years is used. Changes in Total OPEB Liabilitv Increase(Decrease) Total OPEB Liability Balances at June 30,2021.................... $ 770,952,361 Changes for the Year: Service Cost.............................. 30,556,354 Interest.................................... 19,749,557 Changes of Assumptions................ (122,439,805) Experience(Gain)and Loss............ 23,287,955 Benefits Payments...................... (23,196,066) Net Changes................................... (72,042,005) Balances at June 30,2022.................... $ 698,910,356 Sensitivity of the total OPEB liability to changes in the discount rate-The following presents the total OPEB liability of the City,as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower(2.5%) or 1-perentage-point higher(4.5%)than the current rate: Current Discount Rate 1% Decrease(2.5%) (3.5%) 1% Increase(4.5%) Total OPEB Liability $ 821,350,161 $ 698,910,356 $ 602,466,952 Sensitivit y of the total OPEB liabilifiy to changes in the healthcare cost trend rates-The following presents the total OPEB liability of the City,as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-perentage-point higher than the current healthcare trend rates: 1% Decrease Current Discount Rate 1% Increase Total OPEB Liability $ 834,322,393 $ 698,910,356 $ 594,855,208 City of Walthain,Massachusetts 66 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30,2022,the City recognized OPEB expenses of$51,160,758. At June 30,2022,the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences Between Expected and Actual Experience......................................................... $ 17,872,152 $ 9,981,894 Changes of Assumptions.................................. 40,591,069 93,965,432 Total $ 58,463,221 $ 103,947,326 The amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ended Tune 30, 2023........................................ $ 854,848 2024......................................... (16,362,814) 2025......................................... (23,058,570) 2026......................................... (6,917,569) Total $ (45,484,105) NOTE 12-RISK FINANCING The City is exposed to various risks of loss related to torts;theft of,damage to and destruction of assets;errors and omissions;and natural disasters for which the City carries commercial insurance. In addition,the City is self- insured for damages not covered by commercial insurance.The amount of claim settlements has not exceeded insurance coverage in any of the previous three fiscal years. The City participates in premium-based healthcare plans for its active employees and retirees,as well as being self-insured.These activities are accounted for in the City's internal service fund where revenues are recorded when earned and expenses are recorded when the liability is incurred. The City is also self-insured for its workers'compensation and unemployment compensation activities. City of Walthain,Massachusetts 67 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 A. Health Insurance Health insurance claims are administered by a third party administrator and are funded from the City's internal service fund.The estimate of"Incurred But Not Reported (IBNR)" claims is based on approximately one month claims paid average.The City purchases individual stop loss insurance for claims in excess of the coverage provided by the City in the amount of$300,000 per claim. At June 30,2022,the amount of the liability for health insurance claims totaled$3,162,809. Changes in the reported liability since July 1,2020,are as follows: Current Year Balance at Claims and Balance at Beginning of Changes in Claims Fiscal Fiscal Year Estimate Payments Year-end Fiscal year 2021.......... $ 2,740,875 $ 51,254,252 $ (51,285,853) $ 2,709,274 Fiscal year 2022.......... 2,709,274 60,726,113 (60,272,578) 3,162,809 B. Workers'Compensation Workers' compensation claims are administered by the City and are funded on a pay-as-you-go basis from annual appropriations.The estimated future liability is based on history and injury type. The liability at June 30,2022,totaled$451,701. Changes in the reported liability since July 1,2020,are as follows: Current Year Balance at Claims and Beginning of Changes in Claims Fiscal Fiscal Year Estimate Payments Year-end Fiscal year 2021.......... $ 480,922 $ 509,417 $ (640,594) $ 349,745 Fiscal year 2022.......... 349,745 617,292 (515,336) 451,701 City of Walthain,Massachusetts 68 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 13-FUND BALANCES The constraints on fund balances as listed in aggregate in the Governmental Funds Balance Sheet are detailed as follows: Schoo] City Nonmajor Total Capita] ARPA Community Capital Governmental Governmenta] General Projects Fund Presecvation Projects Funds Punds Nonspendable: Permanent Fund Pcincipal................. $ - $ - $ - $ - $ - $ 3,030,285 $ 3,030,285 Restricted: Education................................... - 74,718,360 - - - - 74,718360 Community Preservation................ - - - 14,762,688 - - 14,762,688 OPEB.......................................... lS,912,839 _ _ _ _ _ 18,912,839 Revolving Funds.......................... - - - - - 5,225,931 5,225,931 City Federal Grants........................ - - - - - 3,717 3,717 HUD Federal Grants...................... - - - - - 917,046 917,046 City State Grants........................... - - - - - 644,925 644,925 School State Grants....................... - - - - - 108,066 108,066 Insurance Recovery....................... - - - - - 12,603 12,603 Gifts............................................. _ _ _ _ _ 1,239,970 1,239,970 Sale of Lots/Gcaves...................... - - - - - 528,109 528,109 Revenue Reserve.......................... - - - - - 874,404 574,404 School Lu�ch............................... - - - - - 2519,408 2,519,405 Parking Metecs............................ - - - - - 803,873 503,873 UDAG Nova Biomedical................ - - - - - 53,712 53,712 VocaHonalSchoolResecve.............. - - - - - 28,856 28,856 Public Safery Funds...................... - - - - - 7,051,688 7,051,685 TrafficlmpactFund...................... - - - - - 6,359,727 6,359,727 Walthzm Housing........................ - - - - - 1530,249 1,530,249 StudentActivifies......................... - - - - - 553,804 553,804 CemeteryTrustFunds._._....._._._ - - - - - 30,011 30,011 OtherPermanentPunds._._._._._.. - - - - - 431,159 431,159 Subtotal-Restricted._............... 18,912,839 74,718,360 - 14,762,688 - 28,917,258 137,311,145 CommiHed: DebtService_...._......._._._._._... 39,163 - - - - - 39,163 GeneralGovernment........._._....... 277,032 - - - - - 277,032 PublicSafety.._._..............__.._..... 214,556 - - - - - 214,556 Education._..._._._..................... _ _ _ Public Works.........._._................ 746,278 - - - - - 746,278 Health and Human Services_.......... 11,320 - - - - - 11,320 Cu]tureandRecreation._...._._._._ 99,482 - - - - - 99,482 CommunityDevelopment_.__.._._ 894,715 - - - - - 894,715 Subtota]-Committed_._._._._.. 2,282,546 - - - - - 2,282546 Assigned: GeneralGovernment.._._._._._.... 643,796 - - - - - 643,796 PublicSafety.._...._._......._._____. 1,405,515 - - - - - 1,405,515 Education._..._._._.._._._._._..... 1,140,762 - - - - - 1,140,762 Public Works............................... 906,563 - - - - - 906 563 HealthandHumanServices_...._.... 42,440 - - - - - 42,440 Cu]tureandRecreation...._...._._... 12,271 - - - - - 12,271 CommunityDevelopment....._.._... 74,005 - - - - - 74,005 Subtota]-Assigned_._._.._._._. 4,225,352 - - - - - 4,225,352 Unassigned_._._.__.._.__.._.._____... 51,O1Q464 - - - (6,706,474) (890,450) 43,413540 $ 76,431,201 $ 74,718,360 $ - $ 14,762,688 $ (6,706,474) $ 31,057,093 $ 190,262,868 NOTE 14-STABILIZATION FUNDS The City maintains stabilization funds that were established under MGL Chapter 40,Section 5B.Appropriations into the stabilization funds require majority City Council approval,while transfers out require a two-thirds approval. Investment income is retained by the funds. The balance of the general stabilization fund totals$1,452,917 at June 30,2022 and is reported in the general fund as unassigned fund balance.The balances of the debt service,historical preservation and fire stabilization funds total$39,163,$25,000,and$85,respectively,at June 30,2022.These funds require City Council approval to be used for the intended purposes and therefore are reported as committed fund balance in the general fund. City of Walthain,Massachusetts 69 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 15-PENSION PLAN General Information about the Pension Plan Plan Description. The City contributes to the System,a cost-sharing multiple-employer defined benefit pension plan administered by the Waltham Contributory Retirement Board.Substantially all employees of the City are members of the System,except for public school teachers and certain administrators who are members of the Massachusetts Teachers Retirement System(See Note 16). Membership in the System was as follows at December 31,2021: Active Members......................................................... 915 Inactive Members....................................................... 160 Disabled Members....................................................... 101 Retirees and Beneficiaries Currently Receiving Benefits...... 695 Total 1,871 As identified in Note 1,the System is reported as a pension trust fund in these financial statements.The System also issues a publicly available report in accordance with guidelines established by the Commonwealth's Public Employee Retirement Administration Commission.That report may be obtained by contacting the System located at 25 Lexington Street,Waltham,Massachusetts 02452. Benefits provided. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. The plan provides for retirement allowance benefits up to a maximum of 80% of a member's highest three-year average annual rate of regular compensation for those hired prior to Apri12,2012. For persons who became members on or after Apri12,2012,average salary is the average annual rate of regular compensation received during the five consecutive years that produce the highest average,or,if greater,during the last five years (whether or not consecutive)preceding retirement. Benefit payments are based upon a member's age, length of creditable service,level of compensation,and group classification. There are three classes of inembership in the plan; Group 1, Group 2 and Group 4. Group 1 consists of general employees which includes clerical and administrative positions. Group 2 consists of positions that have been specified as hazardous. Lastly,Group 4 consists of police officers,firefighters,and other hazardous positions. Members become vested after 10 years of creditable service.A superannuation retirement allowance may be received upon the completion of 20 years of service or upon reaching the age of 55 with 10 years of service if hired after 1978 and if classified in groups 1 or 2.A person who became a member on or after Apri12,2012 is eligible for a superannuation retirement allowance upon reaching the age of 60 with 10 years of service if in group 1,50 years of age with 10 years of service if in group 2,and 55 years of age if hired prior to 1978 or if classified in group 4. Normal retirement for most employees occurs at age 65 (except for certain hazardous duty and public safety positions,whose normal retirement is at age 55). City of Walthain,Massachusetts 70 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 A retirement allowance consists of two parts: an annuity and a pension.A member's accumulated total deductions and the interest they generate constitute the annuity.The differential between the total retirement benefit and the annuity is the pension.The average retirement benefit is approximately 80-85% pension and 15- 20% annuity. When a member's retirement becomes effective,their deductions and related interest are transferred to the Annuity Reserve Fund.Any cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth of Massachusetts' state law during those years are borne by the Commonwealth and are deposited into the Pension Fund. Cost-of-living adjustments granted after 1997 must be approved by the System and all costs are borne by the System. Members who become permanently and totally disabled for further duty may be eligible to receive a disability retirement allowance. The amount of benefits to be received in such cases is dependent on several factors, including whether or not the disability is work related,the member's age,years of creditable service,level of compensation,veterans' status and group classification. Survivor benefits are extended to eligible beneficiaries of inembers whose death occurs prior to or following retirement. Pursuant to MGL,Chapter 32,Section 3(8)(c),for members leaving a system to work for other Massachusetts governmental units,the System transfers their accumulated account balances and creditable service to the retirement system of their new employer.Other such retirement systems are in turn required to make comparable transfers to the System for employees coming to work for a participating employer.Liability for the service transfer is not calculated until the member's actual retirement date.Per statute,the actuary considers length of service as well as acceptance of military service credit and salary cap provisions (if applicable)in calculating the liability. Contributions. Chapter 32 of MGL governs the contributions of plan members and the City.Plan members are required to contribute to the System at rates ranging from 5% to 9% of annual covered compensation.Members hired in 1979 or subsequent contribute an additional2% of regular compensation in excess of$30,000.The City is required to pay into the System its share of the system-wide actuarial determined contribution that is apportioned among the employers based on annual covered payroll. Cost-of-living adjustments(COLA)must be granted by the Soard and are the responsibility of the System. COLA cannot exceed 3% of the first$12,000 in benefits unless the System elects to increase the maximum base retirement allowance in multiples of$1,000.The System has elected to increase the COLA base to$14,000. For the year ended December 31,2021,active member contributions totaled$7,242,000 and employer contributions totaled$19,800,000. Contributions to the System from the City were$19,209,960 for the year ended June 30,2022. Pension Liabilities,Pension Expense,and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The components of the net pension liability of the System at December 31,2021,were as follows: Total Pension Liability.......................................................... $ 482,789,745 Plan Fiduciary Net Position................................................... (349,775,240) Net Pension Liability $ 133,014,505 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability..................................................................... 72.4% City of Walthain,Massachusetts 71 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 At June 30,2022,the City reported a liability of$129,050,673 for its proportionate share of the net pension liability. The net pension liability was measured as of December 31,2021,and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1,2021.The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers,actuarially determined.At December 31,2021,the City's proportion was 97.0200 percent,which was a decrease of 0.2150 percent from its 97.2350 percent proportion measure as of December 31,2020. For the year ended June 30,2022,the City recognized pension expense of$10,453,990 and support provided by nonemployer contributing entities totaled$669,425. At June 30,2022,the City reported deferred outflows and inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Net Difference Between Projected and Actual Earnings on Pension Plan Investments.......................................... $ - $ 29,855,604 Changes in Assumptions........................... 2,655,177 - Differences Between Expected and Actual Experience.................................. 1,538,607 - Changes in Proportion.............................. 31,572 537,292 Total $ 4,225,356 $ 30,392,896 The amount reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Fiscal Year Ended Tune 30, 2023................................. $ (2,129,780) 2024................................. (12,286,838) 2025................................. (7,387,066) 2026................................. (4,363,856) Total $ (26,167,540) City of Walthain,Massachusetts 72 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed as of January 1,2021. The following actuarial methods and assumptions apply to all periods included in the measurement. Methods: Actuarial Cost Method Entry Age Normal Cost Asset Valuation Method Fair Value Assumptions: Salary Increases 3.5%per year Investment Rate of Return 7•75% Cost of Living Adjustment 3.0% of the lesser of the pension amount and$14,000 per year Mortality It is assumed that mortality is represented by the various SOA Pub- 2010 Public Retirmenet Plans Mortality Tables specific to the Group, Pre-retirement versus Post,Disabled and Beneficiaries,with Scale MP-2018 improvements unti12025. Retirement Rates Hired prior to April 2012:General�mployees-3.6% and 10.2%for males and females,respectively,beginning at age 50 ranging to 100.0%and 100.0%for males and females,respectively,ending at age 80. Police and Fire-3.8%beginning at age 50 ranging to 100.0% at age 65. Hired atter April ZU"1'Z:C�eneral�mployees-U%tor males and females,respectively,beginning at age 50 ranging to 25% and 20% for males and females,respectively,ending at age 80. Police and Fire-1.91%beginning at age 50 ranging to 100.0% at age 65. Investment Policy and Rates of Return. Approximately 22% of the System's investments are in the Pension Reserve Investment Trust (PRIT), which was established by the Treasurer of the Commonwealth of Massachusetts, who serves as Trustee. PRIT is administered by the Pension Reserves Investment Management Board. The fair values of the positions in each investment Pool are the same as the value of each Pool's shares.The System does not have the ability to control any of the investment decisions relative to its funds in PRIT. The System's remaining investments are in money market mutual funds,fixed income and equity mutual funds, real estate and private equity investments. The System's annual money-weighted rate of return on pension plan investments was 15.14%. The money- weighted rate of return expresses investment performance,net of pension plan investment expense,adjusted for the changing amounts actually invested,measured monthly. The pension plari s policy regarding the allocation of invested assets is established by the Retirement Board. Plan assets are managed on a total return basis with a long-term objective of achieving a fully funded status for the benefits provided through the pension plan. City of Walthain,Massachusetts 73 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 The long-term expected rate of return on the system's investments was determined using average return of investments.The target allocation for each major asset class are summarized in the following table: Target Asset Class Allocation U.S.Large Cap.......................................... 6.7% S&P 500 Index........................................... 15.0% U.S.Small/Mid Cap Equity......................... 3.0% U.S.Small/Mid Cap Index.......................... 4.0% World Equity Ex-U.S.................................. 19.0% Emerging Markets Equity............................ 4.0% U.S.High Yield......................................... 3.0% Emerging Markets Debt............................... 3.0% Core Fixed Income..................................... 15.0% U.S.Private Equity..................................... 5.0% Moderate Volatility Hedge.......................... 10.0% Structured Credit....................................... 1.3% Real Estate................................................ 10.0% Timber..................................................... 1.0% Totals 100.0% Discount rate. The discount rate used to measure the total pension liability was 7.75 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that contributions from employers will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions,the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members.Therefore,the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension liability of the System calculated using the discount rate of 7.75%,as well as what the System's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.75%) or 1-percentage-point higher (8.75%) than the current rate: 1% Decrease Current Discount 1% Increase (6.75%) Rate(7.75%) (8.75%) System's Net Pension Liability........ $ 183,521,788 $ 133,014,505 $ 89,952,285 The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 7.75 percent, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.75 percent) or 1-percentage-point higher (8.75 percent)than the current rate: 1% Decrease Current Discount 1% Increase (6.75%) Rate(7.75%) (8.75%) City's Proportionate Share of the Net Pension Liability.............. $ 178,052,839 $ 129,050,673 $ 87,271,707 City of Walthain,Massachusetts 74 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Legally Required Reserve Accounts. The balance in the Systerri s legally required reserves as of December 31, 2021 are as follows: Description Amount Purpose Annuity Savings Fund............ $ 77,768,570 Active Members' Contribution Balance Annuity Reserve Fund............. 19,492,500 Retired Members' Contribution Account Pension Fund........................ 14,291,394 Amounts Appropriated to Fund Future Retirement Pension Reserve Fund............. 238,222,776 Remaining Net Position Total $ 349,775,240 All reserve accounts are funded at levels required by state law. Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is available in this financial report. NOTE 16-MASSACHUSETTS TEACHERS RETIREMENT SYSTEM General Information about the Pension Plan Plan description. Public school teachers and certain administrators are provided with pensions through the Massachusetts Teachers' Retirement System(MTRS),a cost-sharing multiple-employer defined benefit pension plan administered by the Massachusetts Teachers'Retirement Board.The MTRS is part of the Commonwealth of Massachusetts' (Commonwealth)reporting entity and does not issue a stand-alone audited financial report.The MTRS is reported as a Pension Trust Fund in the Commonwealth's audited financial statements that can be obtained at http://www.mass.gov/osc/publications-and-reports/financial-reports/cafr-reports.html. Benefits provided.MTRS provides retirement,disability,survivor and death benefits to members and their beneficiaries.Massachusetts General Laws (MGL)establishes uniform benefit requirements.These requirements provide for superannuation retirement allowance benefits up to a maximum of 80% of a member's highest three- year average annual rate of regular compensation.For employees hired after Apri11,2012,retirement allowances are calculated on the basis of the last five years or any five consecutive years,whichever is greater in terms of compensation.Benefit payments are based upon a member's age,length of creditable service,and group classification.The authority for amending these provisions rests with the Legislature. Members become vested after ten years of creditable service.A superannuation retirement allowance may be received upon the completion of twenty years of creditable service or upon reaching the age of 55 with ten years of service.Normal retirement for most employees occurs at age 65.Most employees who joined the system after Apri11,2012 cannot retire prior to age 60. Contributions.The MTRS'funding policies have been established by Chapter 32 of the MGL.The Legislature has the authority to amend these policies. The annuity portion of the MTRS retirement allowance is funded by employees,who contribute a percentage of their regular compensation.Member contributions for MTRS vary depending on the most recent date of inembership,ranging from 5-9% of regular compensation.Members hired in 1979 or subsequent contribute an additional 2% of regular compensation in excess of$30,000. The Commonwealth is a nonemployer contributor and is required by statute to make all actuarially determined employer contributions on behalf of the member employers.Therefore,the City is considered to be in a special funding situation as defined by GASB Statement No.68,Accounting and Financial Reporting for Pensions and the Commonwealth is a nonemployer contributing entity in MTRS. City of Walthain,Massachusetts 75 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Pension Liabilities,Pension Expense,and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Since the City does not contribute directly to MTRS,the City does not report a proportionate share of the net pension liability of the MTRS at June 30,2022.The Commonwealth's net pension liability associated with the City was$182,299,979. The MTRS' net pension liability was measured as of June 30,2021,and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of January 1,2021 rolled forward to June 30, 2021. For the year ended June 30,2022,the City recognized pension expense of$14,628,814 associated with MTRS and revenue of the same amount for support provided by the Commonwealth. Actuarial assumptions.The MTRS' total pension liability for the June 30,2021 measurement date was determined by an actuarial valuation as of January 1,2021 rolled forward to June 30,2021.This valuation used the following assumptions: Investment rate of return- 7.00% Salary increases-Salary increases are based on analyses of past experience but range from 4.0% to 7.5% depending on length of service Mortality Rates-Pre-retirement reflects Pub-2010 Teachers Employees mortality table projected generationally with Scale MP-2020 (gender distinct).Post-retirement reflects Pub-2010 Teachers Retirees mortality table projected generationally with Scale MP-2018 (gender distinct).Disability reflects Pub-2010 Teachers Retirees mortality table projected generationally with Scale MP-2020 (gender distinct). Other-3.5% interest rate credited to the annuity savings fund and 3.0% cost of living increase per year. Investment assets of the MTRS are with the Pension Reserves Investment Trust(PRIT)Fund.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 rates of return 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 rates of return by the target asset allocation percentage.Best estimates of geometric rates of return for each major asset class included in the PRIT Fund's target asset allocation as of June 30,2021 are summarized in the following table: Long-Term Expected Target Real Rate of Asset Class Allocation Return Global Equity................................ 39.0% 4.8% Core Fixed Income.......................... 15.0% 0.3% Private E ui 13.0% 7.8% q �'................................ Portfolio Completion Strategies.......... 11.0% 2.9% Real Estate..................................... 10.0% 3.7% Value Added Fixed Income.............. 8.0% 3.9% Timber/Natural Resources............... 4.0% 4.3% Totals 100.0% City of Walthain,Massachusetts 76 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 Discount rate.The discount rate used to measure the MTRS'total pension liability was 7.00% (7.15% in prior year). The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rates and the Commonwealth's contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rates. Based on those assumptions, the 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. Pension plan fiduciary net position.Detailed information about the MTRS'fiduciary net position is available in the Commonwealth's audited financial statements. NOTE 17-LEASE LIABILITY A summary of the City's lease terms and interest rates is as follows: Governmental Activities: Building and office space lease.Annual installments ranging from$1,144,710 to$1,406,358 plus interest rate at 2.16%,due date in 2037. Total future minimum lease payments under lease agreements are as follows: Principal Interest Total 2023.................... $ 825,941 $ 318,769 $ 1,144,710 2024.................... 457,671 305,469 763,140 2025.................... 528,073 295,028 823,101 2026.................... 865,464 279,246 1,144,710 2027.................... 950,051 260,071 1,210,122 2028-2032........... 5,482,944 960,138 6,443,082 2033-2037........... 6,024,741 303,870 6,328,611 $ 15,134,885 $ 2,722,591 $ 17,857,476 Right-to-use assets acquired through the lease are disclosed in Note 5. NOTE 18-COMMITMENTS The City has entered into,or is planning to enter into,contracts totaling approximately$318,126,067 for land purchases,equipment,street and sidewalks,buildings and improvements,and water and sewer infrastructure in accordance with its five-year capital improvement plan. Other significant commitments include the encumbrances and continuing appropriations outstanding for the general fund,which totaled$6,402,646 at June 30,2022. City of Walthain,Massachusetts 77 Annual Comprehensive Financial Report Notes to Basic Financial Statements For the Year Ended June 30,2022 NOTE 19-CONTINGENCIES Various legal actions and claims are pending against the City.Litigation is subject to many uncertainties,and the outcome of individual litigated matters is not always predictable.Although the amount of liability,if any,at June 30,2022,cannot be ascertained,management believes any resulting liability should not materially affect the financial position of the City at June 30,2022. The City participates in a number of federal award programs.Although the grant programs have been audited in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance)through June 30,2022, these programs are still subject to financial and compliance audits.The amount,if any,of expenditures which may be disallowed by the granting agencies cannot be determined at this time,although the City expects such amounts,if any,to be immaterial. City of Walthain,Massachusetts 78 Annual Comprehensive Financial Report Required Supplementary Inf ormation City of Walthain,Massachusetts 79 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget REVENUES Real estate and personal property taxes............................. $ - $ 205,802,236 $ - $ 205,802,236 Motor vehicle and other excise taxes................................. - 7,525,800 - 7,525,800 Hotel/motel tax............................................................ - 1,500,000 - 1,500,000 Meals taxes................................................................... - 1,100,000 - 1,100,000 Taxliens...................................................................... - - - - Payments in lieu of taxes................................................ - 72,500 - 72,500 Intergovernmental........................................................ - 34,726,854 - 34,726,854 Special assessments....................................................... - 1,000 - 1,000 Penalties and interest on taxes......................................... - 550,000 - 550,000 Licenses and permits...................................................... - 7,340,700 - 7,340,700 Fines and forfeitures...................................................... - 350,000 - 350,000 Departmental and other................................................. - 1,185,000 - 1,185,000 Investment income........................................................ - 600,000 - 600,000 TOTAL REVENUES......................................... - 26Q754,090 - 260,754,090 EXPENDITURES GENERAL GOVERNMENT City Council Personnel........................................................... - 323,892 - 323,892 General.............................................................. 116 71,115 (286) 70,945 Equipment/Unusual............................................ - 250 286 536 Capital Improvement............................................ 13,464 - - 13,464 Total.................................................................. 13,580 395,257 - 408,837 Mayar's Officc Personnel........................................................... - 316,279 11,448 327,727 General.............................................................. - 24,615 - 24,615 Equipment/Unusual............................................ 223,862 390,725 6,000 620,587 CapitalImprovement............................................ 3,461,310 - 351,100 3,812,410 TotaL................................................................ 3,685,172 731,619 368,548 4,785,339 Auditors Personnel........................................................... - 658,026 - 658,026 General.............................................................. - 7,100 - 7,100 Equipment/Unusual............................................ 301,000 15,000 (301,000) 15,000 Capital Improvement............................................ 806 - - 806 Total.................................................................. 301,806 680,126 (301,000) 680,932 Treasurer and Collector Personnel........................................................... - 909,325 - 909,325 General.............................................................. 12,524 318,400 - 330,924 Equipment/Unusual............................................ 5,000 5,000 - 10,000 Capital Improvement............................................ 4,658 - - 4,658 Total.................................................................. 22,182 1,232,725 - 1,254,907 Assessors Personnel........................................................... - 586,671 (11,448) 575,223 General.............................................................. 6,818 137,770 - 144,588 Total.................................................................. 6,818 724,441 (ll,448) 719,811 City of Walthain,Massachusetts 80 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) $ 205,144,471 $ - $ 205,144,471 $ (657,765) 8,166,999 - 8,166,999 641,199 2,921,240 - 2,921,240 1,421,240 1,537,411 - 1,537,411 437,411 1,380,129 - 1,380,129 1,380,129 11,681 - 11,681 (60,819) 36,305,226 - 36,305,226 1,578,372 1,321 - 1,321 321 781,574 - 781,574 231,574 14,060,917 - 14,060,917 6,720,217 339,295 - 339,295 (10,705) 1,526,915 - 1,526,915 341,915 313,120 - 313,120 (286,880) 272,490,299 - 272,490,299 11,736,209 323,419 - 323,419 473 59,4ll 988 60,399 10,546 250 286 536 - - - - 13,464 383,080 1,274 384,354 24,483 317,168 - 317,168 10,559 21,130 - 21,130 3,485 333,917 257,061 590,978 29,609 3,761,479 37,731 3,799,210 13,200 4,433,694 294,792 4,728,486 56,853 602,094 - 602,094 55,932 5,891 - 5,891 1,209 14,850 - 14,850 150 806 - 806 - 623,641 - 623,641 57,291 855,568 - 855,568 53,757 239,425 12,499 251,924 79,000 1,525 - 1,525 8,475 - 4,658 4,658 - 1,096,518 17,157 1,113,675 141,232 566,331 - 566,331 8,892 128,648 12,950 141,598 2,990 694,979 12,950 707,929 11,882 (continued) City of Walthain,Massachusetts 81 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget Purchasing Personnel........................................................... - 233,426 - 233,426 General.............................................................. 472 13,700 - 14,172 Special............................................................... - 430,000 25,510 455,510 Capital Improvement............................................ 66,938 - - 66,938 TotaL................................................................ 67,410 677,126 25,510 770,046 Trust Funds Personnel........................................................... - 4,000 - 4,000 Law Department Personnel........................................................... 312 1,034,069 - 1,034,381 General.............................................................. 4,569 169,650 - 174,219 Equipment/Unusual............................................ 45,763 100,000 66,500 212,263 Capital Improvement............................................ 1,524 - - 1,524 TotaL................................................................. 52,168 1,303,719 66,500 1,422,387 Building Personnel........................................................... - 1,990,762 - 1,990,762 General.............................................................. 344,353 552,900 - 897,253 Equipment/Unusual............................................ 3,200 - - 3,200 Capital Improvement............................................ 107,155 - - 107,155 Total.................................................................. 454,708 2,543,662 - 2,998,370 Utilities General.............................................................. 31,527 1,200,700 - 1,232,227 Central Telephone Service Personnel........................................................... - 28,538 - 28,538 General.............................................................. 2,396 185,000 - 187,396 Capital Improvement............................................ 35,000 - - 35,000 TotaL................................................................ 37,396 213,538 - 250,934 Human Resources Personnel........................................................... - 342,510 - 342,510 General.............................................................. 1,160 9,900 - 11,060 Equipment/Unusual............................................ 765 35,000 14,000 52,765 Total................................................................. 1,925 390,410 14,000 406,335 Work Study General.............................................................. - 3,000 - 3,000 City Clerk Personnel........................................................... - 412,716 - 412,716 General.............................................................. 1,607 99,925 - 101,532 Equipment/Unusual............................................ - - 1,500 1,500 Capital Improvement............................................ 27,645 - 7,000 34,645 Total.................................................................. 29,252 512,641 8,500 550,393 Information Technology Personnel........................................................... - 1,188,833 - 1,188,833 General.............................................................. 4,410 452,842 - 457,252 Equipment/Unusual............................................ 92,265 30,000 - 122,265 Capital Improvement............................................ 10,895 - 70,000 80,895 TotaL................................................................. 707,570 1,671,675 70,000 1,849,245 City of Walthain,Massachusetts 82 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) 223,785 - 223,785 9,641 9,389 - 9,389 4,783 440,669 - 440,669 14,841 30,000 - 30,000 36,938 703,843 - 703,843 66,203 2,800 - 2,800 1,200 1,026,846 - 1,026,846 7,535 102,225 237 102,462 71,757 125,146 54,000 179,146 33,117 - 1,524 1,524 - 1,254,217 55,761 1,309,978 112,409 1,711,098 - 1,711,098 279,664 768,501 128,752 897,253 - - 3,200 3,200 - 3,629 103,526 107,155 - 2,483,228 235,478 2,718,706 279,664 1,015,549 71,216 1,086,765 145,462 26,109 - 26,109 2,429 156,197 348 156,545 30,851 25,639 9,361 35,000 - 207,945 9,709 217,654 33,280 289,096 - 289,096 53,414 7,196 115 7,311 3,749 46,320 3,445 49,765 3,000 342,612 3,560 346,172 60,163 - - - 3,000 409,313 - 409,313 3,403 85,314 6,903 92,217 9,315 925 - 925 575 1,757 15,758 17,515 17,130 497,309 22,661 519,970 30,423 1,177,358 - 1,177,358 11,475 437,993 5,154 443,147 14,105 70,818 43,383 114,201 8,064 3,506 77,307 80,813 82 1,689,675 125,844 1,815,519 33,726 (continued) City of Walthain,Massachusetts 83 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget Voter Registration Personnel........................................................... - 218,022 (1,500) 216,522 General.............................................................. 55 149,700 - 149,755 Capital Improvement............................................ 3,865 - 26,200 30,065 Total.................................................................. 3,920 367,722 24,700 396,342 TOTAL GENERAL GOVERNMENT........................... 4,815,434 12,652,361 265,310 17,733,105 PUBLIC SAFETY Police and Animal Control Personnel........................................................... 24,717 17,980,749 51,000 18,056,466 General.............................................................. 81,887 303,250 - 385,137 Equipment/Unusual............................................ 10,456 212,267 - 222,723 Special............................................................... 11,946 252,175 - 264,121 Capital Improvement............................................ 5,647 - - 5,647 Total.................................................................. 134,653 18,748,441 51,000 18,934,094 Dispatch Personnel........................................................... 3,567 1,879,742 250,000 2,133,309 General.............................................................. - 32,050 - 32,050 Special............................................................... - 15,400 - 15,400 Total.................................................................. 3,567 1,927,192 250,000 2,180,759 Fire Personnel........................................................... 985,630 17,651,950 1,000,000 19,637,580 General.............................................................. 78,854 580,460 - 659,314 Equipment/Unusual............................................ 72,480 89,000 - 161,480 Special............................................................... 47,390 266,238 - 313,628 Capital Improvement............................................ 56,565 - 26,136 82,701 Total.................................................................. 1,240,919 18,587,648 1,026,136 20,854,703 Emergency Management Personnel........................................................... - 82,596 - 82,596 General.............................................................. 671 4,100 - 4,771 Equipment/Unusual............................................ - 7,800 30,510 38,310 Special............................................................... - 400 - 400 Capital Improvement............................................ 24,150 - - 24,150 Total.................................................................. 24,821 94,896 30,510 150,227 Wires Personnel........................................................... - 907,567 - 907,567 General.............................................................. 19,666 343,100 25,000 387,766 Equipment/Unusual............................................ - 7,500 - 7,500 Capital Improvement............................................ 100,000 - 45,000 145,000 Total.................................................................. 119,666 1,258,167 70,000 1,447,833 Licensing Personnel........................................................... - 15,600 - 15,600 General.............................................................. - 3,700 - 3,700 Total.................................................................. - 19,300 - 19,300 TOTAL PUBLIC SAFET'Y.............................................. 1,523,626 4Q635,644 1,427,646 43,586,916 City of Walthain,Massachusetts 84 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) 197,496 - 197,496 19,026 99,697 362 100,059 49,696 2,898 27,167 30,065 - 300,091 27,529 327,620 68,722 15,729,181 877,931 16,607,112 1,125,993 17,757,883 - 17,757,883 298,583 280,748 49,695 330,443 54,694 160,618 18,144 178,762 43,961 218,663 4,283 222,946 41,175 - 5,647 5,647 - 18,417,912 77,769 18,495,681 438,413 2,009,030 - 2,009,030 124,279 26,218 - 26,218 5,832 11,287 - 11,287 4,113 2,046,535 - 2,046,535 134,224 18,623,365 1,014,215 19,637,580 - 511,832 134,006 645,838 13,476 97,279 61,542 158,821 2,659 189,940 97,284 287,224 26,404 80,964 1,737 82,701 - 19,503,380 1,308,784 20,812,164 42,539 82,347 - 82,347 249 4,771 - 4,771 - 33,655 - 33,655 4,655 400 - 400 - 14,842 9,308 24,150 - 136,015 9,308 145,323 4,904 902,235 - 902,235 5,332 351,479 15,176 366,655 21,111 6,247 - 6,247 1,253 - 145,000 145,000 - 1,259,961 160,176 1,420,137 27,696 15,600 - 15,600 - 3,409 - 3,409 291 19,009 - 19,009 291 41,382,812 1,556,037 42,938,849 648,067 (continued) City of Walthain,Massachusetts 85 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget EDUCATION Personnel................................................................ 268,126 79,337,407 - 79,605,533 General.................................................................. 495,885 10,875,474 - 11,371,359 Equipment/Unusual................................................. 1,019,152 379,281 - 1,398,433 Special................................................................... 55,508 3,488,279 - 3,543,787 Capital Improvement................................................ 184,788 - - 184,788 TOTAL EDUCATION................................................... 2,023,459 94,080,441 - 96,103,900 PUBLIC WORKS Consolidated Public Works Personnel........................................................... 4,353 4,951,706 (88,600) 4,867,459 General.............................................................. 88,472 1,198,400 - 1,286,872 Equipment/Unusual............................................ 241,655 555,000 19,100 815,755 CapitalImprovement............................................ 95,498 - 700,000 795,498 Total.................................................................. 429,978 6,705,106 630,500 7,765,584 Snow and Ice Removal Personnel........................................................... - 137,000 235,500 372,500 General.............................................................. 2,595 1,259,945 1,376,000 2,638,540 Total.................................................................. 2,595 1,396,945 1,6ll,500 3,011,040 Street Lighting General.............................................................. 316,296 430,000 (120,000) 626,296 Capital Improvement............................................ 2,779 - 50,000 52,779 Total.................................................................. 319,075 430,000 (70,000) 679,075 Collection and Disposal of Rubbish Equipment/Unusual............................................ 337,318 6,600,000 - 6,937,318 Cemetery Commission Personnel........................................................... - 3,000 - 3,000 TOTAL PUBLIC WORKS.............................................. 1,088,966 15,135,051 2,172,000 18,396,017 COMMUNITY DEVELOPMENT Planning Personnel........................................................... - 319,291 - 319,291 General.............................................................. 506 2,800 - 3,306 Equipment/Unusual............................................ 12,850 10,000 - 22,850 Capital Improvement............................................ 78,931 - 55,905 134,836 TotaL................................................................ 92,287 332,091 55,905 480,283 Housing Personnel........................................................... - 386,065 - 356,065 General.............................................................. 2,284 88,500 - 90,784 Equipment/Unusual............................................ 20,738 100,000 - 120,738 CapitalImprovement............................................ - - 180,784 180,784 Total.................................................................. 23,022 574,565 180,784 778,371 Board of Survey and Planning Personnel........................................................... 600 17,000 - 17,600 General.............................................................. - 4,700 - 4,700 TotaL................................................................. 600 21,700 - 22,300 Zoning Board of Appeals Personnel........................................................... - 25,500 (9,600) 15,900 General.............................................................. 1,632 34,700 9,600 45,932 Capital Improvement............................................ 914 - - 914 Total.................................................................. 2,546 60,200 - 62,746 City of Walthain,Massachusetts 86 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) 78,368,233 169,679 78,537,912 1,067,621 10,478,897 578,132 11,057,029 314,330 1,064,740 327,955 1,392,695 5,738 3,470,205 64,996 3,535,201 8,586 - - - 184,788 93,382,075 1,140,762 94,522,837 1,581,063 4,345,588 - 4,345,588 521,871 1,236,407 33,7ll 1,270,118 16,754 391,790 183,562 575,352 240,403 40,174 746,278 786,452 9,046 6,013,959 963,551 6,977,510 788,074 372,140 - 372,140 360 2,378,094 - 2,378,094 260,446 2,750,234 - 2,750,234 260,806 586,517 10,665 597,182 29,114 - 52,779 52,779 - 586,517 63,444 649,961 29,114 5,423,061 688,690 6,111,751 825,567 1,300 600 1,900 1,100 14,775,071 1,716,285 16,491,356 1,904,661 278,976 - 278,976 40,315 2,773 103 2,876 430 22,850 - 22,850 - 97,934 27,450 125,384 9,452 402,533 27,553 430,086 50,197 337,455 - 337,455 48,610 76,865 2,234 79,099 11,685 119,738 - 119,738 1,000 169,344 11,440 180,784 - 703,402 13,674 717,076 61,295 11,900 - 11,900 5,700 3,664 284 3,948 752 15,564 284 15,848 6,452 15,900 - 15,900 - 31,487 5,871 37,358 8,574 - 914 914 - 47,387 6,785 54,172 8,574 (continued) City of Walthain,Massachusetts 87 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget Traffic Engineering Personnel........................................................... - 455,589 - 455,589 General.............................................................. 1,442 66,300 - 67,742 Equipment/Unusual............................................ 13,682 100,000 - 113,682 CapitalImprovement............................................ - - 285,600 285,600 TotaL................................................................ 15,124 621,889 285,600 922,613 Conservation Commission Personnel........................................................... - 84,577 - 84,577 General.............................................................. - 2,100 - 2,100 Capital Improvement............................................ 53,915 - - 53,915 TotaL................................................................. 53,915 86,677 - 140,592 Historical Commission Personnel........................................................... - 7,000 - 7,000 General.............................................................. - 5,900 - 5,900 Equipment/Unusual............................................ 6,307 1Q500 - 16,807 Total.................................................................. 6,307 23,400 - 29,707 Paine Estate Personnel........................................................... - 121,135 - 121,135 General.............................................................. 3,742 27,300 - 31,042 TotaL................................................................. 3,742 148,435 - 152,177 Engineering Personnel........................................................... - 490,277 - 490,277 General.............................................................. 8,816 61,450 - 70,266 CapitalImprovement............................................ 359,138 - 194,252 553,390 Total.................................................................. 367,954 551,727 194,252 1,113,933 TOTAL COMMUNIT'Y DEVELOPMENT......................... 565,497 2,420,684 716,541 3,702,722 HEALTH AND HUMAN SERVICES Health Personnel........................................................... 400 764,762 - 765,162 General.............................................................. 1,870 77,857 (7,000) 72,727 Equipment/Unusual............................................ 17,963 100,000 - 117,963 Capital Improvement............................................ 4,700 - 7,000 11,700 Total.................................................................. 24,933 942,619 - 967,552 Veterans Personnel........................................................... - 208,054 - 208,054 General.............................................................. 3,308 174,700 - 178,008 Capital Improvement............................................ 4,320 - - 4,320 Total.................................................................. 7,628 382,754 - 390,382 Council on Aging Personnel........................................................... - 581,685 - 581,685 General.............................................................. - 387,775 - 387,775 Total.................................................................. - 969,460 - 969,460 Celebration of Holidays General.............................................................. 10,500 11,000 - 21,500 City of Walthain,Massachusetts 88 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) 423,306 - 423,306 32,283 61,577 1,081 62,658 5,084 70,825 42,857 113,682 - 17,100 268,500 285,600 - 572,808 312,438 885,246 37,367 46,306 - 46,306 38,271 1,884 117 2,001 99 - 53,000 53,000 915 48,190 53,117 101,307 39,285 5,400 - 5,400 1,600 2,319 224 2,543 3,357 7,491 8,198 15,689 1,118 15,210 8,422 23,632 6,075 121,135 - 121,135 - 24,731 1,048 25,779 5,263 145,866 1,048 146,914 5,263 478,323 - 478,323 11,954 42,273 11,987 54,260 16,006 44,979 508,411 553,390 - 565,575 520,398 1,085,973 27,960 2,516,535 943,719 3,460,254 242,468 743,150 - 743,150 22,012 65,948 1,338 67,286 5,441 90,168 27,795 117,963 - 4,700 7,000 11,700 - 903,966 36,133 940,099 27,453 208,054 - 208,054 - 133,545 2,810 136,355 41,653 - 4,320 4,320 - 341,599 7,130 348,729 41,653 486,917 - 486,917 94,768 177,934 - 177,934 209,841 664,851 - 664,851 304,609 10,500 11,000 21,500 - (continued) City of Walthain,Massachusetts 89 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget Disabilities Services Commission Personnel........................................................... - 7,000 - 7,000 General.............................................................. - 190 - 190 Total.................................................................. - 7,190 - 7,190 TOTAL HEALTH AND HUMAN SERVICES.................... 43,061 2,313,023 - 2,356,084 CULTURE AND RECREATION Library Personnel........................................................... 28,765 2,632,990 - 2,661,755 General.............................................................. 3,820 426,685 44,000 474,505 Equipment/Unusual............................................ 25,929 81,325 - 107,254 Capital Improvement............................................ 1,354 - 44,000 45,354 TotaL................................................................ 59,868 3,141,000 88,000 3,288,868 Recreation Personnel........................................................... 112 1,079,448 - 1,079,560 General.............................................................. - 18,875 - 18,875 Equipment/Unusual............................................ - 47,000 - 47,000 CapitalImprovement............................................ 165,325 - 48,000 213,325 Total.................................................................. 165,437 1,145,323 48,000 1,358,760 Playgrounds Personnel........................................................... - 78,000 - 78,000 General.............................................................. - 144,700 - 144,700 Equipment/Unusual............................................ - 5,000 - 5,000 Total.................................................................. - 227,700 - 227,700 Summer Fun Personnel........................................................... - 76,000 - 76,000 General.............................................................. 405 12,200 - 12,605 Total.................................................................. 405 88,200 - 88,605 Support of Recreation Activities General.............................................................. 6,870 121,700 - 128,570 Equipment/Unusual............................................ 800 10,500 - 11,300 Total.................................................................. 7,670 132,200 - 139,870 TOTAL CULTURE AND RECREATION.......................... 233,380 4,734,423 136,000 5,103,803 PENSION BENEFITS Contributory Retirement System............................. - 19,209,960 - 19,209,960 TOTAL PENSION BENEFITS........................................ - 19,209,960 - 19,209,960 EMPLOYEE BENEFITS Worker's Compensation........................................ 9,034 350,000 200,000 559,034 Optional Medical Extension................................... - 5,900,000 - 5,900,000 Hospital and Medical Insurance.............................. 1,500 45,966,000 3Q000 45,997,500 Group Life Insurance............................................ 13,021 127,750 - 140,771 Social Security..................................................... - 6,000 - 6,000 Unemployment................................................... - 20,000 28,000 48,000 TOTAL EMPLOYEE BENEFITS...................................... 23,555 52,369,750 258,000 52,651,305 City of Walthain,Massachusetts 90 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) 6,900 - 6,900 100 - - - 190 6,900 - 6,900 290 1,927,816 54,263 1,982,079 374,005 2,190,015 - 2,190,015 471,740 471,119 3,162 474,281 224 106,724 - 106,724 530 - 4,354 4,354 41,000 2,767,858 7,516 2,775,374 513,494 1,072,161 - 1,072,161 7,399 12,093 1,000 13,093 5,782 32,930 - 32,930 14,070 159,198 54,127 213,325 - 1,276,382 55,127 1,331,509 27,251 56,866 - 56,866 21,134 121,641 - 121,641 23,059 4,930 - 4,930 70 183,437 - 183,437 44,263 34,487 - 34,487 41,513 7,569 - 7,569 5,036 42,056 - 42,056 46,549 110,940 8,109 119,049 9,521 9,643 - 9,643 1,657 120,583 8,109 128,692 11,178 4,390,316 70,752 4,461,068 642,735 19,209,960 - 19,209,960 - 19,209,960 - 19,209,960 - 533,039 25,995 559,034 - 5,900,000 - 5,900,000 - 45,994,784 - 45,994,784 2,716 118,895 - 118,895 21,876 4,770 - 4,770 1,230 31,098 16,902 48,000 - 52,582,586 42,897 52,625,483 25,822 (continued) City of Walthain,Massachusetts 91 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget STATE AND COUNTY CHARGES................................. - 2,144,513 - 2,144,513 DEBT SERVICE Principal............................................................ - 10,232,000 - 10,232,000 Interest.............................................................. - 9,398,500 - 9,398,500 TOTAL DEBT SERVICE................................................ - 19,630,500 - 19,630,500 TOTAL EXPENDITURES.............................................. 10,316,978 265,326,350 4,975,497 280,618,825 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES............................................. (10,316,978) (4,572,260) (4,975,497) (19,864,735) OTHER FINANCING SOURCES(USES): Sale of Capital Assets................................................ - - - - Transfers in............................................................. - 4,275,000 2,059,738 6,334,738 Transfers out........................................................... - (75,000) (1,500,000) (1,575,000) Total Other Financing Sources(Uses)....................... - 4,200,000 559,738 4,759,738 NET CHANGE IN FUND BALANCE................................ (10,316,978) (372,260) (4,415,759) (15,104,997) FUND BALANCE AT BEGINNING OF YEAR.................... 47,311,415 47,311,415 47,311,415 47,311,415 FUND BALANCE AT END OF YEAR............................... $ 36,994,437 $ 46,939,155 $ 42,895,656 $ 32,206,418 See accompanying notes to required supplementary information. City of Walthain,Massachusetts 92 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) 2,123,454 - 2,123,454 21,059 10,231,238 - 10,231,238 762 9,398,090 - 9,398,090 410 19,629,328 - 19,629,328 1,172 267,649,134 6,402,646 274,051,780 6,567,045 4,841,165 (6,402,646) (1,561,481) 18,303,254 58,405 - 58,405 58,405 6,567,105 - 6,567,105 232,367 �i,5�s,000� - �i,5�s,000� - 5,050,510 - 5,050,510 290,772 9,891,675 (6,402,646) 3,459,029 18,594,026 47,311,415 - 47,311,415 - $ 57,203,090 $ (6,402,646) $ 50,800,444 $ 18,594,026 (concluded) City of Walthain,Massachusetts 93 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS COMMUNITY PRESERVATION FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE (NON-GAAP BUDGETARY BASIS) BUDGET AND ACTUAL YEAR ENDED JUNE 30,2022 Prior Year Encumbrances Supplemental and Continuing Original Appropriations Final Appropriations Budget and Transfers Budget REV ENUES Community preservation taxes........................................ $ - $ 3,400,000 $ - $ 3,400,000 Intergovernmental........................................................ - 1,292,123 - 1,292,123 Penalties and interest on taxes......................................... - - - - Investment income........................................................ - 357,438 - 357,438 TOTAL REVENUES......................................... - 5,049,561 - 5,049,561 EXPENDITURES Personnel.................................................................... - 48,172 - 48,172 General....................................................................... - 14,000 - 14,000 Equipment/Unusual..................................................... - 115,000 - 115,000 CapitalImprovement..................................................... 21,510,970 - 6,478,678 27,989,648 TOTAL EXPENDITURES.................................. 21,510,970 177,172 6,478,678 28,166,820 EXCESS(DEFICIENCI')OF REVENUES OVER EXPENDITURES............................................. (21,510,970) 4,872,389 (6,478,678) (23,117,259) FUND BALANCE AT BEGINNING OF YEAR.................. - 28,137,052 28,137,052 28,137,052 FUND BALANCE AT END OF YEAR.............................. $ (21,510,970) $ 33,009,441 $ 21,658,374 $ 5,019,793 City of Walthain,Massachusetts 94 Annual Comprehensive Financial Report Actual Encumbrances and Encumbrances Variance and Continuing and Continuing Positive/ Actual Appropriations Appropriations (Negative) $ 3,496,827 $ - $ 3,496,827 $ 96,827 1,438,811 - 1,438,811 146,688 11,235 - 11,235 11,235 632,691 - 632,691 275,253 5,579,564 - 5,579,564 530,003 42,474 - 42,474 5,698 8,451 - 8,451 5,549 5,000 - 5,000 110,000 18,463,496 8,973,661 27,437,157 552,491 18,519,421 8,973,661 27,493,082 673,738 (12,939,857) (8,973,661) (21,913,518) 1,203,741 28,137,052 - 28,137,052 - $ 15,197,195 $ (8,973,661) $ 6,223,534 $ 1,203,741 City of Walthain,Massachusetts 95 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION LAST TEN FISCAL YEARS PENSION PLAN SCHEDULES SCHEDULE OF CHANGES IN EMPLOYERS'NET PENSION LIABILITY AND RELATED RATIOS (SYSTEM) (1) December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2021 2020 2019 2018 2017 2016 2015 2014 Total Pension Liabilitv Service Cost $ 7,332,208 $ 7,686,605 $ 7,426,672 $ 7,175,529 $ 6,880,955 $ 6,676,993 $ 5,761,367 $ 7,040,834 Interest 35,842,301 34,853,387 33,844,783 30,409,457 29,614,028 28,355,410 28,290,238 27,535,037 Benefit Payments,including refunds of inember contributions (30,498,651) (29,043,824) (25,009,743) (27,473,451) (25,613,137) (24,612,153) (24,341,534) (23,951,108) Change in Assumptions - - - 22,640,210 - - 6,596,806 - Experience Loss - 332,247 - 11,587,047 - 6,107,195 5,885,647 - Net Changein TotalPension Liability 12,675,855 13,825,415 13,261,712 44,335,762 10,881,846 16,527,415 22,195,524 10,624,763 TotalPension Liability-Beginning 470,113,887 456,285,472 443,023,760 398,684,995 387,803,152 371,275,737 349,080,213 338,455,450 Total Pension Liability-Ending(a) $ 452,789,745 $ 470,113,887 $ 456,285,472 $ 443,023,760 $ 398,684,998 $ 387,803,152 $ 371,275,737 $ 349,080,213 Plan Fiduciary Net Position Contributions-Employer $ 19,800,000 $ 18,985,000 $ 18,335,000 $ 17,785,000 $ 17,233,644 $ 16,733,644 $ 16,233,644 $ 15,728,477 Contributions-Member 7,242,000 6,694,320 7,074,391 6,887,145 6,553,300 6,251,685 6,444,960 5,222,151 Other Additions 689,986 681,464 664,194 694,215 712,117 743,196 751,646 1,11S,90S NetInvestmentIncome(Loss) 45,941,412 36,480,917 43,120,083 (12,447,176) 33,104,714 15,709,913 1,689,685 15,52S,11S Benefit Payments and Transfers to Other Systems (30,495,651) (29,043,824) (25,009,743) (27,473,451) (25,613,137) (24,612,152) (24,341,535) (23,951,107) Administrative Expense (559,776) (522,268) (564,797) (510,532) (582,872) (614,396) (519,094) (521,690 Net Change in Plan Fiduciary Net Position 42,614,971 33,275,609 40,619,125 (15,064,526) 31,407,766 14,211,560 259,306 13,124,857 Plan Fiduciary Net Position-Beginning 307,160,269 273,884,660 233,265,532 248,330,355 216,922,592 202,710,732 202,451,426 189,326,569 Plan Fiduciary Net Position-Ending(b) $ 349,775,240 $ 307,160,269 $ 273,884,660 $ 233,265,532 $ 248,330,358 $ 216,922,592 $ 202,710,732 $ 202,451,426 NetPension Liability-Ending(a)-(b) $ 133,014,505 $ 162,953,618 $ 182,400,812 $ 209,758,228 $ 150,354,640 $ 170,880,560 $ 168,565,005 $ 146,628,787 Plan Piduciaxy Net Position as a Percentage of the Total Pension Liability 72.4% 65.3% 60.0% 52.7% 62.3% 55.9% 54.6% 58.0% Covered Payroll $ 68,910,444 $ 66,580,139 $ 68,649,274 $ 66,327,801 $ 64,099,533 $ 61,634,166 $ 59,292,926 $ 55,575,341 Net Pension Liability as a Pexcentage of Covered Payroll 193.0% 244.7% 265.7% 316.2% 234.6% 277.2% 284.3% 263.5% (1) Data is being accumulated annually to present 10 years of the reported information City of Walthain,Massachusetts 96 Annual Comprehensive Finaneial Report CITY OF WALTHAM,MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION LAST TEN FISCAL YEARS SCHEDULE OF EMPLOYER CONTRIBUTIONS(SYSTEM) 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 Actuarially Determined Contribution $ 19,800,000 $ 18,985,000 $ 18,335,000 $ 17,785,000 $ 17,233,644 $ 16,733,644 $ 16,233,644 $ 15,728,477 $ 14,735,293 $ 14,289,286 Contributions in Relation to the Actuarially Determined Contribution 19,800,000 18,985,000 18,335,000 17,785,000 17,233,644 16,733,644 16,233,644 15,728,477 14,735,293 14,289,286 Contribution Deficiency(Excess) - - - - - - - - - - Covered Payroll $ 68,910,444 $ 66,580,139 $ 68,649,274 $ 66,327,801 $ 64,099,533 $ 61,634,166 $ 59,292,926 $ 55,578,341 $ 50,696,522 $ 50,696,522 Contributions as a Percentage of Covered Payroll 2893% 28.51% 26.71% 26.81% 26.89% 2715% 27.38% 28.30% 29.07% 28.19% SCHEDULE OF INVESTMENT RETURNS (SYSTEM) (1) 2021 2020 2019 2018 2017 2016 2015 2014 Annual money-weighted rate of return,net of investment expense 15.14% 13.37% 28.40% -5.08% 15.75% 7.78% 0.84% 9.07% (1) Data is being accumulated annually to present 10 years of the reported information City of Walthain,Massachusetts 97 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION LAST TEN FISCAL YEARS SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY(1)(2) 2022 2021 2020 2019 2018 2017 2016 2015 City's Proportion of the Net Pension Liability 97.0200% 97.2350% 97.4330% 97.5516% 97.3771% 97.2903% 97.4128% 97.2096% City's Proportionate Share of the Net Pension Liability $ 129,050,673 $ 158,448,030 $ 177,717,842 $ 204,622,472 $ 146,4ll,061 $ 166,250,288 $ 164,203,870 $ 142,537,299 City's Covered Payroll $ 66,246,752 $ 68,347,815 $ 64,146,298 $ 62,695,385 $ 60,608,378 $ 60,208,016 $ 61,485,840 $ 51,878,853 City's proportionate share of the net pension liability as a percentage of its covered payroll L95 231.83% 277.05% 326.38% 241.57% 276.13% 267.06% 27495% Plan fiduciary net position as a percentage of the total pension liability 72.4% 65.3% 60.0% 529% 62.3% 55.9% 54.6% 58.0% (1) Amounts presented were determined as of December 31 (2) Data is being accumulated annually to present 10 years of the reported information SCHEDULE OF CITY CONTRIBUTIONS (1) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Actuarially Required Contribution $ 19,209,960 $ 18,46Q074 $ 17,864,266 $ 17,349,549 $ 16,781,631 $ 16,250,220 $ 15,813,645 $ 15,289,594 $ 14,303,117 $ 13,857,560 Contributions in Relation to the Actuarially Required Contribution 19,209,960 18,460,074 17,864,266 17,349,549 16,781,631 16,250,220 15,813,645 15,289,594 14,303,117 13,857,860 Contribution Deficiency(Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - City's Covered Payroll $ 66,246,752 $ 68,347,515 $ 64,146,298 $ 62,695,385 $ 60,605,378 $ 60,208,016 $ 61,485,840 $ 51,875,853 $ 51,057,010 $ 51,013,250 Contributions as a Percentage of Covered Payroll 29.00% 27.01% 27.85% 27.67% 27.69% 27.04% 25.72% 29.47% 25.01% 27.17% (1) Amounts presented were determined as of fiscal years ended June 30 City of Walthain,Massachusetts 98 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION LAST TEN FISCAL YEARS SCHEDULE OF SPECIAL FUNDING AMOUNTS OF THE NET PENSION LIABILITY MASSACHUSETTS TEACHERS'RETIREMENT SYSTEM (1) (2) 2022 2021 2020 2019 2018 2017 2016 2015 City's Share of Net Pension Liability - $ - $ - $ - $ - $ - $ - $ - Commonwealth's Share of City's Net Pension Liability 182,299,979 225,268,009 197,047,109 195,469,540 170,927,597 160,484,933 147,219,461 ll0,096,513 Total $ 182,299,979 $ 225,268,009 $ 197,047,109 $ 195,469,540 $ 170,927,597 $ 160,484,933 $ 147,219,461 $ 110,096,513 City's Expense and Revenue Recognized for the Commonwealth's Support $ 14,628,514 $ 27,523,826 $ 23,895,352 $ 19,SOS,007 $ 17,840,211 $ 16,370,515 $ 11,940,809 $ 7,648,933 Plan Fiduciary Net Position as a Percentage of Total Net Pension Liability 62.03% 50.67% 53.95% 54.54% 54.25% 52.73% 55.38% 61.64% (1) Amounts presented were determined as of June 30 of the prior year (2) Data is being accumulated annually to present 10 years of the reported information City of Walthain,Massachusetts 99 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS REQUIRED SUPPLEMENTARY INFORMATION LAST TEN FISCAL YEARS OTHER POSTEMPLOYMENT BENEFITS SCHEDULE SCHEDULE OF CHANGES IN THE CITY'S TOTAL OPEB LIABILITY AND RELATED RATIOS (1) (2) 2022 2021 2020 2019 2018 Total OPEB Liability Service Cost $ 30,556,354 $ 29,240,529 $ 20,676,304 $ 19,785,937 $ 18,933,911 Interest on Liability and Service Cost 19,749,557 19,072,451 23,593,967 22,721,494 21,868,248 Changes of Assumptions (122,439,805) - 135,726,391 - - Experience(Gain)and Loss 23,287,955 - (33,376,963) - - Benefits Payments (23,196,066) (21,901,058) (20,957,949) (19,320,796) (18,488,800) Change in Total OPEB Liability (72,042,005) 26,411,922 125,661,750 23,186,635 22,313,359 Total OPEB Liability-Beginning 770,952,361 744,540,439 618,878,689 595,692,054 573,378,695 Total OPEB Liability-Ending $ 698,910,356 $ 770,952,361 $ 744,540,439 $ 618,878,689 $ 595,692,054 Covered Employee Payroll 127,099,983 117,607,472 117,607,472 113,763,189 109,916,125 Total OPEB Liability as a Percentage of Covered Employee Payroll 549.9% 655.5% 633.1% 544.0% 542.0% (1) Data is being accumulated annually to present 10 years of the reported information (2) No assets accumulated in a trust that meets the criteria of GASB 74. City of Walthain,Massachusetts 100 Annual Comprehensive Financial Report Notes to Required Supplementary Information For the Fiscal Year Ended June 30,2022 NOTE A-BUDGETARY-GAAP RECONCILIATION For budgetary financial reporting purposes,the Uniform Massachusetts Accounting System basis of accounting (established by the Commonwealth) is followed,which differs from the GAAP basis of accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund and community preservation fund for the fiscal year ended June 30,2022,is presented below: General Fund Other Financing Fund Revenues Expenditures Sources(Uses) Balance Budgetacy basis as reported on the schedule of revenues,expenditures and changes in fund balance-budget and actual.................................................................. $ 272,490,299 $ 274,051,780 $ 5,050,510 $ 50,800,444 Adiustments and Reclassifications Net change in recording 60-day receipts.................................................. 97,309 - - 584,459 Net change in recording tax refunds payable.........................................._ (389,000) - - (619,000) Net change in recording other revenues................................................... (147,255) - - (532,249) To reclass ARPA revenue replacement..................................................._ (7,000,000) - 7,000,000 - To record MTRS on-behalf payments...................................................... 14,628,814 14,628,814 - - Net change in recording other expenditures............_................................ - (143,250) (143,250) - To allocate indirect costs to functional line items....................................... - (4,506,367) (4,506,367) - To rewrd items identified during the search for unrecorded]iabilities........... 635,127 (635,127) To record encumbrances and continuing appropriations............................. - (6,402,646) - 6,402,646 To reclassify the stabilization funds to the general fund.............................. 994 - (471,738) 1,517,189 To reclassify the other postemployment benefit fund to the general fund....... 993,774 (138,596) - 18,912,839 GAAP basis as reported on the statement of revenues, expenditures and changes in fund balances.............................................. $ 280,674,935 $ 278,124,862 $ 6,929,155 $ 76,431,201 Community Preservation Fund Fund Revenues Expenditures Balance Budgetary basis as reported on the schedule of revenues,expenditures and changes in fund balance-budget and actual.................................................................. $ 5,579,564 $ 27,493,082 $ 6,223,534 Adjustments Net change in recording revenues........................................................... (489,296) - 4,591 Net change in recording other expenditures.............................................. - 62,329 (439,098) To record encumbrances and continuing appropriations............................. - (8,973,661) 8,973,661 GAAP basis as reported on the statement of revenues, expenditures and changes in fund balances.............................................. $ 5,090,268 $ 18,581,750 $ 14,762,688 City of Walthain,Massachusetts 101 Annual Comprehensive Financial Report Notes to Required Supplementary Information For the Fiscal Year Ended June 30,2022 NOTE B-SCHEDULE OF EMPLOYER CONTRIBUTIONS (PENSION PLAN) The following methods and assumptions from the January 1,2021 valuation were used to determine the most recent actuarially determined contribution rates: Methods: Actuarial Cost Method Entry Age Normal Cost Asset Valuation Method Fair Value Assumptions: Salary Increases 3.5% per year Investment Rate of Return 7.75% Cost of Living Adjustment 3.0% of the lesser of the pension amount and$14,000 per year. Mortality It is assumed that mortality is represented by the various SOA Pub-2010 Public Retirement Plans Mortality Tables specific to the Group,Pre-retirement versus Post,Disabled and Beneficiaries,with Scale MP-2018 improvements until 2025. Retirement Rates Hired prior to Apri12012:General Employees-3.6% and 10.2% for males and females,respectively,beginning at age 50 ranging to 100.0% and 100.0% for males and females, respectively,ending at age 80. Police and Fire-3.8% beginning at age 50 ranging to 100.0% at age 65. Hired after Apri12012:General Employees 0% for males and females,respectively,beginning at age 50 ranging to 25% and 20% for males and females,respectively,ending at age S0. Police and Fire 1.91% beginning at age 50 ranging to 100.0% at age 65. NOTE C-PENSION PLAN Change of Assumptions(December 31,2018):Mortality Tables were adjusted from RP-2000 to SOA Pub-2010. Change of Assumptions (December 31,2015):Discount rate was adjusted from 8.25% to 7.75%. NOTE D-OPEB PLAN Change of Assumptions (June 30,2022):Discount rate was adjusted from 2.50% to 3.50%. Change of Assumptions (June 30,2020):Discount rate was adjusted from 3.75% to 2.50%. City of Walthain,Massachusetts 102 Annual Comprehensive Financial Report Combining and Individual Fund Statements City of Walthain,Massachusetts 103 Annual Comprehensive Financial Report Nonmajor Governmental Funds Narrative Special Revenue Funds Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects.The special revenue funds are grouped into the following categories: Other Special Revenue Fund-This fund is used to account for receipts reserved for appropriation. City Federal Grants-This fund is used to account for City programs specifically financed by federal grants which are designated for specific programs. Public Safety Federal Grants-This fund is used to account for Public Safety programs specifically financed by federal grants which are designated for specific programs. HUD Federal Grants-This fund is used to account for the programs specifically financed by HUD federal grants which are designated for specific programs. School Federal Grants-This fund is used to account for the educational programs specifically financed by federal grants which are designated for specific programs. City State Grants Fund-This fund is used to account for programs specifically financed by state grants which are designated for specific programs. School State Grants Fund-This fund is used to account for the educational programs specifically financed by state grants which are designated for specific programs. Insurance Recovery Fund-This fund is used to account for insurance reimbursements. Gifts Fund-This fund is used to account for gifts which have been accepted by the City to be used for the purpose specified by the donor. Sale of Lots/Graves Fund-This fund is used to account for the proceeds from the sale of cemetery lots and graves for cemetery improvements. School Revenue Reserve Fund-This fund is used to account for school receipts reserved for appropriation. School Lunch Fund-This fund is used to account for all cafeteria activities and is funded by user charges,federal and state grants and commodities received. Parking Meters Fund-This fund is used to account for parking meter and off-street parking lot proceeds. UDAG Nova Biomedical Fund-This fund is used to account for special programs under community development block grant guidelines. Vocational School Reserve Fund-This fund is used to account for the proceeds from outside services provided by vocational students. City of Walthain,Massachusetts 104 Annual Comprehensive Financial Report Special Revenue Funds (continued) Public Safety-This fund is used to account for drug forfeiture and other law enforcement activities. Traffic Impact Fund-This fund is used to account for traffic improvements required by special permit. Police and Fire Detail Fund-This fund is used to account for police and fire detail activities. Waltham Housing Fund-This fund is used to account for the City's affordable housing program. Student Activities-This fund is used to account for all student activities. Security Deposits-This fund is used to account for all security deposits. Perpetual Care-This fund is used to account for all perpetual care deposits. Federal Partnership-This fund is used to account for federal partnership activities. Capital Projects Funds Capital projects funds are used to account for and report financial resources that are restricted,committed,or assigned to expenditure for capital outlays,including the acquisition or construction of capital facilities and other capital assets. Capital projects funds exclude those types of capital-related outflows financed by proprietary funds or for assets that will be held in trust for individuals,private organizations,or other governments.The capital projects funds are grouped into the following category: Highway Projects-This fund is used to account for the construction and renovation to the City's Highways.These projects will be funded through the issuance of long-term bonds and notes and other available funds. Permanent Funds Permanent funds are used to account for and report resources that are restricted to the extent that only earnings, and not principal,may be used for purposes that support the government's programs and benefit the government or its citizenry.The permanent funds are grouped into the following categories: Cemetery Trust Funds-This fund is used to account for various contributions and activities associated with maintenance of the City's cemeteries. Other Permanent Funds-This fund is used to account for various contributions associated with governmental programs. City of Walthain,Massachusetts 105 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2022 SpecialRevenue Funds Other City Public Safety HUD School Special Federal Federal Federal Federal City School ASSETS Revenue Grants Grants Grants Grants State Gxants State Grants Cash and Cash Equivalents............................... $ - $ - $ - $ - $ - $ - $ - Restricted Cash and Cash Equivalents................ 5,347,392 3,717 - 939,235 - 526,SS8 93,073 Restricted Investments..................................... - - - - - - - Receivables,Net of Unwllectibles: Departmental and Other............................... - - - - - - - Intergovernmental....................................... - - 25,600 81,734 539,467 235,492 17,056 Loans........................................................ - - - 1,554,539 - - - TOTAL ASSETS............................................. $ 5,347,392 $ 3,717 $ 25,600 $ 2,575,508 $ 539,467 $ 762,OS0 $ 110,129 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES: Warrants Payable........................................ $ 120,534 $ - $ 3,311 $ 96,019 $ 94,083 $ 117,155 $ 2,063 Accrued Payroll.......................................... 927 - - - - - - Other Liabilities........................................... - - - - - - - Due to Other Funds..................................... - - 204,582 7,904 550,659 - - TOTAL LIABILITIES....................................... 121,461 - 208,193 103,923 644,772 117,155 2,063 DEFERRED INFLOWS OF RESOURCES: Unavailable Revenue.................................... - - - 1,554,539 - - - FUND BALANCES: Nonspendable............................................. - - - - - - - Restricted................................................... 5,225,931 3,717 - 917,046 - 644,925 108,066 Unassigned................................................ - - (182,593) - (105,305) - - TOTAL PUND BALANCES.............................. 5,225,931 3,717 (152,593) 917,046 (1Q5,305) 644,925 108,066 TOTAL LIABILITIES,DBFERRED INFLOWS OF RESOURCES AND FUND BALANCES............ $ 5,347,392 $ 3,717 $ 25,600 $ 2,575,508 $ 539,467 $ 762,OS0 $ 110,129 City of Walthain,Massachusetts 106 Annual Comprehensive Financial Report Special Revenue Funds School Vocational Insurance Sale of Revenue School Parking UDAG Nova School Public Recovery Gifts Lots/Graves Reserve Lunch Meters Biomedical Reserve Safety $ - $ - $ - $ - $ - $ - $ - $ - $ - 12,603 1,254,141 525,109 SS7,968 2,586,765 815,311 53,889 31,240 7,080,674 $ 12,603 $ 1,254,141 $ 525,109 $ SS7,968 $ 2,586,768 $ 815,311 $ 53,889 $ 31,240 $ 7,080,674 $ - S 14,171 $ - $ 13,564 $ 67,360 $ 8,937 $ 177 $ 2,384 $ 28,986 - - - - zS01 - - - - 14,171 - 13,564 67,360 11,438 177 2,384 28,986 12,603 1,239,970 528,109 874,404 2,519,405 803,873 53,712 28,556 7,051,688 12,603 1,239,970 525,109 874,404 2,519,405 803,873 53,712 2S,S56 7,OS1,6S8 $ 12,603 $ 1,254,141 $ 528,109 $ 887,968 $ 2,586,768 $ 815,311 $ 53,889 $ 31,240 $ 7,080,674 (continued) City of Walthain,Massachusetts 107 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2022 Special Reaeriue Funds Traffic Impact Police and Waltham Student Secucity Perpetual Federa] ASSETS Pund FireDetail Housing Acflvities Deposits Care Partnership Subtotal Cash and Cash Equivalents.............................. $ - $ - $ - $ - $ 155,220 $ - $ - $ 155,220 Restricted Cash and Cash Equivalents.................. 6,565,356 - 1,537,149 544,404 3,840 9,400 - 28,823,857 Restricced Im�estments..................................... - - - - - - - - Receivables,cet of u�collectibles: Departmental and Other............................... - 420,680 - - - - - 420,680 IntergovernmentaL...................................... - - - - - - 97,393 996,742 Loans........................................................ _ _ _ _ _ _ _ 1554,539 TOTAL ASSETS............................................. $ 6,568,356 $ 420,680 $ 1,537,149 $ 544,404 $ 15Q060 $ 9,400 $ 97,393 $ 31,951,038 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES: Warrants Payable........................................ $ 205,629 $ - $ 6,900 $ - $ 9,000 $ - $ - $ 793,273 Accrued Payroll.......................................... - 62,621 - - - - - 66,049 Other Liabilifies.......................................... - - - - 150,060 - - 150,060 Due to Other Funds..................................... - 516,219 - - - - 97,393 1,377,087 TOTAL LIABILITIBS....................................... 208,629 578,840 6,900 - 159,060 - 97,393 2,386,469 DEFERRED INFLOWS OF RESOURCES: Unavailable Revenue.................................... - 420,680 - - - - - 1,975,219 FUND BALANCES: Nonspendabla........................................... _ _ _ _ _ _ _ _ Restricted................................................... 6,359,727 - 1,530,249 5A4,404 - 9,400 - 28,456,088 Unassigned................................................ - (578,840) _ _ _ _ _ (866,738) TOTALFUNDBALANCES_._._...................... 6,359,727 (57$840) 1,530,249 544,404 - 9,400 - 27,589,350 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND PUND BALANCES............$ 6,568,356 $ 420,680 $ 1,537,149 $ 544,404 $ 159,060 $ 9,400 $ 97,393 $ 31,951,038 City of Walthain,Massachusetts 108 Annual Comprehensive Financial Report PermanentFunds Total Other No�major Highway Cemetery Permanenf Gover�mental Pcojects Sub-total Trusf Pu�ds Pu�ds Sub-tota] Au�ds - $ - $ - $ - $ - $ 155,220 - - 351,957 157,329 539,286 29,363,143 - - 2,431,387 525,782 2,957,169 2,957,169 - - - - - 420,680 - - - - - 996,742 1,554,539 - $ - $ 2,813,344 $ 6S3,ll1 $ 3,496,455 $ 35,447,493 - $ - S 5,000 $ - $ 5,000 $ 798,273 - - - - - 66,049 - - - - - 150,060 23,712 23,712 - - 1,400,799 23,712 23,712 5,000 - 5,000 2,415,151 1,975,219 - - 2,778,333 251,952 3,030,285 3,030,285 - - 30,011 431,159 461,170 28,917,258 �2a,n2� �za,�iz� �e9o,a5o� �za,nz� �2a,n2� z,aos,sa4 bss,ni a,n�i,45s ai,os�,o9s - $ - $ 2,813,344 $ 683,ll1 $ 3,496,455 $ 35,447,493 City of Walthain,Massachusetts 109 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30,2022 S�ecia/Revemce Fun�ls Other Ciry Public Safety HUD Schuu] Ciry Special Federal Federa] Federal Federa] State School Revenue Grants Grants Grants Grants Grants State Grants REVElVUES Charges for Services............................................................. $ - $ - $ - $ - $ - $ - $ - Intergovernmental.............................................................. 95,SS5 17,725 29Q113 1,432,285 6,275,123 1,005,716 600,135 Specia]assessments............................................................. - - 6,270 - - - - Fines and Forfeitures.........................................................._ 17,520 - - - - - - Departmental and Other....................................................... 433,458 - - 149,454 - - - Contributions..................................................................... - - - - - - - ImestmentIncome........................................._................... _ _ _ 1,411 - 37 - TOTALREVENUES....................................................... 546,563 77,725 296,383 1,583,150 6,278,123 1,005,753 600,135 EXPENDITURES Current General Government......................................................... 66,598 - 29,088 - - 82,348 - PublicSafety................................................................._. 85,394 - 126,612 - - 366,972 - Education....................................................................... - - 141 - 6,471,484 - 566,729 Public Works................................................................... - - 2,223 - - 5,020 - Health and Human Services............................................... 21,945 - 112,952 - - 79,351 - Culture and Recreation...................................................... 351,266 - 4,563 - - - - CommunityDevelopment........................._._.................... 23,330 17,725 - 1,392,774 - 350,156 - Debt service: Principal......................................................................... - - - 210,000 - - - Interest........................................................................... _ _ _ 3,551 _ _ _ TOTAL EXPENDITURES................................................ 548,533 17,725 275,579 1,606,325 6,471,454 SS3,S47 566,729 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES._._.................................... (1,970) - 20,504 (23,175) (193,361) 121,906 33,406 OTHER FINAIVCING SOURCES(USES) Leases................................................................................. - - - - - - - Transfers Out.................................................................._ (88,000) _ _ _ _ _ _ TOTAL OTHER FINANCING SOURCES(USES)................. (88,000) - - - - - - NET CHANGE IN FUND BALANCES....................................... (89,970) - 20,804 (23,175) (193,361) 121,906 33,406 PUND BALANCES AT BEGINMNG OP YEAR........................... 5,315,901 3,717 (203,39� 940,221 SS,056 523,019 74,660 FUND BALANCES AT END OF YEAR....................................... $ 5,225,931 $ 3,717 $ (152,593) $ 917,046 $ (105,305) $ 644,925 $ 108,066 City of Walthain,Massachusetts 110 Annual Comprehensive Financial Report Special Revenue Fimds School Vocational Insurance Sale of Revenue Schoo] Parking UDAG Nova Schoo] Public 2ecovery Gifts Lots/Graves Reserve Lunch Meters Biomedical Reserve Safety $ - $ - $ - $ 319,780 $ 93,069 $ - 5 - S - $ - - - - 2,347,085 4,455,457 - - - 429,176 - - - - - 28,660 - - - 2,529 - 129,600 136,651 - 406,025 45,450 SQ360 - - 697,094 - 74,849 - - - - - 74 26 15 91 - 6,942 2,529 697,165 129,600 2,578,421 4,578,541 434,655 45,541 SQ360 436,118 - 4,730 - - - - - - - 1,529 13,815 - - - - - - 515,012 - 230,017 - 3,915,441 3,159,194 - - 4Q475 - 993 - 15,039 - - - - - - - 5,992 - - - - - - - - 20,081 - - - - - - - - - - - - 1,F359,383 3,621 - - 2,522 277,635 15,039 3,915,441 3,189,19A 1,859,383 3,621 4D,475 515,012 7 419,533 114,561 (1,037,020) 1,389,3�17 (1,424,698) A4,920 9,885 (78,894) (1,000) - - - - - - - - (1,000) (993) 419533 114,561 (1,037,020) 1,359,347 (1,424,698) 44,920 9,885 (78,594) 13,596 820,437 413,548 1,911,424 1,130,061 2,228,571 8,792 18,971 7,130,582 $ 12,603 $ 1,239,970 $ 528,109 $ S7A,404 $ 2,519,408 $ 803,873 $ 53,712 $ 25,856 $ 7,051,688 (continued) City of Walthain,Massachusetts 111 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30,2022 Sqecial Revenue Funds Traffic Impact Police and Waltham Student Security Perpetual Pederal Pund Pire Detail Housing Activities Deposits Care Partnership Subtotal REVENUES Charges for Services.................................................. $ - $ 2,924,163 $ - $ - $ - $ - $ - $ 3,337,012 Intergovernmental............_......................._.........._ - - - - - - 710,722 17,692,122 Specia]assessments................................................... - - - 6,270 Fines and Forfeitures................................................. - - - - - - - 46,150 Departmental and Other..........._............................... 579,203 - - 350,274 - - - 2,256,034 Contributions.......................................................... - - - - - 50,950 - 822,893 Investment Income................................................... 1,528 - 2,311 141 - - - 12,876 TOTAL REVENUES........................................... SS1,031 2,924,163 2,311 350,415 - 50,950 71Q722 24,203,357 EXPENDITURES Current: General Government.............................................. - - - - - - - 182,764 Public Safety........................................................ - 3,089,511 - - - - 15,707,560 19,906,405 Education............................................................ - - - 320,800 - - - 14,734,281 Public Works........................................................ - - - - - 41,550 - 64,825 Health and Human Services.................................... - - - - - - - 223,240 Culture and Recreation........................................... - - - - - - - 375,910 Community Deve]opmenL...................................... 563,608 - 14,220 - - - - 4,524,517 Debt service: Principal.............................................................. - - - - - - 434,309 644,309 lnterest................................................................ - - - - - - 138,046 141,597 TOTAL EXPENDITURES..................................... 863,608 3,089,511 14,220 320,800 - 41,550 16,279,915 40,798,148 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES............................... (282,577) (165,348) (ll,909) 29,615 - 9,400 (15,569,193) (16,59A,761) OTHER FINANCING SOURCES(USES) Leases........................................................................... - - - - - - 15,569,193 15569,193 TransfersOut_.................................._..........._....._ _ _ _ _ _ _ _ (59,000) TOTAL OTHER FINANCING SOURCES(USES)._... 15,569,193 15,450,193 FUND BALANCES AT BEGINNING OF YEAR..............._ (252,577) (165,348) (11,909) 29,615 - 9,400 - (1,114,565) FUND BALANCES AT BEGINNING OF YEAR................. 6,642,304 (413,492) 1,542,158 514,789 - - - 28,703,918 FUND BALANCES AT END OF YEAR............................ $ 6,359,727 $ (578,840) $ 1,53Q249 $ 544,404 $ - $ 9,400 $ - $ 27,589,350 City of Walthain,Massachusetts 112 Annual Comprehensive Financial Report PermanentRinds Total Other Nonmajor Highway Cemetery Permanent Governmenta] Projects Sub-total Trust Funds Funds Sub-total Funds $ - $ - $ - $ - $ - $ 3,337,012 41,647 41,647 - - - 17,733,769 - - - - - 6,270 - - - - - 46,180 - - 50,950 - 50,950 2,336,984 - - - - - 822,893 88,487 19,672 108,159 121,035 41,647 41,647 139,437 19,672 159,109 24,404,143 - - - 1,813 1,813 184,577 - - - - - 19,906,405 - - - - - 14,734,281 17,123 17,12 13,077 - 13,077 95,025 - - - - - 223,240 - - - 20,516 20,516 396,426 - - - - - 4,524,817 - - - - - 644,30H 141,597 17,123 17,123 13,077 22,329 35,406 40,850,677 24,524 24,524 126,360 (2,657) 123,703 (16,446,534) - - - - - 15,569,193 - - (59,000) 15,450,193 24,524 24,524 126,360 (2,657) 123,703 (966,341) (48,236) (48,236) 2,681,984 685,768 3,367,752 32,023,434 $ (23,712) $ (23,712) $ 2,SOS,344 $ 683,1ll $ 3,491,455 $ 31,057,093 (concluded) City of Walthain,Massachusetts 113 Annual Comprehensive Financial Report This page left intentionally blank. 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Riverwalk City of Walthain,Massachusetts 115 Annual Comprehensive Financial Report Statistical Section This part of the City of Waltham's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements,note disclosures,and required supplementary information says about the City's overall financial health. Financial Trends (pages 117-120) These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity (pages 121-123) These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity (pages 124 - 126) These sclledules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information (pages 127- 129) These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information (pages 130 - 131) These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted,the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. City of Walthain,Massachusetts 116 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental Activities NetInvestmentin Capital Assets.................... S 165,312,712 $ 164,015,843 $ 168,907,226 $ 171,191,593 $ 169,703,666 $ 172,23Q570 $ 178,SSS,539 $ 180,225,872 $ 203,589,323 $ 245,506,339 Restricted................................................... 46,282,436 52,842,407 49,579,791 60,636,230 66,881,349 71,414,954 74,186,256 75,541,131 82,001,511 65,717,512 Unrestricted............................................._ (49,699,556) (67,714,757) (214,483,584) (235,015,782) (246,403,435) (685,425,235) (714,253,221) (769,522,771) (816,044,878) (830,781,312) Total Governmental Acriviries Net Position...........S 161,895,562 $ 149,143,493 $ 4,003,433 $ (6,187,959)$ (9,818,420)$ (441,779,711) $ (461,178,426) $ (513,455,768)$ (530,454,044)$ (516,257,161) Business-Type Activities NetInvestmentin Capital Assets.................... $ 9,399,319 $ 10,4S2,S33 $ 14,092,537 $ 14,911,934 $ 15,409,731 $ 17,705,732 $ 16,553,781 $ 23,050,075 $ 25,547,021 $ 32,700,035 Restricted...................................................... - - - - - - - 102597 - - Unrestricted................................................ 23,952,132 27,353,479 23,759,048 27,252,829 30,230,369 19,856,951 24,700,610 15,300,174 14,984,006 5,071,257 Total Business-Type Activities Net Position...........$ 33,351,451 $ 37,866,312 $ 37,851,585 $ 42,164,763 $ 45,640,100 $ 37,562,683 $ 41,254,391 $ 41,452,846 $ 40,531,027 $ 40,771,322 Primary Government Net Investment in Capital Assets.................... $ 174,712,031 $ 174,498,676 $ 182,999,763 $ 186,103,527 $ 185,113,397 $ 189,936,302 $ 195,442,320 $ 203,275,947 $ 229,436,344 $ 275,506,374 Restricted................................................... 46,282,436 52,842,407 49,579,791 60,636,230 66,881,349 71,414,954 74,186,256 75,943,728 82,001,511 68,717,812 Unrestricted............................................... (25,747,454) (40,331,275) (190,724,536) (210,762,953) (216,173,066) (665,568,284) (689,552,611) (751,222,59� (801,060,872) (822,710,025) Total Primary Government Net Position...............$ 195,247,013 $ 157,009,505 $ 41,855,018 $ 35,976,804 $ 35,821,680 $ (404,217,028) $ (419,924,035) $ (472,002,922)$ (489,623,017)$ (475,485,539) City of Walthain,Massachusetts 117 Annual Comprehensive Finaneial Report CITY OF WALTHAM,MASSACHUSETTS CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2013 2014 2015 2016 2017 201R 2019 2020 2027 2022 Expenses Governmental Activiries: Genual Governmenc............................................$ 14,431,751 $ 14,141,084 $ 14,516,477 $ 17,458,090 $ 21,059,212 $ 17,997,394 $ 15,631,195 $ 18,958,539 $ 16,189,063 T, 14,024,011 PublicSafety....................................................... 56,396,153 60,787,241 59,675,967 71,565,431 64,099,(Y37 69,526,941 79,161,252 55,932,607 S3,S71,469 77,504,711 Rducatioa......................................................... 127,632,730 133,882,547 127,306,510 134,376,754 146,366,944 156,449,749 166,594,425 186,615,509 154,546,409 177,325,550 Public Works...................................................... 19,107,437 21,990,015 19,928,652 18,232,857 19,786,558 23,Q34,00.3 22,672,980 23,366,870 23560,756 24,231,119 Communi[v Development.................................... 4,332,865 4,198,865 4,399,974 4,562,345 3,334,231 7,&34,&51 8,162,491 11,648,7&5 10,Q32,000 10,806,032 Health and Human Secvices.................................. 6,327,318 6,532,946 4,022,919 4,435,415 4,304,882 4596,271 4,991,002 5,294,051 4,798,806 4,922,715 Culfure and Recreation......................................... 9,042,802 3,902,190 6,R43,362 7,426,345 7,111,347 6,7QS,R70 8,545,246 9,262,123 8,502,765 8,420,224 Interest.............................................................. 2,5ffi,037 2,550,610 2,450,774 2,2R3,883 2,OR9,864 2,136,465 2,168,991 1,921,450 6,543,397 5,1�5,559 i'otalGovecnmentActivitiesPxpenses............................ 234,852,093 247,984,998 239,144,635 260,341,120 268,152,075 288,281,544 307,927,615 342,999,934 348,344,665 322,751,431 Business-TYpe Acrivities: Sewer................................................................ 17,382,177 17,537,836 17,792,313 17,602,663 17,483,370 18{192,326 18.925.793 17.747.942 19,358.293 18.849.061 W atu................................................................ ll,995,289 12,161,194 12,623,659 13,000,651 13,605,238 14,137,215 14{132,176 13{l85,001 15,728,833 15,842,�49 Veterans Memorial Rink....................................... 457,608 503,830 563,324 556,318 643,626 517,819 563,698 661,992 568,979 577,392 Total BusinessType Acfivities 2xpenses......................... 29,835,074 30,202,860 30,979,296 31,159,632 31,732,234 33,147,360 33,521,667 31,594,935 35,656,105 35,265,002 Total Primary Gwemment Expenses..............................$ 264,6R7,167 $ 278,187,858 $ 270,123,931 $ 291,500,752 $ 299,RR4,309 $ 321,42R,904 $ 341,849,282 $ 374,894,869 $ 384,000,770 $ 358,050,433 Program Revenues Governmental Activiries: General Gwernment Cha�ges for Se�vices................� 4,225,256 $ 5,679,098 $ 6,540,791 $ 9,035,3A8 $ 6,393,016 $ 6,758,302 $ 11,938,027 $ 6,654,782 $ 9,7Q5,957 $ 14,206,278 Public Safery Charges for Servires........................... 3,91U,U93 3,966,696 4,049,827 3,925,311 4,197,435 4,613,820 4,735,733 3,369,626 4,293,528 4,527,123 Pducation Charges ForServices............................... 1,217,100 1,992,388 1,4R6,402 1,696,229 1,907,330 2,132,585 2,099,51R 1,533,R17 875,599 1,409,?a8 Public Works Chacges fox Sexvices.......................... 948,072 318,133 380,549 408,997 444,297 407,767 446,749 427,635 462,956 484,661 Other Chaxges for Secvices.................................... 2,105,916 1,821,190 2,004,880 1,952,619 1,062,741 924,079 1,054,112 752,277 556,300 871,541 Operacing Gran[s and Conhibu[ions........................ 33,044,593 36,885,652 28,018,652 34,465,615 42,829,194 50,811,292 48,259,161 52,619,262 62,640,622 E0,684,088 Capital Grants and Contributlons.......................... 2,820,119 1,955,479 1,786,940 2,030,654 3,395,633 1,221,3Q5 1,029,053 4,164,815 28,1&3,698 21,8T,382 Total Government ActiviRes Program Revenues................ &7,771,1&9 52,068,636 44,268p&1 53,014,773 60,229,6A6 66,869,150 69S9Z,353 69SZZ.n4 106,758b90 104,Oi8,731 Business-Type Activities: SewerChargesforSecvices.................................... 19,582,834 19,389,533 19,615,814 19,481,088 19,128,368 17,956,502 19,160,245 17,674,713 17,343,433 20,151,515 Wacu Charges for Sesvices.................................... 14,875,449 14,687,995 15,102,ll6 15,039,936 15,430,310 13,723,487 14,286,491 13,304,202 13,&51,659 13,387,939 Vetuans Memorial Rink Charges for Services............ 385,832 397,985 390,878 441,329 432,188 410,428 397572 395,000 335,403 421,455 OperatinK Grants and Contributions........................ 124,881 43,857 101,988 104,867 - 2,619 - - - - Capital Gcants and Conhibutions........................... - 22,901 2,320,501 - - 35,330 2.994.024 - 2.990.745 911,818 Total BusinessType Activities Pro�ram Revenues.............. 39,968,996 34,592,271 37,531,297 35,067,220 34,990,R66 32,128,366 36,838,335 31,373,915 34,521,240 34,913,131 Total Primary Gwernment Program Revenues.................$ 82,790,145 $ 86,610,907 $ R1,799,33R $ RR,OR1,993 $ 95,220,512 $ 98,997,516 $ 106,430,688 $ 100,896,129 $ 141,279,930 $ 138,971,852 Net�Expense)/2evenue GovesnmentalActivities...............................................$ (187,080,994)$ (195,916,362)$ (194,876,594)$ (207,326,347)$ (207,922,429)$ (221,412,394)$ (238,335,262)$ (273,477,720)$ (2415�,975)$ (218,732,700) Business-TypeA�Rvities............................................... 5,133,922 4,339,&11 6,552q01 3,907,588 3,258,632 (1,018,994) 2,916,668 (521,020) (1,134,865) (355,871) TotalPrimarYGovernmentNetExpense..........................$ (181,947,022)$ (191,576,951)$ (188,324,593)$ (203,418,759)$ (204,663,797)$ (222,431,388)$ (235,418594)S (273,998,740)$ (242,720,840)$ (219,088,571) General Revenues and Other Changes in Net Position Governmental Activities: Real 2stare and Pecsonal Pxoperry Taxes, Netofi'axRefundsPayable.................................$ 153,272,077 $ 159,052,033 $ 161,059,057 $ 165,6(Y3p12 $ 174,279p26 $ 175,30.5,767 $ 1S4,9S1,077 $ 190,015,100 $ 156,033,657 $ 204,t335,510 Moror Vehicle and Other Excise Taxes..................... 6,650,738 7,002,622 7,588,970 8,240,497 8,300,679 8,463,994 8524,782 8,342,442 7,787,307 7,455,047 Horel/Motel'Iax................................................. 3,298,311 3,535,326 3,837,715 4,382,145 4,270,443 4,292,7&5 5,060,931 4524,811 959,940 2,921,240 CmnmuniryPresecvationTax................................. 1,167,324 1,195,&90 3,365,262 2,695,476 2,801,619 2,894,647 3,010,079 3,189538 3,283,277 3,480,932 Meals'Iax.......................................................... 702,090 705,407 1,278,394 1,451,906 1,546,042 1,612,669 1,681,619 1,544,989 1,102,254 1,37,411 Penalties and Interest on Taxes............................... 59,ffi2 93,151 687,747 722,464 623,172 707,197 611,087 463,740 624,047 792,809 PaymentsinLieuof7axes..................................... 2,475,978 2,535,235 58,763 46,849 58,579 77,740 71,633 - 2S3,S19 11,681 Grants and Contributions Not Restcicted to SpecificPrograms............................................... 8,835,809 9,064,858 9,557,090 9,745,521 10,ll0,325 10,392,962 10,712,304 10,971,726 11,078,046 11,024,595 Unresnicted Inveshnentlncome............................. 135,838 181,321 491,842 2,055,791 1,333,587 713,990 4,316,Q38 2,318,193 3,175,423 1,025,SQ3 Gain on Sale of Capital Assets................................ 52,7A8 2&,300 - 1,16&,887 1,053,296 - 70.997 52.118 82,370 58.4Q5 Transfecs,Net..................................................... (125,905) (175,&50) (18&,205) (A05,590) (84,800) (159,000) (100,000) (218,279) (365,848) (218,250) i'otalGovecnmentalActivities....................................... 176,520,320 183,164,293 187,740,635 195,702,958 2U4,291,968 207,302,751 218,936,547 221,200,375 224,044,292 232,525,ot33 Business-TYpe Acrivities: Unresniceedlnvesnnene7ncome............................. - - - - - 356,943 675,040 501,196 147,198 77,916 Transfecs,Net..................................................... 125,405 175,450 184,205 405,590 84,800 159.000 100.000 218.279 365,848 218,250 Total BusinessType Activities....................................... 125,4U5 175,450 1R4,205 405,590 R4,R00 515,943 775,040 719,475 513,046 295,155 Total P�imary Gwernment...........................................� 176,64,725 $ 183,339,793 $ 187,924,840 $ 196,108,548 $ 204,376,768 $ 207,818.694 $ 219.711587 $ 221.919,853 $ 224,557,338 $ 233,22i,749 Changes in Net Position Govesnmental Activities...............................................$ (10,560,624)$ (12,752,069)$ (7,135,959)$ (11,623,389)$ (3,630,461)$ (14,109,643)$ (19,398,715)$ (52,277,342)$ (17541,6&3)$ 14,196,8&3 Business-TYpeActivi[ies............................................... 5,259,327 4,514,861 6,736,206 4,313,178 3,343,432 (503,0.51) 3,691,708 198,455 (621,819) (59,7Q5) i'otalPrimaryGovernment...........................................$ (5,301,297)$ (8,237,208)$ (399,753)$ (7,310,211)$ (287p29)$ (14,612,694)$ (15,707,00�$ (52,07S,SS�$ (15,163,502)$ 14,137,17N City of Walthain,Massachusetts 118 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS FUND BALANCES,GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Fund Restricted....................................... $ 8,132,094 $ 8,351,922 $ 8,845,058 $ 9,967,384 $ 11,008,339 $ 11,615,214 $ 13,649,064 $ 15,838,653 $ 17,780,468 $ 18,912,839 Committed...................................... 4,804,214 1,492,937 8,132,421 7,198,929 5,577,677 5,412,452 5,291,707 6,928,901 5,935,532 2,282,546 Assigned........................................ 1,677,650 4,378,117 9,145,765 3,675,694 4,484,428 4,414,699 4,044,691 6,212,284 5,445,694 4,225,352 Unassigned..................................... 29,196,820 34,984,665 26,208,145 27,363,382 30,949,096 26,865,693 31,953,010 35,230,828 37,790,279 51,010,464 Total General Fund............................... $ 43,810,778 $ 49,207,641 $ 52,331,389 $ 48,205,389 $ 52,019,540 $ 48,308,058 $ 54,938,472 $ 64,210,666 $ 66,951,973 $ 76,431,201 All Other Governmental Funds Nonspendable................................. $ 2,047,898 $ 2,150,692 $ 2,228,014 $ 2,376,974 $ 2,397,259 $ 2,384,500 $ 2,489,317 $ 2,573,322 $ 2,905,339 $ 3,030,285 Restricted....................................... 38,252,137 37,642,538 39,592,873 45,888,506 55,195,752 54,837,132 56,540,834 60,279,638 173,545,387 118,398,306 Unassigned..................................... (543,674) (1,372,518) (6,588,749) (9,416,767) (486,530) (569,406) (383,072) (2,365,870) (665,125) (7,596,924) Total All Other Governmental Funds........ $ 39,756,361 $ 38,420,712 $ 35,232,138 $ 38,848,713 $ 57,106,481 $ 56,652,226 $ 58,647,079 $ 60,487,090 $ 175,785,601 $ 113,831,667 City of Walthain,Massachusetts 119 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS CHANGES IN FUND SALANCES,GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues: Rea]Estate and Personal Property Taxes, Net of Tax Refunds...................................................$ 152,293,138 $ 158,221,522 $ 160,422,604 $ 164,931,064 $ 173,582,264 $ 177,170,045 $ 184,190,588 $ 190,380,885 $ 195,113,725 $ 204,705,525 Tax Liens.................................................................... 1,203,258 1,010,349 1,143,807 674,676 903,353 792,606 597,724 451,444 347,698 1,38Q129 Motor Vehicle and Other Excise Taxes_.........._.........._.... 6,567,957 7,127,054 7,535,378 7,990,210 5,197,977 5,617,7ll 5,420,840 7,596,205 7,834,915 5,166,999 Community Preservation Tax......................................... 2,469,122 2,534,651 2,604,317 2,691,518 2,803,700 2,599,487 3,008,465 3,173,921 3,279,164 3,493,857 Hotel/Motel Tax.......................................................... 3,298,311 3,535,326 3,837,715 4,382,145 4,270,443 4,292,785 5,060,931 4,520,811 959,94D 2,921,240 Meals Tax................................................................... 1,167,324 1,195,490 1,275,394 1,451,906 1,546,042 1,612,669 1,681,619 1,544,989 1,102,254 1,537,411 Charges for Services........................_........................... 3,036,615 3,312,082 3,337,900 3,213,557 3,499,681 3,411,670 4,098,488 2,776,585 3,062,175 3,337,012 Penalties and Interest on Taxes....................................... 702,090 705,407 687,746 722,465 623,171 707,195 611,087 463,740 624,046 792,809 Payment in Lieu of Taxes............................................... 54,812 43,151 58,763 46,849 58,579 77,740 71,633 - 283,819 11,681 Licenses and Permits.................................................... 4,259,773 5,830,674 6,545,176 5,640,647 6,005,613 6,520,040 11,531,814 6,325,289 9,256,377 14,06Q917 Pines and Porfeitures.........._............._........._.........._.. 828,483 752,024 629,143 664,299 570,862 592,877 535,185 397,333 414,693 385,475 Intergovernmental........................................................ 43,539,794 45,280,990 29,750,004 45,432,282 53,962,488 58,446,102 56,268,836 64,616,135 87,388,965 104,480,666 Departmental and Other................................................ 3,666,098 3,510,429 4,376,307 4,048,454 4,262,969 6,765,383 5,737,350 3,319,050 3,908,641 4,293,714 Special Assessments..................................................... 13Q820 96,635 88,261 66,861 55,573 2,858 1,380 5,026 1,288 7,591 Contributions.........._........................_.........._............ 652,141 637,428 1,145,063 759,891 943,828 1,272,257 1,264,012 605,659 766,564 822,893 Investment Income...................................................... 132,533 324,485 575,822 2,232,256 1,453,223 776,175 4,798,036 2,624,840 3,582,335 1,200,672 Total Revenue............................................................. 224,002,269 234,117,697 224,022,400 247,979,380 262,739,766 273,957,600 287,877,988 289,102,242 317,926,605 351,598,591 Expenditures: Genera]Government..................................................... 9,202,807 11,733,712 ll,290,176 ll,933,370 16,013,588 13,088,925 11,304,614 12,397,604 13,395,94D 18,607,138 Public Safety............................................................... 32,623,739 35,972,040 34,350,115 43,217,251 39,504,974 43,075,736 43,03Q000 45,715,215 4$084,959 62,041,606 Education......._................................................._....... 73,395,683 79,102,762 52,125,372 96,940,045 105,011,285 111,957,159 135,331,585 133,495,658 179,808,992 195,090,521 Public Works................................................................ 13,786,096 16,951,921 19,472,720 17,566,377 21,046,731 17,546,746 17,732,647 19,151,596 17,493,115 17,753,084 Community Development............................................... 4,617,505 4,069,878 6,612,450 3,889,074 2,373,854 8,436,392 8,833,559 7,399,464 6,577,313 24,618,446 Health and Human Services........................................... 1,90Q486 1,872,328 1,749,666 2,025,346 1,940,832 2,718,946 2,441,126 2,152,041 2,02$691 2,426,722 Culture and Recreation......_........._.........._..........._...... 5,326,135 4,625,983 4,602,562 5,793,517 4,596,281 4,154,137 5,043,369 9,015,412 4,794,950 6,438,107 Pension Benefits........................................................... 30,328,370 31,040,342 14,577,088 15,168,439 15,677,027 16,179,125 16,755,738 17,322,476 17,853,537 18,640,078 Employee Benefits......................................................... 35,055,370 37,367,643 37,023,287 43,488,817 47,150,295 48,131,846 47,456,831 47,540,619 47,642,385 51,568,753 Claims and Judgments..................................................... - - 193,000 - - - - - - - State and County Charges.............................._.........._... 1,597,185 1,763,919 1,705,001 1,533,755 1,877,795 1,515,848 1,985,334 2,046,392 2,�51,210 2,123,454 DebtService......................_.......................................... Principal.................................................................. 9,346,738 7,745,398 7,634,498 7,425,238 7,197,238 8,501,238 8,251,238 8,641,044 9,470,407 10,750,547 Interest.................................................................. 2,772,464 2,603,692 2,669,154 2,481,308 2,315,202 2,508,4Q5 2,671,122 2,325,305 3,672,998 9,520,131 Tota]Expendituzes........................................................ 219,952,581 234,849,618 224,008,389 251,762,537 264,705,102 275,444,503 300,837,163 310,202,826 352,874,500 419,578,587 ExcessoERevenuesOver(Under)Expenditures...__......._._...... 4,049,688 (731,921) 14,011 (3,753,157) (1,965,336) (4,486,9Q3) (12,959,175) (21,100,584) (34,947,595) (67,979,996) Other Financing Sources(Uses) Issuance of Bonds and Notes.................._._.................... 8,603,460 4,567,760 - - 18,749,000 - 20,224,806 30,364,169 144,911,000 - Premium from Issuance of Bonds and Notes...................... 362,232 376,525 105,368 159,010 2,199,212 19,036 1,388,639 2,014,781 7,816,755 95,942 Proceeds of Refunding Bonds......................................... 1,615,200 - - - - - - - - - Premium from Issuance of Refunding Bonds..................... 127,303 - - - - - - - - - Leases................................................................_...... - - - - - - - - - 15,569,193 Sale of Capital Assets..................................................._ 52,748 24,300 - 3,520,312 3,173,843 461,130 70,997 52,118 82,370 58,405 Transfers In................................................................. 88,406 162,666 1,588,958 3,709,537 42,975 56,013 1,400,400 3,757,422 96,406 9,589,000 Transfers Out.............................................................. (213,811) (335,116) (1,773,163) (4,115,12'� (127,775) (215,013) (1,500,400) (3,975,701) (462,255) (9,807,250) TotalOtherPinancingSources(Uses)_............._.........._.......... 10,635,538 4,793,135 (78,537) 3,273,732 24,037,255 321,166 21,584,442 32,212,789 152,444,306 15,505,290 Net Change in Pund Balance......_.........._.........._.........._._...$ 14,685,226 $ 4,061,214 $ (64,526)$ (509,425)$ 22,071,919 $ (4,165,737)$ 8,625,267 $ 11,112,205 $ 117,496,411 $ (52,474,706) Capitalized Capita]Outlay Expendituxes............................... $ 7,891,233 $ 11,710,679 $ 14,673,377 $ l 1,384,102 $ 16,573,45.5 $ 10,424,024 $ 31,352,224 $ 31,941,993 $ 60,275,857 $ 104,127,833 Debt Service as a Perceniage of Noncapital Expenditures.._......... 5.71% 4.64% 4.92% 412% 3.83% 4.11% 4.05% 3.94% 4.49% 6.43% City of Walthain,Massachusetts 120 Annual Comprehensive Finaneial Report CITY OF WALTHAM,MASSACHUSETTS ASSESSED VALUE AND ACTUAL VALUE OF TAXASLE PROPERTY BY CLASSIFICATION AND TAX RATES LAST TEN FISCAL YEARS Assessed and Actual Values and Tax Rates Total Total Total Fis<al Residential Residential Commercial Industrial Peisonal Commercial Commercial Direct Assessed Yeaz Value 7ax Rate Value Value Property Value Tas Rate 2ate Value 2013 (1) $5,Fi97,S74,745 $1349 $2,054,231,833 $462,439,256 $317,744,640 52,�34/115,729 $31.77 $19.56 $8,532,290,474 2014 $5,772,320,361 $13.43 $2,127,776,189 $461,ll2,274 $336,977,250 52,925,865,713 $31.97 $19.67 $8,698,186,074 2015 $5,900,062,585 $1313 $2,220,696,817 $471,070,238 $380,479,990 53,072,247,045 $3179 $19.52 $8,972,309,630 2016 (1) $6,546,761,667 $1224 $2,429,262,190 $514,728,349 $455,541,880 53,399,532,419 $29.53 $1815 $9,946,294,086 2017 $6,891,358,240 $12.56 $2,578,SU5,792 $528,610,108 $494,9N8,700 53,602,ll4,600 $29.04 $1822 $10,493,472,840 2018 $7,333,851,274 $12.61 $2,834,882,520 $519,990,970 $529,381,920 $3,884,255,410 $27.97 $17.93 $11,218,106,684 2019 (1) $8,034,063,638 $12.66 $3,084,647,258 $551,234,728 $566,733,810 54,202,615,796 $26.45 $17.40 $12,236,679,434 2020 $9,151,568,461 $11.95 $3,436,933,873 $617,118,550 $556,640,900 $4,610,693,323 $24.36 $1611 $13,762,261,784 2021 $9,883,676,357 $11.32 $3,669,722,987 $683,891,100 $610,808,840 54,964,422,927 $23.08 $1525 $14,848,099,284 2022 (1) $10,448,508,068 $1114 $3,942,882,483 $717,466,567 $624,710,780 $5,255,059,830 $22.87 $15.08 $15,733,567,895 Total Assessed Value by Classification Total Assessed Value by Classification Fiscal Year Ended June 30,2013 Fiscal Year Ended June 30,2022 ai s� 5� a% 25% 66% 6]% Total Commercial Value as %of Total Value 44.0% 41.0% 38.0% 35.0% 32.0% 29.0% 26.0% 23.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1)Revaluation year. Source:Assessor's Depaztment,City of Waltham All property in the Coimnonwealth of Massachusetts is assessed at100%of fair cash value. Note:Chapter 59,Section 21C of ihe Massachusetts GeneraL Laws,known as"Propositio�21�2",imposes 2 separate]imits on the annual tax levy of the City.The primary limitation is that the tax levy cannot exceed 21/2 percent of the full and tair cash value. The secondary limitafion is that the tax levy cannot exceed the maximum levy limit for the preceding fiscal year as determined by the State Commissioner of Revenue by moce than 21/2 percent,subject to an exception for pxoperry added to the tax colls and for certain substantial valuation i�creases other than as part oF a general revaluation.The secondary Gmit may be exceeded in any year by a majoriry vote of the voters,however it cannot exceed the primary]imitation. City of Walthain,Massachusetts 121 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PRINCIPAL TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 2022 2013 Percentage of Percentage of Total-all locations Total Taxable Total Taxable Nature of Assessed Assessed Assessed Assessed Name Business Valuation Rank Value Valuation Rank Value Boston Properties BP Reservoir Place,LLC Office $882,433,500 1 9.72% $75,969,600 4 0.89% Bay Colony Property LLC $139,416,500 1 1.63% (20 parcels total) Hobbs Brook 404 Wyman Street Office $444,782,400 2 4.90% $53,414,300 11 0.63% 279 Wyman Street 275 Wyman Street (17 parcels total) ARE-MA/Alexandria Real Estate Office $253,335,700 3 2.79% (9 parcels total) Davis Companies Office $236,371,600 4 2.60% DMP RE II LLC $49,352,900 14 0.58% PDWinterTrust $57,471,600 7 0.67% (5 parcels total) Duffy Brothers Office $212,748,700 5 2.34% (10 parcels total) NSTAR Utility $194,320,180 6 2.14% $87,249,300 3 1.02% NWALP Office $151,015,700 7 1.66% (7 parcels total) HealthPeak(200 Smith St) Office $144,901,100 8 1.60% AstraZeneca Office $134,434,890 9 1.48% $95,636,000 2 1.12% PPF OFF 828-830 Winter St LLC Office $127,609,100 10 1.41% ASN MASS Holding(Avalon) Apartments $88,535,600 0.98% $56,241,300 9 0.66% Windsor Village $60,740,100 5 091% MMS Lot&MMS Winter St LLC Office $59,324,000 6 090% (860-870 Winter St) Gardencrest Apartments Apartments $56,337,300 8 0.66% Longview Place,LLC,Hope Ave Apartments $53,961,700 10 0.63% Totals $2,870,488,470 31.62% $845,114,600 9.90% Source: Assessor's Department,City of Waltham FY22 includes all property locations owned FY22 Classification Hearing Packet City of Walthain,Massachusetts 122 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Less First Year Percent of Delinquent Total Fiscal Total Abatements& Net Net as% Current Net Levy Tax Tax Year Tax Levy Exemptions Tax Levy of Total Tax Collections Collected Collections Collecfions 2013 (1) $ 154,887,838 $ 1,098,748 $ 153,789,090 99.29% $ 151,681,456 95.63% $ 1,948,314 $ 153,629,770 2014 $ 158,922,344 $ 1,454,831 $ 157,467,513 99.08% $ 155,789,875 98.93% $ 2,058,441 $ 157,848,316 2015 $ 163,000,697 $ 1,221,598 $ 161,779,099 99.25% $ 16Q147,707 98.99% $ 2,065,561 $ 162,213,268 2016 (1) $ 167,901,732 $ 951,026 $ 166,950,706 99.43% $ 165,282,149 99.00% $ 1,183,650 $ 166,465,799 2017 $ 174,137,000 $ 830,395 $ 173,306,605 99.52% $ 171,242,977 98.81% $ 1,346,066 $ 172,589,043 2018 $ 179,334,620 $ 875,236 $ 178,459,384 99.51% $ 175,333,537 98.25% $ 1,870,836 $ 177,204,373 2019 (1) $ 184,954,321 $ 571,878 $ 184,382,443 99.69% $ 181,032,818 95.18% $ 1,688,059 $ 182,720,877 2020 $ 191,667,486 $ 992,467 $ 19Q675,019 99.48% $ 187,595,770 98.39% $ 2,393,460 $ 189,989,230 2021 $ 195,869,943 $ 804,408 $ 195,065,535 99.59% $ 192,922,118 98.90% $ 2,020,528 $ 194,942,646 2022 (1) $ 205,802,236 $ 731,875 $ 205,07Q361 99.64% $ 203,237,574 99.11% $ 2,751,365 $ 205,985,939 Real Estate Tax Levies vs.First Year Collections Last Ten Fiscal Years $22Q000,000 $200,000,000 $180,000,000 $16Q000,000 - $140,000,000 $120,000,000 $100,OOQ000 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (1)Revaluation year. Source:Assessor's Department City of Waltham City of Walthain,Massachusetts 123 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS RATIOS OF OUTSTANDING DEBT AND GENERAL BONDED DEBT LAST TEN FISCAL YEARS Governmental Activities Debt General Private Percentage Percentage Fiscal U.S.Census Personal Assessed Obligation Placement& Per of Personal of Assessed Year Population Income Value Bonds Leases Capita Income Value 2013 60,632 $1,823,593,000 $8,532,290,474 $77,098,769 $0 $1,272 4.23% 0.90% 2014 60,632 $1,720,850,000 $8,698,186,074 $73,795,122 $0 $1,217 4.29% 0.85% 2015 60,632 $1,823,593,000 $8,972,309,630 $66,032,614 $0 $1,089 3.62% 0.74% 2016 63,378 $2,228,433,858 $9,946,294,086 $58,480,367 $0 $923 2.62% 0.59% 2017 63,149 $1,992,543,000 $10,493,472,840 $68,914,654 $0 $1,091 3.46% 0.66% 2018 63,149 $2,094,061,000 $11,218,106,684 $60,413,416 $0 $957 2.88% 0.54% 2019 63,378 $2,230,717,000 $12,236,679,434 $72,386,981 $0 $1,142 3.25% 0.59% 2020 63,378 $2,310,541,000 $13,762,261,784 $94,110,109 $0 $1,485 4.07% 0.68% 2021 62,962 $2,443,219,000 $14,848,099,284 $228,589,702 $961,000 $3,646 9.40% 1.55% 2022 62,495 $2,565,949,000 $15,733,567,898 $218,483,464 $15,885,884 $3,750 913% 1.49% Business-type Activities(1) Total Primary Government General Private Total Percentage Percentage Fiscal Obligation Placement& Debt Per of Personal of Assessed Year Bonds Leases Outstanding Capita Income Value 2013 $25,366,592 $0 $102,465,361 $1,690 5.62% 1.20% 2014 $23,182,257 $0 $96,977,379 $1,599 5.64% 1.11% 2015 $22,718,219 $0 $88,750,833 $1,464 4.87% 0.99% 2016 $20,344,280 $0 $78,824,647 $1,244 3.54% 0.79% 2017 $25,835,998 $0 $94,750,652 $1,500 4.76% 0.90% 2018 $22,049,972 $0 $82,463,388 $1,306 3.94% 0.74% 2019 $24,761,819 $0 $97,148,800 $1,533 4.36% 0.79% 2020 $22,130,410 $0 $116,240,519 $1,834 5.03% 0.84% 2021 $13,864,400 $6,255,570 $249,670,672 $3,965 10.22% 1.68% 2022 $12,022,000 $5,210,332 $251,601,680 $4,026 9.81% 1.60% (1)Sewer,Water and Veterans Memorial Rink Funds Source: Audited Financial Statements,U.S.Census,Division of Local Services City of Walthain,Massachusetts 124 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITES DEBT AS OF JUNE 30,2022 Estimated Current Year Estimated Share of Assessment for Debt Percentage Overlapping Operations and City of Waltham,Massachusetts Outstanding Applicable(1) Debt Debt Service Debt Repaid with Property Taxes and User Charges MWRA Water......................................... $ 1,960,227,000 3.727% $ 73,057,660 $ 6,038,941 MWRA Sewer......................................... 3,153,683,000 2.723% 85,874,788 8,979,163 MBTA................................................... 5,149,356,000 0.818% 42,121,732 1,435,534 SubTotal........................................................ 201,054,180 $ 16,453,638 City Direct Debt.............................................. 245,003,525 Total Direct and Overlapping Debt..................... $ 446,057,705 Source:Official Statement for Sale of BANS 6/6/22 (1) The percentage of total overlapping debt is derived from the City's share of capital charges divided by the debt at fiscal year end. City of Walthain,Massachusetts 125 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS COMPUTATION OF LEGAL DEST MARGIN LAST TEN FISCAL YEARS PiscaL Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Equalized Valuation.._.................._..............._.......S 9,729,152,000 $ 9,539,477,600 $ 9,539,477,600 $ 9,539,477,600 $ 10,593,326,800 $ 1OS93,326,800 $ 12,407,269,700 $ 12,407,269,700 $ 15,250,634,600 $ 15,250,634,600 Debt Limit-5%of 8qualized Valuation...................... 486,59d00 476,973,580 476,973,880 A76,973,580 529,666,340 529,666,340 620,363F185 620,363,485 764,031,730 764,031,730 Less: Outstanding DebtApplicable to Limit.................... 91,1A3,839 56,351,769 75,707,154 69,755,692 8A,139,O1A 74,025,949 85,223,268 lOSA65,070 97,8A3,473 86,766,362 AuYhorized a�d Unissued Debt..........................._ 16,953,434 17,7A2,134 25,835,956 1A,983,746 29,612,946 30,272,946 21,4A3,636 381,072,499 225,633,084 205,013,939 LegalDebtMargin._..._....._......_....._.........._....._.$ 378,361,827 $ 372,879,677 $ 372,430,770 $ 392,234,442 $ 415,914,380 $ 425,364,445 $ 510,696,581 $ 131,225,916 $ 440,555,173 $ 472,251,429 Total Debt Applicable to the Limit asaPercentageofDebtLimit................_............... 2222% 21.52% 21.92% 17.77% 21.45% 19.69% 17.65% 78.85% 42.34% 38.19% Soucce:Ciry Audi[or's Office,Ciry of Waltham City of Walthain,Massachusetts 126 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS PRINCIPAL EMPLOYERS (EXCLUDING CITY) CURRENT YEAR AND TEN YEARS AGO 2022 %of Total Employer Business Employees(Range)** Rank Employment Brandeis University Higher Education 1,000 4,999 1 2.73%-13.69% Bentley University Higher Education 1,000 4,999 2 2.73%-13.69% Fresenius Medical Care Pharmaceuticals 1,000 4,999 3 2.73%-13.69% National Grid Utility 1,000 4,999 4 2.73%-13.69% Novell,Inc Software 1,000 4,999 5 273%-13.69% ADP Waltham Payroll Services 500 999 6 1.36%-2.73% AM-PM Cleaning Carporation Janitorial Contracting 500 999 7 1.36%-2.73% Children's Hospital Medical 500 999 8 1.36%-2.73% Constant Contact,Inc Software 500 999 9 1.36%-2.73% Education Development Center Educational Software 500 999 10 1.36%-2.73% 2013 %of Total Employer Business Employees Rank Employment Brandeis University Higher Education 1,512 1 4.37% Bentley University Higher Education 800 2 2.31% Bank of America Financial Services 660 3 1.91% Astra-Zeneca Pharmaceutical 650 4 1.88% National Grid Utility 650 5 1.88% AM-PM Cleaning Carporation Janitorial Contracting 600 6 1.73% Nova Biomedical Corporation BioTech Research 600 7 1.73% Raytheon Corporation Electronics 587 8 1.70% Verizon Communications 520 9 1.50% Parexel International Corporation R&D Consultant 500 10 1.45% **Information is not readily available,the City is working to obtain for the 2023 ACFR Source: Mass Department of Labor and Warkforce Development City of Walthain,Massachusetts 127 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Per Capita Fiscal Population Personal Personal Median School Unemployment Year Estimates Income Income Age Enrollment Rate 2013 60,632 1,650,776,000 $27,226 33.9 5,183 5.0% 2014 61,918 1,823,593,000 $29,452 33.9 5,271 5.0% 2015 62,227 1,904,528,000 $30,606 34.0 5,281 3.6% 2016 63,378 2,228,433,858 $35,161 34.2 5,380 2.9% 2017 63,149 1,992,543,000 $31,553 34.2 5,461 2.8% 2018 63,149 2,094,061,000 $33,161 33.7 5,639 3.0% 2019 63,378 2,230,717,000 $35,197 34.2 5,647 2.5% 2020 63,378 2,310,541,000 $36,457 33.9 5,738 9.1% 2021 62,962 2,443,219,000 $38,805 34.3 5,780 4.8% 2022 62,495 2,565,949,000 $41,058 34.3 5,643 2.5% Source: U.S. Census,Division of Local Services Median age is based on most recent census data 2013 to 2022 population/personal income obtained from the Division of Local Services City of Walthain,Massachusetts 128 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS FULL-TIME EQUIVALENT CITY EMPLOYEES BY FUNCTION LAST TEN FISCAL YEARS Fiscal Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Function: General Government................ 94 94 99 99 99 99 100 102 94 96 Public Safety.......................... 354 355 376 380 383 384 396 396 376 383 Education.............................. 896 904 930 941 964 994 1,021 1,054 1,067 1,072 Consolidated Public Works....... 61 61 62 64 67 68 69 69 56 64 Community Development......... 22 22 22 24 24 24 24 24 23 23 Health and Human Services...... 15 16 17 17 17 17 17 17 15 16 Culture and Recreation............. 37 38 56 59 61 63 64 65 62 62 Water/Sewer.......................... 28 28 33 33 33 32 32 32 28 37 Total.................................... 1,507 1,518 1,595 1,617 1,648 1,681 1,721 1,759 1,721 1,751 Source:City records. City of Walthain,Massachusetts 129 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal Year Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government Cash flow(millions)............................................... 620 640 660 680 700 720 740 760 780 800 Accounts payable invoices processed......................... 36,000 36,000 36,000 36,000 36,000 35,360 35,880 36,400 36,950 37,150 Payroll checks processed......................................... 72,000 72,000 73,000 73,500 74,000 74,100 77,338 78,919 86,571 76,075 Police Arrests.................................................................. 928 912 800 828 852 689 650 512 422 476 Traffic citations...................................................... 8,698 7,243 6,000 ll,750 12,250 11,288 10,479 2,456 2,002 2,861 Parking violations.................................................. 3,837 3,500 2,800 3,538 4,150 2,244 2,260 1,468 1,093 1,307 Service calls.......................................................... 35,000 35,000 35,500 36,000 41,465 40,592 41,000 40,694 39,541 38,ll2 Major investigations............................................... 1,495 1,450 1,850 1,750 1,700 1,472 1,751 1,749 2,053 2,101 Fire Inspections-schools/nursing homes/hospitals..........., 100 100 110 110 180 280 280 280 280 280 Inspections-commercial/industrial.......................... 550 550 550 600 600 1,347 1,449 2 717 1,705 Emergency responses-box alarms............................. 1,900 1,900 2,000 2,000 2,000 2,850 3,000 3,150 3,300 3,338 Emergency responses-still alarms............................. 6,300 6,600 6,700 6,500 7,000 9,922 10,225 8,510 7,852 8,869 Emergency responses-false alarms............................ 150 150 150 170 180 195 185 175 165 169 Water Consumption in gallons(billions/year)...................... 3 2.4 2.5 31 2.6 3.0 2.3 2.29 2.485 2.46 Leak detection(miles)............................................. 150 340 256 340 170 170 300 310 310 340 Service repairs....................................................... 115 121 107 140 152 177 130 155 138 135 Sewer Service repairs....................................................... 29 54 40 38 36 59 34 40 47 55 Stoppages-mains.................................................. 124 120 159 69 90 111 66 70 52 68 Stoppages-services................................................ 281 270 343 222 296 201 144 150 139 105 Health and Human Services Permits-public health............................................ 780 772 920 957 925 1,038 1,231 1,231 1,243 1,159 Senior citizen programs........................................... 26 27 29 29 29 30 50 51 14 ll1 Senior citizen programs-participants........................ 2,822 2,653 2,735 2,863 3,067 3,171 3,175 4,033 2,300 2,850 Senior-meals served annually............................................. 22,260 22,265 24,968 25,219 29,442 29,962 34,414 41,600 21,000 43,362 Recreation activities................................................ 227 230 325 325 345 350 664 450 340 300 Recreation activities-participants............................. 26,249 27,275 22,050 24,942 25,123 32,245 34,000 28,000 27,000 22,904 Veterans cases....................................................... 1,065 1,080 1,080 2,000 2,000 2,000 2,000 2,000 2,000 2,000 Cemetery burials-Mount Feake.......................................... 200 210 214 215 210 203 178 185 226 218 Libraries Items circulated..................................................... 463,251 425,000 424,500 430,000 442,000 474,253 500,844 495,000 410,766 572,275 Registered borrowers.............................................. 27,418 27,000 27,500 27,500 27,500 27,271 30,238 28,000 27,036 26,068 Source:Various City Departments City of Walthain,Massachusetts 130 Annual Comprehensive Financial Report CITY OF WALTHAM,MASSACHUSETTS CAPITAL ASSETS EXPENDITURES BY PURPOSE LAST TEN FISCAL YEARS Fiscal Year Function/Program 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Equipment/Technology General Government............................ $ 250,223 $ 373,285 $ 81,159 $ 224,524 $ 152,778 $ 108,450 $ 479,110 $ 1,648,674 $ 31,484 $ 45,501 Public Safety....................................... 595,314 1,455,397 1,203,638 134,082 1,286,830 2,093,308 793,159 338,167 637,764 67,985 Public Works...................................... 80,463 498,127 213,149 89,990 525,044 1,366,063 637,497 213,936 52,917 113,761 Community Development..................... 32,421 80,978 - - 2,001,500 32,965 274,883 197,894 119,610 - Health&Human Services...................... - - - - - - - - - 4,700 Culture&Recreation............................ 1,500 295,521 273 19,010 108 - 6,462 4,055 229 1,697 Building Renovations GeneralGovernment...._..................... 58,470 - 92,880 - 55,844 27Q009 99,538 302,914 52,255 43,780 Public Safety....................................... 214,925 64,283 - 11,523 358,836 61,914 476,695 6,492,421 3,100,750 721,027 Public Works...................................... - 43,780 - - - - 81,236 4,473 - - Community Development..................... 856,123 3,061,442 932,666 168,155 364,400 2,262,662 1,032,773 515,638 1,797,029 1,381,589 Culture&Recreation............................ 459,969 840,826 312,716 331,152 29,597 4,875 1,447,820 - - - Street/Sidewalk Street Reconstruction............................ 144,168 821,253 2,021,084 4,O6Q227 5,031,619 890,360 569,227 2,795,495 1,327,759 594,471 Street Resurfacing(Chapter 90)............... 1,531,475 488,393 1,357,983 1,876,733 2,955,943 603,211 605,647 2,908,421 1,752,259 17,123 Parking Lot Construction....................... - - - - - 542,450 122,874 41,914 - - Water&Sewer Infrastructure/Equipment..................... 3,776,168 2,096,853 4,052,744 5,069,207 3,025,819 5,693,071 3,231,477 6,756,270 2,493,241 5,160,385 School Construction/Renovations/Equipment.... 290,912 1,110,824 485,866 68,042 1,472,383 845,092 855,881 1,972,861 48,854,307 63,657,097 Land Acquisition Culture&Recreation............................ 514,695 - 4,169,775 1,009,621 899,783 - - - - - Open Space........................................ - - - - 3,302,547 88,000 - 1,395,490 21,951,076 Education........................................... - - - - - - 18,000,000 11,000,000 - - Community Development..................... - - - - - - - - - 1,473,304 Land Development Culture&Recreation............................ 1,861,581 1,434,819 1,113,229 1,427,084 1,990,816 SS2,895 3,738,111 7,269,362 702,921 4,900,637 Community Development..................... - - - - - 257,460 194,691 30,634 1,073,815 718,439 Education............................................ - - - - - - 256,583 - - 2,583 Public Works........................................ - - - - - - 1,356,917 23,581 92,345 - Signals/Communications Community Development..................... 401,136 804,916 343,425 585,149 115,017 45,042 18,240 193,713 153,230 31,810 Grand Total.........................$ 11,069,543 $ 13,47Q697 $ 16,380,587 $ 15,074,497 $ 20,266,316 $ 19,262,374 $ 34,366,821 $ 42,710,422 $ 63,637,405 $ 100,886,966 Source:Auditor's Department City of Walthain,Massachusetts 131 Annual Comprehensive Finaneial Report