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2015-02-11 Board of Selectmen Minutes w/documents
BOARD OF SELECTMEN MINUTES February 11, 2015 CALL TO ORDER: Chairman Richard Vaillancourt called the meeting to order at 6:32 PM at Town Hall Meeting Room. ATTENDANCE: The following were present: Chairman Richard Vaillancourt, Clerk William Gordon, Rosemary Smedile, Licensing Chairman Tracy Watson, Town Manager Andrew Maylor and Executive Assistant, Laurie Burzlaff. Approximately 15 people were present in the audience. PLEDGE OF ALLEGIANCE Chairman Vaillancourt announced that, since this is not their regularly scheduled night, the meeting is still being recorded but the live feed will cut off at 7:10 and go over to the Conservation Commission meeting. APPROVAL OF MINUTES: Tracy Watson made a MOTION, seconded by William Gordon, to approve the Open Session Minutes of January 5, 2015. Vote approved 5-0. LICENSING COMMISSIONERS (taken out of order): Rosemary Smedile made a MOTION, seconded by William Gordon, to open a meeting of the North Andover Licensing Commission. Vote approved 5-0. Mukta Shah of Merrimack College requests a One-Day Wine & Malt License for a John Denver Musical Tribute at the Rogers Center on Saturday, February 21, 2015 from 6:00 p.m. to 10:00 p.m. Mukta Shah of Merrimack College requests a One-Day Wine & Malt License for a Ronan Tynan Theatre Show at the Rogers Center on Friday, March 6, 2015 from 6:00 p.m. to 10:00 p.m. Mukta Shah of Merrimack College requests a One-Day Wine & Malt License for a Benny Goodman Tribute at the Rogers Center on Saturday, April 25, 2015 from 6:00 p.m. to 10:00 p.m. Richard Vaillancourt made a MOTION, seconded by William Gordon, that the Board of Selectmen, acting as Licensing Commissioners, approve One-Day Wine & Malt Licenses for Merrimack College for Saturday, February 21, 2015, Friday March 6, 2015 and Saturday,April 25, 2015 from 6:00 p.m, to 10:00 p.m. Vote approved 5-0. Change of Manager-Butcher Boy Donna Yameen was present to address any questions from the Board. Donald Stewart made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen, acting as Licensing Commissioners, approve a Change of Manager for Butcher Boy Market Inc. Vote approved 5-0. 2015 Entertainment License for Smolak Farms John Smolak, attorney for Smolak Farms, reviewed the Accoustical Report prepared by Cavanaugh Tocci Associates, Inc., which was provided to the Board prior to the meeting. Attorney Smolak distributed a "Loudness Comparison Chart (dBA)"which outlined decibel levels for various activities. Attorney Smolak explained that they are installing a speaker system to regulate sound and Cavanaugh Tocci will measure sound levels for the first two events to make sure the system is working properly. Selectman Gordon, while appreciating the steps being taken by Mr. Smolak, expressed his concern about it being louder at higher elevations and asked that the sound levels be measured at the neighbor's property from a second floor window with a handheld device. The Board expressed concern of making approval contingent upon entering upon a neighbor's property. The Board asked Mr. Smolak to come back in front of the Board to give an update of the testing results. William Gordon made a MOTION, seconded by Richard Vaillancourt, that the Board of Selectmen, acting as Licensing Commissioners, approve an entertainment license for 2015 for the period of May 2015 through October 2015 for Smolak Farms located at 315 South Bradford Street, with the following conditions: The hours of operation, as provided by the applicant, Monday thru Thursday between 12:00 p.m, and 7:00 p.m., Friday and Saturday between 12:00 p.m, and 10:00 p.m., and Sunday between 12:00 p.m, and 9:00 p.m., except on Sundays preceding a Monday state or federal Board of Selectmen Minutes February 11, 2015 2 holiday, in which case, the Sunday closing hour is extended to 10:00 p.m., further conditions are those provided in the January 22, 2015 letter from Attorney Smolak and conditions set forth therein with the one modification under Section 4 to include the testing with a decibel meter at the property lines of the 5 neighbors identified in the sound study;and further conditions as carried forward from the 2014 entertainment license that the sound absorbing panels installed last year remain installed on the east and north sides of the tent and testing with an appropriate sound monitoring device at the neighbor's window 20 feet off the ground. Motion denied 1-3-1. Selectman Gordon in favor. Selectman Stewart abstained. William Gordon made a MOTION, seconded by Richard Vaillancourt, that the Board of Selectmen, acting as Licensing Commissioners, approve an entertainment license for 2015 for the period of May 2015 through October 2015 for Smolak Farms located at 315 South Bradford Street, with the following conditions: The hours of operation, as provided by the applicant, Monday thru Thursday between 12:00 p.m, and 7:00 p.m., Friday and Saturday between 12:00 p.m, and 10:00 p.m., and Sunday between 12:00 p.m, and 9:00 p.m., except on Sundays preceding a Monday state or federal holiday, in which case, the Sunday closing hour is extended to 10:00 p.m., further conditions are those provided in the January 22, 2015 letter from Attorney Smolak and conditions set forth therein with the one modification to Section 5 to include "field testing shall take place at the locations identified in Exhibit D of the Accoustical Report with a sound monitoring device'; and further conditions as carried forward from the 2014 entertainment license that the sound absorbing panels installed last year remain installed on the east and north sides of the tent. Vote approved 4-1. Selectman Stewart opposed. William Gordon made a MOTION, seconded by Richard Vaillancourt, to close the meeting of the North Andover Licensing Commission. Vote approved 5-0. William Gordon excused himself from the meeting at 7:25 pm due to a prior commitment. COMMUNICATIONS AND ANNOUNCEMENTS: Safe Routes to School Update Gene Willis, Town Engineer, accompanied by Michael Myers, consultant from TEC, gave the Board an update of what is happening with the Safe Routes to School project. Mr. Willis announced a Public Hearing is scheduled for February 25th at 7:00 p.m. at the Stevens Memorial Library at which time a full presentation will be given of the project. Abbutters were notified by mail of the public hearing. Recognition-Kristen Hollenbeck and Kim Robbins Kim Robbins of French Farm Road explained how the Safe Routes to School initiative came about and acknowledged the coordinated effort over the last 4 years between the Town, Police Department, School Department, and parents. Kristen Hollenbeck of South Bradford Street acknowledged the support of Kristine Karelis, former Middle School PTO President and Judy Tymon, former Town Planner. Ms. Hollenbeck requested the town continue to work with the state to put sidewalks on Route 125. The Board recognized Ms. Hollenbeck and Ms. Robbins for all their work in bringing the Safe Routes to School project to North Andover. Town Manager, Andrew Maylor, commended Judy Tymon and Gene Willis for all their hard work on this project which resulted in North Andover receiving more than $1.5 million in funding to make improvements to the community. FY2014 Audit Report-Powers &Sullivan, LLC (independent auditors) Richard Sullivan, Frank Serretti and Carl Warren from Powers &Sullivan, LLC, the Town's independent auditors, were present. Mr. Sullivan reviewed the audit and its findings. Mr. Sullivan indicated that the Town's unfunded liability (OPEB)decreased because of design changes to employee benefit plans and that the constant building of reserves helped bump the Town's rating to AA+. Mr. Sullivan explained the opinion from auditors is the best the town can get. The opinion indicated no internal control issues, no material weaknesses and no adjustments were requested to be made to general ledger as a result of the audit. Mr. Sullivan indicated the Management Letter contains only 5 comments and they are all either fully resolved or have a plan in place to fix. Mr. Sullivan explained GASB#68, which requires the Town's unfunded liability to be shown on the front of the financial statements next year. Board of Selectmen Minutes February 11, 2015 3 The Board thanked Powers &Sullivan for their work. The Board congratulated the staff, particularly Andrew Maylor and Lyne Savage for their excellent work and indicated the Management Letter was the best they have ever received. FY2015 Six Month Financial Status Report-Lune Savage, Finance Director Finance Director, Lyne Savage, gave the FY2015 six-month financial status report. Ms. Savage indicated the snow and ice budget is at a break-even point but that does not include the latest storm. Ms. Savage explained that by law, the snow and ice budget is the only budget allowed to run a deficit and be carried over to the following year. The Town Manager indicated he does expect the snow budget to be $300,000-$500,000 over budget when the season ends; however, controls have been put in place that allow the Town to make transfers to cover the deficit by the end of the year instead of carrying the expense over to the following year. The Board thanked Ms. Savage for all her great work. PUBLIC COMMENT(taken out of order): Mary Stewart of Prospect Street and Marge Lambert of Prospect Street presented the Board with a petition signed by the seniors to turn up the heat at the Senior Center. The Town Manager indicated the temperature is set at 72 degrees and has been tested in 20 different locations throughout the building. Mrs. Stewart asked for the thermostat be turned up to 76 degrees. Ms. Lambert indicated that less seniors are coming to the Senior Center because it's too cold. The Town Manager agreed to turn the thermostat up one degree and continue to monitor. Sandy Gleed of Prescott Street, spoke with regard to the Smolak Farms license renewal. Ms. Gleed said she can hear events that take place at the Steven's Estate and the High School from her house and is concerned that if the Board tries to set noise level standards for Smolak to meet, the Town will need to also meet those standards, otherwise the Town may be opening itself up to a lawsuit. Chairman Vaillancourt thanked the Department of Public Works, Police Department, Fire Department and Emergency Management for everything they have done during these significant snow storms. Rosemary Smedile indicated the wreaths will come down once DPW is done dealing with the snow. At the request of Paul Quintal, Rosemary Smedile paid tribute to Priscilla Cronin Quintal, who recently passed away. PUBLIC HEARING (taken out of order): National Grid &Verizon New England Joint Pole Petition- Prescott Street(New Fire Station) David Boucher, Senior Designer from National Grid, explained the pole petition for the new Fire Station and indicated wires would be underground but need a new pole to connect to. Tracy Watson made a MOTION, seconded by Rosemary Smedile, to approve National Grid& Verizon New England joint pole petition# 17689177-Prescott Street as presented. Vote approved 4-0. CONSENT ITEMS: Accept donation ($6082)from the Harold A. Dushame Revocable Trust to Fire Department for Honor Guard Uniforms The Harold A. Dushame Revocable Trust generously donated $6082 to the Fire Department for the purchase of 8 new Honor Guard uniforms. Donald Stewart made a MOTION, seconded by Tracy Watson, that the Board of Selectmen accept the donation of$6082 from the Harold A. Dushame Revocable Trust to the Fire Department for the purchase of 8 new Honor Guard uniforms. Vote approved 4-0. Accept donation ($3199.70)from the Harold A. Dushame Revocable Trust to Police Department for Honor Guard Uniforms The Harold A. Dushame Revocable Trust generously donated $3199.70 to the Police Department for the purchase of Honor Guard uniforms. Board of Selectmen Minutes February 11, 2015 4 Donald Stewart made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen accept the donation of$3199.70 from the Harold A. Dushame Revocable Trust to the Police Department for the purchase of Honor Guard uniforms. Vote approved 4-0. Accept donation ($100) from Susan W. Tompkins to Veteran's Services for Outreach Work Susan W. Tompkins generously donated $100 to Veteran's Services for Outreach Work. Tracy Watson made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen accept the donation of$100 from Susan W. Tompkins to Veteran's Services for Outreach Work. Vote approved 4-0. Waiver of Permit Fees for Chemical Storage Tank Project at Water Treatment Plant The Board was asked to approve waiving any and all permit fees for the chemical storage tank project at the Water Treatment Plant. Tracy Watson made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen waive all permit fees for the chemical storage tank project at the Water Treatment Plant. Vote approved 4-0. Waiver of Permit Fees for the Emergency Power Upgrade project at the Water Treatment Plant The Board was asked to approve waiving any and all permit fees for the emergency power upgrade project at the Water Treatment Plant. Tracy Watson made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen waive all permit fees for the emergency power upgrade project at the Water Treatment Plant. Vote approved 4-0. Approval of Conservation Restriction for Maplewood Reserve Pursuant to M.G.L. Chapter 40, Section 8C and Chapter 184, Section 32, the Board was asked to approve and sign a Conservation Restriction for Maplewood Reserve, a 40B subdivision on Route 114 near the Middleton Line. Tracy Watson made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen, pursuant to Massachusetts General Laws, Chapter 40, Section 8C and Chapter 184, Section 32, approve and sign the Conservation Restriction for Maplewood Reserve. Vote approved 4-0. Appointment to Cultural Council-Dianne Hinckley The Town Manager recommended Dianne Hinckley be appointed to the Cultural Council for a term ending June 30, 2017. Tracy Watson made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen appoint Dianne Hinckley to the Cultural Council for a term ending June 30, 2017. Vote approved 4- 0. OLD BUSINESS: None NEW BUSINESS: None TOWN MANAGER'S REPORT: `Ask the Manager' No questions submitted. The Town Manager announced the Family Skate Night scheduled for Friday, February 13th at the Youth Center has been canceled due to the weather. The Town Manager informed the Board that he will be providing them with his recommended budget by the end of the week and that the School Committee already voted to support a 3.5% increase to the school department budget. Fire Department-December 2014 and 2014 Full Year Activity Reports The Board was provided with summaries of the December 2014 and 2014 Full Year Activity Reports provided by the Fire Department. Board of Selectmen Minutes February 11, 2015 5 Police Department-December 2014 Crime Statistics The Board was provided with a summary of the December 2014 crime statistics provided by Police Chief Paul Gallagher. Job Posting/Vacancy Log The Board was provided with a `Job Posting/Vacancy Log'from the Human Resources Department. NEXT MEETING DATE: February 23, 2015 ADJOURNMENT: Rosemary Smedile made a MOTION, seconded by Tracy Watson, to adjourn the meeting at 8:26 p.m. Vote approved 4-0. Laurie A. Burzlaff Executive Assistant William F. Gordon, Clerk of the Board Documents supporting the minutes attached. TOWN OF NORTH ANDOVER BOARD OF SELECTMEN 120 MAIN STREET NORTH ANDOVER, MASSACIH[JSETTS 01845 Richard M. Vaillancourt, C:hainiian William F. Gordon TEL. (978)688-9510 Rosemary Connelly Smedile FAX(978)688-9556 Donald B. Stewart Tracy M. Watson BOARD OF SELECTMEN& LICENSING COMMISSIONERS AGENDA MONDAY,FEBRUARY 11,2015 at 6:30 PM TOWN HALL MEETING ROOM L CALL TO ORDER IL PLEDGE OF ALLEGIANCE III. APPROVAL OF MINUTES A. January 5,2015 Open Session Minutes,as written IV. COMMUNICATIONS AND ANNOUNCEMENTS A. Update on Safe Routes to School-Gene Willis B. Recognition-Kristen Hollenbeck and Kim Robbins for Safe Routes to School grant C. FY2014 Audit Report-Powers&Sullivan,LLC(independent auditors) D. FY2015 Six Month Financial Status Report-Lyne Savage,Finance Director V. CONSENT ITEMS A. Accept donation($6,082)from the Harold A.Dushame Revocable Trust to Fire Department for Honor Guard Uniforms B. Accept donation($3199.70)from the Harold A.Dushame Revocable Trust to Police Department for Honor Guard Uniforms C. Accept donation($100)from Susan W. Tompkins to Veteran's Services for Outreach Work D. Waiver of permit fees for chemical storage tank project at Water Treatment Plant E. Waiver of permit fees for emergency power upgrade project at Water Treatment Plant F. Approval of Conservation Restriction for Maplewood Reserve G. Appointment to Cultural Council—Dianne Hinckley VL LICENSING COMMISSIONERS A. Mukta Shah of Merrimack College requests a One Day Wine&Malt license for a John Denver Musical Tribute on Saturday,February 21,2015 at the Rogers Center from 6:00 pm to 10:00 pm B. Mukta Shah of Merrimack College requests a One Day Wine&Malt license for a Ronan Tynan Theatre Show on March 6,2015 at the Rogers Center from 6:00 pm to 10:00 pm C. Mukta Shah of Merrimack College requests a One Day Wine&Malt license for a Benny Goodman Tribute on April 25,2015 at the Rogers Center from 6:00 p.m.to 10:00 p.m. D. Change of Manager-Butcher Boy E. 2015 Entertainment License for Smolak Farms VII. PUBLIC HEARING A. National Grid&Verizon New England Joint Pole Petition—Prescott Street(New Fire Station) VIII. OLD BUSINESS IX. NEW BUSINESS X. PUBLIC COMMENT XL TOWN MANAGER'S REPORT A. "Ask the Manager" B. Fire Department-December 2014 and 2014 Full Year Activity Reports C. Police Department-December 2014 Crime Statistics D. Job PostingNacancy Log XIL NEXT MEETING DATE Monday,February 23,2015 XIIL ADJOURNMENT Approval of Minutes' BOARD OF SELECTMEN MINUTES January 5, 2015 CALL TO ORDER: Chairman Richard Vaillancourt called the meeting to order at 7:00 PM at Town Hall Meeting Room. ATTENDANCE: The following were present: Chairman Richard Vaillancourt, Clerk William Gordon, Rosemary Smedile, Licensing Chairman Tracy Watson, Town Manager Andrew Maylor, Assistant Town Manager Ray Santilli and Executive Assistant, Laurie Burzlaff. j PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES: William Gordon made a MOTION,seconded by Tracy Watson, to approve the Open Session Minutes of December 15, 2014. Vote approved 4-0. Tracy Watson made a MOTION, seconded by Richard Vaillancourt, to approve the Open Session Minutes of December 30, 2014. Vote approved 2-0-2. William Gordon and Rosemary Smedile abstained. COMMUNICATIONS AND ANNOUNCEMENTS: Government Finance Officers Association Distinguished Budget Presentation Award Town Manager, Andrew Maylor, announced the Town of North Andover was awarded the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award, the highest form of recognition in governmental budgeting. Mr. Maylor explained the GFOA format which the town adopted a couple of years ago and acknowledged the great work of Finance Director/Town Accountant, Lyne Savage. Mr. Maylor stated that 15-17 government entities receive this award out of the approximately 400 that are eligible to receive it. The Board congratulated Ms Savage and her staff. Town Manager, Andrew Maylor, stated that Donald Stewart is absent due to illness. Assistant Town Manager, Ray Santilli, announced on Saturday, January 24th there will be a free family skating event at the Youth Center and residents should'check the website for more information. The Board thanked Peter Breen and Downer Brothers Landscaping for donating the liner for the rink. Tracy Watson announced the North Andover High School swim team had a successful polar plunge at Steven's Pond on New Year's Day. NEW BUSINESS: (taken out of order) Discussion of priorities for the upcoming state budget State Representative James Lyons was present to discuss the town's priorities as it relates to the state budget. Representative Lyons handed out a document entitled "State Budget Overview" along with a chart of local aid numbers from FY2009-FY2015. The Board indicated one of the highest priorities for them is to address the heroin epidemic in our area. Town Manager, Andrew Maylor, stated the Board has indicated retirement reform and prevailing wage reform as priorities for the legislature. Additionally, the Board would like to see a more direct focus on Special Education and Circuit Breaker funding, and a review of the Chapter 70 formula. Chair Vaillancourt stated help with Route 125 is another item and he would work with the Town Manager to get a letter to North Andover's legislative delegation in the next couple of weeks. The Board thanked Representative Lyons for the work he has done for the Town. CONSENT ITEMS: Acceptance of Donation ($100) from James and Maria Rosati to Police Department Chair Vaillancourt stated that James and Maria Rosati have generously continued their annual donation to the Police Department in the amount of$100. As the donation was not specifically designated, Chief Gallagher recommends it be used towards any needed service or materials the Department may require. The Board thanked Mr. & Mrs. Rosati for their donation. William Gordon made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen accept the donation from James and Maria Rosati of$100 to the Police Department for any needed service or materials the Department may require. Vote approved 4-0. Board of Selectmen Minutes January 5, 2015 2 Acceptance of Donation ($6390) from Joseph N. Hermann Youth Center, Inc. to Youth and Recreation Services for Youth Center Scholarships Chairman Vaillancourt announced the Joseph N. Hermann Youth Center, Inc. has generously made their annual donation to the Youth and Recreation Services in the amount of$6390 to be used for Youth Center Scholarships. The Board thanked the Joseph N. Hermann Youth Center Inc. for their donation. William Gordon made a MOTION, seconded by Tracy Watson that the Board of Selectmen accept the donation from Joseph N. Hermann Youth Center Inc. to Youth and Recreation Services for Youth Center scholarships. Vote approved 4-0. Acceptance of Donation ($500)from Elizabeth Armstrong to the Fire Department Chairman Vaillancourt announced that once again, Elizabeth Armstrong, has generously donated $500 to the Fire Department in support of the Emergency Response Team. The Board thanked Mrs. Armstrong for her donation. William Gordon made a MOTION, seconded by Rosemary Smedile that the Board of Selectmen accept the donation from Elizabeth Armstrong of$500 to the Fire Department in support of the Emergency Response Team. Vote approved 4-0. Acceptance of Donation ($25) from Chandra and Usha Prakash to Police Department Chairman Vaillancourt announced that Chandra and Usha Prakash have generously donated $25 to the Police Department and since the donation was not specifically designated, Chief Gallagher recommends it be used towards any needed service or material the Department may require. William Gordon made a MOTION, seconded by Rosemary Smedile that the Board of Selectmen accept the donation from Chandra and Usha Prakash of$25 to the Police Department for any needed service or materials the department may require. Vote approved 4-0. The Board offered their condolences to the Leland family. Mr. Leland, who was so generous to the town with many donations over the years, passed away recently. Request to dispose of Surplus Items-IT Department The Board received a copy of a memo from IT Director, Matt Killen, requesting two obsolete desktop computers be approved for disposal. Tracy Watson made a MOTION, seconded by William Gordon, that the Board of Selectmen approve the request of IT Director, Matt Killen, to dispose of surplus computer equipment per his memo to the Town Manager dated December 23, 2014. Vote approved 4-0. Appointment of Veterans' Graves Officer-Neil Patnaude Clerk, William Gordon, read a letter from Chief Edward V. Mitchell indicating Veteran's Graves Officer Philip P. Pelletier has resigned and he is recommending appointment of Army Veteran Neil Patnaude as North Andover's Veterans' Graves Officer. The Board thanked Philip Pelletier for his valuable service. William Gordon made a MOTION, seconded by Tracy Watson, that the Board of Selectmen appoint Neil Patnaude as Veterans'Graves Officer for a term ending June 30, 2017. Vote approved 4-0. Designation of Finance Director, Lyne Savage, as person with authority to receive forfeiture funds and other assets pursuant to G.L. ch. 94C, Section 47 The Board was provided with a letter from Town Counsel, Thomas Urbelis, recommending the Board vote, pursuant to M.G.L. ch. 94C, Section 47 and other applicable law, to designate Lyne Savage as the person who has authority to receive forfeiture funds and other assets. William Gordon made a MOTION, seconded by Tracy Watson, that the Board of Selectmen appoint Finance Director, Lyne Savage, as the person who has the authority to receive forfeiture funds and other assets pursuant to M.G.L. ch. 94C, Section 47. Vote approved 4-0. Town Manager's Annual Evaluation Chairman Vaillancourt presented the Board's annual evaluation of the Town Manager. Chair Vaillancourt indicated Mr. Maylor received a rating of 19.3 out of 20 and indicated the evaluation reflects the confidence the Board has in Mr. Maylor's ability to lead the town. Chairman Vaillancourt said the Board of Selectmen Minutes January 5, 2015 3 evaluation document will be posted on the Town's website. Tracy Watson indicated she was proud to be on the hiring committee and everyday Mr. Maylor proves he was the right choice. William Gordon praised the Town Manager for doing a good job. Rosemary Smedile praised Mr. Maylor for his ability to have a plan and follow through on it. Mrs. Smedile indicated that goals are being met and the future is bright. Mr. Maylor stated it is his pleasure to work in North Andover and he appreciates the support of the Board and the trust they have given him. William Gordon made a MOTION, seconded by Rosemary Smedile, that the Board of Selectmen approve Town Manager Andrew Maylor's annual performance evaluation. Vote approved 4-0. OLD BUSINESS: None PUBLIC COMMENT: Stan Limpert of 43 Stonecleave Road, reminded everyone that the new superintendent will be at the Stevens Memorial Library on Thursday at 10:00 a.m. to meet the public. Mr. Limpert also praised the Town Manager for his leadership, particularly his work with employee health insurance, the Facilities Master Plan and the budgeting process. TOWN MANAGER'S REPORT: 'Ask the Manager' No questions were submitted. The Board reminded the public that anyone can submit a question to the Town Manager by emailing townmanager @townofnorthandover.com The Town Manager reported that they have begun the deliberative process with the Finance Committee relative to the Capital Plan. Mr. Maylor and Mr. Santilli will be at the Finance Committee meeting on Wednesday, which will be televised, to review the Capital Plan and give an overview of the ESCo project. Over the next couple of weeks the Finance Committee will review the Capital Plan and meet with departments heads. Mr. Maylor indicated that there are 1030 followers for the town manager's Twitter account and he is hoping to reach 2000. NEXT MEETING DATE: January 26, 2015. ADJOURNMENT: William Gordon made a MOTION, seconded by Tracy Watson, to adjourn the meeting at 7:50 p.m. Vote approved 4-0. Laurie A. Burzlaff Executive Assistant William F. Gordon, Clerk of the Board Communications And Announcements 1(f-40( Certificate of Appreciation Presented to Kristen Hollenbeck In sincere appreciation for volunteering your time in researching and writing the proposal for the Safe Routes to School grant and performing all the prerequisite work to qualify North Andover for funding. Your dedication and hard work are a true credit to you and the community. Thank you on behalf of the all of the residents of the Town of North Andover. Presented by the North Andover Board of Selectmen v. 9 January 26, 2015 f y r, Richard M. Vaillancourt, Chairman Certificate of Appreciation Presented to Ki'm Robbins In sincere appreciation for volunteering your time in researching and writing the proposal for the Safe Routes to School grant and performing all the prerequisite work to qualify North Andover for funding. Your dedication and hard work are a true credit to you and the community. Thank you on behalf of the all of the residents of the Town of North Andover. Presented by the North Andover Board of Selectmen January 26 2015 r d Richard M. Vaillancourt, Chairman A TOWN OF NORTH ANDOVER MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2014 �'� 1���+� I„��.,....; � %�'.� -*, ',r,d i „G�. � i�� ��J�r An�ll,jl��I/,, �' �- ',� � ��,��.,.....�M, � - i i�lll�',,���rii „%r L61�✓F��/�-.. � AUi� wt Ju(� f �+ _ -�, � f j •+aaYif��, JnP�tr�t���� i � Noma Ancl¢n er Ctntra]Fire Statim Board of Selectmen Town Manager A I 0 s rr wrp uuuu I Front row:Rosemary C.Smedile,Andrew Maylor('town Mgr),Tracy M.Watson Back row:Richard M.Vaillancourt,William F.Gordon,Donald B.Stewart TOWN OF NORTH ANDOVER, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT For the Year Ended June 30, 2014 // r. Prepared by: Lyne M. Savage, Finance Director/Town Accountant TOWN OF NORTH ANDOVER, MASSACHUSETTS COMPREHENSIVE ANNUAL FINANCIAL REPORT JUNE 30, 2014 TABLE OF CONTENTS IntroductorySection.........................................................................................................................................................1 Letterof transmittal ......................................................................................................................................................3 Organizationalchart.....................................................................................................................................................8 Principaltown officials..................................................................................................................................................9 Certificate of achievement for excellence in financial reporting.................................................................................10 FinancialSection ...........................................................................................................................................................11 Independent auditor's report......................................................................................................................................13 Management's discussion and analysis ....................................................................................................................15 Basic financial statements .........................................................................................................................................24 Statementof net position........................................................................................................................................25 Statementof activities............................................................................................................................................26 Governmental funds— balance sheet....................................................................................................................28 Reconciliation of the governmental funds balance sheet total fund balances to the statement of net position.....29 Governmental funds—statement of revenues, expenditures and changes in fund balances ...............................30 Reconciliation of the statement of revenues, expenditures, and changes in fund balances of governmental funds to the statement of activities.........................................................................................................................31 Proprietary funds—statement of net position.........................................................................................................32 Proprietary funds—statement of revenues, expenses and changes in net position..............................................33 Proprietary funds—statement of cash flows..........................................................................................................34 Fiduciary funds—statement of fiduciary net position.............................................................................................35 Fiduciary funds—statement of changes in fiduciary net position...........................................................................36 Notes to basic financial statements........................................................................................................................37 Required supplementary information.........................................................................................................................63 Retirement system schedules................................................................................................................................66 Retirement system schedule of funding progress..............................................................................................67 Retirement system schedule of employer contributions.....................................................................................68 Other postemployment benefit plan schedules......................................................................................................69 Other postemployment benefit plan schedule of funding progress and schedule of employer contributions....70 Other postemployment benefit plan actuarial methods and assumptions..........................................................71 Notes to required supplementary information ........................................................................................................72 Combining and individual fund statements................................................................................................................75 Nonmajor governmental funds...............................................................................................................................76 Nonmajor governmental funds—combining balance sheet...............................................................................78 Nonmajor governmental funds—combining statement of revenues, expenditures, and changes in fund balances .............................................................................................................................................................82 Agencyfund ...........................................................................................................................................................85 Agency fund—statement of changes in assets and liabilities............................................................................86 StatisticalSection ..........................................................................................................................................................87 Net position by component—last ten years...............................................................................................................88 Changes in net position — last ten years....................................................................................................................89 Fund balances, governmental funds—last ten years................................................................................................91 Changes in fund balances, governmental funds— last ten years..............................................................................92 Assessed value and actual value of taxable property by classification and tax rates—last ten years......................93 Principal taxpayers—current year and nine years ago .............................................................................................94 Property tax levies and collections—last ten years...................................................................................................95 Ratios of outstanding debt and general bonded debt—last ten years ......................................................................96 Direct and overlapping governmental activities debt—as of June 30, 2014. ............................................................97 Computation of legal debt margin — last ten years ....................................................................................................98 Demographic and economic statistics— last ten years..............................................................................................99 Principal employers (excluding Town)—current year and nine years ago..............................................................100 Full-time equivalent Town employees— last ten years............................................................................................101 Operating indicators by function/program— last ten years......................................................................................102 Capital asset statistics by function/program— last ten years...................................................................................104 AdditionalInformation..................................................................................................................................................105 Enterprise funds—schedule of revenues, expenses and changes in net position — budgetary basis— budgetand actual ....................................................................................................................................................106 Introductory Section North Andover Lake Cochichewick Introductory Section Town of North Andover, Massachusetts 1 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 2 Comprehensive Annual Financial Report Town of North Andover 120 Main Street North Andover, Massachusetts 01845 M x (978) 688-9523 FAX (978) 688-9522 Letter of Transmittal December 1, 2014 To Members of the Board of Selectmen and Citizens of the Town of North Andover: At the close of each fiscal year, state law requires the Town of North Andover to publish a complete set of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP), and that are audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report (CAFR)of the Town of North Andover, Massachusetts, for the fiscal year ending 2014 for your review. This report consists of management's representations concerning the finances of the Town of North Andover. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the Town of North Andover 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 North Andover's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the Town of North Andover's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements for the fiscal year ended June 30, 2014, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The Town of North Andover's financial statements have been audited by Powers &Sullivan, LLC, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of North Andover for the fiscal year ended June 30, 2014 are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the Town of North Andover's financial statements for the fiscal year ended June 30, 2014, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the Town of North Andover was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal Town of North Andover, Massachusetts 3 Comprehensive Annual Financial Report requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the Town of North Andover's separately issued Single Audit Report. GAAP requires 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 that analysis and should be read in conjunction with it. The Town of North Andover's MD&A can be found immediately following the report of the independent auditors. Profile of the Town The Town of North Andover is located in Essex County, approximately 24 miles north of Boston. The Town is 26.63 square miles and lies along the banks of the Merrimack River and is surrounded by the Towns of Boxford, Andover, Middleton, North Reading, and the Cities of Lawrence, Methuen and Haverhill. The settlement of the Town began in 1640 and was incorporated as Andover in 1646. The community was split into the North Parish (now North Andover) and South Parish (now Andover) in 1709 and North Andover was incorporated as a separate entity in 1855. North Andover is governed by an open Town Meeting form of government, a five-member Board of Selectmen and a Town Manager pursuant to a Home Rule Charter that went into effect in 1986. Although North Andover contains several Commercial Office Parks, the Town has retained a rural character and contains over 3,000 acres of preserved open space and farmland. North Andover is served by the following interstates: Route 495, Route 125, Route 133 and Route 114. North Andover is a thriving community with an excellent school system, efficient services and a strong commitment to its citizens. As of the 2010 U.S Census the Town's population is 28,382. The Town provides general governmental services for its citizens, including police and fire protection, collection and disposal of refuse, public education for pre-kindergarten through grade twelve, water and sewer services, parks and recreation, health and social services, libraries/culture as well as maintenance of streets and other infrastructures. The Town is governed by a home rule charter that provides for an Open Town Meeting - Board of Selectmen - Town Manager form of town government; with Town Meeting defined as the Legislative body, Board of Selectmen as the Executive body and the Manager as the chief administrative officer. In accordance with Chapter 2 "the legislative powers of the town shall be exercised by a town meeting open to all registered voters of the town". As defined in Chapter 3 "the Board of Selectmen shall serve as the chief goal-setting and policy-making agency of the town and, as such, shall not normally administer the day-to-day affairs of the town, but shall instead regularly direct the Town Manager to help it in carrying out its administrative duties, and make recommendations to the town meeting relating to actions required to be taken by that body." As defined in Chapter 4 "the Town Manager shall be the chief administrative officer of the town and shall be responsible for administering and coordinating all employees, activities and departments placed by general law, this charter or by-law under the control of the Board of Selectmen and of the Town Manager." The School Committee has general charge and superintendence of the public schools of the Town. The School Committee is comprised of five members elected at large. The School Committee has the power to select and terminate a superintendent of schools, establish educational goals and policies for the schools consistent with the requirements of the laws of the commonwealth and standards established by the Commonwealth. The School Committee also has all the power and duties given to school committees by the laws of the Commonwealth. In addition to being shaped and influenced by the Town's elected officials and appointed staff, Town policy and programs are impacted by the actions of the Town's Boards and Commissions. The size, responsibility and source of authority of the Town's Boards and Commissions vary. With the exception of those members who derive their appointments as a result of their position in Town government and the Town Charter mandating their Town of North Andover, Massachusetts 4 Comprehensive Annual Financial Report membership, the Board of Selectmen and Town Manager appoint members in accordance with the Town Charter or Massachusetts General Law. The Town provides a full array of high quality services to the general public, including: full-time police and fire protection; schools for grades pre- kindergarten through 12, (one pre-kindergarten, five elementary, one middle, one senior high, and one regional vocational technical high school); solid waste disposal and recycling; street maintenance and snow removal; public health and natural resource protection; community development and planning; elder, youth and veteran services; a full service library; and various parks, playgrounds, conservation lands, and recreational programs. The Town also operates its own water supply, purification, and distribution system, and provides sanitary waste disposal via connections to a regional treatment facility(Greater Lawrence Sanitary District). During the summer months the Town operates Steven's Pond, a family and youth oriented recreation area located off Pleasant Street, which includes recreational and instructional swimming, shaded picnic tables, volleyball, horseshoe pits and a children's playground. The Merrimack Valley Transit Authority ("MVTA") provides bus coverage for certain routs around the Town with connections to the surrounding communities with the Merrimack Valley area. The Town of North Andover is committed to a high degree of community responsiveness, providing high quality services to its citizens, and conducting all its affairs in a professional manner. Factors Affecting Economic Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the Town of North Andover operates. Local economy North Andover is a well-balanced mix of commercial development situated in three distinct areas throughout Town. Downtown North Andover serves the local community with small retail and office space as well as providing a mix of fast food and full service restaurants. The downtown is also home to a large mix-use mill complex that houses larger companies, rental housing, manufacturing, restaurants and offices. North Andover is bisected by two state highways that connect to an interstate highway. These two corridors, which comprise the other commercial districts, boast three industrial parks that serve larger national and international businesses. The state highways also provide a mix of regional commercial and retail businesses that serve residents and neighboring communities. Located at the intersection of the two state highways, on a 220- acre campus, is the Merrimack College with over 2,800 students. The college was recently ranked as one of the nation's best liberal arts colleges. Long-term financial planning The Town of North Andover has a proud history of maintaining a solid financial position in all economies, as indicated by its "AA+" bond rating. The Town's financial actions are generally guided by a number of formal financial policies including long range planning tools such as a five year Capital Improvement Program, prioritizing spending plans and identifying discretionary spending, pay-as-you go financing strategies, long-term planning for all liabilities including pension and insurance reserves, and municipal best practices, which are reviewed annually at the beginning of each budget development cycle. Given a number of years of reduced state aid in the first decade of this century, followed by only modest growth since that time, the Town has been able to minimize the impact to municipal and school services through a combination of prudent budgeting, user fee adjustments, strong tax collections, modification of employee health benefits and continued property growth. Over the last few years the Town has been able to make transfers into Town of North Andover, Massachusetts 5 Comprehensive Annual Financial Report their reserve funds from Free Cash. As of June 2014, the Stabilization Fund undesignated fund balance is $3,555,225 and the Capital Stabilization Fund balance is $452,417. The Town is currently managing approximately$51.1 million worth of long debt. This indebtedness consists of approximately$32.1 million of general obligation bonds. Approximately$7.8 million or 15% of the $51.1 million is scheduled to be paid by the end of fiscal 2015 and the remaining $43.3 million by fiscal 2034. Approximately $19.0 million is self-supporting through enterprise fund revenues. The Town of North Andover has enhanced its revenue flexibility by establishing enterprise funds and many other user supported programs. This has allowed the Town to shift the operating costs to the users of certain services so that little or no tax support goes towards providing these services. By doing so, the Town is able to provide the maximum tax dollars available to all other services. The Town has several committees which assist the Town Manager on different levels. In May 2004 Town Meeting adopted the Revenue/Fixed Cost Committee whose main purpose is to advise the Town Manager and other Town officials on projected revenues, other financial sources and fixed cost to facilities the annual budget development process. And the Audit Committee assists the Town Manager with the selection of the independent auditor, oversight of the audit process, and resolution of audit findings. Cash management policies and practices It is the policy of the Town of North Andover to comply with the laws of the Commonwealth of Massachusetts regarding the investment of public funds while achieving the highest return with the maximum security and meeting the daily cash flow demands of the Town. As of June 30, 2014, cash and cash equivalents totaled $48 million. Risk management The Town of North Andover manages its risk through premium based coverage with commercial insurance carriers. With the move from the Towns self-insured health plan to the GIC the Town has further reduced their risk related to health insurance claims. The Town is exposed to various risks of loss related to general liability, property and casualty, workers' compensation and unemployment compensation claims. Buildings and property are fully insured against fire, theft and natural disaster to the extent that losses exceed the Town's deductible per incident. These deductibles vary by type of incident, none of which exceed $25,000. Pension and other post-employment benefits The Town of North Andover contributes to the Essex Regional Retirement System. The System recently reported that the total unfunded liability for the pension plan increased by$46.9 million from $257.8 million to $304.7 million, using an estimated 8% annual return on funds, or has earned more than 18%from January 1, 2010 to December 31, 2013. North Andover's share of this liability is determined annually based on payroll cost but has generally been approximately 14.73%which would extrapolate to an unfunded liability of$45 million. The Town of North Andover also provides postretirement health care benefits for certain retirees and their dependents. There were 380 retired employees receiving these benefits, which are financed on a pay-as-you-go basis for its unfunded liability. For Fiscal 2014, the Town conducted an actuarial valuation dated 7/1/13 to determine the unfunded liability of$86,605,373 which is down $13,463,471 from the previous actuarial dated 7/1/12. The primary reason for the decrease was a negotiated change (increase) in the percentage contribution of health insurance premiums by town employees. The Town migrated all employees and retirees to the Group Insurance Commission (GIC) health insurance plans in January 2014 and the effect of that change on the OPEB Town of North Andover, Massachusetts 6 Comprehensive Annual Financial Report liability is not yet known. The Town established an Other Postemployment Benefit Stabilization fund in 2014, to date it has been funded with $1 million. The Town will continue to contribute to this fund based on the policy that was adopted February10, 2014. Additional information on the Town of North Andover's pension and postemployment benefits can be found in the notes to the financial statements. Annual budget process and controls The Town Manager is responsible for preparing and presenting the budget to the Finance Committee and the Board of Selectmen. The Selectmen review all requests and Town wide issues and present a budget to Town Meeting for approval. A nine member Finance Committee reviews the budget and makes its independent recommendations to Town Meeting. The level of budgetary control is established by Town Meeting and this approval defines the level at which expenditures may not exceed appropriations. The Town Accountant is responsible for ensuring all payroll and invoices are within the budgetary control level before authorizing payment. Additional appropriations may be approved at subsequent Town Meetings. These controls ensure compliance with the budget approved by Town Meeting. Awards and Acknowledgements 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 for its CAFR for the fiscal year ended June 30, 2013. This was the second consecutive year that the Town has achieved this prestigious award. In order to be awarded a Certificate of Achievement, the Town had to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year only. However, we believe that our current CAFR continues to meet the Certificate of Achievement for Excellence in Financial Reporting Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The Town also received the GFOA's Distinguished Budget Presentation Award for its annual budget document for the fiscal year ended June 30, 2013. This was the second consecutive year that the Town has achieved this prestigious award. To qualify for the Distinguished Budget Presentation Award, the Town's budget document had to be judged proficient as a policy document, a financial plan, an operations guide, and a communications device. North Andover's Police Department is a Massachusetts Accredited Police Department and has been so since May 2010. The preparation of this report would not have been possible without the skill, effort and dedication of the staff of the Finance and Accounting departments. We would like to express our appreciation to all of the members of the departments who assisted in providing the data necessary to prepare this report. Credit also is due to the Town Selectmen, Finance Committee and Audit Committee for their unfailing support for maintaining the highest standards of professionalism in the management of the Town of North Andover's finances. Respectfully submitted, Andrew W. Maylor Lyne M. Savage Town Manager Finance Director/Town Accountant Town of North Andover, Massachusetts 7 Comprehensive Annual Financial Report Organizational Chart Citizens of North Andover Town Meeting. Finance Committee Board.of Selectmen School Committee Town Counsel 7rssvn Manager school Superintendent l Assistant Town Manager/Purchasing .. .. .. Finan€e Public Works Administration Eire ot3iece Emergency Management Community Services Cammureity _ £ Development Finance Director DPW Di rector No Division Head Fare Chief Police Chief Human Res©urces EhtE Direct., E3irectgr . Director: A.c-Vgudget Streets/Side—lks p—, Clerk/Licensing. I iCornmunieitions l Plann€ng Elder Services i� Treas/Call �.Fleet Maintenance Stevens s Library Conservation . ......... ......... L_ Assess€ng Solid Veterans Services Health .. r7 Waste/Recycling Human Resources '... Inspectional -_ Services �, WaterJSewer '. ' Stevens Estate Engineering/GIS Youth/Reccreatlon Town of North Andover, Massachusetts 8 Comprehensive Annual Financial Report Principal Town Officials Elected Officials Board of Selectmen Richard M Vaillancourt, Chairman William F. Gordon, Clerk Rosemary Connelly Smedile Donald B. Stewart Tracy M. Watson, Licensing Chairman Town Moderator Mark DiSalvo School Committee Andrew McDevitt, Chair Brian Gross,Vice Chair Stan Limpert, Clerk David Torrisi, Member Zora Warren, Member Appointed Officials— by School Committee Superintendent Kevin Hutchinson Appointed Officials— by Board of Selectmen Town Manager Andrew W. Maylor Town Accountant Lyne M Savage Fire Chief Andrew Melnikas Police Chief Paul J. Gallagher Town Counsel Urbelis & Fieldsteel, LLP Appointed Officials— by Town Manager Assistant Town Manager/Purchasing Raymond Santilli Community Development Director Curt T. Bellavance Conservation Administrator Jennifer A Hughes Director of Elder Services Irene M. O'Brien Finance Director Lyne M Savage Human Resources Cathy J. Darby Inspector of Building Gerald A. Brown Library Director Vacant Public Works Director Bruce D. Thibodeau Public Health Director Susan Y. Sawyer Town Clerk Joyce A. Bradshaw Town Treasurer Jennifer A. Yarid Town Planner Mathew Eggi Veterans Director Edward V. Mitchell Youth Services Director Richard Gorman Town of North Andover, Massachusetts 9 Comprehensive Annual Financial Report Goveminent Finance Officers Association, Certi,'ticate of Achievement for, Excellence 0 r IF n ci a Reporting Presented to 'own of North Andover Massachusetts, For ids Comprehmlive Annual Financial Report. for the s iI e Ended June, 3 , 20, 3 Aof�00 40.gPjgP0*" Executive Dirlwtor/CEO Town of North Andover, Massachusetts 10 Comprehensive Annual Financial Report Financial Section v a j f frr✓PN � � �"'Y i y I t i r o A 1tlM' r � � ir,� ` �1 b IY�Py ���>l�✓l��r�� �Af ��4 �n�of l4v jai r v y i �.i� �,A lv'I��� � ✓�� riV/�t�v��i�� tG� �u � Ye, Former Davis and Furber West Mill Photo courtesy of Millie Matasso Financial Section Town of North Andover, Massachusetts 11 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 12 Comprehensive Annual Financial Report Powers fir: Sullivan 1, C'ertified Public Accountants BdWY(„�faed�uunzdg,p�:wwb'ICt 1'a�rd�n%cprr Independent Auditor's Report SW e 101 To the Honorable Board of Selectmen Wakeficid,MA 0 IN80 T. 78 4-1:A1 Town of North Andover, Massachusetts F` 781,JI1a 174,1 Report on the Financial Statements A A k`.p]K l"4 J 7.0.h kilt!r J 11,C('D We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Town's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts, as of June 30, 2014, 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. Town of North Andover, Massachusetts 13 Comprehensive Annual Financial Report Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of North Andover, Massachusetts' basic financial statements. The introductory section, combining and individual fund statements, statistical section, and additional information are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, statistical section and additional information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 1, 2014, on our consideration of the Town of North Andover, Massachusetts' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is 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 internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town of North Andover, Massachusetts' internal control over financial reporting and compliance. December 1, 2014 Town of North Andover, Massachusetts 14 Comprehensive Annual Financial Report Management's Discussion and Analysis Town of North Andover, Massachusetts 15 Comprehensive Annual Financial Report Management's Discussion and Analysis As management of the Town of North Andover, we offer readers of these financial statements this narrative overview and analysis of the financial activities for the year ended June 30, 2014. We encourage readers to consider the information presented in this report. All amounts, unless otherwise indicated, are expressed in whole dollars. The Governmental Accounting Standards Board (GASB) is the authoritative standard setting body that provides guidance on how to prepare financial statements in conformity with generally accepted accounting principles (GAAP)for states and local governmental entities. Users of these financial statements (such as investors, rating agencies and management) rely on the GASB to establish consistent reporting standards for all governments in the United States. This consistent application is the only way users (including citizens, the media, legislators and others)can assess the financial condition of one government compared to others. Financial Overview • Governmental net position increased by$156,000 in 2014. This increase was due to several positive factors that are more fully described on page 20. The positive factors were offset by a $5.6 million increase in the other postemployment benefits (OPEB) liability bringing the total liability to $42.3 million at year-end. • At the close of the current year, the Town's general fund reported a fund balance of$10.1 million, an increase of$2.4 in comparison with the prior year. Total fund balance represents 11%of general fund expenditures. • The Town's governmental debt(short-term and long-term combined) increased by$3.3 million during the current year. This change was due to the issuance of$13.2 million of short and long-term debt, offset by $9.5 million in principal payments on long-term debt. • The Town's business—type activities increased by$3.0 million during the current year. $1.3 million of this increase was due to the water and sewer rates being designed to cover principal payments on long-term debt and not being designed to cover depreciation expense. • In order to take advantage of favorable interest rates, the Town issued $4,210,000 of general obligation refunding bonds on July 9, 2013. The transaction resulted in an economic gain of$424,435 and a reduction of$489,914 in future debt service payments. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Town of North Andover's basic financial statements. These basic financial statements comprise of three components: 1)government-wide financial statements, 2)fund financial statements, and 3) notes to the financial statements. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of finances, in a manner similar to private-sector business. The statement of net position presents information on all assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position is improving or deteriorating. Town of North Andover, Massachusetts 16 Comprehensive Annual Financial Report The statement of activities presents information showing how the government's net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government, public safety, education, public works, health and human services, culture and recreation, support services, and interest. The business-type activities include the activities of the water, sewer, and Osgood Hill Estate operations. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the governmental-wide financial statements. However, unlike the government-wide financial statements, governmental fund statements focus on near-term inflows of spendable resources, as well as on balances of spendable resources available at the end of the year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government'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. The Town of North Andover adopts an annual appropriated budget for its general fund. A budget to actual schedule has been provided for the general fund to demonstrate compliance with this budget. Proprietary funds. The Town maintains two types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The Town uses enterprise funds to account for its water, sewer, and Osgood Hill Estate operations, all of which are considered to be major funds. The Town of North Andover adopts annual appropriated budgets for each enterprise fund. A budget to actual schedule has been provided, as additional information, to demonstrate compliance with these budgets. The Internal Service fund is used to account for the financing of services provided by one department to other departments or governmental units. This fund is used to account for risk-financing activities related to active employees' and retirees' health insurance. Town of North Andover, Massachusetts 17 Comprehensive Annual Financial Report Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the Town's own programs. The accounting used for fiduciary funds is much like that used for propriety funds. Private-purpose trust funds and agency funds are reported and combined into a single, aggregate presentation in the fiduciary fund financial statements under the captions "private purpose trust funds" and "agency funds," respectively. Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. North Andover's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $142.2 million at the close of 2014. Net position includes $148.1 million as the net investment in capital assets (e.g., land, buildings and building improvements, machinery and equipment and infrastructure); less any related debt used to acquire those assets that are still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the investment in its capital assets is reported net of its related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the net position, $9.4 million, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position has a year-end deficit balance of $15.3 million. The primary reason for this deficit balance is the recognition of the $44.1 million OPEB liability. At the end of the current year, the Town is able to report positive balances in two of the three categories of net position, for the Town as a whole and for its governmental activities. Its business-type activities report positive balances in all categories. The governmental activity and business-type activity components of the Town are presented on the following pages. Town of North Andover, Massachusetts 18 Comprehensive Annual Financial Report Governmental Activities. The Town of North Andover's assets and deferred outflows of resources exceeded liabilities for governmental activities by$94.7 million at the close of 2014. 2014 2013 Assets: Current assets........................................................... $ 44,473,557 $ 34,261,926 Noncurrent assets(excluding capital)............................. - 399,232 Capital assets............................................................ 134,996,739 134,528,958 Total assets......................................................... 179,470,296 169,190,116 Deferred Outflows of Resources: Deferred charges on refunding...................................... 230,563 347,266 Liabilities: Current liabilities(excluding debt)................................... 8,852,949 7,750,897 Noncurrent liabilities(excluding debt).............................. 42,994,897 37,408,389 Current debt.............................................................. 5,294,425 5,726,246 Noncurrent debt......................................................... 27,872,574 24,122,058 Total liabilities...................................................... 85,014,845 75,007,590 Net Position: Net investment in capital assets..................................... 106,117,880 106,453,985 Restricted................................................................. 9,444,583 8,207,148 Unrestricted............................................................... (20,876,449) (20,131,341) Total net position.................................................. $ 94,686,014 $ 94,529,792 Program Revenues: Charges for services................................................... $ 7,010,301 $ 6,974,866 Operating grants and contributions................................. 18,994,028 18,592,278 Capital grants and contributions..................................... 1,807,772 2,556,861 General Revenues: Real estate and personal property taxes.......................... 62,195,623 60,284,114 Tax liens................................................................... 570,085 401,204 Motor vehicle and other excise taxes.............................. 4,673,160 4,462,710 Penalties and interest on taxes...................................... 501,903 316,019 Payments in lieu of taxes............................................. 2,008,020 1,974,424 Community preservation taxes....................................... 1,433,013 1,390,831 Grants and contributions not restricted to specific programs................................................... 2,279,506 2,338,662 Unrestricted investment income..................................... 241,618 198,915 Total revenues...................................................... 101,715,029 99,490,884 Expenses: General government................................................... 3,685,321 3,665,170 Public safety.............................................................. 15,242,286 15,017,342 Education.................................................................. 70,591,546 70,340,318 Public works.............................................................. 6,719,915 6,963,935 Health and human services.......................................... 2,228,573 2,162,118 Culture and recreation............................................. 1,453,223 1,679,351 Support services........................................................ 1,444,333 1,281,204 Interest..................................................................... 1,025,900 1,192,955 Total expenses..................................................... 102,391,097 102,302,393 Excess(deficiency)before transfers............................... (676,068) (2,811,509) Transfers..................................................................... 832,290 1,098,126 Change in net position.............................................. 156,222 (1,713,383) Net position,beginning of year....................................... 94,529,792 96,243,175 Net position,end of year................................................ $ 94,686,014 $ 94,529,792 Town of North Andover, Massachusetts 19 Comprehensive Annual Financial Report The governmental expenses totaled $102.4 million of which $27.8 million (27%)was directly supported by program revenues consisting of charges for services, operating and capital grants and contributions. General revenues totaled $73.9 million, primarily coming from property taxes, motor vehicle excise, payments in lieu of taxes and non-restricted state aid. The governmental net position increased by$156,000 during the current year. This was due to positive general fund budgetary results totaling $3.0 million, the recognition of$1.8 million in capital grants, and a $1.4 million increase in the internal service fund. These increases were offset by a $5.6 million increase in the other postemployment benefits liability. Business-type Activities. The Town of North Andover's assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources for business-type activities by$47.5 million at the close of 2014. 2014 2013 Assets: Current assets............................................................. $ 11,074,453 $ 12,358,806 Noncurrent assets(excluding capital)............................... 577,484 678,103 Capital assets.............................................................. 56,976,623 56,499,301 Total assets........................................................... 68,628,560 69,536,210 Deferred Outflows of Resources: Deferred charges on refunding........................................ 141,043 186,248 Liabilities: Current liabilities(excluding debt).................................... 361,174 427,249 Noncurrent liabilities(excluding debt)................................ 1,852,818 1,691,859 Current debt................................................................ 3,240,133 3,411,542 Noncurrent debt........................................................... 15,770,161 19,674,451 Total liabilities........................................................ 21,224,286 25,205,101 Net Position: Net investment in capital assets....................................... 42,012,200 40,243,610 Unrestricted................................................................. 5,533,117 4,273,747 Total net position.................................................... $ 47,545,317 $ 44,517,357 Program Revenues: Charges for services..................................................... $ 10,520,803 $ 10,688,268 Operating grants and contributions................................... 122,529 127,545 Total revenues....................................................... 10,643,332 10,815,813 Expenses: Water......................................................................... 3,200,373 3,033,371 Sewer........................................................................ 3,238,708 3,517,562 Osgood Hill ................................................................ 344,001 332,189 Total expenses....................................................... 6,783,082 6,883,122 Excess(deficiency)before transfers................................. 3,860,250 3,932,691 Transfers....................................................................... (832,290) (1,098,126) Change in net position................................................ 3,027,960 2,834,565 Net position,beginning of year......................................... 44,517,357 41,682,792 Net position,end of year.................................................. $ 47,545,317 $ 44,517,357 Business-type net position of$42.0 million represents the net investment in capital assets and $5.5 million is unrestricted. The Town's business-type activities net position increased by$3.0 million in the current year. Town of North Andover, Massachusetts 20 Comprehensive Annual Financial Report The water enterprise fund net position increased by$1.2 million. This increase was due to debt service principal payments exceeding depreciation expense by$554,000, and also $766,000 of positive budgetary results. The sewer enterprise fund net position increased by$1.4 million. This increase was due to debt service principal payments exceeding depreciation expense by$795,000 and also $741,000 of positive budgetary results. The Osgood Hill enterprise fund net position increased by$454,000 which was due to additional capital contributions of$506,000 from the community preservation fund. Financial Analysis of the Governmental 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 of North Andover'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 of North Andover's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the year. As of the end of the current year, governmental funds reported combined ending fund balances of$24.2 million, of which $10.1 million is for the general fund, $6.8 million is for the community preservation fund, $3.4 million is for municipal capital project funds, and $3.8 million is for nonmajor governmental funds. Cumulatively there was an increase of$6.9 million in fund balances from the prior year. The general fund is the chief operating fund. At the end of the current year, unassigned fund balance of the general fund totaled $9.0 million, while total fund balance was $10.1 million. $762,000 of fund balance was restricted for debt service. Fund balance has been assigned for encumbrances in the amount of$366,000. Total fund balance represents 11%of general fund expenditures. The Town's general fund increased by$2.4 million in 2014 which was due to $2.0 million of better than anticipated revenue collections, such as tax liens, motor vehicle and other excise taxes, penalties and interest on taxes, intergovernmental revenues, and departmental receipts. Also contributing to the increase were various underspent appropriations totaling $686,000 that included general government, public safety, public works and employee benefits. The community preservation fund increased by$1.2 in 2014, which is due to timing differences between the receipt and expenditure of surcharge and state grant revenues. The highway chapter 90 fund recognized revenues and expenditures totaling $587,000 and accordingly did not reflect a net change in fund balance at year-end. The municipal capital project fund increased by$3.1 million in 2014, which is due to timing differences between the receipt and expenditure of bond proceeds. The nonmajor governmental funds increased by$268,000 in 2014, which is due to timing differences between the receipt and expenditure of bond proceeds and grants. General Fund Budgetary Highlights The original 2014 approved budget for the General Fund authorized $83.2 million in appropriations and other amounts to be raised. This includes $174,000 of encumbrances and continuing appropriations carried forward from the prior year. Town of North Andover, Massachusetts 21 Comprehensive Annual Financial Report Capital Asset and Debt Administration Capital Assets. In conjunction with the annual operating budget, the Town annually prepares a capital budget for the upcoming year and a five-year Capital Improvement Plan (CIP)that is used as a guide for future capital expenditures The Town's investment in capital assets for its governmental and business-type activities as of June 30, 2014, amounts to $192.0 million (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, land improvements, buildings and building improvements, machinery and equipment, library books, vehicles, a water treatment plant, pump stations, a reservoir, and other infrastructure. The Town invested $8.7 million for capital asset additions in 2014. The major governmental capital asset events during the current year include various improvements to school and town buildings associated with the facilities mater plan, an energy efficiency project, construction of playing fields, a new front-end loader, as well as various sidewalk and roadway improvements. The major business-type capital asset events during the current year consisted of a new HVAC system, meter replacements, roofing, windows and other improvements at the Stevens Estate, as well as various water and sewer main improvements. Debt Administration. Outstanding gross long-term governmental debt, as of June 30, 2014, totaled $32.5 million, an increase of$3.0 million from the prior year. This was due to the issuance of general obligation bonds and premiums from the issuance of the bonds totaling $12.5 million, and principal payments totaling $9.5 million. Outstanding governmental short-term debt totaled $660,000 at year-end and is due on June 18, 2015. Outstanding gross long-term debt of the water enterprise fund, as of June 30, 2014, totaled $9.3 million, a decrease of$1.2 million from the prior year. This was due to the issuance of$386,000 of general obligation bonds and principal payments totaling $1.5 million. Outstanding gross long-term debt of the sewer enterprise fund, as of June 30, 2014, totaled $9.7 million, a decrease of$2.9 million. This was due to the issuance of$81,000 of general obligation refunding bonds and principal payments totaling $3.0 million. In order to take advantage of favorable interest rates, the Town issued $4,210,000 of general obligation refunding bonds on July 9, 2013. The proceeds of the refunding bonds were used to complete a current refunding of existing debt. The refunded bonds totaled $4,370,000 and became callable on July 15, 2013. As a result of the transaction, the refunded bonds were paid down on the call date and the liability has been removed from the statement of net position. The transaction resulted in an economic gain of$424,435 and a reduction of$489,914 in future debt service payments. Please refer to notes 4, 7 and 8 to the basic financial statements for further discussion of the major capital and debt activity. Requests for Information This financial report is designed to provide a general overview of the Town of North Andover's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, Town Hall, 120 Main Street, North Andover, Massachusetts 01845. Town of North Andover, Massachusetts 22 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 23 Comprehensive Annual Financial Report Basic Financial Statements Town of North Andover, Massachusetts 24 Comprehensive Annual Financial Report STATEMENT OF NET POSITION JUNE 30,2014 Primary Government Governmental Business-type Activities Activities Total ASSETS CURRENT: Cash and cash equivalents.................................. $ 35,690,312 $ 8,058,863 $ 43,749,175 Investments...................................................... 378,867 - 378,867 Receivables,net of allowance for uncollectibles: Real estate and personal property taxes............. 1,083,256 - 1,083,256 Tax and utility liens......................................... 1,968,114 108,253 2,076,367 Motor vehicle and other excise taxes.................. 278,464 - 278,464 User charges................................................ - 2,806,718 2,806,718 Community preservation................................. 22,580 - 22,580 Departmental and other.................................. 566,756 - 566,756 Intergovernmental.......................................... 3,268,923 100,619 3,369,542 Tax foreclosures................................................ 655,028 - 655,028 Working capital deposit....................................... 561,257 - 561,257 Total current assets.................................... 44,473,557 11,074,453 55,548,010 NONCURRENT: Receivables,net of allowance for uncollectibles: Intergovernmental.......................................... - 577,484 577,484 Capital assets,nondepreciable............................. 25,431,782 6,838,382 32,270,164 Capital assets,net of accumulated depreciation....... 109,564,957 50,138,241 159,703,198 Total noncurrent assets............................... 134,996,739 57,554,107 192,550,846 TOTAL ASSETS.................................................... 179,470,296 68,628,560 248,098,856 DEFERRED OUTFLOWS OF RESOURCES: Deferred charges on refunding............................. 230,563 141,043 371,606 LIABILITIES CURRENT: Warrants payable............................................... 3,108,918 138,034 3,246,952 Accrued payroll.................................................. 2,827,805 - 2,827,805 Tax refunds payable........................................... 1,602,000 - 1,602,000 Accrued interest................................................ 318,739 166,140 484,879 Other liabilities................................................... 85,327 - 85,327 Liabilities due depositors..................................... 106,160 - 106,160 Compensated absences...................................... 804,000 57,000 861,000 Notes payable................................................... 660,000 - 660,000 Bonds payable.................................................. 4,634,425 3,240,133 7,874,558 Total current liabilities................................. 14,147,374 3,601,307 17,748,681 NONCURRENT: Compensated absences...................................... 670,000 33,000 703,000 Other postemployment benefits............................. 42,324,897 1,819,818 44,144,715 Bonds payable.................................................. 27,872,574 15,770,161 43,642,735 Total noncurrent liabilities............................ 70,867,471 17,622,979 88,490,450 TOTAL LIABILITIES................................................ 85,014,845 21,224,286 106,239,131 NET POSITION Net investment in capital assets................................ 106,117,880 42,012,200 148,130,080 Restricted for Debt service...................................................... 762,324 - 762,324 Community preservation...................................... 7,176,228 - 7,176,228 Permanent funds: Expendable.................................................. 735,384 - 735,384 Nonexpendable............................................. 29,215 - 29,215 Gifts and grants................................................. 741,432 - 741,432 Unrestricted.......................................................... (20,876,449) 5,533,117 (15,343,332) TOTAL NET POSITION........................................... $ 94,686,014 $ 47,545,317 $ 142,231,331 See notes to basic financial statements. Town of North Andover, Massachusetts 25 Comprehensive Annual Financial Report STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2014 Program Revenues Operating Capital Charges for Grants and Grants and Net(Expense) Functio ns/Proa rams Expenses Services Contributions Contributions Revenue Primary Government: Governmental Activities: General government.................. $ 3,685,321 $ 573,817 $ 273,029 $ $ (2,838,475) Public safety............................ 15,242,286 2,495,472 152,746 (12,594,068) Education................................ 70,591,546 3,648,664 17,983,068 30,932 (48,928,882) Public works............................ 6,719,915 141,574 22,379 949,933 (5,606,029) Health and human services......... 2,228,573 148,718 446,031 - (1,633,824) Culture and recreation............... 1,453,223 2,056 90,203 826,907 (534,057) Support services....................... 1,444,333 - - - (1,444,333) Interest................................... 1,025,900 26,572 - (999,328) Total Governmental Activities... 102,391,097 7,010,301 18,994,028 1,807,772 (74,578,99$)' Business-Type Activities: Water..................................... 3,200,373 5,237,290 15,186 - 2,052,103 Sewer..................................... 3,238,708 4,945,962 107,343 1,814,597 Osgood Hill.............................. 344,001 337,551 - (6,450) Total Business-Type Activities.. 6,783,082 10,520,803 122,529 - 3,860,250 Total Primary Government....... $ 109,174,179 $ 17,531,104 $ 19,116,557 $ 1,807,772 $ {70,718,746)' See notes to basic financial statements. (Continued) Town of North Andover, Massachusetts 26 Comprehensive Annual Financial Report STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Primary Government Governmental Business-Type Activities Activities Total Changes in net position: Net(expense) revenue from previous page.... $ (74,578,996)i $ 3,860,250 $ (70,718,746)i General revenues: Real estate and personal property taxes, net of tax refunds payable.................... 62,195,623 - 62,195,623 Tax liens.............................................. 570,085 - 570,085 Motor vehicle and other excise taxes......... 4,673,160 - 4,673,160 Penalties and interest............................. 501,903 - 501,903 Payments in lieu of taxes........................ 2,008,020 - 2,008,020 Community preservation taxes................. 1,433,013 - 1,433,013 Grants and contributions not restricted to specific programs............................... 2,279,506 - 2,279,506 Unrestricted investment income................ 241,618 - 241,618 Transfers, net.......................................... 832,290 (832,290) - Total general revenues and transfers............ 74,735,218 (832,290) 73,902,928 Change in net position......................... 156,222 3,027,960 3,184,182 Net Position: Beginning of year.................................. 94,529,792 44,517,357 139,047,149 End of year.......................................... $ 94,686,014 $ 47,545,317 $ 142,231,331 (Concluded) Town of North Andover, Massachusetts 27 Comprehensive Annual Financial Report GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30,2014 Municipal Nonmajor Total Community Highway Capital Governmental Governmental General Preservation Chapter 90 Projects Funds Funds ASSETS Cash and cash equivalents..................................... $ 15,393,542 $ 6,794,353 $ - $ 5,617,397 $ 3,626,011 $ 31,431,303 Investments......................................................... - - - 378,867 378,867 Receivables,net of uncollectibles: Real estate and personal property taxes................ 1,083,256 - 1,083,256 Tax liens......................................................... 1,968,114 1,968,114 Motor vehicle and other excise taxes.................... 278,464 - 278,464 Community preservation.................................... - 22,580 - 22,580 Departmental and other..................................... 523,430 - - 43,326 566,756 Intergovernmental............................................. 399,232 369,000 2,038,164 462,527 3,268,923 Tax foreclosures................................................... 655,028 - - - 655,028 Due from other funds............................................. 415,971 415,971 TOTALASSETS.................................................. $ 20,717,037 $ 7,185,933 $ 2,038,164 $ 5,617,397 $ 4,510,731 $ 40,069,262 LIABILITIES Warrants payable............................................. $ 1,184,795 $ 9,705 $ 296,193 $ 1,515,644 $ 97,842 $ 3,104,179 Accrued payroll................................................ 2,612,661 - - - 215,144 2,827,805 Tax refunds payable.......................................... 1,602,000 - 1,602,000 Liabilities due depositors.................................... 106,160 106,160 Other liabilities................................................. 85,327 - - 85,327 Due to other funds............................................ - 85,911 - 330,060 415,971 Notes payable.................................................. 660,000 660,000 TOTAL LIABILITIES.............................................. 5,590,943 9,705 382,104 2,175,644 643,046 8,801,442 DEFERRED INFLOWS OF RESOURCES Unavailable revenues........................................ 5,016,229 391,580 1,656,060 43,326 7,107,195 FUND BALANCES Nonspendable................................................. - - - - 29,215 29,215 Restricted....................................................... 762,324 6,784,648 3,441,753 3,795,144 14,783,869 Assigned........................................................ 366,486 - - - 366,486 Unassigned..................................................... 8,981,055 8,981,055 TOTAL FUND BALANCES..................................... 10,109,865 6,784,648 3,441,753 3,824,359 24,160,625 TOTAL LIABILITIES,DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES................ $ 20,717,037 $ 7,185,933 $ 2,038,164 $ 5,617,397 $ 4,510,731 $ 40,069,262 See notes to basic financial statements. Town of North Andover, Massachusetts 28 Comprehensive Annual Financial Report RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION JUNE 30,2014 Total governmental fund balances..................................................................... $ 24,160,625 Capital assets(net)used in governmental activities are not financial resources and,therefore, are not reported in the funds.................................................. 134,996,739 Accounts receivable are not available to pay for current-period expenditures and,therefore, are unavailable in the funds................................. 7,107,195 Internal service funds are used by management to account for unemployment, health insurance activities.The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position........... 4,815,527 In the statement of activities, interest is accrued on outstanding long-term debt, whereas in governmental funds interest is not reported until due........................ (318,739) Long-term liabilities are not due and payable in the current period and,therefore, are not reported in the governmental funds. Bonds payable...................................................................................... (32,506,999) Deferred charges on refunding................................................................. 230,563 Other postemployment benefits................................................................ (42,324,897) Compensated absences......................................................................... (1,474,000) Net effect of reporting long-term liabilities............................................. (76,075,333) Net position of governmental activities................................................................ $ 94,686,014 See notes to basic financial statements. Town of North Andover, Massachusetts 29 Comprehensive Annual Financial Report GOVERNMENTALFUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30,2014 Municipal Nonmajor Total Community Highway Capital Governmental Governmental General Preservation Chapter 90 Projects Funds Funds REVENUES: Real estate and personal property taxes, net of tax refunds................................ $ 61,992,217 $ $ $ $ $ 61,992,217 Tax and utility liens.................................. 594,247 594,247 Payments in lieu of taxes.......................... 1,867,019 141,001 2,008,020 Community preservation taxes................... - 1,433,914 - 1,433,914 Motor vehicle and other excise taxes........... 4,866,192 - - 4,866,192 Charges for services................................ 958,291 3,930,085 4,888,376 Penalties and interest on taxes.................. 578,989 - 578,989 Licenses and permits............................... 268,696 433,388 702,084 Fines and forfeitures................................ 105,671 - - 105,671 Intergovernmental................................... 17,589,455 805,907 587,498 3,312,000 22,294,860 Departmental and other............................ 1,332,588 - - 38,411 1,370,999 Contributions.......................................... - - 757,570 757,570 Investment income................................. 142,704 36,126 - 62,788 241,618 TOTAL REVENUES........................ 90,296,069 2,275,947 587,498 8,675,243 101,834,757 EXPENDITURES: Current: General government............................ 2,171,607 - - 3,466,954 212,305 5,850,866 Public safety...................................... 9,351,264 279,397 686,356 10,317,017 Education.......................................... 40,092,434 - - 6,809,864 46,902,298 Public works....................................... 4,508,698 587,498 1,025,655 67,928 6,189,779 Health and human services................... 1,084,887 - - - 483,569 1,568,456 Culture and recreation.......................... 861,157 1,120,803 - 157,265 2,139,225 Support Services................................. 1,239,502 - 102,819 - 1,342,321 Pension benefits................................. 10,837,358 - 10,837,358 Property and liability insurance............... 301,405 301,405 Employee benefits............................... 11,599,341 11,599,341 State and county charges......................... 1,254,988 1,254,988 Debt service: Principal............................................ 5,366,746 5,366,746 Principal-current refunding.................. 4,168,651 4,168,651 Interest............................................. 957,719 - 957,719 TOTAL EXPENDITURES.................. 93,795,757 1,120,803 587,498 4,874,825 8,417,287 108,796,170 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES............. (3,499,688) 1,155,144 - (4,874,825) 257,956 (6,961,413) OTHER FINANCING SOURCES(USES): Issuance of bonds................................... - - 7,961,675 219,822 8,181,497 Issuance of refunding bonds...................... 4,010,000 - - 4,010,000 Premium from issuance of bonds............... 143,149 143,149 Premium from issuance of refunding bonds.. 218,946 - 218,946 Transfers in............................................ 1,548,828 49,825 1,598,653 Transfers out.......................................... - (259,927) (259,927) TOTAL OTHER FINANCING SOURCES(USES)...................... 5,920,923 7,961,675 9,720 13,892,318 NET CHANGE IN FUND BALANCES.............. 2,421,235 1,155,144 3,086,850 267,676 6,930,905 FUND BALANCES AT BEGINNING OF YEAR.............................................. 7,688,630 5,629,504 354,903 3,556,683 17,229,720 FUND BALANCES AT END OF YEAR............ $ 10,109,865 $ 6,784,648 $ $ 3,441,753 $ 3,824,359 $ 24,160,625 See notes to basic financial statements. Town of North Andover, Massachusetts 30 Comprehensive Annual Financial Report RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2014 Net change in fund balances-total governmental funds.................................................... $ 6,930,905 Governmental funds report capital outlays as expenditures. However,in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay............................................................................................... 6,442,548 Depreciation expense.................................................................................... (5,974,767) Net effect of reporting capital assets......................................................... 467,781 Revenues in the Statement of Activities that do not provide current financial resources are unavailable in the Statement of Revenues, Expenditures and Changes in Fund Balances. Therefore,the recognition of revenue for various types of accounts receivable(i.e.,real estate and personal property,motor vehicle excise,etc.)differ between the two statements. This amount represents the net change in unavailable revenue.................................................................. (119,728) The issuance of long-term debt(e.g.,bonds and leases)provides current financial resources to governmental funds,while the repayment of the principal of long- term debt consumes the financial resources of governmental funds. Neither transaction,however,has any 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. Issuance of bonds......................................................................................... (8,181,497) Issuance of refunding bonds........................................................................... (4,010,000) Premium from issuance of bonds..................................................................... (143,149) Premium from issuance of refunding bonds........................................................ (218,946) Debt service principal payments....................................................................... 5,366,746 Debt service principal payments-current refunding............................................. 4,168,651 Net effect of reporting long-term debt........................................................ (3,018,195) 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 the governmental funds. Net change in compensated absences accrual.................................................... 102,000 Net change in accrued interest on long-term debt................................................ 48,524 Net change in other postemployment benefits..................................................... (5,567,508) Amortization of deferred charges on refunding.................................................... (116,703) Net effect of recording long-term liabilities and amortizing deferred losses........ (5,533,687) Internal service funds are used by management to account for health insurance and workers'compensation activities. The net activity of internal service funds is reported with governmental activities........ 1,429,146 Change in net position of governmental activities............................................................. $ 156,222 See notes to basic financial statements. Town of North Andover, Massachusetts 31 Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30,2014 Governmental Business-type Activities-Enterprise Funds Activities Health Insurance Osgood Internal Service Water Sewer Hill Total Fund ASSETS CURRENT: Cash and cash equivalents.................................... $ 4,385,369 $ 3,554,352 $ 119,142 $ 8,058,863 $ 4,259,009 Receivables,net of allowance for uncollectibles: Userfees....................................................... 1,366,651 1,440,067 - 2,806,718 - Utility liens...................................................... 64,116 44,137 108,253 Intergovernmental............................................ - 100,619 100,619 - Working capital deposit......................................... - - - - 561,257 Total current assets...................................... 5,816,136 5,139,175 119,142 11,074,453 4,820,266 NONCURRENT: Receivables,net of allowance for uncollectibles: Intergovernmental............................................ - 577,484 - 577,484 - Capital assets,nondepreciable............................... 1,982,535 123,762 4,732,085 6,838,382 Capital assets,net of accumulated depreciation......... 27,199,927 21,678,363 1,259,951 50,138,241 Total noncurrent assets................................. 29,182,462 22,379,609 5,992,036 57,554,107 TOTALASSETS...................................................... 34,998,598 27,518,784 6,111,178 68,628,560 4,820,266 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding................................ 26,295 114,748 - 141,043 - LIABILITIES CURRENT: Warrants payable................................................. 105,551 20,087 12,396 138,034 4,739 Accrued interest................................................... 47,430 118,710 - 166,140 - Compensated absences........................................ 33,000 21,000 3,000 57,000 Bonds payable..................................................... 1,464,699 1,775,434 - 3,240,133 - Total current liabilities................................... 1,650,680 1,935,231 15,396 3,601,307 4,739 NONCURRENT: Compensated absences........................................ 17,000 15,000 1,000 33,000 - Other postemployment benefits............................... 1,102,754 717,064 - 1,819,818 Bonds payable..................................................... 7,857,775 7,912,386 - 15,770,161 Total noncurrent liabilities.............................. 8,977,529 8,644,450 1,000 17,622,979 TOTAL LIABILITIES................................................. 10,628,209 10,579,681 16,396 21,224,286 4,739 NET POSITION Net investment in capital assets.................................. 21,345,982 14,674,182 5,992,036 42,012,200 - Unrestricted............................................................ 3,050,702 2,379,669 102,746 5,533,117 4,815,527 TOTAL NET POSITION............................................ $ 24,396,684 $ 17,053,851 $ 6,094,782 $ 47,545,317 $ 4,815,527 See notes to basic financial statements. Town of North Andover, Massachusetts 32 Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION YEAR ENDED JUNE 30,2014 Governmental Business-type Activities-Enterprise Funds Activities Health Insurance Osgood Internal Service Water Sewer Hill Total Fund OPERATING REVENUES: Employee contributions................................................ $ $ $ $ $ 1,601,292 Employer contributions................................................. 6,233,531 Charges for services.................................................... 5,213,441 4,916,245 337,551 10,467,237 - Penalties and interest................................................... 23,849 29,717 - 53,566 - TOTAL OPERATING REVENUES............................... 5,237,290 4,945,962 337,551 10,520,803 7,834,823 OPERATING EXPENSES: Cost of service and administration.................................. 1,869,855 556,718 252,636 2,679,209 - GLSD assessment....................................................... - 1,322,544 - 1,322,544 Repairs and maintenance............................................. 191,949 48,863 4,684 245,496 Depreciation............................................................... 863,677 849,346 86,681 1,799,704 - Employee benefits....................................................... - - - - 6,411,053 TOTAL OPERATING EXPENSES............................... 2,925,481 2,777,471 344,001 6,046,953 6,411,053 OPERATING INCOME(LOSS).................................... 2,311,809 2,168,491 (6,450) 4,473,850 1,423,770 NONOPERATING REVENUES(EXPENSES): Investment income...................................................... 15,186 9,130 24,316 5,376 I nterest expense......................................................... (274,892) (461,237) (736,129) - Intergovernmental....................................................... 98,213 98,213 TOTAL NONOPERATING REVENUES(EXPENSES),NET................................ (259,706) (353,894) (613,600) 5,376 INCOME(LOSS)BEFORE CONTRIBUTIONS ANDTRANSFERS................................................. 2,052,103 1,814,597 (6,450) 3,860,250 1,429,146 CAPITAL CONTRIBUTIONS AND TRANSFERS: Capital Contributions.................................................... - - 506,436 506,436 - Transfers out.............................................................. (878,741) (413,525) (46,460) (1,338,726) TOTAL CAPITAL CONTRIBUTIONS AND TRANSFERS.. (878,741) (413,525) 459,976 (832,290) - CHANGE IN NET POSITION....................................... 1,173,362 1,401,072 453,526 3,027,960 1,429,146 NET POSITION AT BEGINNING OF YEAR........................ 23,223,322 15,652,779 5,641,256 44,517,357 3,386,381 NET POSITION AT END OF YEAR................................... $ 24,396,684 $ 17,053,851 $ 6,094,782 $ 47,545,317 $ 4,815,527 See notes to basic financial statements. Town of North Andover, Massachusetts 33 Comprehensive Annual Financial Report PROPRIETARY FUNDS STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30,2014 Business-type Activities-Enterprise Funds Governmental Activities- Health Insurance Osgood Internal Service Water Sewer Hill Total Fund CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and users.................................................. $ 5,275,261 $ 4,995,737 $ 337,551 $ 10,608,549 $ 1,601,292 Receipts from interfund services provided.......................................... - - - - 6,233,531 Payments to vendors..................................................................... (1,119,244) (1,498,366) (145,174) (2,762,784) - Payments to employees................................................................. (870,803) (378,527) (113,934) (1,363,264) Payments for interfund services used................................................ (7,653,678) NET CASH FROM OPERATING ACTIVITIES......................................... 3,285,214 3,118,844 78,443 6,482,501 181,145 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers out............................................................................... (878,741) (413,525) (46,460) (1,338,726) - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds from the issuance of bonds................................................ 267,191 - - 267,191 Proceeds from the issuance of refunding bonds................................... 119,056 80,944 200,000 Capital contributions...................................................................... - - 506,436 506,436 Acquisition and construction of capital assets...................................... (965,319) (805,271) (506,436) (2,277,026) Principal payments on bonds........................................................... (1,417,953) (1,643,903) (3,061,856) Principal payments on bonds-current refunding.................................. (119,858) (1,261,489) (1,381,347) Interest expense........................................................................... (268,176) (350,852) (619,028) NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES....... (2,385,059) (3,980,571) (6,365,630) - CASH FLOWS FROM INVESTING ACTIVITIES: Investment income........................................................................ 15,186 9,130 - 24,316 5,376 NET CHANGE IN CASH AND CASH EQUIVALENTS.............................. 36,600 (1,266,122) 31,983 (1,197,539) 186,521 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR.................. 4,348,769 4,820,474 87,159 9,256,402 4,072,488 CASH AND CASH EQUIVALENTS AT END OF YEAR............................. $ 4,385,369 $ 3,554,352 $ 119,142 $ 8,058,863 $ 4,259,009 RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH FROM OPERATING ACTIVITIES: Operating income(loss)................................................................. $ 2,311,809 $ 2,168,491 $ (6,450) $ 4,473,850 $ 1,423,770 Adjustments to reconcile operating income(loss)to net cash from operating activities: Depreciation............................................................................ 863,677 849,346 86,681 1,799,704 - Changes in assets and liabilities: User fees............................................................................ 22,101 30,937 - 53,038 Utility liens........................................................................... 15,870 18,838 34,708 Working capital deposit.......................................................... - - - (561,257) Warrants payable.................................................................. (29,952) (8,018) (1,788) (39,758) 4,632 Health claims payable............................................................ - (686,000) Accrued compensated absences.............................................. 10,000 (11,000) (1,000) Other postemployment benefits................................................ 91,709 70,250 - 161,959 Total adjustments.............................................................. 973,405 950,353 84,893 2,008,651 (1,242,625) NET CASH FROM OPERATING ACTIVITIES......................................... $ 3,285,214 $ 3,118,844 $ 78,443 $ 6,482,501 $ 181,145 NONCASH INVESTING,CAPITAL,AND FINANCING ACTIVITIES: Intergovernmental debt service subsidy(MCWT)................................. $ - $ 99,687 $ - $ 99,687 $ - Net change in deferred charges....................................................... 14,492 30,713 45,205 See notes to basic financial statements. Town of North Andover, Massachusetts 34 Comprehensive Annual Financial Report FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2014 Private Purpose Agency Trust Funds Funds ASSETS CURRENT: Cash and cash equivalents........................................ $ 91,736 $ 4,158,338 LIABILITIES Warrants payable..................................................... - 60,813 Liabilities due depositors........................................... - 4,097,525 TOTAL LIABILITIES..................................................... - 4,158,338 NET POSITION Held in trust for other purposes................................... $ 91,736 $ - See notes to basic financial statements. Town of North Andover, Massachusetts 35 Comprehensive Annual Financial Report FIDUCIARY FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2014 Private Purpose Trust Funds ADDITIONS: Contributions: Private donations..................................................... $ 9,436 Net investment income: Interest.................................................................. 26 TOTAL ADDITIONS............................................. 9,462 CHANGE IN NET POSITION.................................. 9,462 NET POSITION AT BEGINNING OF YEAR....................... 82,274 NET POSITION AT END OF YEAR................................. $ 91,736 See notes to basic financial statements. Town of North Andover, Massachusetts 36 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying basic financial statements of the Town of North Andover, Massachusetts (Town) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described herein. A. Reporting Entity The Town is a municipal corporation that is governed by an elected Board of Selectmen (Board). For financial reporting purposes, the Town has included all funds, organizations, account groups, agencies, boards, commissions and institutions. The Town has also considered all potential component units for which it is financially accountable as well as other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the basic financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the Town (the primary government)and its component units. It has been determined that there are no component units that meet the requirements for inclusion in the Town's financial statements. Joint Venture Ajoint venture is an organization (resulting from a contractual arrangement)that is owned, operated and governed by two or more participants as a separate and specific activity subject to joint control in which the participants retain an ongoing financial interest or ongoing financial responsibility. Joint control means that no single participant has the ability to unilaterally control the financial or operating policies of the joint venture. The Town participates in the following joint ventures with other municipalities to pool resources and share the costs, risks, and rewards of providing goods and services to venture participants directly, or for the benefit of the general public or specified recipients. Greater Lawrence Sanitary District(GLSD) GLSD operates a wastewater treatment plant for five member communities and is located within the Town. The GLSD is governed by a seven member board consisting of one appointed representative from the Town. The Town is indirectly liable for the GLSD's debt and other expenditures and is assessed annually for its share of operating and capital costs. For the year ended June 30, 2014, the Town's assessment totaled $1,322,544. Separate financial statements may be obtained by writing to the Treasurer of the GLSD at 240 Charles Street, North Andover, MA 01845. Greater Lawrence Regional Technical Vocational School(GLRTVS) The GLRTVS is governed by a seven member school committee consisting of one elected representative from the Town. The Town is indirectly liable for the GLRTVS' debt and other expenditures and is assessed annually for its share of operating and capital costs. For the year ended June 30, 2014, the Town's assessment totaled $240,750. Separate financial statements may be obtained by writing to the Treasurer of the GLRTVS at 57 River Road, Andover, MA 01810. Town of North Andover, Massachusetts 37 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 B. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (i.e., statement of net position and the statement of changes in net position) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which are supported primarily by user fees and charges. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and displayed in a single column. Major Fund Criteria Major funds must be reported if the following criteria are met: • If the total assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, or expenditures/expenses of an individual governmental or enterprise fund are at least 10 percent of the corresponding element(assets, deferred outflows of resources, liabilities, deferred inflows of resources, etc.)for all funds of that category or type (total governmental or total enterprise funds), and • If the total assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding element for all governmental and enterprise funds combined. Additionally, any other governmental or enterprise fund that management believes is particularly significant to the basic financial statements may be reported as a major fund. Fiduciary funds are reported by fund type. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Government-Wide Financial Statements The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. The statement of activities demonstrates the degree to which the direct expenses of a particular function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include the following: • Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment. Town of North Andover, Massachusetts 38 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 • Grants and contributions that are restricted to meeting the operational requirements of a particular function or segment. • Grants and contributions that are restricted to meeting the capital requirements of a particular function or segment. Taxes and other items not identifiable as program revenues are reported as general revenues. For the most part, the effect of interfund activity has been removed from the government-wide financial statements. However, the effect of interfund services provided and used between functions is not eliminated as the elimination of these charges would distort the direct costs and program revenues reported for the functions affected. Fund Financial Statements Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, and certain compensated absences, claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. Real estate and personal property tax revenues are considered available if they are collected within 60 days after year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The general fund is the primary operating fund. It is used to account for all financial resources, except those that are required to be accounted for in another fund. The community preservation fund is a special revenue fund used to account for the 3% local real estate tax surcharge on nonexempt property(and matching state trust fund distribution)that can be used for open space, historic resource and affordable housing purposes. Property exempt from the surcharge consists of the first $100,000 of all residential property and also property owned by low income seniors with a low or moderate income as defined by Massachusetts Department of Revenue (DOR)guidelines. Disbursements from this fund must originate from the Community Preservation Committee and be approved by Town Meeting. The highway chapter 90 fund is a capital projects fund used to account for activities reimbursed through the State's Chapter 90 highway improvement program. The municipal capital projects fund is used to account for the acquisition of non-school related capital assets that are funded through both appropriations and borrowings. Town of North Andover, Massachusetts 39 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The nonmajor governmental funds consist of other special revenue, capital projects and permanent funds that are aggregated and presented in the nonmajorgovernmental funds column on the governmental funds financial statements. The following describes the general use of these fund types: The special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than permanent funds or capital projects. The capital projects fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets of the governmental funds. The permanent fund is used to account for and report financial resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. Proprietary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principle ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The water enterprise fund is used to account for the water activities. The sewer enterprise fund is used to account for the sewer activities. The Osgood Hill enterprise fund is used to account for the operation of Osgood Hill Estate activities. Additionally, the following proprietary fund type is reported: The internal service fund is used to account for the financing of services provided by one department to other departments or governmental units. This fund is used to account for risk financing activities related to employees' health insurance. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting, except for agency funds which have no measurement focus. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the governmental programs. The following fiduciary fund types are reported: The private-purpose trust fund is used to account for trust arrangements that exclusively benefit individuals, private organizations, or other governments. Some of these trusts have donor restrictions and trustee policies that do not allow the endowment portion and any unrealized appreciation to be spent. The donor restrictions and trustee policies only allows the trustees to authorize spending of the realized investment earnings. The Town's educational scholarship trusts are accounted for in this fund. Town of North Andover, Massachusetts 40 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The agency fund is used to account for assets held in a custodial capacity. Such assets consist primarily of performance bonds and bid deposits. Agency funds do not present the results of operations or have a measurement focus. D. Cash and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. E. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of accounting. The recognition of revenue related to accounts receivable reported in the governmental funds financial statements are reported under the modified accrual basis of accounting. Real Estate, Personal Property Taxes and Tax Liens Real estate and personal property taxes are levied and based on values assessed on January 1 st of every year. Assessed values are established by the Board of Assessor's for 100% of the estimated fair market value. Taxes are due on August 1 st, November 1 st, February 1 st and May 1 st and are subject to penalties and interest if they are not paid by the respective due date. Real estate tax liens are processed one year after the close of the valuation year on delinquent properties and are recorded as receivables in the year they are processed. Real estate receivables are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Personal property taxes cannot be secured through the lien process. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Motor Vehicle Excise Motor vehicle excise taxes are assessed annually for each vehicle registered and are recorded as receivables in the year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles. The tax calculation is the fair value of the vehicle multiplied by$25 per$1,000 of value. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Town of North Andover, Massachusetts 41 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Community Preservation Surcharges Community preservation surcharges are levied annually at a rate of 3%of resident's real estate tax bills with exemptions for the first$100,000 of residential property and property owned by qualified persons with low income and seniors (60+)with low or moderate income defined by DOR guidelines. The surcharge is due with the real estate tax on August 1 st, November 1 st, February 1 st and May 1 st and are subject to penalties and interest if they are not paid by the respective due date. Overdue surcharges are included on the tax liens processed on delinquent real estate taxes. Surcharges are recorded as receivables in the year of the levy. Since the receivables are secured via the lien process, these accounts are considered 100% collectible and therefore do not report an allowance for uncollectibles. Water and Sewer User Charges and Utility Liens User fees are levied monthly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date. Water and sewer liens are processed approximately six months after the end of the year and are included as a lien on the property owner's tax bill. Water and sewer charges and liens are recorded as receivables in the year of the levy. Since the receivables are secured via the lien process, these accounts are considered 100% collectible and therefore do not report an allowance for uncollectibles. Departmental and Other Departmental and other receivables consist primarily of amounts due from ambulance charges and police details. These receivables are recorded when the applicable service has been performed. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Intergovernmental Various federal and state grants for operating and capital purposes are applied for and received annually. For non-expenditure driven grants, receivables are recorded as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants, receivables are recorded when the qualifying expenditures are incurred and all other grant requirements are met. These receivables are considered 100% collectible and therefore do not report an allowance for uncollectibles. F. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the government-wide and fund financial statements, and therefore are not reported. Town of North Andover, Massachusetts 42 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 G. Capital Assets Government-Wide and Proprietary Fund Financial Statements Capital assets, which include land, land improvements, buildings and improvements, machinery and equipment, library books, vehicles, infrastructure (e.g., roads, treatment plants, pump stations ,sewer mains and similar items) and construction-in-progress, are reported in the applicable governmental or business-type activity column of the government-wide financial statements and in the proprietary fund financial statements. Capital assets are recorded at historical cost, or at estimated historical cost, if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. Except for the capital assets of the governmental activities column in the government-wide financial statements, construction period interest is capitalized on constructed capital assets. All purchases and construction costs in excess of$10,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Capital assets (excluding land) are depreciated on a straight-line basis. The estimated useful lives of capital assets are as follows: Estimated Useful Life Capital Asset Type (in years) Land improvements................................ 20-30 Buildings and improvements..................... 7-50 Machinery and equipment........................ 3-20 Library books......................................... 10 Vehicles............................................... 5 Treatment plants.................................... 10-40 Pump stations........................................ 20-40 Reservoirs............................................ 20-40 Infrastructure......................................... 20-60 The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized. Governmental Fund Financial Statements Capital asset costs are recorded as expenditures in the acquiring fund in the year of the purchase. H. Deferred Outflows/Inflows of Resources Government-Wide Financial Statements (Net Position) In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has reported deferred charges on refunding in this category. Town of North Andover, Massachusetts 43 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town does not have any items that qualify for reporting in this category. Governmental Fund Financial Statements In addition to liabilities, the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents assets that have been recorded in the governmental fund financial statements but the revenue is not available and so will not be recognized as an inflow of resources (revenue) until it becomes available. The Town has reported unavailable revenues from property taxes in this category. I. Interfund Receivables and Payables During the course of its operations, transactions occur between and within individual funds that may result in amounts owed between funds. Government-Wide Financial Statements Transactions of a buyer/seller nature between and within governmental funds are eliminated from the governmental activities in the statement of net position. Any residual balances outstanding between the governmental activities and business-type activities are reported in the statement of net position as "internal balances". Fund Financial Statements Transactions of a buyer/seller nature between and within funds are not eliminated from the individual fund statements. Receivables and payables resulting from these transactions are classified as "Due from other funds" or"Due to other funds"on the balance sheet. J. Interfund Transfers During the course of its operations, resources are permanently reallocated between and within funds. These transactions are reported as transfers in and transfers out. Government-Wide Financial Statements Transfers between and within governmental funds are eliminated from the governmental activities in the statement of net position. Any residual balances outstanding between the governmental activities and business- type activities are reported in the statement of activities as "Transfers, net". Fund Financial Statements Transfers between and within funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. Town of North Andover, Massachusetts 44 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 K. Net Position and Fund Equity Government-Wide Financial Statements (Net Position) Net position reported as "net investment in capital assets" includes capital assets, net of accumulated depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital related debt are not considered to be capital assets. Net position is reported as restricted when amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Net position has been "restricted for" the following: "Debt service" represents amounts accumulated from the Massachusetts School Building Authority (MSBA)to reduce school construction excluded debt service costs over the life of the loans. "Community preservation" represents amounts restricted for the purpose of acquiring land for conservation, recreational, and affordable housing purposes. "Permanent funds—expendable" represents the amount of realized and unrealized investment earnings of donor restricted trusts. The donor restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings that support governmental programs. "Permanent funds - nonexpendable" represents the endowment portion of donor restricted trusts that support governmental programs. "Gifts and grants" represents restrictions placed on assets from outside parties. 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 and proprietary fund 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. Fund Financial Statements (Fund Balances) Governmental fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned based on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The governmental fund balance classifications are as follows: "Nonspendable"fund balance includes amounts that cannot be spent because they are either not in spendable form or they are legally or contractually required to be maintained intact. "Restricted" fund balance includes amounts subject to constraints placed on the use of resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or that are imposed by law through constitutional provisions or enabling legislation. Town of North Andover, Massachusetts 45 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 "Committed"fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government's highest level of decision-making authority. Town Meeting is the highest level of decision-making authority for the government that can, by adoption of an article prior to the end of the year, commit fund balance. Once adopted, the limitation imposed by the article remains in place until a similar action is taken to remove or revise the limitation. "Assigned" fund balance includes amounts that are constrained by the Town's intent to be used for specific purposes, but are neither restricted nor committed. Town Meeting may assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. "Unassigned"fund balance includes the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The Town's spending policy is to spend restricted fund balance first, followed by committed, assigned and unassigned fund balance. Most governmental funds are designated for one purpose at the time of their creation. Therefore, any expenditure from the fund will be allocated to the applicable fund balance classifications in the order of the aforementioned spending policy. The general fund and certain other funds may have more than one purpose. L. Long-term debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net position. Material bond premiums and discounts are deferred and amortized over the life of the bonds using the straight- line method. Bonds payable are reported net of the applicable bond premium or discount. Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources. Bond premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual bond proceeds received, are reported as general government expenditures. M. Investment Income Excluding the permanent funds, Investment income derived from major and nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL). N. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Compensated absence liabilities related to both governmental and business- type activities are normally paid from the funds reporting payroll and related expenditures. Compensated absences are reported in governmental funds only if they have matured. Town of North Andover, Massachusetts 46 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave, which will be liquidated with expendable available financial resources, are reported as expenditures and fund liabilities upon maturity of the liability. O. Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the year. Actual results could vary from estimates that were used. P. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. Q. Appropriation Deficits A general fund appropriation deficit was reported in state and county charges. This deficit is not required to be raised in the subsequent year tax levy. NOTE 2 -CASH AND INVESTMENTS A cash and investment pool is maintained that is available for use by all funds. Each fund type's portion of this pool is displayed on the balance sheet as "Cash and Cash Equivalents." The deposits and investments of the trust funds are held separately from those of other funds. Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment Pool (Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth. In addition, there are various restrictions limiting the amount and length of deposits and investments. The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts Municipal Depository Trust(MMDT), which was established by the Treasurer of the Commonwealth who serves as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares. Town of North Andover, Massachusetts 47 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Custodial Credit Risk—Deposits In the case of deposits, this is the risk that in the event of a bank failure, the Town's deposits may not be returned to it. The Town's policy is to minimize custodial credit risk by only investing in highly rated banks, which is determined through the utilization of a bank rating service. At year-end, the carrying amount of deposits totaled $43,239,985 and the bank balance totaled $44,384,812. Of the bank balance, $2,713,172 was covered by Federal Depository Insurance, $30,265,294 was covered by the Depositor's Insurance Fund, and $11,406,346 was collateralized. Interest Rate Risk The Town's investment policy limits investment maturities to one year as a means of managing its exposure to fair value losses arising from increasing interest rates. The Town participates in MMDT, which maintains a cash portfolio and a short-term bond fund with combined average maturities of approximately three months. As of June 30, 2014, the Town had the following investments and maturities: Maturities Investment Type Fair Value 1-5 Years 6-10 Years Debt Securities Bond Mutual Funds....................................$ 98,502 $ - $ 98,502 Repurchase Agreements............................ 630,000 630,000 - Total Debt Securities......................................... 728,502 $ 630,000 $ 98,502 Other Investments Equity Mutual Funds......................................... 280,365 Money Market Mutual Funds........................ 459,918 MMDT..................................................... 3,669,346 Total Investments..............................................$ 5,138,131 Custodial Credit Risk— Investments For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to recover the value of its investments or collateral security that are in the possession of an outside party. The Town did not have investments that were exposed to custodial credit risk. The Town's policy to minimize custodial credit risk is to obtain from brokerage houses and broker/dealers 1)audited financial statements, 2) proof of National Association of Security Dealers certification, 3)a statement that the dealer has read the Town's investment policy and will comply with it and 4) be in business for no less than five years and have a minimum capitalization of$10 million. Credit Risk Standard and Poor's Investors Service rated the $98,502 of bond mutual funds AA. The $630,000 of repurchase agreements and $3,669,346 of MMDT deposits were unrated. The Town's investment policy limits investments in debt securities to U.S. Treasuries and U.S. Agency Obligations, which are AAA rated, and like-kind investments that are fully collateralized. Town of North Andover, Massachusetts 48 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Concentration of Credit Risk The Town limits the amount the Town may invest in any one issuer to 10%. The Town does not have investments in corporate bonds or equity securities and therefore does not have exposure to concentration of credit risk. NOTE 3 -RECEIVABLES At June 30, 2014, receivables for the individual major and non-major governmental funds including the applicable allowances for uncollectible accounts are as follows: Allowance Gross for Net Amount Uncollectibles Amount Receivables: Real estate and personal property taxes......................... $ 1,204,256 $ (121,000) $ 1,083,256 Tax liens.................................................................. 1,968,114 - 1,968,114 Motor vehicle and other excise taxes............................. 670,464 (392,000) 278,464 Community preservation surcharges.............................. 22,580 - 22,580 Departmental and other.............................................. 837,745 (270,989) 566,756 Intergovernmental...................................................... 3,268,923 - 3,268,923 Total......................................................................$ 7,972,082 $ (783,989) $ 7,188,093 At June 30, 2014, receivables for the water and sewer enterprise funds are as follows: Allowance Gross for Net Amount Uncollectibles Amount Receivables: User charges............................................................ $ 2,806,718 $ - $ 2,806,718 Utility liens................................................................ 108,253 - 108,253 Intergovernmental...................................................... 678,103 - 678,103 $ 3,593,074 $ - $ 3,593,074 Governmental funds report unavailable revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the current year, the various components of unavailable revenue reported in the governmental funds were as follows: Other General Governmental Fund Funds Total Receivable and other asset type: Real estate and personal property taxes......................... $ 1,191,961 $ - $ 1,191,961 Tax liens.................................................................. 1,968,114 - 1,968,114 Motor vehicle and other excise taxes............................. 278,464 - 278,464 Community preservation surcharges.............................. - 22,580 22,580 Departmental and other.............................................. 523,430 43,326 566,756 Intergovernmental (highway construction assistance)........ - 1,656,060 1,656,060 Intergovernmental (school construction assistance).......... 399,232 - 399,232 Intergovernmental (CPA state match)............................ - 369,000 369,000 Tax foreclosures........................................................ 655,028 - 655,028 Total......................................................................$ 5,016,229 $ 2,090,966 $ 7,107,195 Town of North Andover, Massachusetts 49 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 4 -CAPITAL ASSETS Capital asset activity for the year ended June 30, 2014, is as follows: Beginning Ending Governmental Activities: Balance Increases Decreases Balance Capital assets not being depreciated: Land........................................................ $ 22,158,954 $ - $ - $ 22,158,954 Construction in progress............................... 4,663,916 3,184,768 (4,575,856) 3,272,828 Total capital assets not being depreciated.... 26,822,870 3,184,768 (4,575,856) 25,431,782 Capital assets beino depreciated: Land improvements..................................... 3,257,450 - - 3,257,450 Buildings and building improvements.............. 133,795,275 5,629,486 - 139,424,761 Machinery and equipment............................. 9,136,975 344,138 (121,475) 9,359,638 Library books............................................. 4,319,452 103,488 - 4,422,940 Vehicles.................................................... 5,729,330 609,325 (326,851) 6,011,804 Infrastructure............................................. 38,784,176 1,147,199 - 39,931,375 Total capital assets being depreciated......... 195,022,658 7,833,636 (448,326) 202,407,968 Less accumulated depreciation for: Land improvements..................................... (2,361,135) (98,261) - (2,459,396) Buildings and improvements.......................... (52,361,529) (3,590,543) - (55,952,072) Machinery and equipment............................. (5,633,915) (646,120) 121,475 (6,158,560) Library books............................................. (4,044,977) (47,394) - (4,092,371) Vehicles.................................................... (3,668,900) (334,842) 326,851 (3,676,891) Infrastructure............................................. (19,246,114) (1,257,607) - (20,503,721) Total accumulated depreciation................. (87,316,570) (5,974,767) 448,326 (92,843,011) Total capital assets being depreciated, net........... 107,706,088 1,858,869 - 109,564,957 Total governmental activities capital assets, net.... $ 134,528,958 $ 5,043,637 $ (4,575,856) $ 134,996,739 Town of North Andover, Massachusetts 50 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Ending Ending Business-Type Activities: Balance Increases Decreases Balance Capital assets not being depreciated: Land.........................................................$ 6,097,262 $ - $ - $ 6,097,262 Construction in progress............................... 234,684 506,436 - 741,120 Total capital assets not being depreciated.... 6,331,946 506,436 - 6,838,382 Capital assets being depreciated: Land improvements..................................... 232,105 - - 232,105 Buildings and improvements......................... 2,028,474 379,923 - 2,408,397 Machinery and equipment............................. 2,291,645 393,728 - 2,685,373 Vehicles.................................................... 566,086 3,157 - 569,243 Treatment plants......................................... 16,573,234 - - 16,573,234 Pump stations............................................ 4,493,451 80,484 - 4,573,935 Reservoirs................................................. 1,477,296 - - 1,477,296 Infrastructure............................................. 54,399,127 913,298 - 55,312,425 Total capital assets being depreciated......... 82,061,418 1,770,590 - 83,832,008 Less accumulated depreciation for: Land improvements..................................... (118,587) (9,619) - (128,206) Buildings and improvements......................... (878,782) (84,495) - (963,277) Machinery and equipment............................. (1,178,356) (154,596) - (1,332,952) Vehicles.................................................... (373,035) (30,567) - (403,602) Treatment plants......................................... (10,722,930) (430,838) - (11,153,768) Pump stations............................................ (2,345,667) (120,385) - (2,466,052) Reservoirs................................................. (1,241,826) (36,396) - (1,278,222) Infrastructure............................................. (15,034,880) (932,808) - (15,967,688) Total accumulated depreciation................. (31,894,063) (1,799,704) - (33,693,767) Total capital assets being depreciated, net........... 50,167,355 (29,114) - 50,138,241 Total business-type activities capital assets, net....$ 56,499,301 $ 477,322 $ - $ 56,976,623 Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government................................................. $ 314,043 Public safety........................................................... 560,656 Education............................................................... 3,273,944 Public works........................................................... 1,498,648 Human services...................................................... 139,963 Culture and recreation.............................................. 187,513 Total depreciation expense-governmental activities............ $ 5,974,767 Business-Type Activities: Water..................................................................... $ 863,677 Sewer.................................................................... 849,346 Osgood Hill............................................................. 86,681 Total depreciation expense- business-type activities............ $ 1,799,704 Town of North Andover, Massachusetts 51 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 5- INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS Interfund receivables and payables totaled $415,971 as of June 30, 2014 and consisted of$85,911 due to the general fund from the highway chapter 90 fund, as well as $330,060 due to the general fund from the State and Federal education grant funds. The outstanding balances resulted from the time lag between the dates that reimbursable expenditures are incurred and reimbursements from the Massachusetts Highway Department, as well as other State and Federal entities, are received. Interfund transfers for the year ended June 30, 2014, are summarized as follows: Operating Transfers In: Nonmajor General Governmental Operating Transfers Out: Fund Funds Total Nonmajor Governmental Funds............... $ 210,102 $ 49,825 $ 259,927 (1) Water Enterprise Fund........................... 878,741 - 878,741 (2) Sewer Enterprise Fund.......................... 413,525 - 413,525 (2) Osgood Hill Enterprise Fund................... 46,460 - 46,460 (2) Total.................................................. $ 1,548,828 $ 49,825 $ 1,598,653 (1) Budgeted transfers to the general fund from other available funds. Also, transfers to and from nonmajor and municipal capital project funds. (2) Budgeted transfers to the general fund for indirect costs. NOTE 6— LEASES Operating Lease The Town entered into a commercial lease for office space for the Schools Business Office that expires July 31, 2015. The future minimum lease payments are as follows: Governmental Years Ending June 30, Activities 2015...................................................... $ 91,098 2016...................................................... 91,098 Total...................................................... $ 182,196 Town of North Andover, Massachusetts 52 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 7 -SHORT-TERM FINANCING Short-term debt may be authorized and issued to fund the following: • Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation notes (RANS or TANS). • Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through issuance of bond anticipation notes (BANS)or grant anticipation notes (GANS). Short-term loans are general obligations and carry maturity dates that are limited by statute. Interest expenditures and expenses for short-term borrowings are accounted for in the general fund and enterprise funds, respectively. Details related to the short-term debt activity for the year ended June 30, 2014, are as follows: Rate Beginning Ending Type Purpose (%) Due Date Balance Additions Reductions Balance BAN School design services....... 0.55 6/27/2014 $ 359,000 $ - $ 359,000 $ - BAN Facilities master plan......... 0.45 6/18/2015 - 660,000 - 660,000 Total......................................... $ 359,000 $ 660,000 $ 359,000 $ 660,000 NOTE 8 - LONG-TERM DEBT State law permits the Town, under the provisions of Chapter 44, Section 10, to authorize indebtedness up to a limit of 5% of its equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the debt limit." In addition, however, a Town may authorize debt in excess of that limit for specific purposes. Such debt, when issued, is designated as being 'outside the debt limit." In order to take advantage of favorable interest rates, the Town issued $4,210,000 of general obligation refunding bonds on July 9, 2013. The proceeds of the refunding bonds were used to complete a current refunding of existing debt. The refunded bonds totaled $4,370,000 and became callable on July 15, 2013. As a result of the transaction, the refunded bonds were paid down on the call date and the liability has been removed from the statement of net position. The transaction resulted in an economic gain of$424,435 and a reduction of$489,914 in future debt service payments. There was no difference between the face value of the debt refunded and the reacquisition price. Town of North Andover, Massachusetts 53 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Details related to the outstanding indebtedness at June 30, 2014, and the debt service requirements are as follows: Bonds Payable-Governmental Funds Original Interest Maturities Loan Rate Beginning Ending Project Through Amount (%) Balance Additions Reductions Balance Municipal Purpose Loan of 2004................... 2016 12,705,555 2.00-5.00 1,763,894 1,408,396 355,498 Municipal Purpose Loan of 2005................... 2025 8,205,261 3.00-4.00 2,916,751 2,834,864 81,887 High School Construction............................ 2026 3,000,000 3.30-5.00 1,950,000 1,950,000 - Municipal Purpose Loan of 2007................... 2016 406,805 3.60-4.50 119,850 39,950 79,900 Municipal Purpose Loan of 2008................... 2028 1,486,026 4.00-4.40 728,811 124,443 604,368 Land Acquisition-Refunding....................... 2018 2,960,000 3.00-4.00 1,590,000 295,000 1,295,000 Municipal Purpose Loan of 2008-Refunding.. 2019 9,540,000 3.00-4.00 5,255,000 930,000 4,325,000 Municipal Purpose Loan of 2009................... 2029 7,122,134 2.75-5.00 4,809,197 579,655 4,229,542 Municipal Purpose Loan of 2010................... 2029 4,171,222 2.25-4.00 3,186,800 326,800 2,860,000 Municipal Purpose Loan of 2011................... 2021 4,365,353 2.00-3.75 3,360,000 502,500 2,857,500 Municipal Purpose Loan of 2012................... 2029 3,255,348 2.00-2.50 2,882,302 364,700 2,517,602 Municipal Purpose Loan of 2013................... 2022 926,199 2.00-3.00 926,199 179,089 747,110 Municipal Purpose Loan of 2014-Refunding.. 2026 4,010,000 2.00-3.25 - 4,010,000 - 4,010,000 Municipal Purpose Loan of 2014................... 2034 8,181,497 2.00-3.25 - 8,181,497 - 8,181,497 Sub-total.................................................. 29,488,804 12,191,497 9,535,397 32,144,904 Unamortized premium................................ - 362,095 - 362,095 Total governmental bonds payable................ $ 29,488,804 $ 12,553,592 $ 9,535,397 $ 32,506,999 Debt service requirements for principal and interest for Governmental bonds payable in future years are as follows: Year Principal Interest Total 2015.......... $ 4,583,965 $ 977,907 $ 5,561,872 2016.......... 4,219,670 840,238 5,059,908 2017.......... 4,053,720 717,220 4,770,940 2018.......... 3,858,052 587,871 4,445,923 2019.......... 2,283,249 476,197 2,759,446 2020.......... 1,663,918 404,518 2,068,436 2021.......... 1,623,918 353,886 1,977,804 2022.......... 1,266,418 310,468 1,576,886 2023.......... 1,208,400 273,268 1,481,668 2024.......... 1,213,399 237,131 1,450,530 2025.......... 1,125,399 199,777 1,325,176 2026.......... 920,399 165,697 1,086,096 2027.......... 785,399 136,899 922,298 2028.......... 769,000 109,900 878,900 2029.......... 754,998 83,675 838,673 2030.......... 350,000 58,113 408,113 2031.......... 355,000 47,613 402,613 2032.......... 365,000 36,075 401,075 2033.......... 370,000 24,213 394,213 2034.......... 375,000 12,188 387,188 Totals........ $ 32,144,904 $ 6,052,854 $ 38,197,758 Town of North Andover, Massachusetts 54 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Bonds Payable-Water Enterprise Fund Original Interest Maturities Loan Rate Beginning Ending Project Through Amount N Balance Additions Reductions Balance Municipal Purpose Loan of 2003................... 2015 $ 4,401,970 2.30-4.00 $ 275,805 $ $ 139,903 $ 135,902 Municipal Purpose Loan of 2004-Refunding.. 2016 985,438 2.00-4.20 291,105 101,606 189,499 Municipal Purpose Loan of 2005................... 2016 2,942,000 3.00-4.00 666,189 422,987 243,202 Municipal Purpose Loan of 2007................... 2016 815,000 3.60-4.50 244,500 81,500 163,000 MCWT.................................................... 2028 5,532,288 2.00 4,355,739 251,505 4,104,234 Municipal Purpose Loan of 2008................... 2018 1,000,000 3.70-5.00 500,000 100,000 400,000 Municipal Purpose Loan of 2008-Refunding.. 2018 1,888,108 3.00-4.00 200,000 40,000 160,000 Municipal Purpose Loan of 2009................... 2019 450,000 2.75-5.00 270,000 45,000 225,000 Municipal Purpose Loan of 2010................... 2030 2,025,000 2.25-4.00 1,638,200 128,200 1,510,000 Municipal Purpose Loan of 2011................... 2021 225,000 2.00-3.75 180,000 22,500 157,500 Municipal Purpose Loan of 2012................... 2022 1,175,000 2.00-2.50 1,057,500 117,500 940,000 Municipal Purpose Loan of 2013................... 2022 795,000 2.00-3.00 795,000 87,110 707,890 Municipal Purpose Loan of 2014-Refunding.. 2016 119,056 2.00-3.25 - 119,056 - 119,056 Municipal Purpose Loan of 2014................... 2024 267,191 2.00-3.25 - 267,191 - 267,191 Total Water Enterprise bonds payable........... $ 10,474,038 $ 386,247 $ 1,537,811 $ 9,322,474 Debt service requirements for principal and interest for Water Enterprise fund bonds and notes payable in future years are as follows: Year Principal Interest Total 2015.......... $ 1,464,699 $ 235,854 $ 1,700,553 2016.......... 1,090,276 192,003 1,282,279 2017.......... 860,037 162,634 1,022,671 2018.......... 860,432 139,129 999,561 2019.......... 721,074 115,857 836,931 2020.......... 627,255 98,111 725,366 2021.......... 607,983 84,023 692,006 2022.......... 591,328 70,943 662,271 2023.......... 388,108 57,973 446,081 2024.......... 394,191 49,064 443,255 2025.......... 378,397 39,708 418,105 2026.......... 384,729 30,777 415,506 2027.......... 391,188 21,717 412,905 2028.......... 397,777 12,528 410,305 2029.......... 65,000 6,600 71,600 2030.......... 100,000 4,000 104,000 Totals........ $ 9,322,474 $ 1,320,920 $ 10,643,394 Town of North Andover, Massachusetts 55 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 Bonds Payable-Sewer Enterprise Fund Original Interest Maturities Loan Rate Beginning Ending Project Through Amount N Balance Additions Reductions Balance MCWT..................................................... 2021 $ 7,356,555 3.70-5.40 $ 3,077,862 $ $ 500,582 $ 2,577,280 Municipal Purpose Loan of 2003.................... 2018 4,091,216 2.30-3.70 1,249,193 1,215,098 34,095 Municipal Purpose Loan of 2005.................... 2016 1,979,739 3.00-4.00 442,056 282,145 159,911 Municipal Purpose Loan of 2007.................... 2016 720,000 3.60-4.50 280,650 93,550 187,100 Municipal Purpose Loan of 2008.................... 2028 3,925,290 3.70-5.00 3,061,191 205,557 2,855,634 Municipal Purpose Loan of 2008-Refunding... 2019 1,156,892 3.00-4.00 570,801 110,345 460,456 Municipal Purpose Loan of 2010.................... 2022 3,830,001 2.75-5.00 2,540,002 320,001 2,220,001 Municipal Purpose Loan of 2010-Refunding... 2020 250,000 2.25-3.50 175,000 25,000 150,000 Municipal Purpose Loan of 2012.................... 2022 78,000 2.00-2.50 70,200 7,800 62,400 Municipal Purpose Loan of 2013-Refunding... 2018 1,145,000 2.00-3.00 1,145,000 245,001 899,999 Municipal Purpose Loan of 2014-Refunding... 2016 80,944 2.00-3.25 - 80,944 - 80,944 Total Sewer Enterprise bonds payable........... $ 12,611,955 $ 80,944 $ 3,005,079 $ 9,687,820 Debt service requirements for principal and interest for Sewer Enterprise fund bonds and notes payable in future years are as follows: Year Principal Interest Total 2015.......... $ 1,775,434 $ 363,110 $ 2,138,544 2016.......... 1,425,280 301,680 1,726,960 2017.......... 1,138,300 249,910 1,388,210 2018.......... 1,153,970 204,507 1,358,477 2019.......... 963,635 159,617 1,123,252 2020.......... 902,399 121,888 1,024,287 2021.......... 652,400 90,247 742,647 2022.......... 502,399 68,867 571,266 2023.......... 209,600 50,327 259,927 2024.......... 204,601 41,681 246,282 2025.......... 204,601 62,986 267,587 2026.......... 194,601 24,290 218,891 2027.......... 189,601 15,776 205,377 2028.......... 170,999 7,481 178,480 Totals........ $ 9,687,820 $ 1,762,367 $ 11,450,187 The Sewer Enterprise Fund is scheduled to be subsidized by the Massachusetts Clean Water Trust (MCWT)on a periodic basis for principal in the amount of$678,103 and interest costs of$319,824. Thus, net MCWT loan repayments, including interest, are scheduled to be $1,979,811. The principal subsidies are guaranteed and therefore a $678,103 intergovernmental receivable has been reported in the proprietary fund financial statements. Since the Town is legally obligated for the total amount of the debt, such amounts have been recorded in the accompanying basic financial statements. The 2014 principal and interest subsidies totaled $99,687 and $98,213, respectively. The Commonwealth has approved school construction assistance. The assistance program, which is administered by the Massachusetts School Building Authority, provides resources for future debt service of general obligation school bonds outstanding. During year 2014, $412,000 of such assistance was received. Approximately$412,000 will be received in future years. Of this amount, $13,000 represents reimbursement of long-term interest costs, and $399,000 represents reimbursement of approved construction costs. Accordingly, a $399,000 intergovernmental receivable and corresponding unavailable revenue have been reported in the governmental fund financial statements. The unavailable revenue has been recognized as revenue in the conversion to the government-wide financial statements. Town of North Andover, Massachusetts 56 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The Town is subject to various debt limits by statute and may issue additional general obligation debt under the normal debt limit. At June 30, 2014, the Town had the following authorized and unissued debt. Purpose Amount Revenue billing system........................................ $ 75,000 Energy efficiency improvements to buildings............. 1,049,027 Total................................................................ $ 1,124,027 Changes in Long-term Liabilities During the year ended June 30, 2014, the following changes occurred in long-term liabilities: Beginning Ending Due within Balance Additions Reductions Balance One Year Governmental Activities: Long-term bonds.......................... $ 29,488,804 $ 12,191,497 $ (9,535,397) $ 32,144,904 $ 4,583,965 Unamortized premium................... - 362,095 - 362,095 50,458 Bonds payable, net....................... 29,488,804 12,553,592 (9,535,397) 32,506,999 4,634,423 Other postemployment benefits....... 36,757,389 8,195,353 (2,627,845) 42,324,897 - Compensated absences................ 1,576,000 823,000 (925,000) 1,474,000 804,000 Total governmental....................... $ 67,822,193 $ 21,571,945 $ (13,088,242) $ 76,305,896 $ 5,438,423 Beginning Ending Due within Balance Additions Reductions Balance One Year Business-Type Activities: Long-term bonds.......................... $ 23,085,993 $ 467,191 $ (4,542,890) $ 19,010,294 $ 3,240,133 Other postemployment benefits....... 1,657,859 238,403 (76,444) 1,819,818 - Compensated absences................ 91,000 56,000 (57,000) 90,000 57,000 Total business-type...................... $ 24,834,852 $ 761,594 $ (4,676,334) $ 20,920,112 $ 3,297,133 The governmental activities long-term liabilities are generally liquidated by the general fund and the business-type activities long-term liabilities are generally liquidated by the applicable enterprise fund. NOTE 9—GOVERNMENTAL FUND BALANCE CLASSIFICATIONS GASB 54 provides for two major types of fund balances, which are nonspendable and spendable. Nonspendable fund balances are balances that cannot be spent because they are not expected to be converted to cash or they are legally or contractually required to remain intact. Examples of this classification are prepaid items, inventories, and principal (corpus)of an endowment fund. The Town has reported principal portions of endowment funds as nonspendable. In addition to the nonspendable fund balance, GASB 54 has provided a hierarchy of spendable fund balances, based on a hierarchy of spending constraints. • Restricted: fund balances that are constrained by external parties, constitutional provisions, or enabling legislation. Town of North Andover, Massachusetts 57 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 • Committed: fund balances that contain self-imposed constraints of the government from its highest level of decision making authority. • Assigned: fund balances that contain self-imposed constraints of the government to be used for a particular purpose. • Unassigned: fund balance of the general fund that is not constrained for any particular purpose Massachusetts General Law Ch.40 §5B allows for the establishment of stabilization funds for one or more different purposes. The creation of a fund requires a two-thirds vote of the legislative body and must clearly define the purpose of the fund. Any change to the purpose of the fund along with any additions to or appropriations from the fund requires a two-thirds vote of the legislative body. At year end the balance of the general stabilization fund, and capital stabilization fund was $3,555,225, and $239,417, respectively. Both stabilization funds are reported as unassigned fund balance within the general fund. The Town has classified its fund balances with the following hierarchy. Municipal Nonmajor Total Community Capital Governmental Governmental General Preservation Projects Funds Funds FUND BALANCES Nonspendable: Permanent fund principal......................... $ $ $ $ 29,215 $ 29,215 Restricted for: Municipal federal and state grants.............. 109,984 109,984 Education federal and state grants............. 7,753 7,753 Receipts reserved for appropriations.......... 132,739 132,739 Municipal revolving funds......................... 514,733 514,733 Education revolving funds........................ 205,836 205,836 School lunch funds................................. 31,782 31,782 Other special revenue funds..................... 856,670 856,670 Affordable housing trust fund.................... 974,271 974,271 Other trust funds.................................... 75,365 75,365 Education capital projects........................ 150,627 150,627 Other permanent funds............................ 735,384 735,384 Debt service.......................................... 762,324 - 762,324 CPA fund.............................................. - 6,784,648 6,784,648 Municipal capital projects......................... - - 3,441,753 3,441,753 Assigned to: Encumbrances: General government............................... 11,008 - 11,008 Public safety.......................................... 48,806 48,806 Education............................................. 36,005 36,005 Public works.......................................... 160,897 160,897 Human and human services..................... 2,402 2,402 Culture and recreation............................. 1,014 1,014 Support services.................................... 104,130 104,130 Employee benefits.................................. 2,224 2,224 Unassigned............................................... 8,981,055 - 8,981,055 TOTAL FUND BALANCES..................................$ 10,109,865 $ 6,784,648 $ 3,441,753 $ 3,824,359 $ 24,160,625 Town of North Andover, Massachusetts 58 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 10 - RISK FINANCING The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Town carries commercial insurance. The Town participates in a premium-based workers' compensation plan for its active and retired employees. The amount of claim settlements has not exceeded insurance coverage in any of the three preceding years. Health Insurance In 2013 the Town joined the Commonwealth of Massachusetts' group insurance plan which is a premium based health insurance plan. Since that time the internal service fund has accounted for residual health insurance claims. As of June 30, 2014, there was no remaining liability for incurred but not reported claims; changes in the reported liability since July 1, 2012, are as follows: Current Year Balance at Claims and Beginning of Changes in Claims Balance at Year Estimate Payments Year-End Year 2013................... $ 518,000 $ 12,356,000 $ (12,188,000) $ 686,000 Year 2014................... 686,000 6,968,000 (7,654,000) - NOTE 11 -PENSION PLAN Plan Description-The Town contributes to the Essex Regional Retirement System (the "System"), a cost sharing multiple-employer defined benefit pension plan administered by the Essex County Retirement Board. School teachers and certain administrators are members of the Commonwealth of Massachusetts' Teachers Retirement System, to which the Town does not contribute. All pension benefits and expenses paid by the Teachers Retirement System are funded by the Commonwealth of Massachusetts (the "Commonwealth"). The amount of these on-behalf payments totaled $7,395,089 for the year ended June 30, 2014, and accordingly are reported in the general fund as intergovernmental revenues and pension benefit expenditures. The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth's state law during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living adjustments granted after 1997 must be approved by the System and are borne by the System. The System issues a publicly available financial report in accordance with guidelines established by the Commonwealth's Public Employee Retirement Administration Commission. That report may be obtained by contacting the System located at 36 Federal Street, Salem, Massachusetts, 01970. Funding Policy- Plan members are required to contribute to the System at rates ranging from 5% to 11% of annual covered compensation. The Town is required to pay into the System its share of the system-wide actuarial determined contribution, which is apportioned among the employers based on active current payroll. The contributions of plan members and the Town are governed by Chapter 32 of the MGL. The Town's contributions to the System for the years ended June 30, 2014, 2013, and 2012 totaled $3,442,269, $3,186,990, and $3,002,374, respectively, which equaled its required contribution for each year. Town of North Andover, Massachusetts 59 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The schedule of funding progress, presented as required supplementary information, following the notes to the basic financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Additionally, the schedule of employer contributions, presented as required supplementary information, following the notes to the basic financial statements, presents multiyear trend information for required and actual contributions relating to the cost- sharing plan as a whole, of which the Town is one participating employer, as well as the Town's proportionate share of the plan's annual contributions. This information is designed to be helpful for understanding the scale of the information presented relative to the Town. NOTE 12— POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description—The Town of North Andover administers a single-employer defined benefit healthcare plan (the "Retiree Health Plan"). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town's group health insurance plan, which covers both active and retired members. Chapter 32B of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the Town and the unions representing Town employees and are renegotiated each bargaining period. The Retiree Health Plan does not issue a publicly available financial report. Funding Policy—Contribution requirements are also negotiated between the Town and union representatives. The required contribution is based on a pay-as-you-go financing requirement. The Town contributes a variable portion of the cost of current-year premiums, which varies by plan, for eligible retired plan members and their spouses. Plan members receiving benefits contribute the remaining portion of their premium costs. For 2014, the Town contributed $2.7 million to the plan. Annual OPEB Cost and Net OPEB Obligation—The Town's annual other postemployment benefit(OPEB)cost (expense) is calculated based on the annual required contribution of the employer(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)over a period not to exceed thirty years. The components of the Town's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town's net OPEB obligation are summarized in the following table: Annual required contribution........................................ $ 8,342,451 Interest on net OPEB obligation.................................... 1,728,686 Adjustment to annual required contribution..................... (1,637,381) Annual OPEB Cost(expense)...................................... 8,433,756 Contributions made.................................................... (2,704,289) Increase in net OPEB obligation................................... 5,729,467 Net OPEB obligation- beginning of year......................... 38,415,248 Net OPEB obligation-end of year................................. $ 44,144,715 Town of North Andover, Massachusetts 60 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 The Town's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the two preceding years was as follows: Percentage of Year Annual Annual OPEB Net OPEB Ended OPEB Cost Cost Contributed Obligation 6/30/2014 $ 8,433,756 32% $ 44,144,715 6/30/2013 10,748,052 30% 38,415,248 6/30/2012 12,196,334 34% 30,919,382 Funded Status and Funding Progress—As of July 1, 2013 the actuarial accrued liability for benefits was $86.6 million, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $44 million, and the ratio of the UAAL to the covered payroll was 197 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions—Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members)and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2013 actuarial valuation, actuarial liabilities were determined using the projected unit credit cost method. The actuarial assumptions included a 4.5% investment return assumption, which is based on the expected yield on the assets of the Town, calculated based on the funded level of the plan at the valuation date, a 3% inflation rate assumption, and an annual health care trend rate of 9% initially, graded to 5% over 8 years. The UAAL is being amortized with a level percentage of pay over a 30 year period on an open basis. The remaining amortization period at June 30, 2014 is 30 years. NOTE 13—COMMITMENTS The Town has entered into, or is planning to enter into, contracts related to energy efficiency improvements for Town buildings totaling approximately$1 million. Town of North Andover, Massachusetts 61 Comprehensive Annual Financial Report Notes to Basic Financial Statements Year Ended June 30, 2014 NOTE 14—CONTINGENCIES The Town participates in a number of Federal award programs. These programs are subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Town expects such amounts, if any, to be immaterial. Various legal actions and claims are pending against the Town. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not always predictable. Although the amount of liability, if any, at June 30, 2014, cannot be ascertained, management believes any resulting liability should not materially affect the financial position of the Town at June 30, 2014. NOTE 15— IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS During 2014, the following GASB pronouncements were implemented: • GASB Statement#65, Items Previously Reported as Assets and Liabilities. Financial statement changes include the presentation of deferred outflows and inflows in the Statement of Net Position and Balance Sheet. Notes to the basic financial statements were changed to provide additional disclosure on deferred outflows of resources and deferred inflows of resources. • GASB Statement#70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The implementation of this pronouncement did not impact the basic financial statements. The following GASB pronouncements will be implemented in future years: • The GASB issued Statement#67, Financial Reporting for Pension Plans, which is required to be implemented in 2015. • The GASB issued Statement#68, Accounting and Financial Reporting for Pensions, which is required to be implemented in 2015. • The GASB issued Statement#69, Government Combinations and Disposals of Government Operations, which is required to be implemented in 2015. • The GASB issued Statement#71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which is required to be implemented simultaneously with GASB Statement#68 in 2015. Management is currently assessing the impact the implementation of these pronouncements will have on the basic financial statements. Except as discussed below, management does not expect that these new GASB statements will have a significant effect on the basic financial statements. GASB Statements#67 and#68 will substantially change the reporting for pension liabilities and expenses. Certain changes in pension liabilities will be immediately recognized and reported as pension expense or reported as deferred outflows/inflows of resources depending on the nature of the changes. Substantial changes to methods and assumptions used to determine information for GAAP reporting purposes will be required. Current actuarial methods may continue to be used to determine future amounts. Town of North Andover, Massachusetts 62 Comprehensive Annual Financial Report Required Supplementary Information Town of North Andover, Massachusetts 63 Comprehensive Annual Financial Report GENERALFUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET AND ACTUAL YEAR ENDED JUNE 30,2014 Budgeted Amounts Amounts Current Year Carried forward Initial Original Final From Prior Year Budget Budget Budget REVENUES: Real estate and personal property taxes, net of tax refunds................................................. $ $ 62,877,694 $ 62,877,694 $ 62,877,694 Taxliens................................................................ - - - Payments in lieu of taxes.......................................... 1,815,270 1,815,270 1,815,270 Motor vehicle and other excise taxes........................... 4,074,139 4,074,139 4,074,139 Charges for services................................................ 863,833 863,833 863,833 Penalties and interest on taxes................................... 251,326 251,326 251,326 Licenses and permits................................................ 230,962 230,962 230,962 Fines and forfeitures................................................ 121,444 121,444 121,444 Intergovernmental.................................................... 9,994,141 9,994,141 9,994,141 Departmental and other............................................ 1,130,682 1,130,682 1,130,682 Investment income................................................... 118,400 118,400 118,400 TOTAL REVENUES......................................... 81,477,891 81,477,891 81,477,891 EXPENDITURES: Current: General government............................................ 2,462 2,195,833 2,198,295 2,202,056 Public safety....................................................... 26,461 9,735,131 9,761,592 9,761,592 Education.......................................................... 29,149 40,122,915 40,152,064 40,144,270 Public works....................................................... 67,423 4,114,638 4,182,061 4,762,484 Health and human services................................... 4,962 1,161,872 1,166,834 1,132,834 Culture and recreation.......................................... 776 863,687 864,463 864,463 Support services................................................. 37,756 1,347,294 1,385,050 1,385,050 Pension benefits.................................................. - 3,442,269 3,442,269 3,442,269 Property and liability insurance............................... - 377,612 377,612 301,405 Employee benefits............................................... 5,000 12,211,811 12,216,811 11,801,353 State and county charges.......................................... - 1,102,112 1,102,112 1,102,112 Debt service: Principal............................................................ 5,427,568 5,427,568 5,366,746 Interest.............................................................. 947,622 947,622 957,719 TOTAL EXPENDITURES.................................. 173,989 83,050,364 83,224,353 83,224,353 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES............................................ (173,989) (1,572,473) (1,746,462) (1,746,462) OTHER FINANCING SOURCES(USES): Premium from issuance of bonds................................ - - - Transfers in............................................................ 1,542,762 1,542,762 1,542,762 TOTAL OTHER FINANCING SOURCES(USES)... 1,542,762 1,542,762 1,542,762 NET CHANGE IN FUND BALANCE................................. (173,989) (29,711) (203,700) (203,700) BUDGETARY FUND BALANCE,Beginning ofyear............. 5,006,938 5,006,938 5,006,938 BUDGETARY FUND BALANCE,End of year..................... $ (173,989) $ 4,977,227 $ 4,803,238 $ 4,803,238 See notes to required supplementary information. Town of North Andover, Massachusetts 64 Comprehensive Annual Financial Report Actual Amounts Variance Budgetary Carried Forward To Final Amounts To Next Year Budget $ 62,611,049 $ $ (266,645) 594,247 594,247 1,867,019 51,749 4,866,192 792,053 958,291 94,458 578,989 327,663 268,696 37,734 105,671 (15,773) 10,194,366 200,225 1,338,043 207,361 121,627 3,227 83,504,190 2,026,299 2,111,312 11,008 79,736 9,351,264 48,806 361,522 40,092,434 36,005 15,831 4,508,698 160,897 92,889 1,084,887 2,402 45,545 861,157 1,014 2,292 1,239,502 104,130 41,418 3,442,269 - - 301,405 - - 11,599,341 2,224 199,788 1,254,988 - (152,876) 5,366,746 957,719 - - 82,171,722 366,486 686,145 1,332,468 (366,486) 2,712,444 143,149 143,149 1,543,373 611 1,686,522 143,760 3,018,990 (366,486) 2,856,204 5,006,938 - $ 8,025,928 $ (366,486) $ 2,856,204 Town of North Andover, Massachusetts 65 Comprehensive Annual Financial Report Retirement System Schedules of Funding Progress and Employer Contributions The Retirement System Schedule of Funding Progress presents multiyear trend information about whether the actuarial value of planned assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. The Retirement System Schedule of Employer Contributions presents multiyear trend information for required and actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town's proportionate share of the plan's annual contributions. Town of North Andover, Massachusetts 66 Comprehensive Annual Financial Report ESSEX REGIONAL RETIREMENT SYSTEM SCHEDULE OF FUNDING PROGRESS Actuarial UAAL as a Actuarial Accrued Unfunded Percentage Actuarial Value of Liability(AAL) AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (A) (B) (B-A) (A/B) (C) ((B-A)/C) 01/01/13 $ 314,565,925 $ 619,339,080 $ 304,773,155 50.8% $ 119,292,287 255.5% 01/01/11 278,332,006 536,115,536 257,783,530 51.9% 119,707,156 215.3% 01/01/08 301,420,965 445,171,554 143,750,589 67.7% 111,726,856 128.7% 01/01/06 261,327,047 376,034,621 114,707,574 69.5% 98,641,094 116.3% 01/01/04 229,852,971 333,396,222 103,543,251 68.9% 93,404,002 110.9% 01/01/02 218,346,198 287,390,715 69,044,517 76.0% 85,005,338 81.2% 01/01/00 190,363,700 253,847,100 63,483,400 75.0% 69,525,900 91.3% 01/01/99 180,034,700 268,386,000 88,351,300 67.1% 89,645,300 98.6% The Town's share of the UAAL, as of January 1, 2013 is approximately 14%or$42.7 million. See notes to required supplementary information. Town of North Andover, Massachusetts 67 Comprehensive Annual Financial Report ESSEX REGIONAL RETIREMENT SYSTEM SCHEDULE OF EMPLOYER CONTRIBUTIONS System Wide Town of North Andover (B/A) Year Annual (A) (B) Town's Percentage Ended Required Actual Percentage Actual of System Wide June 30 Contributions Contributions Contributed Contributions Actual Contributions 2014 $ 24,110,012 $ 24,110,012 100% $ 3,442,269 14.3% 2013 22,770,925 22,770,925 100% 3,186,990 14.0% 2012 21,084,190 21,084,190 100% 3,002,374 14.2% 2011 19,093,942 19,093,942 100% 2,803,785 14.7% 2010 17,648,487 17,648,487 100% 2,596,530 14.7% 2009 15,601,671 15,601,671 100% 2,468,667 15.8% 2008 15,788,864 15,788,864 100% 2,261,142 14.3% 2007 16,622,274 16,622,274 100% 2,227,020 13.4% 2006 13,080,011 13,080,011 100% 2,181,588 16.7% 2005 12,223,776 12,223,776 100% 1,946,329 15.9% 2004 12,516,569 12,516,569 100% 1,693,461 13.5% The Town's Actual Contributions equaled 100%of its Required Contributions for each year presented. See notes to required supplementary information. Town of North Andover, Massachusetts 68 Comprehensive Annual Financial Report Other Postemployment Benefit Plan Schedules The Schedule of Funding progress compares, over time, the actuarial accrued liability for benefits with the actuarial value of accumulated plan assets. The Schedule of Employer Contributions compares, overtime, the annual required contributions to the actual contributions made. The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of trends in the amounts reported. Town of North Andover, Massachusetts 69 Comprehensive Annual Financial Report OTHER POSTEMPLOYMENT BENEFIT PLAN SCHEDULE OF FUNDING PROGRESS AND SCHEDULE OF EMPLOYER CONTRIBUTIONS Schedule of Funding Progress Actuarial Accrued UAAL as a Actuarial Liability(AAL) Unfunded Percentage Actuarial Value of Projected AAL Funded Covered of Covered Valuation Assets Unit Credit (UAAL) Ratio Payroll Payroll Date (A) (B) (B-A) (A/B) (C) ((B-A)/C) 07/01/13 $ - $ 86,605,373 $ 86,605,373 0.0% $ 43,951,748 197.0% 07/01/12 - 100,068,844 100,068,844 0.0% 41,265,503 242.5% 07/01/10 - 118,595,377 118,595,377 0.0% 39,329,676 301.5% 07/01/08 - 125,963,157 125,963,157 0.0% 39,189,469 321.4% Schedule of Employer Contributions Annual Actual Year Required Contributions Percentage Ended Contribution Made Contributed 6/30/14 $ 8,342,451 $ 2,704,289 32.4% 6/30/13 10,674,564 4,184,956 39.2% 6/30/12 12,141,886 4,184,956 34.5% 6/30/11 12,441,414 3,839,408 30.9% 6/30/10 11,241,110 4,346,876 38.7% 6/30/09 10,964,622 3,978,109 36.3% The Town implemented GASB Statement No. 45 for the year ended June 30, 2009. Information for prior years is not available. See notes to required supplementary information. Town of North Andover, Massachusetts 70 Comprehensive Annual Financial Report OTHER POSTEMPLOYMENT BENEFIT PLAN ACTUARIAL METHODS AND ASSUMPTIONS Actuarial Methods: Valuation date................................................... July 1, 2013 Actuarial cost method......................................... Projected Unit Credit Amortization method.......................................... Level percentage of pay over thirty years based on an open group. Remaining amortization period............................. 30 years, open basis Actuarial Assumptions: Investment rate of return..................................... 4.5% Inflation rate assumption..................................... 3.0% Medical/drug cost trend rate................................. 9.0% graded to 5.0% over 8 years Plan Membership: Current retirees, beneficiaries, and dependents....... 380 Current active members...................................... 747 Total............................................................... 1,127 See notes to required supplementary information. Town of North Andover, Massachusetts 71 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2014 NOTE A-STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY 1. Budgetary Information Municipal Law requires the Town to adopt a balanced budget that is approved by Town Meeting. The Finance Committee presents an annual budget to Town Meeting, which includes estimates of revenues and other financing sources and recommendations of expenditures and other financing uses. Town Meeting, which has full authority to amend and/or reject the budget or any individual line item, adopts the expenditure budget by majority vote. Increases or transfers between departments subsequent to the approval of the annual budget, requires majority Town Meeting approval via a supplemental appropriation. The majority of the Town's appropriations are non-continuing which lapse at the end of each year. Others are continuing appropriations for which the governing body has authorized that an unspent balance from a prior year be carried forward and made available for spending in the current year. These carry forwards are included as part of the subsequent year's original budget. Generally, expenditures may not exceed the legal level of spending authorized for an appropriation account. However, the Town is statutorily required to pay debt service, regardless of whether such amounts are appropriated. Additionally, expenditures for disasters, natural or otherwise, and final judgments may exceed the level of spending authorized by majority vote of the Town Meeting. The Town adopts an annual budget for the general fund in conformity with the guidelines described above. The original 2014 approved budget for the general fund authorized $83.2 million in appropriations and other amounts to be raised. The Town Accountant's office has the responsibility to ensure that budgetary control is maintained on an individual line item appropriation account basis. Budgetary control is exercised through the Town's accounting system. 2. Budgetary- GAAP Reconciliation For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of accounting (established by the Commonwealth of Massachusetts) is followed, which differs from the GAAP basis of accounting. A reconciliation of budgetary-basis to GAAP-basis results for the general fund for the year ended June 30, 2014, is presented below: Net change in fund balance- budgetary basis.............................................. $ 3,018,990 Perspective difference: Activity of the stabilization funds recorded in the general fund for GAAP......................................................................... 21,077 Basis of accounting differences: Net change in recording 60 day receipts................................................... (208,832) Net change in recording tax refunds payable............................................. (410,000) Recognition of revenue for on-behalf payments.......................................... 7,395,089 Recognition of expenditures for on-behalf payments.................................... (7,395,089) Net change in fund balance- GAAP basis................................................... $ 2,421,235 Town of North Andover, Massachusetts 72 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2014 NOTE B— PENSION PLAN The Town contributes to the System, a cost-sharing multiple-employer defined benefit pension plan administered by the Essex Regional Retirement System. Substantially all employees are members of the System, except for public school teachers and certain administrators who are members of the Massachusetts Teachers Retirement System, to which the Town does not contribute. Pension benefits and administrative expenses paid by the Teachers Retirement Board are the legal responsibility of the Commonwealth. The amount of these on-behalf payments totaled $7,395,089 for the year ended June 30, 2014, and, accordingly, are reported in the general fund as intergovernmental revenues and pension expenditures. The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth's state law during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living adjustments granted after 1997 must be approved by the Andover Contributory Retirement Board and are borne by the System. Plan members are required to contribute to the System at rates ranging from 5% to 11% of annual covered compensation. The Town is required to pay into the System its share of the system-wide actuarial determined contribution, which is apportioned among the employers based on active current payroll. The contributions of plan members and the Town are governed by Chapter 32 of the MGL. The Town's contributions to the System for the years ended June 30, 2014, 2013, and 2012 totaled $3,442,269, $3,186,990, and $3,002,374, respectively, which equaled its required contribution for each year. The following actuarial methods and assumptions were used in the Retirement System's most recent actuarial valuation: Actuarial Methods and Assumptions: Valuation Date.....................................January 1, 2013 Actuarial Cost Method...........................Entry Age Normal Cost Method Amortization Method.............................Approximate level percent of payroll closed Remaining Amortization Period...............21 years for the fresh start base Asset Valuation Method.........................A five-year(20% per year)smoothing method that reflects differences between expected market asset return and actual market return Actuarial Assumptions: Investment rate of return......................8.00% Projected salary increases................... 3.75% per annum (ultimate rate) Cost of living adjustments.................... 3.0% of first$13,000 of retirement income Plan Membership: Retired, disabled and beneficiaries receiving benefits........................................ 1,670 Inactive participants................................................................................................ 1,009 Active participants..................................................................................... 2,816 Total....................................................................................................... 5,495 Town of North Andover, Massachusetts 73 Comprehensive Annual Financial Report Notes to Required Supplementary Information Year Ended June 30, 2014 The schedule of funding progress presents multiyear trend information relating to the cost-sharing plan as a whole, of which the Town is one participating employer, about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Additionally, the schedule of employer contributions presents multiyear trend information for required and actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town's proportionate share of the plan's annual contributions. This information is designed to be helpful for understanding the scale of the information presented relative to the Town. NOTE C—OTHER POSTEMPLOYMENT BENEFITS PLAN The Town administers a single-employer defined benefit healthcare plan ("The Retiree Health Plan"). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town's group health insurance plan, which covers both active and retired members. Additionally, retired teachers and their spouses receive health insurance through the Group Insurance Commission of the Commonwealth of Massachusetts (GIC). Each participating municipality is assessed for the governmental share of health and life insurance premiums paid on behalf of its teacher retirees by the state. The Town currently finances its other postemployment benefits (OPEB)on a pay-as-you-go basis. As a result, the funded ratio (actuarial value of assets expressed as a percentage of the actuarial accrued liability) is 0%. In accordance with Governmental Accounting Standards, the Town has recorded its OPEB cost equal to the actuarially determined annual required contribution (ARC)which includes the normal cost of providing benefits for the year and a component for the amortization of the total unfunded actuarial accrued liability of the plan. The Schedule of Funding Progress presents multi-year trend information which compares, overtime, the actuarial accrued liability for benefits with the actuarial value of accumulated plan assets. The Schedule of Employer Contributions compares, overtime, the annual required contributions to the actual contributions made. Projections of benefits for financial reporting purposes are based on the substantive plan and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of trends in the amounts reported. Town of North Andover, Massachusetts 74 Comprehensive Annual Financial Report Combining and Individual Fund Statements Town of North Andover, Massachusetts 75 Comprehensive Annual Financial Report Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Municipal Federal and State Grants—This fund is used to account for grant funds received from state and federal governments which are designated for specific non-school related programs. Education Federal and State Grants—This fund is used to account for grant funds received from state and federal governments which are designated for specific education related programs. Receipts Reserved for Appropriation—This fund is used to account for receipts from a specific revenue source that by law is accounted for separately from the general fund and must be spent by appropriation. Municipal Revolving Funds—This fund is used to account for various municipal department's revolving funds established in accordance with MGL Chapter 44, Section 53E 'h and other applicable statutes. Education Revolving Funds—This fund is used to account for the school department's revolving funds established in accordance with MGL Chapter 44, Section 53E 'h and Chapter 71. School Lunch Funds—This fund is used to account for all cafeteria activities and is funded by user charges, federal and state grants, and commodities received. Other Special Revenue Funds—This fund is used to account for the activity of donated funds, gifts, and public safety details. Affordable Housing Trust Fund—This fund is used to account for activities relating to the preservation and creation of affordable housing in the Town. Other Trust Funds—This fund is used to account for activities of conservation and public safety trust funds. Capital Projects Funds Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds. Education Capital Projects—This fund is used to account for the acquisition of school related capital assets that are funded through both appropriations and borrowings. Town of North Andover, Massachusetts 76 Comprehensive Annual Financial Report 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 that support governmental programs. Permanent Funds Principal—This fund is used to account for all non-library related gifts, bequests and contributions for which only earnings may be expended to benefit the Town. Library Permanent Funds—This fund is used to account for gifts, bequests and contributions held for which only earnings may be expended for purposes specified by the donor in relation to library activities. Town of North Andover, Massachusetts 77 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2014 Special Revenue Funds Municipal Education Receipts Municipal Federal and Federal and Reserved for Revolving State Grants State Grants Appropriation Funds ASSETS Cash and cash equivalents................................ $ 112,516 $ 22,323 $ 132,739 $ 532,581 Investments.................................................... - - - - Receivables, net of uncollectibles: Departmental and other................................ - 43,326 Intergovernmental........................................ - 462,527 - TOTAL ASSETS............................................. $ 112,516 $ 484,850 $ 132,739 $ 575,907 LIABILITIES Warrants payable........................................ $ 2,532 $ 9,405 $ - $ 17,848 Accrued payroll........................................... - 137,632 - Due to other funds....................................... - 330,060 - TOTAL LIABILITIES......................................... 2,532 477,097 17,848 DEFERRED INFLOWS OF RESOURCES Unavailable revenues................................... - - 43,326 FUND BALANCES Nonspendable............................................ - - - - Restricted.................................................. 109,984 7,753 132,739 514,733 TOTAL FUND BALANCES................................ 109,984 7,753 132,739 514,733 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES........... $ 112,516 $ 484,850 $ 132,739 $ 575,907 Town of North Andover, Massachusetts 78 Comprehensive Annual Financial Report Special Revenue Funds Education School Other Affordable Other Revolving Lunch Special Revenue Housing Trust Funds Funds Funds Trust Fund Funds Subtotal $ 326,513 $ 49,803 $ 863,541 $ 974,271 $ 75,365 $ 3,089,652 43,326 - - - - - 462,527 $ 326,513 $ 49,803 $ 863,541 $ 974,271 $ 75,365 $ 3,595,505 $ 54,569 $ 6,617 $ 6,871 $ $ $ 97,842 66,108 11,404 - 215,144 - - - 330,060 120,677 18,021 6,871 643,046 - - - 43,326 205,836 31,782 856,670 974,271 75,365 2,909,133 205,836 31,782 856,670 974,271 75,365 2,909,133 $ 326,513 $ 49,803 $ 863,541 $ 974,271 $ 75,365 $ 3,595,505 (Continued) Town of North Andover, Massachusetts 79 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30,2014 Capital Project Funds Permanent Funds Total Education Permanent Library Nonmajor Capital Funds Permanent Governmental Projects Principal Funds Subtotal Funds ASSETS Cash and cash equivalents.............................. $ 150,627 $ 29,215 $ 356,517 $ 385,732 $ 3,626,011 Investments.................................................. - - 378,867 378,867 378,867 Receivables, net of uncollectibles: Departmental and other............................... - - 43,326 Intergovernmental...................................... - - - - 462,527 TOTAL ASSETS............................................ $ 150,627 $ 29,215 $ 735,384 $ 764,599 $ 4,510,731 LIABILITIES Warrants payable....................................... $ - $ - $ - $ - $ 97,842 Accrued payroll......................................... 215,144 Due to other funds..................................... 330,060 TOTAL LIABILITIES....................................... 643,046 DEFERRED INFLOWS OF RESOURCES Unavailable revenues................................. 43,326 FUND BALANCES Nonspendable........................................... - 29,215 - 29,215 29,215 Restricted................................................. 150,627 - 735,384 735,384 3,795,144 TOTAL FUND BALANCES.............................. 150,627 29,215 735,384 764,599 3,824,359 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCES......... $ 150,627 $ 29,215 $ 735,384 $ 764,599 $ 4,510,731 (Concluded) Town of North Andover, Massachusetts 80 Comprehensive Annual Financial Report This page intentionally left blank. Town of North Andover, Massachusetts 81 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30,2014 Special Revenue Funds Municipal Education Receipts Municipal Federal and Federal and Reserved for Revolving State Grants State Grants Appropriation Funds REVENUES: Payments in lieu of taxes............................................ $ $ $ $ Charges for services....................................................... 568,984 Licenses and permits................................................. 41,597 95,935 Intergovernmental..................................................... 186,353 2,964,074 - - Departmental and other.............................................. - - 7,411 Contributions............................................................ - 386,620 Investment income.................................................... 10 - - TOTAL REVENUES........................................... 186,363 2,964,074 41,597 1,058,950 EXPENDITURES: Current: General government.............................................. 12,981 - 59,950 16,061 Public safety......................................................... 105,449 - - 546,279 Education............................................................ - 3,006,638 - Public works......................................................... 4,496 - 5,691 Human services.................................................... 43,985 407,185 Culture and recreation............................................ 56,394 - - TOTAL EXPENDITURES.................................... 223,305 3,006,638 59,950 975,216 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES............................... (36,942) (42,564) (18,353) 83,734 OTHER FINANCING SOURCES(USES): Issuance of bonds and notes....................................... - Transfers in.............................................................. Transfers out............................................................ (5,455) TOTAL OTHER FINANCING SOURCES(USES)..... (5,455) NET CHANGE IN FUND BALANCES............................... (36,942) (42,564) (18,353) 78,279 FUND BALANCES AT BEGINNING OF YEAR.................... 146,926 50,317 151,092 436,454 FUND BALANCES AT END OF YEAR.............................. $ 109,984 $ 7,753 $ 132,739 $ 514,733 Town of North Andover, Massachusetts 82 Comprehensive Annual Financial Report Special Revenue Funds Education School Other Affordable Other Revolving Lunch Special Revenue Housing Trust Funds Funds Funds Trust Fund Funds Sub-total $ - $ - $ 141,001 $ $ $ 141,001 2,218,589 1,127,012 15,500 3,930,085 295,856 - - 433,388 - 90,488 40,153 3,281,068 6,000 - 25,000 - 38,411 137,098 - 224,395 - - 748,113 - 4 - 6,424 101 6,539 2,657,543 1,127,016 471,384 31,424 40,254 8,578,605 - - 8,852 114,461 - 212,305 - - 9,135 - 25,493 686,356 2,568,617 1,118,876 6,528 - 6,700,659 - - 57,741 67,928 32,399 483,569 - - 62,502 - 118,896 2,568,617 1,118,876 177,157 114,461 25,493 8,269,713 88,926 8,140 294,227 (83,037) 14,761 308,892 (62,700) (141,336) (209,491) (62,700) (141,336) (209,491) 26,226 8,140 152,891 (83,037) 14,761 99,401 179,610 23,642 703,779 1,057,308 60,604 2,809,732 $ 205,836 $ 31,782 $ 856,670 $ 974,271 $ 75,365 $ 2,909,133 (Continued) Town of North Andover, Massachusetts 83 Comprehensive Annual Financial Report NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30,2014 Capital Project Funds Permanent Funds Total Education Permanent Library Nonmajor Capital Funds Permanent Governmental Projects Principal Funds Sub-total Funds REVENUES: Payments in lieu of taxes..............................................$ $ $ $ $ 141,001 Charges for services.................................................... 3,930,085 Licenses and permits................................................... 433,388 Intergovernmental....................................................... 30,932 3,312,000 Departmental and other................................................ - 38,411 Contributions.............................................................. 9,457 9,457 757,570 Investment income...................................................... - 15 56,234 56,249 62,788 TOTAL REVENUES............................................ 30,932 15 65,691 65,706 8,675,243 EXPENDITURES: Current: General government................................................ - - - - 212,305 Public safety........................................................... - 686,356 Education.............................................................. 109,205 6,809,864 Public works........................................................... - 67,928 Human services...................................................... - - 483,569 Culture and recreation.............................................. 38,369 38,369 157,265 TOTAL EXPENDITURES...................................... 109,205 - 38,369 38,369 8,417,287 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER)EXPENDITURES................................. (78,273) 15 27,322 27,337 257,956 OTHER FINANCING SOURCES(USES): Issuance of bonds and notes......................................... 219,822 - - - 219,822 Transfers in............................................................... 49,825 49,825 Transfers out.............................................................. (50,436) (259,927) TOTAL OTHER FINANCING SOURCES(USES)......, 219,211 - - - 9,720 NET CHANGE IN FUND BALANCES................................. 140,938 15 27,322 27,337 267,676 FUND BALANCES AT BEGINNING OF YEAR..................... 9,689 29,200 708,062 737,262 3,556,683 FUND BALANCES AT END OF YEAR................................$ 150,627 $ 29,215 $ 735,384 $ 764,599 $ 3,824,359 (Concluded) Town of North Andover, Massachusetts 84 Comprehensive Annual Financial Report Agency Fund This fund is used to account for assets held by the Town in a trustee capacity or as an agent for individuals, private organizations, and other governmental units. The majority of the assets in the agency fund relate to conservation, highway and planning board bid deposits as well as student activity deposits. Town of North Andover, Massachusetts 85 Comprehensive Annual Financial Report AGENCYFUND STATEMENT OF CHANGES IN ASSETS AND LIABILITIES YEAR ENDED JUNE 30, 2014 Beginning End of Year Additions Deletions of Year ASSETS CURRENT: Cash and cash equivalents................... $ 4,178,183 $ 4,338,281 $ (4,358,126) $ 4,158,338 LIABILITIES Guaranteed deposits........................... $ 3,612,190 $ 2,450,034 (2,559,642) $ 3,502,582 Other deposits.................................... 359,357 171,352 (146,871) 383,838 Student Activities................................ 206,636 1,716,895 (1,651,613) 271,918 TOTAL LIABILITIES................................$ 4,178,183 $ 4,338,281 $ (4,358,126) $ 4,158,338 Town of North Andover, Massachusetts 86 Comprehensive Annual Financial Report Statistics Section ON !ilia! ,a , 9 � I WL North Andover Historical Society Courtesy of Brenda Tomasz Statistical Section This part of the comprehensive annual 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. Financial Trends • These schedules contain trend information to help the reader understand how the Town's financial performance and well-being have changed over time. Revenue Capacity • These schedules contain information to help the reader assess the Town's most significant local revenue source, the property tax. Debt Capacity • These schedules present information to help the reader 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 Information • These schedules offer demographic and economic indicators to help the reader understand the environment within which the Town's financial activities take place. Operating Information • These schedules contain service and infrastructure data to 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 comprehensive annual financial reports for the relevant year. The Town implemented GASB Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. Town of North Andover, Massachusetts 87 Comprehensive Annual Financial Report Net Positions By Component Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmental activities Net investment in capital assets..............................$ 83,953,156 $ 88,197,300 $ 96,211,743 $ 98,468,392 $ 98,988,296 $ 100,868,439 $ 102,754,256 $ 105,155,466 $ 106,453,985 $ 106,117,880 Restricted.......................................................... 1,406,105 3,923,673 5,327,670 8,491,986 8,753,852 6,539,198 7,574,263 8,225,177 8,207,148 9,444,583 Unrestricted........................................................ 16,746,454 12,820,381 9,472,994 8,427,511 3,498,800 (2,610,402) (11,696,666) (17,137,468) (20,131,341) (20,876,449) Total governmental activities net position......................... $ 102,105,715 $ 104,941,354 $ 111,012,407 $ 115,387,889 $ 111,240,948 $ 104,797,235 $ 98,631,853 $ 96,243,175 $ 94,529,792 $ 94,686,014 Business-type activities Net investment in capital assets.............................. 18,706,981 22,554,318 28,849,317 29,977,126 32,209,814 32,898,415 36,443,088 37,264,739 40,243,610 42,012,200 Unrestricted........................................................ 8,257,052 7,087,365 2,407,297 3,278,409 1,616,637 3,608,473 2,479,721 4,418,053 4,273,747 5,533,117 Total business-type activities net position.........................$ 26,964,033 $ 29,641,683 $ 31,256,614 $ 33,255,535 $ 33,826,451 $ 36,506,888 $ 38,922,809 $ 41,682,792 $ 44,517,357 $ 47,545,317 Primary government Net investment in capital assets.............................. 102,660,137 110,751,618 125,061,060 128,445,518 131,198,110 133,766,854 139,197,344 142,420,205 146,697,595 148,130,080 Restricted.......................................................... 1,406,105 3,923,673 5,327,670 8,491,986 8,753,852 6,539,198 7,574,263 8,225,177 8,207,148 9,444,583 Unrestricted........................................................ 25,003,506 19,907,746 11,880,291 11,705,920 5,115,437 998,071 (9,216,945) (12,719,415) (15,857,594) (15,343,332) Total primary government net position............................. $ 129,069,748 $ 134,583,037 $ 142,269,021 $ 148,643,424 $ 145,067,399 $ 141,304,123 $ 137,554,662 $ 137,925,967 $ 139,047,149 $ 142,231,331 Town of North Andover, Massachusetts 88 Comprehensive Annual Financial Report Changes in Net Positions Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Expenses Governmental activities: General government............................................... $ 2,622,386 $ 2,779,374 $ 3,299,710 $ 3,531,917 $ 4,123,262 $ 4,021,067 $ 4,559,013 $ 3,794,618 $ 3,665,170 $ 3,685,321 Public safety......................................................... 11,147,327 12,011,224 12,241,105 12,929,068 14,509,962 14,654,536 15,134,400 14,825,939 15,017,342 15,242,286 Education............................................................. 46,457,274 50,523,956 52,015,222 57,679,448 64,495,293 66,409,142 70,860,920 69,540,668 70,340,318 70,591,546 Public works.......................................................... 6,566,414 4,466,922 5,496,347 6,097,048 7,382,073 6,227,974 6,485,227 5,715,405 6,963,935 6,719,915 Health and human services...................................... 1,491,158 1,617,246 1,697,653 1,766,854 2,041,742 2,054,742 2,080,778 2,146,195 2,162,118 2,228,573 Culture and recreation............................................. 2,172,150 2,494,159 1,931,878 1,953,619 2,052,225 2,109,924 2,192,035 2,015,651 1,679,351 1,453,223 Support services.................................................... - - - - - - - 1,266,046 1,281,204 1,444,333 Interest................................................................ 3,264,870 3,636,270 2,720,892 2,178,255 1,202,891 1,506,325 1,370,287 1,354,251 1,192,955 1,025,900 Total government activities expenses................................. 73,721,579 77,529,151 79,402,807 86,136,209 95,807,448 96,983,710 102,682,660 100,658,773 102,302,393 102,391,097 Business-type activities: Water................................................................... 2,761,393 2,946,719 2,929,823 3,222,251 3,591,641 2,972,303 3,188,559 3,180,102 3,033,371 3,200,373 Sewer.................................................................. 2,822,651 3,076,592 3,418,575 3,423,734 3,878,647 3,644,464 3,877,585 3,572,401 3,517,562 3,238,708 Osgood Hill........................................................... 416,628 502,926 515,640 474,413 381,463 259,595 325,092 295,606 332,189 344,001 Total business-type activities expenses.............................. 6,000,672 6,526,237 6,864,038 7,120,398 7,851,751 6,876,362 7,391,236 7,048,109 6,883,122 6,783,082 Total primary government expenses.................................. $ 79,722,251 $ 84,055,388 $ 86,266,845 $ 93,256,607 $ 103,659,199 $ 103,860,072 $ 110,073,896 $ 107,706,882 $ 109,185,515 $ 109,174,179 Program Revenues Governmental activities: Public safety charges for services.............................. $ 2,402,044 $ 3,527,254 $ 2,609,422 $ 3,028,126 $ 2,682,759 $ 2,266,216 $ 2,536,254 $ 2,851,539 $ 2,798,269 $ 2,495,472 Education charges for services................................. 2,355,214 2,366,543 2,137,410 3,328,079 3,204,499 3,229,655 3,165,842 3,443,280 3,409,555 3,648,664 Other charges for services....................................... 1,762,520 1,689,807 1,699,407 982,438 670,781 716,819 862,199 875,080 767,042 866,165 Education operating grants and contributions............... 10,275,091 10,938,343 12,305,566 13,281,265 14,454,951 15,206,781 17,480,918 16,720,192 17,289,331 17,983,068 Other operating grants and contributions..................... 2,641,334 1,878,664 1,854,031 3,213,290 2,048,360 1,241,709 1,372,095 1,489,093 1,302,947 1,010,960 Education government capital grant and contributions.... 34,618,264 - 2,985,922 - - - - 960,154 696,209 30,932 Public works capital grant and contributions................. 399,865 86,308 287,274 975,861 2,235,219 455,022 1,026,557 - 1,449,134 949,933 Other capital grant and contributions.......................... - - - - 7,792 - 829,740 579,896 411,518 826,907 Total government activities program revenues...................... 54,454,332 20,486,919 23,879,032 24,809,059 25,304,361 23,116,202 27,273,605 26,919,234 28,124,005 27,812,101 Business-type activities: Water charges for services....................................... 4,217,638 5,267,016 5,174,840 5,670,444 4,541,749 5,327,867 5,750,569 5,436,873 5,387,685 5,237,290 Sewer charges for services...................................... 3,937,143 3,536,767 3,425,722 3,873,561 4,294,388 4,682,139 4,797,301 5,015,808 4,964,813 4,945,962 Osgood Hill charges for services............................... 426,494 507,693 471,173 257,694 193,103 285,188 239,200 280,068 335,770 337,551 Other operating grants and contributions..................... 272,260 414,429 227,214 252,266 201,398 177,861 141,724 234,388 127,545 122,529 Total business-type activities program revenues................... 8,853,535 9,725,905 9,298,949 10,053,965 9,230,638 10,473,055 10,928,794 10,967,137 10,815,813 10,643,332 Total primary government program revenues....................... $ 63,307,867 $ 30,212,824 $ 33,177,981 $ 34,863,024 $ 34,534,999 $ 33,589,257 $ 38,202,399 $ 37,886,371 $ 38,939,818 $ 38,455,433 Net Revenue Governmental activities................................................... $ (19,267,247) $ (57,042,232) $ (55,523,775) $ (61,327,150) $ (70,503,087) $ (73,867,508) $ (75,409,055) $ (73,739,539) $ (74,178,388) $ (74,578,996) Business-type activities................................................... 2,852,863 3,199,668 2,434,911 2,933,567 1,378,887 3,596,693 3,537,558 3,919,028 3,932,691 3,860,250 Total primary government net revenue...... $ (16,414,384) $ (53,842,564) $ (53,088,864) $ (58,393,583) $ (69,124,200) $ (70,270,815) $ (71,871,497) $ (69,820,511) $ (70,245,697) $ (70,718,746) (Continued) Town of North Andover, Massachusetts 89 Comprehensive Annual Financial Report Changes in Net Positions Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Revenues and other Changes in Net Positions Governmental activities: Real estate and personal property taxes, net of tax refunds payable....................................... $ 45,446,613 $ 47,687,495 $ 49,146,112 $ 52,131,731 $ 54,443,171 $ 55,855,205 $ 57,726,043 $ 60,060,304 $ 60,284,114 $ 62,195,623 Tax liens............................................................... 342,485 365,140 290,057 293,055 85,265 908,371 576,219 355,176 401,204 570,085 Motor vehicle and other excise taxes.......................... 3,829,751 4,076,385 3,432,710 4,148,303 4,033,853 3,165,811 3,748,360 3,923,189 4,462,710 4,673,160 Penalties and interest on taxes................................. 230,649 410,394 305,539 292,512 307,534 277,662 223,861 258,471 316,019 501,903 Payment in lieu of taxes........................................... 1,291,432 1,441,209 1,623,750 1,704,677 1,815,176 1,838,821 1,867,094 1,903,510 1,974,424 2,008,020 Community preservation surcharge............................ 1,076,634 1,196,950 1,249,235 1,240,697 511,703 1,263,566 1,312,401 1,363,553 1,390,831 1,433,013 Grants and contributions not restricted to specific programs................................................. 3,345,265 3,297,899 3,589,640 4,071,414 3,847,997 2,748,904 2,222,543 2,133,066 2,338,662 2,279,506 Unrestricted investment income................................. 367,927 880,381 1,136,035 888,152 504,476 449,199 445,515 194,547 198,915 241,618 Miscellaneous........................................................ - - 1,770 - - - - - - - Transfers.............................................................. 896,724 522,018 819,980 931,091 807,971 916,256 1,121,637 1,159,045 1,098,126 832,290 Total governmental activities............................................ 56,827,480 59,877,871 61,594,828 65,701,632 66,357,146 67,423,795 69,243,673 71,350,861 72,465,005 74,735,218 Business-type activities: Transfers.............................................................. (896,724) (522,018) (819,980) (931,091) (807,971) (916,256) (1,121,637) (1,159,045) (1,098,126) (832,290) Total primary government general revenues and other changes in net positions.......................................... $ 55,930,756 $ 59,355,853 $ 60,774,848 $ 64,770,541 $ 65,549,175 $ 66,507,539 $ 68,122,036 $ 70,191,816 $ 71,366,879 $ 73,902,928 Changes in Net Position Governmental activities................................................... $ 37,560,233 $ 2,835,639 $ 6,071,053 $ 4,374,482 $ (4,145,941) $ (6,443,713) $ (6,165,382) $ (2,388,678) $ (1,713,383) $ 156,222 Business-type activities................................................... 1,956,139 2,677,650 1,614,931 2,002,476 570,916 2,680,437 2,415,921 2,759,983 2,834,565 3,027,960 Total primary government changes in net positions............... $ 39,516,372 $ 5,513,289 $ 7,685,984 $ 6,376,958 $ (3,575,025) $ (3,763,276) $ (3,749,461) $ 371,305 $ 1,121,182 $ 3,184,182 * In 2012,the Town consolidated support services into a separate functional line-item. Prior to 2012,support services were blended within the general government functional line-item. (Concluded) Town of North Andover, Massachusetts 90 Comprehensive Annual Financial Report Fund Balances,Governmental Funds Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Fund Reserved.................................... $ 275,028 $ 1,015,945 $ 1,670,515 $ 1,927,584 $ 1,422,665 $ 1,369,510 $ $ $ $ Unreserved.................................. 3,477,419 4,590,078 2,799,586 1,684,514 168,993 658,689 Restricted.................................... - - - - - - 1,033,892 964,966 896,040 762,324 Assigned..................................... 184,314 411,861 173,989 366,486 Unassigned................................. 3,455,866 5,412,549 6,618,601 8,981,055 Total general fund............................. $ 3,752,447 $ 5,606,023 $ 4,470,101 $ 3,612,098 $ 1,591,658 $ 2,028,199 $ 4,674,072 $ 6,789,376 $ 7,688,630 $ 10,109,865 All Other Governmental Funds Reserved.................................... $ 457,221 $ 426,777 $ 584,112 $ 1,619,701 $ 29,028 $ 29,111 $ - $ - $ - $ - Unreserved,reported in: Special revenue funds.............. 2,209,480 4,201,047 5,607,342 6,917,728 9,953,042 9,055,517 Capital projects funds............... (30,799,369) (5,833,628) 3,369,779 1,532,240 2,107,039 3,163,123 Permanent funds..................... 382,071 426,611 533,644 531,528 447,756 459,616 - - - - Nonspendable.............................. - - - - - - 29,134 29,184 29,200 29,215 Restricted.................................... 10,315,497 11,714,886 9,705,816 14,021,545 Unassigned................................. (193,926) - Total all other governmental funds........ $ (27,750,597) $ (779,193) $ 10,094,877 $ 10,601,197 $ 12,536,865 $ 12,707,367 $ 10,344,631 $ 11,744,070 $ 9,541,090 $ 14,050,760 The Town implemented GASB 54 in year 2011,fund balances prior to year 2011 have been reported in the pre-GASB 54 format. Town of North Andover, Massachusetts 91 Comprehensive Annual Financial Report Changes in Fund Balances,Governmental Funds Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Revenues: Real estate and personal property taxes, net of tax refunds................................................ $ 45,008,746 $ 47,835,561 $ 48,777,621 $ 51,648,818 $ 54,496,257 $ 56,703,210 $ 57,423,755 $ 59,803,225 $ 60,311,614 $ 61,992,217 Motor vehicle and other excise taxes........................... 3,784,239 4,010,270 3,477,581 4,068,018 3,727,728 3,515,205 3,790,515 3,917,020 4,260,419 4,866,192 Intergovernmental................................................... 16,886,075 43,747,281 30,272,942 30,502,211 20,016,089 19,834,322 21,826,135 22,241,592 22,474,244 22,294,860 Departmental and other............................................ 9,665,052 11,055,480 10,020,527 11,396,570 11,108,856 10,602,746 11,104,508 11,466,482 11,500,455 12,439,870 Interest income....................................................... 472,635 1,004,421 1,343,385 1,062,356 521,278 516,898 445,515 194,547 198,915 241,618 Total Revenue................................................ 75,816,747 107,653,013 93,892,056 98,677,973 89,870,208 91,172,381 94,590,428 97,622,866 98,745,647 101,834,757 Expenditures: General government................................................ 3,461,227 2,437,000 4,255,964 3,262,011 2,949,377 2,710,315 3,102,753 2,864,390 2,317,174 5,850,866 Public safety.......................................................... 9,633,069 9,131,365 9,209,888 10,619,206 12,133,006 11,844,721 13,085,968 9,430,923 10,115,031 10,317,017 Education.............................................................. 40,003,409 37,593,675 37,410,950 42,270,522 45,280,664 44,325,754 46,382,790 45,775,410 48,191,658 46,902,298 Public works.......................................................... 6,210,568 3,107,989 4,577,335 6,541,888 6,238,578 5,669,065 5,405,654 5,409,310 6,024,483 6,189,779 Health and human services....................................... 970,184 1,096,011 1,098,927 1,182,780 1,664,490 1,363,830 1,347,082 1,428,586 1,462,526 1,568,456 Culture and recreation.............................................. 4,497,161 2,006,980 1,468,542 1,544,228 1,642,496 3,903,682 2,325,296 2,212,683 2,995,960 2,139,225 Support services..................................................... - - - - - - - 1,039,174 1,101,281 1,342,321 Pension benefits..................................................... 6,048,643 6,544,692 7,212,850 7,978,462 8,632,667 8,959,530 9,537,508 9,969,374 10,452,145 10,837,358 Property and liability insurance................................... 338,998 340,145 415,406 322,592 321,675 294,085 276,258 271,059 290,896 301,405 Employee benefits................................................... 6,411,883 6,842,992 7,957,488 8,890,836 9,389,284 7,636,441 9,415,481 11,100,080 11,250,204 11,599,341 State and county charges......................................... 1,239,139 1,508,576 2,170,566 2,200,498 2,267,181 2,307,758 2,115,484 1,813,511 1,788,615 1,254,988 Debt service: Principal............................................................ 5,792,801 5,784,931 6,588,374 6,094,566 6,362,702 5,348,471 5,574,681 5,995,123 5,219,330 5,366,746 Principal-current refunding................................... - - - - - - - - - 4,168,651 Interest.............................................................. 3,311,451 3,526,616 2,742,094 2,180,794 1,275,869 1,299,581 1,352,790 1,254,252 1,114,259 957,719 Total Expenditures.................................................. 87,918,533 79,920,972 85,108,384 93,088,383 98,157,989 95,663,233 99,921,745 98,563,875 102,323,562 108,796,170 Excess of revenues over(under)expenditures.............. (12,101,786) 27,732,041 8,783,672 5,589,590 (8,287,781) (4,490,852) (5,331,317) (941,009) (3,577,915) (6,961,413) Other Financing Sources(Uses) Issuance of bonds................................................... 11,205,261 495,000 129,000 1,486,026 7,122,134 4,171,222 4,365,353 3,255,348 926,199 8,181,497 Issuance of refunding bonds...................................... - - - 12,500,000 - - - - - 4,010,000 Premium from issuance of bonds................................ 527,918 75,921 3,726 12,615 202,338 10,417 127,464 41,359 24,215 143,149 Premium from issuance of refunding bonds.................. - - - 182,792 - - - - - 218,946 Payments to refunded bond escrow agent.................... - (21,053,797) - Sale of capital assets............................................... - - 1,770 - - - - - - - Transfers in............................................................ 1,656,438 1,687,539 1,393,334 2,555,701 1,100,814 3,121,748 1,322,517 1,819,046 1,556,007 1,598,653 Transfers out......................................................... (759,714) (1,165,521) (573,354) (1,624,610) (222,277) (2,205,492) (200,880) (660,001) (232,232) (259,927) Total other financing sources(uses)................................ 12,629,903 1,092,939 954,476 (5,941,273) 8,203,009 5,097,895 5,614,454 4,455,752 2,274,189 13,892,318 Net change in fund balance........................................... $ 528,117 $ 28,824,980 $ 9,738,148 $ (351,683) $ (84,772) 607,043 $ 283,137 $ 3,514,743 $ (1,303,726) $ 6,930,905 Debt service as a percentage of noncapita I expenditures..... 13.88% 13.80% 11.23% 9.23% 8.17% 7.49% 7.45% 7.71% 6.59% 6.44% In 2012,the Town consolidated support services into a separate functional line-item. Prior to 2012,support services were blended within the general government functional line-item. Town of North Andover, Massachusetts 92 Comprehensive Annual Financial Report Assessed Value and Actual Value of Taxable Property by Classification and Tax Rates Last Ten Years Assessed and Actual Values and Tax Rates Total Total Total Residential Residential Commercial Industrial Personal Commercial Commercial Direct Town Year Value Tax Rate Value Value Property Value Tax Rate Rate Value 2005 $ 3,437,798,500 $ 11.52 $ 239,818,629 $ 176,063,300 $ 77,626,380 $ 493,508,309 $ 12.59 $ 11.65 $ 3,931,306,809 2006 $ 3,743,701,112 $ 11.14 $ 240,357,988 $ 175,698,300 $ 81,016,630 $ 497,072,918 $ 13.47 $ 11.41 $ 4,240,774,030 2007 (1) $ 4,113,245,116 $ 10.45 $ 286,085,303 $ 174,371,400 $ 77,931,290 $ 538,387,993 $ 12.63 $ 10.70 $ 4,651,633,109 2008 $ 4,001,584,703 $ 11.40 $ 283,789,944 $ 167,088,600 $ 82,002,220 $ 532,880,764 $ 13.78 $ 11.68 $ 4,534,465,467 2009 $ 3,910,976,509 $ 11.76 $ 280,591,491 $ 163,741,100 $ 99,814,430 $ 544,147,021 $ 16.69 $ 12.36 $ 4,455,123,530 2010 (1) $ 3,670,178,348 $ 12.74 $ 286,494,949 $ 168,247,500 $ 108,138,260 $ 562,880,709 $ 17.69 $ 13.40 $ 4,233,059,057 2011 $ 3,563,558,199 $ 13.52 $ 283,140,851 $ 162,024,800 $ 112,827,760 $ 557,993,411 $ 18.63 $ 14.21 $ 4,121,551,610 2012 $ 3,586,332,274 $ 13.92 $ 278,839,111 $ 158,456,800 $ 121,400,010 $ 558,695,921 $ 19.16 $ 14.63 $ 4,145,028,195 2013 (1) $ 3,713,065,744 $ 13.72 $ 278,124,243 $ 161,446,600 $ 116,997,715 $ 556,568,558 $ 18.85 $ 14.39 $ 4,269,634,302 2014 $ 3,652,658,906 $ 14.41 $ 276,804,384 $ 155,524,200 $ 123,301,890 $ 555,630,474 $ 19.45 $ 15.08 $ 4,208,289,380 Total Assessed Value by Classification Total Assessed Value by Classification Year Ended June 30,2013 Year Ended June 30,2014 4%3% 3% 4% e ®Residential ®Commercial ❑Industrial ❑Personal Property ®Residential -Commercial oIndustrial oPersonal Property Commercial Value as % of Total Value 18.0% 16.0% 14.0% 12.0% � � 10.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1)Revaluation year. Source: Assessor's Department,Town of North Andover All property in the Commonwealth of Massachusetts is assessed at 100%of fair cash value. Note:Chapter 59,Section 21C of the Massachusetts General Laws,known as"Proposition 2 1/2",imposes 2 separate limits on the annual tax levy of the Town. The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. The secondary limitation is that the tax levy cannot exceed the maximum levy limit for the preceding year as determined by the State Commissioner of Revenue by more than 2 1/2 percent,subject to an exception for property added to the tax rolls and for certain substantial valuation increases other than as part of a general revaluation. The secondary limit may be exceeded in any year by a majority vote of the voters,however it cannot exceed the primary limitation. Town of North Andover, Massachusetts 93 Comprehensive Annual Financial Report Principal Taxpayers Current Year and Nine Years Ago 2014 2005 Percentage of Percentage of Total Taxable Total Taxable Property Assessed Assessed Assessed Assessed Name Type Valuation Rank Value Valuation Rank Value MCO(Royal Crest) Apartments $ 53,771,450 1 1.30% $ 0.00% National Grid Utility $ 43,178,590 2 1.05% $ - 0.00% Edgewood Retirement Community Congregate Care/Nursing Home $ 37,808,040 3 0.92% $ 27,110,000 3 0.60% Mansur Investment Office/Manufacturing $ 22,716,500 4 0.55% $ - 0.00% Delta/Delta Realty Trust Shopping Mall $ 19,754,350 5 0.48% $ 15,640,700 6 0.35% Ozzy Properties Office $ 15,779,400 6 0.38% $ - 0.00 Wood Ridge Homes Co-op Housing $ 13,249,140 7 0.32% $ 10,881,500 7 0.24% RCG North Andover Mills Office $ 12,841,500 8 0.31% $ - 0.00% Eaglewood Properties Retail $ 9,234,200 9 0.22% $ 0.00% North Andover 2004 Office $ 6,691,600 10 0.16% $ - 0.00 NAM Partners Limited Office/Manufacturing $ - - $ 63,891,500 1 1.42 T.J.Flatley Co. Apartments $ $ 60,137,800 2 1.34% Lucent Technologies Manufacturing $ $ 25,207,800 4 0.56% Mass Electric Utility $ $ 4,033,700 10 0.09% Jefferson Equity Partners Office Par $ $ 19,836,900 5 0.44 BF No,Andover Office Park Office $ $ 9,763,400 8 0.22 D&L Andover Prop.LLC Office Park $ - $ 9,294,300 9 0.21 Totals $235,024,770 5.70% $245,797,600 5.47% Source: Official Statement for Sale of Bonds Town of North Andover, Massachusetts 94 Comprehensive Annual Financial Report Property Tax Levies and Collections Last Ten Years Percent of (2) Less (2) First Year Percent of Delinquent Total Total Tax Total Abatements& Net Current Net Levy Tax Tax Collections to Year Tax Levy Exemptions Tax Levy Tax Collections Collected Collections Collections Net Tax Levy 2005 $ 45,816,708 $ 392,122 $ 45,424,586 $ 44,793,849 98.61% $ 531,598 $ 45,325,447 99.78% 2006 $ 48,400,403 $ 590,643 $ 47,809,760 $ 47,500,514 99.35% $ 276,489 $ 47,777,003 99.93% 2007 (1) $ 49,783,252 $ 461,962 $ 49,321,290 $ 48,595,456 98.53% $ 629,957 $ 49,225,413 99.81% 2008 $ 52,961,163 $ 353,952 $ 52,607,211 $ 51,348,979 97.61% $ 981,309 $ 52,330,288 99.47% 2009 $ 55,074,898 $ 319,197 $ 54,755,701 $ 53,651,783 97.98% $ 675,917 $ 54,327,700 99.22% 2010 (1) $ 56,715,432 $ 371,669 $ 56,343,763 $ 55,671,800 98.81% $ 179,088 $ 55,850,888 99.13% 2011 $ 58,574,724 $ 316,384 $ 58,258,340 $ 57,441,580 98.60% $ 368,082 $ 57,809,662 99.23% 2012 $ 60,626,359 $ 459,973 $ 60,166,386 $ 59,454,694 98.82% $ 424,999 $ 59,879,693 99.52% 2013 (1) $ 61,434,579 $ 629,707 $ 60,804,872 $ 60,215,656 99.03% $ 174,857 $ 60,390,513 99.32% 2014 $ 63,441,828 $ 564,134 $ 62,877,693 $ 62,596,596 99.55% $ - $ 62,596,596 99.55% Real Estate Tax Levies vs.First Year Collections Last Ten Years 110,000,000 100,000,000 90,000,000 80,000,000 70,000,000 c 60,000,000 0 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 (1)Revaluation year. (2)Includes tax liens. Source:Assessor's Department,Town of North Andover Town of North Andover, Massachusetts 95 Comprehensive Annual Financial Report Ratios of Outstanding Debt and General Bonded Debt Last Ten Years Governmental Activities General Percentage Percentage U.S.Census Personal Assessed Obligation Per of Personal of Assessed Year Population Income Value Bonds Capita Income Value 2005 27,025 $ 1,044,969,910 $ 3,931,306,809 $ 62,326,700 $ 2,306 5.96% 1.59% 2006 27,390 $ 1,080,264,953 $ 4,240,774,030 $ 57,036,769 $ 2,082 5.28% 1.34% 2007 27,412 $ 1,102,755,288 $ 4,651,633,109 $ 50,577,395 $ 1,845 4.59% 1.09% 2008 27,566 $ 1,131,129,553 $ 4,534,465,467 $ 38,148,855 $ 1,384 3.37% 0.84% 2009 27,753 $ 1,161,578,875 $ 4,455,123,530 $ 38,908,287 $ 1,402 3.35% 0.87% 2010 28,352 $ 1,210,382,515 $ 4,233,059,057 $ 37,731,038 $ 1,331 3.12% 0.89% 2011 28,352 $ 1,234,590,165 $ 4,121,551,610 $ 36,521,710 $ 1,288 2.96% 0.89% 2012 28,352 $ 1,259,281,969 $ 4,145,028,195 $ 33,781,935 $ 1,192 2.68% 0.81% 2013 28,352 $ 1,284,467,608 $ 4,269,634,302 $ 29,488,804 $ 1,040 2.30% 0.69% 2014 28,422 $ 1,339,386,750 $ 4,208,289,380 $ 32,144,904 $ 1,131 2.40% 0.76% Business-type Activities(1) Total Primary Government General Total Obligation Capital Net Debt Per Year Bonds Leases Outstanding Capita 2005 $ 33,332,542 $ - $ 95,659,242 $ 3,540 2006 $ 30,370,700 $ - $ 87,407,469 $ 3,191 2007 $ 30,818,817 $ - $ 81,396,212 $ 2,969 2008 $ 35,338,363 $ - $ 73,487,218 $ 2,666 2009 $ 32,424,871 $ - $ 71,333,158 $ 2,570 2010 $ 30,944,105 $ - $ 68,675,143 $ 2,422 2011 $ 27,115,434 $ - $ 63,637,144 $ 2,245 2012 $ 24,743,238 $ - $ 58,525,173 $ 2,064 2013 $ 23,085,993 $ - $ 52,574,797 $ 1,854 2014 $ 19,010,294 $ - $ 51,155,198 $ 1,800 (1)Water and Sewer Funds Source: Audited Financial Statements, U.S. Census, Division of Local Services Town of North Andover, Massachusetts 96 Comprehensive Annual Financial Report Direct and Overlapping Governmental Activities Debt As of June 30, 2014 Estimated Estimated Share of Debt Percentage Overlapping Town of North Andover, Massachusetts Outstanding Applicable Debt Debt repaid with property taxes Greater Lawrence Regional Vocational Technical School District... $ 21,855,000 0.8% $ 259,779 Greater Lawrence Sanitary District.......................................... 29,694,674 6.4% 1,655,000 Subtotal, overlapping debt.......................................................... 1,914,779 Town direct debt....................................................................... 32,144,904 Total direct and overlapping debt................................................. $ 34,059,683 Methodologies used to calculate overlapping debt: Greater Lawrence Regional Vocational Technical School District: The Town's overlap is based on pupil enrollment. Greater Lawrence Sanitary District: The Town's overlap is based on the percent of wastewater received by the District. Source: Official Statement for Sale of Bonds Note: Overlapping governments are those that coincide, at least in part, with geographic boundaries of the Town. This schedule estimates the portion of outstanding debt of those overlapping governments that is borne by the taxpayers of the town. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the property taxpayers should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Town of North Andover, Massachusetts 97 Comprehensive Annual Financial Report Computation of Legal Debt Margin Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Equalized Valuation................................. $ 4,010,449,200 $ 4,648,968,500 $ 4,648,968,500 $ 4,648,968,500 $ 4,913,038,200 $ 4,913,038,200 $ 4,460,344,100 $ 4,460,344,100 $ 4,446,186,000 $ 4,446,186,000 Debt Limit-5%of Equalized Valuation......... $ 200,522,460 $ 232,448,425 $ 232,448,425 $ 232,448,425 $ 245,651,910 $ 245,651,910 $ 223,017,205 $ 223,017,205 $ 222,309,300 $ 222,309,300 Less: Outstanding debt applicable to limit........... 56,138,372 52,713,614 48,332,581 44,809,719 45,804,952 44,477,844 45,590,789 35,050,079 30,545,849 33,116,011 Authorized and unissued debt.................. 41,577,757 13,747,450 7,993,738 12,765,223 10,111,025 3,391,000 6,688,916 1,970,568 182,659 1,124,027 Legal debt margin.................................... $ 102,806,331 $ 165,987,361 $ 176,122,106 $ 174,873,483 $ 189,735,933 $ 197,783,066 $ 170,737,500 $ 185,996,558 $ 191,580,792 $ 188,069,262 Total debt applicable to the limit as a percentage of debt limit.................... 48.73% 28.59% 24.23% 24.77% 22.76% 19.49% 23.44% 16.60% 13.82% 15.40 Source: Official Statement for Sale of Bonds Town of North Andover, Massachusetts 98 Comprehensive Annual Financial Report Demographic and Economic Statistics Last Ten Years Per Capita Population Personal Personal Median Unemployment Year Estimates Income Income Age Rate 2005 27,025 $ 1,044,969,910 $ 38,667 37 4.2% 2006 27,390 $ 1,080,264,953 $ 39,440 37 4.1% 2007 27,412 $ 1,102,755,288 $ 40,229 37 3.9% 2008 27,566 $ 1,131,129,553 $ 41,034 37 4.6% 2009 27,753 $ 1,161,578,875 $ 41,854 37 7.7% 2010 28,352 $ 1,210,382,515 $ 42,691 37 7.3% 2011 28,352 $ 1,234,590,165 $ 43,545 37 5.9% 2012 28,352 $ 1,259,281,969 $ 44,416 37 5.2% 2013 28,352 $ 1,284,467,608 $ 45,304 37 5.2% 2014 28,422 $ 1,339,386,750 $ 47,125 37 5.7% Source: Commonwealth of Mass, Division of Local Services, Executive Office of Labor and Workforce Development. Median age is based on most recent census data. Town of North Andover, Massachusetts 99 Comprehensive Annual Financial Report Principal Employers(excluding Town) Current Year and Nine Years Ago 2014 2005 Nature Percentage of Percentage of of Total Town Total Town Employer Business Employees Rank Employment Employees Rank Employment Merrimack College Higher Education 675 1 2% 450 4 2% Demoulas Supermarkets,Inc. Grocery Store 400 2 1% 230 9 1% Converse,Inc Shoe Manufacturing 350 3 1% n/a n/a n/a Edgewood Retirement Community Heathcare 345 4 1% n/a n/a n/a Watts Regulators Manufacturing 250 5 1% n/a n/a n/a National Grid(formely Mass Electic) Utility Services 225 6 1% 300 6 1% Lawrence Eagle Tribune Newspaper 205 7 1% 375 5 1% Brooks School Education 185 8 1% n/a n/a n/a Genesis Healthcare Healthcare 170 9 1% n/a n/a n/a Stop&Shop Grocery Store 150 10 1% n/a n/a n/a Lucent Technoligies Manufacturing n/a n/a n/a 500 3 2% Borden Chemical Chemical Manufacturing n/a n/a n/a 600 1 2% A.E.G Schneider Electronic Controls n/a n/a n/a 540 2 2% Sweetheart Plastics Plastics Manufacturing n/a n/a n/a 300 7 1% Morton International Inc Manufacturing n/a n/a n/a 250 8 1% Solectron Corp Contractor n/a n/a n/a 200 10 1% Source:Massachusetts Department of Workforce Development Town of North Andover, Massachusetts 100 Comprehensive Annual Financial Report Full-Time Equivalent Town Employees Last Ten Years Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Full-Time Equivalents Town................................................. 26 26 25 25 25 26 26 27 26 26 Public Safety....................................... 112 113 112 113 113 114 114 112 112 112 School................................................ 443 441 441 442 446 449 451 443 479 479 Public works........................................ 26 25 24 24 23 23 23 23 23 23 Community services.............................. 13 13 11 13 13 14 14 14 14 14 Support Services ................................. 2 2 3 4 4 4 8 9 9 9 Library................................................ 11 12 11 12 12 12 12 12 12 12 Total ................................................. 633 631 627 634 637 641 647 639 675 675 Source:Annual Budget Report, School Dept Town of North Andover, Massachusetts 101 Comprehensive Annual Financial Report Operating Indicators by Function/Program Last Ten Years Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Government Population............................................................. 27,025 27,390 27,412 27,566 27,753 28,352 28,352 28,352 28,352 28,422 Registered Voters,Annual Town Election..................... 17,043 17,128 16,400 16,787 18,059 18,169 17,256 18,307 18,598 18,247 Town Clerk Births............................................................... 317 287 304 310 291 285 285 263 289 289 Marriages.......................................................... 123 110 84 87 78 95 84 74 86 115 Deaths.............................................................. 290 257 278 310 268 296 279 183 251 250 Dogs licensed................................................. 1,947 2,033 2,348 2,308 2,396 2,314 2,361 2,110 2,390 2,132 Business Certificates........................................... 105 101 78 89 110 87 91 84 92 87 New Voter Registrations....................................... 387 884 785 1,746 612 1,099 866 1,523 1,450 797 Passport Applications.......................................... 780 1,191 755 783 786 773 745 701 920 885 Public Safety Police Complaints Issued......................................... 659 - 153 127 140 110 86 434 589 n/a Arrests.............................................................. 310 490 410 400 406 409 396 285 364 312 Summons/Hearings............................................. 298 381 385 132 132 368 286 149 214 303 Citations.................................................... 3,451 4,956 5,004 4,399 3,742 3,748 2,953 2,938 3,646 2,707 Parking tickets issued.......................................... 731 1,091 821 920 680 624 645 548 484 n/a Total number of animal complaints......................... 223 195 214 253 271 295 297 383 489 n/a Fire Incidents Fire and Rescue............................................ 2,306 2,335 2,247 1,564 1,612 3,986 1,358 1,515 1,396 1,283 Ambulance Calls............................................. 2,499 2,756 2,624 2,885 2,650 2,616 2,444 2,663 2,745 2,379 Permits/certificates issued Smoke Detectors............................................ 517 520 501 385 406 327 401 322 444 613 Carbon Monoxide Detectors.............................. - - 392 349 377 314 377 295 412 587 Fireworks Display Permits................................ 1 1 1 1 1 1 1 1 1 1 Liquid Gas Storage Permits.............................. 137 148 40 40 28 38 29 19 27 65 Open Air Burning Permits................................. 649 - - - - - - - - 345 Oil Burner Install Permits.................................. 35 51 40 35 46 70 45 26 47 26 Sprinkler Inspections....................................... - 16 81 49 23 13 27 23 32 35 Underground Tank Installation........................... 3 7 7 11 6 22 26 8 6 27 Underground Tank Removals............................ 9 8 3 4 13 6 7 8 2 5 Building Department Permits issued.................................................... 2,487 2,744 2,381 2,456 2,214 2,470 2,375 2,774 3,080 3,207 Education Public school enrollment....................................... 4,491 4,671 4,624 4,546 4,604 4,614 4,638 4,766 4,783 4,801 (continued) Human Services Town of North Andover, Massachusetts 102 Comprehensive Annual Financial Report Operating Indicators by Function/Program Last Ten Years Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Planning Plan reviews...................................................... 16 16 13 12 8 2 5 27 33 18 Board of Health Inspections Food Est.(related permits&reviews) .................. 151 147 192 198 198 179 288 225 234 352 Septic(all related reviews/permits/inspections)..... 135 135 67 53 30 49 46 22 140 202 OFFA Haulers/Trash Haulers&Placards................. 179 159 133 131 257 237 250 256 241 273 Commercial Permits 201 248 264 246 256 254 262 266 241 295 Professional Permits 40 63 70 75 75 83 82 89 53 101 Council on Aging Home delivered meals served................................ 13,829 13,999 17,605 18,527 19,685 15,106 15,541 18,369 17,519 16,230 Outreach Case Management 1,163 2,429 4,510 3,062 4,243 4,532 8,203 8,895 8,094 9,981 Community Education 1,720 1,861 3,619 3,698 3,900 7,078 6,708 7,682 8,635 8,417 Recreation 11,820 10,913 10,781 12,983 8,013 9,961 11,221 21,796 13,414 18,005 Transportation 984 1,008 1,174 2,242 3,379 4,234 4,285 4,598 6,822 6,377 Libraries Program attendance................................................ 2,029 2,571 2,225 3,304 8,060 3,867 4,489 4,122 4,938 6,631 Number of Library Card Holders................................ 25,901 26,483 27,384 28,155 29,883 16,465 16,779 17,604 19,094 20,143 Circulation ............................................................. 218,117 220,477 206,606 201,961 213,598 212,970 213,517 206,362 185,419 176,385 PC&Internet Use................................................... 400 389 698 804 896 914 1,221 1,295 1,273 1,281 Reference Questions................................................ 18,824 20,384 23,380 24,549 26,758 28,069 28,503 29,318 29,081 30,744 Inter-Library Loans 46,796 46,978 53,021 59,939 49,302 54,073 53,367 56,569 57,952 60,559 Youth&Recreation Services Memberships 611 646 656 694 709 691 Summer Programs 75 792 814 854 798 832 Overall Services n/a 2,973 2,961 3,098 3,179 3,215 Sewer Service connections................................................. 81 99 45 32 31 46 58 14 54 43 Water Daily consumption(in million gallons).......................... 2.8640 2.9698 2.8126 2.9669 2.7371 2.8675 3.0120 2.6328 2.2101 3.0600 Source:Various Town Departments and Annual Town Report (concluded) N/A: Information not available Town of North Andover, Massachusetts 103 Comprehensive Annual Financial Report Capital Asset Statistics by Function/Program Last Ten Years Year Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 General Government Number of Buildings.................... 13 13 13 13 13 13 13 13 13 13 Police Number of Stations..................... 1 1 1 1 1 1 1 1 1 1 Fire Number of Stations..................... 2 2 2 2 2 2 2 2 2 2 Education Number of elementary schools...... 5 5 5 5 5 5 5 5 5 5 Number of middle schools............ 1 1 1 1 1 1 1 1 1 1 Number of high schools................ 1 1 1 1 1 1 1 1 1 1 Public Works Water mains (miles)..................... 146 147 147 147 148 148 148 148 148 148 Fire hydrants.............................. 1,470 1,475 1,477 1,479 1,487 1,489 1,511 1,515 1,515 1,515 Sanitary sewers (miles)................ 86 87 88 88 89 89 90 90 90 90 Storm sewers (miles)................... 99 99 99 99 99 99 99 99 99 99 Culture and Recreation Playgrounds.............................. 17 17 17 17 17 17 17 17 17 17 Parks....................................... 2 2 2 2 2 2 2 2 2 2 Playgrounds-Acreage................. 90 90 90 90 90 90 90 90 90 90 Parks-Acreage.......................... 11 11 11 11 11 11 11 11 11 11 Public beaches........................... 1 1 1 1 1 1 1 1 1 1 Ball fields.................................. 39 39 39 39 39 39 39 39 39 39 Tennis courts............................. 6 6 6 6 6 6 6 6 6 6 Source: Various Town Departments N/A: Information not available Town of North Andover, Massachusetts 104 Comprehensive Annual Financial Report Additional Information Town of North Andover, Massachusetts 105 Comprehensive Annual Financial Report ENTERPRISE FUND SCHEDULE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION BUDGETARY BASIS-BUDGET AND ACTUAL YEAR ENDED JUNE 30,2014 Water Fund Amounts Actual Carried Variance Original Final Budgetary Forward To To Final Budget Budget Amounts Next Year Budget OPERATING REVENUES: Charges for services........................................................................ $ 4,864,704 $ 4,864,704 $ 5,252,289 $ $ 387,585 Penalties and interest........................................................................ 20,000 20,000 23,849 3,849 TOTAL OPERATING REVENUES.................................................. 4,884,704 4,884,704 5,276,138 391,434 OPERATING EXPENSES: Cost of service and administration....................................................... 2,524,481 2,524,481 1,960,899 157,145 406,437 GILDS assessment............................................................................ - - - - - TOTAL OPERATING EXPENSES................................................... 2,524,481 2,524,481 1,960,899 157,145 406,437 OPERATING INCOME(LOSS)........................................................ 2,360,223 2,360,223 3,315,239 (157,145) 797,871 NONOPERATING REVENUES(EXPENSES): Investment income........................................................................... 7,000 7,000 15,186 8,186 Interest expense.............................................................................. (272,525) (272,525) (268,176) 4,349 Debt service-principal...................................................................... (1,417,953) (1,417,953) (1,417,953) - TOTAL NONOPERATING REVENUES(EXPENSES),NET.................................................... (1,683,478) (1,683,478) (1,670,943) 12,535 INCOME(LOSS)BEFORE TRANSFERS.......................................... 676,745 676,745 1,644,296 (157,145) 810,406 TRANSFERS: Transfers out................................................................................... (878,741) (878,741) (878,741) - CHANGE IN NET POSITION.......................................................... (201,996) (201,996) 765,555 (157,145) 810,406 NET POSITION AT BEGINNING OF YEAR............................................... 2,054,567 2,054,567 2,054,567 - NET POSITION AT END OF YEAR.......................................................... $ 1,852,571 $ 1,852,571 $ 2,820,122 $ (157,145) $ 810,406 Town of North Andover, Massachusetts 106 Comprehensive Annual Financial Report Sewer Fund Osgood Hill Fund Amounts Amounts Actual Carried Variance Actual Carried Variance Original Final Budgetary Forward To To Final Original Final Budgetary Forward To To Final Budget Budget Amounts Next Year Budget Budget Budget Amounts Next Year Budget $ 4,703,587 $ 4,703,587 $ 4,968,237 $ $ 264,650 $ 271,974 $ 271,974 $ 337,551 $ $ 65,577 22,000 22,000 29,717 7,717 - - - - 4,725,587 4,725,587 4,997,954 272,367 271,974 271,974 337,551 65,577 696,823 696,823 546,875 31,414 118,534 225,514 225,514 257,320 651 (32,457) 1,638,199 1,638,199 1,322,544 - 315,655 - - - - 2,335,022 2,335,022 1,869,419 31,414 434,189 225,514 225,514 257,320 651 (32,457) 2,390,565 2,390,565 3,128,535 (31,414) 706,556 46,460 46,460 80,231 (651) 33,120 4,000 4,000 9,099 5,099 - - - - - (343,099) (343,099) (339,054) 4,045 (1,648,901) (1,648,901) (1,643,901) 5,000 (1,988,000) (1,988,000) (1,973,856) 14,144 - - - 402,565 402,565 1,154,679 (31,414) 720,700 46,460 46,460 80,231 (651) 33,120 (413,525) (413,525) (413,525) 4( 6,460) 4( 6,460) (46,460) - - (10,960) (10,960) 741,154 (31,414) 720,700 - - 33,771 (651) 33,120 1,026,085 1,026,085 1,026,085 - 71,235 71,235 71,235 - - $ 1,015,125 $ 1,015,125 $ 1,767,239 $ (31,414) $ 720,700 $ 71,235 $ 71,235 $ 105,006 $ (651) $ 33,120 Town of North Andover, Massachusetts 107 Comprehensive Annual Financial Report TOWN OF NORTH ANDOVER, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2014 TOWN OF NORTH ANDOVER, MASSACHUSETTS REPORTS ON FEDERAL AWARD PROGRAMS YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS PAGE Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards...........1 Report on compliance for each major federal program; report on internal control over compliance; and report on schedule of expenditures of federal awards required by OMB Circular A-133..................3 Schedule of expenditures of federal awards.................................................................................................5 Notes to schedule of expenditures of Federal awards..................................................................................6 Schedule of findings and questioned costs...................................................................................................7 Powers fir: Sullivan 1, C'ertcfied Public Accountants REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING BdWy QalauunzlgpovwiCl d'alknzcrr AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT SW e 101 OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH W,,kefiaid,MA 01N80 GOVERNMENT AUDITING STANDARDS T 781-914_1700 ww"`,power Jl l 0..:h 11110 va 11.co0Dtl Independent Auditor's Report To the Honorable Board of Selectmen Town of North Andover, Massachusetts We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Town of North Andover, Massachusetts' basic financial statements, and have issued our report thereon dated December 1, 2014. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town of North Andover, Massachusetts' internal control over financial reporting (internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of North Andover, Massachusetts' internal control. Accordingly, we do not express an opinion on the effectiveness of the Town of North Andover, Massachusetts' internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town of North Andover, Massachusetts' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 1 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. December 1, 2014 2 Powers, & Sullivan, (,'ertified Public Accountants REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON 11rrr SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY i1ll➢kL" iia1 OMB CIRCULAR A-133 Wakeficid, MA 0I'S80 T 781-914-1700 F. 781. 1:1_1701 Independent Auditor's Report "vww,powersm^ids kilt!vn1',`"om To the Honorable Board of Selectmen Town of North Andover, Massachusetts Report on Compliance for Each Major Federal Program We have audited the Town of North Andover, Massachusetts' compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the Town of North Andover, Massachusetts' major federal programs for the year ended June 30, 2014. The Town of North Andover, Massachusetts' major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the Town of North Andover, Massachusetts' major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town of North Andover, Massachusetts' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the Town of North Andover, Massachusetts' compliance. Opinion on Each Major Federal Program In our opinion, the Town of North Andover, Massachusetts complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. Report on Internal Control Over Compliance Management of the Town of North Andover, Massachusetts is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In 3 planning and performing our audit of compliance, we considered the Town of North Andover, Massachusetts' internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town of North Andover, Massachusetts' internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the Town of North Andover, Massachusetts, as of and for the year ended June 30, 2014, and have issued our report thereon dated December 1, 2014, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditure of federal awards is fairly stated in all material respects in relation to the financial statements as a whole. December 1, 2014 4 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2014 Federal CFDA Federal Grantor/Program Title Number Expenditures U.S. DEPARTMENT OF AGRICULTURE: Passed through Massachusetts Department of Elementary and Secondary Education: Non-Cash Assistance (Commodities): National School Lunch Program 10.555 $ 63,751 Cash Assistance: School Breakfast Program 10.553 20,286 National School Lunch Program 10.555 264,589 TOTAL AGRICULTURE 348,626 U.S. DEPARTMENT OF TRANSPORTATION: Passed through the Massachusetts Executive Office of Public Safety and Security: State and Community Highway Safety 20.600 1,479 U.S. DEPARTMENT OF EDUCATION: Passed through Massachusetts Department of Elementary and Secondary Education: Title I Grants to Local Educational Agencies 84.010 245,432 Special Education Grants to States 84.027 1,067,656 Improving Teacher Quality State Grants 84.367 58,420 ARRA- Race to the Top 84.395 59,537 Passed through Massachusetts Department of Early Education and Care: Special Education - Preschool Grants 84.173 22,023 TOTAL EDUCATION 1,453,068 U.S. DEPARTMENT OF HOMELAND SECURITY: Passed through the State Office of Emergency Management: Public Assistance Grants 97.036 264,859 TOTAL $ 2,068,032 See notes to schedule of expenditures of federal awards. Town of North Andover, Massachusetts 5 Reports on Federal Award Programs Notes to Schedule of Expenditures of Federal Awards Year Ended June 30, 2014 Note 1 -Definition of Reporting Entity The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the Town of North Andover, Massachusetts. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies is included on the schedule. Note 2 -Significant Accounting Policies The accounting and reporting policies of the Town of North Andover, Massachusetts, are set forth below: (a) Basis of Presentation -The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting. Accordingly, expenditures are recognized when the liability is incurred. (b) Cash Assistance -School Breakfast and Lunch Program- Program expenditures represent federal reimbursement for meals provided during the year. (c) Non-Cash Assistance (Commodities)—School Lunch Program— Program expenditures represent the value of donated foods received during the year. Note 3— Program Clusters In accordance with Subpart A§_.105 of OMB Circular No. A-133, Audits of States, Local Governments and Non Profit Organizations, certain programs have been clustered in determining major programs. The following represents the clustered programs: CFDA Name of Cluster/Program Number Child Nutrition Cluster School Breakfast Program 10.553 National School Lunch Program 10.555 Special Education Cluster Special Education Grants to States 84.027 Special Education Preschool Grants 84.173 Town of North Andover, Massachusetts 6 Reports on Federal Award Programs TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2014 Powers fir: Sullivan 1, C'ertified Public Accountants IMP Quanna pow itt ParkN%caws SWu e 101 Wa]ceficid,MA 01N80 To the Honorable Board of Selectmen ,1, 781-9141 1 700 Town of North Andover, Massachusetts: F. 781-`'1-1-1701 ww'w#'win`.'p[]AKC rmnla1:,kilt!va11,C"om In planning and performing our audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of North Andover, Massachusetts' (the "Town") as of and for the year ended June 30, 2014, in accordance with auditing standards generally accepted in the United States of America, we considered the Town's internal control over financial reporting (internal control)as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control. However, during our audit we became aware of matters that are opportunities for strengthening internal controls and enhancing operating efficiency. The memorandum that accompanies this letter summarizes our comments and suggestions concerning those matters. We will review the status of these comments during our next audit engagement. We have already discussed these comments and suggestions with various Town personnel, and will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. This communication is intended solely for the information and use of management of the Town of North Andover, Massachusetts, and is not intended to be and should not be used by anyone other than these specified parties. The Town of North Andover's written response to the matters identified in our audit has not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. December 1, 2014 TOWN OF NORTH ANDOVER, MASSACHUSETTS MANAGEMENT LETTER JUNE 30, 2014 TABLE OF CONTENTS PAGE Consider Centralizing the Collection of Permits, Fees and Other Receipts.................................................... 1 Trust Account Reconciliation ........................................................................................................................... 1 Integration of Accounts Receivable Software.................................................................................................. 1 Management of Student Activity Funds...........................................................................................................2 Police Detail and Ambulance Receivables......................................................................................................3 Government Accounting Standards Board (GASB) Statements for Pensions and OPEB..............................3 Consider Centralizing the Collection of Permits, Fees and Other Receipts Comment The Town had several departments in various locations that handled money. While not all of it was cash there is always a risk that payments could be lost or misappropriated. As an alternative to ensure that proper procedures exist in each of these departments, we recommended that the Town consider centralizing the collection of all permits, fees and other charges through a single office in town hall. In this way, all payments for goods and services could be managed by one office that is equipped to receive record and deposit funds. For the Town this would be the office of Treasurer/Collector. Current Status The Town has effectively implemented a process where all cash collections within Town Hall are centralized within the Treasurer's office. Additionally, a process was implemented where collections outside Town Hall are limited to check payment only. Trust Account Reconciliations Comment The Town maintains numerous trust accounts on the general ledger. While the investment activity from these accounts was posted to the general ledger on a monthly basis, reconciliations between the bank and the individual accounts on the general ledger were being performed on an annual basis. We indicated that quarterly reconciliations between the trust account statements and the general ledger balances would provide a better check and balance than the annual reconciliation process. Current Status The Town has implemented procedures to reconcile the individual trust account statement balances and the general ledger balances on a quarterly basis. Integration of Accounts Receivable Software Comment We indicated that the Town should consider eliminating the use of a stand-alone accounts receivable system and shift toward an integrated system. An integrated system would provide greater efficiencies as well as real-time, up-to-date data for important management decisions. We recommended that the Town perform a review of the current accounting system and consider implementing an integrated system. Current Status The Town has purchased and is currently working towards the full implementation of a new accounting system that includes an integrated accounts receivable module. 1 Recommendation We recommend that the Town continue to work towards the full implementation of the new accounting system including a fully integrated accounts receivable module. Management's Response The Town has started the implementation of the new accounting system. Each module will be phased in starting with the General Ledger going live July 1, 2015, Payroll and Permits January 1, 2016, Taxes June 2016, Tax Title August 2016 and Utility billing December 2016. Management of Student Activity Funds Comment Massachusetts General Law (MGL), Chapter 71, Section 47 requires that school districts maintain student activity funds in accordance with guidelines issued by the Department of Elementary and Secondary Education (DESE). In 2014 the DESE published a comprehensive manual titled Agreed-Upon Procedures and Audit Guidelines— Student Activity Funds. Within each section of the manual is the DESE Policy Guidance, the MGL Requirement and DESE's explanation of what type of policies, internal controls and audit procedures should be implemented in order to be in compliance with the law. These guidelines can be found on the DESE website at the following address: httpe//www.doe.mass.edu/finance/accounting One of the MGL requirements is that an annual audit of the student activities be completed and that at least once every three years the procedures should be performed by an outside independent auditor if student activity balances exceed $25,000. The DESE manual provides guidance on the acceptable methods and timing of the audit. Current Status An internal audit of the student activity funds was performed and documented as of June 30, 2014; however, the last independent audit was conducted for the fiscal year ending June 30, 2011. To comply with the DESE guidelines, an independent audit should be completed. Recommendation We recommend that the District implement policies and procedures to comply with the guidelines established by the DESE. Management's Response An independent audit will be conducted by June 30, 2015, and every three years after this per the School Department's "Policy and Procedures". 2 Police Detail and Ambulance Receivables Comment The Town does not record the monthly commitment, collection, and abatement of police detail and ambulance activity against the corresponding receivable balances maintained on the general ledger. An adjustment is recorded at year-end to balance with the police department and ambulance billing agent's records. Recording the police detail and ambulance activity against the receivable account and reconciling the balance on a monthly basis would provide a better check and balance than what currently exists. Current Status The Town has implemented procedures to reconcile police detail activity on a monthly basis; however, procedures have not been implemented to reconcile the ambulance activity from the billing agent's records to the Town's general ledger on a monthly basis. Recommendation We recommend that the Town develop procedures to record the ambulance activity on the general ledger and to reconcile the general ledger balance to the billing agent's records on a monthly basis. Management's Response The Town will implement procedures similar to the Police Details to reconcile the Ambulance receivables with the billing agent's records on a monthly basis. Government Accounting Standards Board (GASB) Statements for Pensions and OPEB Current Comment The GASB has issued new pronouncements that will significantly affect the accounting and reporting requirements for pensions. These new standards are required to be implemented in 2015 and will substantially impact the Town's financial statements and will also affect the requirements for accumulating the necessary data to meet the reporting requirements. The new standards that have been issued and their effective dates are as follows: • The GASB issued Statement#67, Financial Reporting for Pension Plans, an amendment of GASB Statement No. 25, which was required to be implemented in year 2015. • The GASB issued Statement#68, Accounting and Financial Reporting for Pensions, an amendment of GASB Statement No. 27, which is required to be implemented in year 2015. The GASB is expected to issue additional standards following#67 D for Pensions, which will similarly affect accounting and financial reporting for OPEB Plans. The GASB is encouraging earlier application of these standards. See below for a brief summary of these new standards: ➢ GASB#67 and #68 will substantially change the reporting for pension liabilities and expenses. Changes in pension liability will be immediately recognized as pension expense or reported as deferred outflows/inflows of resources depending on the nature of the changes. Substantial changes to methods 3 and assumptions used to determine actuarial information for GAAP reporting purposes will be required. Current actuarial methods may continue to be used to determine funding amounts. Employers will report in their financial statements a net pension liability(asset) determined annually as of the year end. Net pension liability(asset) equals the total pension liability for the plan net of the plan net position. Pension liability is the actuarial present value of projected benefits attributed to past service, and plan net position is the accumulated plan assets net of any financial statement liabilities of the plan. The Town should expect to record significant pension and OPEB liabilities in the future. While the most significant changes from these GASB's do not go into effect until 2015, we wanted to make the Town aware of the magnitude these changes will have on financial statement reporting and disclosures. 4 Schedule of Findings and Questioned Costs Year Ended June 30, 2014 A. Summary of Auditor's Results 1. The auditor's report expresses an unmodified opinion on the financial statements of the Town of North Andover, Massachusetts. 2. No significant deficiencies relating to the audit of the financial statements are reported in the Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the Town of North Andover, Massachusetts, were disclosed during the audit. 4. No significant deficiencies relating to the audit of the major federal award programs is reported in the Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards required by OMB Circular A-133. 5. The auditor's report on compliance for the major federal award programs for the Town of North Andover, Massachusetts, expresses an unmodified opinion. 6. No audit findings that are required to be reported in accordance with Section 520(a)of OMB A-133 are reported in this schedule. 7. The programs tested as major programs include: CFDA Program Title Number Special Education Grants to States 84.027 Special Education - Preschool Grants 84.173 8. The threshold for distinguishing Types A and B programs was $300,000. 9. The Town of North Andover, Massachusetts was determined to be a low-risk auditee. B. Findings-Financial Statements Audit None. C. Finding and Questioned Costs— Major Federal Award Programs None. D. Prior Year Audit Findings and Questioned Costs None. Town of North Andover, Massachusetts 7 Reports on Federal Award Programs TOWN OF NORTH ANDOVER, MASSACHUSETTS OFFICE OF TOWN ACCOUNTANT 120 MAIN STREET, 01845 i i Lyne M Savage Telephone(978)688-9523 Finance Director/Town Accountant email Isava e-town horthandover.coni MEMORANDUM To: Andrew Maylor, Town Manager From: Lyne M Savage, Finance Director/Town Accountant Subject: Budget Status Reports FY 2015 Date: January 21, 2015 Enclosed please find the budget status reports for Revenue and Expenses as of the end of the second quarter of Fiscal 2015, December 31, 2014. Also included are the fund balances for all Special Revenue and Capital Projects funds for your review. The cash balance report from the Treasurer's office is attached along with any notes reflecting unreconciled items. If you have any comments or concerns,please do not hesitate to call. General Fund Revenue: • Property Tax Revenue: collections are at 48.2% year to date which is right in line with this same period last year which was 48.1%. • Motor Vehicle Excise Taxes: collections for the second quarter are running at 12.3% which is down 5.2% or $171,894 from this same time last year. The majority of Motor Vehicle Excise taxes are billed in the month of February with the collection occurring in the months of March and April. • Meals Tax: collections are running at 57.8% slightly up from this same time last year which was 53.8%. • Ambulance Services: collections are at 51.9% year to date compared to last year when collections were 54.7% of budget. • Inspections Fees (Bldg. /Plum. /Elec.) collections are at 62.1% which is up from last year which was 60.3%, through the second quarter. • Interest Income: collections continue tracking well against budget at 48.3% through the second quarter. • When Motor Vehicle Excise Tax is factored out of Local Receipts revenue are tracking at 52.46% of budget. Although some revenues are still not reflecting any collections at this time in the fiscal year, this is normal; some revenues are collected at specific times within the fiscal year and are not typically collected on a monthly basis. At this point in the fiscal year all revenues are tracking on target and I expect we will meet budget. Expenses: i i All departmental budgets are running at approximately 50% of target at this point in the fiscal year which is right on track. There are no areas of concern at this time. As more information becomes available I will update you as needed. Enterprise Funds: Water/Sewer: • Water revenues collections are at 53.1% of budget with expenditures running at 43.9% of budget. Sewer revenues collected are at 52.3%, of budget with expenditures running at 38.2% of budget. Based on normal operations this is not unusual for this time in the fiscal year. Stevens Estate: • Stevens Estate collections are at 97.7%, up 30.6% or $103,340, compared to this same time last year with the expenditures running at 64.4%, up 6.2% or $30,189, for this same period last year. At this time I see know areas of concern. ' I I hope the above information is helpful, and if you have any question or concerns, please do not hesitate to contact me. i i TOWN OF NORTH ANDOVER- GENERAL FUND REVENUES FOR PERIOD ENDING 07101114 THROUGH 12131114 Fiscal Year: 2014-2015 FY15 MTD FYI Year To Date Budget Budget Balance FY14 Year To Date 12/01/14-12/31/14 07/01/14-12/31/14 07101/13-12131/13 REVENUES PROPERTY TAXES Personal Property Tax(+) $1,495.03 $1,197,794.98 $2,495,931.34 $1,298,136.36 48.0% $1,122,388.72 46.8% Real Estate Tax(+) $348,539.21 $30,022,501.85 $62,536,065.52 $32,513,563.67 48.0% $29,117,688.58 47.7% Tax Title(+) $8,705.61 $150,232.22 $0.00 ($150,232.22) 0.0% $291,116.85 0.0% Defferred Property Taxes(+) $ 0.00 $ 0.00 $0.00 ($ 0.00) 0.0% $14,450.53 0.0% Sub-total : PROPERTY TAXES $358,739.85 $31,370,529.05 $65,031,996.86 $33,661,467.81 48.2% $30,545,644.68 48.1% LOCAL RECEIPTS Motor Vehcile Excise(+) $34,779.74 $456,878.32 $3,700,000.00 $3,243,121.68 123% $628,772.48 17.5% Jet Fuel(+) $0.00 $8,521.63 $20,000.00 $11,478.37 42.6% $12,780.65 62.2% Meals Tax(+) $132,694.72 $260,240.74 $450,000.00 $189,759.26 57.8% $244,127.00 53.8% Hotel Occupancy Excise Tax(+) $57.79 $57.79 $0.00 ($57.79) 0.0% $75.31 0.0% Penalties/Interest Prop Tax(+) $6,600.88 $52,895.75 $122,000.00 $69,104.25 43.4% $65,655.69 65.7% Penalties/Interest Motor Veh(+) $1,238.13 $11,050.59 $17,000.00 $5,949.41 65.0% $10,721.34 56.4% Penalties/Interest Tax Title(+) $3,669.93 $37,043.05 $63,000.00 $25,956.95 58.8% $123,982.05 354.2% Over/Under(+) $1.99 $301.57 $0.00 ($301.57) 0.0% $325.47 0.0% Lien Certificate(+) $2,190.00 $15,325.00 $40,000.00 $24,675.00 38.3% $16,450.00 45.5% Treasures Demand Fee(+) $3,660.00 $44,306.26 $70,000.00 $25,693.74 63.3% $41,835.29 68.4% Payment in Lieu of Taxes(+) $0.00 $0.00 $30,000.00 $30,000.00 0.0% $0.00 0.0% Wheelabrator Annual Payment(+) $24,175.00 $145,065.00 $288,835.72 $143,770.72 50.2% $123,589.57 43.3% Wheelabrator Host Fee(+) $117,701.70 $720,972.03 $1,544,829.49 $823,857.46 46.7% $776,898.23 51.8% Ambulance Sevices(+) $82,357.86 $456,645.86 $880,000.00 $423,354.14 51.9% $472,214.61 54.7% Dog Fees(+) $38.00 $1,181.00 $43,000.00 $41,819.00 2.7% $2,705.00 5.9% Town Clerk Fees(+) $2,792.00 $13,447.00 $26,000.00 $12,553.00 51.7% $12,404.00 46.6% Extended Polling Hours(+) $0.00 $7,090.00 $0.00 ($7,090.00) 0.0% $0.00 0.0% Cable Fees(+) $0.00 $0.00 $5,000.00 $5,000.00 0.0% $ 0.00 0.0% Clerk Violation Fees(+) $200.00 $1,800.00 $2,000.00 $200.00 90.0% $1,720.00 86.0% Passports(+) $1,100.00 $7,500.00 $19,000.00 $11,500.00 39.5% $6,700.00 35.3% Clerk Application Fees(+) $0.00 $0.00 $100.00 $100.00 0.0% $0.00 0.0% Conservation Fees(+) $48.00 $269.00 $700.00 $431.00 38.4% $392.00 59.5% Planning Board Fees(+) $0.00 $30,771.72 $18,000.00 ($12,771.72) 171.0% $4,593.00 20.3% Police Fees(+) $2,042.40 $5,274.40 $3,000.00 ($2,274.40) 175.8% $1,929.41 67.0% Building Inspection Fees(+) $62,431.74 $372,715.40 $600,000.00 $227,284.60 62.1% $361,702.24 60.3% Plumbing Inspection Fees(+) $4,854.50 $38,317.61 $60,000.00 $21,682.39 63.9% $33,591.75 56.0% Electrical Inspection Fees(+) $11,099.50 $71,172.69 $100,000.00 $28,827.31 71.2% $45,886.62 53.1% Weights and Measureres(+) $774.00 $2,802.00 $3,000.00 $198.00 93.4% ° $2,922.00 85. /o 7 Recycling Fees(+) $12,087.30 $14,935.30 $42,000.00 $27,064.70 35.6% $16,280.28 33.2% School Medicaid Reimbursment(+) $40.00 $29,310.84 $150,000.00 $120,689.16 19.5% $32,114.08 21.4% TOWN OF NORTH ANDOVER- GENERAL FUND REVENUES FOR PERIOD ENDING 07101114 THROUGH 12131114 Fiscal Year: 2014-2015 FYI MTD FYI Year To Date Budget Budget Balance FYI Year To Date 12101114-12131/14 07101/14-12131114 07101113-12/31/13 REVENUES School Misc(+) $0.00 $5,766.55 $0.00 ($5,766.55) 0.0% $203.20 0.0% Library Fines(+) $305.92 $1,244.99 $0.00 ($1,244.99) 0.0% $936.59 0.0% Bathing Beach Receipts(+) $0.00 $13,416.00 $30,000.00 $16,584.00 44.7% $14,673.00 48.9% Rental Income(Thrify Shop, Credit Union $985.00 $5,910.00 $11,580.00 $5,670.00 51.0% $6,200.00 53.5% Cell Tower Lease(+) $26,042.98 $60,736.96 $85,000.00 $24,263.04 71.5% $46,047.51 54.5% Assessors Receipts(+) $80.00 $661.00 $1,000.00 $339.00 66.1% $540.00 31.8% Town Clerk Misc Receipts(+) $0.00 $400.00 $0.00 ($400.00) 0.0% $ 0.00 0.0% Misc Departmental Receipts(+) $1,026.10 $13,751.54 $1,000.00 ($12,751.54) 1375.2% $14,284.45 708.2% Board of Appeals Receipts(+) $0.00 $650.00 $3,000.00 $2,350.00 21.7% $1,450.00 48.3% Police 10%Admin Fee(+) $3,358.30 $17,434.35 $40,000.00 $22,565.65 43.6% $21,903.13 62.6% Fire Alarm Box Permit Fee(+) $0.00 $200.00 $21,400.00 $21,200.00 0.9% $1,865.00 8.7% Veterans Benefits(Boxford)(+) $0.00 $0.00 $12,000.00 $12,000.00 0.0% $0.00 0.0% Liquor Licenses(+) $7,700.00 $100,050.00 $98,300.00 ($1,750.00) 101.8% $92,200.00 100.5% Other Alcohol Licenses(+) $0.00 $1,050.00 $3,100.00 $2,050.00 33.9% $700.00 87.5% Food Licenses(+) $225.00 $3,650.00 $6,675.00 $3,025.00 54.7% $4,650.00 125.7% Misc Licenses(+) $975.00 $9,975.00 $6,175.00 ($3,800.00) 161.5% $10,790.00 101.8% License to Carry Firearms(+) $375.00 $2,262.50 $7,000.00 $4,737.50 32.3% $4,450.00 135.0% Fire Permits(+) $4,825.00 $25,308.00 $42,000.00 $16,692.00 60.3% $26,645.00 67.0% Gas Permits(+) $4,469.00 $17,839.65 $26,000.00 $8,160.35 68.6% $16,549.10 102.2% Fishing and Boating Licenses(+) $0.00 $955.00 $4,800.00 $3,845.00 19.9% $1,270.00 27.0% Burial Permits(+) $550.00 $2,200.00 $3,500.00 $1,300.00 62.9% $1,725.00 74.5% Health Dept Fees(+) $13,930.00 $30,220.99 $53,000.00 $22,779.01 57.0% $32,876.80 56.8% Parking Fines(+) $1,025.00 $6,025.00 $18,000.00 $11,975.00 33.5% $5,095.00 25.9% Court Fines(+) $5,012.50 $46,730.50 $89,000.00 $42,269.50 52.5% $58,009.50 60.5% False Alarm Fines(+) $0.00 $50.00 $6,000.00 $5,950.00 0.8% $50.00 0.9% Interest Income(+) $9,922.98 $62,752.08 $130,000.00 $67,247.92 48.3% $65,485.31 55.3% Sub-total : LOCAL RECEIPTS $587,442.96 $3,235,130.66 $8,995,995.21 $5,760,864.55 36.0% $3,468,966.66 39.6% MISC NON RECURRING Misc Non Recurring-Intergovernmental $0.00 $ 0.00 $0.00 ($ 0.00) 0.0% $4,694.13 0.0% Misc Non Recurring-Hopkinton Bill $0.00 $38,728.21 $0.00 ($38,728.21) 0.0% $42,665.47 0.0% Misc Non Recurring -Departmental $0.00 $153,783.76 $0.00 ($153,783.76) 0.0% $81,838.38 0.0% Misc Non Recurring-Medicare Part $6,829.56 $6,829.56 $0.00 ($6,829.56) 0.0% $58,528.65 61.6% Misc Non Recurring-Bond Premium $0.00 $ 0.00 $0.00 ($ 0.00) 0.0% $10,032.08 0.0% Sub-total :MISC NON RECURRING $6,829.56 $199,341.53 $0.00 ($199,341.53) 0.0% $197,758.71 208.2% STATE AID Exemption:Vets, Blind&Surviving $1,243.00 $61,031.00 $70,251.00 $9,220.00 86.9% $64,351.00 87.6% State Owned Land(+) $19,376.00 $116,256.00 $232,515.00 $116,259.00 50.0% $98,460.00 50.0% TOWN OF NORTH ANDOVER - GENERAL FUND REVENUES FOR PERIOD ENDING 07101114 THROUGH 12131114 Fiscal Year: 2014-2015 FYI MTD FYI Year To Date Budget Budget Balance FY14 Year To Date 12101114-12131114 07/01/14-12/31114 07/01/13-12131113 REVENUES Veterens Benefits(+) $0.00 $139,791.00 $197,053.00 $57,262.00 70.9% $105,650.00 49.7% Unrestricted General Government Aid $151,966.00 $911,791.00 $1,823,584.00 $911,793.00 50.0% $887,187.00 50.0% Chapter 70(+) $605,191.00 $3,631,144.00 $7,262,286.00 $3,631,142.00 50.0% $3,534,288.00 50.0% Charter Tuition Assessment Reimb $1,148.00 $1,148.00 $9,823.00 $8,675.00 11.7% $10,175.00 91.7% School Building Assistance(+) $412,131.00 $412,131.00 $412,131.00 $0.00 100.0% $412,131.00 100.0% Sub-total :STATE AID $1,191,055.00 $5,273,292.00 $10,007,643.00 $4,734,351.00 52.7% $5,112,242.00 52.4% TRANSFER/OTHER REVENUE SOURCES Transfer from Sewer(+) $35,321.93 $211,931.58 $423,863.13 $211,931.55 50.0% $206,762.52 50.0% Transfer from Water(+) $75,059.13 $450,354.78 $900,709.53 $450,354.75 50.0% $439,370.52 50.0% Transfer from Stevens Estate(+) $3,968.46 $23,810.76 $47,621.50 $23,810.74 50.0% $23,230.02 50.0% Transfer from Special Revenue(+) $0.00 $0.00 $61,350.00 $61,350.00 0.0% $62,700.00 100.0% Transfer from Capital(+) $0.00 $0.00 $ 0.00 $ 0.00 0.0% $611.12 0.0% Transfer from-GLSD(+) $0.00 $0.00 $143,103.08 $143,103.08 0.0% $0.00 0.0% Transfer from Free Cash(+) $0.00 $0.00 $838,000.00 $838,000.00 0.0% $ 0.00 0.0% Sub-total :TRANSFER/OTHER $114,349.52 $686,097.12 $2,414,647.24 $1,728,550.12 28.4% $732,674.18 47.5% REVENUE SOURCES Total : REVENUES $2,258,416.89 $40,764,390.36 $86,450,282.31 $45 685 891.95 47.2% $40,057,286.23 47.9% TOWN OF NORTH ANDOVER - GENERAL FUND EXPENDITURES FOR PERIOD ENDING 07101114 THROUGH 12131114 Fiscal Year: 2014-2015 FY15 MTD FY15 Year To Date Budget Budget Balance FY14 Year To Date 12/01/14-12131/14 07/01/14-12131/14 07101113-12131/13 EXPENSES GENERAL GOVERNMENT Town Moderator(+) $0.00 $0.00 $825.00 $825.00 0.0% $0.00 0.0% Town Manager(+) $7,454.16 $171,094.11 $359,506.40 $188,412.29 47.6% $148,688.21 47.5% Finance Committee(+) $0.00 $333.33 $795.00 $461.67 41.9% $373.00 46.9% Assistant Town Manager(+) $0.00 $ 0.00 $ 0.00 $ 0.00 0.0% $24,896.97 44.3% Human Resources(+) $33,520.23 $68,492.62 $105,376.80 $36,884.18 65.0% $41,839.37 48.9% Town Accountant(+) $20,982.87 $114,388.01 $230,739.44 $116,351.43 49.6% $108,739.49 48.0% Assessors(+) $21,947.29 $123,536.14 $313,108.00 $189,571.86 39.5% $154,598.84 49.8% Treasurer/Collector(+) $30,317.61 $151,760.94 $310,685.00 $158,924.06 48.8% $152,946.71 50.0% Legal(+) $4,080.93 $15,600.89 $165,000.00 $149,399.11 9.5% $31,505.69 20.2% Town Clerk(+) $24,059.73 $156,399.85 $353,767.00 $197,367.15 44.2% $112,064.80 39.9% Community Development(+) $30,427.94 $146,191.45 $223,064.00 $76,872.55 65.5% $103,522.80 46.7% Planning(+) $5,556.94 $28,487.37 $118,773.00 $90,285.63 24.0% $56,636.16 50.4% Conservation (+) $17,937.64 $58,351.10 $115,744.00 $57,392.90 50.4% $43,955.34 47.4% Board of Appeals(+) $3,525.00 $19,500.00 $39,062.00 $19,562.00 49.9% $18,294.67 49.0% Sub-total : GENERAL GOVERNMENT $199,810.34 $1,054,135.81 $2,336,445.64 $1,282,309.83 45.1% $998,062.05 45.4% PUBLIC SAFETY Police(+) $324,750.31 $2,224,269.66 $4,736,859.94 $2,512,590.28 47.0% $2,129,327.56 46.4% Fire(+) $404,872.90 $2,530,468.64 $4,873,908.81 $2,343,440.17 51.9% $2,404,618.96 51.8% Public Safety Reserve(+) $0.00 $0.00 $67,803.94 $67,803.94 0.0% $131,629.68 63.1% Inspection Services(+) $24,409.02 $132,568.55 $262,548.00 $129,979.45 50.5% $129,347.24 48.5% Emergency Management(+) $5,316.73 $10,601.40 $41,475.00 $30,873.60 25.6% $4,510.33 14.3% Sub-total : PUBLIC SAFETY $759,348.96 $4,897,908.25 $9,982,595.69 $5,084,687.44 49.1% $4,799,433.77 49.3% EDUCATION Franklin School(+) $382,421.99 $1,824,106.06 $4,740,814.42 $2,916,708.36 38.5% $1,642,274.98 36.9% Systemwide(+) $249,710.27 $2,111,015.21 $4,497,915.75 $2,386,900.54 46.9% $1,921,666.40 47.6% High School(+) $646,190.09 $3,455,869.25 $9,013,644.51 $5,557,775.26 38.3% $3,508,775.77 39.1% Central Office(+) $80,93812 $565,129.08 $1,121,292.92 $556,163.84 50.4% $567,614.57 52.5% Middle School(+) $546,370.90 $2,652,857.13 $7,038,735.02 $4,385,877.89 37.7% $2,524,405.35 37.9% Atkinson School(+) $191,326.32 $973,498.80 $2,591,729.50 $1,618,230.70 37.6% $928,752.12 38.8% Kittridge School(+) $144,522.88 $723,391.03 $1,867,355.70 $1,143,964.67 38.7% $692,206.18 39.2% Thomson School(+) $169,733.18 $813,935.57 $2,147,695.56 $1,333,759.99 37.9% $786,936.60 38.8% Sargent School(+) $306,575.36 $1,424,067.68 $3,794,926.53 $2,370,858.85 37.5% $1,389,249.21 38.9% All Elementary(+) $28,070.54 $139,742.48 $346,700.34 $206,957.86 40.3% $77,438.61 45.9% Out of District(+) $530,930.14 $2,204,646.42 $5,151,850.75 $2,947,204.33 42.8% $1,921,452.14 40.4% Sub-total : EDUCATION $3,276,790.39 $16,888,258.71 $42,312,661.00 $25,424,402.29 39.9% $15,960,771.93 40.0% PUBLIC WORKS TOWN OF NORTH ANDOVER - GENERAL FUND EXPENDITURES FOR PERIOD ENDING 07101114 THROUGH 12131114 Fiscal Year: 2014-2015 FYI MTD FYI Year To Date Budget Budget Balance FYI Year To Date 12/01/14-12131114 07/01114-12131/14 07101113-12131113 EXPENSES Administration(+) $35,878.89 $215,665.28 $437,251.00 $221,585.72 49.3% $193,633.58 48.7% Streets and Sidewalks(+) $93,956.26 $404,090.86 $844,582.00 $440,491.14 47.8% $471,530.15 50.5% Solid Waste(Trash)Collections(+) $95,285.74 $489,691.03 $1,233,937.00 $744,245.97 39.7% $483,846.17 42.4% Fleet Maintenance(+) $104,310.08 $227,266.56 $390,509.00 $163,242.44 58.2% $206,381.82 56.8% Structures and Grounds(+) $43,716.84 $242,592.49 $538,357.00 $295,764.51 45.1% $220,334.20 41.9% Snow and Ice(+) $122,734.61 $166,771.00 $875,000.00 $708,229.00 19.1% $161,286.71 12.1% Sub-total : PUBLIC WORKS $495,882.42 $1,746,077.22 $4,319,636.00 $2,573,558.78 40.4% $1,737,012.63 37.0% HEALTH AND HUMAN SERVICES Health(+) $18,630.70 $103,705.42 $214,489.83 $110,784.41 48.3% $101,105.78 50.0% Elder Services(+) $24,007.99 $131,479.04 $255,162.20 $123,683.16 51.5% $127,196.55 50.4% Youth Services(+) $22,718.15 $167,337.34 $351,900.96 $184,563.62 47.6% $137,555.49 44.8% Veterans Services(+) $35,086.91 $192,680.83 $399,581.80 $206,900.97 48.2% $169,460.13 46.3% Sub-total : HEALTH AND HUMAN SERVICES $100,443.75 $595,202.63 $1,221,134.79 $625,932.16 48.7% $535,317.95 47.5% CULTURE AND RECREATION Library(+) $67,133.08 $501,976.65 $942,646.41 $440,669.76 53.3% $471,600.38 54.6% Sub-total :CULTURE AND $67,133.08 $501,976.65 $942,646.41 $440,669.76 53.3% $471,600.38 54.6% RECREATION SUPPORT SERVICES Purchasing(+) $4,156.46 $24,623.89 $49,782.50 $25,158.61 49.5% $24,573.17 49.3% Auditing (+) $14,580.00 $53,580.00 $59,000.00 $5,420.00 90.8% $39,000.00 67.2% Informaton Technology(+) $204,973.60 $841,117.28 $1,303,091.00 $461,973.72 64.5% $553,601.73 55.2% Facilities(+) $19,068.07 $104,380.46 $292,483.00 $188,102.54 35.7% $95,918.17 40.5% Sub-total :SUPPORT SERVICES $242,778.13 $1,023,701.63 $1,704,356.50 $680,654.87 60.1% $713,093.07 52.9% DEBT SERVICE Included-Principal-LT(+) $0.00 $662,500.00 $3,248,155.00 $2,585,655.00 20.4% $1,481,969.96 37.7% Included-Interest-LT(+) $122,191.55 $348,318.96 $853,682.16 $505,363.20 40.8% $299,914.12 51.7% Included-Interest-ST(+) $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.0% $0.00 0.0% Excluded-Principal-LT(+) $0.00 $1,485,000.00 $1,485,000.00 $0.00 100.0% $1,434,856.00 100.0% Excluded-Interest-LT(+) $0.00 $156,456.26 $289,775.02 $133,318.76 54.0% $219,658.30 58.4% Sub-total : DEBT SERVICE $122,191.55 $2,652,275.22 $5,876,612.18 $3,224,336.96 45.1% $3,436,398.38 54.3% EMPLOYEE BENEFITS Retirement Assessment(+) $0.00 $3,759,115.00 $3,759,115.00 $0.00 100.0% $3,442,269.00 100.0% Workers Compensation(+) $0.00 $310,195.91 $313,820.00 $3,624.09 98.8% $255,424.91 91.2% Unemployment(+) $1,320.00 $17,760.30 $150,000.00 $132,239.70 11.8% $48,141.15 38.5% Group Insurance(+) $714,919.54 $4,341,094.25 $9,846,537.00 $5,505,442.75 44.1% $5,510,947.93 51.6% Payroll Taxes-Medicare(+) $52,926.78 $327,271.85 $635,000.00 $307,728.15 51.5% $309,102.95 49.0% Police and Fire Accident Ins(+) $5,952.43 $43,461.05 $115,000.00 $71,538.95 37.8% $40,018.24 48.9% TOWN OF NORTH ANDOVER - GENERAL FUND EXPENDITURES FOR PERIOD ENDING 07101114 THROUGH 12131114 Fiscal Year: 2014-2015 FY15 MTD FY15 Year To Date Budget Budget Balance FY14 Year To Date 12/01114-12131114 07101114-12/31114 07101113-12131/13 EXPENSES Sub-total : EMPLOYEE BENEFITS $775,118.75 $8,798,898.36 $14,819,472.00 $6,020,573.64 59.4% $9,605,904.18 63.0% LIABILITY INSURANCE Liability Insurance(+) $0.00 $327,029.87 $422,925.00 $95,895.13 77.3% $301,170.51 99.9% Sub-total : LIABILITY INSURANCE $0.00 $327,029.87 $422,925.00 $95,895.13 77.3% $301,170.51 99.9% CAPITAL AND RESERVES Capital Stabilization(+) $0.00 $213,000.00 $213,000.00 $0.00 100.0% $ 0.00 0.0% Stabilization Fund (+) $0.00 $625,000.00 $625,000.00 $0.00 100.0% $ 0.00 0.0% Transfer to Capital Projects(+) $0.00 $223,500.00 $223,500.00 $0.00 100.0% $ 0.00 0.0% Snow and Ice Reserve(+) $0.00 $0.00 $165,000.00 $165,000.00 0.0% $ 0.00 0.0% Sub-total : CAPITAL AND RESERVES $0.00 $1,061,500.00 $1,226,500.00 $165,000.00 86.5% $ 0.00 0.0% STATE CHARGES Special Education(+) $0.00 $0.00 $12,004.00 $12,004.00 0.0% $3,650.00 50.0% Mosquito Control(+) $7,640.00 $45,841.00 $91,677.00 $45,836.00 50.0% $45,694.00 50.0% Retired Municipal Teachers(+) $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.0% $425,014.00 64.3% Air Pollution Control(+) $766.00 $4,599.00 $9,195.00 $4,596.00 50.0% $4,626.00 50.0% Regional Transit Authorities(+) $15,445.00 $92,670.00 $185,331.00 $92,661.00 50.0% $92,892.00 50.0% RMV Non Renewal Surcharge(+) $1,548.00 $9,292.00 $18,580.00 $9,288.00 50.0% $9,160.00 53.0% School Choice Assessment(+) $2,417.00 $4,502.00 $5,000.00 $498.00 90.0% $5,740.00 40.8% Charter School Assessment(+) $15,434.00 $15,434.00 $138,522.00 $123,088.00 11.1% $18,380.00 23.5% Essex County Agriculture Tech Asse $0.00 $40,036.28 $80,072.55 $40,036.27 50.0% $18,831.00 50.0% Sub-total :STATE CHARGES $43,250.00 $212,374.28 $540,381.55 $328,007.27 393% $623,987.00 56.6% OTHER NON DEPARTMENTAL Regional School(+) $0.00 $148,785.50 $293,066.00 $144,280.50 50.8% $120,375.00 47.8% Sub-total :OTHER NON DEPARTMENTAL $0.00 $148,785.50 $293,066.00 $144,280.50 50.8% $120,375.00 47.8% Total : EXPENSES $6,082,747.37 $39,908,124.13 $85,998,432.76 $46,090,308.63 46.4% $39,303,126.85 47.3% TOWN OF NORTH ANDOVER -WATER ENTERPRISE FUND OPERATING STATEMENT WITH BUDGET FOR PERIOD 07/01114 THROUGH 12131/14 Fiscal Year: 2014-2015 FYI MTD FYI Year To Date Budget Budget Balance FY14 Year To Date 1211/14-12131114 07/01114-12131114 07/01113-12/31/13 REVENUE Interest/Penalties(+) $1,271.51 $12,944.77 $22,100.00 $9,155.23 58.6% $14,601.99 73.0% User Charges(+) $446,534.40 $2,691,841.60 $4,813,434.00 $2,121,592.40 55.9% $2,546,254.12 58.9% Water Hookups(+) $45,250.00 $67,250.00 $40,000.00 ($27,250.00) 168.1% $27,250.00 68.1% Other Fees(+) $30,814.70 $184,486.11 $705,066.00 $520,579.89 26.2% $238,807.63 47.8% Misc Departmental Revenue(+) $200.00 $5,908.81 $0.00 ($5,908.81) 0.0% $5,319.47 0.0% Interest Income(+) $1,449.56 $6,752.21 $12,000.00 $5,247.79 56.3% $6,153.34 87.9% Total : REVENUES $525,520.17 $2,969,183.50 $5,592,600.00 $2,623,416.50 53.1% $2,838,386.55 58.0% EXPENSES SALARIES Salaries(-) $79,686.42 $485,534.11 $896,677.50 $411,143.39 54.1% $422,323.74 48.5% Sub-total :SALARIES ($79,686.42) ($485,534.11) ($896,677.50) ($411,143.39) 54.1% ($422,323.74) 48.5% EXPENDITURES Expenses(-) $86,981.39 $421,803.41 $1,488,818.84 $1,067,015.43 28.3% $485,254.78 33.4% Sub-total : EXPENDITURES ($86,981.39) ($421,803.41) ($1,488,818.84) ($1,067,015.43) 28.3% ($485,254.78) 33.4% DEBT SERVICE Long Term Principal(-) $0.00 $122,028.04 $1,208,864.43 $1,086,836.39 10.1% $122,429.26 10.5% Long Term Interest(-) $22,002.92 $78,957.24 $161,424.41 $82,467.17 48.9% $94,880.34 50.5% MWPAT Principal(-) $0.00 $256,586.00 $256,586.00 $0.00 100.0% $251,505.00 100.0% MWPAT Interest(-) $0.00 $41,042.34 $79,518.82 $38,476.48 51.6% $43,557.39 51.5% Sub-total : DEBT SERVICE ($22,002.92) ($498,613.62) ($1,706,393.66) ($1,207,780.04) 29.2% ($512,371.99) 30.3% INTERFUND TRANSFERS Transfer to General Fund-Indirest Cost $75,059.13 $450,354.78 $900,710.00 $450,355.22 50.0% $439,370.52 50.0% Transfer to Capital Projects(-) $0.00 $600,000.00 $600,000.00 $0.00 100.0% $ 0.00 0.0% Sub-total : INTERFUND TRANSFERS ($75,059.13) ($1,050,354.78) ($1,500,710.00) ($450,355.22) 70.0% ($439,370.52) 50.0% Total : EXPENSES ($263.729.86) ($2,456,305.92) ($5,592,600.00) ($3,136,294.08) 43.9% ($1,859,321.03) 38.0% NET PROFT/(LOSS) $261,790.31 $512,877.58 $0.00 ($512,877.58) $979,065.52 TOWN OF NORTH ANDOVER - SEWER ENTERPRISE FUND OPERATING STATEMENT WITH BUDGET FOR PERIOD 07101/14 THROUGH 12131114 Fiscal Year: 2014-2015 FY15 MTD FYI Year To Date Budget Budget Balance FYI Year To Date 12/1/14-12/31/14 07101/14-12/31114 07/01113-12131/13 REVENUES REVENUE Interest/Penalties(+) $1,542.93 $15,959.63 $23,264.00 $7,304.37 68.6% $18,412.39 83.7% User Charges(+) $470,219.83 $2,340,788.21 $4,225,171.68 $1,884,383.47 55.4% $2,345,598.14 54.1% Sewer Hookups(+) $59,807.00 $86,377.00 $65,000.00 ($21,377.00) 132.9% $18,456.00 28.4% Other Fees(+) $5,514.31 $17,913.29 $398,015.00 $380,101.71 4.5% $25,999.16 8.7% Rental Income(+) $ 0.00 $ 0.00 $ 0.00 $ 0.00 0.0% $240.00 0.0% Interest Income(+) $1,086.92 $5,021.44 $7,000.00 $1,978.56 71.7% $3,391.37 84.8% Total : REVENUES $538,170.99 $2,466,059.57 $4,718,450.68 $2,252,391.11 52.3% $2,412,097.06 51.0% EXPENSES SALARIES Salaries(-) $30,281.96 $191,557.83 $356,950.00 $165,392.17 53.7% $175,886.49 47.9% Sub-total :SALARIES ($30,281.96) ($191,557.83) ($356,950.00) ($165,392.17) 53.7% ($175,886.49) 47.9% EXPENDITURES Expenses(-) $15,187.75 $81,807.31 $325,700.00 $243,892.69 25.1% $71,775.86 22.5% Sewer Assessments(-) $0.00 $850,567.57 $1,655,000.00 $804,432.43 51.4% $773,401.78 47.2% Sub-total : EXPENDITURES ($15,187.75) ($932,374.88) ($1,980,700.00) ($1,048,325.12) 47.1% ($845,177.64) 43.2% DEBT SERVICE Long Term Principal(-) $0.00 $100,471.97 $1,251,607.69 $1,151,135.72 8.0% $100,744.78 8.1% MWPAT Principal(-) $0.00 $240,491.05 $424,317.36 $183,826.31 563% $225,313.04 56.2% Long Term Interest(-) $20,710.44 $123,916.29 $246,377.87 $122,461.58 50.3% $147,374.49 50.2% MWPAT Interest(-) $0.00 $1,904.87 $34,634.76 $32,729.89 5.5% $4,565.12 9.2% Sub-total : DEBT SERVICE ($20,710.44) ($466,784.18) ($1,956,937.68) ($1,490,153.50) 23.9% ($477,997.43) 24.0% INTERFUND TRANSFERS Transfer to General Fund-Indirect C, $35,321.93 $211,931.58 $423,863.00 $211,931.42 50.0% $206,762.52 50.0% Sub-total : INTERFUND TRANSFERS ($35,321.93) ($211,931.58) ($423,863.00) ($211,931.42) 50.0% ($206,762.52) 50.0% Total : EXPENSES ($101,502.08) ($1,802,648.47) ($4,718,450.68) ($2,915,802.21) 38.2% ($1,705,824.08) 36.1% NET PROFT/(LOSS) ($436,668.91) ($ 663.411.10) ($ 0.00) ($ 663 411.10) ($ 706,272.981 TOWN OF NORTH ANDOVER - STEVENS ESTATE ENTERPRISE FUND OPERATING STATEMENT WITH BUDGET FOR PERIOD 07/01114 THROUGH 12131/14 Fiscal Year: 2014-2015 FY15 MTD FYI Year To Date Budget Budget Balance FYI Year To Date 12/1/14-12/31114 07/01114-12131114 07/01/13-12131113 REVENUES Stevens Estate Receipts(+) $20,388.84 $285,440.21 $292,719.00 $7,278.79 97.5% $182,322.96 67.0% Interest Income(+) $91.20 $489.49 $0.00 ($489.49) 0.0% $248.59 0.0% Misc Revenue(+) $ 0.00 $ 0.00 $0.00 ($ 0.00) 0.0% $17.37 0.0% Total : REVENUES $20,480.04 $285,929.70 $292,719.00 $6,789.30 97.7% $182,588.92 67.1% EXPENSES SALARIES Salaries(-) $7,675.57 $80,270.04 $108,932.00 $28,661.96 73.7% $68,315.91 71.1% Sub-total :SALARIES ($7,675.57) ($80,270.04) ($108,932.00) ($28,661.96) 73.7% ($68,315.91) 71.1% EXPENDITURES Expenses(-) $9,651.93 $84,310.66 $136,165.50 $51,854.84 61.9% $66,656.24 51.5% Sub-total : EXPENDITURES ($9,651.93) ($84,310.66) ($136,165.50) ($51,854.84) 61.9% ($66,656.24) 51.5% INTERFUND TRANSFERS Transfer to General Fund-Indirect Cost $3,968.46 $23,810.76 $47,621.50 $23,810.74 50.0% $23,230.02 50.0% Sub-total : INTERFUND TRANSFERS ($3,968.46) ($23,810.76) ($47,621.50) ($23,810.74) 50.0% ($23,230.02) 50.0% Total : EXPENSES ($21,295.96) ($188,391.46) ($292,719.00) ($104,327.54) 64.4% ($158,202.17) 58.2% NET PROFT/(LOSS) ($815.92) $97,538.24 $0.00 ($97,538.24) $24,386.75 TOWN OF NORTH ANDOVER SPECIAL REVENUE FUNDS & TRUST FUNDS BALANCES as of 12/31/14 Fiscal Year: 2014-2015 Month: December Fiscal Year: 2015 Fund Description Beginning Balance Revenue Expense Fund Balance MUNCIPAL FUNDS 2021502 Police Bullet Proof Vest $19,905.00 $0.00 $0.00 $19,905.00 2021507 Police Traffic Enforcement Grant ($1,478.94) $7,649.12 ($6,65T62) (11487.44) 2021508 Fire Safe Grant $350.32 $0.00 ($285.52) $64.80 2021509 Fire Hazmat Grant $2,595.00 $8,122.00 ($6,762.41O) $3,955.00 2021515 Osgood/andover Grant $5,009.27 $4.91 $0.00 $5,014.18 2021517 Elder Service Affairs Grant $0.00 $0.00 ($17,020.43) ($17,4720A3) 2021520 Library State Aid $50,511.40 $15,468.35 ($14,124.4'10) $51,855.75 2021521 N A Arts Council $7,202.72 $54.63 ($2,170,00) $5,087.35 2021529 Police-Underage Alcohol Enforcement Progra $0.00 $2,422.40 ($4,59148) ($2,,,170.418) 2021530 Pedestrian and Bicycle Safety Enforcement $0.00 $2,640.71 (,$2,4140.56) $0.15 2021532 Energy Efficiency Conservation BIock Grant $144.69 $0.00 $0.00 $144.69 2021533 State 911 Dept Support and Incentive Grant Pr( ($68,716.00) $0.00 $0.00 ($68,716.410) 2021539 Fire Safe Grant-Seniors $3,018.00 $5,023.00 ($2j'79.56) $5,861.44 2031021 CPA $6,784,648.07 $1,226,988.68 ($1,137„89!2.83) $6,873,743.92 2031200 Police Outside Details ($35,304.05) $281,916.46 ($282„970.416) ($36,358.55) 2031201 Fire Outside Details ($;1,9941.12) $10,665.62 ($10,27„1 62) ($1,41413.12) 2031202 DPW Recycling Bins $1,579.01 $0.00 $0.00 $1,579.01 2031203 Home Compositing Bins $188.00 $223.00 $0.00 $411.00 2031204 Host Community Planning $100,675.38 $25,000.00 ($8,803.05) $116,872.33 i 2031205 Host Community Traffic Enforcement $69,884.46 $18,240.98 ($2,099.00) $86,026.44 2031207 Health Food Consultant $81,668.91 $21,005.00 ($2:3,04111.4:67) $79,667.24 2031208 Health Septic Consultant $19,405.89 $15,030.00 ($13,776.75) $20,659.14 2031210 Field Maintenance $4,484.18 $450.00 $0.00 $4,934.18 2031211 Health DeptRevovling $33,143.96 $381.64 ($14,3111.41) $19,206.19 2031213 Youth Services $223,371.38 $105,443.18 ($189,812.39) $139,002.17 2031217 Elder Services Revolving $17,313.34 $11,042.00 ($1:1,470.60) $1.4,884.74 2031219 Board Of Appeals-Postage $317.72 $1,427.80 ($1„213.413) $531.89 2041300 Fire Damage Reimbursement Thirft Shop $22,481.02 $0.00 $0.00 $22,481.02 j 2041301 Wetlands Filing Fees $20,414.51 $39,808.00 (,$21„1511.28) $39,072,23 2041302 Police Insurance Reimbursement $0.00 $12,882.23 ($12,4882.23) $0.00 2041308 Appellant Tax Board Appeals $74,393.00 $0.00 $0.00 $74,393.00 2041309 Jared/IV Sherwood Drive $15,450.20 $0.00 $0.00 $15,450.20 2041310 GLSD-Public Safety $21,294.85 $0.00 $0.00 $21,294.85 2041311 Police State 911 Training Grant ($13,416,414) $0.00 $0.00 ($13,4161084) 2051016 CDAG Programs $701.29 $0.00 $0.00 $70129 2051017 CDBG Program $17,624.79 $0.00 $0.00 $17,624.79 2051018 Federal Home Invest Rehab $498.05 $0.00 $0.00 $498.05 2051500 Osgood Roof&Gutters $16,225.00 $0.00 MOO $16,225.00 2051501 Machine Shop Village $1,666.66 $0.00 $0.00 $1,666.66 2051507 Fire Tag LEPC $167.95 $0.00 $0.00 $167.95 2051522 Mass Travel Historical Grant $36,040.77 $0.00 $0.00 $36,040.77 2051523 Old Center Common Project $18157 $0.00 $0.00 $182.57 2051601 ComcastDonation $101,838.53 $7,009.65 ($14141„738.44) $8,109.74 2051603 Family Co-Op Donation $338.44 $0.00 $0.00 $338.44 2051604 Flag Fund $5,164.07 $0.00 $0.00 $5,164.07 2051607 Stevens Foundation Grant-Half Mile Hill $11,687.50 $0.00 $0.00 $11,687.50 I ' 2051608 Trust For Public Land Grant-Half Mile Hill $10,000.00 $0.00 $0.00 $10,000.00 2051610 Stevens Foundation Grant-Cullen Property $5,231.07 $0.00 $0.00 $5,231.07 TOWN OF NORTH ANDOVER SPECIAL REVENUE FUNDS & TRUST FUNDS BALANCES as ®f 12/31/14 Fiscal Year: 2014-2015 Month: December Fiscal Year: 2015 Fund Description Beginning Balance Revenue Expense Fund Balance 2051613 Mary Charles Estate Donation $4,054.46 $0.00 (;,$:1,177,37) $877.09 2051614 Conservation Tree Restoral $6,508.00 $0.00 $0.00 $6,508.00 2051615 Comm Dev Marketing Brochure $150.00 $0.00 $0.00 $150.00 2051616 Police Helmets $693.78 $0.00 $0.00 $693.78 2051618 Student Academy Donation $1,634.81 $0.00 $0.00 $1,634.81 2051626 Sidewalk Constriction $9,236.14 $0.00 ($9„236,14) $0.00 2051627 Foxwood Subdivision $27,871.13 $0.00 $0.00 $27,871.13 2051628 Solid Waste Avisory $7,542.83 $398.14 ($164.59) $7,776.38 2051629 Sewer Mitigation $232,037.72 $28,952.00 $0.00 $260,989.72 2051630 Elder Services Donations $6,321.94 $6,046.79 ($7,211T99) $5,150.74 2051631 Elder Services Nutrition Donations $3,333.16 $0.00 ($3,270,6)0) $63.16 2051633 J Herman Youth Center $7,880.36 $0.00 $0.00 $7,880.36 2051634 Veterans Support The Troops $10.18 $0.00 $0.00 $10.18 2051637 Elder Services Water Donations $68.42 $400.00 ($2:72.82) $235.60 2051638 Festival Committee $23,601.58 ($900.0(.D) ($11„8061.00) $10,901.58 2051640 Recreation Programs $12,659.64 $2,478.00 ("3,375.00) $11,762.64 2051641 Schneider Electric Donations $400.45 $0.00 $0.00 $400.45 2051643 Project Lifesaver $806.32 $0.00 ($288.31) $518.01 2051652 PEG Grant $110,564.59 $0.00 ($10,690.00) $99,874.59 2051654 Fire Dept Equipment Donations $2,514.91 $1,040.00 ($599.40) $2,955.51 2051655 Police Dept Donations $3,991.20 $0.00 $0.00 $3,991.20 2051656 Merrimack Condo's $15,000.00 $0.00 $0.00 $15,000.00 2051657 New Fields $151,110.00 $0.00 $0.00 $151,110.00 2051658 Stevens Memorial Library Donations $1,427.03 $300.00 $0.00 $1,727.03 2051660 Trash Truck Monitoring Project $33,400.00 $0.00 ($261,1281.00) $7,272.00 2051661 Lt.Col Harold A Dushame Memorial $1,272.00 $0.00 (1p 1,195.00) $77.00 2061450 N A Water Conservation Grant Project $31,748.48 $0.00 $0.00 $31,748.48 Total Municipal Funds $8,361,745.95 $1,857,614.29 ($1,966,216,65) $8,253,143.59 SCHOOLFUNDS 2012063 Circuit Breaker ($330,060,U0) $685,849.00 (,$355,789.00) $0.00 2012140 Grant-Literacy $4,474.00 $42,611.00 ($48„570.06) ($1,485,06) 2012201 Race To The Top $3,367.58 $25,429.00 ($28,796,02) $0.56 2012240 Grant-PL 94-142 ($123,231.88) $521,028.00 ($392,,814.90) $4,981.22 2012262 Grant-PL 94-142-Early Childhood ($2,818.11) $14,923.80 ($10,758.90) $1,346.79 2012274 Grant-Special Education Frameworks ($881.77) $8,188.00 ($3,1361.23) $4,170.00 2012305 Grant-Title One ($9,234.96) $140,455.00 ($110,6182.73) $20,537.31 2022290 Grant-DOH-Health $0.44 $43,050.00 ($37,6145.57) $5,404.87 2022625 Grant-Academic Support Service-Summer $0.00 $7,500.00 ($7„499.68) $0.32 2022632 Grant-Academic Support Service-Winter $1,750.00 $1,229.00 $0.00 $2,979.00 2022701 Grant-Kindergarten $0.12 $54,080.00 ($49„089.17) $4,390.95 2022703 Big Yellow School Bus Grant $0.00 $200.00 $0.00 $200.00 2022704 Grant-Fuel up to Play 60 $1,860.20 $0.00 ($1,187.05) $673.15 2032010 Athletic Revolving $12,894.63 $256,492.49 ($96,310,61) $173,076.51 2032011 Community Programs $61,320.86 $514,092.46 ($`;N64,192.56) $11,220.76 2032012 All Day Kindergarten $600.01 $0.00 ($600.00) $0.01 2032013 Preschool Revolving $3,776.98 $56,068.60 ($73,463,17) ($13,617,59) 2032014 Custodial Overtime $5,892.90 $19,349.89 ($34,1172.91) ($8,830.12) 2032015 Rental Fees $8,821.35 $2,474.00 ($5,67100) $5,622.35 2032016 Paid Busing Transportation $53,966.42 $225,149.43 ($59,972,82) $219,143.03 i J TOWN OF NORTH ANDOVER SPECIAL REVENUE FUNDS & TRUST FUNDS BALANCES as of 12/31/14 Fiscal Year: 2014-2015 Month: December Fiscal Year: 2015 Fund Description Beginning Balance Revenue Expense Fund Balance 2032017 Insurance Recovery $41,48836 $0.00 $0.00 $41,488.36 2032018 Alternative Education $0.00 $16,235.00 ($1.6,23:1.011) $0.00 2032020 High School Citizen Donations $10,000.00 $1,000.00 ($10,701.09) $298.91 2032021 High School Shakespeare/drama Club $1,453.90 $0.00 $0.00 $1,453.90 2032023 Middel School Citizen Donation $333.66 $0.00 ($:111816) $20.00 2032024 Middle School After School Program $2,050.00 $0.00 ($3„475.00) ($1,425.00) 2032025 Bradstreet Citizen Donation $3,233.76 $0.00 $0.00 $3,233.76 2032031 Extra Stipends-School $0.00 $6,952.00 ($3.,523.39) $3,428.61 2032035 Unrestricted School Donations $7,022.25 $0.00 (I$6,08108) $939.25 2032036 E-Rate Program $0.00 $20,728.20 ($2,892.71) $17,835.49 2032050 School Lunch Program $31,781.53 $458,188.10 (;$457,170.31) $32,799.32 2051663 Kittredge School Gym Donations $30,000.00 $0.00 ($30,000.00) $0.00 Total School Funds (SI80,1.37.77) $3,121,272.97 ($2,411,24&54) $529,886.66 AGENCY AND TRUST FUNDS 7008086 Conservation Fund $25,077.09 $647.56 $0.00 $25,724.65 7008087 Law Enforcement Trust-State $2,106.49 $0.00 $0.00 $2,106.49 7008088 Law Enforcement Trust-Federal $48,181.60 $105,212.59 ($1,927.08) $151,467.11 7008201 Drug Free School Trust $1,531.15 $0.00 $0.00 $1,531.15 7008202 A Armitage Welfare $37,180.62 $23.17 $0.00 $37,203.79 7008203 Taylor Welfare $767.80 $0.46 $0.00 $768.26 7008204 Moses Towne School $9,245.21 $5.56 $0.00 $9,250.77 7008205 Sarah Barker School $9,800.86 $5.93 $0.00 $9,806.79 7008206 Kate Stevens Cemetary $1,073.50 $0.65 $0.00 $1,074.15 7008207 Sewer Pump Trust $46,460.01 $37.08 $0.00 $46,497.09 7008208 Hyman Koker Cemetary $470.89 $0.25 $0.00 $471.14 7008209 Flag Pole Trust $4,924.82 $0.27 $0.00 $4,925.09 7008210 Helen Coolidge Trust $2,167.73 $1.52 $0.00 $2,169.25 7008211 J&S Stone Welfare $16,510.14 $1.52 $0.00 $16,511.66 7008212 Taylor Fund $78.00 $0.00 $0.00 $78.00 7008213 Sewer Pump Trust $10,583.72 $0.00 $0.00 $10,583.72 7008214 Flag Pole Trust $78.95 $0.00 $0.00 $78.95 j 7008215 Stone Income Fund $16,309.38 $8.99 $0.00 $16,31837 7008216 Elderly and Disabled Tax Fund $20,810.75 $50.00 $0.00 $20,860.75 8008000 Library Trust Fund $735,384.13 $20,013.49 ($20,057.00) $735,340.62 8008070 Health Insurance Trust $3,666,286.52 $3,811.62 ($1,001,93(00) $2,668,168.14 8008071 PEC Mitigation Fund-GIC $587,982.63 $0.00 ($36„71239) $551,269.84 8008085 Stabilization Fund $3,555,225.34 $637,831.52 $0.00 $4,193,056.86 8008086 Affordable Housing Trust Fund $974,271.36 $41,964.26 ($9,294.00) $1,006,941.62 8008087 Capital Stabilization Fund $239,417.24 $214,234.23 $0.00 $453,651.47 8008088 OPEB Stabilization Fund $0.00 $1,003,693.89 $0.00 $1,003,693.89 Total Agency and Trust Finds $10,011,925.93 $2,027,544.56 (SJ,069,920A7) $10,969,549.62 Total All Funds $18,193,534.11 $7,006,431.82 (S5,447,386,,06) $19,752,579.87 i TOWN OF NORTH ANDOVER CAPITAL PROJECT FUND BALANCES as of 12/31/14 Fiscal Year: 2014-2015 Month: December Fiscal Year: 2015 Fund Description Beginning Balance Revenue Expense Fund Balance MUNICIPAL AND SCHOOL FUNDS 3053373 Upgrade Police Radios-2008 $15,651.39 $0.00 $0.00 $15,651.39 3053384 Facilities Master Plan-2011 $9,358.05 $0.00 $0.00 $9,358.05 3053386 Revenue Billing System-2011 $4,200.00 $0.00 $0.00 $4,200.00 3053387 Body Armor Replacement-2011 $1,539.49 $0.00 $0.00 $1,539.49 3053388 Fire Department Radio Equipment-2011 $58,106.64 $0.00 ($58,106.64) $0.00 3053390 Library-HVAC Heating-Ventilation System-2 $55,065.75 $0.00 ($55,06535) $0.00 3053391 Fire Alarm Boxes and Panels-2012 $3,446.54 $0.00 ($2,343.20) $1,103.34 3053393 Police Station Parking Lot and Ext Lights-2012 $647.26 $0.00 $0.00 $647.26 3053396 Replace Fire Chiefs Vehicle-2013 $0.00 $0.00 ($:1,155.85) ($3,155,85) 3053399 Ambulance-2014 $10,008.00 $0.00 $375.00 $10,383.00 3053400 General IT-2014 $2,993.50 $0.00 ($2,99150) $0.00 3053401 Municipal IT-2015 $0.00 $0.00 ($31,002.011) ($31„1102.113) 3053402 Installation of Fiber Optics-Fire $0.00 $57,000.00 $0.00 $57,000.00 3083368 Modular Classrooms-School Cormnunity Prog $10,343.38 $0.00 ($10,34:1.38) $0.00 3083371 Middle School RoofRepalcement-2012 $1,409.00 $0.00 $0.00 $1,409.00 3083373 Atkinson School Window Replacement-2012 $1,043.99 $0.00 $0.00 $1,043.99 3083375 District Wide Paving-2014 $10,699.69 $0.00 ($10,699.69) $0.00 3083376 School Dept IT-2014 $127,131.00 $0.00 ($127„431.011) $0.00 3083378 District Wide Paving-2015 $0.00 $10,343.38 ($142,294.51) ($131,951.13) 3083379 Carpet Replacement-District Wide $0.00 $0.00 (4$1.27,97 5.32) ($127,975.32) 3083380 School IT-2015 $0.00 $0.00 ($172,02130) ($92,022,00) 3083381 Franklin School Drainage Repair $0.00 $73,500.00 ($73,500,00) $0.00 3093318 Design Work-Central Office-2013 $101,460.00 $0.00 ($40,6801.00) $60,780.00 3093320 Facilities Master Plan Implementation 2014 $2,560,235.52 $0.00 ($1,397,773.173) $1,462,461.59 3093321 Energey Efficiency Improv Public Bldg-2014 $2,049,529.08 $0.00 ($2„031,23155) $18,296.53 3093322 Facilities Master Plan-2015 $0.00 $0.00 ($332,1177.52) ($332,077,52) 3105012 Winter Rapid Recovery Road Program ($65,966.05) $123,530.00 ($5756195) $0.00 3114064 Roadway Improvements-2014 $93,927.39 $0.00 ($92,267.69) $1,659.70 3114065 Sidewalk Constrcution-2014 $12,655.60 $0.00 ($127,55.60) $0.00 3114066 Building Maintenance-2014 $79,910.54 $0.00 ($71.,033.04) $8,877.50 3114067 Front End Loader-2014 $4,970.00 $0.00 ($4,970.011) $0.00 3114068 Tractor and Brush Cutter-2014 $26,195.71 $0.00 $0.00 $26,195.71 3114069 Water&High St Lights,Intersection Road Imp $57,14182 $0.00 ($39,1.43.82) $18,000.00 3114070 IT Room Air Conditioning-2014 $64,183.40 $0.00 ($43,Q12kt1.01I) $21,183.40 3114071 Roadways 2015 $0.00 $0.00 ($56,417.5 2) ($56,427.52) 3114072 Sidewa;ks-2015 $0.00 $0.00 ($67,478.24) ($67,478 24) 3114073 Equipment-6 Wheel Dump Truck $0.00 $0.00 ($160,000.00)00.00) ($160,000,00) 3114074 Water and High St Lights,Intersection Improv $0.00 $56,172.39 $0.00 $56,172.39 3114075 Building Maintenance-2015 $0.00 $0.00 ($477,520.60) ($49,52(014) 3114077 Addition to 170 Sutton Street(Thrift Shop) $0.00 $1.50,000.00 $0.00 $150,000.00 Total Municipal and School Funds $5,295,888.69 $470,545.77 (.$4,,892,872430) $874,362.16 I CHAPTER 90 3105011 MA50913 ($328,23108) $831,400.83 ($887,073,60) (,$383,7704.85x') Total Chapter 90 Fund ($328,231011) $831,400.83 (S887,07160) ($383,904,85) I WATER ENTERPRISE FUND 6066337 Meter Replacement Program-2008 $12.74 $0.00 $0.00 $12.74 i TOWN OF NORTH ANDOVER CAPITAL PROJECT FUND BALANCES as of 12/31/14 Fiscal Year: 2014-2015 Month: December Fiscal Year: 2015 Fund Description Beginning Balance Revenue Expense Fund Balance 6066345 Bear Hill Booster Pump Station-2010 $55,688.73 $0.00 ($4,,770.00) $50,918.73 6066346 Rosemont Booster Pump-2010 $336,978.82 $0.00 ($16,700.00) $320,278.82 6066348 Meter Replacement-2011 $236,257.84 $0.00 ($6,J94.09) $230,063.75 6066349 Water System Improvements-2012 $37,568.87 $0.00 ($37J38.87) $430.00 6066350 Heating Ventilating and Air Condit-Equip-201 $417,967.04 $0.00 ($309,396.08) $108,570.96 6066351 Valve and Hydrant Repl and Installation-2012 $73,922.24 $0.00 ($11,225.00) $62,697.24 6066352 Water Main Replacement-2013 $46,692.88 MOO ($2,989.00) $43,703.88 6066353 Water Meter Replacement-2013 $10,605.59 $0.00 $0.00 $10,605.59 6066354 Flocculation&Sedimentation Building-2013 $39,897.72 $0.00 $0.00 $39,897.72 6066355 Concrete Repairs and Coating-2013 $3,702.00 $0.00 ($1„270.00) $2,432.00 6066357 Emergency Power Upgrade WTP-2014 $200,405.00 $0.00 ($20,405,00) $180,000.00 6066358 Water Treatment Plant Process Control Compu $0.00 $600,000.00 ($464.00) $599,536.00 Total Water Funds $1,459,699.47 $600,000.00 ($410,552,04) $1,649,147.43 SEWER ENTERPRISE FUND 6076206 Sewer Sys Ext In Watershed $6,211.06 $0.00 $0.00 $6,211.06 6076212 Sewer Gpr III-1994 $8,973.58 $0.00 $0.00 $8,973.53 6076213 N Main Street Sewer-1995 $4,581.40 $0.00 $0.00 $4,581.40 6076216 Sewer Sys Improv $12,112.95 $0.00 $0.00 $12,112.95 6076224 Johnson Circle Pump Station 2 $4,740.00 $0.00 $0.00 $4,740.00 6076226 New Bonny Lane Pump Station $16,240.00 $0.00 $0.00 $16,240.00 6076233 Sutton Street Sewer Improvements-2009 $79,785.47 $0.00 ($55,757.83) $24,027.64 6076236 Sewer Utility Truck-2012 $2,344.90 $0.00 ($2,316,90) $28.00 6076237 Rea's Pond Sewer Pump Station-2013 $51,799.33 $0.00 ($2,850.39) $48,948.94 6076238 School St&Bunkerhill Sewer Replacement-2, $1,145.06 $0.00 $0.00 $1,145.06 6076239 School and Bunkerhill St Sewer Replacement- $132,330.93 $0.00 ($34„123.98) $98,206.95 6076240 Improv to various Pump Stations-2014 $1,389,718.38 $0.00 ($279,53921) $1,110,179.17 6076241 Sewer Utility Truck $0.00 $2,316.90 $0.00 $2,316.90 Total Sewer Funds 51,709,983.06 $2,316.90 ($374,58931) $1,337,711.65 STEVENS ESTATE 6126501 Landscape Phase III $1,740.20 $0.00 $0.00 $1,740.20 Total Stevens Estate $1,740.20 $0.00 50.00 $1,740.20 Total All Funds 58,139,079.34 $1,904,263.50 (56,564,28615) $3,479,056.59 i f ' i i Town of North Andover Cash Balances by FUND Fiscal Year: 2014-2015 Date Range: 07/0112014-01/31/2015 Increases Decreases Account Number Title Beginning Balance Debits Credits Cash Balance 1001001.0.0.0000.0000.0.104200.0000.0000.00.00 Cash Unrestricted-Century-Lockbox 21,726.99 22,252,817.05 20,954,892.90 1,319,651.14 1001001.0.0.0000.0000.0.104300.0000.0000.00.00 Cash Unrestricted-Bank of America 1,123,756.46 1,045,496.18 2,169,252.64 0.00 1001001.0.0.0000.0000.0.104500.0000.0000.00.00 Cash Unrestricted-TD Bank North Money MarkE 1,405,806.46 6,339,921.11 5,422,525.85 2,323,201.72 1001001.0.0.0000.0000.0.104600.0000.0000.00.00 Cash Unrestricted-Century Money Market 252,646.39 382.32 0.00 253,028.71 1001001.0.0.0000.0000.0.104700.0000.0000.00.00 Cash Unrestricted-Georgetown Savings 108,127.79 1,025,055.41 882,775.42 250,407.78 1001001.0.0.0000.0000.0.104800.0000.0000.00.00 Cash Unrestricted-Ambulance Fund 54,049.31 506,869.33 526,823.58 34,095.06 1001001.1.0,0000.0000.0.104100.0000.0000.00.00 Cash Unrestricted-Payroll 949,659.98 19,880,979.43 19,011,398.87 1,819,240.54 1001001.1.0.0000.0000.0.105000.0000.0000.00.00 Cash Unrestricted-MMDT#11-44196756 3,059.12 2,999,073.82 1,000,000.00 2,002,132.94 1001001.1.0.0000.0000.0.105400.0000.0000.00.00 Cash Unrestricted-Riverbank Money Market 631,007.81 1,164.37 0.00 632,172.18 1001001.1.0.0000.0000.0.105500.0000.0000.00.00 Cash Unrestricted-Riverbank Checking 50.00 0.00 50.00 0.00 1001001.1.0.0000.0000.0.105700.0000.0000.00.00 Cash Unrestricted-Century Sweep 630,000.00 3,910,000.00 4,230,000.00 310,000.00 1001001.1.0.0000.0000.0.106100.0000.0000.00.00 Cash Unrestricted-TDBanknorth#8245912840 2,953,035.65 38,833,342.84 39,952,605.80 1,833,772.69 1001001.1.0.0000.0000.0.106400.0000.0000.00.00 Cash Unrestricted-UnibankA/P (536,401.54) 33,676,226.43 34,315,876.24 (1,176,051.35) 1001001.1.0.0000.0000.0.106500.0000.0000.00.00 Cash Unrestricted-Unibank-MM Wire Transfer: 943,178.33 10,836,053.23 11,362,812.11 416,419.45 1001001.1.0.0000.0000.0.106900.0000.0000.00.00 Cash Unrestricted-Mt.Washington CD's 11,274,034.43 63,803.32 0.00 11,337,837.75 1001001.1.0.0000.0000.0.107000.0000.0000.00.00 Cash Unrestricted-Lowell Five Money Market 14,665,189.50 26,585,114.15 31,657,136.43 9,593,167.22 1001001.1.0.0000.0000.0.107900.0000.0000.00.00 Cash Unrestricted-Century School MCC 107,762.97 85,186.63 8.62 192,940.98 1001001.1.0.0000.0000.0.108800.0000.0000.00.00 Cash Pentucket Bank MM 0.00 750,287.67 0.00 750,287.67 Total FUND: 1001001 34,586,689.65 168,791,773.29 171,486,158.46 31,892,304.48 2021515.1.4.0410.0000.0.106600.0000.0000.00.00 Cash-Unrestricted-Century Bank-Osgood Higl 19,486.08 4.91 0.00 19,490.99 Total FUND: 2021515 19,486.08 4.91 0.00 19,490.99 2031213.1.0.0000.0000.0.108200.0000.0000.00.00 Cash Century-Recreastion-Youth Services 50,716.20 4,662.43 1,955.77 53,422.86 Total FUND: 2031213 50,716.20 4,662.43 1,955.77 53,422.86 2032011.1.0.0000.0000.0.108100.0000.0000.00.00 Cash Century-School Com Prog 4836 178,369.99 180,016.64 0.00 358,386.63 Total FUND: 2032011 178,369.99 180,016.64 0.00 358,386.63 2032050.2.3.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Stoneham School Lunch (0.01) 0.00 0.00 (0.01) 2032050.2.3.0000.0000.0.106300.0000.0000.00.00 Cash-Unrestricted-TD Bank-School Lunch 49,702.92 477,198.55 441,258.78 85,642.69 Total FUND: 2032050 49,702.91 477,198.55 441,258.78 85,642.68 6126064.1.0.1237.0000.0.104000.0000.0000.00.00 Cash Unrestricted-StevensEstate 117,002.29 50,924.13 167,926.42 0.00 6126064.1.0.1237.0000.0.108600.0000.0000.00.00 Cash Unrestricted-TD Bank Stevens Estate 0.00 310,154.37 103,733.17 206,421.20 Printed: 02/05/2015 2:18:58 PM Report: rptGLCashBalances 3.5.07 Page: 1 Town of North Andover Cash Balances by FUND Fiscal Year: 2014-2015 Date Range: 07/01/2014-01/31/2015 Increases Decreases Account Number Title Beginning Balance Debits Credits Cash Balance Total FUND: 6126064 117,002.29 361,078.50 271,659.59 206,421.20 7008086.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Conservation Fund 25,311.73 25,319.73 50,631.46 0.00 7008086.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Conservation Fund 0.00 50,642.73 25,315.73 25,327.00 Total FUND: 7008086 25,311.73 75,962.46 75,947.19 25,327.00 7008087.1.0.0210.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Law Trust-State 0.91 0.00 0.00 0.91 Total FUND: 7008087 0.91 0.00 0.00 0.91 7008088.1.0.0210.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Law Trust-Federal 48,181.60 107,228.89 3,943.38 151,467.11 Total FUND: 7008088 48,181.60 107,228.89 3,943.38 151,467.11 7008202.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-AArmitageWelfare 38,460.00 38,472.10 76,932.10 0.00 7008202.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-A Armitage Welfare 0.00 76,949.22 38,466.05 38,483.17 Total FUND: 7008202 38,460.00 115,421.32 115,398.15 38,483.17 7008203.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-TaylorWelfare 768.61 768.85 1,537.46 0.00 7008203.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Taylor welfare 0.00 1,537.80 768.73 769.07 Total FUND: 7008203 768.61 2,306.65 2,306.19 769.07 7008204.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Moses Towne School 9,244.36 9,247.26 18,491.62 0.00 7008204.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Moses Towne School 0.00 18,495.73 9,245.81 9,249.92 Total FUND: 7008204 9,244.36 27,742.99 27,737.43 9,249.92 7008205.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Sarah Baker School 9,817.48 9,820.60 19,638.08 0.00 7008205.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Sarah Baker School 0.00 19,642.45 9,819.04 9,823.41 Total FUND: 7008205 9,817.48 29,463.05 29,457.12 9,823.41 7008206.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Kate Stevens Cemetary 1,073.00 1,073.36 2,146.36 0.00 7008206.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Kate Stevens Cemetary 0.00 2,146.83 1,073.18 1,073.65 Total FUND: 7008206 1,073.00 3,220.19 3,219.54 1,073.65 7008207.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Sewer Pump Trust 61,522.09 61,541.47 123,063.56 0.00 7008207.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Sewer Pump Trust 0.00 123,090.95 61,531.78 61,559.17 Total FUND: 7008207 61,522.09 184,632.42 184,595.34 61,559.17 7008208.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Hyman Kober Cemetary 465.45 465.59 931.04 0.00 7008208.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Hyman Kober Cemetary 0.00 931.24 465.52 465.72 Printed: 02/05/2015 2:18:58 PM Report: rptGLCash Balances 3.5.07 Page: 2 Town of North Andover Cash Balances by FUND Fiscal Year: 2014-2015 Date Range: 07/01/2014-01/31/2015 Increases Decreases Account Number Title Beginning Balance Debits Credits Cash Balance Total FUND: 7008208 465.45 1,396.83 1,396.56 465.72 7008209.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Flag Pole Trust 460.64 460.78 921.42 0.00 7008209.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Flag Pole Trust 0.00 921.62 460.71 460.91 Total FUND: 7008209 460.64 1,382.40 1,382.13 460.91 7008210.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Helen Coolidge Trust 2,516.52 2,517.32 5,033.84 0.00 7008210.1.0M00.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Helen Coolidge Trust 0.00 5,034.96 2,516.92 2,518.04 Total FUND: 7008210 2,516.52 7,552.28 7,550.76 2,518.04 7008211.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-J&S Stone Welfare 2,863.68 5,728.71 8,592.39 0.00 7008211.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-J&S Stone Welfare 0.00 5,729.53 2,864.13 2,865.40 Total FUND: 7008211 2,863.68 11,458.24 11,456.52 2,865.40 7008215.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Stone Income Fund 14,593.08 14,597.68 29,190.76 0.00 7008215.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Stone Income Fund 0.00 29,197.25 14,595.38 14,601.87 Total FUND: 7008215 14,593.08 43,794.93 43,786.14 14,601.87 7008300.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Special Purpose Fund 412,322.42 199,570.61 611,893.03 0.00 7008300.1.0.0000.0000.0.108700.0000.0000.00.00 Cash Unrestricted-Agency Funds Escrow 0.00 298,199.22 33,788.61 264,410.61 Total FUND: 7008300 412,322.42 497,769.83 645,681.64 264,410.61 7008301.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Student Activity 322,972.38 1,055.80 324,028.18 0.00 7008301.1.0.0000.0000.0.108500.0000.0000.00.00 Cash Unrestricted-Lowell Five Student Activity 0.00 589,378.78 288,219.46 301,159.32 Total FUND: 7008301 322,972.38 590,434.58 612,247.64 301,159.32 7008302.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Highway Bonds 250.02 26,130.11 26,130.11 250.02 7008302.1.0.0000.0000.0.105200.0000.0000.00.00 Cash Unrestricted-Century Highway Sub Accts 151,832.25 13,694.55 12,630.82 152,895.98 Total FUND: 7008302 152,082.27 39,824.66 38,760.93 153,146.00 7008303.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Conservation Escrow Trust 10,786.48 381,869.21 376,869.21 15,786.48 7008303.1.0.0000.0000.0.105300.0000.0000.00.00 Cash Unrestricted-Century Conservation Sub 3,218,478.08 85,140.87 291,611.20 3,012,007.75 Total FUND: 7008303 3,229,264.56 467,010.08 668,480.41 3,027,794.23 7008304.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Passbook-Planning Board 92,960.34 0.00 0.00 92,960.34 Total FUND: 7008304 92,960.34 0.00 0.00 92,960.34 7008305.1.0.0000.0000.0.104000.0000.0000.00.00 Cash Unrestricted-Passbook-Conservation 19,078.39 0.00 0.00 19,078.39 Printed: 02/05/2015 2:18:58 PM Report: rptGLCashBalances 3.5.07 Page: 3 Town of North Andover Cash Balances by FUND Fiscal Year: 2014-2015 Date Range: 07/01/2014-01/31/2015 Increases Decreases Account Number Title Beginning Balance Debits Credits Cash Balance Total FUND: 7008305 19,078.39 0.00 0.00 19,078.39 8008000.1.0.0000.0000.0.107400.0000.0000.00.00 Cash-Sovereign Bank 69200014327 13,002.47 1,245.33 9,651.07 4,596.73 8008000.1.0.0000.0000.0.107500.0000.0000.00.00 Cash-Fidelity Z70-052116 342,856.49 87,406.15 89,173.00 341,089.64 8008000.1.0.0000.0000.0.107600.0000.0000.00.00 Cash-Fidelity Investments Z70-052116 378,866.81 105,891.79 97,972.29 386,786.31 8008000.1.0.0000.0000.0.108000.0000.0000.00.0o Unrestricted TD Bank Library Copier 658.36 2,819.96 804.36 2,673.96 Total FUND: 8008000 735,384.13 197,363.23 197,600.72 735,146.64 8008070.1.0.0914.0000.0.104000.0000.0000.00.00 Cash Unrestricted-MMDT-Health Ins Trust 3,666,286.52 3,000,051.62 3,998,170.00 2,668,168.14 Total FUND: 8008070 3,666,286.52 3,000,051.62 3,998,170.00 2,668,168.14 8008085.1.0.0000.0000.0.106200.0000.0000.00.00 Cash- Smith Barney-CD#4714 934,990.32 2,270.79 881.68 936,379.43 8008085.1.0.0000.0000.0.107800.0000.0000.00.00 Cash-Lowell Five Money Mkt#4064091 2,619,909.09 2,619,909.09 5,239,818.18 0.00 8008085.1.0.0000.0000.0.108400.0000.0000.00.00 Cash Lowell 5-Stab CD 0.00 3,257,977.62 0.00 3,257,977.62 Total FUND: 8008085 3,554,899.41 5,880,157.50 5,240,699.86 4,194,357.05 8008086.1.0.0000.0000.0.107700.0000.0000.00.00 Cash Lowell Five Money Mkt#4013101 974,271.36 32,670.26 0.00 1,006,941.62 Total FUND: 8008086 974,271.36 32,670.26 0.00 1,006,941.62 8008087.1.0.0000.0000.0.107100.0000.0000.00.00 Cash Unrestricted-Century Bank CD's 0.00 454,234.30 258.67 453,975.63 Total FUND: 8008087 0.00 454,234.30 258.67 453,975.63 8008088.1.0.0000.0000.0.108300.0000.0000.00.00 Cash Sage-OPEB Stabilization 0.00 1,004,134.73 0.00 1,004,134.73 Total FUND: 8008088 0.00 1,004,134.73 0.00 1,004,134.73 48,376,768.05 182,589,947.76 184,111,108.92 46,855,606.89 End of Report Printed: 02/05/2015 2:18:58 PM Report: rptGLCashBalances 3.5.07 Page: 4 Consent Items wwwuuuwwwwmm mwmuu�ummuwuu uwummuu�u uwuoa�wuu umuuwwwwwwwuuuu�ummuuuwmwwwuuww mm!wwwwumwwmuummwmmmmm DEPARTMENT iw ouummwmmwwmimwmnan>n�imwumum uuuuuu NORTIi ANDOVER FIRE 124 Main Street Norte Andover, Mass. 01845 ANDREW V. MELMKAS Chief (978) 688-9593 Fire CHO Business (9. 78) 688-9590 Fu' (978) 688-9594 January 8, 2015 Laurie Burzlaff The Fire Department has received a donation form the Harold Dushame Trust for the purchase of 8 new Honor Guard uniforms in the amount of$6082.00. 1 am requesting that the acceptance of this donation By the Board of Selectmen be addressed at their next available meeting. I have attached a copy of the letter and check. Thank you Diane Morrison, NAFD SERVI (33 PROUDLY SINCE 1921 HAROLD A. DUSHAME IRREVOCABLE TRUST c%: Robert D. Murgia, Jr. 8 Canterbury Street Andover, MA. 01810 978-475-8666 (h) 978-289-2102 (c) rdmuLc iap_verizon.net i Mr. Matt Davis c/o: North Andover Fire Dept. 124 Main Street North Andover, MA 01845 i i RE: Honor Guard Uniforms Dear Mr. Davis: We are in receipt of your request for eight new Honor Guard uniforms. Enclosed is a check for $6,082:00. This figure is based on correspondence from Ben's Uniforms of Amesbury, MA., dated December 8, 2014, signed by Mr. Timothy Crotts. Sincerely, Robert D. Murgia, Jr. Dorothy I. Chamberlain Trustee Trustee HAROLD A DUSHAME IRREVOCABLE TRUST 53-7135/2113 120 30 ADELAIDE AVE METHUEN,MA 01844 Jt1=)n o Idtt�N tit= A6PTtt ( 8 .�..v�. ii GeorgetownBank 1: 2 1 1 3 7 13 5 3 0120 �-�---— Diu /i A�umivuir�i". � POLICE Ykl/ ---Community Partnership--- � Urw The®ffice of Chief Paul J. Gallagher TO: Andrew Maylor, Town Manager FROM: Paul J. Gallagher, Chief of Police DATE: February 3, 2015 RE: Contribution to Police Department The family of Harold A. Dushame wishes to donate$3199.70 to the North Andover Police Department for the purchase of two Honor Guard uniforms in memory of Mr. Dushame. Mr. Dushame was a beloved resident of North Andover that passed away in 2012. He was known for his tireless work to make North Andover a great community to work and live in. During his lifetime he often donated his time and funds to the benefit of the town. I recommend the Board of Selectmen approve this generous donation for the police department. It will enable this dedicated Honor Guard Unit to have ten members to portray the best of the North Andover Police Department at events. Sergeant Michael Davis, the supervisor of the Honor Guard Unit, is a family relative of the Dushame family, and will be present to speak of the members of the Board. 1475 Osgood Street, North Andover, Massachusetts 01845 Telephone: 978-683-3168 Fax: 97€3-685-0249 53-7135/2113 119 HAROLD A DUSHAME IRREVOCABLE TRUST >'e 30 ADELAIDE AVE ME�THUEN,MA 01844 ate S� 4AYh1 ORDEROR &GeorgetownBank Oh(FcRM5 0 L L 9 -- i i Department of Veterans Services Ica North Andover®Boxford District ,, y 120 Main Street ° North Andover,NA 01845 To: Laurie Burzlaff From: Edward Mitchell Re: Donation Date: February 3, 2015 The Veteran Services Office received a donation from Susan W. Tompkins U.S.in the amount of $100.00. This is to be used by the Veterans Services Department for Outreach work Support the Troops. We ask that this matter be placed on the agenda of the next Board of Selectmen Meeting for their acceptance. Regards, 'Edward Mitchell Director of Veterans Services Attachment _ 3= "And there were in the same country shepherds abiding • �`� in the field,keeping watch _ 1 over their flock by nig h t. - Luke 2:8 I (7/isng you the peace of Christmas and may your New Year shine with possibility! D. A,V, w . •, i I r 1 i SUSAN W.TOMPKINS 5-751 /110 641 190 CHICKERING RD.,UNIT 203D _ NORTH ANDOVER,MA 01845 DATE e7i Shield` PAY TO THE t '` LYE^, t] b ORDER OF 1 �C( too L-) •-MnLLARS 8 Santarn�er Bank,nk ,N.A. 1 )� 1 tl MEMO\i CCk - l2 l X1:0 L L0 7 5Z 50': - - - 0 64 L INTEROFFICE MEMORANDUM DATE: January 5, 2015 TO: Andrew Maylor, Town Manager FROM: Linda Hmurciak, Superintendent WTP Glen Alt, Assistant Superintendent WTP RE: Chemical Storage Tanks —Permit Fee Waivers CC: Ray Santilli We are requesting that the Board of Selectmen waiver all fees on the above referenced Town Project regarding the installation of new chlorine storage tanks at the Water Treatment Plant. INTEROFFICE MEMORANDUM DATE: January 6, 2015 TO: Andrew Maylor, Town Manager i FROM: Linda Hmurciak, Superintendent WTP Glen Alt, Assistant Superintendent WTP RE: Emergency Power Upgrades —Permit Fee Waivers CC: Ray Santilli We are requesting that the Board of Selectmen waiver all fees on the above referenced Town Project regarding the upgrades of all equipment to be connected to the emergency generator at the Water Treatment Plant. Grantor: VRD Acquisition, LLC 100 Andover By-Pass North Andover, MA 01845 Grantee: Town of North Andover 120 Main Street North Andover, MA 01845 Title Reference: Book 8978, Page 306 CONSERVATION RESTRICTION VRD ACQUISITION, LLC, 100 Andover By-Pass,North Andover, Essex County, Massachusetts,being the sole owner, for my successors and assigns ("Grantor"), acting pursuant to Sections 31,32, and 33 of Chapter 184 of the Massachusetts General Laws, hereby grant to the Town of North Andover, 120 Main Street,North Andover, MA 01845, acting by and through its Conservation Commission, by authority of Chapter 40 Section 8C, and its permitted successors and assigns ("Grantee"), with QUITCLAIM COVENANTS, for valuable consideration, in perpetuity and exclusively for conservation purposes,the following Conservation Restriction on a parcel of land located in the Town of North Andover, Massachusetts constituting approximately 13.6076 acres ("Premises"), as shown in Exhibit"A" attached hereto and more particularly shown plan entitled"Plan of Land showing proposed conservation area dedication and Access Easement at Maplewood Reserve in North Andover, MA, Date: July 7, 2014, Scale 1"=40', Merrimack Engineering Services, 66 Park Street, Andover, Massachusetts 01810" and recorded with the Essex North Registry of Deeds as Plan Number 17115. For Grantor's title see Essex County Northern District Registry of Deeds Book 8978,page 306. I. PURPOSES: This Conservation Restriction is defined in and authorized by Sections 31-33 of Chapter 184 of the General Laws and otherwise by law. The purpose of this Conservation Restriction is to assure that the Premises will be maintained in its current condition in perpetuity and for conservation purposes,predominantly in a natural, scenic and undeveloped condition, and to prevent any use or change that would materially impair or interfere with its conservation and preservation values. These values include the preservation of the open space as noted on the plan attached hereto to be maintained in its current condition to contribute to the protection of the scenic and natural character of said open space lot, the protection of which will enhance the open-space value of this land. Said Open space abuts Harold Parker State Park by the westerly boundary line of said open space and contains approximately 13.076 acres of wooded land for passive recreation, nature walking, education and nature study. II. PROHIBITED ACTS AND USES,EXCEPTIONS THERETO,AND PERMITTED USES A. Prohibited Acts and Uses Subject to the exceptions set forth herein,the Grantor will not perform or permit the following acts and uses which are prohibited on, above, and below the Premises: (1) Constructing,placing or allowing to remain any temporary or permanent building,tennis court, landing strip, mobile home, swimming pool, asphalt or concrete pavement, sign, fence, billboard or other advertising display, antenna, utility pole,tower, conduit, line or other temporary or permanent structure or facility on, above or under the Premises; (2) Mining, excavating, dredging or removing from the Premises of soil, loam,peat, gravel, sand,rock or other mineral resource or natural deposit or otherwise make topographical changes to the area; (3) Placing, filling, storing or dumping on the Premises of soil, refuse,trash, vehicle bodies or parts, rubbish, debris,junk,waste or other substance or material whatsoever or the installation of underground storage tanks; (4) Cutting,removing or otherwise destroying trees, grasses or other vegetation; (5) Activities detrimental to drainage, flood control, water conservation, water quality, erosion control, soil conservation, or archaeological conservation; (6) Use,parking or storage of vehicles including motorcycles,mopeds, all-terrain vehicles, trail bikes, or any other motorized vehicles on the Premises except for vehicles necessary for public safety (i.e., fire,police, ambulance, other government officials) in carrying out their lawful duties; (7) The disruption, removal, or destruction of the stone walls or granite fence posts on the Premises [if applicable]; (8) No portion of the Premises may be used towards further building or development requirements on this or any other parcel other than those required on this or any other parcel. (9) The use of the Premises for more than de minimis commercial recreation, business, residential or industrial use of the Premises. (10) Any other use of the Premises or activity thereon which is inconsistent with the purpose of this Conservation Restriction or which would materially impair its conservation interests. B. Reserved Rights and Exceptions The Grantor reserves the right to conduct or permit the following activities and uses on the Premises, but only if such uses and activities do not materially impair the conservation values or purposes of this Conservation Restriction: (1) Vegetation Management. In accordance with generally accepted forest management practices, removing of brush, selective de minimis pruning and cutting to prevent, control or remove hazards, disease, insect or fire damage, or to preserve the present condition of the Premises. (2) Non-native or nuisance species. The removal of non-native or invasive species,the interplanting of native species, and the control of species in a manner that minimizes damage to surrounding, non-target species and preserves water quality. (3) Wildlife Habitat Improvement. With the prior written permission of Grantee,measures designed to restore native biotic communities, or to maintain, enhance or restore wildlife, wildlife habitat, or rare or endangered species including selective planting of native trees, shrubs and plant species; (4) Signs. The erection,maintenance and replacement of signs with respect to hunting,trespass, identity and address, sale of the Premises,the Grantee's interest in the Premises, and the protected conservation values; and, (5) Permits. The exercise of any right reserved by Grantor under this Section B shall be in compliance with zoning,the Wetlands Protection Act, and all other applicable federal, state and local laws, rules,regulations, and permits. The inclusion of any reserved right requiring a permit from a public agency does not imply that the Grantee or the Commonwealth takes any position whether such permit should be issued. (6) Such other non-prohibited activities requested by the Grantor and expressly approved in writing by the Grantee, in its sole and exclusive discretion, which permission may only be given if the Grantee expressly finds that the activity is consistent with, and does not materially impair,the purposes or conservation values of the Premises C. Notice and Approval. Whenever notice to or approval by Grantee is required under the provisions of paragraphs A, Grantor shall notify Grantee in writing not less than 60 days prior to the date Grantor intends to undertake the activity in question. The notice shall describe the nature, scope, design, location,timetable and any other material aspect of the proposed activity in sufficient detail to permit the Grantee to make an informed judgment as to its consistency with the purposes of this Conservation Restriction. Where Grantee's approval is required, Grantee shall grant or withhold approval in writing within 60 days of receipt of Grantor's request. Grantee's approval shall not be unreasonably withheld,but shall only be granted upon a showing that the proposed activity shall not materially impair the purposes of this Conservation Restriction. Failure of Grantee to respond in writing within 60 days shall be deemed to constitute approval by Grantee of the request as submitted, so long as the request sets forth the provisions of this section relating to deemed approval after 60 days in the notice. III. LEGAL REMEDIES OF THE GRANTEE A. Legal and Injunctive Relief i The rights hereby granted shall include the right to enforce this Conservation Restriction by appropriate legal proceedings and to obtain injunctive and other equitable relief against any violations, including, without limitation, relief requiring restoration of the Premises to their condition prior to the time of the injury complained of(it being agreed that the Grantee will have no adequate remedy at law). The rights hereby granted shall be in addition to, and not in limitation of, any other rights and remedies available to the Grantee for the enforcement of this Conservation Restriction. Grantee agrees to cooperate for a reasonable period of time prior to resorting to legal means in resolving issues concerning violations provided Grantor ceases objectionable actions and Grantee determines there is no ongoing diminution of the conservation values of the Conservation Restriction. I Grantor covenants and agrees to reimburse to Grantee all reasonable costs and expenses (including reasonable counsel and survey fees) incurred in enforcing this Conservation Restriction or in taking reasonable measures to remedy, abate or correct any violation thereof, provided that a violation of this Conservation Restriction is acknowledged by Grantor or determined by a court of competent jurisdiction to have occurred. In the event of a dispute over the boundaries of the Conservation Restriction, Grantor shall pay for a survey and permanent monumentation of the boundaries. B. Non-Waiver Enforcement of the terms of this Conservation Restriction shall be at the discretion of Grantee. Any election by the Grantee as to the manner and timing of its right to enforce this Conservation Restriction or otherwise exercise its rights hereunder shall not be deemed or construed to be a waiver of such rights. C. Disclaimer of Liability By acceptance of this conservation restriction, the Grantee does not undertake any liability or obligation relating to the condition of the Premises pertaining to compliance with and including,but not limited to, hazardous materials, zoning, environmental laws and regulations, or acts not caused by the Grantee or its agents. D. Acts Beyond the Grantor's Control Nothing contained in this Conservation Restriction shall be construed to entitle the Grantee to bring any actions against the Grantor for any injury to or change in the Premises resulting from causes beyond the Grantor's control, including but not limited to fire, flood, storm and earth movement, or from any prudent action taken by the Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Premises resulting from such causes. The parties to this conservation restriction agree that in the event of damage to the Premises from acts beyond the Grantor's control,that if it is desirable and feasible to restore the Premises, the parties will cooperate in attempting to do so. IV. ACCESS The Grantor hereby grants to the Grantee, or its duly authorized agents or representatives, the right to enter the Premises upon reasonable notice and at reasonable times, for the purpose of inspecting the Premises to determine compliance with or to enforce this Conservation Restriction. The Grantor also grants to the Grantee, after notice of a violation and failure of the Grantor to cure said violation,the right to enter the Premises for the purpose of taking any and all actions with respect to the Premises as may be necessary or appropriate to remedy or abate any violation hereof, including but not limited to the right to perform a survey of boundary lines. V. EXTINGUISHMENT A. If circumstances arise in the future such as render the purpose of this Conservation Restriction impossible to accomplish,this restriction can only be terminated or extinguished, whether in whole or in part,by a court of competent jurisdiction under applicable law. If any change in conditions ever gives rise to extinguishment or other release of the Conservation Restriction under applicable law,then Grantee, on a subsequent sale, exchange, or involuntary conversion of the Premises, shall be entitled to a portion of the proceeds in accordance with paragraph B below, subject,however,to any applicable law which expressly provides for a different disposition of the proceeds. Grantee shall use its share of the proceeds in a manner consistent with the conservation purpose set forth herein. B. Proceeds. Grantor and Grantee agree that the donation of this Conservation Restriction gives rise to a real property right, immediately vested in the Grantee,with a fair market value that is at least equal to the proportionate value that this Conservation Restriction, determined at the time of the gift,bears to the value of the unrestricted property at that time. Such proportionate value of the Grantee's property right shall remain constant. C. Grantor/Grantee Cooperation Regarding Public Action Whenever all or any part of the Premises or any interest therein is taken by public authority under power of eminent domain or other act of public authority, then the Grantor and the Grantee shall cooperate in recovering the full value of all direct and consequential damages resulting from such action. All related expenses incurred by the Grantor and the Grantee shall first be paid out of any recovered proceeds, and the remaining proceeds shall be distributed between the Grantor and Grantee in shares equal to such proportionate value. If a less than fee interest is taken, the proceeds shall be paid pursuant to the terms of any grant, law or regulation, but otherwise shall be equitably allocated according to the nature of the interest taken. The Grantee shall use its share of the proceeds like a continuing trust in a manner consistent with the conservation purposes of this grant. VI. ASSIGNABILITY A. Running of the Burden The burdens of this Conservation Restriction shall run with the Premises in perpetuity, and shall be enforceable against the Grantor and the successors and assigns of the Grantor holding any interest in the Premises. B. Execution of Instruments The Grantee is authorized to record or file any notices or instruments appropriate to assuring the perpetual enforceability of this Conservation Restriction; the Grantor, on behalf of herself and her successors and assigns, appoint the Grantee their attorney-in-fact to execute, acknowledge and deliver any such instruments on her behalf. Without limiting the foregoing,the Grantor and her successors and assigns agree themselves to execute any such instruments upon request. C. Running of the Benefit The benefits of this Conservation Restriction shall be in gross and shall not be assignable by the Grantee, except in the following instances: As a condition of any assignment, the Grantee shall require that the purpose of this Conservation Restriction continues to be carried out; and the Assignee, at the time of the assignment, qualifies under Section 170(h) of the Internal Revenue Code of 1986, as amended, and applicable regulations thereunder, and is a donee eligible to receive this Conservation Restriction under Section 32 of Chapter 184 of the General Laws of Massachusetts. Any assignment will comply with article 97 of the Amendments to the Constitution of the Commonwealth of Massachusetts, if applicable. VII. SUBSEQUENT TRANSFERS The Grantor agrees to incorporate by reference the terms of this Conservation Restriction in any deed or other legal instrument by which he divests himself of any interest in all or a portion of the Premises, including a leasehold interest and to notify the Grantee within 20 days of such transfer. Failure to do so shall not impair the validity or enforceability of this Conservation Restriction. Any transfer will comply with article 97 of the Amendments to the Constitution of the Commonwealth of Massachusetts, if applicable. The Grantor shall not be liable for violations occurring after his or her ownership. Liability for any acts or omissions occurring prior to any transfer and liability for any transfer if in violation of this CR shall survive the transfer. Any new owner shall cooperate in the restoration of the Premises or removal of violations caused by prior owner(s) and may be held responsible for any continuing violations. VIII. ESTOPPEL CERTIFICATES Upon request by the Grantor, the Grantee shall, within twenty (20) days, execute and deliver to the Grantor any document, including an estoppel certificate, which certifies the Grantor's compliance with any obligation of the Grantor contained in this Conservation Restriction. IX. NON MERGER The parties intend that any future acquisition of the Premises shall not result in a merger of the Conservation Restriction into the fee. The Grantor agrees that it will not grant, and the Grantee agrees that it will not take title,to any part of the Premises without having first assigned this Conservation Restriction to ensure that merger does not occur. X. AMENDMENT If circumstances arise under which an amendment to or modification of this Conservation Restriction would be appropriate, Grantor and Grantee may jointly amend this Conservation Restriction;provided that no amendment shall be allowed that will affect the qualification of this Conservation Restriction or the status of Grantee under any applicable laws, including Section 170(h) of the Internal Revenue Code of 1986, as amended, or Sections 31-33 of Chapter 184 of the General laws of Massachusetts. Any amendments to this conservation restriction shall occur only in exceptional circumstances. The Holder will consider amendments only to correct an error or oversight, to clarify an ambiguity. All expenses of all parties in considering and/or implementing an amendment shall be borne by the persons or entity seeking the amendment. Any amendment shall be consistent with the purposes of this Conservation Restriction, shall not affect its perpetual duration, shall be approved by the Secretary of Energy and Environmental Affairs and if applicable, shall comply with the provisions of Art. 97 of the Amendments to the Massachusetts Constitution, and any gifts, grants or funding requirements. Any amendment shall be recorded in the Essex North Registry of Deeds. XI. EFFECTIVE DATE This Conservation Restriction shall be effective when the Grantor and the Grantee have executed it, and when it has been executed by the Secretary of Energy and Environmental Affairs pursuant to Massachusetts General Laws, Chapter 184, Section 32, and it has been recorded in the Essex North Registry of Deeds. The Grantee shall record this instrument in timely manner in the Essex North Registry of Deeds. XII. NOTICES Any notice, demand,request, consent, approval or communication that either party desires or is required to give to the other shall be in writing and either served personally or sent by first class mail, postage pre-paid, addressed as follows: i To Grantor: VRD Acquisition, LLC c/o Mesiti Development, 15 Dartmouth Drive, Suite 102 Auburn,NH 03032 To Grantee: Town of North Andover, Attn: Conservation, 120 Main Street,North Andover, MA 01845 or to such other address as any of the above parties shall designate from time to time by written notice to the other or that is reasonably ascertainable by the parties. XIII. GENERAL PROVISIONS A. Controlling Law The interpretation and performance of this Conservation Restriction shall be governed by the laws of the Commonwealth of Massachusetts. B. Liberal Construction Any general rule of construction to the contrary notwithstanding,this Conservation Restriction shall be liberally construed in favor of the grant to effect the purpose of this Conservation Restriction and the policy and purposes of Massachusetts General Laws Chapter 184, Sections 31-33. If any provision in this instrument is found to be ambiguous, any interpretation consistent with the purpose of this Conservation Restriction that would render the provision valid shall be favored over any interpretation that would render it invalid. C. Severability If any provision of this Conservation Restriction or the application thereof to any person or circumstance is found to be invalid,the remainder of the provision of this Conservation Restriction shall not be affected thereby. D. Entire Agreement This instrument sets forth the entire agreement of the parties with respect to this Conservation Restriction and supersedes all prior discussions, negotiations, understandings or agreements relating to the Conservation Restriction, all of which are merged herein. XIV. MISCELLANEOUS A. Pre-existing Public Rights. Approval of this Conservation Restriction pursuant to M.G.L. Chapter 184, Section 32 by any municipal officials and by the Secretary of Energy and Environmental Affairs is not to be construed as representing the existence or non-existence of any pre-existing rights of the public, if any, in and to the Premises, and any such pre-existing rights of the public, if any, are not affected by the granting of this Conservation Restriction. WITNESS my hand and seal this day of July, 2014. VRD ACQUISITION, LLC By: Anthony Mesiti, Manager Duly authorized COMMONWEALTH OF MASSACHUSETTS Essex, ss: On this day of July, 2014, before me,the undersigned notary public,personally appeared Anthony Mesiti, Manager,proved to me through satisfactory evidence of identification which was to be the person whose name is signed on the proceeding or attached document, and acknowledged to me that he signed it voluntarily for its stated purpose as Manager of VRD Acquisition, LLC. Notary Public My Commission Expires: APPROVAL AND ACCEPTANCE OF SELECTMEN AND CONSERVATION COMMISSION We,the undersigned, being a majority of the Board of Selectman of the Town of North Andover, Massachusetts, approve the foregoing Conservation Restriction, pursuant to Massachusetts General Laws, Chapter 40, Section 8C and Chapter 184, Section 32 and we the undersigned North Andover Conservation Commission, accept the foregoing Conservation Restriction in accordance with Massachusetts General Laws Chapter 40, Section 8C and Chapter 184, Section 32. Conservation Commission Board of Selectmen COMMONWEALTH OF MASSACHUSETTS Essex, ss: On this day of T1Wd ,y, 2015, before me,the undersigned notary public, personally appeared o u Ps ,4. ,NAWW /' ' ,proved to me through satisfactory evidence of identification which was 0&�>l' b� 1.gaa to be the person whose name is signed on the proceeding or attached document, and acknowledged to me that he/she/they signed it voluntarily for its stated purpose. Notary Public yP My Commission Expire t � lie My C0111:1-1.Expues July COMMONWEALTH OF MASSACHUSE Essex, ss: On this day of , 2015,before me, the undersigned notary public,personally appeared ,proved to me through satisfactory evidence of identification which was to be the person whose name is signed on the proceeding or attached document, and acknowledged to me that he/she/they signed it voluntarily for its stated purpose. Notary Public My Commission Expires: APPROVAL BY SECRETARY OF ENERGY AND ENVIRONMENTAL AFFAIRS COMMONWEALTH OF MASSACHUSETTS The undersigned, Secretary of Executive Office of Energy and Environmental Affairs of the Commonwealth of Massachusetts, hereby certifies that the foregoing Conservation Restriction to the Town of North Andover has been approved in the public interest pursuant to Massachusetts General Laws, Chapter 184, Section 32. Dated: , 2015 Secretary of Energy and Environmental Affairs COMMONWEALTH OF MASSACHUSETTS Suffolk, ss: On this day of ,2015, before me,the undersigned notary public,personally appeared ,proved to me through satisfactory evidence of identification which was to be the person whose name is signed on the proceeding or attached document, and acknowledged to me that he/she signed it voluntarily for its stated purpose. Notary Public My Commission Expires: Exhibit A The land shown as Conservation Area on a plan of land entitled"Plan of Land showing proposed conservation area dedication and Access Easement at Maplewood Reserve in North Andover, MA, Date: July 7, 2014, Scale 1"=40', Merrimack Engineering Services, 66 Park Street, Andover, Massachusetts 01810" and recorded with the Essex North Registry of Deeds as Plan Number 17115 of 2014. Said premises are subject to easements and restrictions as noted on Plan No. 17115 and any easements, covenants and restrictions of record insofar as the same may now be in force and applicable. BUILDING #26 \ UILDING #27 PHASE XVIII CONSERVATION AREA PLANT . PHASE XVII BUILDING #28 PHASE XVIU AT BUILDING #24 PHASE XV °j �• .BUILDING #23, PHASE XV MAPLEWOOD RESERVE i� BUILDING #20 PHASE All IN UILDING #2 BUILDING #19 PHASE A NORTH ANDOVER, MA RASE XVI BUILDING #17 0 150 300 600 SCALE: 1" = 300' BUILDING #22 , / r,r� bSy DATE: ,JULY 7, 2014 PHASE V1X �0 UILDING�#1 `x � MERRIMACK ENGINEERING SERVICES - BUI �N #15 E �` 66 PARK STREET >ILL{ �{G #14 PHXSI-PHXSE�I ANDOVER, MASSACHUSETTS 01810 PHMASE I C� �� 004s� S3 I PHASE V ( iv� \� '�q�%ro 9� ss�Pt+tih s� geyq� sr o uK� BUILDING #13 i r-Ilk 03 94.09' . 139.23 I rJ 00-s3�S , ,�s ' C ' 9 ;n 7'1.87' I l 66.16' 155.0r 51.25' � SFRVATiON AREA- .` N38,1547-W N/F AREA=592,746 S.F. 30.71' 776.50 ; PHASE H " =13.6076 AC, \\ 94.90' GOODWIN S41 32 36 W 5 120.17 y t 48.4$' N42'5237"E S42'52'36"W � `^ 48.85' ixi J BUILDING Q � I,� 4N 4 5.77' 6.00' 4 N38'29'28"E IQ ' 1: u-^ � # 414. 461.46' 7.46` r 46.10, N { 196.14 $46"14'36"E 30-10O` 442.23 S56'00'15"E 20'$6 + { { :n38.88` S47-07'23"E $47"12'57"EN S47-07 23 E 59.55' 2dd J96 a { eA nc Z- 5 35.00 � ' `:j N46`14'53"E > BUILDINGS �'L---�� aid '��' ��,' �� 79.82 N ROS�f@iN ° U PHASE I i 79.05' RQAp 44.79' 41.13' 686.12` 136.42' Rtk!'[E 114 TURNPIKE N/F N/F N� N/F MEADOWS 2189 FEDERAL 1 BUILDING #2 BUILDING #1 N/F RICHARDS REALTY TURNPIKE REALTY MEADOWS TRUST REALTY DEACON- TRUST TRUST TRUST §UNKER BUILDING #26 /----BUILDING #27 PHASE Xvin CONSERVATION AREA PLAN PHASE XVII BUILDING #28 PHASE XVIII AT ' BUILDING #24 PHASE XV BUILDING #23- PHASE XV MAPLEWOOD RESERVE � 7 BUILDING #20 PHASE X111 IN UILDING .5�, sulLplNG #19 PHASE )(I NORTH ANDOVER, MA RASE XVI BUILDING #17 0 150 300 600 SCALE: 1" = 300' BUILDING #22 / .- b8y DATE: JULY 7, 2014 PHASE VIX ACS UILD1NGj�#1 1 j �•� MERRIMACK ENGINEERING SERVICES BUI IN #15 66 PARK STREET I�JI G #14 HSPHXSEI ANDOVER, MASSACHUSETTS 01810 P ASE , � CO ..At. 63� PHASE V f c `1� '�q ' , f�V,� Sl PHEh BUILDING #13 94.09' j^r�'� t, r2�� 139.23' r r CC. $ ' C 71.87' (j ! i 66.16' tI t N38'15 4i N 51.25 A '� , „ o~ ARI=A=592,746 S.F. W /F `� 176.50 ^ i in =13.6076 AC. \ 9�F.90' GaODVtIN j d 30.71' N. PHASE If I ;t " �.. I S41'3236"W c 120.17 1 N45"19 24"E' ,i 9.o t BUILDING 4 48.46'7N42-5237"E S4'020'6"w ' N38"29'28"E C � 46.1{]' 1•' "- .� #4N 414. 461.46' 7.45' c� ' ` 196.14 S46`14 36"E 300.00' 142.23 " 556'00'15"E 20.5 04 65' ,F 38.88' S47'07'23"E S47'12'S7"Ecn S47'�4�7 23 E 59.55' 5 35.00 2 N4B'14'53"E BUILpING�`i �'�-....----� � ��' 79.82' t Y i 79.05' PHASE 1 r`n ROS IN 44.79' 41.13' 686.12 136.42' ROt}� 114 'NRNPIKE ROP►D N/f- F N/F BUILDING #2 BUILDING #1 N/F RICHHARDS MEAD REALTY 2189 FEDERAL 'P� REALTY lu1EADOWS N/F TST STREETS TRUST RE DEACON— TRUST TRUST HUNKER . ` ' North Andover, MA 120 Main Street Phone:978-688-9500 i I Citizen Activity Form Good Goverment Starts with You Date Submitted: December 27,2014 Name: Dianne Hinckley Home Address: 10 East Water Street NORTH ANDOVER MA 01845 Mailing Address: 10 East Water Street NORTH ANDOVER MA 01845 Phone Number(s): (508)527-6208-Cell Email Address: dhinckley47 @yahoo,corn Current Occupation: RN Narrative: RN Department of Developmental Services.Member of the Northeast Region DDS Diversity Committee. Available evenings and weekends. Board(s)/Committee(s): _BOARD OF HEALTH _COMMISSION ON DISABILITY ISSUES _CULTURAL COUNCIL _FESTIVAL COMMITTEE STEVENS ESTATE BOARD OF TRUSTEES Page 1/1 Licensing Commissioners TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 pORTH q O ttt� D a.NO Joyce A. Bradshaw, CMMC F�4y' b Telephone(978)688-9501 Town Clerk, FAX(978)688-9557 C9.. ^po} p�qh T6D�PP`y'(y �S.3 CHUS�t MEMORANDUM I 1 TO: Tracy M. Watson, Chairman, Licensing Commission Members of the Board of Selectmen Andrew Maylor, Town Manager FROM: Karen A. Fitzgibbons, Asst. Town Clerk �u DATE: January 21, 2015 SUBJECT: 2 Wine & Malt License Applications I Attached please find 2 applications from Mukta Shah, on behalf of Merrimack College, for Wine & Malt Licenses for the following events: John Denver Musical Tribute, Rogers Center, on February 21, 2015 from 6:00 pm to 10:00 pm. Ronan Tynan Theatre Show, Rogers Center, on March 6, 2015 from 6:00 pm to 10:00 pm Included are favorable recommendations from the North Andover Police Department, Fire Department and Building Inspector. Please do not hesitate to contact me or Joyce Bradshaw if you have any questions or concerns. Thank you. TOWN OF NORTH ANDOVER ONE DAY LIQUOR LICENSE APPLICATION (30 DAY NOTICE STRONGLY RECOMMENDED) Organization holding event: Mil�-KP-TMAc1C_ C..O C-� Name&Address of Responsible Party: kAOrl P,01(' (�''( = , -- U C� �/ S Contact Number&e-mail <—;RAH _' P.S �=g:q4j� C e G L)l) Location of Event; Type of Event: Is the event being catered? Y No Name of Caterer Date&Time of Event: Non Profit Organization Other Than Non Profit Wlne&Malt All Alcohol Wine & Malt ALCOHOL MUST BE PURCHASED BY THE LICENSEE FROM A WHOLESALER Has permission been received from the property owner to hold this event? Who is serving the alcohol? C?1 �=* y� �C • p.�j� Does the server have liquor liability Insurance Have servers had training in alcohol service? I,the undersigned, understand and agree to the restriction and responsibilities of holding a One Day Alcohol License and certify that 1 am not prohibited from holding such license. I agree that the Town of North Andover is In no way responsible for the actions of the applicant, Applicant's Signature Date � � | TOWN OP NORTH ANDOVER � ONE DAY LIQUOR LICENSE APPLICATION (30 DAY NOTICE STRONGLY RECOMMENDED) Organization holding event: CC Nome&Address of Responsible Party: Contact Number&e-mail JAH t1 Location ofEvent: / Type ofEvent: ' |x the event being catered? No Name ofCaterer Date&Time ofEvent: - Non Profit Organization Other Than Non Profit All Alcohol Wine & Malt ALCOHOL MUST 8E PURCHASED 0Y THE LICENSEE FROM AWHOLESALER Has permission been received from the property owner to hold this event? <\ c7 Who isserving the alcoho|? Does the server have liquor liability Insurance ? Have servers had training|n alcohol service? 1, the undersigned, understand and agree to the restriction and responsibilities of holding a One Day Alcohol License and certify that I am not prohibited from holding such license, |agree that the Town of responsible North nclover is In no way for h e actions of the appUcant. ' | Applicant's Signature Date | r r� / 4 7 NORTH ANDOVER Fri ••-community Partnership•-- To: Karen Fitzgibbons From: Lt. Eric Foulds 3� Date: January 12,2015 Re: One Day Liquor License The Police Department recommends favorable action on Merrimack College's request for a One Day Liquor License Wine &Malt, on Saturday, February 21, 2015 from 6:00pm to 10:00pm at the Rogers Center, as outlined in the application. Merrimack College will need to purchase all alcohol for the event from an ABCC recognized wholesaler or distributor,and will need to provide a copy of the invoice to the Chief of Police no later than one week following the event.The invoice can be delivered by email, U. S. Mail or dropped off at the police station. Sodexo Food Service will need to provide TIPS certificates for all employees involved in the serving of alcoholic beverages unless they have been previously submitted and are currently on file at the Police Department. 1475 Osgood Street, North Andover, Massachusetts 01845 Telephone: 978-683-3168 Fax: 978-681-1172 P it i' x NORTH ANDOVER •--Community Partnership••- To: Karen Fitzgibbons From: Lt. Eric Foulds Date: January 12, 2015 I Re: One Day Liquor License I I The Police Department recommends favorable action on Merrimack College's request for a One Day Liquor License—Wine& Malt,on Friday, March 6, 2015 from 6:00pm to 10:00pm at the Rogers Center, as outlined in the application. i Merrimack College will need to purchase all alcohol for the event from an ABCC recognized wholesaler or distributor, and will need to provide a copy of the invoice to the Chief of Police no later than one week following the event.The invoice can be delivered by email, U.S. Mail or dropped off at the police station. Sodexo Food Service will need to provide TIPS certificates for all employees involved in the serving of alcoholic beverages unless they have been previously submitted and are currently on file at the Police Department. 1475 Osgood Street, North Andover, Massachusetts 01845 Telephone: 978-683-3168 Fax:978-681-1172 TOWN OF NOR'T.H ANDOVER Fire Deparn-nent Hre I leadquarters— Fire I-Irevention Office 124 M STREET NORII-I AIN4) °EI(, MASSACI I(JSE"I"I'S 01845 Anidrew Mekiikas Telephoiw(978) 688-9593 Fire (""hier FAX(978) 688--9594 LL [ McCarthy I.-I o.T I atnelaikas VILM'i oftiorlhandover.coin Fire Prevention Officer —------- fllncqardiy( 1(,) �Lithandovencoiyi ..................... Town Clerk's Office 124 Main St North Andover, Ma January 13, 2015 Karen, The Fire Department recommends favorable action for granting a Wine and Malt License to Merrimack College at the Roger's Center on February 21, 2015. Regards, Lt. Frederick McCarthy Fire Prevention 978-688-9590 'rOWN OF 'NOR,rH ANDOVER Fire Department Centxa� Fire Fleadquarters- Fire Prevention Office 124 MAIN STREET NORTH ANDOVER, MASSACIIIJSETIS 01845 OORT�j Andrew Meln➢kas Fire Chief Telephone(978)688-9593 ['rA)( (978) 688-9594 1,1- F., McCailhy an-ielnikg�( q Lkkjfnorthandpyerxom F-,Ire Prevention Officer fnicearthyrC tgWrtofilortl i andover,con i Town Clerk's Office 124 Main St North Andover, Ma January 15,2015 Karen, The Fire Department recommends favorable action for granting a Wine and Malt License to Merrimack College at the Roger's Center on March 6,10 15. Regards, Lt. Frederick McCarthy Fire Prevention 978-688-9590 Fitzgibbons, Karen From: Brovvn, Gerald Sent Tuenday, January 13, 2O158:58AM To: Fitzgibbons, Karen Subject: RE: 2 One Day Applications Karen The Building Department has nuissues From: Fitzgibbons, Karen Sent: MonUay, ]anuary, 12, 3015 9:42 AM To: Fou|ds, Eric; McCarthy, Fred; Brown, Gerald Cm: Gallagher, Paul; Me|nihas, Andrew; Luathe/ Brian Subject: 2 One Day Applications Good Morning All, Attached please find 2 One Day Wine & Malt applications for events tobe held at the Rogers Center, Merrimack College. Please have your recommendation tonneno later than Tuesday,January 20 m. Thank you, Karen 1 � TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 pORTH 4 Joyce A. Bradshaw,CMMC 0 y` `p Telephone(978)688-9501 Towro Clerk, * * FAX(978)688-9557 �R4Tfo PP'y'(5 �SSACHUSE't MEMORANDUM i TO: Tracy M. Watson, Chairman, Licensing Commission Members of the Board of Selectmen Andrew Maylor, Town Manager p� FROM: Karen A. Fitzgibbons, Asst. Town Clerk x � DATE: February 4, 2015 SUBJECT: One Day Wine &Malt Request Attached please find a request from Mukta Shah, on behalf of Merrimack College, for a One Day Wine & Malt License. The event is a Benny Goodman Tribute to be held on April 25, 2015 at the Rogers Center from 6:00 pm to 10:00 pm. Included are favorable recommendations from the North Andover Police Department, Fire Department and Building Inspector. The fee has been paid. Please do not hesitate to contact me or Joyce Bradshaw should you have any questions or concerns. Thank you. ' � � TOWN OF NORTH ANDOVER � ONE DAY LIQUOR LICENSE APPLICATION (30 DAY NOTICE STRONGLY RECOMMENDED) Organization holding event: Nome&Address of Responsible Porty' . / k� 6 w-/� � �� /� ^'/ 0(T� Contact Number& e-mail Location nfEvent: Type nfEvent: \ |x the event being d7 No Name of Caterer Date&Time ofEvent: `- Non Profit Organization other Than Non Profit /'VVno & Malt `\ All Alcohol VV|ne& Malt\_______----~�' ALCOHOL MUST 8E PURCHASED BY THE LICENSEE FROM AWHOLESALER Has permission been received from the property owner to hold this event? Who is serving the alcohol? [-t��(�_�� Does the server have liquor ||wb|||ty lnsurance?(__� Have servers had training in alcohol sorvioo7__ _- 1, the undersigned, understand and agree to the restriction and responsibilities of holding a One Day Alcohol License and certify that | am not prohibited from holding such ||cenna. |agree that the Town of responsible Noqh nclover Is In no way for h e actions of the upp||conL. 1 � / Applicant's Signature Date � � � � � � � � NORTH ANDOVER rEr -•Community Partnership••• To, Karen Fitzgibbons From: Lt. Eric Foulds Z7- Date: January 29, 2015 Re: One Day Liquor License i The Police Department recommends favorable action on Merrimack College's request for a One Day Liquor License—Wine & Malt, on Saturday,April 25,2015 from 6:00pm to 10:00pm at the Rogers Center,as outlined in the application. Merrimack College will need to purchase all alcohol for the event from an ABCC recognized wholesaler or distributor, and will need to provide a copy of the invoice to the Chief of Police no later than one week following the event.The invoice can be delivered by email, U.S. Mail or dropped off at the police station. Sodexo Food Service will need to provide TIPS certificates for all employees involved in the serving of alcoholic beverages unless they have been previously submitted and are currently on file at the Police Department, 1475 Osgood Street, North Andover, Massachusetts 01845 Telephone: 978-683-3168 Fax: 978-681-1172 'TOWN OF N1 RIP11 ANDOVER Fire Department Clentn,fl Fire HezidqUarters Fire Preva�°rnflon (NEIce 124 MAIN S'"FREET NNORII I A ND(-)V[-,,'R, MASSACIIIJSETTS 0 845 Andrew MeInfl(as Fire Chief Telephone(978) 688-9593 FAX (978) 688-9594 I-IL F, McCarthy Fire Prevention Officer �s --------- fill ca 11 ,(owiiofiiortliaiidovei,.c�,�)tri .................. ---------------- Town Clerk's Office 124 Main St North Andover,Ma January 30,2015 Karen, The Fire Department recommends favorable action for granting a One Day Wine&Malt License to Merrimack College,Roger Center on April 25, 2015 for a performance. Regards, Lt. Frederick McCarthy Fire Prevention 978-688-9590 Fitzgibbons, Karen From: Brown, Gerald Sent: Thursday, January 29, 2015 1:09 PIVI To: Fitzgibbons, Karen Subject: RE: One Day License The Building Dept has no issues ---- ---------------- From: Fitzgibbons, Karen Sent: Thursday, January 29, 2015 12:22 PM To: Foulds, Eric; McCarthy, Fred; Brown, Gerald Cc: Gallagher, Paul; Melnikas, Andrew; Leathe, Brian Subject: One Day License Hi All, Attached please find a Wine& Malt License from Mukta Shah, on behalf of Merrimack College. Please have your recommendations to me no later than Tuesday, February 3 rd Thank you, Karen TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 I NORTH 0*S1.tD ib AN Joyce A. Bradshaw,CMMC 0 z A Telephone(978)688-9501 Totivii Clerk, * r FAX(978)688-9557 �SSACHUSB't i MEMORANDUM TO: Tracy M. Watson, Chairman, Licensing Commission Members of the Board of Selectmen Andrew Maylor, Town Manager FROM: Karen A. Fitzgibbons, Asst. Town Clerk DATE: February 4, 2015 SUBJECT: Change of Manager on All Alcohol License Attached please find a request for a Change of Manager regarding Butcher Boy's All Alcohol License. Donna M. Yameen is petitioning to become the new manager due to the passing of Evon Yameen. Included is a favorable recommendation from the North Andover Police Department, and the fee has been paid. Please do not hesitate to contact me or Joyce Bradshaw if you have any questions or concerns. Thank you. The Corrrnronwealth of Massachusetts Print Form Alcoholic Beverages Control Conrrnission i t 239 Causeway Street A � Boston,MA 02114 r www.mass.gov/abcc 4 v " RETAIL ALCOHOLIC BEVERAGES LICENSE APPLICATION MONETARY TRANSMITTAL FORM APPLICATION SHOULD BE COMPLETED ON-LINE, PRINTED, SIGNED,AND SUBMITTED TO THE LOCAL LICENSING AUTHORITY. ECRT CODE: RETA CHECK PAYABLE TO ABCC OR COMMONWEALTH OF MA: $200.00 (CHECK MUST DENOTE THE NAME OF THE LICENSEE CORPORATION,LLC, PARTNERSHIP,OR INDIVIDUAL) CHECK NUMBER 23269 IF USED EPAY,CONFIRMATION NUMBER A.B.C.C.LICENSE NUMBER(IF AN EXISTING LICENSEE,CAN BE OBTAINED FROM THE CITY) 082600025 LICENSEE NAME Butcher Boy Market Inc ADDRESS 1077 Osgood Street CITY/TOWN North Andover STATE MA ZIP CODE 01845 TRANSACTION TYPE(Please check all relevant transactions ❑ Alteration of Licensed Premises ❑ Cordials/Liqueurs Permit ❑ New Officer/Director ❑ Transfer of License ❑ Change Corporate Name ❑ Issuance of Stock ❑ New Stockholder ❑ Transfer of Stock ❑ Change of License Type ❑ Management/Operating Agreement ❑ Pledge of Stock ❑ Wine&Malt to All Alcohol ® Change of Location ® More than(3)§15 ❑ Pledge of License ® 6-Day to 7-Day License ❑X Change of Manager ❑ New License ❑ Seasonal to Annual ❑ Other THE LOCAL LICENSING AUTHORITY MUST MAIL THIS TRANSMITTAL FORM ALONG WITH THE CHECK, COMPLETED APPLICATION, AND SUPPORTING DOCUMENTS TO: ALCOHOLIC BEVERAGES CONTROL COMMISSION P. O. BOX 3396 BOSTON, MA 02241-3396 The Contntonwealth of Massachusetts Alcoholic Beverages Control Contntission a - 239 Causeway Street Boston,MA 02114 r� w►vw.ntass.gov/abcc PETITION FOR CHANGE OF-LICENSE 082600025TH North Andover���� ABCC License Number City/Town The licensee Butcher Boy Market Inc respectfully petitions the Licensing Authorities to approve the following transactions: r X Change of Manager ® Alteration of Premises ® Pledge of License/Stock ® Cordial&Liqueurs ® Change of Corporate Name/DBA ® Change of Location ® Change of License Type(§12 ONLY,e.g."club"to"restaurant') QX Change of Manager Last-Approved Manager: Evon M Yameen Requested New Manager: Donna M Yameen ® Pledge of License/Stock Loan Principal Amount:$ Interest Rate: Payment Term: Lender: ® Change of Corporate Name/DBA Last-Approved Corporate Name/DBA: Requested New Corporate Name/DBA: ® Change of License Type Last-Approved License Type: Requested New License Type: ® Alteration of Premises:(must fill out attached financial information form) Description of Alteration: ® Change of Location:(must fill out attached financial information form) Last-Approved Location: Requested New Location: i Signature of Licensee .�J wy '✓ L� r ��� �;�� Date Signed If a Corporation/LLc byA tts ayhorized representative) The Commonwealth of Massachusetts Alcoholic Beverages Control Commission _ - 239 Causeway.Street a - Boston, MA 02114 r` www.mass.gov/abcc MANAGER APPLICATION All proposed managers are required to complete a Personal Information Form and attach a copy of the corporate vote authorizing this action and appointing a manager. 1. LICENSEE INFORMATION: Legal Name of Licensee: Butcher Boy Market Inc Business Name(dba): Butcher Boy Address: 1077 Osgood Street City/Town: North Andover State: MA Zip Code: 01845 ABCC License Number: 082600025 Phone Number of Premise: 978-688-511 (If existing licensee) 2. MANAGER INFORMATION: A. Name:I Donna M Yameen B. Cell Phone Number: 978-697-9822 C. List the number of hours per week you will spend on the licensed premises: [Fifty 3. CITIZENSHIP INFORMATION: A.Are you a U.S.Citizen: Yes QX No © B.Date of Naturalization: C.Court of Naturalization: (Submit proof of citizenship and/or naturalization such as U.S.Passport,Voter's Certificate,Birth Certificate or Naturalization Papers) 4. BACKGROUND INFORMATION: A. Do you now,or have you ever,held any direct or indirect, beneficial or financial interest in a license to sell alcoholic beverages? Yes © No ❑X If yes,please describe: B. Have you ever been the Manager of Record of a license to sell alcoholic beverages that has been suspended, revoked or cancelled? Yes © No ❑X If yes,please describe: C. Have you ever been the Manager of Record of a license that was issued by this Commission? Yes F No 0 If yes,please describe: D. Please list your employment for the past ten years(Dates, Position, Employer,Address and Telephone): Butcher Boy Market 1077 Osgood Street North Andover,MA 01845 978 688 1511 Manager since 1980 1 hereby swear under.the pains and penalties of perjury that the information 1 have provided in this application is true and accurate: Signature Date ".��` fJ��,?,��,��w..aa ��;� � , �, �°°� �,�.��r�.��..__ The Commonwealth of Massachusetts Alcoholic Beverages Control Commission 239 Causeway Street Boston,MA 02114 ' www.mass.gov/abcc PERSONAL INFORMATION FORM Each individual listed in Section 10 of this application must complete this form. 1. LICENSEE INFORMATION: B. Business Name(dba) Butcher Boy A. Legal Name of Licensee Butcher Boy Market Inc D.ABCC License Number 082600025 C.Address 1077 Osgood Street (If existing licensee) E.City/Town North Andover State MA Zip Code 01845 F. Phone Number of Premise 978-688-1511 G. EIN of License 042283394 2. PERSONAL INFORMATION: A. Individual Name Donna M Yameen B. Home Phone Number 978-914-6173 C.Address 155 Hoyt Road D.City/Town Bradford State MA Zip Code 01835 E.Social Security Number F. Date of Birth 05/01/1964 G.Place of Employment Butcher Boy Market Inc 3. BACKGROUND INFORMATION: Have you ever been convicted of a state, federal or military crime? Yes ❑ No ❑x If yes,as part of the application process,the individual must attach an affidavit as to any and all convictions. The affidavit must include the city and state where the charges occurred as well as the dis osition of the convictions. 4. FINANCIAL INTEREST: Provide a detailed description of your direct or indirect, beneficial or financial interest in this license. None I am a employee of the establishment. IMPORTANT ATTACHMENTS(8):For all cash contributions,attach last(3)months of bank statements for the source(s)of this cash. *If additional space is needed,please use the last page i hereby swear under the pains and penalties of perjury that the information l have provided in this application is true and accurate: Signature G Date Title (If Corporation/1-LC Representative) Butcher Boy Meat Market, Inc. Unanimous Written Consent of the Directors in lieu of a meeting Effective January 1, 2015 The undersigned, being all of the directors of Butcher Boy Meat Market, Inc, a Massachusetts corporation ("Corporation"), and acting in accordance with Massachusetts law and the Corporation's Amended and Restated Bylaws, do hereby consent to the resolution set forth below without the necessity of calling and holding a meeting, and direct the Corporation's Secretary to file a copy of this consent action with the official records of the Corporation. RESOLVED: That Donna Yameen is hereby appointed as the Manager of the Butcher Boy Market located at 1077 Osgood Street, North Andover, MA 01845. Executed to be effective as of the date marked above. Thomas K. Yam H/ enneth W6.�/Y`a een TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 f NORTH q O`t�JO ,6•NO Joyce A.Bradshaw,CMMC F= •° 6 �� Telephone(978)688-9501 Torn Clerk, * a a * FAX(978)688-9557 SSACHU$ j MEMORANDUM TO: Tracy Watson, Chairman,Licensing Commission Members of the Board of Selectmen Andrew Maylor, Town Manager FROM: Karen A. Fitzgibbons, Asst. Town Clerk` L� SUBJECT: Licensing Renewals for 2015 DATE: December 11, 2014 I I respectfully submit the attached list of establishments for your review in approving their license renewals for the calendar year 2015. Attached are memos from the Police Department, Fire Department and Building Inspector recommending favorable action on most of the renewals, Please see their memos attached. A note to the Board: Butcher Boy's All Alcohol Package Store license lists the late Evon Yameen as the Manager of Record. Donna Yameen is applying to become the new manager of their Alcohol License and is currently working with the North Andover Police Department so as to be in compliance with the fingerprinting bylaw. Sometime in early 2015 the Change of Manager application will be before the Board. In regards to the Section 12 (alcohol pouring licenses),the Building Inspector and Fire Chief have signed off on most of the establishments regarding the Certificates of Inspection. Valid copies of the signed certificates are in the Town Clerk's Office files. All appropriate paperwork regarding Worker's Compensation Insurance and Alcohol Liability Insurance are likewise in the office files. As of this date,the businesses without signed Certificates of Inspection are: Joe Fish and Rolf s. Joe Fish has paid the fee to the Building Office for the Certificate of Inspection, has hired an electrician to remedy the outstanding issues and, according to the Building Office, should be in compliance in approximately one week. Rolf's Certificate of Inspection expired in November 2014. Despite several attempts by the Building Office to secure payment and set up an inspection, Rolf s has only paid the fee at noon today (12/11/2014). The Building Inspector intends to do an inspection this afternoon. Please see the attached memo from Treasurer/Collector Jennifer Yarid regarding the status of outstanding taxes owed to the Town of North Andover. If you have any questions/concerns please do not hesitate to contact me or Joyce Bradshaw. Brigham's, North Andover(M27,P27) Winthrop Avenue Fari Tayarani (978)682-0824 Amplifiers Demoulas Supermarket(M27,P27) Winthrop Avenue Brian Casassa, Manager (978)688-6322 Amplifiers(Music piped through Store) I i 62 Jimmy's Famous Pizza(M34,P4) 1591 Osgood Street Nicholas Papantonakis, Manager (978)685-7776 CABLE TV McDonald's Restaurant(M83,P3) Rte 125 at Walker Road j Charles Lietz, Manager Amplifiers(Muzak) Smolak Farm (M104C,P16) 315 South Bradford Street H. Michael Smolak,Jr. Amplifiers/Instrumental Music/Instruments 1-6, Vocal/Dancing by Patrons Hours: Mon thru Thurs 8:00 am—8:00 pm Fri & Sat 8:00 am— 10:00 pm,Sunday 12:00 noon—9:00 pm I Starbuck's 562 Turnpike Street j Amplifiers i Stop&Shop 757 Turnpike Street Amplifiers Merrimack College—Campus Center(Gildea Hall, Faculty Dining Room (Tax Exempt)Adjourning Lounge, and Warrior's Den) Turnpike Street Alexa Abowitz, Manager (978)683-7111 Various Types/Cable TV/Widescreen TV/Instrumental Music Dancing by Patrons/Vocal Music 18 TOWN OF NORTH ANDOVER Office of the Building Department of N°pTH qti Community Development and Services 1600 Osgood Street, Bldg,20,Suite 2035 North Andover, MA 01845 A so ACHU5���y Gerald Brown, Inspector of Buildings October 21, 2014 To; Karen Fitzgibbons Fr;Gerald Brown Re; Renewal of licenses 2014 The Building Department received the list of 2014 license Renewals from the Town Clerics office for Common Victuallers (Restaurants)that do and don't serve alcohol, The Building Department recommends the renewal of all licenses, 26 establishments that serve alcohol and 40 establishments that do not.The Building Inspectors are still in the process of inspecting each establishment to make sure that they are in accordance with Massachusetts State Building Code, Section 108.15. Sincerely, Gerald Brown Inspector of Buildings NORTH ANDOVER ID , r ••-Community Partnership••• To: Karen Fitzgibbons From:Lt. Eric Foulds Date:October 14,2014 Re: License Renewals The Police Department has no issues with the 2015 license renewal requests as presented, The Police Department will work, in cooperation with the Town Clerk's Office,to ensure that the Civil Fingerprint Background Check Bylaw Is followed for all applicable license renewals, i 1 !I 1475 Osgood Street,North Andover, Massachusetts 01845 Telephone:978-683-3168 Fax:978-681-1172 The lins ng Bo ar or the TOWN OF NORTH ANDOVER Hereby grants an ENTERTAINMENT LICENSE 2014 (SEVEN DAYS) TO SMOLAK .FARMS @ 315 South Bradford Street Under the following provisions: Term: May - December Hours: Monday through Thursday 8:00 am - 8:00 pm Friday and Saturday 8:00 am - 10:00 pm Sunday Noon - 9:00 pm OTHER CONDITIONS: WHEN ANY EVENT IS HELD IN THE FUNCTION TENT WITHIN THE PINE GROVE, THE DANCE FLOOR SHALL BE LOCATED TO THE WEST SIDE OF THE TENT AND MUSIC AND AMPLIFIERS SHALL BE LOCATED TO THE EAST SIDE OF THE TENT. WHEN ANY EVENT IS HELD IN THE FUNCTION TENT WITHIN THE PINE GROVE, ACOUSTICAL, SOUND ABSORBING, PANELS SHALL BE INSTALLED ON THE EAST AND NORTH SIDES OF THE TENT. FOR AMPLIFIERS (X) INSTRUMENTAL MUSIC (X) (4) VOCAL MUSIC (X) DANCING BY PATRONS (X) EXPIRES DECEMBER 31, 2014 Witness our hand, this SIXTH day of JANUARY, 2014 LICENSING BO ARD G �C Extracts from Section 183A of Chapter 140 of the General Laws No innholder,common victualler,keeper of a tavern,or person owing,managing,or controlling any club,restaurant or other establishment required to be licensed under section twelve of chapter one hundred and thirty-eight or under section two,twenty-one A or twenty-one E of chapter one hundred forty, and no persons owning,managing,or controlling any concert,dance,exhibition, cabaret,or public show or any description to be conducted on any premises required to be licensed under the sections described above,shall, as a part of its usual business,offer to view,set up,set on foot,maintain or carry on a concert, dance,exhibition,cabaret or public show of any description,unless and until a license therefore has been issued by the licensing authorities. THIS LICENSE MUST BE DISPLAYED IN A CONSPICUOUS PLACE Ai AI A52Zt1I T. S m o 1 a k, PA 1-A V 1": 978 327-5215 1 F: 978-327-5219 January 22, 2015 BY HAND Licensing Commission c/o Board of Selectmen Town of North Andover 120 Main Street North Andover,, MA 01845 RE: Entertainment License Application ® Smolak Farms Acoustical Services and Report Dear Board Members: On behalf of the Applicant, Smolak Farms, LLC, and enclosed for filing with the record of this matter, please find ten (10) copies of a report entitled "Accoustical Consulting Services and Report," dated January 21, 2015, prepared by Cavanaugh Tocci Associates, Inc. (the "Accoustical Report"). Cavanaugh Tocci Associates, Inc. (or "CTA") is an acoustical firm having significant experience with sound studies involving outdoor music venues. The Applicant has worked closely with TCA to develop a program designed to ensure that sound levels arising from the Function Pavilion at the Farm are in compliance with applicable regulatory standards established by the Commonwealth of Massachusetts Department of Environmental Protection ("MADEP"). This work involved consultation with multiple vendors of sound equipment, equipment experts, and others to select a program that will deliver a consistent level of sound that will be maintained within acceptable levels. To this end, the program for maintaining sound levels includes the following: 1. A so-called "house" speaker system will be procured by the Applicant and used by all DJ's performing services within the tent at the Function Pavilion; 2. DJs and other entertainment would be required to connect their music system signal output to the Smolak Farms amplification input system in order to limit amplification at the sound level source. 3. The loudspeakers would be installed in a fixed position that cannot be moved by the DJ, and those speakers will be pointed away from sensitive receptors (i.e., pointed away from the nearest residences). E,ast Mill, 21 High 44ree8, Suite 301,North Andover,MA (11845 WWW.S_A40LAKVAUGHAN.00A1 SMOLAK & VAUGHAN LLP Licensing Commission c/o Board of Selectmen January 22,2015 4. Prior to installing the Smolak Farms system, CTA will measure the background sound levels (i.e.,the level of sound within the ambient environment as if no music is performed) at representative receptor locations as required by the MADEP noise policy. Based upon its experience, CTA would expect a background sound level to range between 30 and 40 dB which is characteristic of expected background noise levels in a suburban or suburban/rural setting 5. CTA will then calculate the appropriate speaker sound level to determine the acceptable level of sound within the tent such that when it leaves the tent, the sound level will dissipate to a level which meets state regulatory levels. CTA believes this sound level would be in the 80 dB range, and will be field-tested and verified by CTA after equipment is installed. 6. Once the background level and proposed sound level within the tent are established, the speaker equipment will be calibrated to not exceed that sound level which will achieve regulatory compliance with the MA DEP noise standard. That calibration would be locked so that the DJ cannot increase the sound level from the speaker above limits established by CTA. 7. As part of a so-called "belt and suspenders" approach to controlling sound, the Applicant will also install a signaling system comprised of a sound level meter and a red/yellow/green light array. The signal lights would be placed in view of the DJ and Farm personnel. This will allow the DJ and Farm personnel to know how music sound levels compare with establish limits, and would act as a check on the performance of the signal processing system. It is anticipated that the back-up signal system would not display a red light but in the unlikely circumstance a red light would display, the DJ would lower music levels accordingly under the direction of trained Farm personnel in accordance with the Standard Operating Procedures Manual to be developed by TCA 8. When the Smolak Farms system is installed at the property, and prior to holding the first Function Pavilion event, CTA would test the operation of, and calibrate, the system. CTA would then perform sound level system testing to properly set operating limits and to set threshold limits for the above described signaling system. 9. Once the new Pavilion system is installed, calibrated,and tested, CTA would prepare a Standard Operating Procedures Manual and provide training to on-site staff and event DJs contracted by Smolak Farms. CTA would then SAI,r(')I,AK (,3T N/AUGJIAT',� TJ-J? Licensing Commission c/o Board of Selectmen January 22,2015 monitor sound levels during the first two events to evaluate conformance with MassDEP noise policy limits, and observe Farm personnel to ensure compliance with the Standard Operath-ig Procedures Manual. Documentation supporting all information and specifications outlined in- this let-ter are presented in more detail in this Report. As you can see, a great deal of thought and consideration was given to the system and process so that the Farm can both continue to operate in compliance with applicable sound levels, and maintain a relationship with its neighbors. Thank you so much for your time and consideration, Very truly yours, -7 John'T. Smolak JTS: Enclosure(s) cc: H. Michael Smolak, Jr., Manager, Smolak Farms LLC CAVANAUGH TOCCI ASSOCIATES, INCORPORATED i 327 F BOSTON POST ROAD,SUDBURY,MA 01776-3027• (978)443-7871 • www.cavtocci.COM SENIORPRINCIPALS SENIORAND STAFF CONSULTANTS DOUGLAS H.BELL,PRES/DENT ANDREW C.CARBALLEIRA NICHOLAS BROWSE AARON M.FARBO,LEEDAPBD+C TIMOTHY J.FOULKES,FASA NNCEBd.Celt. JOHN T.FOULKES,CTS GREGORY C.TOCCI,P.E FASA,/NCEBd.Cert. DANIEL M.HORAN,LEEDAPBD+C BRION G.KONING PRINCIPALS ELIZABETH L.LAM OUR ALEXANDER G.BAGNALL,CTS KENT F.MCKELVIE,P.E. LINCOLN B.BERRY CHRISTOPHER A.STORCH MATTHEW J.MOORE,CTS EMERITUSPRINCIPAL WILLIAM J.CAVANAUGH,FASA,F-INCE January 22, 2015 Mr. Michael Smolak Smolak Farms 315 South Bradford Street North Andover, Massachusetts 0184 Subject: Smolak Farms—Acoustical Consulting Services and Report—Function Pavilion i Dear Mr. Smolak: In accordance with our scope of services,we have evaluated entertainment sound levels produced by certain events occurring in an area known as the Function Pavilion at Smolak Farms in North Andover, Massachusetts. To this end, the purpose of this study and report is to: ` a) Provide a description of the Function Pavilion site where entertainment events are held; b) Identify applicable local or state standards limiting sound in the environment; I c) Evaluate sound levels produced by events and determine the amount of entertainment sound reduction that may be required; d) Recommend a sound system with the needed capabilities to control entertainment sound; and e) Recommend a standard operating protocol or procedure to ensure continued control of sound levels. Site Overview .. Attached as Figure 1 is an aerial photograph roughly depicting the bounds of Smolak Farms. The Function Pavilion is located within 100 feet of the edge of a man-made irrigation pond at the eastern edge i. of the property. Figure 2 is a reduced scale aerial photograph of the Pavilion area which indicates the approximate distances from the Function Pavilion to the nearest residences not owned by the Smolak Family. The Pavilion is comprised of a temporary tent structure which is installed in the spring and removed in late fall when the Pavilion is closed for the season. The tent and surrounding area are located between existing apple orchards;the Pavilion area is finished ground or lawn. Within one corner of the tent is a demountable dance floor. The tent and demountable dance floor are the only removable structures within 100 feet of the irrigation pond. Further from the Pavilion tent are Farm offices and restrooms. Adjacent to the Pavilion is a hill with a gazebo where couples exchange vows. On occasions, a portable sound reinforcement system is installed to permit guests on the grounds surrounding the gazebo to hear the exchange of vows. MEMBER FIRM,NATIONAL COUNCIL OF ACOUSTICAL CONSULTANTS Mr. Michael Smolak, Smolak Farms Page 2 January 22, 2015 Regulatory Sound Level Limits I Town of North Andover, Massachusetts Smolak Farms is located within a Residence 1 Zoning District as indicated on the Town Zoning Map. On the basis of our internet search and other sources, we did not identify any local bylaws, regulations, or policies of the Town of North Andover that set specific, measurable limits on sound levels and which are applicable to activities at the Smolak Farms Pavilion. Commonwealth of Massachusetts The Commonwealth of Massachusetts regulates sound levels through its Air Pollution Control Regulations promulgated under 310 C.M.R. 7.00 ("State Air Pollution Control Regulations")and administered by the Massachusetts Department of Environmental Protection ("MassDEP"). Section 7.00 (Definitions)of 310 C.M.R. defines "Noise"as ...sound of sufficient intensity and/or duration as to cause or contribute to a condition of air pollution.'" I Noise is regulated under the State Air Pollution Control Regulations as described as follows: (1) No person owning,leasing or controlling a source of sound shall willfully, negligently, or through failure to provide necessary equipment,service, or maintenance or to take necessary precautions cause, suffer, allow,or permit unnecessary emissions from said source of sound that may cause noise. (2)310 CMR 7.10(1)shall pertain to, but shall not be limited to, prolonged unattended sounding of burglar alarms,construction and demolition equipment which characteristically emit sound but which may be fitted and accommodated with equipment such as enclosures to suppress sound or may be operated in a manner so as to suppress sound,suppressible and preventable industrial and commercial sources of sound,and other man-made sounds that cause noise. (3)310 CMR 7.10(1)shall not apply to sounds emitted during and associated with: 1. Parades, public gatherings,or sporting events,for which permits have been issued provided that said parades,public gatherings, or sporting events in one city or town do not cause noise in another city or town; 2. Emergency police,fire,and ambulance vehicles; 3. Police,fire, and civil and national defense activities; 4. Domestic equipment such as lawn mowers and power saws between the hours of 7:00 A.M. and 9:00 P.M. (4)310 CMR 7.10(1)is subject to the enforcement provisions specified in 310 CMR 7.52. The intent of the noise regulation cited above is to prohibit the use of unnecessarily noisy equipment and activities, but does not provide specific, measureable limits or means to establish those limits. As a result, the Commonwealth of Massachusetts, through 310 CMR, has given authority to the MassDEP to establish its own limits(the regulation and policy) and enforce and interpret them as MassDEP sees fit, consistent with the intent of the regulation. ' 310 C.M.R. 7.00(Definitions). cra Mr. Michael Smolak, Smolak Farms Page 3 January 22, 2015 Massachusetts Department of Environmental Protection (MassDEP) The MassDEP policy on noise in the environment is written to principally apply to a new facility seeking approval, but the-policy is also applied to existing activities as well. Approval of the proposed new equipment or proposed corrective measures will not be granted if the installation: 1. Increases off-site broadband sound levels by more than 10 dBA above"ambient"sound levels. "Ambient"is defined as the lowest one-hour background A-weighted sound pressure level that is exceeded 90 percent of the time measured during equipment operating hours. Ambient may also be established by other means with the consent of MassDEP. 2. Produces off-site a"pure tone"condition. "Pure tone"is defined as when any octave band center frequency sound pressure level exceeds the two adjacent frequency sound pressure levels by 3 decibels or more. 3. Creates a potential condition of air pollution as defined in 310 CMR 7.01 and the MassDEP Noise Policy. Note:These criteria are measured both at the property line and at the nearest inhabited building. For equipment that operates,or will be operated intermittently,the ambient or background noise measurements shall be performed during the hours that the equipment will operate and at the quietest times of the day. The quietest time of the day is usually between 1:00 a.m.and 4:00 a.m.on weekend nights. The nighttime sound measurements must be conducted at a time that represents the lowest ambient sound level expected during all seasons of the year. Appropriately,the MassDEP policy applies at the receptor property lines and during hours of Function Pavilion operation. We understand the Pavilion is operated seasonally May through October. Hours of operation are Monday through Thursday between 12:00 p.m. and 7:00 p.m., on Fridays and Saturdays between 12:00 p.m. and,10:00 p.m., and on Sunday, between 12:00 p.m. and 9:00 p.m., except on Sundays_preceding a Monday state or federal holiday, in which case, the Sunday closing hour is extend to 10:00 P.M. Current Conditions We understand that concerns have been raised with respect to low-frequency music sound. This is bass music sound produced by drums, string base, and other instruments typically used to establish rhythm. Such sound exhibits itself as a"thumping"or"booming", and is most often heard from high powered automobile sound systems,for instance. Limiting entertainment sound levels in the Pavilion tent to not more than a specified level is one immediately available means to address neighbors' concerns. This can be done electronically as discussed below. The issue is restricted to loud music as is often played at wedding receptions. Yet there are a number of other types of entertainment that involve music played at low levels as background during a dinner as an example,or live entertainment.not using electronic sound reinforcement such as piano, flute, or acoustic guitar, for example. The problem of objectionable sound in our opinion is solvable as it is only unreasonably loud events that are known to be of concern. Recommendations Based upon our understanding and observations of existing conditions at the Farm property, we, in our professional opinion, have developed a practical approach to controlling sound levels so that they comply with both the Commonwealth regulation and the MassDEP noise policy. To this end, the following is a list of recommendations, and where appropriate, a description of how the recommendation addresses the da Mr. Michael Smolak, Smolak Farms Page 4 January 22, 2015 particular concern, and the expected result of the particular recommendation. Accordingly,we recommend the following: 1. Limit entertainment low-frequency sound levels in the tent area to not more than 80 dB in the 125 Hz and lower one-third octave frequency bands. Low-frequency sound exhibits itself as a"rhythmic thumping"sound, typically produced by drums and string bass, for example. This was noted by a neighbor as being perceptible and most desired to be reduced through the Farms' efforts. 2. Limit entertainment A-weight sound level to not more than 80 dBA in the tent area. A-weight sound level is the descriptor used in the MassDEP noise policy. It is the single-number descriptor most widely used to evaluate sound in the environment, and generally corresponds to the human perception of the loudness of sound. 3. Procure loudspeakers specified in Exhibit A herein, and install the loudspeakers at fixed, designated locations as depicted in the diagram in Exhibit A. These loudspeakers are not to be relocated by visiting DJs without management approval. Aiming of loudspeakers away from nearest residences is important to take advantage of the speaker directivity, in essence pointing sound away from sensitive receptors. The loudspeaker fixed position and orientation are important to take best advantage of loudspeaker directivity. 4. Provide signal conditioning and amplification systems to power loudspeakers as specified in Exhibit B herein. DJs and other entertainment would be required to connect their music system signal output to the Smolak Farms amplification input system. Signal conditioning accomplishes two purposes: it sets a limit on the amount of low-frequency sound the speakers will produce to accomplish the first recommendation, and sets a limit on A-weight sound level produced to accomplish the second recommendation. 5. Assemble a list of selected DJs who understand the importance of sound level control, and who will agree contractually to work and operate their music systems through the Smolak Farms Pavilion sound system and within the limits established by Smolak Farms. 6. As a back-up to the signal processing system, Smolak Farms will provide a signaling system comprised of a sound level meter and a red/yellow/green light array as specified in Exhibit C. The signal lights would be placed generally out of view of the audience, but in view of the DJ. This will allow the DJ to know how music sound levels compare with establish limits, and would act as a check on the performance of the signal processing system. If necessary, the DJ would lower music levels accordingly. The light array would be calibrated at the beginning of the season by Cavanaugh Tocci Associates, Inc. (CTA)through measurements made as described in Exhibit D. 7. Prior to installing the Smolak Farms system, CTA shall measure background sound levels at representative receptor locations as required by the MassDEP noise policy. A scope of work to measure these levels is attached as Exhibit E. 6. Cavanaugh Tocci Associates, Inc. would provide an outline specification and functional diagram for installation by an installing sound system contractor approved C-M Mr. Michael Smolak, Smolak Farms Page 5 January 22, 2015 by Cavanaugh Tocci Associates, Inc. CTA would also review all submittals for equipment to be installed. 7. When the Smolak Farms system is installed at the property, and prior to holding the first event, Cavanaugh Tocci Associates, Inc. would test the operation of the system using the general procedure of Exhibit F. 8. After CTA determines that the Smolak Farms house system has been properly installed and calibrated based upon the specifications described above, CTA would perform sound level system testing to properly set operating limits and to set threshold limits for the above described signaling system. 9. Once the new Pavilion system is installed, calibrated, and tested, CTA would prepare a Standard Operating Procedures Manual and provide training to on-site staff and event DJs contracted by Smolak Farms. 10. CTA would then monitor sound levels during the first two events to evaluate conformance with MassDEP noise policy limits. 11. Copies of the Standard Operating Procedures Manual and the results of testing shall be submitted promptly to the Board of Selectmen, as the Licensing Authority for the Town of North Andover. Based upon our experience having designed sound systems for entertainment venues for 40 years, and providing the standard operating procedures are followed, we are confident that the above steps will ensure that Pavilion entertainment sound levels are maintained within acceptable standards as we have described. If we can provide any further information, please do not hesitate to contact us. Thank you. Yours sincerely, CAVANAUGH TOCCI ASSOCIATES, INC. Gregory C. Tocci, Sr. Principal Consultant 978-639-4102(d) 508-395-3945(c) gtocci @cavtocci.com cc.: Brion G. Koning Matthew J. Moore SAProjects12014114265-Smolak FarmslDeliverableslReports\14265 Smolak 3a.Docx da Figures 00086410'v1 feet earth km roximate Farm property lines and the Pavilion location Figure 1. Aerial photo sho Sm a lak Farms, North Andover, MA i i earfl i feet 1000 meters 300 Figure 2. Aerial photo showing Pavilion location and nearest residences 5molak Farms, North Andover, MA cta EXHIBIT A Loudspeaker Specifications and Positioning/Placement cta STX835 Dual 15" Slot-Loaded Three-Way Speaker Block Diagram + Frequency Response and Impedance w>—° � Its lta .sic * mcO PA._yVE tnrq '� MOUE _...- f M u 1 —re,M We I alt. 1 + aH wTH- IIffO m 1 10 t is \_ zo ID, +aN. ICO78 • + Beamwidth MAN h VLUE 1 Il< ♦ + terry Iw ..� .a,....-.,.�-w+ ._.. . ., ..�.. 4 � � m [ZH. Dimensions .Q�43.4 11 { 0 1.7 t iw low ,yrn Yoocv F.qu•ncy M0 Direetivity Index,Q m w �18.14� �226A 1a ,b 15.5 5683 010 56 0bD xnbo 22A� rnWoncl'IM11 Wag; menu nMaincd in fun paxdv cm—wr mnde with nn siAnal pro«esaing.Graphs arc from unj wmd nic red(Uta. 243.2] 9,6 t 21.2 l�71 3/ � 142.91/ 102,3 3! 3860 A I 201.51) 7.9 J �(126.5 1 5.0 K HARMAN ® O J13L Professional 8500 Balboa Boulevard,P.O.Box 2200 Northridge,California 91329 li_S A. 0 GaMlyht 2013 JBL PrbleasWUel SS STX636 www4bbraecm CRP 01/13A Recommended loudspeaker type(Page 2) Cta c{j : 1Arx i General arrangement of tent, dance floor, loudspeakers, and neighborhood (not to scale) CraI EXHIBIT B Specifications for Signal Conditioning and Amplification Systems dai i Specifications for Signal Conditioning and Amplification Systems Figure B-1 is a functional diagram showing the arrangement of six components comprising the new house sound system for Smolak Farms Function Pavilion. 1. DJ Mixer Input Panel 2. Multi-Band Compressor/Limiter that prevents the system from producing more sound than permitted 3. Digital Signal Processor 4. 2-Channel Audio Power Amplifier 5. Loudspeaker output connection panel 6. 2 Loudspeakers It must be noted that some of these components may be available as combined units. Although there are six components shown in the functional diagram, the first five may be contained in fewer than five devices. There are a variety of component options that could provide the functionality represented below and are readily available from professional audio vendors. At a minimum, we recommend that Smolak Farms purchase two JBL STX835 loudspeakers(or a similar product offering equivalent performance). These are three-way loudspeakers with both mid-range and high-frequency horns and slot-loaded dual 15-inch bass loudspeakers. Note that the 15-inch bass loudspeakers are arranged to optimize directionality towards the audience and minimize directivity of low- frequency sound to the neighborhood. The mid-range and high-frequency horns provide similar directional control in the mid and high frequency ranges,with an output pattern of approximately 60 0 x400. In layman's terms, the recommended loudspeakers have more control and should help to reduce the sound leaving the tent,while also performing better within the tent. AUDO EOUPWRT RACK UWA-BAND OOTAL SIGNAL PROCESSOR 2-O"WEL AUDIO WPUT CONNECRONS COMPRESSORAUTER WTN nR FILTERS POW APLFlER LOASPEA ER OUTPUTS TLI MXM APNITS LEFT W 1 OUT 1 IN 1 OUT 1 to I' ♦ LEFT ''. 600W LOUDSPEAXERS MOUNTED ON STAGS RIGHT W 2 OUT 2 W 2 OUT 2 1R { WGIIT 1 W"T CN RACK PAM 60071 1lORTT ON RAd<PANEL Figure B-1. Functional diagram for new house Pavilion sound system Smolak Farms, North Andover, Massachusetts c EXHIBIT C Smolak Farms Signaling System YACKER TRACKER To provide de a visual ign of Vx)ma d°°i noise for(fd ldddi°u'i a ro d cou s&,,,,lts oi'al age , wet. , da°lfox I fc,)r a d jR, a no n in K-42 grades. 'Whei Yacker I raidmrit;'Apimms to ber a tt"Iffir,5rglw4,but act ara iy signaaEs tor"much noilse.seled the appropriate wurid BeVLA for anv given rMual'k n a rld get the v'ae enm°"Yraoke""K-i tw all anrrrttn PiSUaI reav,prrrle,r wheaa the not k vel rdet5 terra high. 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Unit plugs fnW AC 120 wig d2dritzl outlet ww th iriduded U-opWoveJ tra,isformer(I npul, 100- 240V AC 50-60H),Cj,,Aipiit:a'd CSC 50Gmtk)or can be owd waith 6 AA at al;ea batte it 5(Fold sep>erate1j). Unit crin bn 5ef—,tandnq nr wralFoiaunted. *Traftt:I ght is mmp 9tz,rixed With adjustatrle wund ILv,_t l meter. -Red Upht counte+°r inter,each tu'ru the red light activates,.mush re,:A butter,to res,t couritei to zrrcT. D€✓ad t�e;r5prvity Control con be-set to fjpie rt(.'Ws rlCA e.PL*hf button to Wmua5r9?rt..r.SR.iVICy. him of eiF.manuFA opera^,Inn option of stay,inq on a giwon light m1m, Option stk gem providtil to add the d rileot of arnabran of the lighis. ®!: eeci Ioht stays lit until nr1Me it',auom gue,above set level(determined bj us&,green iirip4 is rwplaced with a JErshinrg yelp w lght as a wraTning.When mind Imel rpachvs 15 dB above sin lru`tthrrr dte,litacedsirenate lvrarrJ. AVn an('Quet tlaa c"r,4 la gu PS or your oven r ici ng)a-d sheen ntionq.IBw,has the optiun of tumir,,ra soutld*s oil Or ofi. Deliyaad h mrt,;,n w ill m id vilml r nln rn!,hnor",ti,r ren'r,t hall J sernrn&z cta � � EXHIBIT D Scope for "ambient sound levels" 8molak Farms ison agricultural business that also operates on entertainment venue on its property. The venue hosts wedding receptions and other gatherings where recorded and live music are played during events. Neighbors eunoundingSmo|ak Farms have complained of music sound during certain q(these events. Smo|ak Farms has m plan bm institute a number of policies and noise controls tu reduce music sound sd nearest residences. Figure D-1im mn aerial photo showing the location of the farm and nearest residences. Figure D-1. Aerial phpto--Qmo|ak Farm, North Andover, MA The purpose of this task is to measure the background sound level as required by the MassDEP noise policy ' for purposes of evaluating the soon hobe installed sound system. Tentative sound monitoring locations are indicated in Figure D-1. Continuous sound monitoring at the two property line locations shown in Figure D-1 will continue for one week to establish background sound levels in connection with evaluating the compliance of the new house entertainment sound system with limits of the MassDEP noise policy. Task 1. Installation of background sound monitors. Travel to North Andover to install two(2) sound monitors and to existing background sound levels. Task 2. Data Processing. Retrieve monitors, download data and process. Determine the applicable K0auoOEP noise policy limit for sound sd nearest residences. Task 3. Report. Prepare report summarizing measurements and indicating MassDEP noise policy limits at nearest residences. cta EXHIBIT E Sound System Calibration Procedure ctzI I Sound System Calibration Procedure The following steps are be taken to calibrate the new house sound system: Installation 1. Place loudspeakers at their proper position as shown in Exhibit A. These would need to be secured to avoid rotating or moving inadvertently or intentionally by DJs or audiences. 2. Secure the table that the DJ uses to place his/her equipment. Provide a drape at the front of the table to conceal the space beneath the table. 3. Place and secure the red/yellow/green light system under the table to one side so that the DJ can see the lights and adjust loudspeaker volume as required. 4. Also, beneath the table, locate the house system cabinet containing input connections, limiter, and loudspeaker amplifiers. Calibration 5. Connect a broadband noise source to the new house system input. 6. Establish the relationship between sound at the edge of the dance floor, at the light array, and at the nearer of the.two sound monitoring locations. These levels would be high enough to properly calibrate sound levels at these three locations. 7. Using the limiter in the new house system, adjust system such that the limits Exhibit A sound levels low enough such that the sound level at the nearer location is within 10 dBA of the MassDEP defined background sound level. These levels should be in general conformance with those made in the first and second recommendations above. EXHIBIT F Cavanaugh Tocci Associates, Inc. Statement of Qualifications crai I I i I � � � � Gregory CTncIi Senior Principal Consultant EDUCATION: Massachusetts Institute of Technology, MS 1973 ' Tufts University, 8S1g7O PROFESSIONAL AFFILIATIONS: Fellow,Acoustical Society ofAmerica Past President,National Council of Acoustical Consultants Past President and Board Certified Member,Institute of Noise Control Engineering Past Chairman,Greater Boston Chapter nf the Acoustical Society of America Member,American Society for Testing and Materials Cn'Choir.ANSI S12VVG44 Speech Privacy REGISTRATION: Professional Engineer in Massachusetts and Rhode Island EXPERIENCE: Ao co-founder with Mr.William J.Cavanaugh, Mr.Tocci served as President of CAVANAUGH TOCCI ASSOCIATES, INC.,through January 2014. Mr.Tocci continues to be responsible for the technical and business activities of the many for which he serves on Senior Principal Consultant. Among types of projects moOogodbvMr.Tnooiomnp000hphvecyandin(o||igibi|ityntudios; mechanical system noise and vibration control studies;environmental noise impact assessments for residential,commercial, and industrial developments;engineering noise abatement programs;and many types of special noise and vibration studies for building and manufacturing industries. Mr, Toed is active in several professional organizations, has served as an invited lecturer at the Harvard School of Public Health and Cornell University,and iu author of the Smflax Acoustical Glazing Design Guide and papers published in various magazines and proceedings. Representative projects for which Mr.Tnoo has consulted include: 0 Fidelity Investments,245Summer Street,Boston,MA Design o[executive conference center and sound and vibration isolation of five 2 MW emergency generators immediately above large auditorium/conference room. 6 Children's Hospital Clinical Building,Boston,KAA Acoustical design of a large hospital building with patient rooms, ORs,laboratories,and vibration sensitive instrumentation including one stationary MR|and the first gantry mounted OR MR|in the U.G. w 5OO Atlantic Avenue,Boston,yNA Building vibration isolation design,HVAC and architectural sound control of a premier hotel (Intercontinental Hotel)and condominium nao(donoo oonotmohad on an existing C/VT vent building, a Federal Express Ground,Moon Township,PA Evaluated the suitability of 20+sites for FedEx Ground parcel handling terminals throughout the U.S. Work � � has involved environmental sound monKohng,oibahe development,sound barrier design,site orientation ho control sound,and presentation 0o town boards. � CM Brion G. Koning Senior Consultant EDUCATION: Embry Riddle Aeronautical University University of Massachusetts Framingham State College FACULTY POSITIONS: New England School of Art and Design Instructor,Architectural and Environmental Acoustics EXPERIENCE: 1979—present;Cavanaugh Tocci Associates,Inc.,Sudbury,Massachusetts Mr.Koning is a Senior Consultant with CAVANAUGH TOCCI ASSOCIATES, INC. He is responsible for data acquisition,analysis, and noise and vibration control recommendations.Typical project responsibilities include measurement and analysis of environmental, industrial,and architectural noise and vibration data.These activities have included the development of acoustical instrumentation systems and measurement procedures. Mr.Koning conducts acoustical methodology and instrumentation training sessions for a variety of clients. He serves as a liaison between client and community on a number of environmental and construction noise projects, assuring favorable and informed relations between contractor, agencies,and community. Representative projects with which Mr.Koning has been involved include: Brooklyn Naval Shipyard,Brooklyn,NY Resource recovery environmental impact statement. MBTA Track Rehabilitation Noise Program Railbed noise and vibration design analysis. U.S.Army Construction Engineering Research Laboratory Rotary wing aircraft noise data collection manual. ® Union Hospital Addition,Lynn,MA Building equipment noise and vibration studies. cta The following are a few of the several outdoor music venue projects with which Cavanaugh Tocci Associates, Inc. has been involved: Client Project Description Project Location Deer Creek Music Center Concert Sound Emission Studies Noblesville, IN Simmons&Assoc., Inc. Polaris Amphitheater Sound Wall Ohio Preservation Society of Newport Rosecliff Mansion outdoor sound study Newport, RI Penn's Landing Corp. Penn's Landing Philadelphia, PA Meadowbrook Farm LLC Amphitheatre Gilford, NH Bogota, Constructora Obreval S.A. Administrativo de Compensar Columbia Smith Alvarez Sienkiewycz(SAS) Knight Point State Park North Hero,VT Clear Channel Entertainment Bank of America Pavillion Boston, MA Kennedy&Violich Architects (KVA) Birmingham Amphitheater Birmingham,AL Hamlin Design Group Corning Preserve Albany, NY Keenan+ Kenny Architects, Ltd Outdoor Amphitheater-Sandshell Design Falmouth, MA Outdoor Music Concerts proposed by Madison Scl Advocates for Springfield Garden Springfield, NY SH Acoustics City of Yonkers Amphitheater CadnA modeling Yonkers, NY cta Public Hearing TOWN OF NORTH ANDOVER OFFICE OF TOWN CLERK 120 MAIN STREET NORTH ANDOVER, MASSACHUSETTS 01845 NORTH Joyce A. Bradshaw �2od`` � Town Clerk �°, a Telephone(978)688-9501 „ FAX(978)688-9557 Wi ^ + ��SSACHUSE��y Memorandum To: Richard M. Vaillancourt, Chairman and Members of Board of Selectmen Andrew W. Maylor, Town Manager From: Joyce A. Bradshaw, CMMC, Town Clerk CA Date: January 22, 2015 Subject: National Grid & Verizon New England Joint Petition-17689177-Chickering Road-New Fire Station The attached pole petitions by National Grid and Verizon New England, Inc. are submitted for your approval: 1. 17689177 - National Grid and Verizon New England, Inc requests permission to locate poles, wires, and fixtures, including the necessary sustaining and protecting fixtures, along and across the following public way: Prescott Street—National Grid petitions to install one 45' class 3 pole. The riser pole will be installed to supply electricity to a pad mounted transformer for the new fire station on Chickering Road. Location approximately as shown on plan attached. 2. All abutters were notified. 3. Recommendations have been solicited from all departments. 4. Police Department will provide officers on site as they determine. 5. Any outstanding issues will be addressed with the appropriate departments. A representative from National Grid and or/ Verizon will be at your meeting on Monday January 26, 2015. Please do not hesitate to contact me or Dave Wicks (978) 725-1418 with any questions. Questions contact Dave Wicks 978 725 1418 PETITION FOR JOINT OR IDENTICAL POLE LOCATIONS North Andover,Massachusetts To the Board of Selectmen Of North Andover Massachusetts NATIONAL GRID and Verizon New England, Inc requests permission to locate poles, wires, and fixtures, including the necessary sustaining and protecting fixtures, along and across the following public way: Prescott St-National Grid petitions to install one 45' class 3 pole. This riser pole will be installed to supply electricity to a pad mounted transformer for the new fire station on Chickering Road. Location approximately as shown on plan attached Wherefore it prays that after due notice and hearing as provided by law,it be granted a location for and permission to erect and maintain poles and wires,together with such sustaining and protecting fixtures as it may find necessary, said poles to be erected substantially in accordance with the plan filed herewith marked—Prescott St-North Andover Massachusetts i 17689177 December 3, 2014 Also for permission to lay and maintain underground laterals, cables, and wires in the above or intersecting public ways for the purpose of making connections with such poles and buildings as each of said petitioners may desire for distributing purposes. Your petitioner agrees to reserve space for one cross-arm at a suitable point on each of said poles for the fire,police, telephone, and telegraph signal wires belonging to the municipality and used by it exclusively for municipal purposes. NATIONAL GRID BY nmL Engineering Department VERITTLIf ANI�ILIC. BY Manager/Right of#vqy Exhibit: A ' 190 Prescott St N 140 Prescott St P887 P888 P2184 P913 Prescott St P886 ........ .gpp: rox Property Line � CPO, Pole 887-50 S- % X- 0 N Pad 887-51 159 Prescott St Qa cCD U rnC, 795 Chickering Rd Jj 696 Osgood St f / > 676 Osgood St ELECTRIC DISTRIBUTION CONSTRUCTION PETITION LEGEND * Proposed 3 Phase __ Existing Primary OH WR# 17689177 transformer on conductor private property _ _ Proposed Primary Date: 11/18/14 Drawn By: David Wicks i Proposed JO Pole UG conductor 2-4°Concrete O Existing JO Pole Encased Conduit Sketch to Accompany Petition for: Riser Service Arrow Proposal to install a riser pole in the public way to EXHIBIT'A'NOT TO SCALE supply an underground electric service to a The exact location of said Facilities to be established by and upon Fire Station at the installation and erection of the Facilities thereof. 795 Chickering Rd, North Andover, MA i Questions contact—Dave Wicks- 978 725 1418 ORDER FOR JOINT OR IDENTICAL POLE LOCATIONS To the Board of Selectmen-North Andover Massachusetts i Notice having been given and public hearing held, as provided by law, IT IS HEREBY ORDERED: that NATIONAL GRID and VERIZON NEW ENGLAND INC. (formerly known as NEW ENGLAND TELEPHONE AND TELEGRAPH COMPANY)be and they are hereby granted joint or identical locations for and permission to erect and maintain poles and wires to be placed thereon,together with such sustaining and protecting fixtures as said Companies may deem necessary, in the public way or ways hereinafter referred to, as requested in petition of said Companies dated the 3rd day of December 2014 All construction under this order shall be in accordance with the following conditions: Poles shall be of sound timber, and reasonable straight,and shall be set substantially at the points indicated upon the plan marked—Prescott St-North Andover Massachusetts. 17689177 Dated December 3, 2014. Filed with this order There may be attached to said poles by NATIONAL GRID and Verizon New England Inc. such wires, cables, and fixtures as needed in their business and all of said wires and cables shall be placed at a height of not less than twenty(20) feet from the ground. The following are the public ways or part of ways along which the poles above referred to may be erected, and the number of poles which may be erected thereon under this order: Prescott St-National Grid petitions to install one 45' class 3 pole. This riser pole will be installed to supply electricity to a pad mounted transformer for the new fire station on Chickering Road. Also for permission to lay and maintain underground laterals, cables, and wires in the above or intersecting public ways for the purpose of making connections with such poles and buildings as each of said petitioners may desire for distributing purposes. I hereby certify that the foregoing order was adopted at a meeting of the of the City/Town of , Massachusetts held on the day of 20 City/Town Clerk. Massachusetts 20 Received and entered in the records of location orders of the City/Town of Book Page Attest: Town Manager' s Report North Andover Fire Department Incidents Only Printed: 1/14/2015 9:20 am From Date:12/01/2014 to:12/31/2014 Jurisdiction: North Andover I i M False Alarms&False Calls 2.0% IM Fire 9.6% ❑Good Intent Calls 0.9% Hazardous Conditions(No Fire) 2.6% Other Type of Incidents 2.6% Rescue&Emergency Medical Service 69.3 ❑Service Calls 13.0% '.. Total: 100.0% i I I Fire 32 Building fire 1 Cooking fire, confined to container 33 Sub-Total,Fire Rescue& Emergency Medical Service 220 EMS call 18 Motor vehicle accident with injuries 1 Rescue, emergency medical call (EMS) call, other 239 Sub-Total,Rescue& Emergency Medical Service Hazardous Conditions(No Fire) 2 Gasoline or other flammable liquid spill 3 Gas leak(natural gas or LPG) 4 Hazardous condition, other 9 Sub-Total,Hazardous Conditions(No Fire) Service Calls 3 Lock-out 10 Water evacuation 1 Water or steam leak 16 Assist invalid 2 Cover assignment, standby, moveup 13 Service call, other 45 Sub-Total,Service Calls Page 1 of 2 MFIncidentsbyReported'rype 02/15/09 North Andover Fire Department Incidents - Reported Type Only Printed: 1/14/2015 9:20 am From Date:12/01/2014 to:12/31/2014 Jurisdiction: North Andover Good Intent Calls 3 Smoke scare,odor of smoke 3 Sub-Total,Good Intent Calls False Alarms & False Calls 1 Smoke detector activation due to malfunction 6 Carbon monoxide detector activation, no CO 7 Sub-Total,False Alarms& False Calls i Other Type of Incidents 4 Special type of incident, other 5 Error or Training Incident 9 Sub-Total,Other Type of Incidents 345 Incident Types Total Count of Unique Incident Numbers for this Period: 344 Page 2 of 2 MFIncidentsbyReportedType 02/15/09 KI North Andover Fire Department Incidents - Primary Type Only Printed: 1/2/2015 10:57 am From Date:12/01/2014 to:12/31/2014 Jurisdiction: North Andover Pdftiary 'Type Incidents False Alarms&False Calls 8.7% ®Fire 1.9% ❑Good Intent Calls 2.1% ®Hazardous Conditions(No Fire) 2.6% ®Other Type of Incidents - _ 2.1% '. Rescue&Emergency Medical Service 70.9% , ❑Service calls 11.6% Total: 100.0 Fire 5 Building fire 2 Cooking fire,confined to container 7 Sub-Total,Fire Rescue&Emergency Medical Service 222 EMS call 19 Motor vehicle accident with injuries 26 Motor vehicle accident with no injuries 1 Removal of victim(s)from stalled elevator 268 Sub-Total,Rescue&Emergency Medical Service Hazardous Conditions(No Fire) 2 Gasoline or other flammable liquid spill 1 Gas leak(natural gas or LPG) 2 Carbon monoxide incident 1 Power line down 1 Arcing,shorted electrical equipment 3 Hazardous condition,other 10 Sub-Total,Hazardous Conditions(No Fire) Service Calls Page 1 of 2 XXFlnddentsbyPrimaryType 08/23/13 North Andover Fire Department Incidents - Primary Type Only Printed: 1/2/2015 10:57 am From Date:12/01/2014 to:12/31/2014 Jurisdiction:North Andover 4 Lock-out 9 Water evacuation 1 Water or steam leak 1 Assist police or other governmental agency 1 Public service 16 Assist invalid 1 Unauthorized burning 2 Cover assignment,standby,moveup 9 Service call,other 44 Sub-Total,Service Calls Good Intent Calls 2 Dispatched&canceled en route 1 No incident found on arrival at dispatch address 2 Smoke scare,odor of smoke 3 Hazmat release investigation w/no hazmat 8 Sub-Total,Good Intent Calls False Alarms&False Calls 2 Sprinkler activation due to malfunction 8 Smoke detector activation due to malfunction 1 Heat detector activation due to malfunction 3 Alarm system sounded due to malfunction 3 Sprinkler activation,no fire-unintentional 7 Smoke detector activation, no fire-unintentional 2 Detector activation,no fire-unintentional 3 Alarm system sounded,no fire-unintentional 3 Carbon monoxide detector activation,no CO 1 False alarm or false call,other 33 Sub-Total,False Alarms&False Calls Other Type of Incidents 1 Citizen complaint 5 Error or Training Incident 2 Special type of incident,other 8 Sub-Total,Other Type of Incidents 378 Total Number of Incident Types Total Count of Unique Incident Numbers for this Period: 378 Grand Total Count of Unique Incident Numbers for this Period: 378 Page 2 of 2 XXAncidentsbyPrimary'rype 08/23/13 lNorth Andover Fire n Incidents ® Primary Type Only Printed: 1/2/2015 11:02 am From Date:01/01/2014 to:12/31/2014 Jurisdiction: North Andover r1uinri Type Incidents IM False Alarms&False Calls 13.5% Fire 2.3% ❑Good Intent Calls 3.0% Hazardous Conditions(No Fire) 4.3% r i ®Other Type of Incidents 1.9% ®Overpressure,Ruptures,Explosion,Overheat(no ensuing fire) 0.1 El Rescue&Emergency Medical Service 65.3% Service Calls 9.2% Severe Weather&Natural Disasters 0.3% Total: 100.0% Fire 20 Building fire 37 Cooking fire,confined to container 2 Chimney or flue fire,confined to chimney or flue 3 Fuel burner/boiler malfunction,fire confined 1 Trash or rubbish fire,contained 7 Passenger vehicle fire 2 Road freight or transport vehicle fire 2 Mobile property(vehicle)fire,other 10 Brush,or brush and grass mixture fire 4 Mulch,natural vegetation fire,other 1 Dumpster or other outside trash receptacle fire 4 Outside equipment fire 2 Special outside fire,other 95 Sub-Total,Fire Overpressure Ruptures,Explosion,Overheat(no ensuing fire) 1 Overpressure rupture of steam pipe or pipeline 1 Overpressure rupture from steam,other 1 Excessive heat,scorch burns with no ignition 3 Sub-Total,Overpressure,Ruptures,Explosion,Overheat(no ensuing fire) Page 1 of 3 XXFIncidentsbyPrimaryType 08/23/13 North Andover Fire Department Incidents o Primary Type Only Printed: 1/2/2015 11:02 am From Date:01/01/2014 to:12/31/2014 Jurisdiction:North Andover Rescue&Emergency Medical Service 2,372 EMS call 157 Motor vehicle accident with injuries 1 Motor vehicle/pedestrian accident j 172 Motor vehicle accident with no injuries 4 Lock-in(if lock out,use 511 ) 2 Search for person on land 1 Search for person in water 1 Extrication of victim(s)from vehicle 3 Removal of victim(s)from stalled elevator 1 Swift water rescue 2 Rescue or EMS standby 4 Rescue,emergency medical call(EMS)call,other 2,720 Sub-Total,Rescue&Emergency Medical Service Hazardous Conditions(No Fire) 9 Gasoline or other flammable liquid spill 50 Gas leak(natural gas or LPG) 30 Carbon monoxide incident 6 Heat from short circuit(wiring),defective/worn 4 Overheated motor 23 Power line down 24 Arcing,shorted electrical equipment 1 Aircraft standby 1 Attempt to burn 33 Hazardous condition,other 181 Sub-Total,Hazardous Conditions(No Fire) Service Calls 33 Lock-out 37 Water evacuation 16 Water or steam leak 18 Smoke or odor removal 6 Animal problem 1 Animal rescue 12 Assist police or other governmental agency 1 Police matter 10 Public service 106 Assist invalid 13 Unauthorized burning 36 Cover assignment,standby,moveup 94 Service call,other 383 Sub-Total,Service Calls Good Intent Calls 54 Dispatched&canceled en route Page 2 of 3 XXAncidentsbyPrimary'rype 08/23/13 North Andover Fire Department Incidents - Primary Type Only Printed: 1/2/2015 11:02 am From Date:01/01/2014 to:12/3112014 Jurisdiction:North Andover 11 No incident found on arrival at dispatch address 9 Authorized controlled burning 1 Vicinity alarm(incident in other location) 15 Smoke scare,odor of smoke 2 Steam,vapor,fog or dust thought to be smoke 2 EMS call,party transported by non-fire agency 20 Hazmat release investigation w/no hazmat 13 Good intent call,other 127 Sub-Total,Good Intent Calls False Alarms&False Calls 1 Local alarm system,malicious false alarm 17 Sprinkler activation due to malfunction 3 Extinguishing system activation due to malfunction 118 Smoke detector activation due to malfunction 18 Heat detector activation due to malfunction 75 Alarm system sounded due to malfunction 32 CO detector activation due to malfunction 16 Sprinkler activation,no fire-unintentional 1 Extinguishing system activation - 100 Smoke detector activation,no fire-unintentional 26 Detector activation,no fire-unintentional 94 Alarm system sounded,no fire-unintentional 33 Carbon monoxide detector activation,no CO 30 False alarm or false call,other 564 Sub-Total,False Alarms&False Calls Severe Weather&Natural Disasters 1 Flood assessment 10 Wind storm,tornado/hurricane assessment 1 Lightning strike(no fire) 12 Sub-Total,Severe Weather&Natural Disasters Other Type of Incidents 3 Citizen complaint 10 Error or Training Incident 47 Fire Exit Drill 19 Special type of incident,other 79 Sub-Total,Other Type of Incidents 4,164 Total Number of Incident Types Total Count of Unique Incident Numbers for this Period: 4,164 Grand Total Count of Unique Incident Numbers for this Period: 4,164 Page 3 of 3 XXFlncidentsbyPrimaryType 08/23/13 n, NORTH ANDOVER POLICE i� •••Community Partnership••- The Office of Chief Paul J. Gallagher TO: Andrew Maylor,Town Manager FROM: Paul J. Gallagher, Chief of Police (. DATE: January 16,2015 RE: December 2014 Crime Statistics The North Andover Police Department had a busy month of December. Our Directed Patrol function was in full effect and with a constant presence in the shopping corridor,the result was only 8 larcenies from the North Andover Mall. This was augmented with foot patrol within the stores and parking lots. The statistic we don't have is the amount of shoppers,employees, and even potential criminals who either felt safer seeing a police officer in the immediate area, or decided not to commit their crime due to police officers randomly in the area. In reviewing the statistics for the month,we can see that November appeared slower than usual as there were marked increases in numerous categories this month, such as calls for service, motor vehicle breaks, and domestic disturbances. We had officers working in plain clothes monitoring liquor establishments and watching for impaired operators. We are happy to report that no liquor violations were observed by any of our license holders.These businesses also appreciated that officers were on premise during the holiday season. Our midnight shift received commendations after they apprehended suspects breaking into cars along the Route 125 stretch. An alert resident observed male subjects entering vehicles and called 911. An immediate response by the midnight shift resulted in four Haverhill residents being arrested for receiving stolen property and breaking into vehicles. Numerous property was recovered and our detective division set out to catalog the property and make notification to the property owners. The suspects utilized"radios"(walkie talkies)to communicate to each other. Ongoing investigation that these suspects may have committed similar crimes in North Andover. Another incident that officers are being commended for great police work was earlier in the month when a reported armed robbery came in via 911. This incident took place in the parking lot of the Butcher Boy where a female was assaulted and her pocketbook taken.The victim was 1475 Osgood Street, North Andover, Massachusetts 01845 Telephone: 978-683-3168 Fax:978-685-0249 assaulted upon entering her vehicle after work. She had significant injuries and had to be transported to the hospital immediately. Upon an initial investigation by responding units, and a follow up from Detectives,search warrants were written,surveillance footage gathered, and in the end,the suspect(one of the victim's own family members)was under arrest and held without bail. The District Attorney's office was pleased with the results and commented that had this crime happened in another jurisdiction,the suspect may have gotten away with the crime. Several local businesses and a resident provided the video that placed the suspect's vehicle at the scene. The North Andover Police Department also participated in the Drive Sober or get Pulled Over campaign. Officers were out on the street in four hour blocks actively seeking impaired operators. This was advertised on the local television,radio stations and our signboards. I I i i North Andover Police Crime Statistics Criminal Activity Nov-14 Dec-14 ttange Domestic Abuse 5 10 5 100.0% A&B,Assault 4 6 2 50.0% Suspicions Activity 79 81 2 2.5% H&E 1 3 2 200.0% B&E MV 6 30 24 400.0% Larceny 29 37 8 27.6% General Disturbance 23 493 0 0.0% Alarms Res&Comm 109 115 6 — 5.5% Aid to Public 59 50 0 .152% 911 Hang Up/Abandon 27 37 10 37.0% Arrests/Summons Nov-14 Dec-14! fikange % ChMge Total Booked 35 46 11 31.4% Arrests 10 14 4 40.0% OUI Arrests 1 3 2 200.0% Summonsed 8 27 19– 237.5% Warrant Arrests 7 1 all -851% PC 0 1 1 #DIVI01 Calls for Service 2727 3570 843 30.9% Proactive Policing Nov-14 Dec phange %Change Motor vehicle Stops 496 819 323 65.1% Motor vehicle Crashes 78 78 0 0.0% Property Checks 1115 1302 187 16.8% COMMulft Service Ofe. Nov-141— Dec-14 ghange %Change Animal Complaints 38 23 15, -39.5% Calls for Service -----37 46 9 -- 24.3% .Document Service 18 20 2 11.1%' Parking Enforcement 3 4 1 33.3% Property Checks 0 0 0 #]DIVIOf North Andover Police Crime Statistics 140 120 _ 100 - 80 :N 60 ca < 40 is 20 — V0 .`P��yz PyyaJ�w yP•,�� 0�� o'? at � c .p o 0 Fey PLO ``°J 50 — 45 Rn 40 0 35 E 30 E 25 V7 20 r 15 - 10 d 5 0 _�- Total Booked Arrests OUI Arrests Summonsed Warrant PC Arrests 1400 _ bi 1200 C 1000 .V p 800 CL 600 — 400 P 200 — L CL 0 _ Motor vehicle Stops Motor vehicle Crashes Property Checks 50 — w 40 U 30 V) L- 20 O 10 -. a t.1 Animal Calls for Service Document Parking Property Checks Complaints Service Enforcement Job Posting/Vacancy Log February 4, 2015 Date Position Department Hiring Manager Status Posted 2/4/15 Superintendent Drinking Bruce Thibodeau Post on 2/4/15 and advertise on line on Water MA Water Works, and MMA. Treatment Plant 2/3/15 Deputy Fire Chief NAFD Maylor/Melnikas Requisition opened with Civil Service, Delegation Agreement received on 2/4/14, to be returned to Civil Service on 2/4/15. Once agreement signed and returned from Civil Service, the process will begin. 1/23/15 Information Technology IT Andrew Maylor Eagle Tribune/Monster ad ran on 1/18/15, Director posted internally 1/23/15. Resumes received and interviews to be scheduled week of 2/9. 1/23/15 P.T. Receptionist Elder Irene O'Brien Receiving resumes, will schedule Services interviews after close date of 2/6/15. 12/30/14 Planner Planning Eric Kfoury Ad in Eagle Tribune/Monster ran 1/4/15, ad in MMA on line 1/6/15. Resumes received, 3 applicants selected for interviews on 2/4/15,to be scheduled for following week. 12/11/14 Library Assistant Stevens Kathleen Keenan Hired Meghan Brown starts 2/9/15. Library Posted internally and on Merrimack Valley Library Consortium. 12/10/14 Department Assistant Planning Jean Enright Hired Bonnie Wolmstromer start date 1/12/15. N/A Office Assistant Elder Irene O'brien Hired Lya Morse start date 1/5/15. Services 11/20/14 Office Assistant Elder Irene O'brien Hired Bonnie Wolmstromer, started Services 12/22/14. Interviewing applicants 11/20/14 Tree Climber Surgeon Public Works Bruce Thibodeau Interview scheduled for 2/6/15. Received resumes from applicants who are not qualified or live out of state. Interviewed "! one qualified applicant, made contingent offer of employment. Applicant declined job due to low salary. Posted to be advertised and placed in Monster.com next cycle. 11/18/14 Dir. Community& Community Andrew Maylor Hired Eric Kfoury who started 1/20/15. Economic Development Development Advertised in MMA on line, Monster and the Eagle Tribune on 11/19/14 10/29/14 Assistant Children's Stevens Kathleen Keenan Hired Chelsey Bell effective January 5, Librarian Library 2015. Receiving applications. 9/22/14 Technical Services & Stevens Kathleen Keenan Hired Anna Call, start date 1/5/15.Posted Reference Librarian Library on line and internally, low applicant pool, reposted 10/30/14. References checked offer pending. NOTE: Four probationary Police Officers began the Police Academy on February 2, 2015. The officers are: Adrian Cuevas, Brandon James, Michael Logan, and Anthony Sousa .2/4/2015 12:15 PM O ,' // / /,� /%�G//�/x'17" LOUDNESS COMPARISON CHART Common Outdoor Noise Level Common hidoor Activities (d BA) Activitie y J // f Rock Band Jet Fly-over over at 1000 ft Gas Lawn Mower at 3 ft Food Blender at 3 ft Diesel Truck at 50 ft at 50 mph Garbage Disposal at 3 ft Noisy Urban Area, Daytime Vacuum Cleaner at 10 'ft Gas Lawn Mower at 100 ft D Commercial Area Normal Speech at 3 ft Heavy Traffic at 300 ft Large Business Office _ Quiet Urban, Daytime; Dis sher Text Room Quiet Urban, Nighttime) Theater, Quiet Suburban, Nighttime" Large Conference Room {Background} Library Quiet Rural Ni httime Bedroom at Night, b Concert Hall (Background) Broadcast/Recording Studio Lowest Threshold of Human Hearing Lowst Threshold of Human Hearing b 11"Cothity AW Stainless Steel http://www.gorhamschaffler.com/db—chart.htm Decibel 1,evel Coriiparisori Chart N Decibel eve Comparison Chart Commercial Industrial Residential dB Level Sones Threshold For Hearing 0 0.00 Good Recording Studio Breathing 10 0.29 Rustling Leaves 15 0.41 Whisper, Mosquito 20 0.57 Library Living/Dining Room 30 1.15 Refrigerator Hum Kitchen/Bathroom 40 2.30 Quiet Office Home Office 50 4.59 Birds at 10' 55 6.50 Conversational Speech 60 9 Piano Practice Electric Shaver 60 9 Business Office Piano Practice 65 13 Noisy Restaurant Office area in plant Street Traffic 70 18 Chamber Music Barking Dog 75 26 Classroom Alarm Clock 75 26 Dishwasher 75 26 Airplane at 1 mile Manual Machines Vacuum Cleaner 80 37 OSHA Required Hearing Protection in Factory 85 52 Reception/Lobby Area Handsaw Garbage Disposal 85 52 Motor Bus Telephone Dial Tone 85 52 Applause in Auditorium Lawn Mower 85 52 Sustained Exposure May Cause Hearing Loss 90 74 Train at 100' Farm Tractor Teenagers Stereo 90 74 Music Practice Room Electric Drill iPod(volume level 5) 94 97 French Horn Average Factory Noise Blender 100 147 Orchestra Diesel Truck THX Home Theater 105 208 Computer Room Printing Press Train 105 208 Bass Drum Heavy Truck Power Saw 110 294 Dog Kennel Power Mower Baby Crying 110 294 Symphony Orchestra Punch Press Squeeky Toy to Ear 110 294 Disco Sandblasting Shotgun Rock Concert Pneumatic Clipper Air Raid Siren Dragcar Racing Military Jet Shotgun KISS Rock Concert-Ottawa, Aircraft Carrier Deck-Jet CA July 15,2009 136db Takeoff I oft 2/11/2015 3:26 PM Noise Level Chart: dB Levels of Common Sounds http://www.noisehelp.com/noise-level-chart.html. Noise Level Chart Like '179 A noise level chart showing examples of sounds with d6 levels ranging from 0 to 180 decibels. dBA Example Home&Yard Appliances Workshop 8 Construction 0 healthy hearing threshold 10 a pin dropping 20 rustling leaves Jump to: 30 whisper 40 babbling brook computer FAQ Noise&No se t'capBasbon 50 light traffic refrigerator Safe Noire Exposure Chart 60 conversational speech air conditioner 70 shower dishwasher Cafe ftd Use 75 toilet flushing vacuum cleaner illeann g Probection for Kuds. 80 alarm clock garbage disposal 85 passing diesel truck snow blower Quotes about GaYoiss,^Na 90 squeeze toy lawn mower arc welder `>o0reuce 95 inside subway car food processor belt sander .. . 100 motorcycle(riding) handheld drill 105 sporting event table saw ........ 110 rock band jackhammer Search the site: 115 emergency vehicle siren riveter 120 thunderclap oxygen torch 125 balloon popping Search this site 130 peak stadium crowd noise =euc fv Ups site search by freefind 135 air raid siren 140 jet engine at takeoff 145 firecracker _._._._ ... ...... 150 fighter jet launch Stay in touch: 155 cap gun 160 shotgun Follow @NoUsetfOic [?]Subscribe to Noise Help ite p 165 .357 magnum revolver on Twitter! updates 170 safety airbag /i 175 howitzer cannon 180 rocket launch h1Y k'm¢rrra"rt i "' - powered ivebsite is MI. 194 sound waves become shock waves P y`' Most noise levels are given in dB A,which are decibels adjusted to reflect the ear's response to different frequencies of sound.Sudden,brief impulse sounds,like many of those shown at 120 dB or greater,are often given in dB(no adjustment). Noise Chart Specifics about the measurement of a particular sound source can be found in the Nr se d`JaO aatorrir7 S,OUnd 4.a ver Patabase,f:-A h7 Sf1-j4/HP,by II;Riott H Berge,Chick We4zel,and Cymhia A Madden,_E-A-KCAL i_raburatoi y,317 Ckcupatiw)aiI lieSaith fe t:nvtronmenta l[Safety Divos>on,an extensive compilation of data on noise level measurements,including many of the values appearing on this chart. Learn more: What is a decibc,eP What are the safe not se exposure ihjjits? rr Get a poster or quality print of this noise chart! 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