06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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Notes to Basic Financial Statements For the Fiscal Year Ended June 30,2004 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. Health Insurance The Town participates in a health insurance risk pool administered by the Cape Cod Municipal Health Group (Group). The Group offers a variety of premium based plans to its members with each participating governmental unit charged a premium for coverage based on rates established by the Group. The Town is ' obligated to pay the Group its required premiums and,in the event the Group is terminated,its proportionate share of a deficit,should one exist. Workers'Compensation , The Town participates in a premium-based workers'compensation policy for all employees. 1 NOTE 11-PENSION PLAN Plan Description-The Town contributes to the Barnstable County Retirement System(System),a cost-sharing i multiple-employer defined benefit pension plan administered by the Barnstable County Retirement Board. Substantially all employees of the Town are members of the System except for public school teachers and certain ' administrators who are members of the Massachusetts'Teachers Retirement System(MTRS),to which the Town does not contribute. Pension benefits and administrative expenses paid by the Teachers Retirement Board are funded by the Commonwealth. The amount of these on-behalf payments totaled approximately$628,700 for the ' fiscal year ended June 30,2004,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 increases 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 authorized by the Barnstable County Retirement Board and are borne by the System. The System issues a publicly available report in accordance with guidelines established by the Commonwealth's Public Employee Retirement Administration Commission. That report may be obtained by , contacting the System located at 99 Willow Street,Yarmouthport,Massachusetts,02675. 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 that is apportioned among the employers based on active current payroll. Chapter 32 of MGL governs the contributions of plan members. The Town's contributions to the System for the fiscal years ended June 30,2004,2003,and 2002 were$1,114,327,$954,451 and$913,348,respectively,which equaled its ' required contribution for each fiscal year. NOTE 12-COMMITMENTS ' The Town has entered into,or is planning to enter into,contracts totaling approximately$7,000,000 for projects ' relating to regional septage and sewer improvements,land purchases,machinery and equipment,infrastructure and an addition to the senior citizens center. These projects will be funded through the issuance of long-term debt. Town of Mashpee,Massachusetts 38 Basic Financial Statements