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HomeMy WebLinkAboutTown of Thomaston - Public Financial Report Town of Thomaston, Connecticut Annual Comprehensive Financial Report i�� . � �� �� �;` �''��>�"s< � <.:<: .t. Y� >� � �� , .� . =:. °� .��,' ,� � �1 : - - � `I *�:,;��: �� ;.��, ,� �^� ���, � 'NCORPpRATED �8�� For the Year Ended June 30, 2022 Annual Comprehensive Financial Report of the Town of Thomaston, Connecticut For the Year Ended J u n e 30, 2022 Prepared by: The Finance Department Tracy A. Decker, Finance Director Town of Thomaston, Connecticut Annual Comprehensive Financial Repori For the Year Ended June 30, 2022 Table of Contents Paqe Introductory Section Transmittal Letter 1-5 Organizational Chart 6 Principal Officials 7 Certificate of Achievement for Excellence in Financial Reporting For the Year Ended June 30, 2021 8 Financial Section Independent Auditors' Report 9-11 Management's Discussion and Analysis 12-23 Exhibits Basic Financial Statements Government-Wide Financial Statements A Statement of Net Position 24-25 B Statement of Activities 26 Fund Financial Statements C Balance Sheet- Governmental Funds and Reconciliation of Fund Balance to Net Position 27-28 D Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 29 E Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 30-31 F Statement of Fiduciary Net Position - Fiduciary Funds 32 G Statement of Changes in Fiduciary Net Position - Fiduciary Funds 33 H Notes to Financial Statements 34-84 Town of Thomaston, Connecticut Annual Comprehensive Financial Repori For the Year Ended June 30, 2022 Table of Contents Paqe RSI Required Supplementary Information 1A Budpetary Comparison Schedules Schedule of Revenues and Other Financing Sources— Budget and Actual —General Fund 85-86 1 B Schedule of Expenditures and Other Financing Uses— Budget and Actual —General Fund 87-88 1C Notes to Required Supplementary Information — Budgets and Budgetary Accounting 89 Town Retirement Plan 2A Schedule of Changes in Net Pension Liability and Related Ratios and Schedule of Investment Returns 90 2B Schedule of Contributions 91 2C Notes to Required Supplementary Information 92 Connecticut State Teachers' Retirement Svstem 3A Schedule of Proportionate Share of the Net Pension Liability and Schedule of Contributions 93 3B Notes to Required Supplementary Information 94 Town Other Post-Emplovment Benefit (OPEB) Plan 4A Schedule of Changes in Net OPEB Liability and Related Ratios and Schedule of Investment Returns 95 4B Schedule of Contributions 96 4C Notes to Required Supplementary Information 97 Education Other Post-Emplovment Benefit (OPEB) Plan 5A Schedule of Changes in Total OPEB Liability and Related Ratios 98 Town of Thomaston, Connecticut Annual Comprehensive Financial Repori For the Year Ended June 30, 2022 Table of Contents Paqe RSI Required Supplementary Information Connecticut State Teachers' Retirement Board Retiree Health Insurance Plan 6A Schedule of Proportionate Share of the Net OPEB Liability and Schedule of Contributions 99 6B Notes to Required Supplementary Information 100 Schedules Supqlemental Schedules General Fund 1 Report of Tax Collector 101 2 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) 102 Other Governmental Funds 3 Combining Balance Sheet 103-105 4 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances 106-108 Sewer Commission Usaqe Fund 5 Schedule of Sewer Use Charges Receivable 109 Fiduciary Funds 6 Combining Schedule of Fiduciary Net Position - Private Purpose Trust Funds 110 7 Combining Schedule of Changes in Fiduciary Net Position - 111 Private Purpose Trust Funds Town of Thomaston, Connecticut Annual Comprehensive Financial Repori For the Year Ended June 30, 2022 Table of Contents Paqe Tables Statistical Section Financial Trend 1 Net Position by Component 112 2 Changes in Net Position 113 3 Fund Balances - Governmental Funds 114 4 Changes in Fund Balances - Governmental Funds 115 Revenue Capacitv 5 Assessed and Estimated Actual Value of Taxable Property 116 6 Principal Property Taxpayers 117 7 Tax Rates, Levies and Cash Collections 118 Debt Capacitv 8 Ratios of Outstanding Debt by Type 119 9 Ratios of General Bonded Debt Outstanding 120 10 Schedule of Debt Limitation 121 11 Legal Debt Margin Information 122 Demopraphic and Economic Information 12 Demographic and Economic Statistics 123 13 Principal Employers 124 14 Full-Time Equivalent Employees by Function/Program 125 Oqeratinq Information 15 Operating Indicators by Function/Program 126 16 Capital Asset Statistics by Function/Program 127 Introductory Section Town of Thomaston Finance Department �QF �H O�� 158 Main Street � �'� Thomaston,Connecticut 06787 � ;� z (860) 283-9678 � ; �v. � o ' ��" J N�EC��G January 23, 2023 Board of Finance Town of Thomaston Thomaston, Connecticut 06787 State law requires that all local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, I hereby submit the Annual Comprehensive Financial Report (ACFR) of the Town of Thomaston, Connecticut, for the fiscal year ended June 30, 2022. This report consists of management's representations concerning the finances of the Town of Thomaston. 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 Town of Thomaston 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 Town of Thomaston's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefit, the Town of Thomaston's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town of Thomaston's financial statements have been audited by PKF O'Conner Davies, LLP. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Thomaston 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 auditors concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town of Thomaston's financial statements for the fiscal year ended June 30, 2022, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Town of Thomaston was part of a broader, state mandated "Single Audit" designed to meet the special needs of state 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 Town's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal and state awards. These reports are available in the Town of Thomaston's separately issued Single Audit Reports. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The Town of Thomaston's MD&A can be found immediately following the independent auditors' report. 1 Profile of the Town of Thomaston The Town of Thomaston, located in Litchfield County, is a suburb consisting of 12 square miles and located 10 miles south of Torrington, Connecticut, 23 miles west of Hartford, Connecticut, with a population of 7,863. The Town is easily accessible by an excellent highway system. Route 8, a four-lane State highway, provides north-south interstate connections from Bridgeport to Winsted, where it meets Route 44 and continues north to the Massachusetts border. Interstate 84, the major east-west highway through Connecticut, is located just 11 miles south of the Town. Intra-town traffic is served by U.S. Route 6 and State routes 254, 109, and 262, which pass through the Town. Air transport is available at the Oxford Regional, New Haven-Tweed and Bradley International Airports. Thomaston originated in 1674 as part of the Mattatuck Plantation, now the City of Waterbury. The Town operates under a Town Meeting form of government, with a Board of Selectmen consisting of three elected members and a Board of Finance made up of six elected members. The Town Meeting is the legislative body of the Town and must approve the annual budget and all bond and note authorizations, except for refunding bonds which only need to be approved by the Board of Selectmen. The First Selectman is the Chief Executive of the Town, and is responsible for carrying out the policies and ordinances, overseeing the day-to-day operations of the Town, and for appointing the various department heads. The First Selectman presides over the Board of Selectmen, has full voting privileges, and is elected to a two-year term of office every odd-numbered year. The Town of Thomaston provides a full range of services, including police and fire protection, the construction and maintenance of streets and other infrastructure, a water pollution control facility, household waste collection and disposal, health and welfare, education and recreational activities. The annual budget serves as the foundation for the Town of Thomaston's financial planning and control. All agencies of the Town of Thomaston are required to submit requests for appropriations to the Board of Finance. The Board of Finance uses these requests as the starting point for developing a proposed budget for presentation to the public. The Board of Finance holds one or more public hearings on the budget not later than sixty days before the end of the fiscal year. The general fund is the only fund for which a legal budget is adopted. Local Economv and Major Initiatives The information presented in the financial statements is best understood when it is considered from the broader perspective of the specific environment within which the Town of Thomaston operates. Local Economy The current worldwide financial downturn that began in March 2020 due to the COVID-19 pandemic is having impacts across the state and local economy. Fortunately, Thomaston's unemployment rate which had risen to a high of 8.0% in June of 2020 has dropped to 3.4% which is lower than the national average of 3.6% and below regional and state levels. Thomaston is a residential community with a diversified manufacturing economic base. The Town's proximity to the Naugatuck River continues to be a major factor in its natural appeal to the development of certain types of industries. Best known for its namesake and founder, Seth Thomas, who established the Seth Thomas Clock Company in Thomaston in the late 1800s, the Town continues to be home to many small and medium-sized manufacturers. The original clock factory has now become a vibrant industrial park and is home to more than 20 tenants, employing nearly 500 people, many of whom work in skilled manufacturing trades. The current owners have expanded the site from 275,000 square feet to nearly 312,000 over the past decade to accommodate growth and demand for industrial and manufacturing space. There are plans in the approval process to add a brewery in the building. 2 Local Economy The Town of Thomaston has made changes in its Plan of Development that permits the creation of an industrial park located on Reynolds Bridge Road adjacent to an area already zoned and in use by many small to medium size manufacturers. The area is contiguous to Route 8, a divided highway which permits easy access to freight transport. The developer of this industrial park has already constructed a 51 unit senior housing complex near the industrial park. There is currently a 47 unit active adult community under construction at 500 South Main Street by a local developer. The former Star Manufacturing building located on Route 254 and the former CPI building on Watertown Road have been transformed into mixed use professional services and office space buildings. The developers took advantage of a tax assessment abatement ordinance that the Town of Thomaston has in place to assist with development. Recently, a portion of the Town of Thomaston was deemed an enterprise zone allowing businesses in the Town to apply for both property and income tax incentives. The Planning & Zoning Commission is in the process of updating the zoning maps based upon a digitized parcel map created by the Central Naugatuck Valley Council of Governments and working in conjunctions with the WPCA to create a master sewer plan for the Town of Thomaston that is in conformance with the State of Connecticut Plan of Conservation and Development. Changes to the Zoning District Map have been made to slow the pace of residential development, which in the past decade has been more than double the State average, by increasing lot sizes, particularly in those areas not served by municipal water and sewer service. Also economically significant is the ongoing renovations of the town-owned Thomaston Opera House, which is considered to be one of the finest examples of Victorian/Gothic architecture in the state. In the past decade, the theater has undergone many improvements and restorations perpetuating its original function as a multipurpose cultural and recreational center for Litchfield County and Greater Waterbury. The Thomaston Opera House Commission leases the facility to a management company. A portion of each ticket sold is contributed to a fund for future restoration projects and the Town's Opera House Commission was recently awarded a $3,500,000 grant from the Department of Economic Development and is working with an architect to finalize restoration plans. The Economic Development Commission's mission is to organize and promote sound economic growth in Thomaston by stimulating the expansion of existing business, attracting new enterprises and assuring a favorable community climate for new ideas and economic growth while respecting the character and history of the community. This nine member commission has been proactive in seeking business growth opportunities in Thomaston since its reestablishment.The Town has established a tax incentive program in order to attract, retain, and expand qualified businesses, to create employment opportunities, and to promote responsible economic growth to ensure Thomaston's future as a desirable community in which to live and work. Although developers have taken advantage of this ordinance in the past, all incentive agreements have since expired. The Board of Selectmen appointed the previously established Thomaston Historical Commission to manage and oversee the Seth Thomas-Bradstreet House, grounds and furnishings at 237 Main Street, and such other historic properties or assets as the Town of Thomaston may acquire in the future. The home, which the Town purchased in November 2005 has stood on Main Street at least since 1838. A very well preserved two-story building, it has a long association with one of the most important families in Connecticut. Seth Thomas was the famed clockmaker whose company would attain an international reputation. The Town has made this home into a museum, which will entice future economic development. The Department of Economic and Community Development approved the reallocation of certain Small Cities federal funds the Town holds, which will benefit low to moderate income families and Americans with Disabilities. $300,000 has been reallocated for housing rehabilitation for those who qualify. Many taxpayers have taken advantage of this program. 3 Local Economv The Department of Energy and Environmental Protection has awarded a $400,000 grant to the Town for the Beautification Committee's Seth Thomas Park Revitalization project which will include an amphitheater for the summer concerts and other town functions. A ten year Plan of Conservation and Development was recently completed. The plan is intended to address all aspects of governmental services including economic development. One aspect of this plan is to establish goals and develop a plan for the Downtown Development District in conjunction with local merchants. The Small Town Economic Assistance Program (STEAP)funds economic development, community conservation and quality of life projects for localities that are ineligible to receive Urban Action (CGS Section 4-66c) bonds. Public Act 05-194 allows an Urban Act Town that is not designated as a regional center under the State Plan of Conservation and Development to opt out of the Urban Action program and become a STEAP town for a period of four years. The Town elected this option in 2006 and has since been awarded $1,098,300 for sidewalk replacement, $300,000 for the repair of Altair Avenue Bridge and culvert, $100,000 for an emergency generator, $500,000 towards a town-wide communication system and $500,000 for the first phase of improvements to an athletic facility at Nystroms Park. The Town is currently seeking funding for additional projects including additional sidewalk replacement and a downtown parking area. Thomaston's residential sector consists predominantly of single-family homes affordable across a broad range of income levels. Affordability and accessibility have been prime factors in the consistent levels of residential development. The Planning & Zoning Commission is reviewing an Incentive Housing Zone in an effort to encourage redevelopment of the downtown for commercial and residential uses. Lonq-Term Financial Planninq Prepared as part of the annual budget process, a five year plan of capital improvement projects attempts to identify and provide a responsible funding/execution plan for public betterments to ensure a stable community infrastructure. The plan is designed to budget adequate reserves for replacement of obsolete equipment and vehicles and provide for the betterment of town-wide roads. The Town recently had an architectural/engineering firm perform an assessment of all town facilities. The results of this assessment will assist the capital improvement committee in prioritizing future capital needs. The Town recently had a road assessment study performed in order to prioritize road reconstruction. Several roads in town were reconstructed and long-term borrowing for additional roads is being evaluated. Relevant Financial Policies The Town's financial policies have been applied consistently with the prior year and had no notable current year effect on the financial statements. There were no developments at the State level that impacted the current year financial statements. Awards and Acknowledqements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Thomaston for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. This was the eighteenth consecutive year that the Town has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. 4 Awards and Acknowledqements A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report 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 Finance Department continuously strives to enhance the quality and ensure the integrity of the financial information provided to elected officials and staff, as well as to the citizens of the Town of Thomaston. The Finance Department will continue pursuit of its goals: to provide the highest degree of public credibility and confidence in its operations; working to foster and maintain a local government environment which demonstrates fiscal accountability, efficiency, integrity, and stability, and of course, the overall strive towards excellence. The preparation of this report would not have been possible without the dedicated service of the finance staff and the cooperation of Town departments. My sincerest appreciation is extended to all of the contributing staff members. We also appreciate the professional service and assistance rendered by PKF O'Connor Davies, LLP. Respectfully submitted, �au�.y D�- Tracy A. Decker Finance Director 5 Town of Thomaston, Connecticut Organizational Chart Electors Treasurer Town Registrar First Selectman Tax Fire Library Clerk of Voters Board of Selectmen Collector Commission Commission Deputy Board of Board Board Registrar Assessment of of of Voters A eals Education Finance rn Town Hall Assessor Building Public Works Municipal Agent Police Building Finance Ins ector De artment on A in De artment Committee Director Economic Inland Youth Ambulance Conservation Development Housing Wetland Advisory Opera House Commission Commission Commission Authorit Commission Committee Commission Planning & School Senior Zoning Zoning Recreation Building Advisory WPCA Board of Commission Commission Committee Board Commission A eals Town of Thomaston, Connecticut Principal Officials June 30, 2022 Board of Selectmen Edmond V. Mone, First Selectman Jeffrey P. Dunn, Selectman Roger Perreault, Selectman Board of Finance George Seabourne, Chairman Luke Freimuth Michael S. Madow Richard Sileo Adam Silverman Stephen R. Turner Town Departments Lawrence Duffany, Jr., Treasurer Tracy A. Decker, Finance Director Todd Bendtsen, School Business Manager Robert Dudek, Tax Assessor Cassie Gorman, Tax Collector Francine Coss, Superintendent of Schools Glenn C. Clark, Superintendent of Highway Robert Galpin, Jr., Superintendent of W.P.C.A. Catherine P. Dupont, Town Clerk Jeffrey Madden, Chief of Police James O'Neil, Fire Chief Robert V. Norton, Sr., Fire Marshal Joseph Aniki, Park and Recreation Director Auditors PKF O'Connor Davies, LLP 7 � Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Thomaston Connecticut For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 ��i�u�,e�w,. P• ���er�%��-C Executive Director/CEO 8 Financial Section J PKF O`CONNOR DAVIES ACCOUNTANTS AND ADVISORS Independent Auditors' Report Board of Finance Town of Thomaston, Connecticut Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Town of Thomaston, Connecticut ("Town"), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise Town's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Town, 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 GovernmentAuditing 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 Town, 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. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the 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 Town'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. 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. 9 Board of Finance Town of Thomaston, Connecticut Page 2 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 judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and GovernmentAuditing Standards, we: • Exercise professional judgment 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 Town'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 Town'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 Supplemenfary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis, budgetary comparisons, and the pension and other post-employment benefit schedules as listed in the table of contents, 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 10 Board of Finance Town of Thomaston, Connecticut Page 3 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules 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 comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors' report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an 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 23, 2023 on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is 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 Town's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the Town's internal control overfinancial reporting and compliance. Pl��d�'C'�� ,��, <<P Wethersfield, Connecticut January 23, 2023 11 Town of Thomaston �oF ��o� Finance Department q 158 Main Street o � �p Thomaston, Connecticut 06787 � %��°' z (860) 283-9678 � ,` R� � ,..-�oe,: '��G p �--,. NN�cT� Management's Discussion and Analysis For the Year Ended June 30, 2022 As management of the Town of Thomaston, Connecticut("Town"), we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2022. Financial hiqhliqhts • The assets and deferred outflows of resources of the Town exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $37,370,545 (net position). Unrestricted net position, the amount that may be used to meet the Town's ongoing obligations to citizens and creditors, was a deficit balance of($8,746,580). • The Town's total net position increased by $6,606,798. This increase is due to: Governmental funds activity: ➢ positive operations of the general fund of $ 416,206 ➢ positive operations of the debt service fund of 447,623 The positive operations were offset by: ➢ negative operations of the capital or nonrecurring fund of (891,455) Conversion to accrual basis on Exhibit E: ➢ capital outlay net of depreciation/amortization expense of 3,915,394 ➢ net principal debt activity of 1,273,643 ➢ change in net pension liability (asset) of (4,438,327) ➢ change in OPEB liability of 1,342,761 ➢ amortization of premium of 949,482 ➢ amortization of deferred outflows of resources related to pension and OPEB of 660,363 ➢ amortization of deferred inflows of resources related to pension and OPEB of 2,278,686 • As of the close of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $8,308,754 an increase of $427,185 in comparison with the prior year. This increase is the result of the items discussed above under governmental funds and the following: ➢ positive operations of the school lunch fund of $ 215,406 ➢ positive operations of the education funds of 151,350 12 Management's Discussion and Analysis (continued) • At the end of the current fiscal year, unassigned fund balance for the general fund was $5,906,570, an increase of$402,767 in comparison with the prior year. This fund balance represents 21.21°/o of total budgetary actual general fund expenditures and transfers out. Overview of the basic financial statements This discussion and analysis is intended to serve as an introduction to the Town of Thomaston's basic financial statements. The Town's basic financial statements comprise three components: 1) government- wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. One of the most important questions asked about the Town's finances is, "Is the Town as a whole better off or worse off as a result of the year's activities?" The statement of net position and statement of activities report information about the Town as a whole and about its activities in a way that helps answer this question. These statements include all assets, liabilities and deferred outflows and inflows of resources using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are taken into account regardless of when the cash is received or paid. The statement of net position presents information on all of the Town's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between these accounts being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial health or position of the Town is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the Town's property tax base and the condition of the Town's infrastructure, to assess the overall health of the Town. The statement of activities presents information showing how the Town's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements present the functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the Town include general government, public safety, public works, health and welfare, culture and recreation, housing and development and education. Fund financial statements. The fund financial statements provide detailed information about the most significant funds, not the Town as a whole. Some funds are required to be established by State law and by bond covenants. However, the Town establishes many other funds to help it maintain control and manage money that has been segregated for specific activities or objectives. Funds are also established to ensure and demonstrate compliance with finance related legal requirements for using certain grants. All of the funds of the Town can be divided into two categories: governmental funds and fiduciary funds. 13 Management's Discussion and Analysis (continued) Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the Town's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Town's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. For governmental funds, information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the general, capital or nonrecurring, and debt service funds, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these other governmental funds is provided in the combining schedules in Schedules 3 and 4 of this report. Fiduciary funds. The Town is the trustee, or fiduciary, for its employees' pension and OPEB plans. It is also responsible for other assets that, because of a trust agreement, can be used only for the trust beneficiaries and other funds for which the Town has custody of the assets. All of the Town's fiduciary activities are reported in separate statements of fiduciary net position and changes in fiduciary net position (Exhibits F and G). We exclude these activities from the Town's other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Notes to financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required supplementary information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information as follows: • A budgetary comparison schedule for the General Fund to demonstrate compliance with this budget. • Schedules to demonstrate the Town's progress in funding its obligation to provide pension benefits. • Schedules to demonstrate the Town's progress in funding its obligation to provide other post- employment benefits. Other information. Other required schedules and the combining schedules referred to earlier in connection with other governmental funds are presented immediately following the required supplementary information section. 14 Management's Discussion and Analysis (continued) Government-wide financial analysis As noted earlier, net position may serve over time as a useful indicator of the Town's financial position. The Town's total net position increased by 21.48% from a year ago— increasing from $30,763,747 to $37,370,545. Summary Statement of Net Position June 30 2022 2021 (as restated) Current and other assets $ 21,285,729 $ 21,229,022 Capital assets (net) 74,596,123 70,680,729 Total assets 95,881,852 91,909,751 Total deferred outflows of resources 3,864,612 3,204,249 Long-term liabilities outstanding 43,519,706 43,298,889 Other liabilities 14,251,622 15,064,965 Total l iabi l ities 57,771,328 58,363,854 Total deferred inflows of resources 4,604,591 5,986,399 Net position: Net investment in capital assets 44,894,704 43,029,812 Restricted 1,222,421 5,765,123 Unrestricted (8,746,580) (18,031,188) Total net position $ 37,370,545 $ 30,763,747 By far the largest portion of the Town's net position reflects its investment in capital assets (e.g., land, buildings, machinery and equipment and infrastructure), less any related debt used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. A portion of the Town's net position (3.27%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position is the amount available to meet the Town's ongoing obligations to citizens and creditors. 15 Management's Discussion and Analysis (continued) The Town's net position increased by $6,606,798. Key elements of this increase are as follows: Statement of Changes in Net Position For the Years Ended June 30 2022 2021 Revenues: Program revenues: Charges for services $ 2,434,972 $ 2,153,496 Operating grants and contributions 9,950,822 9,560,177 Capital grants and contributions 5,037,216 3,460,998 General revenues: Property taxes 21,374,951 21,095,405 Grants and contributions not restricted to specific programs 458,426 473,207 Income from investments 6,666 141,581 Other 66,443 24,558 Total revenues 39,329,496 36,909,422 Expenses: General government 2,018,673 1,231,754 Public safety 3,404,236 3,082,932 Public works 5,102,672 4,597,714 Health and welfare 217,936 213,994 Culture and recreation 911,789 981,339 Housing and development 313,049 297,236 Education 20,289,887 19,599,685 Interest 464,456 732,829 Total expenses 32,722,698 30,737,483 Change in net position 6,606,798 6,171,939 Net position - July 1 30,763,747 24,591,808 Net position - June 30 $ 37,370,545 $ 30,763,747 16 Management's Discussion and Analysis (continued) Revenues: • Capital grants and contributions increased by $1,576,218 mostly due to an increase of $2,745,531 in the local transportation capital improvement program grant for the Hickory Hill project offset by a decrease in the American Rescue Plan Act grant of$1,114,994. Expenses: • General government expenses increased by$786,919 due to an increase in employee benefit costs. • Public works expenses increased by$504,958 due to an increase in employee benefit costs of$312,920 and an increase in pension and OPEB expense of$263,889. • Public safety expenses increased by $321,304 due to an increase in employee benefits costs. • Education expenses increased by$690,202 due to an increase in pension and OPEB expense of$254,702, an increase in the budget of$255,117 and an increase in school lunch expenditures of$190,498. Expenses and Program Revenues (Net) - Governmental Activities Interestexpense General government $(464,456) $(1,653,834) _ Publicsafety , $(2,939,056) Education Publicworks $(10,257,473) $1,228,762 —Health andwelfare $(179,854) Culture and recreation $(821,649) Housingand development $(212.128) The above represents the percentage of net cost by function as presented in the statement of activities (Exhibit B). In most cases, the above chart represents the true cost of the departments because we have offset the costs by the revenues derived by those departments. For example, the net cost of Education of$10,257,473 includes expenses of $20,289,887 offset by charges for services of $120,517, operating grants and contributions (including the Education Cost Sharing grant) of$9,889,958 and capital grants and contributions of$21,939. The statement of activities requires that we report capital grants, which often offset capital outlay and not operating expenses. Therefore, in this particular case, capital grants tend to distort the net costs in the statement of activities. 17 Management's Discussion and Analysis (continued) Revenues bv Source Unrestricted Income from Other, $66,443 Charges for Grants, $458,426 investments,� Services, $6,666 $2,434,972 Operating Grants &Contributions, �$9,950,822 Property Taxes, $21,374,951 Capital Grants& Contributions, $5,037,216 The chart above reflects the sources of revenue for the fiscal year, which provide the services the taxpayers of Thomaston receive. Property taxes of $21,374,951 (54.35%) is the major source of revenue, followed by operating grants and contributions of $9,950,822 (25.30%), capital grants and contributions of $5,037,216 (12.81%), charges for services of $2,434,972 (6.19%), unrestricted grants of $458,426 (1.17%), and the remaining $73,109 (0.19%) is made up of income from investments and other revenue. Expenditures by Classification $�,000,000 " $6,000,000 $5,000,000 - " $4,000,000 $3,000,000 $Z,000,000 - Zo2o $Z,000,000 - � ,,�...� Zo21 $_ , � � , � � ; a�e�, e,�h �ea:• \\\�� \e� \a� ��� �et 2022 � ��� ta ��. �,�� 0��, �� �r a�a e� C.°�� J �� '�'a\ y'`�+ a\a�\��, �\oJ a�a �a�Q \���te 5 �� ra5ea �G Q� 18 Management's Discussion and Analysis (continued) The previous chart was derived directly from the classification of expenditures in the Town's chart of accounts on a government-wide basis excluding the Board of Education operating budget, for fiscal years 2022, 2021 and 2020. Salaries and wages increased due to new hires under COVID related grants. Capital outlay also increased due to primarily to the Hickory Hill road reconstruction project. The overall trend for the other categories was level spending. Capital outlay includes construction, building improvements, improvements to roads and other infrastructure assets, vehicles and machinery and equipment purchases. Purchased and contracted services include professional and technical services such as data processing, legal fees, repairs and maintenance, water, telephone, advertising, dues and rental of equipment. Supplies include general supplies, postage, gas, diesel and oil, sand and salt and other infrastructure materials. Financial analvsis of the Town's funds As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the Town's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Town's financing requirements. In particular, unassigned fund balance may serve as a useful measure of the Town's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $8,308,754. GASB No. 54 requires that fund balance be reported in one of five categories: nonspendable, restricted, committed, assigned or unassigned. At the end of the current fiscal year the fund balance for each category was as follows: Nonspendable $ 170,200 Restricted 1,052,221 Comm itted 2,981,333 Ass igned 1,273,402 Unassigned 2,831,598 Total $ 8,308,754 The Town has a nonspendable balance that has been reserved to generate income to pay for the perpetual care of Kenea Park and the municipal cemetery, and to generate income for various projects at the Fire Department. The total fund balances increased by $427,185. This was substantially due to positive operations of the debt service fund of$447,623 and positive operations of the general fund of$416,206, offset by negative operations of the capital or nonrecurring fund of$891,455. Genera/ Fund. The general fund is the operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the general fund was $5,906,570. As a measure of the general fund's liquidity, it is useful to compare unassigned fund balance to total expenditures and transfers out. Unassigned fund balance represents 21.21% of total budgetary actual general fund expenditures and transfers out. The fund balance of the Town's general fund increased $416,206 during the current fiscal year. This was due to the Town revenues exceeding the amount budgeted by $706,259, offset by $608,725 appropriated to balance the budget combined with under expenditure of various departments totaling $318,672. The details of these variances are discussed under budgetary highlights. 19 Management's Discussion and Analysis (continued) A comparative analysis of the general fund (GAAP basis) is shown below. General Fund For the Years Ended June 30 Increase 2022 2021 (Decrease) Revenues: Property taxes $ 21,401,555 $ 21,145,103 $ 256,452 Charges for services 566,738 498,041 68,697 Intergovernmental 8,218,077 8,145,014 73,063 Income from investments 34,551 18,850 15,701 Other 31,443 24,558 6,885 Total revenues 30,252,364 29,831,566 420,798 Expenditures: General government 3,745,421 3,658,061 87,360 Public safety 1,972,049 1,940,570 31,479 Public works 2,013,358 1,928,297 85,061 Health and welfare 100,619 101,282 (663) Culture and recreation 473,874 468,623 5,251 Housing and development 207,292 186,019 21,273 Education 17,143,190 16,823,518 319,672 Total expenditures 25,655,803 25,106,370 549,433 Excess (deficiency) of revenues over expenditures 4,596,561 4,725,196 (128,635) Other financing sources (uses): Transfers in 15,000 15,000 - Transfers out (4,195,355) (4,088,197) (107,158) Net other financing sources (uses) (4,180,355) (4,073,197) (107,158) Net change in fund balances $ 416,206 $ 651,999 $ (235,793) Revenues: • Property taxes increased by $256,452 due to an increase in the adopted budget and, therefore, the related tax levy. Expenditures • Education expenditures increased by$319,672 due to an increase in Education budget and an increase in on behalf payments for State Teachers' pension and OPEB. 20 Management's Discussion and Analysis (continued) General Fund Budqetary Hiqhliqhts Significant budget transfers and additional appropriations made during the year were as follows: • There were additional appropriations of fund balance totaling $422,164 for the transfer to capital or nonrecurring fund for police department dash and body cameras, town hall roof engineering, school zone signs and a fire truck. Additional details on budget transfers can be found in RSI 1 B. Capital or Nonrecurring Fund. This fund accounts for the financial revenues including resources from borrowing to be used for major capital asset construction and/or purchases and items, which are reserved for special purposes. A summary of the projects can be found in Note II.C. of the notes to financial statements. The capital or nonrecurring fund's expenditures and other financing uses exceeded its revenues and other financing sources by $891,455, primarily due to project expenditures being funded with short-term financing (BANS) that will be permanently financed in a subsequent fiscal year. Debt Service Fund. This fund accounts for financial resources to be used for current and future principal and interest payments for long-term debt. As part of the Town's capital improvement policy, the Town committed to funding a minimum annual appropriation of $2,800,000 into the Debt Service Fund to minimize a mill rate impact of an expected significant increase in debt service in future budget years. The assigned fund balance totals $1,073,402. The debt service fund had positive operations of $447,623 due to transfers in excess of fiscal year 2022 debt service expenditures. Capital assets and debt administration Capital assets. The Town's investment in capital assets amounts to $74,596,123 (net of accumulated depreciation/amortization). This investment in capital assets includes land, construction in progress, buildings, land improvements, machinery and equipment, vehicles, sewer lines, roads, bridges, sidewalks, storm drains and right-to-use leased assets. The total increase in the Town's investment in capital assets for the current fiscal year was $3,915,394 (5.54%). Capital Assets (Net of Accumulated Depreciation/Amortization) June 30 2022 2021 (as restated) Land $ 1,341,961 $ 1,341,961 Construction in progress 10,847,386 6,308,289 Buildings 29,086,885 30,055,339 Land improvements 3,494,253 3,447,320 Right-to-use leased land improvements 937,728 992,889 Machinery and equipment 5,774,704 5,802,669 Right-to-use leased machinery and equipment 19,610 36,903 Vehicles 2,473,244 2,592,359 Infrastructure 20,620,352 20,103,000 Total $ 74,596,123 $70,680,729 21 Management's Discussion and Analysis (continued) Major capital asset events during the current fiscal year included the following: ➢ Construction in progress: o Hickory Hill Road $ 4,503,569 o Road construction and Woodbridge pump station 291,045 o WPCA pumps 219,563 ➢ Infrastructure: o Walnut Hill Bridge 840,799 o Old Smith Road 194,495 ➢ Machinery and equipment: o Opera House air handlers 136,573 o Fire department exhaust system 79,260 ➢ Vehicles: o Police cars 152,133 Additional information on the Town's capital assets can be found in Note III. D. Long-term liabilities. At the end of the current fiscal year, the Town had total bonded debt outstanding of $17,435,000. All debt is backed by the full faith and credit of the Town. In addition to bonds, the Town's other long-term liabilities include notes totaling $1,598,502 funded by the State of Connecticut Clean Water Fund, equipment financing notes, and leases of$981,763. Outstanding Long-Term Liabilities June 30 2022 2021 (as restated) General obligation bonds $ 17,435,000 $ 19,735,000 Notes 1,598,502 1,746,943 Leases 981,763 1,029,792 Total $ 20,015,265 $ 22,511,735 The Town's total debt decreased by $2,496,470 due to scheduled principal payments of $2,064,867 and the refunding bonds of $4,780,000 offset by the issuance of refunding bonds in the amount of $4,300,000 and notes in the amount of$48,397. The Town maintains a "AA" rating from Standard and Poor's for general obligation debt. State statutes limit the amount of general obligation debt a governmental entity may issue to seven times total prior year tax collections including interest and lien fees and the tax relief for elderly freeze grant. The current debt limitation for the Town is $146,767,481, which is significantly in excess of the Town's outstanding general obligation debt. Additional information on the Town's long-term debt can be found in Note III. G. 22 Management's Discussion and Analysis (continued) Economic factors and next vear's budqet and rates • The unemployment rate for the Town is currently 3.4°/o, which is down from 5.7°/o one year ago. The Town's rate is favorable compared to the State rate of 4.1% and the Hartford labor market rate of 4.1%. The Town is slightly below the national average of 3.8%. • The Town is under even greater fiscal pressure from voter opposition in the tax levy. Voter opposition remains regardless of the fact that the Town has no control over its significant revenue sources other than property taxes. The Town faces cost increases from contractual obligations and fixed costs as well as significant decreases in revenue from the State of Connecticut and failed budgets will only result in loss of services, personnel and infrastructure improvements. These factors were considered in preparing the Town's budget for the 2022-2023 fiscal year. Requests for Information This financial report is designed to provide a general overview of the Town's finances for all those with an interest in the Town's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, Tracy Decker, Town of Thomaston, CT 158 Main Street, Thomaston, CT 06787. 23 Basic Financial Statements Exhibit A (1 of 2) Town of Thomaston, Connecticut Governmental Activities Statement of Net Position June 30, 2022 Assets Current assets: Cash $ 1,573,140 Investments 17,156,390 Receivables (net): Property taxes 236,340 Assessments/use charges 104,007 Loans 41,318 Intergovernmental 175,888 Other 59,856 Leases 130,489 Other 16,993 Total current assets 19,494,421 Noncurrent assets: Restricted assets: Temporarily restricted: Investments 112,442 Permanently restricted: Investments 170,200 Total restricted assets 282,642 Receivables (net): Property taxes 255,695 Assessments/use charges 117,284 Loans 793,523 Leases 342,164 Total receivables (net) 1,508,666 Capital assets(net of accumulated depreciation/amortization): Land 1,341,961 Construction in progress 10,847,386 Buildings 29,086,885 Land improvements 3,494,253 Right-to-use leased land improvements 937,728 Machinery and equipmenl 5,774,704 Right-to-use leased machinery and equipmeni 19,610 Vehicles 2,473,244 Infrastructure 20,620,352 Total capital assets(net of accumulated depreciation/amortization; 74,596,123 Total noncurrent assets 76,387,431 Total assets 95,881,852 Deferred Outflows of Resources Pension related 2,222,115 OPEB related 1,642,497 Total deferred outflows of resources 3,864,612 (Continued) The notes to financial statements are an integral part of this statement. 24 Exhibit A (2 of 2) Town of Thomaston, Connecticut Governmental Activities Statement of Net Position June 30, 2022 Liabilities Current liabilities: Accounts payable $ 876,956 Retainage payable 360,470 Accrued payroll 991,195 Unearned revenue 1,419,310 Accrued interest payable 284,954 Bond anticipation notes 8,155,000 Bonds and notes payable 1,957,350 Leases payable 49,346 Compensated absences 91,519 Termination benefits 65,522 Total current liabilities 14,251,622 Noncurrent liabilities: Bonds and notes payable and related liabilities 17,424,247 Leases payable 932,417 Net pension liability 4,397,371 Net OPEB liability 20,209,938 Compensated absences 518,605 Termination benefits 37,128 Total noncurrent liabilities 43,519,706 Total liabilities 57,771,328 Deferred Inflows of Resources Deferred charge on refunding 822,589 Lease related 460,718 OPEB related 3,321,284 Total deferred inflows of resources 4,604,591 Net Position Net investment in capital assets 44,894,704 Restricted for: Endowments: Nonexpendable 65,700 Expendable 40,872 Perpetual care: Nonexpendable 104,500 Expendable 71,570 Construction contracts 198,525 Housing rehabilitation 921,716 Public safety 24,482 Sewer operations 317,319 Education 369,731 Library 19,238 Other 10,484 Unrestricted (9,668,296) Total net position $ 37,370,545 (Concluded) The notes to financial statements are an integral part of this statement. 25 Exhibit B Town of Thomaston, Connecticut Governmental Activities Statement of Activities For the Year Ended June 30, 2022 Program Revenues Net Revenues Operating Capital (Expenses) Charges for Grants and Grants and and Changes Functions/Programs Expenses Services Contributions Contributions in Net Position General government $ 2,018,673 $ 239,950 $ 5,500 $ 119,389 $ (1,653,834) Public safety 3,404,236 360,696 - 104,484 (2,939,056) Public works 5,102,672 1,581,158 24,635 4,725,641 1,228,762 Health and welfare 217,936 - 11,333 26,749 (179,854) Culture and recreation 911,789 31,730 19,396 39,014 (821,649) Housing and development 313,049 100,921 - - (212,128) Education 20,289,887 120,517 9,889,958 21,939 (10,257,473) � Interest 464,456 - - - (464,456) Total $ 32,722,698 $ 2,434,972 $ 9,950,822 $ 5,037,216 (15,299,688) General revenues: Property taxes 21,374,951 Grants and contributions not restricted to specific programs 458,426 Income from investments 6,666 Other 66,443 Total general revenues 21,906,486 Change in net position 6,606,798 Net position - July 1, 2021 30,763,747 Net position - June 30, 2022 $ 37,370,545 The notes to financial statements are an integral part of this statement. Exhibit C (1 of 2) Town of Thomaston,Connecticut Governmental Funds Balance Sheet June 30,2022 Other Capital or Debt Governmental General Nonrecurring Service Funds Total Assets Cash $ 420,749 $ - $ - $ 1,152,391 $ 1,573,140 Investments 12,996,294 3,868 2,842,657 1,596,213 17,439,032 Receivables(net): Property taxes 430,038 - - - 430,038 Assessments/use charges - - - 192,246 192,246 Loans - - - 834,841 834,841 Intergovernmental 23,578 - - 152,310 175,888 Leases 472,653 - - - 472,653 Other 36,834 - - 23,022 59,856 Due from other funds 2,510,263 9,454,379 6,385,745 660,971 19,011,358 Other 7,751 - - 9,242 16,993 Total assets $ 16,898,160 $ 9,458,247 $ 9,228,402 $ 4,621,236 $ 40,206,045 Liabilities N Accounts payable $ 723,168 $ 67,968 $ - $ 85,820 $ 876,956 v Retainage payable - 360,470 - - 360,470 Accrued payroll 869,482 - - 121,713 991,195 Due to other funds 8,308,184 2,436,710 8,155,000 111,464 19,011,358 Unearned revenue - 1,297,775 - 121,535 1,419,310 Bond anticipation notes - 8,155,000 - - 8,155,000 Total liabilities 9,900,834 12,317,923 8,155,000 440,532 30,814,289 Deferred Inflows of Resources Unavailable revenue: Property taxes 430,038 - - - 430,038 Assessments/use charges - - - 192,246 192,246 Lease related 460,718 - - - 460,718 Total deferred inflows of resources 890,756 - - 192,246 1,083,002 Fund Balances Nonspendable - - - 170,200 170,200 Restricted - 198,525 - 1,775,412 1,973,937 Committed - - - 2,059,617 2,059,617 Assigned 200,000 - 1,073,402 - 1,273,402 Unassigned 5,906,570 (3,058,201) - (16,771) 2,831,598 Total fund balances 6,106,570 (2,859,676) 1,073,402 3,988,458 8,308,754 Total liabilities,deferred inflows of resources and fund balances $ 16,898,160 $ 9,458,247 $ 9,228,402 $ 4,621,236 $ 40,206,045 (Continued) The notes to financial statements are an integral part of this statement. Exhibit C (2 of 2) Town of Thomaston, Connecticut Reconciliation of Fund Balance to Net Position June 30, 2022 Amounts reported in the statement of net position (Exhibit A) are different from the governmental funds balance sheet due to: Total fund balance (Exhibit C, page 1) $ 8,308,754 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds: Beginning capital assets (net) 70,680,729 Current year additions (net of construction in progress) 6,178,486 Depreciation/amortization expense (2,263,092) Total 74,596,123 Other long-term assets and deferred outflows of resources are not available resources and, therefore, are not reported in the funds: Property tax, sewer use and sewer assessment interest and lien accrual 248,042 Allowance for doubtful accounts (157,000) Deferred outflows related to pensions 2,222,115 Deferred outflows related to OPEB 1,642,497 Total 3,955,654 Other long-term assets are not available to pay for current period expenditures and, therefore, are unavailable in the funds: Property tax, sewer use and sewer assessment receivable - accrual basis change 622,284 Some liabilities and deferred inflows of resources, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds: Bonds and notes payable (19,033,502) Premium (348,095) Leases payable (981,763) Compensated absences (610,124) Termination benefits (102,650) Net pension liability (4,397,371) Net OPEB liability (20,209,938) Accrued interest payable (284,954) Deferred charge on refunding (822,589) Deferred inflows related to OPEB (3,321,284) Total (50,112,270) Net position (Exhibit A) $ 37,370,545 (Concluded) The notes to financial statements are an integral part of this statement. 28 Exhibit D Town of Thomaston,Connecticut Governmental Funds Statement of Revenues,Expenditures and Changes in Fund Balances For the Year Ended June 30,2022 Other Capital or Debt Governmental General Nonrecurring Service Funds Total Revenues: Property taxes $21,401,555 $ - $ - $ - $21,401,555 Chargesforservices 566,738 134,569 - 1,664,503 2,365,810 Intergovernmental 8,218,077 4,649,039 - 2,434,116 15,301,232 Contributions - 8,310 - 136,922 145,232 Income from investments 34,551 4 21 30,253 64,829 Net change in fair value of investments - - - (58,163) (58,163) Other 31,443 - - - 31,443 Total revenues 30,252,364 4,791,922 21 4,207,631 39,251,938 Expenditures: Current: General government 3,745,421 149,142 - 11,558 3,906,121 Public safety 1,972,049 101,608 - 28,965 2,102,622 Public works 2,013,358 209,499 - 1,405,578 3,628,435 Health and welfare 100,619 - - 79,737 180,356 Culture and recreation 473,874 24,053 - 37,636 535,563 Housing and development 207,292 21,644 - - 228,936 N Education 17,143,190 10,000 - 2,348,737 19,501,927 � Debt service - 158,553 2,674,307 - 2,832,860 Capital outlay - 6,106,499 48,397 23,591 6,178,487 Total expenditures 25,655,803 6,780,998 2,722,704 3,935,802 39,095,307 Excess(deficiency)of revenues over expenditures 4,596,561 (1,989,076) (2,722,683) 271,829 156,631 Other financing sources(uses): Issuance of notes - - 48,397 - 48,397 Issuance of refunding bonds - - 4,300,000 - 4,300,000 Payment to refunded bonds escrow agent - - (4,854,501) - (4,854,501) Premium - - 741,658 - 741,658 Sale of capital assets - 35,000 - - 35,000 Transfers in 15,000 1,062,621 2,934,752 246,289 4,258,662 Transfers out (4,195,355) - - (63,307) (4,258,662) Net other financing sources(uses) (4,180,355) 1,097,621 3,170,306 182,982 270,554 Net change in fund balances 416,206 (891,455) 447,623 454,811 427,185 Fund balances-July 1,2021 (as restated) 5,690,364 (1,968,221) 625,779 3,533,647 7,881,569 Fund balances-June 30,2022 $ 6,106,570 $(2,859,676) $ 1,073,402 $3,988,458 $ 8,308,754 The notes to financial statements are an integral part of this statement. Exhibit E (1 of 2) Town of Thomaston, Connecticut Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2022 Amounts reported for governmental activities in the statement of activities (Exhibit B) are different due to: Net change in fund balances -total governmental funds (Exhibit D) $ 427,185 Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation/ amortization expense: Capital outlay 6,178,486 Depreciation/amortization expense (2,263,092) Total 3,915,394 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds: Change in property tax, sewer use and sewer assessment receivable - accrual basis change 83,045 Change in property tax, sewer use and sewer assessment interest and lien revenue (40,487) Total 42,558 The issuance of long-term debt (e.g., bonds, notes) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect 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. The details of these differences in the treatment of long-term debt and related items are as follows: Debt issued or incurred: General obligation bonds and notes (4,348,397) Premium (741,658) Deferred charge on refunding (480,000) Principal repayments: General obligation bonds 1,820,000 Refunded bonds 4,780,000 Notes payable 196,838 Leases payable 48,029 Total 1,274,812 (Continued) The notes to financial statements are an integral part of this statement. 30 Exhibit E (2 of 2) Town of Thomaston, Connecticut Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2022 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds: Change in: Net pension liability (asset) $(4,438,327) Net OPEB liability 1,342,761 Compensated absences 74,326 Termination benefits 122,973 Accrued interest payable (86,086) Amortization of: Premium 948,313 Deferred charges on refunding 43,840 Deferred outflows of resources related to pension and OPEB 660,363 Deferred inflows of resources related to pension and OPEB 2,278,686 Total 946,849 Change in net position (Exhibit B) $ 6,606,798 (Concluded) The notes to financial statements are an integral part of this statement. 31 Exhibit F Town of Thomaston, Connecticut Fiduciary Funds Statement of Fiduciary Net Position June 30, 2022 Pension Private- and OPEB Purpose Custodial Trust Funds Trust Funds Fund Assets Cash $ - $ 461 $ - Investments: Certificates of deposit - 6,710 - Mutual funds/exchange traded funds: Money market 392,333 - 20,147 Equity 11,546,614 - 929,322 Bond 7,160,472 - 635,443 Real estate investment trust 48,377 - - Total investments 19,147,796 6,710 1,584,912 Total assets 19,147,796 7,171 1,584,912 Net Position Restricted for: Pension benefits 18,685,741 - - OPEB benefits 462,055 - - Individuals and organizations - 7,171 1,584,912 Total net position $ 19,147,796 $ 7,171 $ 1,584,912 The notes to financial statements are an integral part of this statement. 32 Exhibit G Town of Thomaston, Connecticut Fiduciary Funds Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2022 Pension Private- and OPEB Purpose Custodial Trust Funds Trust Funds Fund Additions: Contributions: Employer $ 1,206,309 $ - $ 20,000 Plan members 131,700 - - Total contributions 1,338,009 - 20,000 Investment income (loss): Net change in fair value of investments (3,547,172) - (303,250) Interest and dividends 439,390 19 53,547 Total investment income (loss) (3,107,782) 19 (249,703) Less investment expenses 47,513 - 2,734 Net investment income (loss) (3,155,295) 19 (252,437) Total additions (1,817,286) 19 (232,437) Deductions: Benefits 1,982,862 - 90,467 Administration 42,612 - 4,735 Awards - 400 - Total deductions 2,025,474 400 95,202 Changes in net position (3,842,760) (381) (327,639) Net position - July 1, 2021 22,990,556 7,552 1,912,551 Net position - June 30, 2022 $19,147,796 $ 7,171 $ 1,584,912 The notes to financial statements are an integral part of this statement. 33 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 History and organization The Town of Thomaston, Connecticut("Town")was incorporated July 6, 1875, and operates under the provisions of the General Statutes of the State of Connecticut. The legislative power of the Town is vested in a Board of Selectmen and the Town Meeting. The Town provides the following services: Public Safety (police, fire and ambulance), Public Works (streets and solid waste), Public Health and Welfare, Culture and Recreation (parks, programs and public library), Housing and Development (building and land use) and Education encompassing grades PreK-12. The accompanying financial statements present the Town and its component units, entities for which the Town is considered to be financially accountable. The Town is financially accountable for the pension and OPEB trust funds; therefore, the pension and OPEB trust funds are considered fiduciary component units. The financial statements of the fiduciary component units are reported as pension and OPEB trust funds in the fiduciary fund financial statements. The pension and OPEB trust funds do not issue separate financial statements. I. Summary of significant accounting policies A. Government-wide and fund financial statements The government-wide financial statements(i.e.,the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town. Governmental activities are normally supported by taxes and intergovernmental revenues. The statement of activities demonstrates the degree to which the direct expenses of a given 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 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. B. Measurement focus, basis of accounting and financial statement presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the Town considers tax revenues to be available if they are collected by the end of the current fiscal period. For reimbursement grants, intergovernmental grants, charges for services and interest the Town considers revenues to be available if they are collected within one year of the end of the current fiscal period. 34 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Measurement focus, basis of accounting and financial statement presentation (continued) Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, pension and OPEB benefits, certain other employee benefits, and certain other long-term liabilities, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Expenditure reimbursement type grants, charges, certain intergovernmental revenues, transfers and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items, including property taxes, are considered to be measurable and available only when cash is received by the Town. The Town reports the following major governmental funds: Town's primary operating fund. It accounts for all financial resources of General Fund the general government, except those required to be accounted for in anotherfund. Accounts for the financial resources to be used for major capital asset Capital or Nonrecurring Fund construction and/or purchases and items, which are reserved for special purposes. Debt Service Fund Accounts for the accumulation of resources for, and the payment of, long- term debt, principal, interest and related costs. Additionally, the Town reports the following fund types: Accounts for and reports the proceeds of specific revenue resources that Special Revenue Funds are restricted or committed to expenditures for specified purposes other than debt. Accounts for and reports resources and expenditures that are restricted, Capital Project Funds committed or assigned for the acquisition and construction of capital facilities, including those that are financed through special assessments. Permanent Funds Report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the Town's programs. Accounts for the activities of the Town's Employees' Retirement System, Pension Trust Funds which accumulates resources for pension benefit payments to qualified employees. OPEB Trust Funds Accounts for the activities of the Town OPEB Plan, which accumulates resources for OPEB benefits. Private-Purpose Trust Funds Accounts for resources legally held in trust for educational purposes. Custodial Funds Accounts for monies held for the volunteer firefighters' award program. 35 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Measurement focus, basis of accounting and financial statement presentation (continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are charges between the Town's sewer usage fund and the various other functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, including special assessments, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. For purposes of ineasuring the net pension and OPEB liabilities, deferred outflows of resources and deferred inflows of resources related to pensions and OPEB and pension and OPEB expense, information about the fiduciary net position and additions to/deductions from fiduciary net position of the Town of Thomaston pension and OPEB plans, the Connecticut State Teachers' Retirement System ("TRS") and the Connecticut State Retiree Health Insurance Plan ("RHIP") have been determined on the same basis as they are reported by the Town of Thomaston pension and OPEB plans, TRS, and RHIP. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. C. Assets, liabilities, deferred outflows/inflows of resources and equity 1. Deposits and investments a. Deposits The Town considers cash as cash on hand and demand deposits. b. Investments In general, State of Connecticut Statutes allow the Town to invest in obligations of the United States of America or United States government sponsored corporations, in shares or other interests in any custodial arrangement, pool or no-load, open-end management type investment company or investment trust (as defined), in obligations of any State or political subdivision rated within the top two rating categories of any nationally recognized rating service, or in obligations of the State of Connecticut or political subdivision rated within the top three rating categories of any nationally recognized rating service. For the capital nonrecurring fund, not more than 31% can be invested in equity securities. Investment income is recorded in the fund in which it was earned. State Treasurer's Short-Term Investment Fund is an investment pool managed by the State of Connecticut Office of the State Treasurer. Investments must be made in instruments authorized by Connecticut General Statutes 3-27c - 3-27e. Investment guidelines are adopted by the State Treasurer. The fair value of the position in the pool is the same as the value of the pool shares. The Town's pension and OPEB funds have adopted a formal investment policy that defines allowable investments, prohibited investments, prohibited transactions, asset allocation guidelines, diversification guidelines and fixed income and cash guidelines. Pension fund investments may be invested in fixed income, equities, and real estate. Professional investment managers are employed to manage the assets allocated to them. The Retirement Plan Committee, as trustee of the pension plan, is responsible for overall investment policy. 36 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) The target asset allocation for the pension fund and the other post-employment benefits fund are as follows: Target Allocation Asset Class Pension OPEB Fixed income 40.00% 40.00% Equity 55.00% 55.00% Real estate 5.00% 5.00% Total 100.00% 100.00% There are also minimum and maximum target levels defined. c. Method used to value investments Investments for the Town are reported at fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates. Fair value of investments The Town measures and records its investments using fair value measurement guidelines established by accounting principles generally accepted in the United States of America (GAAP). These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1 Quoted prices for identical investments in active markets Level 2 Quoted prices for identical investments in markets that are not active Level 3 Unobservable inputs d. Risk policies Interest rate risk is the risk that the government will incur losses in fair Interest rate risk value caused by changing interest rates. The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit risk is the risk that an issuer or other counterparty will not fulfill its specific obligation even without the entity's complete failure. The Town has Credit risk no investment policy that would limit its investment choices due to credit risk other than State Statutes governing investments in obligations of any State or political subdivision or in obligations of the State of Connecticut or political subdivision. 37 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) Concentration of credit risk is the risk attributed to the magnitude of an Concentration of credit entity's investments in a single issuer. The Town follows the limitations risk specified in the Connecticut General Statutes. Generally, the Town's deposits cannot be 75% or more of the total capital in any one depository. Custodial credit risk is the risk that, in the event of the failure of the counterparty, the Town will not be able to recover the value of its Custodial credit risk investment or collateral securities that are in the possession of an outside party. The Town does not have a formal policy with respect to custodial credit risk. Foreign currency risk is the risk that the value of the investment may be Foreign currency risk affected by changes in the rate of exchange. The Town does not have a formal policy with respect the foreign currency risk. 2. Receivables and payables a. Interfunds Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either"due to/from other funds" (i.e., the current portion of interfund loans)or"advances to/from other funds"(i.e.,the non-current portion of interfund loans). b. Property taxes and other receivables In the government-wide financial statements, all trade, property tax, sewer use, sewer assessment and loan receivables are shown net of an allowance for uncollectibles. Allowance percentages range from 2% to 23% of outstanding receivable balances and are calculated based upon prior collections. In the fund financial statements, all property taxes receivable at June 30, which have not been collected by June 30, have been recorded as a deferred inflow of resources since they are not considered to be available to finance expenditures of the current year. Property taxes are assessed on property as of October 1. Taxes are billed in the following July and are due in two installments, July 1 and January 1. Personal property and motor vehicle taxes are billed in July and are due in one installment, July 1. Liens are effective on the assessment date and are continued by filing before the end of the fiscal year following the due date. Loan receivables consist of low interest bearing loans to Town residents and businesses primarily for residential rehabilitation and economic development. The loans were provided through the State Department of Economic and Community Development Small Cities grant program. 38 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) c. Leases receivable The Town is a lessor for noncancellable leases of buildings and land. The Town recognizes a lease receivable and a deferred inflow of resources in the government-wide and governmental fund financial statements. At the commencement of a lease, the Town initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Key estimates and judgments related to leases include: Discount Rate The Town uses its estimated incremental borrowing rate as the discount rate used to discount the expected lease receipts to present value. Lease Term The lease term includes the noncancellable period of the lease. Lease Payments Lease receipts included in the measurement of the lease receivable is composed of fixed pa ments from the lessee. The Town monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. 3. Restricted assets The restricted assets of the Town are restricted for endowment and perpetual care purposes determined by the donor requests. 4. Capital assets Capital assets, which include construction in progress, property, plant, equipment and infrastructure assets(e.g., roads, bridges, sidewalks and similar items), are reported in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. 39 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) Property, plant and equipment of the Town are depreciated/amortized using the straight-line method over the following estimated useful lives: Asset Class Years Buildings 100 Land improvements 20-50 Machinery and equipment 3-40 Vehicles 8-15 Infrastructure: Roads 50-75 Sewer lines 65 Storm drains 65 Right-to-use leased assets Lease term 5. Deferred outflows/inflows 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 represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. 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 represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town reports deferred outflows and inflows of resources related to pensions and OPEB in the government-wide statements for differences between expected and actual experience, changes in assumptions, and net difference between projected and actual earnings on plan investments. The deferred outflow or inflow related to differences between expected and actual experience and changes in assumptions will be amortized over the average remaining service life of all plan members. The deferred outflow or inflow related to the net difference between projected and actual earnings on plan investments will be amortized over a five-year period. Deferred inflows of resources also include deferred inflows relating to advance refunding of debt. These amounts are deferred and are amortized over the shorter of the life of the old or new debt. Advance tax collections, if any, represent taxes associated with a future period. This amount is recognized during the period in which the revenue is associated. Deferred inflows of resources include deferred inflows relating to the lease receivable. These amounts are deferred and are amortized to lease revenue in a systematic and rational manner over the term of the lease. For governmental funds, the Town reports unavailable revenue, which arises only under the modified accrual basis of accounting. Accordingly, unavailable revenue is reported only in the governmental funds' balance sheet. The governmental funds report unavailable revenues from several sources: property taxes (including advance collections, if any), and sewer assessment and use charges. These amounts are recognized as an inflow of resources in the period that the amounts become available. 40 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) 6. Compensated absences All employees are granted vacation and sick time based upon contractual provisions. Employees are not permitted to carry vacation days from one calendar year to the next without prior approval. Board of Education employees are paid vacation on a fiscal year basis and, therefore, unused vacation lapses at June 30. Town employees are paid vacation on an anniversary date basis and, therefore, a liability for unused vacation has been recorded. Certified employees at the Board of Education may accumulate up to 165 days of unused sick time. Employees are one-third vested with 20 - 24 years of service and two-thirds vested with 25 or more years of service. Unused sick time does not accumulate for certified employees hired after July 1, 1992. For employees other than certified teachers, sick leave accrues at the rate of 1'/4 days per month, cumulative to a maximum of 100 days. Upon the death or retirement of an employee an amount will be due equal to the accumulated sick days times the rate of pay per day of such employee at the time of such death or retirement. Employees who resign or are terminated are not entitled to their unused sick days. Police officers hired after July 1, 2005 are entitled to 45% up to a maximum of 50 days; public works employees hired after January 1, 2006 are entitled to 50% up to a maximum of 50 days; and sewer and white collar employees hired after July 1, 2005 are not entitled to the benefit. Compensated absences are only reported in governmental funds if they are due and payable to an employee who has resigned or retired before or at fiscal year end. 7. Termination benefits Termination benefits represent the present value of future benefits to be paid to former employees. Certain Board of Education employees were granted retirement awards based on years of service and other provisions in their contracts. A liability for these amounts has been recorded in the government- wide financial statements. 8. Long-term liabilities In the government-wide financial statements, long-term debt and other long-term liabilities are reported as liabilities in the governmental activities statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 41 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) 9. Fund equity and net position In the government-wide financial statements, net position is classified into the following categories: This category presents the net position that reflects capital assets net Net Investment in Capital of depreciation/amortization and net of only the debt applicable to the Assets acquisition or construction of these assets. Debt issued for non-capital purposes, and unspent bond proceeds, are excluded. This category presents the net position restricted by external parties Restricted Net Position (creditors, grantors, contributors or laws and regulations). Unrestricted Net Position The category presents the net position of the Town, which is not classified in the preceding two categories. Sometimes the Town will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net position and unrestricted net position in the government-wide financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the Town's policy to consider restricted net position to have been depleted before unrestricted net position is applied. In the fund financial statements, fund balances are classified into the following categories: This category presents amounts that cannot be spent either because Nonspendable they are in nonspendable form or because they are legally or contractually required to be maintained intact. This category presents amounts that can be spent only for specific Restricted purposes because of enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors or the laws or regulations of other governments. This category presents amounts that can be used only for specific Committed purposes established, modified or rescinded through resolutions approved by Town Meeting for capital and appropriation and Board of Finance for special revenue and other commitments. This category presents amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used Assigned for specific purposes. Intent is expressed by the passage of a resolution by the Board of Finance or a properly approved purchase order. This category presents amounts that do not meet the criteria above and Unassigned are available for any purpose. This category is only reported in the general fund for positive amounts and in any other fund that has a fund balance deficit. 42 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. Assets, liabilities, deferred outflows/inflows of resources and equity (continued) When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the Town considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned or unassigned fund balances are available, the Town considers amounts to have been spent first out of committed funds, then assigned funds and finally unassigned funds, as needed, unless the Board of Finance has provided otherwise in its commitment or assignment actions. Minimum fund balance policy The Board of Finance adopted a minimum fund balance policy for the general fund. The policy is that Town Boards shall propose budgets that provide for the unassigned fund balance at fiscal year-end to be not less than 5% nor more than 10% of the total operating general fund expenditures. 10. Use of estimates The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, deferred outflows and inflows of resources including disclosures of contingent assets and liabilities and reported revenues, expenses and expenditures during the fiscal year. Actual results could differ from those estimates. 11. Reclassifications Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. II. Stewardship, compliance and accountability A. Basis of budgeting Only the General Fund has a legally adopted annual budget. The Town uses the budgetary basis of accounting under which purchase orders for contracts or other commitments are recorded in order to reserve that portion of the applicable appropriation. Encumbrances are recognized as a valid and proper charge against a budget appropriation in the year in which the purchase order, contract or other commitment is issued and, accordingly, encumbrances outstanding at year end are reported in the budgetary statements included as required supplementary information. Appropriations for capital projects are continued until completion of applicable projects, even when projects extend more than one fiscal year. B. Donor-restricted endowments The Town has received certain endowments for the maintenance of Edith Kenea Park, the Hillside Cemetery and fire department operation purposes. The amounts are reflected in net position as restricted for endowments and perpetual care. Investment income (including appreciation) is approved for expenditure by the individual Boards. The amount of appreciation (depreciation) included in fund balance of the Hillside Cemetery Trust was $145,794. 43 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Donor-restricted endowments (continued) The Town allocates investment income of donor-restricted endowments in accordance with donor restrictions and Connecticut law, which has adopted the provisions of the Uniform Prudent Management of Institutional Funds Act ("UPMIFA"). Under UPMIFA, investment income earned on donor-restricted endowment funds is considered to be unrestricted in the absence of explicit donor restrictions. Further, in the absence of explicit donor restrictions regarding investment appreciation, such appreciation is treated the same as the related investment income. Investment losses that reduce the value of endowment investments below the original principal amount serve to reduce restricted net position or unrestricted net position, depending upon the applicable donor's stipulations regarding the treatment of investment income and appreciation. C. Capital or nonrecurring project authorizations The following is a summary of capital or nonrecurring projects: Project Current Year Cumulative Balance Authorization Expenditures Expenditures June 30, 2022 Assessors revaluation $ 687,137 $ 80,898 $ 674,662 $ 12,475 Beautification: Seth Thomas Park sign 625 - 171 454 Education projects 997,078 10,000 773,800 223,278 Bradstreet house repairs 22,770 - 15,282 7,488 Christmas lights-reserve 12,000 - 10,000 2,000 Emergency management projects 23,939 - 19,546 4,393 Energy efficiency project 3,177,835 - 3,159,857 17,978 Fire department projects 1,146,040 136,123 408,657 737,383 Grove manor chimney swift roost 29,462 - 29,605 (143) Inland wetland engineering 39,042 21,644 39,008 34 Kenea park clock restoration 16,000 - 13,150 2,850 K-9 donation reserves 14,347 - 11,244 3,103 Library projects 23,916 - 18,895 5,021 NAAgrants 28,166 6,107 9,088 19,078 Nips fees 4,848 - - 4,848 Nystroms Dam 1,200,000 48,904 48,904 1,151,096 Opera house projects 355,572 128,426 137,157 218,415 Park bench wood repairs 1,125 - 889 236 Police department projects 778,419 215,331 571,434 206,985 Public works department projects 26,462,032 5,761,589 23,648,875 2,813,157 Roofs engineering repairs 4,292,099 19,576 4,092,713 199,386 Senior Center- CT Community Foundation grant 1,400 1,320 80 Seth Thomas park 46,066 8,100 37,966 Skate park proceeds 1,090 - 1,090 Social services reserve 21,172 - 21,172 Street lights 25,879 874 10,742 15,137 Town-wide sick pay reserve 877,555 - 873,691 3,864 Track committee 3,354,373 10,802 3,332,151 22,222 Town hall projects 652,301 132,355 547,182 105,119 TVAC projects 29,925 - 18,242 11,683 WPCAprojects 2,050,000 208,369 1,490,103 559,897 Totals $46,372,213 $ 6,780,998 $39,964,468 $ 6,407,745 The Grove manor chimney swift roost project was over expended due to unanticipated costs related to the drafting of bid specifications. The Town will increase this projecYs authorization at a future meeting. 44 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 III. Detailed notes A. Cash and investments 1. Deposits— custodial credit risk At year end, the Town's bank balance of$8,738,641 (including certificates of deposit and bank money market funds)was exposed to custodial credit risk as follows: Uninsured and uncollateralized $ 3,092,168 Uninsured and collateral held by the pledging bank's trust department, not in the Town's name 1,197,389 Total amount subject to custodial credit risk $ 4,289,557 Financial instruments that potentially subject the Town to significant concentrations of credit risk consist primarily of cash. From time to time, the Town's cash account balances exceed the Federal Deposit Insurance Corporation limit. The Town reduces its credit risk by maintaining its cash deposits with major financial institutions and monitoring their credit ratings. 2. Investments a. The Town's investments (including restricted investments) consisted of the following investment types and maturities. Specific identification was used to determine the maturities. Investment Maturities (In Years) Fair Less 5-10 Type of Investment Value NIA Than 1 Years Certificates of tleposit $ 267,126 $ - $ 267,126 $ - Bank money market funds 4,522,431 4,522,431 - - Pooled fixed income 12,021,228 - 12,021,228 - Mutual fundslexchange traded funds: Money market 412,480 - 412,480 - Equity 12,989,461 12,989,461 - - Bond 7,795,915 - - 7,795,915 Real estate investment trust 48,377 48,377 - - Common stock 121,432 121,432 - - Total $ 38,178,450 $ 17,681,701 $ 12,700,834 $ 7,795,915 45 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 A. Cash and investments (continued) b. The Town had the following recurring fair value measurement: Quoted Market Prices in Active Markets Investments by fair value level Amount Level 1 Mutual funds/exchange traded funds: Money market $ 412,480 $ 412,480 Equity 12,989,461 12,989,461 Bond 7,795,915 7,795,915 Real estate investment trust 48,377 48,377 Com mon stock 121,432 121,432 Total investments byfairvalue level 21,367,665 $ 21,367,665 Other investments Certificates of deposit 267,126 Bank money market funds 4,522,431 Pooled fixed income 12,021,228 Total other investments 16,810,785 Total investments $ 38,178,450 Level 1: Quoted prices for identical investments in active markets c. The Town's investments subject to credit risk have average ratings by Standard & Poor's as follows: Mutual funds/exchange traded funds Pooled Average Fixed Nbney Rating Income Market Bond AAA $ 12,021,228 $ 412,480 $4,100,575 AA - - 180,236 A - - 978,043 BBB - - 1,233,263 BB - - 382,422 B - - 720,637 Below B - - 200,739 Totals $ 12,021,228 $ 412,480 $7,795,915 d. Custodial credit risk The investments are covered by the Securities Investor Protection Corporation ("SIPC") up to $500,000, including $250,000 of cash from sale or for purchase of investments, but not cash held solely for the purpose of earning interest. SIPC protects securities such as notes, stocks, bonds, debentures, certificates of deposit and money market funds. The Town does not have any investments subject to custodial credit risk since the common stock is held in the Town's name. 46 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Receivables 1. Receivable balances have been disaggregated by type and presented separately in the financial statements. Only receivables in the Town's financial statements with allowances for uncollectible accounts, including the applicable allowances for uncollectible accounts, are presented below. Property Taxes Interest and Taxes lien fees Total Current portion $ 181,488 $ 54,852 $ 236,340 Long-term portion 248,550 157,145 405,695 Less allowance for uncollectibles (100,000) (50,000) (150,000) Net long-term portion 148,550 107,145 255,695 Totals $ 330,038 $ 161,997 $ 492,035 Sewer Use Interest and CDBG Use lien fees Total Loans Current portion $ 87,771 $ 16,236 $ 104,007 $ 41,318 Long-term portion 104,475 19,809 124,284 893,523 Less allowance for uncollectibles (5,500) (1,500) (7,000) (100,000) Net long-term portion 98,975 18,309 117,284 793,523 Totals $ 186,746 $ 34,545 $ 221,291 $ 834,841 2. Leases receivable The Town reports the following lease balances and activity as of and for the year ended June 30, 2022: Deferred Lease Lease Inflows of Lease Interest Description Receivable Resources Revenue Revenue Chappel Street cell tower $ 386,733 $ 377,288 $ 107,797 $ 9,702 Plymouth tower space 85,920 83,430 27,810 2,225 Total $ 472,653 $ 460,718 $ 135,607 $ 11,927 47 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Receivables Description Lease Agreement Terms In January 2001, the Town entered into a twenty-five- year lease agreement for the right to use cell tower space. The lease agreement includes three automatic five-year renewal terms that the Town is exercising. Based on this agreement, the Town is receiving Chappel Street cell tower monthly payments through January 2041. In October 2018, the Town entered into an eight-year lease agreement for the right to use cell tower space. The lease agreement does not include any renewal options. Based on this agreement, the Town is PI mouth cell tower space receiving annual payments through October 2026. C. Interfund accounts 1. InterFund payables and receivables The amounts due from and due to other funds were as follows: Corresponding Due Due Fund From To General fund Capital or nonrecurring NIA $ 2,436,710 $ 1,297,775 Debt service NIA - 6,385,745 Sewer commission usage fund NIA - 82,435 Education funds NIA - 508,651 Transfer station fund NIA 7,421 - Recreation funds NIA - 32,828 Opera House fund NIA - 500 Gift fund NIA - 250 Edith Kenea park and tree fund NIA 1,482 - Hillside cemetery trust fund NIA 64,650 - Total general fund $ 2,510,263 $ 8,308,184 48 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. InterFund accounts (continued) Corresponding Due Due Fund From To Capital or nonrecurring General fund N/A $ 1,297,775 $ 2,436,710 Debt service N/A 8,155,000 - Capital projects fund N/A 1,604 - Total capital or nonrecurring 9,454,379 2,436,710 Debt service General fund N/A 6,385,745 - Capital or nonrecurring N/A - 8,155,000 Total debt service 6,385,745 8,155,000 Other governmental funds Special revenue funds Sewer commission usage fund General fund 82,435 - Sewer commission usage fund Capital projects fund - 35,608 Education funds General fund 508,651 - Education funds School activity fund - 699 School activity fund Education funds 699 - Transfer station fund General fund - 7,421 Opera House fund General fund 500 - Recreation funds General fund 32,828 - Gift fund General fund 250 - Capital project funds Capital projects fund Sewer commission usage fund 35,608 - Capital projects fund Capital or nonrecurring - 1,604 Permanent funds Edith Kenea park and tree fund General fund - 1,482 Hillside cemetery trust fund General fund - 64,650 Total other governmental funds 660,971 111,464 Total $ 19,011,358 $ 19,011,358 The debt service fund interfund balance is a result of amounts invested with general fund monies, to be used for the payment of bond anticipation notes in the capital or nonrecurring fund. The capital projects balances relate to the timing of the payment of vendor invoices and the reimbursement of the general fund. All other interfund balances resulted from the time lag between the dates payments occurred between funds for short-term internal financing or in instances where certain funds do not have a cash account. 49 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 C. InterFund accounts (continued) 2. Interfund transfers A summary of interfund transfers for the fiscal year is as follows: Corresponding Transfers Transfers Fund In Out General fund Capital or nonrecurring N/A $ - $1,062,621 Debt service N/A - 2,934,752 Education fund N/A - 152,357 Recreation funds N/A - 9,625 Social services crisis fund N/A - 10,000 EMS fund N/A 15,000 - Hillside cemetery trust fund N/A - 26,000 Total general fund 15,000 4,195,355 Capital or nonrecurring General fund 1,062,621 - Debt service General fund 2,934,752 - Other governmental funds Special revenue funds Sewer commission usage fund Capital projects fund - 35,608 Education fund General fund 152,357 - Education fund School activity fund - 12,699 School activity fund Education fund 12,699 - Recreation fund General fund 9,625 - Social services crisis fund General fund 10,000 - EMS fund General fund - 15,000 Capital project funds Capital projects fund Sewer commission usage fund 35,608 - Permanent funds Hillside cemetery trust fund General fund 26,000 - Total other governmental funds 246,289 63,307 Total $ 4,258,662 $4,258,662 Transfers are used to account for the financing by the general fund of various programs and activities in the debt service fund, capital or nonrecurring fund, special revenue funds, capital projects fund, and permanent funds. In turn, the EMS fund offsets its budget by transferring money to the general fund. Surpluses (deficits) in the sewer commission usage fund are transferred to (from) the capital projects funds. 50 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Capital assets Capital asset activity for the year was as follows: Balance Balance July 1, 2021 Increases Decreases June 30, 2022 (as restated) Capital assets, not being depreciated/ amortized: Land $ 1,341,961 $ - $ - $ 1,341,961 Construction in progress 6,308,289 5,374,646 835,549 10,847,386 Total capital assets, not being depreciated/ amortized 7,650,250 5,374,646 835,549 12,189,347 Capital assets, being depreciated/amortized: Buildings 46,160,904 - - 46,160,904 Land improvements 4,618,262 138,465 - 4,756,727 Right-to-use leased land improvements 992,889 - - 992,889 Machinery and equipment 13,622,206 313,497 - 13,935,703 Right-to-use leased machinery and equipment 36,903 - - 36,903 Vehicles 4,814,561 152,133 - 4,966,694 Infrastructure 29,431,401 1,035,294 10,080 30,456,615 Total capital assets, being depreciated/ amortized 99,677,126 1,639,389 10,080 101,306,435 Total capital assets 107,327,376 7,014,035 845,629 113,495,782 Less accumulated depreciationlamortization for: Buildings 16,105,565 968,454 - 17,074,019 Land improvements 1,170,942 91,532 - 1,262,474 Right-to-use leased land improvements - 55,161 - 55,161 Machinery and equipment 7,819,537 341,462 - 8,160,999 Right-to-use leased machinery and equipment - 17,293 - 17,293 Vehicles 2,222,202 271,248 - 2,493,450 Infrastructure 9,328,401 517,942 10,080 9,836,263 Total accumulated depreciation/amortization 36,646,647 2,263,092 10,080 38,899,659 Total capital assets, being depreciated/ amortized, net 63,030,479 (623,703) - 62,406,776 Capital assets, net $70,680,729 $ 4,750,943 $ 835,549 $ 74,596,123 51 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Capital assets (continued) Depreciation/amortization expense was charged to functions/programs of the Town as follows: General government $ 175,475 Public safety 350,551 Public works 812,575 Culture and recreation 128,309 Education 796,182 Total depreciation/amortization expense $ 2,263,092 E. Construction commitments At year end, the Town's commitments with contractors were as follows: Project Description Hickory Hill Road Reconstruction $ 198,525 F. Short-term liabilities— bond anticipation notes The Town uses bond anticipation notes (BANs) during the construction period of various projects prior to the issuance of bonds. Short-term liability activity was as follows: Maturity Coupon Balance Balance Purpose Date Rate July 1, 2021 Additions Reductions June 30, 2022 General purpose 8/9/2022 0.75% $ 3,378,000 $6,419,684 $3,378,000 $ 6,419,684 Schools 8/9/2022 0.75% 372,000 385,316 372,000 385,316 Woodbridge lane pump station 8/9/2022 0.75% 250,000 900,000 250,000 900,000 WPCA 8/9/2022 0.75% - 450,000 - 450,000 Total $ 4,000,000 $8,155,000 $4,000,000 $ 8,155,000 In August 2022, the Town issued $7,955,000 of BAN's with an interest rate of 3.00% and true interest cost of 2.25°/o. The notes mature in August 2023. 52 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 G. Changes in long-term liabilities General obligation bonds, equipment financing notes and leases are direct obligations and pledge the full faith and credit of the Town. 1. Summary of changes The following is a summary of changes in long-term liabilities during the fiscal year: Original Date of Date of Interest July 1, June 30, Current Long Term Description Amount Issue Maturity Rate 2021 Additions Deductions` 2022 Portion Portion (as restated) Bonds/Notes General Purpose: Refunding Bond $ 140,008 06/01111 12/01/22 2.0-4.0% $ 16,227 $ - $ 16,227 $ - $ - $ - Impro�ment Bond 5,725,000 11/01/14 11/01/34 3.0-4.0% 3,975,000 - 3,975,000 - - - Refunding Bond 5,809,500 05/19/15 02/01/30 3.0-4.0°/a 3,627,000 - 337,500 3,289,500 333,000 2,956,500 Impro�ment Bond 7,135,000 07/17/18 07/15/38 3.0-4.0°/a 6,312,546 - 411,227 5,901,319 411,227 5,490,092 Refunding Bond 2,512,500 06/11/20 05/01/33 2.0-5.0°/a 2,331,379 - 174,412 2,156,967 177,767 1,979,200 Refunding Bond 1,892,000 08I10/21 11/01/34 2.0-5.0°/a - 1,892,000 308,000 1,584,000 286,000 1,298,000 tn W Total General Purpose 23,214,008 16,262,152 1,892,000 5,222,366 12,931,786 1,207,994 11,723,792 Schools: Refunding Bond 6,244,960 06/01/11 12/01/22 2.0-4.0°/a 723,860 - 723,860 - - - Refunding Bond 645,500 05/19/15 02/01/30 3.0-4.0% 403,000 - 37,500 365,500 37,000 328,500 Refunding Bond 1,237,500 06/11I20 05/01/33 2.0-5.0% 1,148,621 - 85,588 1,063,033 87,233 975,800 Refunding Bond 2,193,000 08/10121 11/01/34 2.0-5.0% - 2,193,000 357,000 1,836,000 331,500 1,504,500 Total Schools 10,320,960 2,275,481 2,193,000 1,203,948 3,264,533 455,733 2,808,800 Sewer: Refunding Bond 560,032 06/01/11 12/01/22 2.0-4.0% 64,913 - 64,913 - - - Impro�ment Bond 1,280,000 07/17/18 07/15/38 3.0-4.0% 1,132,454 - 73,773 1,058,681 73,773 984,908 Refunding Bond 215,000 08/10/21 11/01/34 2.0-5.0°/a - 215,000 35,000 180,000 32,500 147,500 Total Sewer 1,840,032 1,197,367 215,000 173,686 1,238,681 106,273 1,132,408 Total Bonds 35,375,000 19,735,000 4,300,000 6,600,000 17,435,000 1,770,000 15,665,000 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 G. Changes in long-term liabilities (continued) Balance Balance Original Date of Date of Interest July 1, June 30, Current Long Term Description Amount Issue Maturity Rate 2021 Adtlitions Detluctions* 2022 Portion Portion (as restated) Equipment financing notes(direct borrowings): Vehicles $ 252,768 11/30117 09/01/23 3.52-6.90% $ 489,878 $ 48,397 $ 137,574 $ 400,701 $ 126,890 $ 273,811 Clean water note 1,394,449 04I30/20 04I30/39 2.00°/o 1,257,065 - 59,264 1,197,801 60,460 1,137,341 Total notes 1,647,217 1,746,943 48,397 196,838 1,598,502 187,350 1,411,152 Total bonds and notes 37,022,217 21,481,943 4,348,397 6,796,838 19,033,502 1,957,350 17,076,152 � Premiums 554,750 741,658 948,313 348,095 - 348,095 � Total bonds, notes antl related liabilities 22,036,693 5,090,055 7,745,151 19,381,597 1,957,350 17,424,247 Leases payable 1,029,792 - 48,029 981,763 49,346 932,417 Compensated absences 684,450 160,605 234,931 610,124 91,519 518,605 Termination benefits 225,623 - 122,973 102,650 65,522 37,128 Net pension liability - 5,099,071 701,700 4,397,371 - 4,397,371 Net OPEB liability 21,552,699 1,751,133 3,093,894 20,209,938 - 20,209,938 Total long-term liabilities $ 45,529,257 $ 12,100,864 $ 11,946,678 $ 45,683,443 $ 2,163,737 $ 43,519,706 * Includes $4,780,000 of refunded bonds. Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 G. Changes in long-term liabilities (continued) All long-term liabilities are generally liquidated by the general fund or debt service fund. The following is a summary of bond and note maturities: Fiscal Bonds Notes Year Ended June 30 Principal Interest Principal Interest 2023 $ 1,770,000 $ 611,425 $ 187,350 $ 37,558 2024 1,770,000 541,475 167,911 31,095 2025 1,770,000 472,900 117,147 25,956 2026 1,370,000 407,175 120,040 23,062 2027 1,375,000 355,550 123,007 20,095 2028 1,365,000 304,675 66,813 17,051 2029 1,375,000 253,775 68,162 15,702 2030 1,305,000 202,700 69,538 14,326 2031 955,000 152,575 70,941 12,923 2032 960,000 120,150 72,373 11,491 2033 955,000 92,700 73,834 10,030 2034 645,000 67,400 75,324 8,540 2035 560,000 50,881 76,845 7,019 2036 315,000 38,194 78,396 5,468 2037 315,000 27,562 79,978 3,886 2038 315,000 16,538 81,592 2,272 2039 315,000 5,513 69,250 636 Totals $ 17,435,000 $3,721,188 $ 1,598,502 $247,109 2. Assets pledged as collateral The Town's outstanding equipment financing notes of $400,701 are secured with collateral of the equipment purchased. 3. Statutory debt limitations The Town's indebtedness does not exceed the legal debt limitations as required by Connecticut General Statutes as reflected in the following schedule: Category Debit Limit Net Indebtedness Balance General purpose $ 47,175,262 $ 19,351,470 $ 27,823,792 Schools 94,350,524 3,649,849 90,700,675 Sewers 78,625,436 2,588,681 76,036,755 Urban renewal 68,142,045 - 68,142,045 Pension deficit 62,900,349 - 62,900,349 55 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 G. Changes in long-term liabilities (continued) The total overall statutory debt limit for the Town is equal to seven times annual receipts from prior year taxation, $146,767,481. The indebtedness reflected above includes bonds outstanding in addition to the amount of bonds authorized and unissued against which bond anticipation notes are issued and outstanding. 4. Authorized/unissued bonds The amount of authorized, unissued bonds is as follows: Bonding Previously Authorized Project Authorization Bonded But Unissued WPCA upgrade- phosphorus effluent limits $ 662,850 $ - $ 662,850 Muncipal building roofs 3,998,400 2,250,000 1,748,400 Fire truck 600,000 540,000 60,000 Payloader 150,000 130,000 20,000 Dump truck 194,900 150,000 44,900 Reconstruction and Repair of Roads 3,270,000 2,701,000 569,000 WPCAsewer lines 1,390,000 1,280,000 110,000 Road Reconstruction - Phase I 4,836,000 3,177,000 1,659,000 BOE Security Projects 403,786 372,000 31,786 Woodbridge Lane Pump Station 900,000 250,000 650,000 Carter Road Bridge 91,800 - 91,800 Refunding bond 5,000,000 - 5,000,000 Nystroms dam and dike 1,200,000 - 1,200,000 Opera House air handlers 217,000 - 217,000 W PCA SCADA computer system 450,000 - 450,000 Total $23,364,736 $10,850,000 $12,514,736 5. Termination benefits The Board of Education provides severance benefit payments to eligible former employees. Benefits are paid annually based on the retirement agreement for each employee and are payable through 2023. The benefits were paid from the General Fund Education department. 6. Leases Lease agreements are summarized as follows: Lease Balance Term* Interest Original June 30, Description Date (years Rate** Amount* 2022 Tractor 6/19/2020 3 2.00% $ 33,039 $ 15,951 Assessor copier 11/12/2020 5 2.00% 3,865 3,066 Tower space 2013-2014 25 2.00% 992,889 962,746 Total $ 1,029,793 $ 981,763 56 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 G. Changes in long-term liabilities (continued) *As of GASB No. 87 implementation date of July 1, 2021. **All interest rates have been imputed based on the rate from recently issued debt as there were no interest rates specified in the lease agreement. Description Lease Agreement Terms The lease is not renewable and the Town will not acquire the tractor Tractor at the end of the term. The lease is not renewable and the Town does not expect to Assessor co ier exercise the urchase o tion at the end of the term. These lease terms include four 5-year additional terms that the Town Tower space anticipates renewin . The following is a summary of principal and interest payments to maturity: Ending June 30 Principal Interest 2023 $ 49,346 $ 19,635 2024 35,965 18,648 2025 38,659 17,929 2026 41,187 17,156 2027 43,551 16,332 2028 46,625 15,461 2029 49,844 14,529 2030 53,212 13,532 2031 56,736 12,467 2032 60,423 11,333 2033 64,279 10,124 2034 68,311 8,839 2035 72,528 7,472 2036 76,935 6,022 2037 81,541 4,483 2038 86,355 2,852 2039 56,265 1,125 Totals $ 981,763 $ 197,941 57 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 H. Fund Balances Fund balances are composed of the following: Other Capital or Debt Governmental General Nonrecurring Service Funds Total Nonspendable: Permanent fund principal $ - $ - $ - $ 170,200 $ 170,200 Restricted: Cemetery maintenance - - - 71,570 71,570 School lunch operations* - - - 369,731 369,731 Public safety programs - - - 24,482 24,482 Library operations - - - 19,238 19,238 Park maintenance - - - 38,488 38,488 Other - - - 12,868 12,868 Construction contracts - 198,525 - - 198,525 Housing rehabilitation - - - 921,716 921,716 Sewer operations* - - - 317,319 317,319 Total restricted - 198,525 - 1,775,412 1,973,937 Committed: Public safety- EMS - - - 137,378 137,378 Cemetery maintenance - - - 521,610 521,610 Health and welfare - - - 91,623 91,623 Education programs - - - 815,786 815,786 Recreation programs - - - 32,655 32,655 Approved CNR projects - - - 460,565 460,565 Total committed - - - 2,059,617 2,059,617 Assigned: Subsequent year's budget 200,000 - - - 200,000 Future debt service payments - - 1,073,402 - 1,073,402 Total assigned 200,000 - 1,073,402 - 1,273,402 Unassigned: 5,906,570 (3,058,201) - (16,771) 2,831,598 Total $6,106,570 $(2,859,676) $1,073,402 $3,988,458 $8,308,754 * The amount of restricted net position, which is restricted by enabling legislation, totaled: $ 687,050 58 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 I. Deficit fund balances The transfer station fund had a deficit fund balance at year end of$16,771. The deficit will be reduced or eliminated in future years as amounts are received from charges for services and transfers from the general fund. IV. Other information A. Risk management The Town is exposed to various risks of loss related to public official liability, police liability, Board of Education legal liability, theft or impairment of assets, errors and omissions, injury to employees and natural disasters. The Town purchases commercial insurance for all other risks of loss, including blanket and umbrella policies. Settled claims have not exceeded commercial coverage in any of the past three years and there has not been any significant reduction in insurance coverage from amounts held in prior years. The Town is currently a member in Connecticut Interlocal Risk Management Agency ("CIRMA") an unincorporated association of Connecticut local public agencies which was formed for the purpose of establishing and administering an interlocal risk management program pursuant to the provisions of Section 7-47-a et. seq. of the Connecticut General Statutes. The Town is a member of CIRMA's Liability-Automobile-Property Pool, a risk sharing pool. The Town paid CIRMA for provisions of general liability, personal and advertising injury, medical payments, automobile liability, uninsured/underinsured motorist coverage, employee benefit liability, law enforcement liability, public officials liability, and school leaders liability. The premium is subject to these coverages and claims and expense payments falling within the deductible amounts are the responsibility of the Town. CIRMA's Liability-Automobile-Property Pool retains $1,000,000 per occurrence for each line of liability coverage. The Town is also a member of CIRMA's Workers' Compensation Pool, a risk sharing pool. The Workers' Compensation Pool provides statutory benefits pursuant to the provisions of the Connecticut Workers' Compensation Act. The coverage is subject to an insured loss retrospective rating plan and losses incurred in the coverage period will be evaluated at 18, 30 and 42 months after the effective date of coverage. The premium is subject to payroll audit at the close of the coverage period. CIRMA's Workers' Compensation Pool retains$1,000,000 per occurrence and purchases reinsurance above that amount to the limit of liability of$10,000,000 per occurrence. B. Commitments and litigation Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time, although the Town expects such amounts, if any, to be immaterial. The Town is a defendant in various lawsuits and the outcome of these lawsuits is not presently determinable. The resolution of these matters are not expected to have a material adverse effect on the financial condition of the Town. 59 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 V. Pensions and other post-employment benefit ("OPEB") plans A. Pension plan 1. Plan description a. Plan administration The Town administers the Town of Thomaston Retirement Plan - a single-employer defined benefit pension plan that provides pensions for any person who has completed or is expected to complete a Year of Participation Service with a minimum of 1,250 hours and is employed by the employer, including the school nurse and paid elected officials. The plan was established through an ordinance at a Town Meeting and may be amended by the Board of Selectmen per Article IX of the Pension Plan. The plan is considered to be part of the Town's financial reporting entity and is included in the Town's financial statements as a pension trust fund. The plan does not issue stand-alone financial statements. Management of the plan is vested in the Retirement Committee, which consists of four members appointed by the Board of Selectmen. b. Plan membership At January 1, 2022, pension plan membership consisted of the following: Active members 41 Terminated employees entitled to benefits 27 Retirees, disabled employees, and beneficiaries receiving benefits 83 Total 151 This plan was closed to new entrants in 2010. At that time, employees became eligible for participation in the Town's 457(b) deferred compensation plan. 2. Benefit provisions Hired before 1/1/1998: Age 55 with 10 years credited service Normal retirement Hired after 1/1/1998: Age 65 with 25 years credited service Normal retirement (Police) Age 50 with 10 years credited service Benefit calculation 2.00% of final average compensation per year of service to a maximum of 50.00% Benefit calculation (Police) 2.25% of final average compensation per year of service to a maximum of 67.50% Early retirement service 10 years of credited service. Benefit actuarially reduced. requirement/benefit Service connected disability 2.00% of final average compensation per year of service, amount paid as an annuity and reduced by compensation payments Non-service connected disability 10 years service re uirement 60 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 A. Pension plan (continued) 3. Contributions The plan provides that employees make mandatory contributions of 2.00% — 8.00% as required by their respective collective bargaining agreements or by their employment agreement with the employer. The Town is required to contribute the amount determined by the actuary, considering the member contributions. The average active member contribution rate was 5.20% of pensionable wages, and the Town's average contribution rate was 24.54% of covered payroll. 4. Investments a. Investment policy The pension plan's policy in regard to the allocation of invested assets is established and may be amended by the Retirement Committee by a majority vote of its members. It is the policy of the Town's Retirement Committee to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The following is the Board's adopted asset allocation policy: Target Asset Class Allocation Fixed income 40.00% Domestic equity 35.00% International equity 20.00% Real estate 5.00% Total 100.00% b. Concentrations There were no investments in any one organization that represents 5% or more of the pension plan's net position. c. Rate of return The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 61 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 A. Pension plan (continued) Best estimates of arithmetic real rates of return for each major asset class included in the pension plan's target asset allocation (see the discussion of the pension plan's investment policy) are as follows: Long-Term Expected Real Rate of Asset Class Return Fixed income 4.30% Domestic equity 9.30% International equity 7.30% Real estate 3.80% The weighted average expected rate of return is 7.00%. d. Annual money-weighted rate of return The annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was (14.10)%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 5. Net pension liability The components of the net pension liability were as follows: Total pension liability $ 23,083,112 Plan fiduciary net position 18,685,741 Net pension liability $ 4,397,371 Plan fiduciary net position as a percentage of the total pension liability 80.95% 62 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 A. Pension plan (continued) 6. Actuarial assumptions The total pension liability was determined using the following actuarial assumptions, applied to all periods included in the measurement: Valuation date Janua 1, 2022 Actuarial cost method Ent a e normal Asset valuation method Fair value Post-retirement increases None Inflation 2.80% Salar increase 4.00%, avera e, includin inflation Investment rate of return 7•00°/o, net of pension plan investment expense, includin inflation Mortality rates PUB-2010 mortality table with generational improvements from 2010 with Scale MP-2021 7. Changes from prior year a. Changes in assumptions From To Inflation rate 2.20% 2.80% PUBT-2010 mortality table with PUB-2010 mortality table with Nbrtality rate generational improvements generational improvements from 2010 with Scale MP-2019 from 2010 with Scale MP-2021 b. Changes in benefit terms There were no changes in benefit terms. 8. Discount rate The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that Town contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. 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. 63 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 A. Pension plan (continued) 9. Changes in the net pension liability (asset) The Town's net pension liability(asset)was measured at June 30, 2022, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of January 1, 2022. The changes in net pension liability were as follows: Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability(Asset) (a) (b) (a) - (b) Balance at July 1, 2021 $ 22,447,857 $ 22,488,813 $ (40,956) Service cost 201,508 - 201,508 Interest 1,538,263 - 1,538,263 Differences between expected and actual experience 233,328 - 233,328 Changes in assumptions 33,709 - 33,709 Contributions - employer - 570,000 (570,000) Contributions - member - 131,700 (131,700) Net investment income - (3,091,906) 3,091,906 Benefit payments, including refunds of inember contributions (1,371,553) (1,371,553) - Adminstrative expenses - (41,313) 41,313 Net change 635,255 (3,803,072) 4,438,327 Balance at June 30, 2022 $ 23,083,112 $ 18,685,741 $ 4,397,371 10. Sensitivity of the net pension liability to changes in the discount rate The following presents the net pension liability, calculated using the discount rate as well as what the Town's net pension liability (asset) would be if it were calculated using a discount rate that is 1- percentage-point lower or 1-percentage-point higher than the current rate: Discount Current Rate 1% Decrease Discount Rate 1% Increase Net pension liability 7.00°/o $ 6,805,348 $ 4,397,371 $ 2,357,125 64 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 A. Pension plan (continued) 11. Pension expense and deferred outflows of resources and deferred inflows of resources For the fiscal year, the Town recognized pension expense of$(288,477). The Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Description of Outflows/Inflows Resources Differences between expected and actual experience $ 111,167 Changes in assumptions 16,060 Net difference between projected and actual earnings on pension plan investments 2,094,888 Total $ 2,222,115 Amounts reported as deferred outflows (inflows) of resources related to pensions will be recognized in pension expense as follows: Year Ending June 30, 2023 $ 565,083 2024 434,575 2025 285,581 2026 936,876 Total $ 2,222,115 Actual investment earnings below (or above) projected earnings are amortized over 5 years. Changes of assumptions and experience losses(gains)are amortized over the average remaining service period of actives and inactives, which is also 5 years. B. Connecticut state teachers' retirement system 1. Plan description Teachers, principals, superintendents or supervisors engaged in service of public schools are provided with pensions through the Connecticut State Teachers' Retirement System ("TRS"), a cost sharing multiple-employer defined benefit pension plan administered by the Teachers' Retirement Board ("TRB"). Chapter 167a of the State Statutes grants authority to establish and amend the benefit terms to the TRB. TRS issues a publicly available financial report that can be obtained at www.ct.gov/trb. 65 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Connecticut state teachers' retirement system (continued) 2. Benefit provisions Normal retirement Age 60 with 20 years of credited service in Connecticut, or 35 years of credited service including at least 25 years of service in Connecticut 2.00% of the average annual salary times the years of credited service Benefit calculation (maximum benefit is 75% of average annual salary during the 3 years of highest salary) 25 years of credited service including 20 years of Connecticut service, or Early retirement age 55 with 20 years of credited service including 15 years of Connecticut service Benefit amounts are reduced by 6.00% per year for the first 5 years Early retirement preceding normal retirement age and 4.00% per year for the next 5 years amount preceding the normal retirement age. Effective July 1, 1999, the reduction for individuals with 30 or more years of service is 3.00% per year by which retirement precedes normal retirement date 2.00% of average annual salary times credited service to date of disability, but not less than 15% of average annual salary, nor more than 50% of Service connected average annual salary. In addition, disability benefits under this plan disability amount (without regard to cost-of-living adjustments) plus any initial award of social security benefits and workers' compensation cannot exceed 75% of annual average salary Non-service connected disability Five years of credited service service requirement Vestin - service 10 years of service Vestin - amount 100% Pre-retirement death Lump-sum return of contributions with interest or surviving spouse benefit benefit amount depending on length of service 3. Contributions State of Connecticut Per Connecticut General Statutes Section 10-183z (which reflects Public Act 79-436 as amended), contribution requirements of active employees and the State of Connecticut are amended and certified by the State Teachers' Retirement Board and appropriated by the General Assembly. The contributions are actuarially determined as an amount that, when combined with employee contributions and investment earnings, is expected to finance the costs of the benefits earned by employees during the year, with any additional amount to finance any unfunded accrued liability. Employer(school districts) School district employers are not required to make contributions to the plan. 66 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Connecticut state teachers' retirement system (continued) Employees Each teacher is required to contribute 7.00% of their salary for the pension benefit. 4. Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows of resources related to pensions The Town reports no amounts for its proportionate share of the net pension liability, and related deferred outflows and inflows due to the statutory requirement that the State pay 100%of the required contribution. The amounts recognized by the Town as its proportionate share of the net pension liability, the related state support, and the total portion of the net pension liability that was associated with the Town were as follows: Town's proportionate share of the net pension liability $ - State's proportionate share of the net pension liability associated with the Town 23,356,915 Total $23,356,915 The 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 June 30, 2020. The Town has no proportionate share of the net pension liability. During the year, the Town recognized pension expense and revenue of $1,955,762 for on-behalf amounts for contributions to the plan by the State. 5. Actuarial assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2020, using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 6.90% Inflation 2.50% Salary increases 3.00-6.50%, including inflation Mortality rates were based on the PubT-2010 Table, Mortality rates projected generationally with MP-2019 Future cost-of-living increases - For teachers who retired prior to September 1, 1992, pension benefit adjustments are made in accordance with increases in the Consumer Price Index, with a minimum of 3.00% and a maximum of 5.00% per annum. For teachers who were members of the Teachers' Retirement System before July 1, 2007, and retire on or after September 1, 1992, pension benefit adjustments are made that are consistent with those provided for social security benefits on January 1 of the year granted, with a maximum of 6.00% per annum. If the return on assets in the previous year was less than 8.50%, the maximum increase is 1.50%. 67 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Connecticut state teachers' retirement system (continued) For teachers who were members of the Teachers' Retirement System after July 1, 2007, pension benefit adjustments are made that are consistent with those provided for social security benefits on January 1 of the year granted, with a maximum of 5.00% per annum. If the return on assets in the previous year was less than 11.50%, the maximum increase is 3.00%, and if the return on the assets in the previous year was less than 8.50%, the maximum increase is 1.00%. The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the 5-year period ending June 30, 2019. Changes in assumptions and inputs • There were no changes in assumptions from the prior measurement date. Long-term expected rate of return The long-term expected rate of return on pension plan investments was determined using a log- normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of geometric rates of return for each major class are summarized in the following table: Long-Term Target Expected Real Asset Class Allocation Rate of Return Domestic equity fund 20.00% 5.60% Developed market international stock fund 11.00% 6.00% Emerging market international stock fund 9.00% 7.90% Core fixed income fund 16.00% 2.10% Inflation linked bond fund 5.00% 1.10% Emerging market debt fund 5.00% 2.70% High yield bond fund 6.00% 4.00% Real estate fund 10.00% 4.50% Private equity 10.00% 7.30% Alternative investments 7.00% 2.90% Liquidity fund 1.00% 0.40% Total 100.0% 68 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 B. Connecticut state teachers' retirement system (continued) 6. Discount rate The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that State contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. 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. 7. Sensitivity of the net pension liability to changes in the discount rate The Town's proportionate share of the net pension liability is $0 and, therefore, the change in the discount rate would only impact the amount recorded by the State of Connecticut. 8. Plan fiduciary net position Detailed information about the Connecticut State Teachers' Retirement Plan fiduciary net position is available in the separately issued State of Connecticut Annual Comprehensive Financial Report as of and for the year ended June 30, 2021. C. Defined contribution retirement savings plan Town employees are eligible to participate in a defined contribution plan administered by the Town. The benefits and contribution requirements are established by approval of the Board of Finance. The Plan requires the Town to contribute an amount to the plan based upon 50% of each participants contributions. Vesting Years of Service Percentage 2-3 50% 4-5 75% 6 or more 100% Voluntary contributions are allowed in combination with the Town's contribution up to the maximum amount allowed by IRS regulations. Employee contributions may be withdrawn at any time, although earned interest will not be paid until such time as benefits are otherwise payable to the employee. Upon termination of employment, for any reason other than death or retirement, an employee shall be entitled to a deferred vested benefit based upon the number of years of credit service completed. Payment of benefits is payable at normal retirement age but distribution must begin at age 70 '/2. The unvested accrued benefit of the employee is forfeited and used to offset the Town's matching contributions. During the year, the employer contributions were $62,004 and employee contributions totaled $100,171. Employee covered payroll totaled $1,498,421. 69 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits ("OPEB") plan 1. Plan description a. Plan administration The Town administers two single-employer, post-retirement healthcare plans: Town (Police, Sewer, Highway, Non-Union and White Collar) and Education (Administrators, AFSCME, Non-Union, Superintendent, Teachers and Non-Union Cafeteria). The Town plan is accounted for in a trust. The Education plan is not currently accounted for in a trust. The Town plan does not issue a stand- alone financial report. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB statement No. 75 for the Education Plan. b. Plan membership As of July 1, 2021 for Town and Education, the plans' membership consisted of: Town Education Active members 11 83 Retirees, disabled employees, and beneficiaries receiving benefits 45 26 Total 56 109 2. Benefit provisions The Town plan provides for medical and dental benefits for all eligible retirees and their spouses. The Education plan provides medical, dental and life insurance benefits to eligible retirees and their spouses. Benefits and contributions are established by contract and may be amended by union negotiations. Benefits are provided by a third party insurer and the full cost of benefits is covered by the plan. 3. Contributions a. Employer contributions The Town's recommended contributions are actuarially determined on an annual basis using the entry age normal method. The Town's total plan contributions were $636,309. b. Employee contributions There are no employee contributions to the Town and Education plans. Teachers who no longer work for the Education department are allowed by State Statute to participate in the Town's group medical insurance plan until they formally begin receiving benefits from the State Teachers' Retirement Plan. These teachers are required to contribute the cost of the insurance to the Town. 70 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) c. Retiree contributions Contribution requirements are as follows: Town plan White collar union employees and non-union employees 14.00% of premium Public works union emplo ees 13.00% of premium Police em lo ees 12.00% of premium Sewer union emplo ees 11.00% of premium Education plan Teachers and administrators 100% of premium AFSCME, non-union: Retired before the a e of 65 100% of premium Retired at or after the age of 65: Before July 1, 2006 0.00% of premium Before Jul 1, 2011 5.00% of premium On or after Jul 1, 2011 7.50% of premium There are no retiree contributions required for employees who retired prior to July 1, 2005. 4. Investments a. Investment policy The Town OPEB plan's policy in regard to the allocation of invested assets is established and may be amended by the Retirement Board by a majority vote of its members. It is the policy of the Town's Retirement Board to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The following was the Board's adopted asset allocation policy for the Town Plan: Target Asset Class Allocation U.S. large cap 37.50% Fixed income 30.00% Short duration 10.00% International developed 8.00% U.S. mid/small cap 7.50% Real estate 5.00% International emerging 2.00% Cash 0.00% Total 100.00% 71 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) b. Concentrations There were no investments in any one organization that represents 5% or more of the Town OPEB plan's net position. c. Rate of return The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan's target asset allocation (see the discussion of the OPEB plan's investment policy) are as follows: Long-Term Expected Real Rate Asset Class of Return U.S. large cap 6.30% Fixed income 2.10% Short duration 1.70% International developed 7.90% U.S. mid/small cap 6.70% Real estate 6.20% International emerging 9.40% Cash 0.72°/o Inflation 2.50% Long term expected nomimal rate of return 7.30% d. Annual money-weighted rate of return The annual money-weighted rate of return on OPEB plan investments, net of OPEB plan investment expense, was (12.53%)for the Town OPEB Plan. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. 72 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) 5. Total/Net OPEB liability a. Town Plan The components of the net OPEB liability were as follows: Town Plan Total OPEB liability $ 14,920,356 Plan fiduciary net position 462,055 Net OPEB liability $ 14,458,301 Plan fiduciary net position as a percentage of the total OPEB liability 3.10% b. OPEB liability— Education Plan The Education OPEB liability of $5,751,637 was measured as of June 30, 2022, and was determined by an actuarial valuation as of July 1, 2021. 6. Actuarial methods and significant assumptions The total OPEB liability for the plans was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Town Education Valuation date July 1, 2021 July 1, 2021 Actuarial cost method Entry age normal Entry age normal Asset valuation method Fair value Fair value Investment rate of return 4.80% 3.54% Initial medical trend rate 8.00%, net of pension plan 8.00%, net of pension plan investment expense, including investment expense, including inflation inflation Ultimate medical trend rate 4.50% 4.50% Inflation 2.20% 2.20% SOA Pub-2010 General SOA Pub-2010 General Mortality Headcount Weighted Mortality Headcount Weighted Mortality Table fully generational using Table fully generational using Scale MP-2021 Scale MP-2021 The discount rate was based on the Standard and Poors municipal bond 20 year high grade index as of the measurement date. 73 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) 7. Changes from prior year a. Changes in assumptions Town Education From To From To Discount rate 4.43°/o 4.80% 2.16% 3.54% b. Changes in benefit terms There were no changes in benefit terms. 8. Discount rate The final equivalent discount rate used to measure the total OPEB liability was 4.80% for the Town Plan. The projection of cash flows used to determine the discount rate assumed that the Town contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. The Town Plan's long-term real rate of return is expected to be 7.30%, but the plan investments are insufficient to pay for future benefits. Therefore, the 20-year tax exempt general obligation municipal bond rate as of June 30, 2022 of 3.54% is used once the plan assets are exhausted resulting in the final equivalent rate of 4.80%. The Education plan has no plan assets and therefore the discount rate used to measure the total OPEB liability is the 20-year tax exempt general obligation municipal bond rate as of June 30, 2022 of 3.54%. 9. Changes in the OPEB liability The Town's OPEB liability was measured at June 30, 2022, and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation as of July 1, 2021. 74 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) The changes in OPEB liability for each plan for the fiscal year were as follows: Increase (Decrease) Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability Town Plan (a) (b) (a) - (b) Balance at July 1, 2021 $ 14,922,243 $ 501,743 $ 14,420,500 Service cost 67,101 - 67,101 Interest 650,634 - 650,634 Differences between expected and actual experience 576,355 - 576,355 Changes in assumptions (684,668) - (684,668) Contributions - employer - 636,309 (636,309) Net investment income - (63,389) 63,389 Benefit payments, including refunds of inember contributions (611,309) (611,309) - Adminstrative expenses - (1,299) 1,299 Net change (1,887) (39,688) 37,801 Balance at June 30, 2022 $14,920,356 $ 462,055 $ 14,458,301 Total OPEB Education Plan Liability Balance at July 1, 2021 $ 7,132,199 Service cost 239,425 Interest 152,930 Differences between expected and actual experience (287,484) Changes in assumptions (1,282,278) Benefit payments, including refunds of inember contributions (203,155) Net change (1,380,562) Balance at June 30, 2022 $ 5,751,637 75 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) 10. Sensitivity of the OPEB liability to changes in the discount rate The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate: Discount Current OPEB Liability Rate 1% Decrease Discount Rate 1% Increase Town Plan (net) 4.80°/o $16,452,358 $14,458,301 $ 12,826,302 Education Plan (total) 3.54% $ 6,549,384 $ 5,751,637 $ 5,093,293 11. Sensitivity of the OPEB liability to changes in the healthcare cost trend rate The following presents the OPEB liability, as well as what the OPEB liability would be if it were calculated using trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current trend rate: Healthcare Cost Current OPEB Liability Trend Rate 1% Decrease Trend Rate 1% Increase 8.00%decrreasing Town Plan (net) to 4.50% $12,721,602 $14,458,301 $ 16,562,382 8.00%decrreasing Education Plan (total) to 4.50% $ 5,045,309 $ 5,751,637 $ 6,607,730 12. OPEB expense and deferred outflows of resources and deferred inflows of resources related to OPEB For the fiscal year the Town recognized OPEB expense of$733,117 for the Town Plan and ($18,481) for the Education Plan. 76 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) The Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Town Plan Deferred Deferred Outflows of Inflows of Description of Outflows/Inflows Resources Resources Net Differences between expected and actual experience $ 146,239 $ - $ 146,239 Changes in assumptions - 173,721 (173,721) Net difference between projected and actual earnings on plan investments 27,802 - 27,802 Total $ 174,041 $ 173,721 $ 320 Education Plan Deferred Deferred Outflows of Inflows of Description of Outflows/Inflows Resources Resources Net Differences between expected and actual experience $ 252,198 $1,867,231 $(1,615,033) Changes in assumptions 1,216,258 1,280,332 (64,074) Total $ 1,468,456 $3,147,563 $(1,679,107) Actual investment earnings below (or above) projected earnings are amortized over 5 years for the Town plan. Experience losses (gains) and changes in assumptions are amortized over the average remaining service period of active and inactive participants, which was 2 years for the Town Plan and 8 years for the Education Plan. Amounts reported as deferred outflows (inflows) of resources related to OPEB will be recognized in OPEB expense as follows: Year Ending Town Education June 30, Plan Plan 2023 $ (24,915) $ (410,833) 2024 3,718 (192,628) 2025 3,652 (85,417) 2026 17,865 (221,012) 2027 - (221,009) Thereafter - (548,208) Total $ 320 $ (1,679,107) 77 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 D. Other post-employment benefits plan (continued) 13. Total OPEB plans Deferred Deferred OPEB Outflows of Inflows of OPEB Liability Resources Resources Expense Town plan $ 14,458,301 $ 174,041 $ 173,721 $ 733,117 Education plan 5,751,637 1,468,456 3,147,563 (18,481) Total $ 20,209,938 $ 1,642,497 $ 3,321,284 $ 714,636 E. Connecticut state teachers' retirement board retiree health insurance plan 1. Plan description Teachers, principals, superintendents or supervisors engaged in service of public schools that are currently receiving a retirement or disability benefit through the Connecticut Teachers' Retirement System are eligible to participate in the Connecticut State Teachers' Retirement System Retiree Health Insurance Plan ("TRS-RHIP") - a cost sharing multiple-employer defined benefit other post- employment benefit plan administered by the Teachers' Retirement Board ("TRB"). Chapter 167a Section 10-183t of the State Statutes grants authority to establish and amend the benefit terms to the TRB. TRS-RHIP issues a publicly available financial report that can be obtained at www.ct.gov/trb. 2. Benefit provisions The Plan provides for retiree health insurance benefits. Eligibility is as follows: Normal retirement Age 60 with 20 years of credited service in Connecticut, or 35 years of credited service including at least 25 years of service in Connecticut 25 years of credited service including 20 years of Connecticut service, or Early retirement age 55 with 20 years of credited service including 15 years of Connecticut service Service connected disability service No service requirement requirement Non-service connected disability Five years of credited service service requirement Vesting - service 10 years of service 78 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 E. Connecticut state teachers' retirement board retiree health insurance plan (continued) Retiree health care coverage Any member that is currently receiving a retirement or disability benefit is eligible to participate in the Plan. There are two types of the health care benefits offered. Subsidized Local School District Coverage provides a subsidy paid to members still receiving coverage through their former employer and the CTRB Sponsored Medicare Supplemental Plans provide coverage for those participating in Medicare, but not receiving Subsidized Local School District Coverage. Any member that is not currently participating in Medicare Parts A& B is eligible to continue health care coverage with their former employer. A subsidy of up to $110 per month for a retired member plus an additional $110 per month for a spouse enrolled in a local school district plan is provided to the school district to first offset the retiree's share of the cost of coverage, any remaining portion is used to offset the district's cost. The subsidy amount is set by statute, and has not increased since July of 1996. A subsidy amount of $220 per month may be paid for a retired member, spouse or the surviving spouse of a member who has attained the normal retirement age to participate in Medicare, is not eligible for Part A of Medicare without cost, and contributes at least $220 per month towards coverage under a local school district plan. Any member that is currently participating in Medicare Parts A & B is eligible to either continue health care coverage with their former employer, if offered, or enroll in the plan sponsored by the System. If they elect to remain in the plan with their former employer, the same subsidies as above will be paid to offset the cost of coverage. If a member participating in Medicare Parts A & B so elects, they may enroll in one of the CTRB Sponsored Medicare Supplemental Plans. Active members, retirees, and the State pay equally toward the cost of the basic coverage (medical and prescription drug benefits). Those participants electing vision, hearing, and/or dental are required by the System's funding policy to pay the full cost of coverage for these benefits, and no liability is assumed by the Plan for these benefits. Survivor health care coverage Survivors of former employees or retirees remain eligible to participate in the Plan and continue to be eligible to receive either the $110 monthly subsidy or participate in the TRB-Sponsored Medicare Supplemental Plans, as long as they do not remarry. 3. Contributions State of Connecticut Per Connecticut General Statutes Section 10-183z, contribution requirements of active employees and the State of Connecticut are amended and certified by the State Teachers' Retirement Board and appropriated by the General Assembly. The State contributions are not currently actuarially funded. The State pays for one third of plan costs through an annual appropriation in the General Fund. 79 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 E. Connecticut state teachers' retirement board retiree health insurance plan (continued) Employer(school districts) School district employers are not required to make contributions to the plan. Employees Each member is required to contribute 1.25% of their pensionable wages. 4. OPEB liabilities, OPEB expense, deferred outflows of resources and deferred inflows of resources related to OPEB The Town reports no amounts for its proportionate share of the net OPEB liability, and related deferred outflows and inflows due to the statutory requirement that the State pay 100% of the required contribution. The amounts recognized by the Town as its proportionate share of the net OPEB liability, the related state support, and the total portion of the net OPEB liability that was associated with the Town were as follows: Town's proportionate share of the net OPEB liability $ - State's proportionate share of the net OPEB liability associated with the Town 2,544,693 Total $ 2,544,693 The net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020. The Town has no proportionate share of the net OPEB liability. The Town recognized OPEB expense and revenue of$46,023 for on-behalf amounts for contributions to the plan by the State. 5. Actuarial assumptions The total OPEB liability was determined by an actuarial valuation as of June 30, 2020, using the following actuarial assumptions, applied to all periods included in the measurement: Investment rate of return 3.00°/o Discount rate 2.17°/o Inflation 2.50% Health care cost trend rate (Medicare) 5.125% decreasing to 4.50% by 2023 Salary increases 3.00-6.50%, includin inflation Mortality rates �rtality rates were based on the PubT-2010 Table, projected generationally with MP-2019 Year fund net position will be de leted 2023 80 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 E. Connecticut state teachers' retirement board retiree health insurance plan (continued) The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the 5-year period ending June 30, 2019. Changes in assumptions and inputs • The discount rate was decreased from 2.21% to 2.17% to reflect the change in the Municipal Bond Index rate. Long-term expected rate of return The long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation)are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. All the plan assets are assumed to be invested in cash equivalents due to the need for liquidity. The expected rate of return is 2.00°/o. Since there have not been any changes to the asset allocation and the recent economic downturn is expected to be temporary, the funding rate of 3.00% continues to be used for the long-term investment rate of return as of June 30, 2021. 6. Discount rate The discount rate used to measure the total OPEB liability was 2.17%. The Municipal Bond Index Rate was used in the determination in the discount rate. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that annual State contributions will equal the most recent 5-year average of state contributions. 7. Sensitivity of the OPEB liability to changes in the discount rate and the health care cost trend rate The Town's proportionate share of the net OPEB liability is$0 and,therefore,the change in the discount rate and health care cost trend rate would only impact the amount recorded by the State of Connecticut. 8. Plan fiduciary net position Detailed information about the Connecticut State Teachers' OPEB Plan fiduciary net position is available in the separately issued State of Connecticut Annual Comprehensive Financial Report as of and for the year ended June 30, 2021. 81 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 F. Pension and other post-employment benefit plan statements Pension and Other Post-Employment Benefit Trust Funds Combining Schedule of Fiduciary Net Position June 30, 2022 Other Post- Employment Pension Benefit Trust Fund Trust Fund Total Assets Investments: Mutual funds/exchange traded funds: Nbney market $ 392,333 $ - $ 392,333 Equity 11,280,724 265,890 11,546,614 Bond 7,012,684 147,788 7,160,472 Real estate investment trust - 48,377 48,377 Total investments 18,685,741 462,055 19,147,796 Net Position Restricted for: Pension benefits 18,685,741 - 18,685,741 OPEB benefits - 462,055 462,055 Total net position $ 18,685,741 $ 462,055 $ 19,147,796 82 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 F. Pension and other post-employment benefit plan statements (continued) Pension and Other Post-Employment Benefit Trust Funds Combining Schedule of Changes in Fiduciary Net Position For the Year Ended June 30, 2022 Other Post- Employment Pension Benefit Trust Fund Trust Fund Total Additions: Contributions: Employer $ 570,000 $ 636,309 $ 1,206,309 Plan members 131,700 - 131,700 Total contributions 701,700 636,309 1,338,009 Investment income (loss): Net change in fair value of investments (3,473,853) (73,319) (3,547,172) Interest and dividends 428,786 10,604 439,390 Total investment income (loss) (3,045,067) (62,715) (3,107,782) Less investment expenses 46,839 674 47,513 Net investment income (loss) (3,091,906) (63,389) (3,155,295) Total additions (2,390,206) 572,920 (1,817,286) Deductions: Benefits 1,371,553 611,309 1,982,862 Administration 41,313 1,299 42,612 Total deductions 1,412,866 612,608 2,025,474 Changes in net position (3,803,072) (39,688) (3,842,760) Net position -July 1, 2021 22,488,813 501,743 22,990,556 Net position - June 30, 2022 $ 18,685,741 $ 462,055 $ 19,147,796 83 Exhibit H Town of Thomaston, Connecticut Notes to Financial Statements As of and for the Year Ended June 30, 2022 VI. Prior period adjustments and fund reclassification A. Prior period adjustments As a result of the implementation of GASB No. 87 lease receivable and deferred inflows of resources and a right-to-use leased assets and lease liability were recorded. There was no impact on beginning net position or fund balance. The amounts recorded are as follows: Governmental General Activities Fund Lease receivable $ 596,325 $ 596,325 Deferred inflows of resources - lease related (596,325) (596,325) Capital assets: Right-to-use leased assets 1,029,792 - Long-term liabilities: Lease liability (1,029,792) - B. Fund reclassification As of July 1, 2021, the small cities fund was reclassified from a major fund to a nonmajor fund. As a result, beginning fund balance of other governmental funds increased from $2,610,469 to $3,533,697. ***** 84 Required Supplementary Information Type Description Schedule of Revenues and Other Financing Sources- Budget and Actual -General Fund Budgetary Schedule of Expenditures and Other Financing Uses- Budget and Actual -General Fund Notes to Required Supplementary Information-Budgets and Budgetary Accounting Pension Plans Schedule of Changes in Net Pension Liability and Related Ratios and Town Schedule of Investment Returns State Teachers' Retirement System Schedule of Proportionate Share of the Net Pension Liability Schedule of Contributions Notes to Required Supplementary Information Other Post-Emplovment Benefits Plans Schedule of Changes in Net and Total OPEB Liability and Related Ratios Town and Schedule of Investment Returns Education Schedule of Proportionate Share of the Net OPEB Liability State Teachers' Retirement Board Retiree Health Insurance Plan Schedule of Contributions Notes to Required Supplementary Information RSI-1A (1 of 2) Town of Thomaston, Connecticut Required Supplementary Information General Fund Schedule of Revenues and Other Financing Sources Budget and Actual (Budgetary Basis) For the Year Ended June 30, 2022 Additional Variance Original Appropriations Final with Final Budget and Transfers Budget Actual Budget Property taxes: Taxes $ 20,515,698 $ - $20,515,698 $ 21,031,050 $ 515,352 Prior year taxes 200,000 - 200,000 188,982 (11,018) Interest and lien fees 100,000 - 100,000 135,810 35,810 Housing authority in lieu of taxes 29,502 - 29,502 33,468 3,966 Telecommunications property tax 13,095 - 13,095 12,245 (850) Total property taxes 20,858,295 - 20,858,295 21,401,555 543,260 Charges for services: Building permits 70,000 - 70,000 89,930 19,930 Conveyance tax 75,000 - 75,000 110,534 35,534 Special duty police reimbursements 75,000 - 75,000 141,496 66,496 Accident reports 250 - 250 363 113 Gun permits 10,000 - 10,000 6,190 (3,810) Vendor permits - - - 200 200 Zoning and land use fees 10,000 - 10,000 8,033 (1,967) Recreation- Nystroms 5,305 - 5,305 5,305 - Fingerprinting 100 - 100 213 113 Town of Litchfield -sewer upgrade 10,105 - 10,105 10,105 - Dam patrol 19,926 - 19,926 19,829 (97) Parking fines 500 - 500 20 (480) Dog fines and fees 4,000 - 4,000 5,162 1,162 Rent of tower 99,000 - 99,000 117,499 18,499 Rent of tower-Town of Plymouth 27,545 - 27,545 30,034 2,489 Rent of Opera House - - - 6,809 6,809 PA 09-229 LOCIP project funding 10,000 - 10,000 15,016 5,016 Total charges for services 416,731 - 416,731 566,738 150,007 Intergovernmental: Property tax relief-Veterans'exemption 9,641 - 9,641 11,002 1,361 Property tax relief-totally disabled 1,020 - 1,020 1,170 150 Property tax relief- municipal stabilization grant 395,346 - 395,346 395,346 - Property tax relief- manufacturing 9,790 - 9,790 - (9,790) Property tax relief-tiered 30,645 - 30,645 30,645 - Federal PILOT-land authorization 1,660 - 1,660 1,769 109 LOCIP 54,383 - 54,383 53,179 (1,204) Education cost sharing 5,461,463 - 5,461,463 5,448,452 (13,011) Mashantucket Pequot 16,872 - 16,872 16,872 - Town aid road 222,141 - 222,141 222,072 (69) Elderly services transportation grant 11,333 - 11,333 11,333 - CARES Act DOL Unemployment Grant - - - 1,617 1,617 FEMA disaster grants-public assistance - - - 22,835 22,835 Total intergovernmental 6,214,294 - 6,214,294 6,216,292 1,998 (Continued) See Notes to Required Supplementary Information. 85 RSI-1A (2 of 2) Town of Thomaston, Connecticut Required Supplementary Information General Fund Schedule of Revenues and Other Financing Sources Budget and Actual (Budgetary BasisJ For the Year Ended June 30,2022 Additional Variance Original Appropriations Final with Final Budget and Transfers Budget Actual Budget Income from investments $ 50,000 $ - $ 50,000 $ 34,551 $ (15,449) Other: Miscellaneous 5,000 - 5,000 31,443 26,443 Total revenues 27,544,320 - 27,544,320 28,250,579 706,259 Other financing sources: Appropriation of fund balance 186,561 422,164 608,725 - (608,725) Transfers in: EMS Fund 15,000 - 15,000 15,000 - Total otherfinancing sources 201,561 422,164 623,725 15,000 (608,725) Total revenues and other financing sources $ 27,745,881 $ 422,164 $ 28,168,045 $ 28,265,579 $ 97,534 (Concluded) See Notes to Required Supplementary Information. 86 RSI-1 B (1 of 2) Town of Thomaston, Connecticut Required Supplementary Information General Fund Schedule of Expenditures and Other Financing Uses Budget and Actual (Budgetary Basis) For the Year Ended June 30, 2022 Additional Variance Original Appropriations Final with Final Budget and Transfers Budget Actual Budget General government: Board of Selectmen $ 127,217 $ - $ 127,217 $ 126,844 $ 373 Elections 32,250 - 32,250 24,591 7,659 Board of Finance 2,000 - 2,000 1,756 244 Treasurer 206,196 7,497 213,693 213,693 - Computer information systems 57,220 5,048 62,268 62,268 - Independent audit 59,775 - 59,775 59,775 - Legal 85,500 - 85,500 76,574 8,926 Tax collector 113,802 3,484 117,286 117,286 - Tax assessor 150,238 - 150,238 144,168 6,070 Insurance 481,789 - 481,789 473,796 7,993 Town Hall operations and maintenance 240,972 - 240,972 228,037 12,935 Town Clerk 51,865 - 51,865 46,412 5,453 Probate court 4,213 - 4,213 4,212 1 Social security 270,000 - 270,000 266,402 3,598 Unemployment expense - 3,394 3,394 3,394 - Pension-Town employees 424,396 (21,115) 403,281 391,132 12,149 Pension-Volunteer Firefighters and Ambulance 80,000 - 80,000 79,090 910 Medical/life insurance 744,333 - 744,333 723,354 20,979 Retirees medical insurance 739,024 - 739,024 693,307 45,717 Council of governments 4,436 - 4,436 4,436 - CT Conference of Municipalities 4,894 - 4,894 4,894 - Contingency 100,000 (100,000) - - Total general government 3,980,120 (101,692) 3,878,428 3,745,421 133,007 Public safety: Police 1,345,978 - 1,345,978 1,235,172 110,806 Emergency management 11,604 - 11,604 10,539 1,065 Communications and dispatch 397,851 - 397,851 365,748 32,103 Fire protection 188,907 6,463 195,370 195,370 - Fire marshal 28,681 4,423 33,104 33,104 - Ambulance 64,500 - 64,500 60,113 4,387 Tree removal 50,000 - 50,000 48,840 1,160 Animal control 27,070 - 27,070 23,163 3,907 Total public safety 2,114,591 10,886 2,125,477 1,972,049 153,428 Public works: Highways 646,744 22,008 668,752 668,752 - Town aid road 222,141 - 222,141 222,141 - Snow and ice removal 202,500 10,576 213,076 213,076 - Street lighting 20,000 - 20,000 19,035 965 Fire hydrants 206,000 1,822 207,822 207,822 - Solid waste and recycling 613,093 23,422 636,515 636,515 - Groundwater remediation 37,938 8,079 46,017 46,017 - Total publicworks 1,948,416 65,907 2,014,323 2,013,358 965 (Continued) See Notes to Required Supplementary Information. 87 RSI-1 B (2 of 2) Town of Thomaston, Connecticut Required Supplementary Information General Fund Schedule of Expenditures and Other Financing Uses Budget and Actual (Budgetary Basis) For the Year Ended June 30, 2022 Additional Variance Original Appropriations Final with Final Budget and Transfers Budget Actual Budget Health and welfare: Medical services $ 4,500 $ - $ 4,500 $ 4,500 $ - Torrington Area Health District 41,292 - 41,292 41,292 - Social services 20,657 351 21,008 21,008 - Elderly nutrition 6,486 - 6,486 6,486 - Susan B.Anthony project 2,500 - 2,500 2,500 - Housatonic Valley Coalition 1,140 - 1,140 - 1,140 Minibus 18,308 1,482 19,790 19,790 - Veterans'administration 2,225 - 2,225 1,900 325 Senior Center 3,150 - 3,150 3,143 7 Total health and welfare 100,258 1,833 102,091 100,619 1,472 Culture and recreation: Recreation programs 133,694 13,057 146,751 146,751 - Memorial day 2,500 - 2,500 2,500 - Public library 353,522 - 353,522 324,623 28,899 Total culture and recreation 489,716 13,057 502,773 473,874 28,899 Housing and development: Conservation commission 1,795 - 1,795 1,795 - Economic development commission 2,250 - 2,250 1,349 901 Housing, land use and development 193,139 10,009 203,148 203,148 - Brownfields 1,000 - 1,000 1,000 - Total housing and development 198,184 10,009 208,193 207,292 901 Education 15,141,405 - 15,141,405 15,141,405 - Total expenditures 23,972,690 - 23,972,690 23,654,018 318,672 Other financing uses: Transfers out: Debt service fund 2,800,000 - 2,800,000 2,800,000 - Debt service fund (education) 134,752 - 134,752 134,752 - Hillside cemetery trust fund 26,000 - 26,000 26,000 - Capital or nonrecurring 640,457 422,164 1,062,621 1,062,621 - Seth Thomas/Bradstreet house 9,625 - 9,625 9,625 - Social service crisis fund 10,000 - 10,000 10,000 - Education fund 152,357 - 152,357 152,357 - Total other financing uses 3,773,191 422,164 4,195,355 4,195,355 - Total expenditures and otherfinancing uses $ 27,745,881 $ 422,164 $ 28,168,045 $ 27,849,373 $ 318,672 (Concluded) See Notes to Required Supplementary Information. 88 RSI-1 C Town of Thomaston, Connecticut Notes to Required Supplementary Information Budgets and Budgetary Accounting For the Year Ended June 30, 2022 The Town operates under State statutes for budgetary procedures. The Town adheres to the following procedures in establishing the budgetary data included in the general fund financial statements. The general fund is the only fund for which a legal budget is adopted. This budget is adopted on a basis consistent with generally accepted accounting principles (modified accrual basis) with the following exceptions: • The Town does not budget for as revenue or expenditures payments made for the State Teachers' pension and OPEB by the State of Connecticut on the Town's behalf. Reconciliation to Exhibit D Revenues Expenditures Budgetary Basis - RSI-1 $ 28,250,579 $ 23,654,018 State Teachers' pension on behalf amount 1,955,762 1,955,762 State Teachers' OPEB on behalf amount 46,023 46,023 GAAP Basis - Exhibit D $ 30,252,364 $ 25,655,803 Formal budgetary integration is employed as a management control device during the year. The Board of Finance submits a proposed operating budget for the fiscal year commencing July 1 to the annual Town Meeting at which taxpayer comments are obtained. The operating budget includes proposed expenditures and the means of financing them. Prior to July 1, the budget is legally adopted by vote at the annual Town budget meeting. The legal level of control (the level at which expenditures may not legally exceed appropriations) is at the department level. The Board of Selectmen and the Board of Education are authorized to transfer budgeted amounts within departments. Transfers of budgeted amounts between departments must be approved by the Board of Finance. The Board of Finance can approve additional appropriations for a department, provided such additional appropriations do not exceed $20,000. Appropriations in excess of $20,000 must be approved by vote of a Town Meeting. The Board of Education, which is not a separate legal entity but a function of the Town, is authorized under state law to make any transfers required within their budget at their discretion. Any additional appropriations must have Board of Education and Board of Finance approval and, if over$20,000, Town Meeting approval. During the year, there were additional appropriations from fund balance of$422,164. 89 RSI-2A Town of Thomaston,Connecticut Required Supplementary Information Town Retirement Plan Last Nine Years(1) 2022 2021 2020 2019 2018 2017 2016 2015 2014 Schedule of Chanqes in Net Pension Liabilitv and Related Ratios Total pension liability: Service cost $ 201,508 $ 231,805 $ 279,997 $ 296,619 $ 321,322 $ 357,930 $ 387,724 $ 363,897 $ 401,270 I nterest 1,538,263 1,480,035 1,459,716 1,432,379 1,420,327 1,407,359 1,365,722 1,295,503 1,269,639 Differences between expected and actual experience 233,328 (394,655) (116,692) (151,278) (419,938) (414,928) (110,825) (265,689) (19,597) Changes in assumptions 33,709 848,429 (87,688) (48,888) (38,197) (92,172) - 607,611 - Benefit payments,including refunds of inember contributions (1,371,553) (1,258,627) (1,135,097) (1,108,281) (1,064,984) (1,007,682) (1,028,327) (1,015,713) (1,059,644) Net change in total pension liability 635,255 906,987 400,236 420,551 218,530 250,507 614,294 985,609 591,668 Total pension liability-July 1 22,447,857 21,540,870 21,140,634 20,720,083 20,501,553 20,251,046 19,636,752 18,651,143 18,059,475 Total pension liability-June 30(a) $ 23,083,112 $22,447,857 $ 21,540,870 $ 21,140,634 $ 20,720,083 $ 20,501,553 $ 20,251,046 $ 19,636,752 $ 18,651,143 Plan fiduciary net position: Contributions-employer $ 570,000 $ 640,000 $ 710,000 $ 685,000 $ 775,000 $ 790,000 $ 800,000 $ 830,000 $ 924,999 Contributions-member 131,700 137,447 149,901 147,029 157,619 175,704 159,545 167,530 153,778 Net investment income (3,091,906) 4,559,838 519,957 1,203,971 1,186,593 1,739,088 134,539 366,071 1,902,564 � Benefit payments,including refunds of inember contributions (1,371,553) (1,258,627) (1,135,097) (1,108,281) (1,064,984) (1,007,682) (1,028,327) (1,015,713) (1,059,644) Administration (41,313) (29,416) (26,758) (43,134) (25,324) (29,092) (35,932) (35,337) (31,839) Net change in plan fiduciary net position (3,803,072) 4,049,242 218,003 884,585 1,028,904 1,668,018 29,825 312,551 1,889,858 Plan fiduciary net position-July 1 22,488,813 18,439,571 18,221,568 17,336,983 16,308,079 14,640,061 14,610,236 14,297,685 12,407,827 Plan fiduciary net position-June 30(b) $ 18,685,741 $22,488,813 $ 18,439,571 $ 18,221,568 $ 17,336,983 $ 16,308,079 $ 14,640,061 $ 14,610,236 $ 14,297,685 Net pension liability(asset)-June 30(a)-(b) $ 4,397,371 $ (40,956) $ 3,101,299 $ 2,919,066 $ 3,383,100 $ 4,193,474 $ 5,610,985 $ 5,026,516 $ 4,353,458 Plan fiduciary net position as a percentage of the total pension liability 80.95% 100.18% 85.60°/o 86.19% 83.67% 79.55% 72.29% 74.40% 76.66% Covered payroll $ 2,323,119 $ 2,605,167 $ 2,842,038 $ 3,029,570 $ 3,171,283 $ 3,369,027 $ 3,415,672 $ 3,309,461 $ 3,285,183 Net pension liability(asset)as a percentage of covered payroll 189.29% (1.57%) 109.12% 96.35% 106.68% 124.47% 164.27% 151.88% 132.52% Schedule of Investment Returns Annual money weighted rate of return,net of investment expense (14.10%) 25.47% (0.43°/a) 6.40% 6.33% 12.71% 0.83% 1.89% 15.34°/a (1) This schedule is intended to present information for 10 years. Additional years will be presented as they become available. See Notes to Required Supplementary Information. RSI-2B Town of Thomaston,Connecticut Required Supplementary Information Town Retirement Plan Schedule of Contributions Last Ten Years 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Actuarially determined contributions $ 400,646 $ 522,281 $ 522,281 $ 587,272 $ 585,540 $ 657,455 $ 714,209 $ 741,399 $ 734,912 $ 824,021 Contributions in relation to the actuarially determined contribution 570,000 640,000 710,000 685,000 775,000 790,000 800,000 830,000 924,999 895,000 Contribution excess(deficiency) $ 169,354 $ 117,719 $ 187,719 $ 97,728 $ 189,460 $ 132,545 $ 85,791 $ 88,601 $ 190,087 $ 70,979 Covered payroll $ 2,323,119 $ 2,605,167 $ 2,842,038 $ 3,029,570 $ 3,171,283 $ 3,369,027 $ 3,415,672 $ 3,309,461 $ 3,285,183 $ 3,381,120 Contributions as a percentage of covered payroll 24.54% 24.57% 24.98% 22.61% 24.44% 23.45% 23.42% 25.08% 28.16% 26.47% � � See Notes to Required Supplementary Information. RSI-2C Town of Thomaston,Connecticut Notes to Required Supplementary Information Town Retirement Plan Schedule of Contributions Last Nine Years(1) 2022 2021 2020 2019 2018 2017 2016 2015 2014 Changes of Benefit Terms None None None None None None None None None The actuarially determined January 1,2022 January 1,2021 January 1,2020 January 1,2019 January 1,2018 January 1,2017 January 1,2016 January 1,2015 January 1,2014 contribution rates are calculated as of Actuarial methods and assumptions used to determine contribution rates: Actuarial Cost Method Entr a e normal Ent a e normal Entr a e normal Ent a e normal Ent a e normal Ent a e normal Ent a e normal Entr a e normal Ent a e normal Amortization Method Level dollar,closed Level dollar,closed Level dollar,closed Level dollar,closed Level dollar,closed Level dollar,closed Level dollar,closed Level dollar,closed Level dollar,closed Asset Valuation Method 5 ear smoothin 5 ear smoothin 5 ear smoothin 5 ear smoothin 5 ear smoothin 5 ear smoothin 5 ear smoothin 5 ear smoothin 5 ear smoothin � N Inflation 2.80% 220°/ 2.20% 2.20°/ 225°/ 2.25°/ 2.25°/ 3.00% 3.00% Salary Increases 4.00% 4.00°/ 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Investment Rate of Return(Net) 7,00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% Pub-2010 tables with RP-2014 Total RP-2014 Total RP-2014 Total RP 2014+mortality RP-2014+mortality Police,public works, Police,public works, generation mortality table mortality table mortality table based on assumptions with social security WPCA and highway WPCA and highway improvements from projected from 2006 projected from 2006 projected from 2006 from the 2017 Social generational members-RP-2014 members-RP-2014 2010 with Scale based on based on based on Security improvement scale blue collar mortality blue collar mortality MP-2020 assumptions from assumptions from assumptions from Administration from 2006 with improvement with improvement the 2019 Social the 2019 Social the 2018 Social Trustee's Report scale from 2006.All scale from 2006.All Mortality Rate Security Security Security other members-RP- other members-RP- N/A Administration Administration Administration 2014 total mortality 2014 total mortality Trustee's Report Trustee's Report Trustee's Report with social security with social security generational generational improvement scale improvement scale from 2006 from 2006 (1)These schedules are intended to present information for 10 years.Additional years will be presented as they become available N/A-Not Available RSI-3A Town of Thomaston,Connecticut Required Supplementary Information Connecticut State Teachers'Retirement System Last Eight Years(3) 2022 2021 2020 2019 2018 2017 2016 2015 Schedule of Proportionate Share of the Net Pension Liabilitv Town's proportion of the net pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Town's proportionate share of the net pension liability $ - $ - $ - $ - $ - $ - $ - $ - State of ConnecticuYs proportionate share of the net pension liability associated with the Town 23,356,915 29,490,739 27,547,926 21,241,051 21,209,807 22,376,509 18,724,328 17,306,889 Total $23,356,915 $29,490,739 $27,547,926 $21,241,051 $21,209,807 $22,376,509 $18,724,328 $17,306,889 Town's covered payroll (2) (2) (2) (2) (2) (2) (2) (2) Town's proportionate share of the net pension liability as a percentage of its covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% � Plan fiduciary net position as a percentage of the total pension W liability 60.77% 49.24% 52.00% 57.69% 55.93% 52.86% 59.50% 61.50% Schedule of Contributions Contractually required contribution(1) $ - $ - $ - $ - $ - $ - $ - $ - Contributions in relation to the contractually required contribution - - - - - - - - Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - Town's covered payroll (2) (2) (2) (2) (2) (2) (2) (2) Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (1) Local employers are not required to contribute to the plan (2) Not applicable since 0°/o proportional share of the net pension liability (3) This schedule is intended to present information for 10 years. Additional years will be presented as they become available. See Notes to Required Supplementary Information. RSI-36 Town of Thomaston,Connecticut Notes to Required Supplementary Information Connecticut State Teachers'Retirement System Schedule of Contributions Last Eight Years(1) 2022 2021 2020 2019 2018 2017 2016 2015 Beginning January 1,2018,member contributions increased from 6.00%to 7.00%of Chan es of Benefit Terms None None None sala None None None None The actuarially determined contribution rates are calculated as of .1une 30,2020 June 30,2020 June 30,2018 June 30,2018 June 30,2016 June 30,2016 June 30,2014 June 30,2014 Actuarial methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Entry age Entry age Entry age Level percent of Level percent of Level percent of Level percent of Amortization Method salary,closed, salary,closed, salary,closed, salary,closed, Level percent of Level percent of Level percent of Level percent of grading to a level grading to a level grading to a level grading to a level salary,closed salary,closed salary,closed salary,closed � dollar dollar dollar dollar � Remaining Amortization Period 27.8 years 27.8 years 30 years 30 years 20.4 years 20.4 years 21.4 years 22.4 years Asset Valuation Method 4 year smoothing 4 year smoothing 4 year smoothing 4 year smoothing 4 year smoothing 4 year smoothing 4 year smoothing 4 year smoothing Inflation 2.50% 2.50% 2.50% 2.75% 2.75% 2.75% 3.00% 3.00% 3.00%-6.50%, 3.00%-6.50%, 3.25%-6.50%, 3.25%-6.50%, 3.25%-6.50%, 3.25%-6.50%, 3.75%-7.00%, 3.75%-7.00%, Salary Increases average,including average,including average,including average,including average,including average,including average,including average,including inflation inflation inflation inflation inflation inflation inflation inflation 1.75%-3.00%based 1.75%-3.00%based 1.75%-3.00%based 1.75%-3.00%based 1.75%-3.00%based 1.75%-3.00%based 2.00%-3.00%based 2.00%-3.00%based Cost-of-Living Adjustments on retirement date on retirement date on retirement date on retirement date on retirement date on retirement date on retirement date on retirement date Investment Rate of Return(Net) 6.90% 6.90% 6.90% 8.00% 8.00% 8.00% 8.50% 8.50% PubT-2010 Table PubT-2010 Table RP-2014 White RP-2014 White RP-2014 White RP-2014 White RP-2000 Combined RP-2000 Combined projected projected Collar table Collar table Collar table Collar table Mortality Table Mortality Table Mortality Rate generationally with generationally with projected to the year projected to the year projected to the year projected to the year projected 19 years projected 19 years MP-2019 MP-2019 2020 using the BB 2020 using the BB 2020 using the BB 2020 using the BB using scale AA using scale AA improvement scale improvement scale improvement scale improvement scale (1) This schedule is intended to present information for 10 years.Additional years will be presented as they become available. RSI-4A Town of Thomaston,Connecticut Required Supplementary Information Town Other Post-Employment Benefit(OPEB) Plan Last Six Years (1) 2022 2021 2020 2019 2018 2017 Schedule of Chanqes in Net OPEB Liabilitv and Related Ratios Total OPEB liability: Service cost $ 67,101 $ 111,128 $ 125,373 $ 216,810 $ 205,034 $ 219,329 Interest 650,634 746,862 758,496 1,091,922 1,202,380 1,175,639 Difference between expected and actual experience 576,355 (1,727,106) (870,529) (6,504,575) (1,847,217) 2,266,952 Changes in benefit terms - (29,237) - - - - Changes in assumptions (684,668) 1,963,391 (775,933) 840,426 999,754 (196,530) Benefit payments, including refunds of inember contributions (611,309) (724,472) (656,996) (839,356) (844,480) (875,766) Net change in total OPEB liability (1,887) 340,566 (1,419,589) (5,194,773) (284,529) 2,589,624 Total OPEB liability-July 1 14,922,243 14,581,677 16,001,266 21,196,039 21,480,568 18,890,944 Total OPEB liability-June 30(a) $ 14,920,356 $14,922,243 $ 14,581,677 $ 16,001,266 $21,196,039 $21,480,568 Plan fiduciary net position: � Contributions-employer $ 636,309 $ 749,472 $ 681,996 $ 864,356 $ 869,480 $ 900,766 Net investment income (63,389) 95,545 18,038 23,452 18,083 18,590 Benefit payments, including refunds of inember contributions (611,309) (724,472) (656,996) (839,356) (844,480) (875,766) Administration (1,299) (560) (501) (761) (500) (416) Net change in plan fiduciary net position (39,688) 119,985 42,537 47,691 42,583 43,174 Plan fiduciary net position-July 1 501,743 381,758 339,221 291,530 248,947 205,773 Plan fiduciary net position-June 30(b) $ 462,055 $ 501,743 $ 381,758 $ 339,221 $ 291,530 $ 248,947 Net OPEB liability-June 30(a)-(b) $ 14,458,301 $14,420,500 $ 14,199,919 $ 15,662,045 $20,904,509 $21,231,621 Plan fiduciary net position as a percentage of the total OPEB liability 3.10% 3.36% 2.62% 2.12% 1.38% 1.16% Covered payroll $ 925,246 $ 898,297 $ 1,303,639 $ 1,253,499 $ 2,770,895 $ 2,664,322 Net OPEB liability as a percentage of covered payroll 6.40% 6.23% 9.18% 8.00% 13.26°/o 12.55% Schedule of Investment Returns Annual money weighted rate of return, net investment expense (12.53%) 24.56% 3.26% 4.02% 3.49% 3.97% (1)These schedules are intended to present information for 10 years.Additional years will be presented as the information becomes available. See Notes to Required Supplementary Information. RSI-46 Town of Thomaston,Connecticut Required Supplementary Information Town Other Post-Employment Benefit(OPEB)Plan Schedule of Contributions Last Ten Years 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Actuarially determined contributions $ 1,055,511 $ 828,319 $ 868,989 $ 1,215,346 $ 1,211,597 $ 1,151,113 $ 1,558,534 $ 1,480,136 $ 1,249,797 $ 1,225,729 Contributions in relation to the actuarially determined contribution 636,309 749,472 681,996 864,356 869,480 900,766 685,657 631,108 652,571 607,716 Contribution excess(deficiency) $ (419,202) $ (78,847) $ (186,993) $ (350,990) $ (342,117) $ (250,347) $ (872,877) $ (849,028) $ (597,226) $ (618,013) Covered payroll $ 925,246 $ 898,297 $ 1,303,639 $ 1,253,499 $ 2,770,895 $2,664,332 $ 2,546,003 $2,471,848 $2,310,927 $2,243,618 Contributions as a percentage of covered payroll 68.77% 83.43% 52.31% 68.96% 31.38% 33.81% 26.93% 25.53% 28.24% 27.09% c� rn See Notes to Required Supplementary Information. RSI-4C Town of Thomaston,Connecticut Notes to Required Supplementary Information Town Other Post-Employment Benefit(OPEB)Plan Schedule of Contributions Last Nine Years(1) 2022 2021 2020 2019 2018 2017 2016 2015 2014 For active employees retiring on or after July 1,2020 and by June 3Q 2021,retirees' Changes of Benefit Terms None premium share is None None None None None None None 13.00%for white collar, 12.50%for public works,and 11.00%for sewer The actuarially determined contribution �anuary 1,2020 January 1,2020 January 1,2018 January 1,2018 January 1,2016 January 1,2016 January 1,2014 January 1,2014 January 1,2012 rates are calculated as of Actuarial methods and assumations used to determine contribution rates: Actuarial Cost Method Ent a e normal Entr a e normal Ent a e normal Entr a e normal Ent a e normal Entr a e normal Projected unit Pro'ected unit credit Pro'ected unit credit ry g y 9 ry g y g ry 9 y g credit > > Cfl Amortization Method Level percentage of Level percentage of Level percentage of Level percentage of Level percentage Level percentage of Level dollar Level dollar Level dollar � sala sala sala salar of sala salar Asset Valuation Method Fair value Fair value Fair value Fair value Fair value Fair value Fair value Fair value N/A Inf18ti0n 2.50% 2.50% 2.20% 2.20% 3.50% 3.50% 3.00% 3.00% N/A Salary Increases 4.00% 4.00% 4.00% 4.00% N/A N/A N/A N/A N/A Investment Rate of Return-Town(Net) 6.07% 6.07°/ 6.00% 6.00% 5.60°/ 5.60°/ 5.33% 5.33% 5.33% Investment Rate of Return-Education 2.66% 2.66% 3.51% 3.51% 3.56% 3.56% 4.50% 4.50% 4.50% (Net) SOA Pub-2010 SOA Pub-2010 general SOA Pub-2010 SOA Pub-2010 SOA RPH-2016 SOA RPH-2016 general headcount headcount weighted general headcount general headcount Total Dataset Total Dataset weighted mortality mortality table fully weighted mortality weighted mortality Headcount- Headcount- table fully generational using table fully table fully Weighted Mortality Weighted Mortality Mortality Rate generational using Scale MP-2021 generational using generational using Table fully Table fully N/A N/A N/A Scale MP-2021 Scale MP-2019 Scale MP-2019 generational using generational using Scale MP-2016 Scale MP-2016 (1)These schedules are intended to present information for 10 years.Additional years will be presented as they become available N/A-Not Available. RSI-SA Town of Thomaston, Connecticut Required Supplementary Information Education Other Post-Employment Benefit(OPEB) Plan Last Six Years(1) 2022 2021 2020 2019 2018 2017 Schedule of Chanqes in Total OPEB Liability and Related Ratios Total OPEB liability: Service cost $ 239,425 $ 340,201 $ 278,538 $ 226,046 $ 256,700 $ 342,342 Interest 152,930 206,607 243,931 220,611 220,059 205,769 Difference between expected and actual experience (287,484) (1,455,969) (381,988) 588,466 (513,843) (933,922) Changes in assumptions (1,282,278) 721,926 832,351 360,723 (236,655) (562,365) Benefit payments, including refunds of inember contributions (203,155) (213,723) (219,578) (179,196) (173,960) (174,221) Net change in total OPEB liability (1,380,562) (400,958) 753,254 1,216,650 (447,699) (1,122,397) � Total OPEB liability-July 1 7,132,199 7,533,157 6,779,903 5,563,253 6,010,952 7,133,349 � Total OPEB liability-June 30* $ 5,751,637 $ 7,132,199 $ 7,533,157 $ 6,779,903 $ 5,563,253 $ 6,010,952 Covered employee payroll N/A N/A $ 8,094,378 $ 7,783,056 N/A N/A Total OPEB liability as a percentage of covered employee payroll N/A N/A 107.45% 114.80% N/A N/A (1)This schedule is intended to present information for 10 years. Additional years will be presented as they become available. "There are no assets that are being accumulated in a trust that meets the criteria in GASB No. 75 to pay benefits N/A-Not available RSI-6A Town of Thomaston, Connecticut Required Supplementary Information Connecticut State Teachers' Retirement Board Retiree Health Insurance Plan Last Five Years(3) 2022 2021 2020 2019 2018 Schedule of Proportionate Share of the Net OPEB Liabilitv Town's proportion of the net OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00% Town's proportionate share of the net OPEB liability $ - $ - $ - $ - $ - State of ConnecticuYs proportionate share of the net OPEB liability associated with the Town 2,544,693 4,398,545 4,296,255 4,246,205 5,459,175 Total $2,544,693 $4,398,545 $4,296,255 $4,246,205 $5,459,175 Town's covered payroll (2) (2) (2) (2) (2) Town's proportionate share of the net OPEB liability as a percentage of its covered payroll 0.00% 0.00% 0.00% 0.00% 0.00°/o Plan fiduciary net position as a percentage of the total OPEB liability 6.11°/o 2.50% 2.08% 1.49% 1.79% � � Schedule of Contributions Contractually required contribution (1) $ - $ - $ - $ - $ - Contributions in relation to the contractually required contribution - - - - - Contribution deficiency(excess) $ - $ - $ - $ - $ - Town's covered payroll (2) (2) (2) (2) (2) Contributions as a percentage of covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% (1) Local employers are not required to contribute to the plan (2) Not applicable since 0% proportional share of the net OPEB liability (3)These schedules are intended to present information for 10 years.Additional years will be presented as they become available. See Notes to Required Supplementary Information. RSI-6B Town of Thomaston,Connecticut Notes to Required Supplementary Information Connecticut State Teachers'Retirement Board Retiree Health Insurance Plan Schedule of Contributions Last Five Years(1) 2022 2021 2020 2019 2018 Changes of Benefit Terms None None None None None The actuarially determined contribution rates are calculated as of June 30,2020 June 30,2020 June 30,2018 June 30,2018 June 30,2016 Actuarial methods and assumptions used to determine contribution rates: Actuarial Cost Method Entry age Entry age Entry age Entry age Entry age Amortization Method Level percentage,closed Level percentage,closed Level percentage,open Level percentage,open Level percentage,open Amortization Period 30 years 30 years 30 years 30 years 30 years � O � Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.50% 2.50% 2.75% 2.75% 2.75% Initial 5.125%decreasing Initial 5.95%decreasing o 0 Healthcare Inflation Rate to 4.50%(ultimate)by Initial 6.125%decreasing to 4.75%(ultimate)by Initial 6.95/o decreasing to Initial�7.25/o decreasing to 2023 to 4.50/o(ultimate)by 2023 2�25 4.75/o(ultimate)by 2025 5.00/o(ultimate)by 2022 Salary Increases 3.00%to 6.50%, 3.00%to 6.50%, 3.25%to 6.50%, 3.25%to 6.50%, 3.25%to 6.50%, including inflation including inflation including inflation including inflation including inflation Investment Rate of Return(Net) 3.00% 3.00% 3.00% 3.00% 4.25% RP-2014 White Collar RP-2014 White Collar table RP-2014 White Collar table with employee and with employee and table with employee and PubT-2010 Table PubT-2010 Table annuitant rates blended annuitant rates blended annuitant rates blended Mortality Rate projected generationally projected generationally from ages 50 to 80, from ages 50 to 80, from ages 50 to 80, with MP-2019 with MP-2019 projected to the year projected to the year 2020 projected to the year 2020 2020 using the BB using the BB improvement using the BB improvement improvement scale scale scale (1) These schedules are intended to present information for 10 years.Additional years will be presented as they become available. Supplemental Schedules General Fund The general fund is the principal fund of the Town and is used to account for all activities of the Town, except those required to be accounted for in another fund. The general fund accounts for the normal recurring activities of the Town (i.e., general government, public safety, public works, health and welfare, culture and recreation, housing and development, education, etc.). These activities are funded principally by property taxes, user fees and grants from other governmental units. Schedule 1 Town of Thomaston,Connecticut General Fund Report of Tax Collector For the Year Ended June 30,2022 Lawful Corrections Collections Uncollected Current Transfers Adjusted Uncollected Grand Taxes Year to Taxes Net Taxes Interest Taxes List Year July 1, Levy Additions Deductions Suspense Collectible Collected and Liens Total June 30,2022 2006 $ - $ - $ - $ - $ - $ - $ - $ 1,278 $ 1,278 $ - 2007 - - - - - - - 569 569 - 2008 - - - - - - - 864 864 - 2009 6,160 - - - - 6,160 1,732 3,348 5,080 4,428 2010 5,795 - - 127 - 5,668 411 883 1,294 5,257 2011 9,384 - - - - 9,384 574 1,423 1,997 8,810 2012 18,625 - - 226 - 18,399 1,121 2,117 3,238 17,278 2013 16,769 - - - - 16,769 2,554 3,385 5,939 14,215 � � 2014 17,717 - 3,666 - 892 20,491 6,587 4,014 10,601 13,904 � 2015 21,911 - - - 822 21,089 3,596 3,293 6,889 17,493 2016 30,976 - - 175 - 30,801 8,436 6,312 14,748 22,365 2017 38,054 - 469 1,578 - 36,945 9,981 5,577 15,558 26,964 2018 71,904 - 2,155 1,563 1,547 70,949 39,753 11,920 51,673 31,196 2019 178,061 - 5,915 6,779 2,127 175,070 118,104 23,852 141,956 56,966 Subtotal 415,356 - 12,205 10,448 5,388 411,725 192,849 68,835 261,684 218,876 2020 21,304,601 216,495 283,230 1,147 21,236,719 21,025,557 66,975 21,092,532 211,162 Total $ 415,356 $ 21,304,601 $ 228,700 $ 293,678 $ 6,535 $ 21,648,444 $ 21,218,406 $ 135,810 $ 21,354,216 $ 430,038 Schedule 2 Town of Thomaston, Connecticut General Fund Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual (Budgetary Basis) For the Year Ended June 30, 2022 Additional Variance Original Appropriations Final with Final Budget and Transfers Budget Actual Budget Revenues: Property taxes $ 20,858,295 $ - $ 20,858,295 $ 21,401,555 $ 543,260 Charges for services 416,731 - 416,731 566,738 150,007 Intergovernmental 6,214,294 - 6,214,294 6,216,292 1,998 Income from investments 50,000 - 50,000 34,551 (15,449) Other 5,000 - 5,000 31,443 26,443 Total revenues 27,544,320 - 27,544,320 28,250,579 706,259 Expenditures: Current: General government 3,980,120 (101,692) 3,878,428 3,745,421 133,007 Public safety 2,114,591 10,886 2,125,477 1,972,049 153,428 Public works 1,948,416 65,907 2,014,323 2,013,358 965 Health and welfare 100,258 1,833 102,091 100,619 1,472 Culture and recreation 489,716 13,057 502,773 473,874 28,899 Housing and development 198,184 10,009 208,193 207,292 901 Education 15,141,405 - 15,141,405 15,141,405 - Total expenditures 23,972,690 - 23,972,690 23,654,018 318,672 Excess (deficiency) of revenues over expenditures 3,571,630 - 3,571,630 4,596,561 1,024,931 Other financing sources (uses): Appropriation of fund balance 186,561 422,164 608,725 - (608,725) Transfers in 15,000 - 15,000 15,000 - Transfers out (3,773,191) (422,164) (4,195,355) (4,195,355) - Netotherfinancingsources (uses) (3,571,630) - (3,571,630) (4,180,355) (608,725) Net change in fund balance $ - $ - $ - 416,206 $ 416,206 Fund balance-July 1, 2021 5,690,364 Fund balance-June 30, 2022 $ 6,106,570 102 Other Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are restricted, committed, or assigned to expenditures for particular purposes. Fund Funding Source Function Sewer Commission Usage Fund Charges for services Sewer operations Sewer Commission Assessment and Charges for services Connection fees to the sewer system Appropriation Fund School Lunch Fund Sale of ineals and grants Operations of the school lunch program Education Funds Grants and contributions Federal and State education grants, local grants and donations School Activity Fund Fees and contributions Education programs Town Clerk Preservation Fund Charges for services and grants Fees charged for land records to be used for historical document preservation Transfer Station Fund Charges for services Operations of the transfer station Thomaston Opera House Fund Contributions Performance related scholarship program Public Library Funds Grants and contributions Library programs and other library sponsored activities Charges for services, grants Public safety programs including fire marshal Public Safety Funds and contributions fees and permits, substance abuse grants, and forfeiture monies Recreation Funds Charges for services and Recreation programs contributions Other Governmental Funds Fund Funding Source Function Various donations, such as the clock tower Gift Fund Contributions restoration, Citizen Emergency Response Team (CERT), Beautification fund, Greenway Committee and Tri-Centennial Committee Social Services Crisis Fund Contributions Social service programs EMS Fund Charges for services Volunteer Ambulance operations Small Cities Fund Grants and loan repayments Small Cities loan program Capital Proiects Funds Capital projects funds are used to account for acquisition and construction of major capital assets other than those financed by proprietary and trust funds. Fund Funding Source Function Charges for services, grants Financial resources to be used for the Capital Projects Fund and transfers in construction or acquisition of capital equipment or facilities Permanent Funds Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes as categorized by the fund title. Fund Funding Source Function Money bequeathed for the purpose of Edith Kenea Park and Tree Fund Income from investments replacing flowers and trees and beautification of Town parks Fire Department Trust Fund Income from investments Money endowed to the Fire Department from Edith Kenea Hillside Cemetery Trust Fund Charges for services and Endowments, perpetual care assets and income from investments operations of the Hillside Cemetery Schedule 3 (1 of 3) Town of Thomaston,Connecticut Other Governmental Funds Combining Balance Sheet June 30,2022 Special Revenue Funds Sewer Commission Assessment Thomaston Sewer and School School Town Clerk Transfer Opera Commission Appropriation Lunch Education Activity Preservation Station House Usage Fund Fund Fund Funds Fund Fund Fund Fund Assets Cash $ - $ 124,910 $ 265,192 $ 361,253 $130,441 $ 10,484 $ - $ - Investments - 192,409 - - - - - - Receivables(net): Assessments/use charges 192,246 - - - - - - - Loans - - - - - - - - Intergovernmental - - 101,417 50,893 - - - - Other - - - 23,022 - - - - Due from other funds 82,435 - - 508,651 699 - - 500 Other - - 9,242 - - - - - o Total assets $274,681 $ 317,319 $ 375,851 $ 943,819 $131,140 $ 10,484 $ - $ 500 w Liabilities Accounts payable $ 30,018 $ - $ - $ 46,245 $ - $ - $ 3,444 $ - Accrued payroll 16,809 - - 102,368 - - 352 - Due to other funds 35,608 - - 699 - - 7,421 - Unearned revenue - - 6,120 109,861 - - 5,554 - Totalliabilities 82,435 - 6,120 259,173 - - 16,771 - Deferred Inflows of Resources Unavailable revenue- assessments/use charges 192,246 - - - - - - - Fund Balances Nonspendable - - - - - - - - Restricted - 317,319 369,731 - - 10,484 - - Committed - - - 684,646 131,140 - - 500 Unassigned - - - - - - 16,771 - Total fund balances - 317,319 369,731 684,646 131,140 10,484 16,771 500 Total liabilities, deferred inflows of resources and fund balances $274,681 $ 317,319 $ 375,851 $ 943,819 $131,140 $ 10,484 $ - $ 500 (Continued) Schedule 3 (2 of 3) Town of Thomaston,Connecticut Other Governmental Funds Combining Balance Sheet June 30,2022 Special Revenue Funds Social Total Public Public Services Small Special Library Safety Recreation Gift Crisis EMS Cities Revenue Funds Funds Funds Fund Fund Fund Fund Funds Assets Cash $19,238 $21,624 $ - $50,835 $ 35,801 $ - $ 71,395 $ 1,091,173 Investments - 2,858 - 4,587 150 137,378 15,480 352,862 Receivables(net): Assessments/use charges - - - - - - - 192,246 Loans - - - - - - 834,841 834,841 Intergovernmental - - - - - - - 152,310 Other - - - - - - - 23,022 Due from other funds - - 32,828 250 - - - 625,363 Other - - - - - - - 9,242 � Total assets $19,238 $24,482 $ 32,828 $55,672 $ 35,951 $ 137,378 $921,716 $ 3,281,059 0 � Liabilities Accounts payable $ - $ - $ 673 $ - $ - $ - $ - $ 80,380 Accrued payroll - - - - - - - 119,529 Due to other funds - - - - - - - 43,728 Unearned revenue - - - - - - - 121,535 Totalliabilities - - 673 - - - - 365,172 Deferred Inflows of Resources Unavailable revenue- assessments/use charges - - - - - - - 192,246 Fund Balances Nonspendable - - - - - - - - Restricted 19,238 24,482 - - - - 921,716 1,662,970 Committed - - 32,155 55,672 35,951 137,378 - 1,077,442 Unassigned - - - - - - - (16,771) Total fund balances 19,238 24,482 32,155 55,672 35,951 137,378 921,716 2,723,641 Total liabilities,deferred inflows of resources and fund balances $19,238 $24,482 $ 32,828 $55,672 $ 35,951 $ 137,378 $921,716 $ 3,281,059 (Continued) Schedule 3 (3 of 3) Town of Thomaston,Connecticut Other Governmental Funds Combining Balance Sheet June 30,2022 Capital Projects Fund Permanent Funds Edith Fire Hillside Total Capital Kenea Department Cemetery Total Other Projects Park and Trust Trust Permanent Governmental Fund Tree Fund Fund Fund Funds Funds Assets Cash $ 20,565 $ - $ - $ 40,653 $ 40,653 $ 1,152,391 Investments 405,996 89,970 18,084 729,301 837,355 1,596,213 Receivables(net): Assessments/use charges - - - - - 192,246 Loans - - - - - 834,841 I ntergovern mental - - - - - 152,310 Other - - - - - 23,022 Due from other funds 35,608 - - - - 660,971 Other - - - - - 9,242 Total assets $ 462,169 $ 89,970 $ 18,084 $ 769,954 $ 878,008 $ 4,621,236 � p Liabilities � Accounts payable $ - $ - $ - $ 5,440 $ 5,440 $ 85,820 Accrued payroll - - - 2,184 2,184 121,713 Due to other funds 1,604 1,482 - 64,650 66,132 111,464 Unearned revenue - - - - - 121,535 Total liabilities 1,604 1,482 - 72,274 73,756 440,532 Deferred Inflows of Resources Unavailable revenue- assessments/use charges - - - - - 192,246 Fund Balances Nonspendable - 50,000 15,700 104,500 170,200 170,200 Restricted - 38,488 2,384 71,570 112,442 1,775,412 Committed 460,565 - - 521,610 521,610 2,059,617 Unassigned - - - - - (16,771) Total fund balances 460,565 88,488 18,084 697,680 804,252 3,988,458 Total liabilities,deferred inflows of resources and fund balances $ 462,169 $ 89,970 $ 18,084 $ 769,954 $ 878,008 $ 4,621,236 (Concluded) Schedule 4 (7 of 3) Town of Thomaston,Connecticut Other Governmental Funds Combining Schedule of Revenues,Expenditures and Changes in Fund Balances For the Year Ended June 30,2022 Special Revenue Funds Sewer Commission Assessment Thomaston Sewer and School School Town Clerk Transfer Opera Commission Appropriation Lunch Education Activity Preservation Station House Usaqe Fund Fund Fund Funds Fund Fund Fund Fund Revenues: Chargesforservices $ 1,408,589 $ 6,000 $ 13,683 $ - $ 106,835 $ 5,107 $ 31,934 $ - Intergovernmental - - 642,827 1,780,937 - 5,500 - - Contributions - - - 37,907 - - - 500 Income from investments - 608 - - - 7 - - Net change in fair value of investments - - - - - - - - Total revenues 1,408,589 6,608 656,510 1,818,844 106,835 10,614 31,934 500 Expenditures: Current: General government - - - - - 11,538 - - o Public safety - - - - - - - - � Publicworks 1,372,981 - - - - - 31,727 - Health and welfare - - - - - - - - Culture and recreation - - - - - - - 10 Education - - 441,104 1,807,152 100,481 - - - Capital outlay - - - - - - - - Total expenditures 1,372,981 - 441,104 1,807,152 100,481 11,538 31,727 10 Excess(deficiency)of revenues over expenditures 35,608 6,608 215,406 11,692 6,354 (924) 207 490 Other financing sources(uses): Transfers in - - - 152,357 12,699 - - - Transfers out (35,608) - - (12,699) - - - - Net other financing sources(uses) (35,608) - - 139,658 12,699 - - - Net change in fund balances - 6,608 215,406 151,350 19,053 (924) 207 490 Fund balances,July 1,2021 (as restated) - 310,711 154,325 533,296 112,087 11,408 (16,978) 10 Fund balances,June 30,2022 $ - $ 317,319 $ 369,731 $ 684,646 $ 131,140 $ 10,484 $ (16,771) $ 500 (Continued) Schedule 4 (2 of 3) Town of Thomaston,Connecticut Other Governmental Funds Combining Schedule of Revenues,Expenditures and Changes in Fund Balances For the Year Ended June 30,2022 Special Revenue Funds Social Total PubliC PubliC Services Small Special Library Safety Recreation Gift Crisis EMS Cities Revenue Funds Funds Funds Fund Fund Fund Fund Funds Revenues: Chargesforservices $ - $ 500 $ 21,327 $ - $ - $ 15,000 $ - $ 1,608,975 Intergovernmental 4,852 - - - - - - 2,434,116 Contributions 22,426 22,824 - 15,092 21,835 - - 120,584 Income from investments 1 6 - 17 - - 3 642 Net change in fair value of investments - - - - - - - - Total revenues 27,279 23,330 21,327 15,109 21,835 15,000 3 4,164,317 Expenditures: Current: General government - - - 20 - - - 11,558 Public safety - 28,965 - - - - - 28,965 Publicworks - - - 870 - - - 1,405,578 � Health and welfare - - - - 5,067 - 1,465 6,532 v Culture and recreation 13,531 - 12,716 11,379 - - - 37,636 Education - - - - - - - 2,348,737 Capital outlay - - - - - - - - Total expenditures 13,531 28,965 12,716 12,269 5,067 - 1,465 3,839,006 Excess(deficiency)of revenues over expenditures 13,748 5,635 8,611 2,840 16,768 15,000 (1,462) 325,311 Other financing sources(uses): Transfers in - - 9,625 - 10,000 - - 184,681 Transfers out - - - - - (15,000) - (63,307) Net other financing sources(uses) - - 9,625 - 10,000 (15,000) - 121,374 Fund balances,July 1,2021 (as restated) 13,748 (5,635) 18,236 2,840 26,768 - (1,462) 446,685 Fund balances,July 1,2021 5,490 30,117 13,919 52,832 9,183 137,378 923,178 2,276,956 Fund balances,June 30,2022 $ 19,238 $ 24,482 $ 32,155 $ 55,672 $ 35,951 $ 137,378 $ 921,716 $ 2,723,641 (Continued) Schedule 4 (3 of 3) Town of Thomaston, Connecticut Other Governmental Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2022 Capital Projects Fund Permanent Funds Edith Fire Hillside Total Capital Kenea Department Cemetery Total Other Projects Park and Trust Trust Permanent Governmental Fund Tree Fund Fund Fund Funds Funds Revenues: Charges for services $ 8,793 $ - $ - $ 46,735 $ 46,735 $1,664,503 Intergovernmental - - - - - 2,434,116 Contributions 14,538 - - 1,800 1,800 136,922 Income from investments 439 160 81 28,931 29,172 30,253 Net change in fair value of investments - - - (58,163) (58,163) (58,163) Total revenues 23,770 160 81 19,303 19,544 4,207,631 � � Expenditures: � Current: General government - - - - - 11,558 Public safety - - - - - 28,965 Public works - - - - - 1,405,578 Health and welfare - - - 73,205 73,205 79,737 Culture and recreation - - - - - 37,636 Education - - - - - 2,348,737 Capital outlay 23,591 - - - - 23,591 Total expenditures 23,591 - - 73,205 73,205 3,935,802 Excess(deficiency)of revenues over expenditures 179 160 81 (53,902) (53,661) 271,829 Other financing sources (uses): Transfers in 35,608 - - 26,000 26,000 246,289 Transfers out - - - - - (63,307) Net other financing sources(uses) 35,608 - - 26,000 26,000 182,982 Net change in fund balances 35,787 160 81 (27,902) (27,661) 454,811 Fund balances, July 1, 2021 (as restated) 424,778 88,328 18,003 725,582 831,913 3,533,647 Fund balances, June 30, 2022 $460,565 $ 88,488 $ 18,084 $697,680 $804,252 $3,988,458 (Concluded) Schedule 5 Town of Thomaston, Connecticut Sewer Commission Usage Fund Schedule of Sewer Use Charges Receivable For the Year Ended June 30, 2022 Corrections Collections Uncollected Current Adjusted Uncollected Fiscal Balance Year User Charges Use Interest Balance Year July 1, 2021 Charges Additions Deductions Collectible Charges and Liens Total June 30, 2022 2015 $ 593 $ - $ - $ - $ 593 $ 352 $ 496 $ 848 $ 241 2016 692 - - - 692 692 807 1,499 - 2017 2,169 - - - 2,169 1,114 1,236 2,350 1,055 � 2018 8,652 - - - 8,652 4,479 3,772 8,251 4,173 0 c� 2019 16,394 - - 16,394 9,804 4,934 14,738 6,590 2020 26,901 - - 371 26,530 16,364 6,869 23,233 10,166 2021 68,483 - - 372 68,111 37,305 9,272 46,577 30,806 Total Prior Years 123,884 - - 743 123,141 70,110 27,386 97,496 53,031 2022 - 1,380,002 58,115 - 1,438,117 1,298,902 12,246 1,311,148 139,215 Total $ 123,884 $ 1,380,002 $ 58,115 $ 743 $ 1,561,258 $ 1,369,012 $ 39,632 $1,408,644 $ 192,246 Fiduciary Funds Fiduciary Funds Fiduciary funds are used to account for assets held by the Town in a trustee capacity for individuals, private organizations, other governments, and/or other funds. Pension and OPEB Trust Funds Fund Fundin Source Function Pension Trust Fund Contributions Pension benefits for Town and Education non certified employees OPEB Trust Fund Contributions Other post-employment benefits for Town employees Private-Purpose Trust Funds A fiduciary trust fund type used to report all trust arrangements, other than those properly reported in a pension trust fund or investment trust fund, under which principal and income benefit individuals, private organizations, or other governments. Fund Fundin Source Function Leander Smith Award Fund Income from investments Endowment for awarding exceptional teachers $2,000 donation, which will be used Peppie Wagner Fund Income from investments to award $50 annually for an exceptional 8th grade student $1,000 endowment from which the Seth Thomas Prize Fund Income from investments interest is used to award exceptional students Custodial Funds Fund Funding Source Function Volunteer Firemen Award Fund Contributions Investment activity and monies held for volunteer firemen awards Schedule 6 Town of Thomaston, Connecticut Private-Purpose Trust Funds Combining Schedule of Fiduciary Net Position June 30, 2022 Leander Seth Smith Peppie Thomas Award Wagner Prize Fund Fund Fund Total Assets Cash $ - $ 461 $ - $ 461 Investments 5,567 - 1,143 6,710 Total assets 5,567 461 1,143 7,171 Net Position Net position restricted for individuals $ 5,567 $ 461 $ 1,143 $ 7,171 110 Schedule 7 Town of Thomaston, Connecticut Private-Purpose Trust Funds Combining Schedule of Changes in Fiduciary Net Position For the Year Ended June 30, 2022 Leander Seth Smith Peppie Thomas Award Wagner Prize Fund Fund Fund Total Additions: Income from investments $ 13 $ 1 $ 5 $ 19 Deductions: Awards 200 200 - 400 Changes in net position (187) (199) 5 (381) Net position, July 1, 2021 5,754 660 1,138 7,552 Net position, June 30, 2022 $ 5,567 $ 461 $ 1,143 $ 7,171 111 Statistical Section This part of the Town'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 Town's overall financial health. Table Description These schedules contain trend information to help the reader Financial Trend (Tables 1-4) understand how the Town's financial performance and well- being have changed over time. These schedules contain information to help the reader Revenue Capacity (Tables 5-7) assess the Town's most significant local revenue source, the property tax. These schedules present information to help the reader Debt Capacity (Tables 8-11) assess the affordability of the Town's current levels of outstanding debt and the Town's ability to issue additional debt in the future. Demographic and Economic These schedules offer demographic and economic indicators Information (Tables 12-14) to help the reader understand the environment within which the Town's financial activities take place. These schedules contain service and infrastructure data to Operating Information (Tables 15-16) help the reader understand how the information in the Town's financial report relates to the services the Town 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 fiscal year. Table 1 Town of Thomaston,Connecticut Governmental Activities Net Position by Component Last Ten Years (Unaudited) June 30 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 (as restated) Net investment in capital assets $ 44,894,704 $ 43,029,812 $ 37,728,275 $ 39,632,659 $ 38,688,922 $ 32,655,352 $ 38,387,002 $ 35,802,178 $ 32,848,325 $ 32,134,289 Restricted for: Endowments: Nonexpendable 65,700 65,700 65,700 65,700 65,700 65,700 65,700 95,700 95,700 95,700 Expendable 40,872 40,631 40,643 39,579 37,525 42,860 42,860 13,170 13,502 13,329 Perpetual care: Nonexpendable 104,500 104,500 104,500 104,500 104,500 104,500 104,500 104,500 104,500 104,500 Expendable 71,570 71,570 71,570 71,570 71,570 71,570 71,570 71,570 71,570 71,570 Construction contracts 198,525 4,047,493 - - - - - - - - Housing and rehabilitation 921,716 923,178 936,300 950,170 73,768 - 195,991 169,072 183,242 317,089 Public safety 24,482 30,117 25,035 21,403 29,411 - - - 38,365 58,365 Sewer operations 317,319 310,711 275,305 144,282 221,057 206,985 185,494 130,651 177,277 173,322 � Education 369,731 154,325 162,080 198,659 152,036 99,382 46,131 - - - N Library 19,238 5,490 8,374 13,574 18,304 9,860 15,397 - - - Other 10,484 11,408 13,685 16,834 10,991 7,272 7,744 47,158 25,960 25,909 Unrestricted (9,668,296) (18,031,188) (14,839,659) (22,451,889) (26,102,210) (19,669,339) (6,562,121) (3,630,183) (2,296,658) 1,418,992 Total net position $ 37,370,545 $ 30,763,747 $ 24,591,808 $ 18,807,041 $ 13,371,574 $ 13,594,142 $ 32,560,268 $ 32,803,816 $ 31,261,783 $ 34,413,065 Source:Current and prior financial statements. Table 2 Town of Thomaston,Connecticut Governmental Activities Changes in Net Position Last Ten Years (Unaudited) For the Year Ended June 30 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 (as restated) Expenses: General government $ 2,018,673 $ 1,231,754 $ 781,152 $ 1,009,995 $ 1,509,908 $ 1,417,618 $ 1,417,021 $ 1,468,054 $ 1,662,601 $ 1,718,977 Publicsafety 3,404,236 3,082,932 1,910,201 2,100,352 3,716,219 3,558,258 3,326,695 3,164,883 2,817,840 2,531,191 Publicworks 5,102,672 4,597,714 3,474,517 3,697,513 5,217,983 5,126,370 4,781,865 4,907,857 4,523,074 4,590,427 Health and welfare 217,936 213,994 195,350 174,134 233,960 222,395 209,795 203,022 189,646 142,874 Culture and recreation 911,789 981,339 773,464 678,631 1,098,082 1,015,466 1,084,776 1,034,470 856,538 873,818 Housing and development 313,049 297,236 296,520 249,609 276,818 544,178 787,911 460,058 384,582 255,635 Education 20,289,887 19,599,685 19,440,731 19,180,664 19,875,111 19,401,777 18,527,836 17,988,363 17,715,754 18,236,951 Interest 464,456 732,829 709,646 882,574 647,763 750,391 703,177 675,831 778,821 695,454 Total expenses 32,722,698 30,737,483 27,581,581 27,973,472 32,575,844 32,036,453 30,839,076 29,902,538 28,928,856 29,045,327 Program revenues: Charges for services: General government 239,950 248,467 203,273 188,285 150,294 153,730 145,299 149,298 143,897 132,663 � Public safety 360,696 260,540 160,575 194,083 300,032 203,715 219,899 243,508 158,884 144,636 W Publicworks 1,581,158 1,504,333 1,475,119 1,434,453 1,345,075 1,363,837 1,378,548 1,314,456 1,216,145 1,207,400 Health and welfare - - - - 209 859 723 473 444 596 Culture and recreation 31,730 9,181 43,433 48,830 41,976 62,326 61,159 54,212 50,645 55,195 Housing and development 100,921 87,790 90,344 94,449 60,709 61,176 78,967 68,995 69,425 57,044 Education 120,517 43,185 127,594 180,492 184,912 205,641 189,665 188,604 213,589 221,288 Operating grants and contributions 9,950,822 9,560,177 9,269,644 9,681,796 9,207,222 9,596,263 8,923,066 8,450,907 8,781,136 9,515,488 Capital grants and contributions 5,037,216 3,460,998 348,717 838,130 540,038 115,622 605,945 2,230,932 655,034 299,942 Total program revenues 17,423,010 15,174,671 11,718,699 12,660,518 11,830,467 11,763,169 11,603,271 12,701,385 11,289,199 11,634,252 Net expenses (15,299,688) (15,562,812) (15,862,882) (15,312,954) (20,745,377) (20,273,284) (19,235,805) (17,201,153) (17,639,657) (17,411,075) General revenues: Property taxes 21,374,951 21,095,405 20,896,033 20,081,678 19,473,610 18,906,623 18,347,627 18,156,595 18,118,289 17,679,388 Grants and contributions not restricted to specific programs 458,426 473,207 469,655 453,192 562,109 680,052 516,623 521,843 517,874 509,956 Income from investments 6,666 141,581 99,198 167,124 134,586 86,423 62,240 34,434 64,153 47,706 Other 66,443 24,558 48,047 46,427 88,936 56,172 65,734 30,314 31,362 71,174 Total general revenues 21,906,486 21,734,751 21,512,933 20,748,421 20,259,241 19,729,270 18,992,224 18,743,186 18,731,678 18,308,224 Change in net position $ 6,606,798 $ 6,171,939 $ 5,650,051 $ 5,435,467 $ (486,136) $ (544,014) $ (243,581) $ 1,542,033 $ 1,092,021 $ 897,149 Source:Current and prior financial statements. Table 3 Town of Thomaston,Connecticut Governmental Funds Fund Balances Last Ten Years (Modified Accrual Basis of Accounting) (Unaudited) June 30 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 (as restated) General fund: Assigned $ 200,000 $ 186,561 $ - $ 140,000 $ 100,000 $ 675,000 $ 102,266 $ 160,000 $ 250,000 $ 315,000 Unassigned 5,906,570 5,503,803 5,038,365 4,200,492 3,502,786 2,956,906 3,340,323 3,007,183 2,890,109 2,701,438 Total general fund 6,106,570 5,690,364 5,038,365 4,340,492 3,602,786 3,631,906 3,442,589 3,167,183 3,140,109 3,016,438 All other governmental funds: Nonspendable 170,200 170,200 170,200 170,200 1,051,114 170,200 170,200 1,050,267 1,279,423 1,305,819 Restricted 1,973,937 5,594,923 1,667,708 1,456,071 614,662 1,393,058 1,361,668 531,621 509,916 659,584 Committed 2,059,617 2,947,627 1,576,672 1,637,755 1,560,187 1,210,838 1,016,604 1,037,766 930,964 2,520,150 Assigned 1,073,402 625,779 819,460 1,061,834 921,708 916,931 1,259,874 1,380,309 1,086,043 1,179,720 � Unassigned (3,074,972) (7,147,324) (398,959) (690,113) (5,481) (2,274,592) (494,329) - (109,805) (2,505,405) � � Total all other governmental funds 2,202,184 2,191,205 3,835,081 3,635,747 4,142,190 1,416,435 3,314,017 3,999,963 3,696,541 3,159,868 Total $ 8,308,754 $7,881,569 $8,873,446 $7,976,239 $7,744,976 $5,048,341 $6,756,606 $7,167,146 $6,836,650 $6,176,306 Source:Current and prior financial statements. Notes: General fund: Unassigned Increased due to positive operations offset by an increase in assigned fund balance for subsequent year's budget All other governmental funds: Restricted Decrease in restrictions for construction contracts Assigned Increased due to positive operations of the debt service fund Unassigned Increased due to the decrease in restricted fund balance Table 4 Town of Thomaston,Connecticut Governmental Funds Changes in Fund Balances Last Ten Years (Unaudited) For the Year Ended June 30 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 (as restated) Revenues: Propertytaxes $ 21,401,555 $ 21,145,103 $ 20,826,558 $ 20,033,981 $ 19,357,281 $ 18,880,582 $ 18,477,767 $ 18,337,484 $ 18,134,271 $ 17,943,306 Chargesforservices 2,365,810 2,168,963 2,120,672 2,154,081 2,071,836 2,143,933 2,140,092 2,064,253 1,864,263 1,826,482 Intergovernmental 15,301,232 13,317,913 9,886,147 10,864,252 10,156,081 10,451,748 10,053,041 11,090,040 10,023,755 9,815,369 Contributions 145,232 176,469 201,869 250,129 299,456 91,089 148,692 275,701 109,013 684,800 Income from investments 64,829 49,062 100,011 148,405 113,408 55,553 28,086 20,924 19,144 47,709 Net change in fair value of investments (58,163) 92,519 (813) 18,719 21,178 30,870 34,154 13,510 45,009 - Other 31,443 24,558 48,047 46,427 88,936 55,369 57,426 30,314 31,361 79,912 Total revenues 39,251,938 36,974,587 33,182,491 33,515,994 32,108,176 31,709,144 30,939,258 31,832,226 30,226,816 30,397,578 Expenditures: Current: General government 3,906,121 3,725,907 3,727,824 3,740,840 3,873,266 3,814,056 3,678,660 3,737,170 3,517,321 3,412,749 Publicsafety 2,102,622 2,046,847 1,832,090 1,861,910 1,703,190 1,768,195 1,626,723 1,618,411 1,562,456 1,506,881 Publicworks 3,628,435 3,579,356 3,318,312 3,320,887 3,154,183 3,049,696 2,786,773 2,995,295 3,000,019 2,758,011 Health and welfare 18Q356 182,299 204,070 180,023 174,465 170,466 152,747 153,566 15Q984 126,396 Culture and recreation 535,563 599,869 683,797 542,749 589,386 513,582 541,350 532,772 504,198 502,030 � Housing and development 228,936 201,947 211,570 161,703 152,173 417,337 658,758 319,731 294,715 159,504 � Education 19,501,927 19,137,352 18,617,311 18,424,641 19,007,633 18,394,057 17,368,884 16,903,635 17,181,062 17,361,746 � Debt service: Principal 2,016,838 2,581,380 2,788,717 2,458,000 2,497,191 2,528,909 2,730,826 2,330,597 2,364,762 2,054,987 Interest 816,022 849,798 900,831 782,313 689,533 807,120 729,413 93Q238 824,059 736,859 Capital outlay 6,178,487 5,493,788 1,932,020 2,787,469 5,487,777 2,007,611 1,176,861 2,399,439 6,258,365 5,842,077 Total expenditures 39,095,307 38,398,543 34,216,542 34,260,535 37,328,797 33,471,029 31,450,995 31,920,854 35,657,941 34,461,240 Excess(deficiency)of revenues ovei expenditures 156,631 (1,423,956) (1,034,051) (744,541) (5,220,621) (1,761,885) (511,737) (88,628) (5,431,125) (4,063,662) Other financing sources(uses): Issuance of notes 48,397 432,079 - - 33,947 39,758 73,298 - 54,085 127,645 Issuance of bonds(BANS) - - 1,647,217 795,000 7,620,000 - - - 6,025,000 6,735,000 Issuance of refunding bonds 4,300,000 - 3,750,000 - - - - 6,455,000 - - Payment to refunding bond escrow ageM (4,854,501) - (4,378,450) - - - - (6,654,127) - - Premium 741,658 - 777,775 168,134 - 13,059 19,591 618,251 12,384 218,178 Sale of capital assets 35,000 - - 12,670 - 803 8,308 - - - Transfers in 4,258,662 4,346,354 4,118,313 3,702,209 3,428,503 3,410,476 3,727,326 3,843,788 3,679,843 3,247,341 Transfersout (4,258,662) (4,346,354) (4,118,313) (3,702,209) (3,428,503) (3,410,476) (3,727,326) (3,843,788) (3,679,843) (3,247,341) Netotherfinancingsources(uses) 27Q554 432,079 1,796,542 975,804 7,653,947 53,620 101,197 419,124 6,091,469 7,080,823 Net change in fund balances $ 427,185 $ (991,877) $ 762,491 $ 231,263 $ 2,433,326 $ (1,708,265) $ (410,540) $ 33Q496 $ 660,344 $ 3,017,161 Debt service as a percentage of noncapital expenditures 8.61% 10.43% 11.43% 10.30% 10.01% 10.55% 11.05% 11.05% 10.85% 9.76% Source:Current and prior financial statements. Table 5 Town of Thomaston,Connecticut Assessed and Estimated Actual Value of Taxable Property Last Ten Years (Unaudited) Real Estate Personal Property Totals Net Ratio of Total Net Personal Assessed Total Year Net Estimated Motor Vehicle Property Total Estimated Net Estimated Value to Total Direct Ended Grand Assessed Actual Assessed Assessed Assessed Actual Assessed Actual Estimated Tax June 30 List Value Value Value Value Value Value Value Value Actual Value Rate 2022 2020 $460,222,110 $657,460,157 $66,226,136 $52,478,123 $118,704,259 $169,577,513 $578,926,369 $827,037,670 70.00% 36.13 2021 2019 457,264,604 653,235,148 61,172,578 53,721,950 114,894,528 164,135,040 572,159,132 817,370,188 70.00% 36.13 2020 2018 454,543,240 649,347,486 60,190,394 49,362,638 109,553,032 156,504,331 564,096,272 805,851,817 70.00% 36.53 2019 2017 453,773,020 648,247,171 58,510,914 39,218,985 97,729,899 139,614,141 551,502,919 787,861,312 70.00% 35.79 2018 � 2016 451,278,920 644,684,171 57,862,428 38,534,860 96,397,288 137,710,411 547,676,208 782,394,582 70.00% 35.05 � � 2017 2015 450,597,961 643,711,373 57,313,798 38,226,764 95,540,562 136,486,517 546,138,523 780,197,890 70.00% 34.07 2016 2014 448,599,342 640,856,203 55,901,286 35,731,216 91,632,502 130,903,574 540,231,844 771,759,777 70.00% 33.63 2015 2013 447,896,489 639,852,127 54,890,395 31,130,613 86,021,008 122,887,154 533,917,497 762,739,281 70.00°/a 33.63 2014 2012 449,149,304 641,641,863 54,777,754 35,497,126 90,274,880 128,964,114 539,424,184 770,605,977 70.00% 33.13 2013 � 2011 449,210,250 641,728,929 53,773,376 35,292,409 89,065,785 127,236,836 538,276,035 768,965,765 70.00% 32.83 Source: Office of Tax Assessor. Note: �Revaluation performed Table 6 Town of Thomaston, Connecticut Principal Property Taxpayers Current Year and Nine Years ago (Unaudited) 2022 2013 Percent of Percent of Net Taxable Net Taxable Taxpayer Assessment Rank Grand List Assessment Rank Grand List Connecticut Light& Power Co. $ 18,731,320 1 3.24°/a $ 7,734,360 1 1.44% Silgon Dispension (formerly Albea/Rexam) 10,754,810 2 1.86°/o 5,978,250 2 1.11% Yankee Gas Services Company 4,167,480 3 0.72°/o 3,355,040 5 0.62% Thomaston Savings Bank 3,926,400 4 0.68°/o 2,988,780 6 0.56% Connecticut Water Company 3,360,950 5 0.58°/o 3,759,900 3 0.70% � � ~ Summit Corp of America 3,026,320 6 0.52°/o 2,711,780 9 0.50% Thomaston Valley Village 3,025,890 7 0.52°/o N/A N/A - GLC Associates One, LLC 2,422,900 8 0.42°/o 2,812,440 8 0.52% DLM Services, LLC 2,317,410 9 0.40% N/A N/A - Stewart EFI Realty, LLC 2,176,200 10 0.38% N/A N/A - Tyler Properties N/A N/A - 3,441,160 4 0.64% Subs Realty N/A N/A - 2,823,820 7 0.52% WL Real Estate Company N/A N/A - 2,170,000 10 0.40% Totals $ 53,909,680 9.32°/o $ 37,775,530 7.01% Net taxable grand list: $578,926,369 $538,276,035 Source: Town Assessor Department. N/A- Not available and/or not applicable Table 7 Town of Thomaston, Connecticut Tax Rates, Levies and Cash Collections Last Ten Years (Unaudited) Total Collections ��)�2) Year Total Grand Total Net Percent of Collections in Percentage Current Ended Tax Rate List of Adjusted Current Tax Current Levy Subsequent Total of Levy Delinquent June 30 in Mills October 1, Tax Levy Collections Collected Years Collections Collected Balance 2022 36.13 2020 $ 21,236,719 $ 21,025,557 99.0% $ - $ 21,025,557 99.0% $211,162 2021 36.13 2019 20,870,266 20,692,205 99.1% 121,095 20,692,205 99.1% 56,966 2020 36.53 2018 20,749,386 20,446,935 98.5% 271,255 20,446,935 98.5% 31,196 2019 35.79 2017 19,894,653 19,626,694 98.7% 240,995 19,626,694 98.7% 26,964 � 2018 * 35.05 2016 19,320,944 19,036,595 98.5% 261,984 19,036,595 98.5% 22,365 � � 2017 34.07 2015 18,744,659 18,537,433 98.9% 189,733 18,537,433 98.9% 17,493 2016 33.63 2014 18,294,050 18,081,176 98.8% 198,970 18,280,146 99.9% 13,904 2015 33.63 2013 18,080,787 17,844,146 98.7% 222,426 18,066,572 99.9% 14,215 2014 33.13 2012 17,879,100 17,614,927 98.5% 246,895 17,861,822 99.9% 17,278 2013 * 32.83 2011 17,645,073 17,364,941 98.4% 271,322 17,636,263 100.0% 8,810 Source: Current and prior financial statements. Notes: (1)There are no overlapping tax rates (2)Tax levy is per$1,000 of the assessed value of taxable property * Revaluation performed Table 8 Town of Thomaston, Connecticut Ratios of Outstanding Debt by Type Last Ten Years (Unaudited) (1) Year General Percentage Ended Obligation of Personal Debt June 30 Bonds Notes Premium Leases Total Income per Capita 2022 $ 17,435,000 $ 1,598,502 $ 348,095 $ 981,763 $ 20,363,360 0.36% $ 2,732 2021 19,735,000 1,746,943 554,750 1,029,792 23,066,485 0.30% 3,061 2020 21,715,000 1,916,244 626,508 - 24,257,752 0.30% 3,096 2019 24,425,000 952,744 697,335 - 26,075,079 0.28% 3,328 � 2018 25,540,000 1,500,744 607,060 - 27,647,804 0.27% 3,516 co 2017 19,860,000 2,023,988 676,512 - 22,560,500 0.33% 2,970 2016 21,850,000 2,523,139 745,964 - 25,119,103 0.29% 3,296 2015 23,985,000 3,045,667 815,417 - 27,846,084 0.24% 3,624 2014 25,545,000 3,651,264 608,756 - 29,805,020 0.22% 3,791 2013 21,290,000 4,191,941 664,948 - 26,146,889 0.25% 3,336 Source: Current and prior financial statements Notes: There is no overlapping debt (1) Includes permanently financed bond anticipation notes Table 9 Town of Thomaston, Connecticut Ratios of General Bonded Debt Outstanding Last Ten Years (Unaudited) General Obligation Debt Outstanding (1) Percentage of Year General Actual Taxable Debt Ended Obligation Value of Per June 30 Bonds Premium Total Property Capita 2022 $ 17,435,000 $ 348,095 $ 17,783,095 2.15% $ 2,386 2021 19,735,000 554,750 20,289,750 2.48% 2,693 2020 21,715,000 626,508 22,341,508 2.77% 2,851 2019 24,425,000 697,335 25,122,335 3.19% 3,206 � N � 2018 25,540,000 607,060 26,147,060 3.34% 3,325 2017 19,860,000 676,512 20,536,512 2.63% 2,704 2016 21,850,000 745,964 22,595,964 2.93% 2,965 2015 23,985,000 815,417 24,800,417 3.25% 3,228 2014 25,545,000 608,756 26,153,756 3.39% 3,327 2013 21,290,000 348,095 21,638,095 2.81% 2,761 Source: Current and prior year financial statements. Notes: (1) Includes permanently financed bond anticipation notes. There is no overlapping debt for the Town. Table 10 Town of Thomaston, Connecticut Schedule of Debt Limitation Connecticut General Statutes, Section 7-374 (b) As of and for the Year Ended June 30, 2022 (Unaudited) Total tax collections (including interest and lien fees)for prior year $ 20,966,783 General Urban Pension Debt Limitation: Purpose Schools Sewers Renewal Deficit 2 1/4 times base $47,175,262 $ - $ - $ - $ - 4 1/2 times base - 94,350,524 - - - 3 3/4 times base - - 78,625,436 - - 3 1/4 times base - - - 68,142,045 - 3 times base - - - - 62,900,349 Total Debt Limitation 47,175,262 94,350,524 78,625,436 68,142,045 62,900,349 Indebtedness: Bonds payable 12,931,786 3,264,533 1,238,681 - - Bond anticipation notes - short-term 6,419,684 385,316 1,350,000 - - Total Indebtedness 19,351,470 3,649,849 2,588,681 - - Debt Limitation in excess of outstanding debt $27,823,792 $90,700,675 $76,036,755 $68,142,045 $ 62,900,349 The total net indebtedness above amounts to: $ 25,590,000 In no event shall total indebtedness exceed seven times the base for debt limitation computation $146,767,481 Source: Current and prior financial statements Note: There is no overlapping debt 121 Table 11 Town of Thomaston, Connecticut Legal Debt Margin Information Last Ten Years (Unaudited) Percentage Year Net Debt Legal of Net Debt Ended Debt Applicable Debt Applicable to June 30 Limit to Limit Margin Limit 2022 $ 146,767,481 $ 25,590,000 $ 121,177,481 17.44% 2021 145,505,136 21,910,000 123,595,136 15.06% 2020 139,930,329 23,735,000 116,195,329 16.96% 2019 134,490,097 24,425,000 110,065,097 18.16% 2018 131,863,949 31,751,390 100,112,559 24.08% 2017 131,863,949 27,377,554 104,486,395 20.76% 2016 127,094,254 24,477,554 103,876,768 19.26% 2015 128,082,052 24,205,284 103,876,768 18.90% 2014 126,610,372 25,993,009 100,617,363 20.53% 2013 125,550,264 24,245,997 101,304,267 19.31% Source: Current and prior financial statements. 122 Table 12 Town of Thomaston, Connecticut Demographic and Economic Statistics Last Ten Years (Unaudited) �2) Year (2) (2) Education (3) (4) Ended (1) Personal Median Level in Years School Unemployment June 30 Population Income Age of Schooling Enrollment Percentage 2022 7,453 $ 67,639 44 High School 37% 846 3.4% Some College 36% 2021 7,535 67,639 44 High School 37% 828 5.7% Some College 36% 2020 7,836 67,639 44 High School 37% 848 8.0% Some College 36% 2019 7,836 65,901 44 High School 37% 845 4.3% Some College 32% N 2018 7,863 65,901 43 High School 37% 875 3.9% c,,> Some College 32% 2017 7,595 67,191 43 High School 37% 897 3.9% Some College 32% 2016 7,621 73,679 44 High School 35% 895 4.9% Some College 36% 2015 7,683 67,426 43 High School 35% 856 4.5% Some College 35% 2014 7,862 64,982 43 High School 35% 941 5.8% Some College 35% 2013 7,838 66,197 44 High School 35% 1,004 8.0% Some College 58% Sources: (1) State of Connecticut, Department of Public Health and Addiction Services (2)Advance CT (3)Thomaston Board of Education (4) Connecticut Labor Department- Research and Statistics Table 13 Town of Thomaston, Connecticut Principal Employers Current Year and Nine Years ago (Unaudited) 2022 2013 Percentage Percentage of Total Town of Total Town Employer Employees Rank Employment Employees Rank Employment Silgon Dispension (formerly Albea/Rexam) 275 1 6% 367 1 9% Thomaston Savings Bank 243 2 5% 166 3 4% Town of Thomaston (including Thomaston Public Schools) 230 3 5% 221 2 5% UniMetal/Quality Rolling & Deburring 138 4 3% 159 4 4% � Stewart Eyelets for Industry, Inc. 117 5 3% 129 6 3% N � Ward Leonard Electric, Inc. 114 6 2% 140 5 3% State of Connecticut* 100 7 2% 100 7 2% Summit Corporation of America 50 8 1% 76 8 2% Stevens Co., Inc. 32 9 1% 42 9 1% WHYCO Chromium, Inc. 30 10 1% 31 10 1% Total 1,329 29% 1,431 34% Total Town Employment 4,593 4,296 Source: Annual Town survey Note: � Company did not respond or information was unavailable, but number of employees in prior years supports ranking Table 14 Town of Thomaston, Connecticut Full-Time Equivalent Employees by Function/Program Last Ten Years (Unaudited) Function/Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General Government: Selectmen 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 Elections 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Treasurer 3.2 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.0 3.0 Tax Collector 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Assessor/Assessment appeals 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.0 1.0 1.0 Town Hall maintenance 1.5 1.3 1.3 1.3 1.4 1.3 1.3 1.5 1.5 1.4 Town Clerk 1.4 1.4 1.4 1.4 1.6 1.7 1.7 1.7 1.7 1.5 Public Safety: Police officers 14.6 15.7 15.7 12.7 13.0 13.5 13.3 13.1 13.4 11.6 Dispatch 4.8 4.7 4.9 4.9 5.0 4.5 4.8 4.9 4.5 4.8 � Fire Marshal 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 ry Animal control 1.0 1.0 1.0 1.0 1.1 1.1 1.1 1.1 1.1 1.2 cn Public Works: Highway 9.0 8.6 8.4 8.7 8.6 7.2 8.0 7.0 7.0 8.0 Solid waste and recycling 0.2 0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.2 0.3 Sewer plant 7.0 8.1 7.0 7.0 6.4 7.0 6.0 7.0 7.0 7.0 Hillside Cemetery 2.0 2.0 2.0 2.2 2.0 1.8 1.9 1.8 1.7 1.9 Health and Welfare: Social services 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.0 Minibus 0.5 0.5 0.5 0.4 0.3 0.2 0.4 0.2 0.2 0.4 Veterans administration 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 Culture and Recreation: Recreation 1.0 1.7 1.6 1.6 1.6 1.6 1.8 2.0 1.6 1.6 Public library 5.9 6.1 6.1 6.1 5.9 5.7 6.8 6.1 5.4 6.1 Housing and Development: Housing, land use &development 2.5 2.4 2.3 2.5 2.5 2.3 2.5 2.5 2.1 2.1 Education 168.0 165.0 133.0 135.0 132.0 158.5 141.7 136.5 162.8 163.5 Total 229.6 229.6 196.3 195.9 192.5 216.5 201.5 195.6 219.3 220.0 Source: Town and Education payroll data. Table 15 Town of Thomaston,Connecticut Operating Indicators by Function/Program Last Ten Years (Unaudited) Function/Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Public Safety: Fire: Emergencyresponses 339 323 286 304 336 298 270 265 239 266 Fires extinguished 27 47 37 27 29 30 38 39 26 17 Police: Incidents 30,121 35,004 34,098 31,252 35,892 36,136 35,807 39,126 37,715 32,646 Accidents 265 286 252 362 309 296 307 353 347 195 Physical arrests 167 222 131 317 367 380 385 629 565 236 Trafficviolations 462 1,846 1,576 2,014 1,544 1,201 922 898 853 841 Public Works: Street resurfacing(miles) 8.0 0.0 5.0 3.0 0.0 0.0 0.0 3.0 2.0 0.0 Streets rebuilt(miles) 0.0 0.0 0.0 0.0 2.2 0.0 0.0 0.0 0.0 4.86 Parks and Recreation: Athletic field permits issued 56 33 44 41 44 31 38 42 40 41 Number of recreation programs 3 - 31 33 29 29 34 32 34 36 � Health and Welfare: N Number of elderly serviced N/A N/A N/A N/A 98 98 146 109 86 N/A � Number of families serviced N/A N/A N/A N/A 274 274 185 162 150 N/A Number of disabled serviced N/A N/A N/A N/A 82 82 98 87 60 N/A Library: Total print items 38,602 38,886 38,707 38,571 38,982 39,253 39,327 40,285 40,885 40,637 Total non-print items 7,420 7,300 7,320 7,347 7,370 7,102 7,060 6,876 6,291 5,991 Circulation 40,111 40,448 39,459 47,725 52,652 58,218 63,700 70,396 75,418 80,528 Interlibrary borrows 1,876 1,984 1,690 2,328 2,331 2,698 3,497 3,346 3,605 3,537 Interlibrary loans 1,954 2,068 1,740 2,353 2,513 2,068 2,259 2,275 2,427 3,003 Education: Enrollment: High School 363 364 361 376 405 428 408 417 412 438 Middle School 204 199 196 189 190 205 216 206 237 256 Elementary School 279 265 291 280 280 264 271 233 292 310 Total 846 828 848 845 875 897 895 856 941 1,004 Sewer Fund: Average daily sewage treatment(millior gallons) 1.007 0.868 0.920 1.174 0.898 0.810 0.834 0.980 0.989 0.924 Residential customers 2,690 2,758 2,783 2,767 2,679 2,635 2,635 2,635 2,700 2,695 Commercial and industrial customers 133 129 129 131 75 134 131 129 128 130 Manhole repair as part of I/I reduction - 4 7 3 4 - 20 6 9 42 Solid Waste&Recycling: MIRA/CRRA tonnage(annual) 5,412 5,306 4,756 4,623 4,372 2,534 2,400 2,462 2,506 3,069 Sources:Various Town Departments N/A-Data not available Table 16 Town of Thomaston,Connecticut Capital Asset Statistics by Function/Program Last Ten Years (Unaudited) Function/Program 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 General Government: Election voting machines 2 2 2 2 2 2 2 2 2 2 Vehicles 2 1 1 1 1 1 1 1 2 2 Public Safety: Fire and ambulance stations 2 2 2 2 2 2 2 2 2 2 Police stations 1 1 1 1 1 1 1 1 1 1 Police vehicles 11 11 11 11 11 11 11 11 11 8 Fire trucks 4 4 4 4 4 4 4 5 5 7 Ambulances 2 2 2 2 2 2 2 2 2 2 Other emergency vehicles 5 5 5 5 5 5 5 5 6 6 Public Works: Miles of Streets: Paved 41.25 41.25 41.25 41.25 41.25 41.25 41.25 41.25 41.25 41.25 Accepted 41.25 41.25 41.25 41.25 41.25 41.25 41.25 41.25 41.25 41.25 Private 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 State Highway 64.89 64.89 64.89 64.89 64.89 64.89 64.89 64.89 64.89 64.89 Miles of Sidewalks 10.88 10.88 10.88 10.88 10.88 10.88 10.88 10.88 10.88 10.88 � Miles of Sewer: N Storm 95.25 95.25 95.25 95.25 95.25 95.25 95.25 95.25 95.25 95.25 v Sanitation 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 50.50 Dump trucks 9 9 9 9 9 9 10 10 10 10 Other public works vehicles and heavy equipmeni 28 28 28 28 28 28 28 28 28 27 Health and Welfare: Minibus 1 1 1 1 1 1 1 1 1 1 Culture and Recreation: Acres of park land 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 56.0 Hardball baseball diamonds 1 1 1 1 1 1 1 1 1 1 Youth baseball diamonds 5 5 5 5 5 5 5 5 5 5 Basketball courts 1 1 1 1 1 1 1 1 3 3 Soccer fields 3 3 3 3 3 3 3 3 3 3 Nature areas 1 1 1 1 1 1 1 1 1 1 Picnic areas 1 1 1 1 1 1 1 1 1 1 Playgrounds 4 4 4 4 4 4 4 4 7 7 Public beach 1 1 1 1 1 1 1 1 1 1 Public greens 3 3 3 3 3 3 3 3 3 3 Public indoor theatres 1 1 1 1 1 1 1 1 1 1 Public library 1 1 1 1 1 1 1 1 1 1 Tennis courts 6 6 6 6 6 6 6 6 3 3 Tracks 1 1 1 1 1 Education: Number of high schools 1 1 1 1 1 1 1 1 1 1 Number of middle schools 1 1 1 1 1 1 1 1 1 1 Number of elementary schools 1 1 1 1 1 1 1 1 1 1 Sources: Various Town Departments