ML070170143

VYNPS - SEIS Web Reference - Town of Brattleboro, VT, Independent Auditor'S Report

ML070170143
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Site:	Vermont Yankee File:NorthStar Vermont Yankee icon.png
Issue date:	01/21/2005
From:	Mudgett Jennett & Krogh-Wisner, PC
To:	Office of Nuclear Reactor Regulation
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Download: ML070170143 (40)

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Mudgett Jennett & Krogh- Wisner, P.C. Certified Public Accountants

1. 435 INDEPENDENT AUDITOR'S REPORT The Brattleboro Selectboard Town of Brattleboro, Vermont 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 Brattleboro, Vermont (the Town) as of and for the year ended June 30, 2004, which collectively comprise the Town's basic financial statements. These financial statements are the responsibility of the Town's management.

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 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 fiee of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As described in Note 1, the Town has implemented a new financial reporting model for 2004. The model is required to conform with the provisions of the Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments.

However, the Town has not recorded capital assets used in governmental activities and, accordingly, has not recorded depreciation expense on those assets. Accounting principles generally accepted in the United States of America require that capital assets be recorded and depreciated, which would increase the assets and expenses of the governmental activities.

Also, some Parking Fund capital assets and related depreciation have not been recorded. The total amounts of net capital assets and depreciation expense that should be recorded in govemmental activities of the government-wide financial statements and in the Parking Fund financial statements are not known. In our opinion, because of the effects of the matter discussed in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the governmental activities of the Town of Brattleboro, Vermont as of June 30,2004, and the changes in financial position thereof for the year then ended.

In addition, in our opinion, except for the omission of certain Parking Fund capital assets and depreciation described above, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Brattleboro, Vermont as of June 30, 2004 and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 141 Main Street. P.O. Box 937, Montpelier, Vermont 05601 Phone (802) 229-9193 In accordance with Government Auditing Standards, we have also issued our report dated January 21,2005 on our consideration of the Town's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The Management's Discussion and Analysis is not a required part of the basic financial statements but is supplementary information required by the GASB. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information.

However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements.

The supplementary information contained in Schedules 1 and 2 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Montpelier, Vermont January 2 1,2005 TOWN OF BRATTLEBORO, VERMONT FINANCIAL STATEMENTS JUNE 30,2004 AND INDEPENDENT AUDITOR'S REPORT TOWN OF BRATTLEBORO.

VERMONT JUNE 30. 2004 TABLE OF CONTENTS Independent Auditor's Report .............................................................................................................................

1 . 2 . Management's Discussion and Analysis

............................................................................................................

3 4 Basic Financial Statements: Government-wide Financial Statements . Statement of Net Assets ..........................................................................................................................

5 Statement of Activities

...........................................................................................................................

6 Fund Financial Statements - Balance Sheet - Governmental Funds ....................................................................................................

7 -8 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

.......................................................................................................................

9 -10 Statement of Revenues and Expenditures - Budget and Actual - General Fund

....................................

11 Statement of Net Assets - Proprietary Funds ..........................................................................................

12 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds ..............................

13 Statement of Cash Flows - Proprietary Funds ......................................................................................

14 -15 Statement of Net Assets - Fiduciary Funds ..........................................................................................

16 Statement of Changes in Net Assets - Fiduciary Funds ....................................................................

17 Notes to Financial Statements

...................................................................................................................

18 -29 Supplementary Schedules: Schedule 1 . Combining Balance Sheet . Other Governmental Funds .........................................................

30 . 32 . . Schedule 2 . Combining Statement of Revenues.

Expenditures and Changes in Fund Balances . Other Governmental Funds .....................................................................

33 . 35 Mudgett Jennett & Krogh-Wisner, P.C. Certified Public Accountants

1. 435 INDEPENDENT AUDITOR'S REPORT The Brattleboro Selectboard Town of Brattleboro, Vermont 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 Brattleboro, Vermont (the Town) as of and for the year ended June 30, 2004, which collectively comprise the Town's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Town's management. 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 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 of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.

An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the Town has implemented a new financial reporting model for 2004. The model is required to conform with the provisions of the Governmental Accounting Standards Board (GASB)

Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments.

However, the Town has not recorded capital assets used in governmental activities and, accordingly, has not recorded depreciation expense on those assets. Accounting principles generally accepted in the United States of America require that capital assets be recorded and depreciated, which would increase the assets and expenses of the governmental activities. Also, some Parking Fund capital assets and related depreciation have not been recorded. The total amounts of net capital assets and depreciation expense that should be recorded in governmental activities of the government-wide financial statements and in the Parking Fund financial statements are not known. In our opinion, because of the effects of the matter discussed in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the governmental activities of the Town of Brattleboro, Vermont as of June 30,2004, and the changes in financial position thereof for the year then ended.

In addition, in our opinion, except for the omission of certain Parking Fund capital assets and depreciation described above, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Brattleboro, Vermont as of June 30, 2004 and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 141 Main Street - P.O. Box 937, Montpelicr, Vcnnont 05601 - Phone (802) 229-9193 In accordance with Government Auditing Standards, we have also issued our report dated January 21, 2005 on our consideration of the Town's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.

The Management's Discussion and Analysis on pages 3 through 4 is not a required part of the basic financial statements but is supplementary information required by the GASB. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information.

However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's basic financial statements. The supplementary information contained in Schedules 1 and 2 is presented for purposes of additional analysis and is not a required part of the basic financial statements.

Such information has been, subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Montpelier, Vermont January 2 1,2005 TOWN OF BRATTLEBORO, VERMONT MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2004 This discussion and analysis is intended to serve as an introduction of the Town of Brattleboro's basic financial statements. The Town's basic financial statements include three components:

1) government-wide financial statements, 2) fund financial statements, and 3) notes to financial statements. This report also contains other supplementary information in addition to the basic financial statements.

Financial Statements The accompanying financial statements for the year ended June 30,2004 are more extensive than in prior years as the Town has implemented the required financial statements of the new reporting model of Governmental Accounting Standards Board Statement

1. 34. The implementation of the GASB 34 model requires two separate presentations of financial statements.

New government-wide financial statements (the Statement of Net Assets and the Statement of Activities) present the financial picture of the Town from the "economic resources" measurement focus using the accrual basis of accounting.

The Statement of Net Assets should include all assets of the Town, including capital assets net of depreciation, and all liabilities, including long-term debt, with the difference between the two reported as net assets. These 2004 financial statements do not include the capital assets and depreciation associated with the governmental activities. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating.

The Statement of Activities focuses on the programs of the Town and presents information showing how the Town's net assets changed during the year. Both of the government-wide financial statements distinguish functions of the Town 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 fund financial statements include statements that present activities by fund. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The funds of the Town can be divided into two categories:

governmental funds and proprietary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, governmental funds primarily focus on near-term inflows and outflows of spendable resources and their balance at the end of the fiscal year.

The Town's main governmental fund is the General Fund. Other governmental funds are presented in the governmental funds financial statements and schedules.

The proprietary funds of the Town are enterprise funds; they report the same functions presented as business-type activities in the government-wide financial statements. The Town uses the proprietary funds to account for the resources and operation of the Utilities (water and sewer) Fund and the Parking Fund.

The Town also reports fiduciary funds, but does not include the fiduciary balances and activity in the government-wide financial statements.

Government-wide Financial Analysis The Statement of Net Assets shows total recorded assets of the Town as of June 30, 2004 are $37,406,372.

Of this total $7,218,324 or 19% are current assets. Noncurrent assets are the net capital assets of the proprietary funds, including utilities systems, buildings and improvements, machinery and equipment, and certain parking lots. The net capital assets used for governmental activities have not been included in the 2004 Statement of Net Assets. The Town plans to complete its inventory and valuation of governmental capital assets and include them in future years. The liabilities of the Town totaled $8,711,693 including

$841,679 in accounts payable, $712,561 in deferred revenue and $5,98 1,760 in debt. The Statement of Activities reports total operating expenses for 2004 of $30,107,053. This includes all fund expenditures, but excludes debt principal payments and capital asset purchases. Depreciation of capital assets of the proprietary fwds is included with business-type expenses; in future years, the Town plans to include depreciation of governmental capital assets with the expenses of governmental activities. Certain revenues (labeled Program Revenues) offset expenses as they relate to specific programs, such as State and Federal grants or fees charged for specific services.

General revenues, mainly property taxes, totaled $23,503,173. Revenues exceeded expenses, increasing net assets by $482,625. At year-end, net assets totaled $28,694,679. Financial Analysis of the Town's Funds Governmental Funds: At June 30, 2004, the Town's governmental funds reported combined ending fwd balances of $3,038,932, a decrease of $306,354 in comparison with the prior year. Of the fund balances, $274,053 constitutes unreserved and undesignated fund balance, which is available for spending at the Town's discretion.

The remainder of fund balance is reserved or designated for the purposes described in Note 6.

The assets and liabilities of the General Fund are consistent with prior years. General Fund revenue and expenditures do vary from the operating budget, as shown on the Statement of Revenue and Expenditures - Budget and Actual - General Fund.

Proprietary Funds: Net assets of the proprietary funds at year end were $26,378,975 and the total growth in net assets for the year was $715,831. Cash held by the funds decreased by $3,745,445 due to completion of the Transportation Center construction project. The funds' operating assets and liabilities are consistent with prior years. Operating revenues, expenses and cash flows are consistent with the prior year.

TOWN OF BRATTLEBORO, VERMONT GOVERNMENT-WIDE STATEMENT OP NET ASSETS JUNE 30,2004 Governmental Business-type Activities Activities Totals ASSETS: Current assets - Cash and cash equivalents (Note 2)

Investments (Note 2) Receivables: Property taxes Loans net of allowance of $434,730 in the SBAP loan fund Accounts Due from other funds (Note

7) Inventory Total current assets Noncurrent assets - Capital assets (Note

3) less - accumulated depreciation Total noncurrent assets Total assets LIABILITIES

Current liabilities - Warrants and accounts payable Accrued liabilities:

Payroll Compensated absences Other Due to other funds Deferred revenue Current portion of long-term debt Total current liabilities Noncurrent liabilities - Long-term debt (Note

5) Total noncurrent liabilities Total liabilities NET ASSETS: Invested in capital assets, net of related debt 25,358,048 25,358,048 Restricted 2,294,95 1 932,226 3,227,177 Unrestricted 20,753 88,701 109,454 Total net assets The notes to financial statements are an integral part of this statement.

FUNCTIONSIPROGRAMS: Governmental activities - Town government Education appropriation Capital outlay Total governmental activities Business-type activities - Utilities Parking Total business-type activities TOWN OF BRATTLEBORO, VERMONT GOVERNMENT-WIDE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2004 Expenses Promam Revenues Grants and Charges for Contributions Services Other GENERAL REVENUES - PROPERTY TAXES - INVESTMENT INCOME - TRANSFERS Net (Expense) Revenue and Changes in Net Assets Governmental Business-type Activities Activities Totals CHANGE IN NET ASSETS (233,206) 715,831 482,625 NET ASSETS, July 1,2003 NET ASSETS, June 30,2004 The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30,2004 (Page 1 of 2) SB AP UDAG Other Totals General Loan Holstein Governmental Governmental Fund Fund Fund Funds Funds ASSETS Cash and cash equivalents (Note

2) Investments (Note

2) Receivables - Property taxes - Loans net of allowance of $434,730 in the SBAP loan fund - Accounts Due from other funds (Note 7)

Inventory Total assets LIABILITIES AND FUND EQUITY LIABILITIES

Warrants and accounts payable Accrued liabilities - Payroll - Compensated absences (Note 4) Due to other funds (Note 7) Deferred revenue Total liabilities COMMITMENTS AND CONTINGENCIES (Notes 9 and 10) The notes to financial statements are an integral part of this statement.

FUND EQUITY: Reserved for restricted purpose Unreserved - Designated - Undesignated Total fund equity Total liabilities and find equity TOWN OF BRATTLEBORO, VERMONT BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30,2004 (Page 2 of 2)

General Fund RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS: Amount reported on Balance Sheet - Governmental Funds - total fund equity Amounts reported for governmental activities in the Government-wide Statement of Net Assets are different because - SBAP UDAG Loan Holstein Fund Fund Deferred taxes are reported in the governmental funds to offset uncollected taxes which are not available financial resources.

Liabilities not due and payable in the year are not reported in the governmental funds. Long-term debt - current Long-term debt - noncurrent Net Assets of Governmental Activities - Government-wide Statement of Net Assets Other Governmental Funds Totals Governmental Funds The notes to fmancial statements are an integral part of this statement.

REVENUES: Property taxes Licenses and permits Investment income Intergovernmental Departmental and other revenue Contributions Total revenues TOWN OF BRATTLEBORO, VERMONT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2004 (Page 1 of 2) EXPENDITURES:

Current - General government Auxiliary services Public safety Public works Culture and recreation Education appropriation Health and welfare Pension and benefits (Note

4) Miscellaneous Net decrease in market value of investments Capital outlay Debt service - Principal - Interest Total expenditures EXCESS OF REVENUES OR (EXPENDITURES)

General Fund SBAP Loan Fund $ - 37,397 - 208,496 UDAG Holstein Fund $ - - Other Governmental Funds Totals Governmental Funds The notes to financial statements are an integral part of this statement.

OTHER FINANCING SOURCES (USES): Proceeds from borrowing Operating transfers in (out), net (Note

8) Total other financing sources (uses)

TOWN OF BRATTLEBORO, VERMONT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2004 (Page 2 of 2) SBAP UDAG Other General Loan Holstein Government a1 Fund Fund Fund Funds NET CHANGE IN FUND BALANCES (482,648) 148,080 (64,296) 92,510 FUND BALANCES, July 1,2003 FUND BALANCES, June 30,2004 RECONCLIATION OF THE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES:

Net change in fund balances - total Governmental Funds Amounts reported for governmental activities in the Government-wide Statement of Activities are different because - Property tax revenue in governmental funds includes deferred revenue of the prior year but excludes deferred revenue of the current year as taxes uncollected within 60 days are unavailable at year end. Prior year Current year The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction has any effect on net assets. Proceeds from borrowing Debt service - principal Change in Net Assets of Governmental Activities - Government-wide Statement of Activities Totals Governmental Funds The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED JUNE 30,2004 Budget Actual REVENUES:

Property taxes, Town

$ 8,684,463

$ 8,789,416 Licenses and permits 134,500 168,475 Investment income 32,000 9,645 Intergovernmental 284,200 365,055 Departmental and other revenue 738,800 788,500 Budgeted revenues 9,873,963 10,121,091 Property taxes, schools 14,665,705 Total revenues 9,873,963 24,786,796 EXF'ENDITWS:

Administration - Town Manager 17 1,223 153,535 Finance 27 1,480 282,146 Town Clerk 145,388 146,805 Listers 144,74 1 21 1,657 Miscellaneous general 120,692 107,139 Risk management 235,939 288,935 Planning 158,293 155,120 Town Attorney 84,000 82,511 Employee benefits 1,520,500 1,733,187 Debt service 409,673 320,460 Auxiliary services 383,544 349,947 Library 475,788 462,075 Fire Department 1,183,132 1,363,214 Nursing 48,030 48,030 Public health 666,326 753,658 Municipal center 160,738 1 19,240 Police Department 1,831,026 1,822,422 Public Works 1,538,937 1,662,442 State and County 101,865 96,9 13 Recreation 773,648 824,803 Budgeted expenditures 10,424,963 10,984,239 Education appropriation 14,665,705 Total expenditures 10,424,963 25,649,944 EXCESS OF EXPENDITURES OVER REVENUES (55 1,000) (863,148)

OTHER FINANCING SOURCES (USES): Proceeds of notes 183,700 Operating transfers in 20 1,000 20 1,800 Operating transfers out (5,000) Total other financing sources (uses) 20 1,000 380,500 NET CHANGE IN FUND BALANCES $ (350,000)

$ (482,648)

The notes to financial statements are an integral part of this statement.

Variance Favorable Wnfavorablel TOWN OF BRATTLEBORO, VERMONT STATEMENT OF NET ASSETS - PROPRIETARY FUNDS JUNE 30,2004 Totals Utilities Parking Proprietary Fund Fund' . Funds ASSETS: Current assets - Cash and cash equivalents (Note

2) Accounts receivable:

Water and sewer rents, less allowance for uncollectibles of

$10,000 Notes receivable - General Fund Inventory Total current assets Noncurrent assets - Capital assets (Note

3) less - accumulated depreciation Total noncurrent assets Totalassets LIABILITIES

Current liabilities - Accounts payable Accrued liabilities:

Payroll Compensated absences Other Due to other hnds Deferred revenue Current portion of long-term debt Total current liabilities Noncurrent liabilities - Long-term debt (Note 5) Total noncurrent liabilities Total liabilities NET ASSETS: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2004 Totals Utilities Parking Proprietary Fund Fund Funds OPERATING REVENUES: Charges for services Intergovernmental Interest and penalties Miscellaneous Total operating revenues OPERATING EXPENSES: Personnel services Contractual services Supplies and materials Distribution and storage Maintenance Heat, light and power Depreciation Miscellaneous Total operating expenditures Operating income (loss)

NONOPERATING REVENUES (EXPENSES): Investment income 15,762 1,339 17,101 Interest expense (64,105) (1 81,701) (245,806) Total nonoperating revenues (expenses)

(48,343) (1 80,362) (228,705) LOSS BEFORE CONTRIBUTIONS AND TRANSFERS Capital contributions 93,990 1,414,637 1,508,627 Operating transfers out (Note 8) (170,000) (3 1,800)

(201,800)

CHANGE lN NET ASSETS (5 1 1,547) 1,227,378 715,831 NET ASSETS, July 1,2003 NET ASSETS, June 30,2004 The notes to financial statements are an integral part of this statement TOWN OF BRATTLEBORO, VERMONT STATEMENT OF CASH mows - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2004 (Page 1 of 2) Totals Utilities Parking proprietary Fund 'Fund Funds CASH FLOWS FROM OPERATING ACTIVITIES

Cash received fiom customers Cash paid to suppliers for goods and services Cash payments to employees for services Net cash provided (used) by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest and dividends on investments Net cash provided (used) by investing activities CASH FLOWS FROM NONCAPITAL FINANCING FINANCING ACTIVITIES: Payment from SBAP Fund Payments from General Fund loan Operating transfer from (to) other funds Net cash provided (used) by noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Purchase of capital assets Contributed capital - Governmental grants Payment on bonds Interest expense on bonds Net cash provided (used) by capital and related financing activities NET DECREASE IN CASH CASH AND CASH EQUIVALENTS, July 1,2003 CASH AND CASH EQUIVALENTS, June 30,2004 The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT STATEMENT OF CASH mows - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2004 (Page 2 of 2) RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:

Operating income (loss)

Adjustments.

to reconcile operating income (loss) to net cash provided (used) by operating activities - Depreciation expense (Increase) decrease in accounts receivable (Increase) decrease in inventory Increase (decrease) in accounts payable Increase (decrease) in accrued liabilities Increase (decrease) in deferred revenue Increase (decrease) in due to other funds Net cash provided (used) by operating activities

$ 199,671 $ . 148,3 10 $ 347,981 The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT STATEMENT OF NET ASSETS FIDUCIARY FUNDS JUNE 30,2004 Trust Lundberg Prospect Funds and Hill Library Held By Auditorium Cemetery Trust Trustees Fund Fund Fund ASSETS: Cash and cash equivalents

$ 22,537 $ 17,625 $ - $ 84,537 Investments, at fair value 100,508 - 444,087 Due from other funds 4,135 1,375 Total assets 1.23,045 17,625 4,135 529,999 LIABILITIES

Accounts payable 18 Accrued liabilities - other 226 Intergovernmental 8,193 7,875 Due to other hds 1,375 Total liabilities 9,568 7,875 244 NET ASSETS: Held in trust for specific purpose 4,676 5,000 3,891 529,999 Held in trust for restricted purpose 108,801 A 4 750 Total net assets The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT STATEMENT OF CHANGES IN NET ASSETS FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30,2004 ADDITIONS

Investment earnings - Investment income Net increase in fair value of investments Total investment earnings Contributions Miscellaneous Total additions DEDUCTIONS

Miscellaneous Trust Funds Held by Trustees Lundberg and Auditorium Fund Prospect Hill Cemetery Fund Net decrease in fair value of investments 989 Total deductions 997 107 14,459 CHANGE IN NET ASSETS 1,865 (1 4,459) NET ASSETS, July 1,2003 NET ASSETS, June 30,2004 $ 113,477 $ 9,750 $& 3 891 Library Trust Fund The notes to financial statements are an integral part of this statement.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 1. Summary of significant accounting policies:

Organization - The Town of Brattleboro, Vermont (the Town) was chartered in 1753. The Town operates under a SelectboardIRepresentative form of government and provides the following services as authorized by its charter:

public safety-police and frre, highways and streets, water, health and social services, culture- recreation, public improvements, planning and zoning, and general administrative services.

A. Reporting entity - The Town is a primary unit of government under reporting criteria established in Statement No. 14 of the Governmental Accounting Standards Board (GASB), The Financial Reporting Entity. Those criteria include a separately elected governing body, separate legal standing, and fiscal independence from other state and local governmental entities.

Based on these criteria, there are no other entities which are component units of the Town.

The financial statements of the Town have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units.

In June 1999, the GASB approved changes to the financial reporting structure in Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments. This statement included a phased implementation schedule based on the size of the government.

The Town has implemented GASB 34 for the year ended June 30,2004 except for capital assets used in governmental activities.

B. Government-wide and hd financial statements - The basic financial statements include both government-wide and fund financial statements.

While the previous financial reporting model emphasized fund types (the total of all funds of a particular type), the new financial reporting model has a dual focus, with primary statements for the Town as a whole, and for the major individual funds (within the fund financial statements). The government-wide financial statements (the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the Town. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. In the government-wide statement of net assets, the financial position of the Town is consolidated and incorporates business-type capital assets as well as all long-term debt and obligations. In future years, the Town also plans to include capital assets used in governmental activities in this statement of net assets. The government-wide statement of activities reflects both the gross and net costs by category. Direct expenses that are clearly identifiable with the category are offset by program revenues of the category. Program revenues include charges for services provided by a particular function or program and grants that are restricted to meeting the operational or capital requirements of the particular segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

The fund financial statements are similar to the financial statements presented in the previous financial reporting model. ~'ajor individual funds are reported as separate columns in the fund financial statements.

Non-major funds are summarized in a single column.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 1. Summary of significant accounting policies (continued):

C. Basis of presentation - The accounts of the Town are organized on the basis of funds, each of which is considered a separate accounting entity.

The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate.

The Town reports the following major governmental funds:

General Fund - The General Fund is the general operating fund of the Town.

It is used to account for all financial resources, except those required to be accounted for in another fund.

Small Business Assistance Program (SBAP) - This fund is used to account for operations of the Town's revolving loan fund, which is maintained to encourage small business development.

UDAG - Holstein Fund - This fund holds investments received by early repayment of a Town loan made through the Urban Development Action Grant (UDAG) program. The Town reports the following major proprietary funds: Utilities Fund - This Fund accounts for water and sewer services.

The Town operates the sewage treatment plant, sewage pumping stations and collection systems, and the water distribution system.

Parking Fund - This Fund accounts for the activities of the Town parking lots and metered street parking, as well as the new Town Transportation Center. Additionally, the Town reports fiduciary funds even though fiduciary funds are excluded from the government-wide financial statements. D. Measurement focus and basis of accounting - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Governmental fund financial statements are reported on a current financial resource measurement focus and the modified accrual basis of accounting. Revenues are recognized as they become both measurable and available. "Measurable" means the amount of the transaction that can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

Expenditures generally are recorded when the fund liability is incurred, if measurable, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. Material encumbrances at year end are excluded from current year expenditures and reported as reservations of fund equity. Property taxes are recognized as revenue in the year for which taxes have been levied, provided they are collected within 60 days after year end. Licenses and permits, fines and forfeitures and miscellaneous revenues are recorded as revenues when received in cash because they are generally not measurable until actually received.

hvestment earnings and certain intergovernmental grants are recorded as earned.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 1. Summary of significant accounting policies (continued):

D. Measurement focus and basis of accounting (continued) - Private-sector standards of accounting and financial reporting issued prior to December 1989 are generally followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with guidance of the GASB.

The Town has not elected the option of following private-sector guidance issued subsequent to 1989. The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result fiom providing services in connection with the fund's principal ongoing operations.

All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Unbilled service revenue is accrued in the proprietary funds. E. Budgets - The Town of Brattleboro follows these procedures in establishing the General Fund budgetary data reflected in the financial statements:

Prior to October 1, the Town departments submit to the Finance Director, Town Manager and Selectboard a proposed budget for the fiscal year commencing the following July 1. The budget includes proposed expenditures and the means of financing them. Hearings are conducted by the Selectboard prior to the Town budget meeting to discuss the proposed budget. The budget is legally enacted at the annual Town Meeting by vote of the Town Meeting representatives in March. Appropriations for certain projects and specific items not fully expended at the fiscal year end are carried forward, with specific authority from the Selectboard, as continued appropriations to the new fiscal year in which they supplement the appropriations of that year. A copy of the budget is published in the Annual Report of the Town of Brattleboro, Vermont. F. Use of estimates - The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures or expenses during the reporting period. Actual results could differ from those estimates.

G. Cash and cash equivalents - The Town considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 1. Summary of significant accounting policies (continued):

H. Loans receivable - The Town, through various Federal programs, has received grants and advanced funds to encourage community development. These loans, generally secured by subordinated collateral positions, are recorded as loans receivable in the governmental funds. Until repaid, loans of Federal awards are offset by deferred revenue, which is taken into operating revenue as payments are received.

Upon receipt, the repayment of these loans is placed in the Town's small business assistance program (SBAP) and is available for future loans. Assets of the Rental Housing Improvement Program (RHIP) are available for future loans to help upgrade or maintain affordable rental housing. The loans provide for interest, where permitted under the terms of the programs, from 0% to 7% and repayment terms ranging from monthly installments to lump-sum payment at the end of 30 years. I. Capital assets - Capital assets, which include property, plant, equipment and vehicles, are reported in the business-type activities column in the government-wide financial statements and in the proprietary funds. Under current accounting standards, capital assets used in governmental activities are required to be reported in the governmental activities column of the government-wide financial statements.

The Town has not included governmental capital assets in these 2004 financial statements. Capital assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Net inrerest costs are capitalized on projects during the construction period. Normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized.

Capital assets are depreciated using the straight line method over the following usell lives: Utilities systems 20 - 75 years Buildings

& improvements 20 - 50 years Machinery

& equipment 5 - 20 years Parking lots 40 years Not all Parking Fund capital assets have been reported and depreciation expense on some parking lot renovations/improvements has not been reported.

The Town owns all or a portion of seven parking lots. The total acquisition costs and subsequent renovations/improvements costs of these lots are not known. J. Inventory - In the governmental funds, the cost of inventory is recorded as an expenditure at the time individual inventory items are consumed (consumption method).

In the Utilities Fund, inventory is recorded on a first-in, first-out (FIFO) basis, lower of cost or market. K. Compensated absences - Employees are granted vacation and sick leave in varying amounts. Upon retirement, termination or death, certain employees are compensated for unused vacation (subject to certain limitations) at their then current rates of pay. Sick leave accruals in excess of 90 days up to a maximum of 120 days will be paid to any Town employee who retires after a minimum of 20 consecutive years of service. Accrued compensated absences have been recorded in the General Fund and proprietary hds and included in accrued expenses on the Government-wide Statement of Net Assets.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 1. Summary of significant accounting policies (continued):

L. Deferred revenue - The Town has recorded deferred revenue from the following sources: Property taxes - Taxes which have not been collected within 60 days following year end are not considered available for current year operations and are shown as deferred revenue in the governmental funds. Grant revenue - Certain State and Federal grants are restricted for specified purposes and, upon receipt, are recorded as deferred revenue until they are expended. Loans receivable - Grant funds loaned for community development projects are recorded as deferred revenue. Town revenue is recognized as loan repayments are received.

M. Long-term obli~ations - In the government-wide financial statements and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary funds statement of net assets. In the fund financial statements, governmental fund types recognize the amount of debt issued as other financing sources and the repayment of debt as debt service expenditures.

N. Fund eauitv - In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. 0. Propertv taxes - Real and personal property taxes are based on values assessed as of each April 1 and are normally due on the subsequent August 5, November 5, February 5 and May 5. Taxes due and unpaid after the respective due dates are subject to interest and penalties.

The Town has an ultimate right to foreclose on property for which taxes have not been paid. Property taxes levied are recorded as receivables in the fiscal year of the levy. P. Interfund activitv - The Town has not eliminated interfund balances and transfers in the consolidation of funds into the government-wide financial statements.

Q. Deferred compensation - The Town has discontinued reporting as fiduciary funds those accounts which result from salary deferrals elected in accordance with Internal Revenue Code Section 457. Under current law, those accounts are the property of the employees and the Town is only obligated to direct amounts withheld in accordance with the employees' instructions.

Cash and investments:

Cash - The Town has an investment policy which allows the investment of Town finds in savings accounts, certificates of deposit, money market accounts and repurchase agreements with approved local banks and in obligations of the U.S. Government and its agencies.

All Federal and State laws and regulations regarding the investment of finds are followed when applicable.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 2. Cash and investments (continued):

The cash deposits in the Town's hds as of June 30, 2004, including trust funds of $124,699, consisted of the following:

Canying Amount Bank Balance Insured $ 2,060,489

$ 2,062,190 Collateralized 765,884 888,984 Uncollateralizedluninsured 32,130 364,865 The insured accounts are insured by Federal Deposit Insurance Corporation (FDIC), Securities Investor Protection Corporation (SIPC) or an excess FDIC insurance policy. The collateralized amounts are considered fully collateralized by the depository banks under repurchase arrangements which assign federal securities held by the bank for the benefit of the Town. The composition of the Town's bank deposits can be significantly higher at other times.'

It fluctuates depending primarily on the timing of real estate tax receipts, proceeds from borrowings, collection of State and Federal aid and capital outlays throughout the year. Investments - The Town has invested certain assets of governmental funds in U.S. government obligations.

The Town's Library Trust Fund has additional investment policies, most notably the ability to invest in common stocks and other specified investments.

All of the Town's investments were held by the Town's agent in the Town's name. The classification and market value of investments held at June 30,2004 are as follows: Governmental Fiduciary Common and preferred stock

$ $ 204,427 U.S. Government obligations 795,014 122,587 Corporate obligations 104,331 Mutual funds - various 113,250 TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 3. Capital assets: A summary of changes in capital assets of the proprietary hnds follows: Balance Balance July 1,2003 Increase Decrease June30.2004 Capital assets, not depreciated:

Land $ 475,935 $ $- - $ 475,935 Capital assets, depreciated: Utilities system 3 1,822,078 335,678 32,157,756 Transportation Center 6,076,790 3,157,556 - 9,234,346 Machinery

& equipment 1,284,234 280,837 (65,397) 1,499,674 Parking lots 823,700 - 823,700 Total capital assets depreciated 40,006,802 3,774,071 (65,397) 43,715,476 Less accumulated depreciation for Utilities system 12,181,670 657,677 - 12,839,347 Transportation Center 92,594 - 92,594 Machinery

& equipment 981,617 110,401 (65,397) 1,026,621 Parking lots 30,539 14,262 44,801 Total accumulated depreciation 13,193,826 874,934 (65,397) 14,003,363 Total capital assets depreciated, net 26,8 12,976 2,899,137 29,712,113 Capital assets, net 4. Pension plan: The Town maintains a single-employer defined contribution pension plan.

The plan was established on January 1, 1988. It is a "qualified" plan under Section 401 (a) of. the Internal Revenue Code. It covers substantially all full-time regular employees with one or more years of service, except for certain police department employees that have changed to coverage under the Vermont Municipal Employees Retirement System in January 2004. The Town contributes 6% of the gross earnings for each eligible employee each pay period. In addition, the Town makes a matching contribution equal to each employee's contribution to the plan for that pay period up to a maximum of 3% of the employee's gross earnings. Participants become 60% vested after three years, 80% vested after four years and 100% vested after five years in the plan. They are always 100% vested in their own contributions.

The following is a summary of pension plan information for the year ended June 30,2004: Number of plan participants Current year covered payroll Current year total payroll Contributions by Town (8.9%

of covered payroll)

$ 406,693 Contributions by employees (4.2% of covered payroll) $ 197,570 TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 5. Long-term debt: Outstanding long-term debt for the year ended June 30,2004 consisted of:

Balance Balance Due July 1, June 30, Within 2003 . Additions Reductions 2004 One Year Governmental activities - Notes payable (1.8 - 4.0%): Fire Department Bucket Truck payments through June 2007 Fire Department Building Repairs payments through June 2009 Public Works Dump Truck payments through June 2007 Notes payable to Utility Fund payments through June 2006 General obligation bonds (3.8 - 8.1%): Swimming pool and Municipal Center, through December 2008 General purpose, maturities through December 2009 General purpose, maturities through December 2008 Municipal CenterIHVAC, through December 2004 Total bonds and notes payable Compensated absences Total governmental activities

$ 1,293,919

$ 21 1,023 $ 276,427 $ 1,228,5 15 $ 320,172 Business-type activities - General obligation bonds (4.3 - 7.5%): Water, through December 2008

$ 960,000 $ - $ 160,000 $ 800,000 $ 160,000 Utilities, through December 2008 60,000 10,000 50,000 10,000 Water, through December 2009 630,000 90,000 540,000 90,000 Parking, through December 2020 3,600,000 200,000 3,400,000 200,000 Parking, through December 2008 50,000 10,000 40,000 10,000 Total bonds payable 5,300,000 470,000 4,830,000 470,000 Compensated absences: 60,434 4,952 65,386 65,386 Total business-type activities

$ 5,360,434

$ 4,952 $ 470,000 $ 4,895,386

$ 535,386 TOWN OF BRATILEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 5. Long-term debt (continued):

The estimated annual requirements to amortize all bonds and notes outstanding as of June 30, 2004, including interest payments, are as follows: Governmental Activities Business-twe Activities Principal Interest .. Principal Interest Year ending June 30, 2005 2006 2007 2008 2009 2010-2014 2015-2019 2020-2024

6. Fund equity: Fund balances of Governmental Funds are classified as follows: Reserved fund balance - Indicates that portion of fund equity which has been legally segregated for specific purposes.

The General Fund balance has been restricted as follows:

Inventory

$ 35,101 Recreation self-supporting activities 137,975 Whetstone Brook Pathway 42,341 Designated fund balance - Indicates that portion of fund equity for which the Town has made tentative plans. The General Fund balance has been designated as follows:

Subsequent year Capital expenditures Balance of C&S fine TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 7. Interfund receivable and payable balances: Interfund receivable and payable balances as of June 30,2004 were as follows: Interfund Interfund Receivables Payables Governmental activities - General Fund'

$ 715,201 $ 224,970 SBAP Fund 2,000 4,299 Other governmental funds 220,834 262,344 938,035 491,613 Business-type activities - Utilities Fund 103,577 Parking Fund 346,980 450,557 Fiduciary funds 4,135 8. Operating transfers:

Operating transfers constitute the transfer of resources from the fund that receives the resources to the find that utilizes them. Operating transfers during the year were as follows: Transfers Transfers In Out General Fund

$ 201,800 $ 5,000 SBAP Fund 10,000 Other governmental hnds 15,000 Utilities Fund 170,000 Parking Fund 3 1,800 The transfers of $201,800 from the proprietary hds represent reimbursements of expenditures to the General Fund for administration ind other operating costs: 9. Commitments:

At June 30, 2004 the Town was committed to proceed with several capital improvements projects, in addition to normal infrastructure maintenance.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 9. Commitments (continued):

The Town has issued bonds and received Federal and State grant allocations and awards for development of the multimodal transportation center and improvements to Union Station.

The Transportation Center was opened in 2004, but the Union Station project was delayed.

The projected cost of this project is $2 million. The Town is contractually committed for engineering costs for this project.

In 2004, the Town commenced construction of Phase I of the Whetstone Brook Pathway. The contractual commitment for construction is $633,992.

In February, 2001, the Town agreed to a five-year waste and recycling contract through June 30,2006. For the fiscal year ending June 30, 2005, the contract commitment is $335,601.

The total commitment for the remaining two years is $68 1,269.

10. Contingencies:

The Town participates in various federally funded programs.

These programs are subject to financial and compliance audits and resolution of identified questioned costs. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time.

The Town relies on property taxes as the primary revenue source for governmental operations.

Property owners are assessed an annual tax, using a rate set to recover operating costs applied to the grand list value of individual properties. Decreases in the Town's property base, resulting from economic events or legal challenges to the Town's property valuations could have a significant adverse effect on current operations, requiring future tax increases or other fiscal actions.

The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees and others; and natural disasters.

The Town manages these risks through a combination of commercial insurance packages purchased in the name of the Town, and participation in risk pools administered by the Vermont League of Cities and Towns.

Settled claims resulting from these risks have not exceeded coverage in any of the past three fiscal years.

The Town is involved in various claims and legal actions arising in the ordinary course of business.

The ultimate disposition of these matters is indeterminable, but in the opinion of management, the amount of any ultimate liability, not covered by insurance, could have a significant impact on the Town's financial condition.

In Woods vs. Town of Brattleboro, the Town is represented by risk pool attorneys.

However, any claim liability of the Town is subject to a reservation of rights with respect to coverage of this matter by the risk pool.

11. Other post employment benefits:

In addition to the pension benefits described in Note 3, the Town provides by Union Contracts through June 30, 2004, post-retirement health care benefits for fire and police union employees who retire fiom Town employment after attaining age 55 with at least 20 years of service to the Town. The Town will pay 60% of two-person health insurance costs until the former employee is eligible for Medicare.

The Town's portion of the benefits is hded on a pay-as-you-go basis and included in health care expenditures.

TOWN OF BRATTLEBORO, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30,2004 12. Joint venture: Pursuant to a charter from the State of Vermont, the Town participates with several other municipalities in the Windham Solid Waste Management District (the District). Members of the District's Board of Supervisors are appointed by each town. The District has the power to levy assessments on the member municipalities based on the amount of waste generated by or within each of the member municipalities.

The District has primary liability for its future obligations, including debt service and costs associated with landfill postclosure maintenance and monitoring, and has investments with an estimated maturity value sufficient to provide for these estimated future liabilities.

The towns have contingent liability for these obligations through their membership in the District.

Summary. financial information for the District as of and for the fiscal year ended June 30, 2004 is as follows: Assets Liabilities Net assets Operating revenues Operating expenses Operating loss Nonoperating revenue, net Change in net assets Debt service requirements for bonds, including interest of $85,125 are as follows: Year ending June 30, 2005 2006 2007 2008 2009 Thereafter

ASSETS Cash and cash equivalents Loans receivable Accounts receivable Due from other funds Total assets LIABILITIES AND FUND EOUITY LIABILITIES: Warrants and accounts payable Due to other funds Deferred revenue Total liabilities FUND EQUITY: Fund balances - Reserved (deficit) Total liabilities and fund equity TOWN OF BRATTLEBORO, VERMONT COMBINING BALANCE SELEET - OTHER GOVERNMENTAL FUNDS JUNE 30,2004 Justice Tech Grant Community Restorative Justice Precharge Morningside Restorative Perpetual Kyle Gilbert Other Justice Care Memorial Funds Schedule 1 Page 3 of 3 REVENUES : Investment income Intergovernmental Departmental and other revenue Total revenues TOWN OF BRATTLEBORO, VERMONT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2004 EXPENDITURES:

Miscellaneous General government Public safety Capital outlay Total expenditures EXCESS OF REVENUES OR (EXPENDITURES)

VT Public Library Rental Grants Library Automation Housing Fund Grant Proiect Fund Nonurbanized Public Transportation Promam Schedule 2 Page 1 of 3 Union Shelter Station Plus Proiect OTHER FINANCING SOURCES (USES): Operating transfers in (out) 5,000 - - EXCESS OF REVENUES AND OTHER FINANCING SOURCES OR (EXPENDITURES AND OTHER FINANCING USES) FUND BALANCES, July 1,2003 112,410 - (17,888) FUND BALANCES, June 30,2004 TOWN OF BRATTLEBORO, VERMONT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL F'UNDS FOR THE YEAR ENDED JUNE 30,2004 Schedule 2 Page 2 of 3 Agricultural Land Trust Preservation Pathway Fund Project VT Downtown Projects Title V Justice Caring LLEB Cops In Community Grant School VCDP CABA Plaza park REVENUES: Investment income Intergovernmental Departmental and other revenue Total revenues EXPENDITURES

Miscellaneous General government Public safety Capital outlay Total expenditures EXCESS OF REVENUES OR (EXPENDITURES) OTHER FINANCING SOURCES (USES): Operating transfers in (out) 10,000 EXCESS OF REVENUES AND OTHER FINANCING SOURCES OR (EXPENDITURES AND OTHER FINANCING USES) 1,069 (6,597) (1,457) FUND BALANCES, July 1,2003 - 80,834 - 5,783 - - FUND BALANCES, June 30,2004 $A $A $ 81,903 $ (6,597) $ 4,326 $ , - $: $A Schedule 2 Page 3 of 3 TOWN OF BRATTLEBORO, VERMONT COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN mTND BALANCES - OTHER GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2004 Community Precharge Restorative Restorative Justice Justice Morningside Perpetual Kyle Gilbert Other Care Memorial Funds Justice Tech Grant REVENUES : Investment income Intergovernmental Departmental and other revenue Total revenues EXPENDITURES

Miscellaneous General government Public safety Capital outlay Total expenditures EXCESS OF REVENUES OR (EXPENDITURES) OTHER FINANCING SOURCES (USES): Operating transfers in (out) EXCESS OF REVENUES AND OTHER FINANCING SOURCES OR (EXPENDITURES AND OTHER FINANCING USES) FUND BALANCES, July 1,2003 FUND BALANCES, June 30,2004