Page 120 - Microsoft Word - Annual Report 2016

TREASURER/COLLECTOR OF TAXES

To the Director of Municipal Finance, Town Administrator, Board of Selectmen, Finance
Committee and Residents of the Town of Boxford:

The Treasurer is required to issue an annual report to the town that lists cash account balances,
investment types, earnings and compliance with the terms of the town’s Investment Policy. The
Report on Investments provides that information for the $12,296,726 held by the town on June
30, 2016. Comparative data is provided for the current and previous fiscal year and a brief
explanation of significant changes.

General Fund monies are all invested as provided by state statutes in money market bank
accounts, the state investment pool (MMDT) or in Certificates of Deposit with maturities of one
year or less. Trust Funds and Community Preservation Funds are on deposit in longer term
accounts and are invested in money markets, CDs, bonds and those equities on the Massachusetts
Legal List for Public Investments.

OPEB funds are appropriated by Annual Town Meeting to reduce the town’s Unfunded Actuarial
Accrued Liability for employees’ Other Post Retirement Benefits (OPEB). $263,113 was
deposited in FY 2016. The fund balance of $1,120,707 is on deposit in the State Retiree Benefits
Trust Fund within the PRIT and managed by PRIM (Pension Reserves Investment Management
Board). Reported earnings were $29,426 and annualized rate of return for FY 2016 was 2.3%.

The town’s General Fund cash balance of $7.6M on 6/30/16 is almost $1.9M greater than at the
end of the previous fiscal year. Factors that explain the increase are: unbudgeted revenues of
$684K from various sources, $642K in budgeted expenses that were not spent, $152K
unexpended funds borrowed for the rehabilitation of the Aaron Wood School and receipt of
$260K in state reimbursement of Chapter 90 expenditures made in the previous fiscal year.

Trust Fund earnings in FY 2016 were about $5K less than earned in the previous fiscal year due
to the absence of realized investment gains. FY 2016 earnings on the Community Preservation
Fund were double the amount earned in the previous year because securities were sold to make
cash available to pay the construction expenses of the Boxford Common fields. Sizeable gains
were realized in the sale of those investment holdings.

The Report of Trust, Gift and Restricted Funds provides account activity by fund for Fiscal
Year 2016.

Respectfully submitted,
Ellen S. Guerin, Treasurer/Collector of Taxes
Town of Boxford