Town of BethanyAnnual Report

2017 ~ 2018

TOWN GOVERNMENT TELEPHONE DIRECTORY

AMBULANCE – POLICE – FIRE & OTHER EMERGENCIES 911

To reach all Town Hall offices: Dial 203-393-2100 and listen for directory of offices or dial extension. Town of Bethany Website: www.bethany-ct.com

Assessor…………………………………………………………………………………….Ext 1112 Wednesday 5:15 p.m. –7:15 p.m. Assessor’s Clerk…………………………………………………………………………....Ext 1112 Monday through Friday 9:00 a.m. – 4:30 p.m. Assistant Zoning Enforcement Officer Building Department Clerk Building and Land Use Administrative Assistant……………………………………….....Ext 1113 Monday through Friday 9:00 a.m. – 3:00 p.m. Building Officials…..……………………………………………………………….Ext 1116 or 1117 By appointment Bookkeeper……………………………………………………………..…………………..Ext 1109 Director of Human Services and Agent to the Elderly……………………………….…….Ext 1124 Monday through Friday 9:00 a.m. – 4:30 p.m. Director of Parks and Recreation………………………………………………………..…Ext 1127 Monday through Friday 9:00 a.m. – 3:30 p.m. Emergency Management Fire Marshal………………………………………………………………………………..Ext 1119 Finance Director……………………………………………………………………………Ext 1123 First Selectman…………………………………………………………………………..…Ext 1101 Selectman’s Secretary…………………………………………………………………...…Ext 1100 Monday through Friday 9:00 a.m. – 4:30 p.m. Inland Wetlands Clerk Planning and Zoning Clerk…………………………………………………………………Ext 1115 Monday through Friday 9:00 a.m. – 4:30 p.m. Hamden-Bethany Probate Court…….……………………………………………….203 287-7082 Hamden Government Building 2750 Dixwell Avenue Hamden, CT 06518

Monday through Friday 8:30 a.m. – 4:30 p.m. Registrars of Voters……………………………………………………………………..….Ext 1121 Resident Trooper………………………………………………………………………..….Ext 1129 Tax Collector……………………………………………………………………………….Ext 1110 Monday through Friday 9:00 a.m. – 4:30 p.m. Wednesday until 6:30 p.m. Town Clerk…………………………………………………………………………………Ext 1104 Monday through Friday 9:00 a.m. – 4:30 p.m. Treasurer……………………………………………………………………………………Ext 1100 Zoning Board of Appeals Clerk…………………………………………………………….Ext 1115 Zoning Enforcement Officer Wetlands Enforcement Officer……………………………………………………………..Ext 1135 Monday through Friday 9:00 a.m. – 4:30 p.m.

CONTENTS

TOWN GOVERNMENT TELEPHONE DIRECTORY Inside front cover ELECTED TOWN OFFICERS 2 APPOINTED TOWN OFFICERS AND EMPLOYEES 4 SENATORS AND REPRESENTATIVES 6

REPORTS OF TOWN OFFICERS, BOARDS AND COMMISSIONS Bethany Public School District 7 Board of Finance 9 Board of Selectman 10 Conservation Commission 12 Inland Wetlands Commission 13 Park and Recreation Department 13 Planning and Zoning Commission 15 Tax Collector 17 Town Clerk 17 Zoning Board of Appeals 19 Registrar of Voters 20

REPORTS OF REGIONAL AGENCIES

Amity Regional Board of Education 20

REPORTS OF LOCAL COMMUNITY SERVICE ORGANIZATIONS Bethany Land Trust 24 Bethany Library Association 25 West Rock Ridge State Park Advisory Committee 26 Quinnipiack Valley Health District 27 ANNUAL AUDIT REPORT Appendix RECYCLING INORMATION Back cover

Front Cover Illustration: Bethany Town Seal, Copyright 1988, Designed by Betsy Seaton

ELECTED TOWN OFFICERS

Term Expires: BOARD OF SELECTMEN: 2 year term Derrylyn Gorski, First Selectman Jul-19 Donald R. Shea, Jr., Selectman Jul-19 Clark D. Hurlburt, Selectman Jul-19

TREASURER: 2 year term Lawrence B. Eisner Jul-19

TOWN CLERK & REGISTRAR OF VITAL STATISICS: 4 years Nancy A. McCarthy Jul-19

TAX COLLECTOR: 2 year term Frances Doba Jul-19

BOARD OF FINANCE: 6 year term John E. Ford, IV Jul-23 Catherine Volk Erickson Jul-23 John F. Grabowski, Chairman Jul-21 Sharon J. Huxley Jul-19 Sally A. Huyser Jul-19 Melissa Spear Jul-21

BOARD OF EDUCATION: 6 year termJames A. Bruni Jul-21 Lynette A. White Jul-23 Doreen S. Fox Jul-19 John Paul Garcia Jul-19 Inez D. Kelso Jul-21 Christopher J. Pittenger Jul-23 Dorothy T. Seaton Jul-21 Vivian C. Shih Jul-19 Namita G. Wijesekera Jul-23

BOARD OF ASSESSMENT APPEALS: 4 year term Gary J. Ross, Chairman Jul-21 Nancy M. Spagnolo Jul-21 Elizabeth L. Thornquist Jul-19

JUDGE OF PROBATE: 4 year term Edward C. Burt Jan-19

JUSTICES OF THE PEACE: 4 year term

Salvatore Amadeo 1/4/2021

Lisa J. Anderson 1/4/2021 Janice E. Bruch 1/4/2021 Tracey A. Darling 1/4/2021 Nicholas DiGiorgi 1/4/2021

Carol R. Goldberg 1/4/2021 Derrylyn Gorski 1/4/2021 Clark D. Hurlburt 1/4/2021 Kathleen LeBlanc 1/4/2021 Donna J. Kruysman 1/4/2021 Patricia E. Martin 1/4/2021 Frank G. Pfeiffer 1/4/2021 June G. Riley 1/4/2021 Constance L. Royster 1/4/2021 Mary R. Scinto 1/4/2021 Donald R. Shea, Jr. 1/4/2021

PLANNING & ZONING COMMISSION: 4 year term Kimberly McClure Brinton, Chr. Jul-19 Michael A. Calhoun, V Chr Jul-19 Alexander Hutchinson Jul-21 Donna R. Shea Jul-21 Robert Harrison Jul-21 ALTERNATES: 4 year term Brad M. Buchta Jul-19 Carol Lambiase Jul-19 Eric McDonald Jul-19

REGION NO. 5 BOARD OF EDUCATION (AMITY): 4 year term

(Bethany Representatives) Paula Cofrancesco Jul-21 Jennifer Turner May-19

REGISTRARS OF VOTERS: 4 year term William L. Brinton, Republican Registrar Jan-19 Allyson Hawthorne Rogers, Democratic Registrar Jan-19

ZONING BOARD OF APPEALS: 4 year term Vacancy Jul-21 Margaret Foley Jul-19 Thomas S. Mabry Jul-21 Thomas P. Magda, V Chr Jul-19 Nicholas Poulmas Jul-21 ALTERNATES: 2 year term Robert C. Huxley Jul-19 April E. Stirling Jul-19 Mark Stricker Jul-19

APPOINTED TOWN OFFICERS AND EMPLOYEES

ASSISTANT TOWN CLERKS & ASSISTANT REGISTRARS OF VITAL STATISTICS William L. Brinton Robin Glowa ASSESSOR Mario Panagrosso ASSESSOR’S CLERK Robin Glowa/Frances Doba BOARD OF SELECTMEN’S SECRETARY June G. Riley BOOK-KEEPER Joyce Howard BUILDING OFFICIAL Robert Walsh Assistant Building Official Brian Donovan BUILDING AND LAND USE ADMINISTRATOR Isabel Kearns CEMETERY COMMITTEE Will Brinton, Chrm Mary Ehrler Carol Goldberg Kristine Sullivan Vacancy Steven Thornquist CLEAN ENERGY TASK FORCE Isabel Kearns Allene Kelley Eric Frieden Marie Pulito Amy Arnsten Lee Grannis Jenny Turner DIRECTOR OF HUMAN SERVICES AND AGENT TO THE ELDERLY Jeanne DelVecchio CONSERVATION COMMISSION Brian Eitzer Shaukat Khan Bruce G. Loomis, Chair Catherine Rives Patricia Winer Alternates: Vacancy Matthew Popp

DIRECTOR OF EMERGENCY MANAGEMENT Rod White Deputy: Clark Hurlburt Michael Katzmark DEPUTY REGISTRARS OF VOTERS Shannon Lane Janet Hescock DIRECTOR OF PUBLIC WORKS Alan Green EMERGENCY MEDICAL SERVICE COUNCIL Michael Sullivan ENUMERATOR Susan Carpenter FIRE CHIEF Richard Cogill FIRE INSPECTOR Alex Wilson, III FIRE MARSHAL Roderick White Deputy – Timothy Willis FIRE POLICEMEN Thomas Hicks Thomas Hunt Lester Warner GREATER NEW HAVEN CONVENTION & VISITORS BUREAU (Bethany Representative) Vacancy Health Department Quinnipiack Valley Health District HORSE COMMISSION Norma Kriz Richard Huxley Andrew Liveten, Commissioner Judith Smith David Tressel Martha Wetmore INLAND WETLANDS COMMISSION Robert C. Huxley Alt. Charles Clark Roger Hathaway Vacancy Nancy Scanlon Brian Smith, V Chr. Kristine Sullivan, Chairman

APPOINTED TOWN OFFICERS AND EMPLOYEES

INLAND WETLANDS COMMISSION CLERK Antonia Marek PARK AND RECREATION COMMISSION Janice Howard, Director Lynette White Nicholas Poulmas, Chairman Lisa Grabowski Joan Coutermarsh Nicholas DiGiorgi Dorothy Seaton PLANNING AND ZONING COMMISSION CLERK Antonia Marek REGIONAL MENTAL HEALTH BOARD (Bethany Representative) Maureen O’Brien REGIONAL POLICY BOARD SOUTH CENTRAL CONNECTICUT REGIONAL WATER AUTHORITY (Bethany Representative) Brian Eitzer RESIDENT STATE TROOPER David Merriam SOLID WASTE & RECYCLING COMMITTEE Bruce Loomis, Chr Carol Goldberg Bart Piccirillo Todd Ryker Donna Shea Michael Kaloyanides Eric Frieden SOUTH CENTRAL CONNECTICUT REGIONAL COUNCIL OF GOVERNMENTS – REGIONAL PLANNING COMMISSION (Bethany Representative) Michael Calhoun Donna Shea, Alt. TOWN ATTORNEY Kevin H. McSherry TREE WARDEN Raymond W. Pantalone, Jr. WEST ROCK RIDGE STATE PARK ADVISORY COUNCIL (Bethany Representatives): 2 year term Barrie Tait Collins - Steven Massey - Kristine Sullivan WETLANDS ENFORCEMENT OFFICE/ZONING ENFORCEMENT OFFICER Isabel Kearns

CURRENT SENATORS AND REPRESENTATIVES

STATE REPRESENTATIVE – 89TH House District

Lezlye Zupkus Home: 38 Colonial Drive, Prospect, CT 06712

Telephone: (860) 240-8700 Office: Room 4200, Legislative Office Building Capitol Avenue, Hartford, CT 06106-1591

Telephone: 1- (800) 842-1423

Email – Lezlye.Zupkus@housegop.ct.gov

STATE SENATOR – 17TH Senatorial District

George Logan Office: Legislative Office Building 300 Capitol Avenue, Hartford, CT 06106

Telephone: (800) 842-1421

REPRESENTATIVE IN CONGRESS – 3rd Congressional District

Rosa DeLauro CT Office: 59 Elm Street, New Haven, CT 06510

Telephone: (203) 562-3718 D.C. Office: 2262 Rayburn Office Building, Washington, DC 20515

Telephone: (202) 225-3661

UNITED STATES SENATORS

Richard Blumenthal CT Office: 30 Lewis Street, Ste 101, Hartford, CT 06103

Telephone (860) 258-6940 D.C. Office: G55 Dirksen Square Office Building, Washington, D.C 20510

Telephone: (202) 224-2823

Chris Murphy CT Office: 1 Constitution Plaza, 7th Floor, Hartford, CT 06103

Telephone: 1- (860) 549-8463 D.C. Office: B40A Dirksen Senate Office Bldg.Washington, DC 20510

Telephone: (202) 224–4041

REPORT OF THE BETHANY PUBLIC ELEMENTARY SCHOOL DISTRICT

Dear Citizens of Bethany, The Bethany Public School District’s Board of Education, administration and staff take great pride in providing a safe, nurturing and inclusive school community for all students. It is my privilege to serve the Bethany community as your Superintendent of Schools. In my third year serving in this role, I continued to learn about the Town of Bethany, Bethany Community School (BCS), and the many community agencies that support and complement our work in educating the children in our town. During the 2017 – 2018 school year, the Bethany Public School District served 376 students in grades preschool to six. In addition to those students enrolled in the elementary school, 415 students from Bethany were enrolled in Amity Regional District #5 in grades seven through twelve at the Amity Middle and High Schools. Members of the Bethany Board of Education for 2017 – 2018 included: James Bruni, John Paul Garcia, Doreen Fox, Inez Kelso, Dr. Christopher Pittenger (Chairman), Dorothy Seaton (Vice Chairman), Dr. Vivian Shih, Lynette White, and Dr. Namita Wijesekera (Secretary). Each year, together with the Board of Education, we have the opportunity to reflect upon the events and achievements for the Annual Town Report. It gives me great pleasure to share some of the highlights of the 2017 – 2018 school year. Developing the 2017 – 2018 budget was an extensive and collaborative effort, between the Bethany Board of Education, the Superintendent, BCS Administration and Department Heads including, Curriculum, Special Education, Board Office, IT and Facilities which began in October 2016. After balancing out contractual salary and transportation obligations, benefit increases and costs associated with unfunded mandates, grant funds were used to offset the proposed budget. Decreasing enrollment allowed for the reduction of one classroom teacher, a full-time special education position, and significant cuts to departments. In February 2017, the Board of Education presented a $6,654,933 budget to the Board of Finance reflecting a $124,395 or 1.9% increase from the previous year. At the Town Meeting in May 2017, the Board of Education’s budget, as presented, was approved. The District launched into the 2017-2018 with a solid budget that reflected the needs of the district, until uncertainty at the State level resulted in trepidation at the local level. State grant funds were reduced and there were warnings mid-year of other sizable cuts to Education Cost Sharing and Excess Cost. Due to cautious and responsible spending throughout the year, available Excess Cost funds, and savings realized in salaries and benefits, the District was able to end the year with a modest surplus. Per Connecticut State Statute, the Board of Education petitioned the Board of Finance for permission to deposit 1% of the BOE operating budget or $67,549.33 into a non-lapsing account to be used in 2018 - 2019 for unexpected Special Education costs. School leaders continued to build strong communication and relationships with legislators, key state educational leaders, community leaders and others to advocate for legislation in support of sustainable funding for schools. Throughout the 2017 – 2018 school year, there was a purposeful alignment between District and School goals to develop and implement a vision for improved student achievement. Our collective vision for effective change and improved student outcomes included a shared responsibility approach, one where everyone works towards the same objectives, and rely on each other to achieve our goals. In the Spring of 2018, BCS students in Grades 3 - 6 participated in the Smarter Balanced Assessment. Using a target model, the District has shown steady improvement over the last three years in the percentage of students achieving at or above goal in English Language Arts (75%), while the percentage of students achieving those same levels in Mathematics (64%), has remained somewhat flat. Using a growth mindset model, tested BCS students achieved, on average, 71% of their assigned growth targets, ranking them 5th in their DRG and competitive with neighboring towns. In addition, to the standardized testing, the District employs a variety of other assessments and measures to monitor and evaluate the effectiveness of teaching and learning. Throughout the year, the school invested in embedded and ongoing professional development activities for its administrators, teachers, and staff that focused on content knowledge and best practices linked to quality

instruction, strengthening the core educational program, and helping students learn in more meaningful ways. Teachers developed their capacity to function more effectively as a professional learning community by improving their data team facilitation and instructional coaching strategies. A consultant from CT3 helped staff to increase student engagement using No Nonsense Nurturer, an approach that empowers teachers to establish a positive classroom culture in which all students are set up to succeed. In addition, several workshops were delivered to support the implementation of the new Professional Growth and Evaluation Plan. Significant work was performed to enhance curriculum and instructional programs. Educators pursued initiatives designed to provide opportunities to enhance student learning. An increased focus on Science, Technology, Enrichment, and Mathematics (STEM) education proved to be an influential initiative with valuable community partnerships. The District embarked on a curriculum mapping journey in mathematics towards the end of the school year and will continue this work throughout the 2018 - 2019 school year. Led by the BCS Student Leadership Council, students participated in a variety of community service projects and raised thousands of dollars to support those in need. The school is proud of its partnerships with the Bethany Lion’s Club, Bethany/Woodbridge Rotary, Bethany Volunteer Fire Department, State Police Troop I, Clark Memorial Library, Yale New Haven Hospital, Quinnipiac University, Laticrete, and other community organizations. Leadership hosted two luncheons for the Town’s Senior Citizens and honors its Veterans throughout the year to show appreciation. The BCS PTO is an active and integral facet of school life. These dedicated volunteers support cultural enrichment programs for our students as well as field trips to extend student experiences beyond the school classroom. They sponsor numerous events throughout the year to support school activities while encouraging school spirit and pride. This year, the BCS PTO installed a running track on campus to promote physical fitness. To further promote the health and wellbeing of our school community, the District’s Wellness Committee, sponsored a 5K Race and Health Fair, and The Green Team supported the Town’s recycling efforts. As a District, we worked on improving efficiency and reducing costs in all departments. Maintaining our aging building is critical. With strong support from the Bethany community, BCS has a new roof and solar panels. Annex I was retired and returned to the Town, and the Board of Education took over the maintenance of the old schoolhouse from the Historical Society. An early childhood all-inclusive playground was installed on campus and Bethany Network News, a student-led news team, launched a series of broadcasts highlighting school news, weather, sports, and current events. In addition, responsible budgeting allowed for the acquisition of necessary instructional materials, 21st Century technology purchases and upgrades to our infrastructure. Grant funds contributed to the annual finances of the school district and are received from a variety of federal and state sources to supplement municipal funding for educational programs and services. Through the Teachers’ Leadership Collaboration Initiative, many teachers applied for and received local and interdistrict grants. Despite the constraints and challenges caused by the State’s current economy, Bethany continues to focus on improvement, and ways to leverage resources—people, time, dollars and relationships—to support our students. The Connecticut Association of Boards of Education (CABE) recognized the Bethany Board of Education for meeting the criteria standards for their exemplary work in the areas of Policy, Community Relations, Organizational Leadership, and Professional Learning. The District received Honorable Mentions for their Walk to School Day and Hurricane Relief Effort. BOE members received these awards from the Commissioner of Education at the CABE conference in November 2017. Mrs. Meladee Ruzbarsky was selected as Bethany’s Teacher of the Year and was recognized by the Connecticut State Department of Education and honored for this accomplishment at a statewide ceremony at the Bushnell in Hartford.

In an age of 24/7 “connected culture,” issues of cyberbullying, privacy breaches, and uncertainty about the authenticity of information available are surfacing in schools. BCS is committed to teaching our students how to think critically, behave safely and participate responsibly in the digital world they live in. As of result of these efforts, BCS was recognized by Common Sense Education as a Certified Digital Citizenship School. BCS has also been recognized as a Future Ready School for making bold efforts to maximize digital learning opportunities. Throughout the 2017 – 2018 school year, the Board of Education, Superintendent, and BCS Administration and staff continued their work to increase effective communication with members of the Bethany community. Efforts in this area included weekly and monthly newsletters, Bethany Bulletin articles, Parent Academies on a variety of topics, and Board of Education sponsored “Community Open Forums.” Parents were invited to a series of events highlighting their children’s learning experiences including, Family STEM Nights, Science Fair, Invention Convention, and a Night of the Arts. To further promote effective communication, and collective decision making, surveys were distributed to gather feedback on a variety of topics. In addition, Board of Education meetings and presentations were videotaped and uploaded to the District website. At BCS, providing our students with access to well-rounded, high-quality education is a top priority. Bethany is a community built on generations of people who care about each other and the education of their children. I’d like to take this opportunity to thank the citizens of Bethany for their continued support as we continue to work together to create an excellent school system, of which this community should be justifiably proud. Respectfully submitted, Colleen M. Murray Superintendent Bethany Public School District

REPORT OF THE BOARD OF FINANCE

The role of the Board of Finance is to recommend an annual town budget to the citizens of the Town, regularly review the financial condition of the Town and take action as necessary to ensure financial stability and to arrange for the annual audit and the publishing of the Annual Town Report.

The Board of Finance holds regular meetings at 7:00 p.m. the second Tuesday of each month and schedules special meetings as needed especially between January and April when the budget is being formulated.

The Town of Bethany ended its 2017 - 2018 fiscal year with an unassigned fund balance of $4,382,859 which was 17.75% of the total general fund expenditures and transfers. This is a very healthy general fund balance and is well within the Board of Finance policy of 10 – 14%.

The Town’s budget revenues are primarily based on local property taxes. The net taxable Grand List at October 1, 2017 was an increase of 2.87% versus the previous year. The mill rate for the 2017-2018 year was 36.90, an increase of 2.62% versus the prior year rate of 35.96. The tax collector collected 98.76% of the current grand list assessment.

Other revenues included interest income on invested cash, state and federal grants and permits/fees. For the 2017 – 2018 fiscal year, the Town’s budgeted revenues were $23,239,410 - 89% of which was current year property tax revenue. The portion of incoming revenues provided through property taxes is directly impacted by the level of state funding of municipalities.

Actual revenues were $24,107,992 which was $868,582 over budget. The higher revenues came from a few of sources which included an increase in property tax revenue $628,752 and an Amity School District refund $370,801.

The original budgeted expenditures approved at the Annual Town Meeting were $23,239,410. Actual expenditures for the year were $22,959,914 which was $279,496 under the original budget of appropriations and transfers. During the 2017-2018 fiscal year, Public Works snow/ice budget was over $49,387 and road resurfacing was over $37,310 – both of these overages were balanced within other categories within the Public Works budget, The General Government budget was under $26,917 due to favorable fuel oil and gasoline prices. Medical insurance premiums were $51,136 less than budget and General Insurance was $21,646 under budget. In total, the General Fund increased by $698,977.

The Town’s capital appropriations budget for 2017 - 2018 of $279,012 included a number of payments and a number of projects which included BVFD Hurst Tool, Fire Station FOB System, Library sidewalk repair, BCS heating control system, and Revaluation. See page 68 of the Audited Financial Statements for a complete list of appropriations and expenditures by project. The committed fund balance in the Capital Reserve Fund was $1,363,150, During the year, The Town issued $3,240,000 of bond anticipation notes for the construction of a salt shed, the purchase of a new fire truck and the Bethany Community School roof project. The Town also issued $3,230,000 of bond anticipation notes to finance the Bethany Volunteer Fire Department communication system project and to refinance the $3,240,000 notes.

During 2018, the Town of Bethany made $515,000 of scheduled bond principal payments. Total balance of long-term bonded debt outstanding at the end of the fiscal year 2018 was $2,650,000. The Town continues to carry an Aa2 credit rating from Moody’s Investors Service Inc. - the highest a town with our size can get.

For more information, please see the complete Annual Audit Report contained in the Appendix to the Annual Town Report, especially the Management Discussion and Analysis section.

Respectfully submitted,

John Grabowski

Chairman of the Board of Finance

REPORT OF THE BOARD OF SELECTMEN

Tornado Rips through Bethany on May 15, 2018 At approximately 5:05PM on Tuesday May 15, 2018 a tornado hit Bethany. It was over in under 15 minutes and devastated the town. These are my notes on the May 15th tornado- I was at town hall when the storm hit-it looked like a very strong thunderstorm from my vantage point, I did not see the funnel cloud or hear the “freight train” reported by many others. Town hall lost power, so I left to go home, the wind had died down and it was raining. I couldn’t believe what I saw when I got outside! I drove up to the school to find Principal Bob Davis outside assessing the damage. Trees and wires were down on my regular route home; I called my family to see that they were OK, drove around a little to try to evaluate the scope of the damage and then headed to the Firehouse to officially open an Emergency Operations Center (EOC).

Public Works Director Al Green and Bethany Volunteer Fire Department (BVFD) Fire Chief Rich Cogill were both stuck at their homes with several large trees blocking their driveways. Crews were sent to clear debris to allow those essential personnel to get to the EOC. Fortunately, we were able to remain in contact via cell phone. Emergency Management Director (EMD) Rod White and Deputy EMD Mike Katzmark were at the EOC along with Assistant Chief Brent Ciccarelli and rescue efforts were already underway. Ambulance Corps Emergency Medical Technician (EMT) Andrew Calhoun came in to tell us there were two patients in the ambulances; they couldn’t get to any hospital because every road out of town was blocked! I contacted Eversource to get a crew to Rt. 63 and Tuttle Court to try to work with the town to clear at least one lane. The Eversource crews had to clear their way into town, trees were down everywhere. Meanwhile, the road crew and BVFD members were able to cut a path through Valley Road to Route 69 to get the ambulances through. The patients were at the Firehouse for close to two hours before we could get them to a hospital! We had a generator at the EOC, so we had power, but we had no telephones or internet so I texted the Department of Emergency Management and Homeland Security (DEMHS) on Tuesday night that I was declaring Bethany to be in a State of Emergency. As I was about to leave the EOC to go home at midnight, BVFD members Steve Kirschbaum and Anthony Dota offered to drive me so I wouldn’t have to navigate around my blocked road in the dark. I was so grateful when I got to Old Fairwood Rd and realized the challenge it would have been to try to do that alone with only my phone for a flashlight! Back at the EOC early Wednesday morning we were monitoring roads closed and trying to work with Eversource and their tree crews to clear what we could without endangering our crews because of downed power lines. Selectman and Deputy EMD Clark Hurlburt organized the Community Emergency Response Team (CERT) to open an emergency shelter accepting the offer from Rev. Shea Zellweger to open the parish hall at the Congregational Church as BCS had no power and their generator was “finicky”. Human Services Director Jeanne Delvecchio was at the EOC fielding calls for assistance and organizing wellness checks while doubling as lunch and dinner chef for the crews and those of us in the EOC. Eversource told me that 49 crews from New Hampshire were on their way and might be here as early as late Wednesday. I requested an Eversource liaison be assigned to Bethany’s EOC to facilitate communications between the Town/BVFD personnel and the Eversource contractors in the field. On Thursday at 7am I called our DEMHS regional Coordinator to explain that we needed help, we needed more personnel and heavy equipment; we needed the National Guard. He called back that afternoon to tell me a National Guard Unit from East Granby would be in Bethany on Friday. They were a very efficient and productive unit! We have had National Guard assistance in other storms, but this particular group was outstanding. Eversource called to tell me a liaison was on his way to Bethany. Every day, I took rides around town to see how people were doing and how things were going. Neighbors were out helping neighbors all over town. By Thursday, the New Hampshire crews were in town and on Friday even more arrived. Having the Eversource liaison in our EOC was very helpful in dealing with so many different crews working all over town. We were at 98% of the town with no power on Tuesday night. On Friday morning we were down to 90% and by Friday evening we were under 70%. Eversource made amazing progress throughout the weekend so that late Sunday night we were at only 11% without power. On Tuesday, only one week after the devastating tornedo, everyone in Bethany had power except for those with special circumstances.

Bethany had 201 broken poles, 344 trees to be cleared to get to the poles/wires, 30 miles of wire to be replaced, 71 transformers to be replaced and 35 completely blocked roads. We have never seen anything like this. We are all so grateful that there was no loss of life or serious injuries as a result of this truly devastating storm.

Town Property and Road Improvements

The construction for the upgrade of the public safety radio communications system was completed in the spring

of 2018. Rainbow Road and Munson Road were paved using the funds from the Major Roads line item in the

Department of Public Works operating budget.

Respectfully submitted, Derrylyn Gorski

First Selectman

REPORT OF THE BETHANY CONSERVATION COMMISSION

The Conservation Commission meets on the second Thursday of each month in the Town Hall Commission Room. The Commission acts primarily in an advisory capacity to several town boards and commissions including the Planning & Zoning Commission and the Inland Wetlands Commission. The Conservation Commission continues to sponsor the annual Bethany Community School “Conservation Award” and this year’s (June 2018) recipients were Rose Megyola and Kayla Derose.` Many hours were spent during the year working on updating the Open Space Plan which was last update in 2010. Preservation activity and other land use changes require numerous modifications. We are also reviewing goals and priorities. This is an ongoing project. The commission worked with and supported the Bethany Land Trust in its successful effort to acquire and preserve the Grobe property in the Northwest portion of town near Veteran’s Memorial Park. In November some of our members attended the annual statewide conference of the Connecticut Association of Conservation and Inland Wetlands Commissions (CACIWC) in Wallingford. This conference provides breakout educational sessions and an opportunity to discuss common issues and innovative solutions with commissions from other towns and state agencies. Once again, the Conservation Commission worked to rebuild the Land Acquisition fund by requesting an annual contribution of $100,000. The request was approved by the Board of Finance as a reduced amount of $50,000 and then voted on and approved by the residents at the Annual Town Meeting in May. The Conservation Commission currently has vacancies for members to help us preserve and maintain the “Bethany character”. Anyone interested should contact either the First Selectman’s office or The Conservation Commission chair.

Respectfully submitted,

Bruce Loomis Chairman

REPORT OF THE INLAND WETLANDS COMMISSION

The Inland Wetlands Commission meets on the third Monday of the month. If the third Monday is a holiday or a day of religious observance, the meeting takes place on the third Tuesday. For the fiscal year of July 1, 2017 through June 30, 2018, the Inland Wetlands Commission held eleven (8) regular meetings and eight (8) special meetings and/or site visits. Formal requests brought to the Commission for consideration resulted in the following action:

1. Seventeen (17) applications for new permits were approved. 2. One (1) application was withdrawn. 3. Two (2) Notice of Violation letters were issued. 4. Two (2) Cease and Desist Orders were issued.

The Inland Wetlands Enforcement Officer continues to do inspections of sites active under issued permits or approved site plans. “The Inland Wetlands and Watercourses of the State of Connecticut are an indispensable and irreplaceable but fragile natural resource with which the citizens of the State of Connecticut have been endowed. It is, therefore, the purpose of the Inland Wetlands and Watercourse Act to protect the citizens of the State by making provisions for the protection, preservation, maintenance and use of the Inland Wetlands and Watercourses by minimizing their disturbance and pollution.” It is the “public policy of the State to require municipal regulation of activities affecting the Wetlands and Watercourses within the territorial limits of the various municipalities….” The above statements are part of the “Inland Wetlands and Watercourses Act.” It is the basis for the regulations that the State and Town of Bethany Inland Wetlands Agency use to enforce the letter and spirit of the Act. The members of the Agency contribute their time and efforts to the purposes of the Act, preparing for and attending meetings, conducting site visits and attending educational programs.

Respectfully submitted,

Kristine Sullivan Chair for the Inland Wetlands Commission

REPORT OF THE PARKS AND RECREATION DEPARTMENT

Current # Staff: Full-time 2 Other positions are season Current # Staff: Full-time 2 Other positions are seasonal and depend on the programs offered. Parks & Recreation Commission Chairman: Nick Poulmas Commission Members: JR Rivellini

The Parks and Recreation Commission meets monthly.

DESCRIPTION OF SERVICES PROVIDED BY DEPARTMENT: The Mission of the Bethany Parks and Recreation Department is to provide high-quality programs and recreational opportunities for all residents of Bethany. Continuing programs include: Laser Tag, Soccer, Floor Hockey, Cooking, Baking, Dodge Ball, Cardio/Strength, Dog and Puppy Training, Karate, Yoga, Zumba, Ping Pong, Tennis Lessons, Legos, Kids on Stage, Bethany Hoops, Rec Room, Dance Classes, and more.

The Bethany Parks and Recreation Summer Camp is a 10-week program with morning and afternoon sessions, providing the flexibility to register for 1 day up to the entire 10 weeks. We also have options for early arrival and extended care. We encourage Early-Bird registrations to save funds! We coordinate schedules with the Community School to provide students who participate in the summer skills academic program the opportunity to enjoy afternoon camp sessions.

Total Program Participants –this year was over 1,200, which does not reflect special town events provided by the Parks and Recreation Department like the Bethany Family Harvest Festival. HIGHLIGHTS DURING THE PREVIOUS YEAR: The Bethany Family Harvest Festival With each year, this event gets a little bigger, better organized and attended, and more successful. Our Harvest Festival is filled with many exciting and family fun-filled events. It has included live music, petting zoos, moon bounce, craft/local business fair, children's games and other family fun entertainment. In 2018, over 2,000 residents participated in the fun! The participation of Food Trucks increased again this year, and offered an even greater variety of cuisine to the festivities. Parks and Recreation, the Harvest Festival Committee, our Town Crew, the Bethany Volunteer Fire Department, the Bethany Athletic Associational, and our CERT team all worked together to provide Bethany residents with this fun-filled day! We also thank many of our local businesses and vendors for their sponsorships and participation! Trunk-Or-Treat This past October, the Parks and Recreation Department, along with many other Bethany organizations and local businesses, participated in this fun-filled Halloween event sponsored and organized by the Bethany Volunteer Fire Department. Road Race, Spring Fling, Walk-To-School Days, Truck-Back-to-School The Parks and Recreation Department enjoyed working with the Bethany Community School in a variety of events throughout their school year! Affiliations with Other Town Organizations We also collaborated with the Bethany Athletic Association, local youth softball and baseball leagues, cheerleading, soccer and color guard programs to provide children a place to practice and play during the winter months when they are unable to do so outdoors. Amity youth football also utilized our outdoor fields during the Fall and Spring seasons for a number of their teams.

Veteran’s Memorial Park We are about to enter our 18th season at Veteran’s Park in Bethany. Seasonal hours with lifeguards will be 10am to 5pm on weekends from Memorial Day weekend until approximately June 25th (dependent on the last day of school at BCS); after that time, we will then open 7 days a week, weather permitting. Fee for non-Bethany residents is $100/vehicle. The fee covers unlimited use throughout the year. To register, please contact Bethany Parks and Recreation at 393-2100 ext. (1127). Remember, Bethany residents need their sticker. Veteran’s Memorial Park—Route 42 Hours: 8am – 5pm from day after Labor Day to April 30th; 8am – 8pm from May 1st to Labor Day. Playground, Basketball, Tennis, Fishing, Boating and Walking Trails Pavilion Rentals are available. Please contact June Riley at the Town Hall, 203 393-2100, ext. 1100 for more

information on this facility and/or to reserve space. Pole Hill Dog Park—Pole Hill Road Hours: Sunrise to Sunset Off-leash play area for dogs Pole Hill Skating Area – Pole Hill Road Hours: Sunrise to Sunset Airport Horse Rings—Route 63 Hours: Sunrise to Sunset Enjoy riding your horse. The Parks and Recreation Department is always working on new programming. Please let us know if there are any activities you would like to see offered.

Respectfully Submitted,

Janice Howard

Director of Bethany Parks and Recreation

REPORT OF THE

PLANNING AND ZONING COMMISSION

The Planning and Zoning Commission meets on the first Wednesday of the month. If the first Wednesday is a holiday or a day of religious observance, the meeting takes place on the second Wednesday. For the fiscal year of July 1, 2017 through June 30, 2018, the Planning and Zoning Commission held ten (10) regular meetings and seven (7) special meetings and/or site visits.

Formal requests brought before the Commission and the Zoning Enforcement Officer resulted in the following action: Action Requested Approved Denied Withdrawn Additional Business Use 0 0 0 Affordable Housing Development 0 0 0 Amendment to the Zoning Regulations 0 0 0 Amendment to the Subdivision Regulations 0 0 0 Administrative Earth Removal 0 0 0 Business Centers 0 0 0 Business Change of Use 9 0 1 Business Locational Approval 0 0 0 Commercial Additions 0 0 0 Commercial Buildings 0 0 0 Home Occupation 7 0 0 New Business Use 0 0 0 New Residences 3 0 0 Permit Modifications 0 0 0 Action Requested Approved Denied Withdrawn Re-subdivisions 0 0 0 Scenic Road Designations 0 0 0 Signs 2 0 0 Site Plan Approval 1 0 0 Special Exception Earth Removal 0 0 0 Special Exception Permits 7 0 0 State Statute Section 8-24 Reviews 1 0 0 Subdivisions 1 0 0 Zone and Lot Line Change 0 0 0 The Planning and Zoning Commission voted in favor to opt out of SB922, PA 17-155, an Act concerning State initiated Temporary Healthcare Structures (a transportable residential structure). The Town Plan of Conservation and Development, Zoning Regulations and Subdivision Regulations can be viewed on the Town of Bethany website. Planning Consultant Hiram Peck continues to work with the Commission on both updating the regulations and as a consultant on larger scale proposals that come before the Commission. Zoning Enforcement Officer Isabel Kearns continues to work with the Commission by processing zoning complaints, reviewing applications, and assisting in updating the Commission’s regulations. The Zoning Enforcement Officer issued the following:

Fifteen (15) Notices of Violation Letters. One (1) Cease and Desist Order.

Commission members continue to contribute their time and efforts for the Town, preparing for and attending meetings, conducting site visits and attending educational programs.

Respectfully submitted,

Kimberly McClure Brinton Chair for the Planning and Zoning Commission

REPORT OF THE TAX COLLECTOR

The collection rate on the 2016 Grand List (October 1, 2016 to September 30, 2017), collectible in 2017-2018, was 98.57% overall. Total Collectible Revenue for was $20,796,684 of which $20,501,304 was collected by the Tax Office. Resident Parking Permits to allow entry into Veteran’s Memorial Park and the Recycle Center were introduced and provided through Motor Vehicle tax bill mailing and also available by application at in the Tax Office. These Resident Permits along with the required purchase of Non-Resident Permits for a cost of $100.00 to a non-resident enabled the town to maintain the park for the people who use it. Non-resident permits do not allow access to the Recycle Center.

Respectfully submitted,

Fran Doba, CCMC Tax Collector, Town of Bethany

REPORT OF THE TOWN CLERK

  

This report covers the period between July 1, 2017 and June 30, 2018  

July 27, 2017 – Special Town Meeting  To elect candidate to fill vacancy on Reg. Bd. of Ed. left by resignation of William Blake. Jennifer Turner – 97 – to sit until next municipal election; Heidi Gianquinto – 28 Amendments to Town Code to adjust term expirations on ZBA alternates, P & Z alternates and to amend Chapter 194 Vehicles and Traffic to include Town of Bethany issued parking stickers. Passed. To authorize expenditures from General Fund not to exceed $50,000 for replacement of roof at Lakeview Lodge. Unanimous in favor. To nominate and elect one member to Regional Policy Board of South Central Regional Water Authority district for three-year term due to passing of Alexandra Breslin.

Brian David Eitzer nominated by Board of Selectmen. Unanimous in favor. January 18, 2018 – Town Officer’s Meeting Item 1 concerned removing some of the warning signs on town roads. Residents were encouraged to identify and report back excessive use of signs on town roads and report back to First Selectwoman Gorski. This is a Federal program mandated by the State. Item 2 – Hazardous Mitigation Plan. Clark Hurlburt gave a presentation. In order to apply to FEMA for reimbursement the Hazardous Mitigation Plan must be updated. Targeted updates include a generator to Town Hall, repaired generator at BCS, aggressive tree trimming and removal, Human Services maintaning HIPPA compliant lists as information becomes available and completion of the airport project.

Transfer of First Church of Christ Cemetery to the Town of Bethany. Unanimous in favor. Amend the Code of the Town of Bethany Chapter 184 to include an assessment in the amount of $10,000 to Gold Star families to include any parent whose child was killed in action or the surviving spouse of a person who was killed in action while performing active military duty. Unanimous in favor. May 8, 2018 – Amity Regional District #5 Budget Referendum. Bethany – Yes-152; No-83 Orange - Yes-285; No-101 Woodbridge – Yes-207; No-94 Passed 664 278 May 21, 2018 – Annual Town Meeting & Annual Budget Meeting To receive report and recommendations of Bd. of Finance on $23,468,947 fiscal year budget beginning July 1, 2018. Overwhelming yeas. Passed To authorize expenditure of up to $140,000 for new Payloader for Highway Department. Overwhelming yeas. Passed To authorize expenditure of up to $34,000 for (2) Cardiac Compression Units for Fire Department. Unanimous. Passed. To authorize expenditure of up to $52,000 for new telephone system for Bethany Community School. Unanimous. Passed. To authorize expenditure of up to $80,000 for new carpet for Bethany Community School. Unanimous. Passed. To authorize expenditure from Reserve Fund of up to $25,000 for Land Acquisition Fund. Unanimous. Passed. Reports of various Town Officer, Boards and Commissions. Unanimous. Passed.

This is the eighteenth year of the Historic Documents Preservation Grant Program. This year a Locking shelving system used for storing election materials and records being held for retention, as well as two replacement tops for the Land Record shelving units were purchased. Vital records processed during this period include – 6 marriages of Bethany residents performed in Bethany; 20 marriages of Bethany residents performed in other CT towns; 16 marriages of non-residents performed in Bethany; 37 births; 39 deaths; 11 burials. We had 95 requests for copies of Vital Records. Fiscal year collections for July 1, 2017 – June 30, 2018 totaled $155,591.23. Of that amount $149,878.23 went to the General Fund. Collections include recording fees, conveyance taxes, recording of notary public appointments and fees for notarizing, dog licenses, map copies, permits, marriages, certified copies and photo copies. Our Land Records company now has a new indexing system called Recordhub. You are able to view the indexes (no fee) although it requires signing in. Thank you to both of my Assistants Robin Glowa and Will Brinton for their dedication to the office. We are always ready to assist residents who come to our counter.

Respectfully submitted,

Nancy A. McCarthy, CMC Bethany Town Clerk

REPORT OF THE ZONING BOARD OF APPEALS

The Zoning Board of Appeals meets, as necessary, on the second Monday of the month. If the second Monday is a holiday or a day of religious observance, the meeting takes place on the second Tuesday. For the fiscal year of July 1, 2017, through June 30, 2018, the Zoning Board of Appeals held the following meetings and action taken by the Board:

One special meeting. No public hearings. No variance requests.

The essential purpose of the zoning board of appeals, so far as its power to grant variances under the General Statutes is concerned, is to furnish some elasticity in the application of regulatory measures so that they do not operate in an arbitrary, unreasonable or confiscatory manner, or in any manner which would be unconstitutional. The power of the board to review, on appeal, under the General Statutes, any order of the zoning enforcement officer to reverse, affirm or modify that order, also applies some measure of elasticity. This power is vested in a zoning board of appeals, both to provide aggrieved persons with full and adequate administrative relief and to give the reviewing court the benefit of the local board’s judgment. Respectfully submitted, Thomas Magda, Chairman for the Zoning Board of Appeals

REPORT OF THE

REGISTRARS OF VOTERS

The Registrars of Voters are responsible for maintaining an accurate voter list and supervising all town, state and federal elections, referenda, and primaries in a non-partisan and fair manner. The Registrars also attend periodic statewide conferences, county meetings and training sessions to keep up to date on the latest changes in election law and voting technology.

In Fiscal Year 2017-2018, Bethany held the annual Amity Regional School budget referendum on May 8, 2018. We also conducted our biennial canvass of voters to ensure the accuracy of Bethany’s voter list.

At the beginning of the fiscal year on July 1, 2017 there were a total of 4215 voters, broken down into 1154 Democrats, 1159 Republicans, 1849 Unaffiliated and 53 Other (Independent, Green, Libertarian Working Families, etc.). At the end of the fiscal year on June 30, 2018 there were a total of 3827 voters, broken down into 1055 Democrats, 1089 Republicans, 1631 Unaffiliated and 52 Other.

On a weekly basis, we also update the voter list with online data from the DMV containing address changes, notifications from the Secretary of the State’s office about people who have registered to vote in other states, and monthly notification from the Town Clerk’s office about people who have passed away. In any other case, to add, delete or restore a voter to the list legally requires a signature from the voter.

The Registrars wish to remind residents that it is their responsibility to register to vote in Bethany. Even if an individual was registered in another town prior to moving to Bethany, he or she must complete and submit a new voter registration card in order to vote here.

To register to vote, a person must be a resident of Bethany, a U.S. citizen, and at least 17 years old (18 to vote). Mail-in cards are available at the Town Clerk’s office as well as the Clark Memorial Library. Registrations may be done online at voterregistration.ct.gov as well. Changes of address, party affiliation or name may also be made online, by mail or in person.

Bethany voters of any party affiliation (including the unaffiliated) are welcome as poll workers! Sixteen- and 17-year-olds are also eligible to work in the polls, and may consider this for a community service requirement at their schools. Interested people should contact us as indicated below.

We are happy to assist voters with any questions regarding voter registration or elections. We can be reached through our Town Hall phone number, 203-393-2100, ext. 1121 or by email at registrar@bethany-ct.com

Respectfully submitted,

Janice E. Loomis & Allyson Rogers

Registrars of Voters

REPORT OF THE

AMITY REGIONAL SCHOOL DISTRICT NO. 5 Amity Regional School District No. 5 provides educational programming for students in grades 7-12. The district serves the towns of Bethany, Orange and Woodbridge, Connecticut. Amity students regularly exceed state and national averages on standardized exams and continue to demonstrate their competence in a myriad of non-standardized assessments. Amity students achieve at high levels across all content areas. Enrollment for the 2017-2018 school year is 2,244 which includes fourteen students in the state-mandated Open Choice Program and six tuition students.

The Amity Regional School District believes that education is a cooperative effort shared by the family, the community and the school. We believe a creative and challenging academic program, strong support services, and varied opportunities in co-curricular activities best serve our students. Amity encourages students to think critically and to evaluate information as they work to acquire and create new knowledge, with the goal of applying their knowledge and skills to solving real world problems. Amity challenges its students to become active lifelong learners and literate, caring, creative and effective world citizens. We seek to instill a sense of personal integrity in a school-wide climate of mutual respect. We strive to provide a physically safe and socially and emotionally healthful environment. Even in the present challenging financial climate, we remain committed to these ideals. Amity Regional School District No. 5 school improvement plans and activities continue to focus on improving student achievement. In 2017-2018, the Smarter Balanced Assessment (SBA) for reading and mathematics was administered to students in grades 7 and 8. The SAT was administered to all students in grade 11 as the state adopted test for secondary students. The Pilot Next Generation Science Test was also administered in spring 2018 in grades 5, 8, and 11. The faculty, staff, and administration engaged in a curriculum review and revision process. Curriculum in all core and elective courses continue to be aligned with the Connecticut Core Standards, Connecticut Social Studies Framework, and the Next Generation Science Standards. This realignment of curriculum complements leading research on focused instruction, including literacy skills in all core and elective courses. Amity is committed to ensuring that all teachers use research-based best practices in literacy to support content objectives across the curriculum. Supported by reading consultants, each teacher at ARHS and AMSB is expected to incorporate reading strategies and design lessons that support the development of literacy skills. The faculty, staff, and administration have also made a concerted effort to ensure that all students are provided rigorous and challenging academic to examine the Connecticut State Guidelines for possible revisions to the district teacher and administration evaluation plan based on a flexibility option for observations. The final plan incorporates all aspects required by the new State legislation and was approved by the Board of Education for implementation in the 2018-19 school year. Amity Regional High School (ARHS), and Amity Middle School Bethany (AMSB), engage in numerous initiatives designed to reduce ethnic, economic, and racial isolation. For example, the district encourages the Open Choice Program with a total of fourteen students participating in 2017-2018. The Milford Rape Crisis Center provided all schools with training focused on bullying, sexual harassment, and experiences. These efforts include, but are not limited to, the development of student-centered practices and authentic real world learning experiences. Teachers continuously reflect on curriculum scope and sequence as well as course offerings to ensure that students’ needs are being met. Each of these initiatives is designed to continue to expand the repertoire of curriculum, instruction, and assessment practices used across the academic program, and ensure that all students are sufficiently challenged. Teachers and administrators review data to determine instructional decisions for all students. During the 2017-2018 academic year, a committee of teachers and administrators continued diversity. As part of professional learning day for staff, Dr. Donna Volpitta, Center for Resilient Leadership, presented a keynote session focused on the topic Raising Resilient, Emotionally Healthy Students: Understanding the Simple Brain Science. Twenty-two students from both Amity Middle Schools attended the Discover, Lead! Leadership Conference for Young Men and Women of Color in Middle School sponsored by the Connecticut Association of Schools at Sage Park Middle School. Students participated in workshops and exercises to promote students’ leadership skills led by Omari Pearson, a former professional basketball player who works to inspire and empower students. Chris Williams, an African American motivational speaker, addressed all students at AMSB. Mr. Williams challenged students to “Harness Greatness” and to raise their performance by taking simple steps: staying positive, smiling, saying thank you, and helping others. Funding was made through a grant from the Alliance for Prevention and Wellness in Ansonia. AMSB held an annual Awareness Week organized by the Student Council with the theme “Diversity: Strength in Numbers.” Presenters from the National Conference for Community and Justice provided teachers

with training focused on how racism impacts our lives and the lives of students. Approximately 200 seniors participated during the spring in the ARHS Senior Service Learning Program and 12 in the Senior Interest Project. Both programs provided structured support in career skill development focused on diversity in the workplace. Amity students volunteered at numerous shelters and service agencies. Topics in social studies, world languages and literature include the study of cultural differences and issues regarding diversity. Amity Regional Middle School – Bethany Campus Niche.com 2019 ranked Amity as the fifth school district in the state and the only district recognized from New Haven County in the top 10 Best School Districts in Connecticut. Amity Middle School Bethany was ranked #1 for the Best Public Middle Schools in New Haven County. Students come to AMSB from three distinct socio-economic areas: Woodbridge, Bethany, and New Haven. Approximately 33 percent of our students come from the town of Bethany, a District Reference Group (DRG) “C” designated community and approximately 67 percent of our students come from Woodbridge, a DRG “B” designated community. As participants of the Open Choice Program, four students from New Haven attend our school. These students are fully integrated into all aspects of the school program. The middle school has a strong team organization and students are encouraged to identify with their grade level team. Seventh graders, in the spring of each year, participate in a weeklong “Nature’s Classroom” camp experience. Team building activities are a strong component of this experience and similar experiences are built into the end-of-year field day program for seventh graders. Nine students from AMSB attended the Math Counts Chapter Competition at Yale University competing along with 110 students from 13 other schools. Two seventh graders were part of the top 25% and qualified for the Math Counts State Competition. In the New England Math League Contest, the AMSB 7th grade team placed 8th out of 79 schools and 1st in New Haven/Fairfield County. One 7th grade student placed 18th in the overall contest and 3rd in New Haven/Fairfield County. Another 7th grade student placed 29th in the overall contest and 4th in New Haven/Fairfield County. The 8th grade team placed 4th in New Haven/Fairfield County. Students in AMSB’s Robotics & Engineering Research Program had another great year competing at the 70th Annual CT Science & Engineering Fair. AMSB presented six finalists and took home 11 awards for its research projects, including a 1st place finish and invitation to compete in Broadcom MASTERS, the nation’s premier science and engineering competition for middle school students.

From more than 1,500 entries eleven AMSB students were selected as winners/honorable mentions for their writing or artwork by the 2018 CT Student Writer Competition sponsored by the UCONN Connecticut Writers Project. Governor Malloy and Commissioner of Education Wentzell recognized the school in the spring of 2017 for outstanding performance on the Governor’s Summer Reading Challenge where 100% of our students participated and contributed reading, on average, 4.85 books for a total of 1,622 books read. Seventy-eight percent of eighth grade students passed all four State Fitness Tests. The AMSB Band, Jazz Band, Chamber Singers, and Strings each earned the very highest “Platinum” recognition and the Chorus earned “Gold” recognition in the May 2018 Adjudication. Eleven students were selected to The Southern Regional Music Festival for the 2017-2018 school year. Amity Regional High School Located in the town of Woodbridge, Amity Regional High School (ARHS) enrolls approximately 1475 students in grades 9-12. Amity Regional High School has been the recipient of several esteemed awards including recognition by the Washington Post as one of America’s Best High Schools that Challenge their Students to Excellence. Additionally, the College Board recognized ARHS as an Advanced Placement District Honor Roll School. Amity Regional High School was recognized as a National Blue Ribbon School by the U.S. Department of Education for the calendar year 2014. This highly recognized national award honors public and private schools where students perform at very high levels. The U.S. Department of Education requests nominations from the top education official in every state. At the high school level, of those recognized as Exemplary High Performing Schools, 45 were public high schools with two in Connecticut. Amity Regional High School has

also been one of two Connecticut high schools recognized as an Exemplary High Performing School. Niche.com 2019 ranked ARHS #8 Best Public High Schools in the state. Academically, Amity Regional High School provides a wide range of learning opportunities including several Advanced Placement (AP) courses. Our Career and Technical Education Department offers an extensive selection of courses. Over 95% of Amity graduates attend two and four-year colleges after graduation. Amity Regional High School has also been the recipient of several prestigious awards during the 2017-2018 school year. Amity High School was recognized for the second year in a row as a school of a distinction for their Red, White, & Blue Civic Engagement Initiative Projects for Grades 9-12 by the State Department of Education. Students participated competitively in Robotics, Science, and Engineering Competitions. Three students were recognized as 2017 Regeneron Science Talent Search Semifinalists and there were seven National Merit Finalists, seven National Merit Semi-Finalists and sixteen National Merit Commended Students. All students participated in programs related to character education. During the 2017-2018 school year, 197 seniors spent a portion of their spring semester participating in the ARHS Senior Service Learning Program. This senior internship program provided structured support in career skill development focused on diversity in the workplace. Amity students were encouraged to volunteer at numerous locations including the Connecticut Food Bank, shelters, and service agencies. ARHS sponsors clubs and activities designed to reduce racial, ethnic, and economic isolation. These clubs include: Israeli-American Club, Muslim-American Club, Asian Club, Chinese Club, Black Students Organization at Amity, Habitat for Humanity, World Language Honor Society, Italian-American Club, Southern Connecticut Conference Diversity League, and PLAHD. Each of these clubs sponsors numerous activities, events, and field trips. Amity students are among the top performers in the state on all standardized measures of student performance. The Adams Family garnered several nominations for Stephen Sondheim Awards including Best Actor, Best Actress, Best Supporting Actor, Best Costume Design, Best Director, and Best Choreographer. Amity won for the Best Musical in the state of Connecticut. Lastly, our athletic programs remain highly competitive and were recognized in 2017-2018 for 4 SCC Players of the Year, 1 Gatorade State Player of the Year and State Champions in Girls Softball. Amity was the recipient of the Michaels Achievement Cup for Overall Excellence in Athletics for the State of CT. Home and School Communication and Support The district is committed to ensuring the extension of student learning from school into the home. Each school has a very active Parent Teacher Student Organization (PTSO). The PTSO meets almost every month and greatly enhances the school by providing “welcome back” and “staff appreciation” lunches and special “PM coffees” for staff. The PSTO supports students and staff financially through various fundraisers. The PTSO also provides parents with special opportunities to hear about curriculum programs and provides special speakers on topics such as the school’s use of technology and internet safety. A monthly newsletter is published, posted on the school’s website, and an abbreviated edition is given to students. Parents from the PTSO are represented on the following school committees which help the planning and improvement of school programs: District Steering Committee for Curriculum and Instruction; Tools for Schools Committee; School Food Services Committee; the School Climate Committee, District Technology Committee, and the District Wellness Committee. ARHS and AMSB school websites contain a host of information which helps parents create a home environment that encourages and supports learning. Staff members communicate frequently with parents through email and telephone. PowerSchool, an internet-based student database system, allows parents to view their child’s class progress, standardized test scores, school attendance, discipline history, grades, class assignments, schedule, and current biographical information. Opportunities for individual parent and teacher conferences are held three times per year. An extensive “Back-To-School Night” is held each September for parents and guardians. The schools also utilize an email communication system where parents and students can

register to get weekly notices about special events or emergency information. This system is an effective two-way communication system that provides last minute reminders about the school’s programs and activities. Parents of students with special needs are invited to participate in PPT’s, 504 meetings, or Student Study Team meetings. In addition to these initiatives designed to provide venues for parent participation in the school improvement process, administration, faculty, and staff work diligently to ensure that parents are provided ongoing communications regarding student academic performance, and are provided the skills and direction necessary to support student learning in the home. A Parent University was held during 2017-18 year and was open to parents and the extended community. The parents and community members were invited to view the documentary Screenagers that focuses on screen usage by teens.

Respectfully submitted,

Jennifer P. Byars Ed.D. Superintendent

REPORT OF THE BETHANY LAND TRUST, INC.

The Bethany Land Trust, Inc., an all-volunteer, non-profit, IRS-recognized charitable corporation, protects the rural character, natural diversity, scenic natural lands and agricultural vitality of Bethany and the surrounding communities by preserving lands with significant conservation value for present and future generations. The land trust provides protection and preservation of approx. 547 acres of scenic natural lands, ranging in size from a half-acre parcel to a block of 186 acres. Trail maps for many of the Trust’s trails, and the Town’s airport trails, are available at town hall and on the Land Trust website at www.bethanylandtrust.org. Updates on our activities and items of conservation interest are posted on our Facebook page. The Land Trust celebrated its 50th year by closing on our first purchased property (the Grobe Preserve) with the assistance of state and federal funds and establishing a stewardship fund to see us into the next 50 years. Our trail team was very active but had the additional burden of coping with the devastating tornado impact. We held two well attended public educational programs on Ticks and Raptors. The Land Trust is funded almost exclusively by the generous contributions of concerned citizens. Donations to the land trust are deductible to the extent allowed by law. Anyone interested in further information about the Land Trust is invited to call Linda Francois at 203-393-1635, our address is PO Box 3706, Amity Station CT 06525. Inquiries are always welcome, volunteers are always appreciated.

Respectfully submitted,

Linda P. Francois

President

REPORT OF THE CLARK MEMORIAL LIBRARY

BETHANY LIBRARY ASSOCIATION

Public libraries are truly an American invention aimed at improving public life by providing resources for all levels of learning, offering recreational reading materials, serving as forums for civil discourse, and creating opportunities to engage the arts. In Connecticut there are 192 public libraries. While each one shares these goals, each library is different because it is organic to its own community. Bethany’s Clark Memorial Library enhances the well-being of our great town by actively building community life. Enhancing the quality of life was paramount to the founders of the Bethany Library Association. In 1930, Treat and Emma Johnson hosted a gathering of friends for a dinner. During the meal this group of Bethany residents formed the Bethany Library Association. Their mission was to create a public library that gave all town residents equal opportunity to delve into culture through reading and participation in the arts. Proudly, the Bethany Library Association keeps this commitment by nurturing a library that serves as a life-long learning resource, a portal for creativity, and a thriving community center for all ages. The Association consists of volunteer leaders who govern the Clark Memorial Library. They contribute their professional expertise and passion for Bethany to guarantee that the library engages, connects, and grows with a vibrant town. Thus, Bethany receives the full breadth of public library services. At Clark, artists exhibit and create art, writers hone their craft, musicians make music, and crafters create beauty. Children discover themselves by having an independent outlet for their curiosity and imagination. Life-long learning occurs in every nook and cranny of the library and beyond. Sometimes it is assisted by our Appy Hour Technology tutors. Sometimes it happens in activity groups or at our hosted programs. Truly this town library is a community centered library inspired by the aspirations of all in Bethany.

At any age, anyone who is a town resident may have a library card for free.

You and Clark, the places we will go!

Respectfully submitted,

Melissa Canham-Clyne, Library Director

WEST ROCK RIDGE

STATE PARK ADVISORY COUNCIL The Council was created by unanimous vote of the Connecticut General Assembly when West Rock Ridge State Park and an attendant Conservation Area were established in 1975. The Council serves as the official adviser to the Connecticut Department of Energy and Environmental Protection (DEEP) on matters relating to development, maintenance and protection of the Park as well as land acquisitions in the larger West Rock Ridge Conservation Area, within which the state is authorized to acquire land prior to public offering for inclusion in the Park. The Park is the second largest in the state being 1800 acres in area. Future land acquisitions of up to 300 acres would “complete” the Park. In a time of State budget cuts funding for additional acquisitions to the Park is challenging. The Council is also charged with ensuring that existing Park lands remain protected since there is no guarantee against future disposal by the State of any of its park or forest lands.

Clark Memorial Library highlights for the 2018 Fiscal Year

Bethany children helped to build a better world by creating their own dream houses out of recycled

goods. Each child wrote a story related to their project. The library combined the stories with photos of the houses to publish a book for each participant.

An anonymous donor sponsored our first full-day writing conference with workshops and networking opportunities for writers at all levels.

Our digital branch added a new service, Hoopla! Patrons can stream movies, television shows, music,

and audio books for free, anytime and from any screen.

Five new board members joined the Bethany Library Association, including two new youth members from Amity High School.

Successfully installed a new energy efficient HVAC system. So we are warm when it is cold and cool

when it is hot! Recognized by the American Library Association and the Gilder Lehrman Center with a grant to

promote programming related to the founding era of the United States.

Improved user’s experience and ability to order books from other libraries or place holds by moving to an integrated digital catalog.

We offered over 300 programs and activities, including a Senior Prom with a DJ.

Started twice-a-week delivery with other LION libraries to increase borrowing opportunities for

patrons.

Bethany is one of the four municipalities in which the seven-mile-long Park is located. The other municipalities are Hamden, Woodbridge and New Haven. The Park forms the majority of Bethany’s eastern border with Hamden. The 14 member Council has three representatives from each town and two at-large members appointed by the State. The DEEP State Parks Director serves as chair of the Council. In addition to providing open space and scenic vistas the majority of the Park has been identified by the State has having natural diversity habitat ~ i.e. it is home to a variety of plant, animal, amphibian and bird species found in limited areas of the State. The Park also serves to provide opportunities for hiking, picnicking, fishing, non-motorized boating, cross country skiing, snowshoeing, photography and nature study and is the site of the historic Judges Cave. Respectfully submitted, Barrie Tait Collins Steven Massey Kristine Sullivan

Quinnipiack Valley Health District The Mission of the Quinnipiack Valley Health District (QVHD) is to protect the residents of Bethany, Hamden, North Haven and Woodbridge, Connecticut from disease, injury, and environmental hazards through prevention, education, enforcement and collaboration. The Environmental Health Division

The goal of the Environmental Health Division is to protect our residents from environmental factors that may impact health and the quality of life. Some of the factors include, but are not limited to air, food and water contaminants, sewage, bugs, animals and hazards in the home. The Environmental staff consists of a Chief of Environmental Services and four Registered Sanitarians. Environmental health data for Bethany (FY 17-18) is as follows: 34 food service inspections for licensed establishments and conferred an additional 22 temporary licenses; 3 Certificates of Compliance for cosmetology following plan review and inspection; 2 daycare inspections in coordination with the State Office of Early Childhood; 14 complaint investigations with follow-up. Sewage activity data for FY 17-18 for Bethany is as follows: 15 soil tests; 1 new; 20 repairs; 34 B100a/addition; and 10 well permits. The Community Health Division The goal of QVHD’s Community Health Division is to increase the quality, availability, and assessment for effectiveness of population-based health prevention and policy. Programs/services are designed based on community needs and are designed to prevent disease, improve overall health, enhance the quality of life and provide credible resources for health information. The Community Health staff consists of a Public Health Promotion and Engagement Specialist and a grant supported part-time Public Health Program Assistant. QVHD staff collaborate with local, regional and state partners on a variety of initiatives, committees and coalitions on pertinent health issues, such as the dangers of opioids and emergency preparedness. Community partnership and collaboration is an important aspect of connecting with and knowing the needs of our population served.

Involvement in community events, such as health fairs and food drives are examples of ways QVHD staff connected with our residents over the year. At such events in Bethany, educational material was provided on the dangers of opioids, safe medication disposal, Naloxone (Narcan), physical activity, emergency preparedness, healthy eating and other health topics. QVHD staff work together to provide timely information on pertinent health issues to the public. QVHD utilizes social media and has an official Facebook and Twitter page for up-to-date information. Health alerts, seasonal health topics and health messages are all included. QVHD maintains a website and is always willing to consider your suggestions for topics to include. Residents that visit our office are greeted with informational display boards in our lobby. Voluntary Public Health Accreditation efforts are underway. The benefits of Public Health Accreditation include strengthening our community relationships, identifying and implementing improvement plans to better serve our residents, and applying for/securing future competitive funding opportunities. In February 2017, QVHD formed a Community Health Coalition, which completed and adopted a Community Health Assessment (CHA). The coalition is now developing a Community Health Improvement Plan (CHIP). The CHA and the CHIP can be viewed on our website. QVHD staff monitors, tracks and analyzes all reportable or unusual occurrences of diseases within our jurisdiction. Evidenced based control programs or measures are used to minimize the spread of infectious disease, illness and discomfort, and economic loss. Thirty-three reported diseases were monitored in Bethany residents during the 2018 fiscal year. These efforts most frequently involved surveillance, investigation, counseling, referral, and education. Emergencies that require staff to respond can happen at any time and without any notice. Therefore, QVHD staff work throughout the year to prepare, respond and recover from public health emergencies that can or do occur in our community. QVHD has a variety of emergency plans that are updated and revised as needed to ensure our staff is adequately prepared to respond when needed. QVHD also took on a hands-on approach to preparedness and participated in local and regional exercises and drills throughout the year. . QVHD has a team of both medical and non-medical volunteers called the Medical Reserve Corps (MRC). The mission of the MRC is to engage volunteers to strengthen public health, emergency response and community resiliency. QVHD MRC volunteers are prepared, trained and credentialed to respond to public health emergencies. Active recruitment is always taking place for volunteers for our MRC team, and anyone interested in joining can contact QVHD for more information. For more information on any of the above programs/services, residents can call 203-248-4528 or visit our website at www.qvhd.org. For suggestions on meetings, events or opportunities for QVHD to participant in, please contact: Ali Mulvihill at 203-2484528.

Respectfully submitted,

Alicia Mulvihill, Public Health Promotion and Engagement Specialist

TOWN OF BETHANY, CONNECTICUT

STATE SINGLE AUDIT REPORT

YEAR ENDED JUNE 30, 2018

TOWN OF BETHANY, CONNECTICUT STATE SINGLE AUDIT REPORT

TABLE OF CONTENTS

INDEPENDENT AUDITORS’ REPORTS: Page Independent Auditors’ 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 STATE SINGLE AUDIT Independent Auditors’ Report on Compliance for Each Major State Program; Report on Internal Control Over Compliance; Report on the Schedule of Expenditures of State Financial Assistance Required by the State Single Audit Act ..................................................................... 6

Schedule of Expenditures of State Financial Assistance .................................................................................. 9

Notes to the Schedule of Expenditures of State Financial Assistance ............................................................ 11

Schedule of Findings and Questioned Costs ................................................................................................... 12

Shelton 1000 Bridgeport Avenue, Suite 210 Shelton, Connecticut 06484 P: 203-925-9600

Killingworth 166 Route 81 Killingworth, Connecticut 06419 P: 860-663-0110

Principals John A. Accavallo CPA

Darin L. Offerdahl MBA CPA Kerry L. Emerson

Sandra M. Woodbridge CPA*

Dominic L. Cusano MBA CPA* *indicates retired

Guiding Successful People INDEPENDENT AUDITORS’ 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

To the Board of Finance Town of Bethany, Connecticut We have audited 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Bethany as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Town of Bethany's basic financial statements, and have issued our report thereon dated February 15, 2019.

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered Town of Bethany's 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 Town of Bethany's internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Bethany's 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs that we consider to be a material weakness as item 2018-001.

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Compliance and Other Matters As part of obtaining reasonable assurance about whether Town of Bethany's 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 noncompliance or other matters that are required to be reported under Government Auditing Standards.

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 result of that testing, and not to provide an opinion on the effectiveness of the Town of Bethany'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 Town of Bethany's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. MAWC, LLC Shelton, Connecticut February 15, 2019

STATE SINGLE AUDIT

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Shelton 1000 Bridgeport Avenue, Suite 210 Shelton, Connecticut 06484 P: 203-925-9600

Killingworth 166 Route 81 Killingworth, Connecticut 06419 P: 860-663-0110

Principals John A. Accavallo CPA

Darin L. Offerdahl MBA CPA Kerry L. Emerson

Sandra M. Woodbridge CPA*

Dominic L. Cusano MBA CPA* *indicates retired

Guiding Successful People

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR STATE PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; REPORT ON THE SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE REQUIRED BY THE STATE SINGLE

AUDIT ACT

To the Board of Finance Town of Bethany, Connecticut Report on Compliance for Each Major State Program We have audited Town of Bethany’s compliance with the types of compliance requirements described in the Office of Policy and Management’s Compliance Supplement that could have a direct and material effect on each of Town of Bethany’s major state programs for the year ended June 30, 2018. Town of Bethany’s major state programs are identified in the summary of auditors’ 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 state programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of Town of Bethany’s major state 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 the State Single Audit Act (C.G.S. Sections 4-230 to 4-236). Those standards and the State Single Audit Act 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 state program occurred. An audit includes examining, on a test basis, evidence about Town of Bethany’s 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 state program. However, our audit does not provide a legal determination of Town of Bethany’s compliance.

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Opinion on Each Major State Program In our opinion, the Town of Bethany, 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 state programs for the year ended June 30, 2018. Report on Internal Control over Compliance Management of the Town of Bethany, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Town of Bethany’s internal control over compliance with the types of requirements that could have a direct and material effect on each major state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major state program and to test and report on internal control over compliance in accordance with the State Single Audit Act, 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 Bethany’s 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 state 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 state 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 combination of deficiencies, in internal control over compliance with a type of compliance requirement of a state 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 the State Single Audit Act. Accordingly, this report is not suitable for any other purpose.

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Report on Schedule of Expenditures of State Financial Assistance Required by the State Single Audit Act We have audited the financial statements of the Town of Bethany, as of and for the year ended June 30, 2018 and have issued our report thereon dated February 15, 2019, 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 state financial assistance is presented for purposes of additional analysis as required by the State Single Audit Act 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 expenditures of state financial assistance is fairly stated in all material respects in relation to the financial statements as a whole. MAWC, LLC Shelton, Connecticut February 15, 2019

TOWN OF BETHANY, CONNECTICUT SCHEDULE OF EXPENDITURES OF

STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2018

See Notes to the Schedule of State Financial Assistance. - 9 -

State Program Pass-Through Grantor Program TitleState Grant Program Core-

CT NumberPass Though to Subrecipients Expenditures

Department of EducationOpen choice program 11000-SDE64370-17053 -$ 15,000$ Child nutrition statematching grant 11000-SDE64370-16211 - 1,080 Healthy foods initiative 11000-SDE64370-16212 - 2,055

- 18,135 Office of Policy and Management

Payment in lieu of taxes (PILOT) on State-owned property 11000-OPM20600-17004 - 5,368 Payment in lieu of taxes (PILOT) on private colleges and - general/chronic disease hospitals 11000-OPM20600-17006 - 8,585 Property tax relief on property of totally disabled persons 11000-OPM20600-17011 - 254 Property tax relief for veterans 11000-OPM20600-17024 - 6,568 Local capital improvement program (LOCIP) 12050-OPM20600-40254 - 89,126 Municipal grans-in-aid 12052-OPM-20600-43587 - 67,229

- 177,130 Department of Transportation

Town aid road grants transportation fund 12052-DOT57131-43455 - 211,024 Alcohol Open Container Requirements 12062-DOT57131-22091 - 18,038

- 229,062 Connecticut State Library

Historic Documents Preservation Grants 12060-CSL66094-35150 - 4,000

Department of JusticeJudicial fines and fees 34001-JUD95162-40001 - 1,840

Total State Financial Assistance before Exempt Programs - 430,167

EXEMPT PROGRAMS:

Department of EducationEducation Cost Sharing 11000-SDE64370-17041 - 1,742,788 Excess costs student based and equity 11000-SDE64370-17047 - 76,872

- 1,819,660 Department of Admnistrative Services

School construction grants - interest 13009-DAS27636-40896 - 982 School construction grants - principal 13010-DAS27635-40901 - 55,832

- 56,814

Office of Policy and ManagementMashantucket Pequot/Mohegan Fund 12009-OPM20600-17005 - 15,440 Municipal Stabilization Grant 11000-OPM20600-17104 - 6,916

- 22,356 Total Exempt programs - 1,898,830

Total State Financial Assistance -$ 2,328,997$

TOWN OF BETHANY, CONNECTICUT NOTES TO THE SCHEDULE OF EXPENDITURES

OF STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2018

See Notes to the Schedule of State Financial Assistance. - 10 -

Various departments and agencies of the State Government have provided financial assistance to the Town of Bethany, Connecticut through grants and other authorizations provided by General Statutes of the State of Connecticut. These financial assistance programs fund several programs including education, transportation, health and human services and general government activities. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting records of the State grant programs of the Town of Bethany, Connecticut are maintained in separate funds. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies relating to the aforementioned grant programs. Basis of Accounting The financial statements contained in the Town’s annual audit report are prepared on the modified accrual basis. The following is a summary of such basis: • Revenues are recognized when earned. Certain grants are recognized based on grant award since they are considered entitlement grants; other grants, which are dependent upon expenditure factors for determining eligibility, recognize grant revenue to the extent of expenditures. • Expenditures are recorded on the accrual basis; i.e. recognized when incurred. The Schedule of Expenditures of State Financial Assistance, contained in this report, is prepared based on regulations established by the State of Connecticut Office of Policy and Management. In accordance with these regulations (Section 4-236-22), certain grants are not dependent on expenditure activity, and accordingly, are considered to be expended in the fiscal year of receipt. These grant program receipts are reflected in the expenditures column of the Schedule of Expenditures of State Financial Assistance.

TOWN OF BETHANY, CONNECTICUT SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2018

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I. SUMMARY OF AUDITORS’ RESULTS Financial Statements Type of auditors’ report issued: Unmodified Internal control over financial reporting:

• Material weakness (es) identified? X Yes No • Significant Deficiencies identified? Yes X None reported • Noncompliance material to financial statements noted? Yes X No

State Financial Assistance Internal control over major programs:

• Material weakness(es) identified? Yes X No • Significant deficiencies identified? Yes X None reported

Type of auditors’ report issued on compliance for major programs: Unmodified Any audit findings disclosed that are Required to be reported in accordance with Section 4-236-24 of the Regulations to the State Single Audit Act? Yes X No The following schedule reflects the major programs included in the audit:

Identification Number Expenditures

Office of Policy and ManagementLocal capital improvement program (LOCIP) 12050-OPM20600-40254 89,126$

Department of Transportation Town aid road grants transportation fund 12052-DOT57131-43455 211,024$

Total 300,150$

And Program State Grantor

• Dollar threshold used to distinguish between Type A and Type B programs $ 100,000

TOWN OF BETHANY, CONNECTICUT SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2018

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II. FINANCIAL STATEMENTS FINDINGS • We issued reports, dated February 15, 2019, on compliance and on internal control over financial reporting based

on an audit of financial statements performed in accordance with Government Auditing Standards. • Our report on compliance indicated no reportable instances of noncompliance. • Our report on internal control over financial reporting indicated a material weakness as follows:

2018-001 Timely and Accurate Financial Reporting Criteria – Regular analysis and reconciliations of all balance sheet and other key accounts help ensure accurate and timely financial reporting. This is required to assist management in making appropriate decisions based on reliable data and is essential for internal control. Condition – The Town’s financial reporting by fund was materially misstated throughout the year.

General Fund and other Governmental Funds – We noted several reconciliation discrepancies and requested from the Town that they reconcile several general ledger accounts including cash, grants receivable, accounts payable, deferred revenue, interfund balances and fund balances. After multiple requests for a reconciled and balanced general fund trial balance for the general fund we received a balanced trial balance and general ledger on January 25, 2019 for the year ended June 30, 2018. Even with this balanced trial balance we proposed significant journal entries to bring the accounting records to the modified accrual basis of accounting due to: • Interfund balance were not reported appropriately • Board of Education cash, accounts payable and expenditure accounts were not reconciled to the Town’s

ledger Effect – The financial reporting was materially misstated during the year and at year end. This effects internal control, management decisions, compliance with budgets, collection of receivables and payments of payables. In addition, a significant amount of time was required, over and above the usual audit, to deal with the matters noted above in the Condition section to arrive at completed trial balances. Cause – The Town did not maintain a full general ledger with self-balancing accounts during the year. Only the expenditures were recorded. The prior year’s audit adjustments were not posted. Most of the beginning balances in the balance sheet were not in agreement with the prior year’s audited financials. Monthly balance sheet account reconciliations were not performed. Bank accounts were not properly reconciled. Recommendation –Ending prior year asset, liability, deferred inflows/outflows, and fund balances must serve as the starting point for the new fiscal year, meaning all adjustments must be posted to all Town funds general ledgers. Any resulting variances must be resolved promptly. Supporting schedules for reported balances should be available and not have to be obtained from external sources. All accounts should be adjusted, where needed as part of the year-end closing process and prior to the audit.

III. STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS

No findings or questioned costs are reported relating to State Financial Assistance Programs.

TOWN OF BETHANY, CONNECTICUT

AUDITED FINANCIAL STATEMENTS AND

REQUIRED AND OTHER SUPPLEMENTRY INFORMATION

YEAR ENDED JUNE 30, 2018

TOWN OF BETHANY TABLE OF CONTENTS

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Independent Auditors’ Report ................................................................................................................... 4 Management’s Discussion and Analysis (Unaudited) ............................................................................... 8

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements: Statement of Net Position ................................................................................................................. 20 Statement of Activities ...................................................................................................................... 21

Fund Financial Statements: Governmental Funds – Balance Sheet .............................................................................................. 22 Governmental Funds – Statement of Revenues, Expenditures, and

Changes in Fund Balances.......................................................................................................... 23 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities....................................... 24

Fiduciary Funds – Statement of Fiduciary Net Position ................................................................... 25 Fiduciary Funds – Statement of Changes in Fiduciary Net Position ................................................ 26 General Fund – Statement of Revenues, Expenditures, and Changes in

Fund Balance – Budgetary Basis – Budget and Actual .............................................................. 27

Notes to Financial Statements ................................................................................................................. 28

REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)

Connecticut Municipal Employees Retirement System: Schedule of the Town’s Proportionate Share of the Net Pension Liability ....................................... 61 Schedule of Town Contributions ...................................................................................................... 62

Connecticut State Teachers’ Retirement System: Schedule of the Town’s Proportionate Share of the Net Pension Liability ....................................... 63

Recruitment and Retention Plan – Town of Bethany Volunteer Fire Association Schedule of Changes in Net Pension Liability and Related Ratios ................................................... 64 Schedule of Contributions ................................................................................................................. 65

SUPPLEMENTAL STATEMENTS AND SCHEDULES

General Fund: Schedule of Revenues – Budget and Actual ..................................................................................... 67 Schedule of Expenditures – Budget and Actual ................................................................................ 68

Nonmajor Governmental Funds: Nonmajor Governmental Funds – Combining Balance Sheet .......................................................... 70 Nonmajor Governmental Funds – Combining Statement of Revenues,

Expenditures, and Changes in Fund Balances .............................................................................. 71 Special Revenue Funds – Combining Balance Sheet ......................................................... 72

Special Revenue Funds – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................................................... 73

Capital Project Funds – Combining Balance Sheet .......................................................................... 74

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Capital Project Funds – Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................................................................................... 75

Other Schedules: Agency Funds – Combining Statement of Changes in Assets and Liabilities .................................. 76 Capital Reserve Fund – Schedule of Changes in Fund Balance by Project ...................................... 77 Statement of Debt Limitation ........................................................................................................... 78 Report of the Tax Collector .............................................................................................................. 79

American Institute of Certified Public Accountants Connecticut Society of Certified Public Accountants

Shelton 1000 Bridgeport Avenue, Suite 210 Shelton, Connecticut 06484 P: 203-925-9600

Bethany 166 Route 81 Bethany, Connecticut 06419 P: 860-663-0110

Principals John A. Accavallo CPA

Darin L. Offerdahl MBA CPA Kerry L. Emerson

Sandra M. Woodbridge CPA*

Dominic L. Cusano MBA CPA* *indicates retired

Guiding Successful People

INDEPENDENT AUDITORS’ REPORT The Board of Finance Town of Bethany, Connecticut

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Bethany, Connecticut, as of and for the year ended June 30, 2018, 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 Town’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 Town’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.

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Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Bethany, Connecticut, as of June 30, 2018, the respective changes in financial position and the respective budgetary comparison for the general fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis information on pages 8 through 16 and the required supplementary information on pages 59 through 63 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’s basic financial statements. The General Fund budgetary comparison detail, combining and individual nonmajor fund financial statements, and other schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The General Fund budgetary comparison detail, combining and individual nonmajor fund financial statements, and other schedules 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 General Fund budgetary comparison detail, combining and individual nonmajor fund financial statements, and other schedules are fairly stated in all material respects in relation to the basic financial statements as a whole.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 15, 2019, on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 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’s internal control over financial reporting and compliance. MAWC, LLC Shelton, Connecticut February 15, 2019

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TOWN OF BETHANY, CONNECTICUT

Management’s Discussion and Analysis June 30, 2018

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

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Our discussion and analysis of the Town of Bethany, Connecticut’s financial performance provides an overview and analysis of the Town's financial activities for the fiscal year ended June 30, 2018. We encourage readers to consider the information presented here in conjunction with the Town's financial statements.

FINANCIAL HIGHLIGHTS

• The assets of the Town exceeded its liabilities at the close of the most recent year by $27,403,132 (net position). Of this amount, $5,679,672 (unrestricted net position) may be used to meet the Town's ongoing obligations to citizens and creditors.

• Revenues for the Town’s governmental activities increased .53% over the prior year to $25,897,584, while total expenses increased 2.38% to $24,973,384. The resulting increase in net position is $924,200 for 2018 as compared to an increase of $1,450,387 for 2017.

• As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $7,036,571, an increase of $1,475,673 from the prior year. Approximately 62% of the total fund balance, $4,382,859, constitutes Unassigned Fund Balance, which is available for spending at the Town's discretion.

• As of the end of the current fiscal year, Unassigned Fund Balance of the General Fund was $4,382,859, or 17.75% of total General Fund expenditures and transfers out of $24,697,012. The Board of Finance has adopted a policy of maintaining a General Fund surplus of not less than 10% and not more than 14% of budgeted expenditures.

• The total General Fund balance increased by $698,977 during the current fiscal year, from $4,091,002 to $4,789,979.

• The Town’s investment in capital assets for the current fiscal year was $1,870,725. After accounting for $1,585,377 of depreciation expense, net capital assets decreased by $285,348 to $27,671,797.

• During the fiscal year ended June 30, 2018, the Town made $515,000 of scheduled bond principal payments. At the end of the current fiscal year, the Town had $2,650,000 of long-term bonded debt outstanding.

USING THIS ANNUAL REPORT

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the Town as a whole and present a longer-term view of the Town’s finances. Fund financial statements, for governmental activities, tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the Town’s operations in more detail than the government-wide statements by providing information about the Town’s most significant funds. The remaining statements provide financial

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 9 -

information about activities for which the Town acts solely as a trustee or agent for the benefit of those outside of the Town.

Reporting the Town as a Whole

One of the most important questions asked about the Town’s finances is, “Is the Town as a whole better off or worse off as a result of the year’s activities?” The Statement of Net Position and the Statement of Activities report information about the Town as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

These two statements report the Town’s net position and changes to net position. You can think of the Town’s net position – the difference between assets and liabilities – as one way to measure the Town’s financial health, or financial position. Over time, increases or decreases in the Town’s net position are one indicator of whether its financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however, such as changes in the Town’s property tax base and the condition of the Town’s roads, to assess its overall health.

The Statement of Net Position and the Statement of Activities show the Town’s governmental activities. The Town’s basic services are reported here, including education, public works, and general administration. Property taxes, state and federal grants, and local revenues such as fees and licenses finance most of these activities.

REPORTING THE TOWN’S MOST SIGNIFICANT FUNDS

Our analysis of the Town’s major funds begins in the section titled “Governmental Funds”. The fund financial statements provide detailed information about the most significant funds – not the Town as a whole. Some funds are required to be established by State law and by bond covenants. However, the Board of Finance establishes many other funds to help it control and manage money for particular purposes, or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money.

Governmental Funds – The Town’s basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end that are available for spending. These funds are reported using an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the Town’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the Town’s programs. We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds in a reconciliation at the bottom of the fund financial statements.

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 10 -

THE TOWN AS TRUSTEE

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. These funds do not belong to the Town. The Town’s fiduciary activities are reported in separate Statements of Fiduciary Net Position. We exclude these activities from the Town’s other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

THE TOWN AS A WHOLE

The Town’s combined net position increased by $924,200 from a year ago – increasing from $26,478,932 to $27,403,132. Our analysis below focuses on the net position and changes in net position of the Town.

Statement of Net Position

Assets 2018 Dollars Percent 2017Current and other assets 7,610,080$ 983,505$ 15% 6,626,575$ Capital assets 27,671,797 285,348 1% 27,386,449

Total assets 35,281,877 1,268,853 16% 34,013,024

Deferred outflows of resources 68,681 (55,650) -45% 124,331

LiabiltiesLong-term debt outstanding 7,498,215 676,196 10% 6,822,019 Other liabilities 436,036 (400,368) -48% 836,404

Total liabilities 7,934,251 275,828 4% 7,658,423

Deferred inflows of resources 13,175 13,175 100% -

Net Position Invested in capital assets 21,723,460 (207,992) -0.9% 21,931,452 Unrestricted 5,679,672 1,132,192 24.9% 4,547,480

Total net position 27,403,132$ 924,200$ 24% 26,478,932$

Change During Year

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 11 -

By far, the largest portion of the Town’s net position, $21,723,460 or 79.3%, reflects its investment in capital assets (e.g., land, construction in progress, buildings, machinery and equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

During the year, additions to the Town’s capital assets were $1,870,725 and depreciation was $1,585,377. Long-term debt related to capital assets increased by $604,789. The amount invested in capital assets, net of related debt, decreased by $207,992.

Unrestricted net position – the part of net position that can be used to finance day-to-day operations – increased by $1,132,192, as compared to a decrease of $1,369,621 in 2017.

Changes in Net Position

2018 Dollars Percent 2017Revenues

Program revenues: Charges for services 754,893$ 111,964$ 17.41% 642,929$ Operating grants and contributions 3,670,209 (406,459) -9.97% 4,076,668

Capital grants and contributions 56,814 (208,867) -78.62% 265,681 General revenues:

Property taxes 20,506,302 628,752 3.16% 19,877,550 Grants and contributions 807,976 162,253 25.13% 645,723 Interest and investment earnings 24,096 (1,876) -7.22% 25,972

Other 77,294 (150,227) -66.03% 227,521 Total revenues 25,897,584 135,540 0.53% 25,762,044

ExpensesGeneral Government 1,347,299 (68,112) -4.81% 1,415,411 Public safety 1,076,477 32,298 3.09% 1,044,179 Highways and public works 2,106,814 171,487 8.86% 1,935,327 Health and human services 743,142 25,175 3.51% 717,967 Community servies 399,591 135,192 51.13% 264,399 Insurance and benefits 1,005,612 102,920 11.40% 902,692 Education 18,000,189 51,308 0.29% 17,948,881 Interest on long-term debt 71,692 (11,109) -13.42% 82,801 Capital Outlay 222,568 222,568 100.00% -

Total expenses 24,973,384 439,159 1.81% 24,311,657

Increase(decrease) in net position 924,200$ (303,619)$ -20.93% 1,450,387$

Change During Year

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 12 -

Revenues for the Town’s governmental activities increased .53% over the prior year to $25,897,584, while total expenses increased 2.38% to $24,973,384. The resulting increase in net position is $924,200 for 2018 as compared to an increase of $1,450,387 for 2017.

Property tax revenue increased by $628,752, or 3.16%, over the prior year. This is consistent with the 2.62% increase in the mil rate from 36.9 to 35.96, and a 2.87% increase in the grand list. The Tax Collector collected 98.76% of the current grand list assessment as compared to 99.21% in fiscal year 2017.

Educational Grant ECS-were $1,742,788 in 2018 as compared to $2,007,493 in 2017. Municipal revenue sharing income was $181,588 in 2018 as compared to $74,145 in 2017. These two factors contributed to the decrease in operating grants.

In 2017, the Town received 282,073 in Small Town Economic Assistance Program (STEAP) funds. This grant was not received in 2018 contributing to the decrease of capital grants in 2018.

Other general revenues for 2018 include an overpayment refund from Amity Regional School District #5 in the amount of $370,801 as compared to $195,323 in 2017.

Governmental Activities The table below presents the cost of each of the Town’s programs, as well as each program’s net cost (total cost less revenues generated by the activities). Net cost shows the burden that was placed on the Town’s taxpayers by each of the functions.

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 13 -

Governmental Type Activities

Increase % of Increase % of2018 2017 Decrease Change 2018 2017 Decrease Change

Governmental Activities General government 1,347,299$ 1,415,411$ (68,112)$ -4.81% 1,033,021$ 1,196,610$ (163,589)$ -13.67%Public safety 1,076,477 1,044,179 32,298 3.09% 888,214 816,788 71,426 8.74%Highways and public works 2,106,814 1,935,327 171,487 8.86% 1,806,664 1,724,266 82,398 4.78%Health and human services 743,142 717,967 25,175 3.51% 712,333 608,795 103,538 17.01%Community services 399,591 264,399 135,192 51.13% 219,656 (5,282) 224,938 -4258.58%Insurance and benefits 1,005,612 902,692 102,920 11.40% 1,005,612 902,692 102,920 11.40%Education 18,000,189 17,948,881 51,308 0.29% 14,588,522 13,999,709 588,813 4.21%Interest on long-term debt 71,692 82,801 (11,109) -13.42% 71,692 82,801 (11,109) -13.42%Capital Outlay 222,568 - 222,568 0.00% 165,754 - 165,754 0.00%

Totals 24,750,816$ 24,311,657$ 439,159$ 1.81% 20,325,714$ 19,326,379$ 999,335$ 5.17%

Total Cost of Services Net Cost of Services

Total cost of services for the Town’s governmental activities was $24,891,471, an increase of 2.38% over the prior year. Net cost of services was $20,466,369, an increase of 5.9%.

The total cost of providing education was $18,000,189 in 2018, an increase of .29%. The net cost was 14,588,522, an increase of 4.21%.

The Regional High School gross budget increased 1.26% from $47,835,699 to $48,439,163. The Town's proportionate share (based on the average daily membership) decreased from 20.819% to 19.68%. Bethany’s share of the Amity Region # 5 School District budget decreased 0.61% from $9,437,981 to $9,495,632. In 2018, the Regional High School refunded $370,801 of unexpended funds from the prior fiscal year as compared to $154,280 in 2017.

Elementary School budgeted expenditures remained unchanged at $6,654,933 in 2018 vs $6,530,538 in 2017 or a .9% increase.

The net cost of highway and public works increased 12.94% over the prior year primarily due to an increase in expenditures in the road improvements and snow removal and costs related to the tornado of approximately $140,000.

The net cost of community services increased by $224,938 due to the recognition of a capital grant in the amount of $265,681 in 2017 from the Department of Social Services for the Hangar Restoration Project at the Bethany Airport property which is being renovated to serve as a community center and emergency shelter that was not received in fiscal year 2018. The expenditures of the project are reported as capital assets, and as such, will not be included in the total cost of services until depreciation expense is recognized. The General Fund is the chief operating fund of the Town. At the end of the current fiscal year unassigned fund balance of the general fund was $4,382,859. As a measure of liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total general fund expenditures and transfers out.

Total fund balance for the general fund represents 17.75% of total general fund expenditures and transfers out.

The fund balance of the Town’s general fund increased by $698,977 during the current fiscal year.

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 14 -

The capital projects funds, a major fund, had a $608,827 increase in fund balance during the current fiscal year, while the other governmental funds had an increase of $167,869. GOVERNMENTAL FUNDS

The focus of the Town’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

Fund equity for governmental funds is called Fund Balance and is reported in classifications that comprise a hierarchy based primarily 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 provisions of GASB No. 54-Fund Balance Reporting and Governmental Fund Type Definitions – provides clearer fund balance classifications that can be more consistently applied.

• Nonspendable Fund Balance – Includes amounts that cannot be spent because they are either not in spendable form (e.g. inventory), or are legally or contractually required to be maintained intact.

• Restricted Fund Balance – Includes amounts that have constraints placed on the use of resources that are either externally imposed by creditors, grantors, contributors, laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.

• Committed Fund Balance – Includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action at a Town Meeting, and cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action it employed to previously commit those amounts.

• Assigned Fund Balance – Includes amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed.

• Unassigned Fund Balance – The residual classification for the General Fund 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.

As of the end of the current fiscal year, the Town's governmental funds reported combined ending fund balances of $7,036,571, an increase of $1,475,673 from the prior year. Approximately 62% of the total fund balance, $4,382,859, constitutes unassigned fund balance, which is available for spending at the Town's discretion.

Assigned fund balance of $1,259,518, is comprised of Special Revenue funds and Capital Project funds that are constrained by the Town for the purpose the funds were created.

Committed fund balance of $1,363,150 is reported in the Capital Reserve Fund and represents resources available to finance capital assets approved at Town Meeting. Details of this fund balance may be found in the Capital Reserve Fund - Schedule of Changes in Fund Balance by Project, in the Other Schedules section of the Financial Statements.

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 15 -

Restricted fund balance of $108,579 is comprised of unexpended grant funds. Nonspendable fund balance of $64,705 consists of inventories and prepaid expenditures.

The General Fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the General Fund was $4,382,859.

Total General Fund balance increased by $698,977 during the current fiscal year, from $4,091,002 to $4,789,979. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned Fund Balance represents 17.75% and total Fund Balance represents 19.39% of total General Fund expenditures and transfers out of $24,697,012. The Town has adopted a policy to maintain the unassigned fund balance for its General Fund at not less than 10% of total budgeted operating expenditures and not more than 14%.

GENERAL FUND BUDGETARY HIGHLIGHTS

Over the course of the year, the Board of Finance can revise the Town budget with additional appropriations and budget transfers. Additional appropriations increase the total budget. The Board of Finance is allowed by Connecticut State Statute to make one additional appropriation up to $20,000 per line item or department. A second additional appropriation, or an appropriation over $20,000, requires a Town Meeting. Transfers do not increase the total budget, but instead pull appropriations from one department that needs additional funding from other departments that might have excess funding.

Connecticut State Statutes allow these transfers to be made by the Board of Finance without a Town Meeting. Below is a summarized view of the final budget and actual results for the General Fund.

General Fund - Budget Summary

Revenues: Final Budget Actual Variance

Property taxes 20,796,684$ 20,501,304$ (295,380)$ Intergovernmental 1,386,387 2,225,839 839,452 Local 105,000 145,830 40,830 Other 383,939 377,321 (6,618) Interest earnings 567,400 857,698 290,298

23,239,410$ 24,107,992$ 868,582$

Expenditures Final Budget Actual Variance General government 7,088,845$ 6,891,556$ (197,289)$ Regional Highschool 9,495,632 9,341,182 (154,450) Elementary Highschool 6,654,933 6,586,521 (68,412)

23,239,410 22,819,259 (420,151)

Increase (decrease) in fund balance -$ 1,288,733$ 1,288,733$

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 16 -

The original 2017-2018 budget contemplated total revenues and expenditures in the amount of $23,239,410.

Actual total revenues exceeded the original budget by $868,582 and actual total expenditures were $279,496 less than the original budget.

Significant variances between actual revenues and expenditures of the general fund for fiscal 2018 and the amount reflected in the Town’s final budget are summarized as follows:

• The total revenue recognized on current property tax collections, prior year tax collections, and interest and lien fees were less than the budgeted amounts by a total of $295,380.

• Educational-ECS funds of $1,742,788 during the current fiscal year $1,742,788 against a budgeted amount of $810,951 causing a favorable variance of $931,837.

• Other revenues include $370,801 of unexpended funds refunded by the Regional High School from the 2017 fiscal year that was not anticipated in the budget.

• Less than anticipated municipal revenue sharing were received against the budget amounts causing a variance of $189,150 during the fiscal year.

• Tax refunds of $138,213 were more than budgeted during 2018.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The Town’s investment in capital assets for its governmental assets includes land, buildings and systems, improvements, machinery and equipment, park facilities, roads, highways and bridges. The Town’s investment in capital assets for the current fiscal year was $1,870,725. After accounting for $1,585,377 depreciation, net capital assets decreased by $285,348 to $27,671,797. The amount invested in capital assets net of related debt as reported in the Statement of Net Position was $21,074,150, an $207,992 decrease from the previous year.

Capital asset additions during the current fiscal year included the following:

• $61,330 construction in progress for the removal and replacement of the original building roof at the Bethany Community School (total appropriation of up to $1,260,000).

• $999,211 construction in progress for the Bethany Volunteer Fire Department communications system.

• $649,310 for infrastructure for road reconstruction and resurfacing

TOWN OF BETHANY, CONNECTICUT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2018

- 17 -

LONG-TERM OBLIGATIONS

During the fiscal year ended June 30, 2018, the Town made $515,000 of scheduled bond principal payments. At the end of the current fiscal year, the Town had $2,650,000 of long-term bonded debt outstanding. The Town's general obligation bond rating continues to carry an Aa2 rating from Moody’s Investors Service, Inc. (last reviewed October 2017).

As a member town of Amity Regional School District #5, the Town is responsible for a pro-rata share of the district’s net debt based on a formula that utilizes the average daily membership (ADM) of each town as of October 1 of the preceding year. For fiscal year 2018, the Town's ADM percentage was calculated to be 18.96%, and its share of net district debt amounts to $6,862,185.

Connecticut State Statutes limit the amount of general obligation debt a government entity may issue to seven times its tax collections plus interest and lien fees. For June 30, 2018, the maximum amount of borrowing permitted under the formula would be $142,742,789. With net borrowings of $11,919,765, the Town’s outstanding general obligation debt is well below the maximum debt limitation.

During 2018, scheduled principal payments on all capital leases were made in the amount of $44,243. At June 30, 2018 there were no capital leases.

During the year ended June 30, 2018, the Town issued $3,240,000 of bond anticipation notes for the purchase of a new fire truck, the construction of a road salt storage facility, and the Bethany Community School roof project. Subsequent to year end, the Town issued $3,230,000 of bond anticipation notes to finance the Bethany Volunteer Fire Department communications system project and to refinance the $3,240,000 notes.

The Government Other Post-Employment Benefits (OPEB) Plan is described in Note 10 to the financial statements. Actuarial information, including assumptions and methods, are disclosed in detail. At June 30, 2018, the Government’s OPEB obligation is $800,192 and is reported as a long-term liability in the Statement of Net Position.

More detailed information about the Town's long-term obligations is presented in Note 7 to the financial statements.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

The Town's elected and appointed officials considered many factors when setting the fiscal year 2018 budget and tax rates. One of those factors is the economy. The unemployment rate for the Town was 3.9% as of June 30, 2018, which is a decrease from a rate of 4.1% twelve months ago. This compares favorably to the state’s average unemployment rate of 3.9% and the national average rate of 4.1% (not seasonally adjusted). Inflationary trends in the region compare favorably to the national indices.

Overall, the Town's budget increased $229,537 (1.0%) between fiscal year 2018 and fiscal year 2019 from $23,239,410 to $23,468,947, as follows:

- 18 -

Budget FY 2018-2019 FY 2017-2018 $ Change %Change

General Government 7,327,648$ 7,088,845$ 238,803$ 3.4%Amity Regional School District #5 9,357,454 9,495,632 (138,178) -1.5%Elementary School 6,783,845 6,654,933 128,912 1.9%

Total 23,468,947$ 23,239,410$ 229,537$ 1.0% The total fiscal year 2018 budget of Amity Regional School District #5 increased 1.26% from $48,439,163 to $49,345,625. The Town of Bethany’s share based on the average daily membership (ADM), decreased from 19.68% FY 2017-2018 to 18.96% FY 2018-2019.

The tax levy for fiscal year 2019 increased budgeted revenue $13,792 (.07%) from $20,796,684 to $20,782,892. The net taxable grand list increased .72% and the mil rate increased 2.61% from 35.96 to 36.90.

Except as noted below, municipal revenue and expenditure changes from the fiscal 2018 budget were modest adjustments.

Revenues

• $368,873 decrease in Education Cost Sharing in anticipation of a reduction due to the State of Connecticut’s fiscal crisis;

• $80,000 decrease in municipal revenue sharing and $71,000 in school building grant in 2018-2019

budget; • $283,592 decrease in 2018-2019 budgeted Local Capital Improvement (LOCIP) grant

Expenditures

• An increase of $60,000 in Highway and Public works contracted services for extensive drainage work;

• A decrease of approximately $200,000 in the regional high school budget

• An increase of approximately $129,000 in the elementary educational budget

CONTACTING THE TOWN’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town's finances and to show the Town's accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the Board of Finance at Bethany Town Hall, 40 Peck Road, Bethany, Connecticut 06524.

Town of Bethany, Connecticut

Basic Financial Statements

June 30, 2018

TOWN OF BETHANY

STATEMENT OF NET POSITION JUNE 30, 2018

The notes to financial statements are an integral part of this statement. - 20 -

ASSETS Cash and equivalents 5,314,988$ Investments 1,620,973 Due from other funds 210,698 Receivables:

Taxes, net of allowance 145,892 Accounts 61,035 Loans 89,988 Interest 484 Intergovernmental 102,902

Prepaid expenses 24,132 Inventories 38,988 Capital assets:

Capital assets, not being depreciated 8,406,096 Capital assets. Net of the accumulated depreciation 19,265,701

Total assets 35,281,877$

DEFERRED OUT FLOWS OF RESOURCESPension related - deferred outflows 27,828 Pension controbutions subsequent to measurement date 40,853

Total deferred outflows of resources 68,681$

LIABILITIES Accounts payable 327,559$ Accrued expenses 65,167 Unearned revenue 43,310 Noncurrent liabilities

Due within one year 3,816,089 Due in more than one year 3,682,126

Total liabilities 7,934,251$

DEFERRED INFLOWS OF RESOURCESPension related deferred intflows 13,175$

NET POSITIONNet investment in capital assets 21,723,460$ Unrestricted 5,679,672

Total net position 27,403,132$

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TOWN OF BETHANY, CONNECTICUT

BALANCE SHEET GOVERNMENTAL FUNDS

JUNE 30, 2018

The notes to financial statements are an integral part of this statement. - 22 -

General Fund Capital

Reserve Fund Nonmajor

Funds Total Assets

Cash and equivalents 4,460,924$ 317,391$ 536,673$ 5,314,988$ Investments 1,620,973 - - 1,620,973 Receivables:

Taxes, net of allowance of $72,685 145,892 - - 145,892 Accounts 61,035 - - 61,035 Loans - - 89,988 89,988 Interest 484 - 484 Intergovernmental 98,244 - 4,658 102,902

Due from other funds 218,503 1,241,957 173,835 1,634,295 Prepaid expenses 24,132 - - 24,132 Inventories 36,761 - 2,227 38,988 Total assets 6,666,948$ 1,559,348$ 807,381$ 9,033,677$ Liabilities Accounts payable 322,421$ -$ 5,141$ 327,562$

Accrued expenses 29,705 - - 29,705 Due to other funds 1,416,307 - 6,169 1,422,476 Unearned revenue 25,592 - 17,512 43,104 Total liabilities 1,794,025 - 28,822 1,822,847

Deferred Inflows of ResourcesUnavailable revenue- taxes 82,944 - - 82,944 Unavailable revenue- long-term loans receivable - - 91,315 91,315 Total liabilities deferred inflows of resources 82,944 - 91,315 174,259

Fund Balances Nonspendable 60,893 - 2,227 63,120 Restricted 3,300 - 105,279 108,579 Committed - 1,363,150 - 1,363,150 Assigned 342,927 336,853 579,738 1,259,518 Unassigned 4,382,859 (140,655) - 4,242,204 Total fund balances 4,789,979 1,559,348 687,244 7,036,571 Total liabilities, deferred inflows of resources,

and fund balances 6,666,948$ 1,559,348$ 807,381$ Amounts reported in the Statement of Net Position are different because:Capital assets used in governmental activities are not financial resources and, therefore, are

not reported in the funds 27,671,797 Taxes and long-term assets are not available to pay for current period expenditures and, therefore,

are deferred in the funds. 172,932 Long-term liabilities, including bonds payable, are not due and payable in the current period and,

therefore, are not reported in the funds: Bonds, loans, and capital lease obligations (6,059,786) Pension,OPEB. and compensated absences (1,438,429) Accrued interest payable (35,462) Net deferred outflows of resource 55,509 Net position 27,403,132$

TOWN OF BETHANY, CONNECTICUT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES GOVERNMENTAL FUNDS

YEAR ENDED JUNE 30, 2018

The notes to financial statements are an integral part of this statement. - 23 -

General Fund Capital

Reserve Fund Nonmajor

Funds Total REVENUES: Property taxes 20,501,304$ -$ -$ 20,501,304$ Intergovernmental 3,513,836 - 289,766 3,803,602

Local 377,321 - 264,680 642,001 Other 857,698 - 30,105 887,803 Interest earnings 145,830 4,343 4,502 154,675

Total revenues 25,395,989 4,343 589,053 25,989,385

EXPENDITURESCurrent General government 1,240,021 46,630 1,986 1,288,637 Public safety 737,910 - 149,640 887,550

Public Works 2,106,813 - 365,758 2,472,571 Health 632,685 - - 632,685 Human services 84,431 - - 84,431

Community services 443,834 12,000 - 455,834 Insurance and benefits 933,291 - - 933,291 Education 17,215,700 46,845 - 17,262,545 Debt service 333,559 46,512 - 380,071 Capital outlay - 1,288,196 3,800 1,291,996 Total expenditures 23,728,244 1,440,183 521,184 25,689,611

Excess of revenues over 1,667,745 (1,435,840) 67,869 299,774 (under) expenditures

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt 3,240,000 - - 3,240,000 Payments to escrow agent (2,064,101) - - (2,064,101) Transfers in (out) (2,144,667) 2,044,667 100,000 -

Total other financing sources (uses) (968,768) 2,044,667 100,000 1,175,899

Net change in fund balance 698,977 608,827 167,869 1,475,673

Fund balances - beginning of year 4,091,002 950,521 519,375 5,560,898 Fund balances - end of year 4,789,979$ 1,559,348$ 687,244$ 7,036,571$

TOWN OF BETHANY, CONNECTICUT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2018

The notes to financial statements are an integral part of this statement. - 24 -

Amounts Reported for Governmental Activities in the Statement of Activities are Different Because

Net Change in Fund Balances - Total Governmental Funds 1,475,673$

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. This is the amount by which capital outlay exceeded depreciation expense in the current period. Capital outlay 1,870,725 Depreciation expense (1,585,377)

285,348

The issuamce of long-term debt provides current financial resources to governmental funds,while the repayment of the principle of long-term debt consumes the current financial resourcesof governmental funds. Neither transaction, however, has any effect on net position. Also,governmental funds report the effect of premiums, discounts, and similar items when debtis first issued, whereas these amounts are deferred and amortized in the Statement of Activities. The details of these differences in the treatment of long-term debt and related itemsare as follows:Debt issued or incurred:

Issuance of debt (3,240,000) Principal repayments:

General obligation bonds 515,000 Repayment of notes 2,045,000 Capital lease payments 44,243 Loan payments 24,996 Premium on bonds 5,972

(604,789)$

Some revenues and expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as revenues and expenditures in governmental funds:Revenues:

Taxes, interest and liens (91,803) Change in deferred outflows related to pension contributions (68,823)

Expenses:Pension-Firemen (72,321) Pension-CMERS 49,171 OPEB (42,434) Compesated absences (5,822)

(232,032) Change in Net Position 924,200$

TOWN OF BETHANY, CONNECTICUT STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS JUNE 30, 2018

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

- 25 -

Firemen's

Retention Plan Trust Fund Agency Funds

ASSETS Cash and cash equivalents 1,892$ 262,930$ Investments 308,811 -

Due from other funds - 514 310,703$ 263,444$

LIABILITIES Due to others - 193,298

Due to other funds 141,066 70,146 Total Liabilites 141,066 263,444

Net Position

NET POSITION HELD IN TRUST FOR PENSION BENEFITS 169,637 -

Total net position 169,637$ -$

TOWN OF BETHANY, CONNECTICUT STATEMENT OF CHNAGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018

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

- 26 -

ADDITIONSEmployer contributions 20,000$ Interst and dividends 20,094Net appreciation(depreciation) in fair value of investments (11,941)

28,153$

DEDUCTIONSBenefits paid 45,081$ Fees and expenses -

45,081

Change in net position (16,928)

Net position - beginning of year 186,565

Net position - ending of year 169,637$

TOWN OF BETHANY, CONNECTICUT

GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGETARY BASIS - BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2018

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

- 27 -

Original Final Actual Variance REVENUES: Property taxes 20,796,684$ 20,796,684$ 20,501,304$ (295,380)$ Intergovernmental 1,386,387 1,386,387 2,225,839 839,452

Local 105,000 105,000 145,830 40,830 Other 383,939 383,939 377,321 (6,618) Interest earnings 567,400 567,400 857,698 290,298

Total revenues 23,239,410 23,239,410 24,107,992 868,582

EXPENDITURESCurrent General government 1,279,039 1,279,039 1,240,021 39,018 Public safety 772,820 772,820 737,910 34,910

Public Works 2,117,343 2,117,343 2,106,813 10,530 Health 636,461 636,461 632,685 3,776 Human services 101,592 101,592 84,431 17,161

Community services 739,523 739,523 822,846 (83,323) Insurance and benefits 1,015,150 1,015,150 933,291 81,859

Debt service 426,917 426,917 333,559 93,358 Regional High School 9,495,632 9,495,632 9,341,182 154,450 Elementary High School 6,654,933 6,654,933 6,586,521 68,412 Total expenditures 23,239,410 23,239,410 22,819,259 420,151

Excess of revenues over(under) expenditures - - 1,288,733 1,288,733

OTHER FINANCING SOURCES (USES)Proceeds from issuance of debt - - 3,240,000 3,240,000 Payments to escrow agent - - (2,064,101) (2,064,101) Transfers in (out) - - (1,765,655) (1,765,655)

Total other financing sources (uses) - - (589,756) (589,756) Net change in fund balance -$ -$ 698,977 698,977$

Fund balances - beginning of year, as restated 4,091,002 Fund balances - end of year 4,789,979$

Budgeted Amounts

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Note 1 – Summary of Significant Accounting Policies

The Town of Bethany, Connecticut (the “Town”), is a municipal corporation governed by a selectmen/ town meeting form of government. Under this form of government, the town meeting is the legislative body. A town meeting is required to make appropriations, levy taxes, and borrow money. The administrative branch is led by an elected three-member Board of Selectmen. The Selectmen oversee most of the activities not assigned specifically to another body. An elected Board of Education oversees the public school system. An elected Board of Finance is the budget making authority and supervises the Town's financial matters.

The accounting policies conform to generally accepted accounting principles as applicable to governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the Town's more significant accounting policies.

Reporting Entity

The financial reporting entity consists of: 1) the primary government, 2) organizations for which the primary government is financially accountable, and 3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete as set forth by GASB.

In evaluating how to define the financial reporting entity, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in this reporting entity was made by applying the criteria set forth by GASB, including legal standing, fiscal dependency, and financial accountability. The criterion has been considered and there are no agencies or entities which should be presented with the Town.

Government-Wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the primary government as a whole. For the most part, the effects of interfund activity have been removed from these statements, except for interfund services provided and used. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities (if any), which rely to a significant extent on fees and charges for support.

The Statement of Net Position presents the financial position of the Town at the end of its fiscal year. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirement of a particular function

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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or segment, and 3) interest earned on grants that is required to be used to support a particular program. Taxes and other items not identified as program revenues are reported as general revenues.

Fund Financial Statements

The accounts of the Town are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances, revenues, and expenditures. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance related legal and contractual provisions. The Town maintains the minimum number of funds consistent with legal and managerial requirements. The focus of governmental fund financial statements is on major funds as that term is defined in professional pronouncements. Each major fund is to be presented in a separate column, with nonmajor funds aggregated and presented in a single column. The Town maintains fiduciary funds, which are reported by type.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements.

The Town's resources are reflected in the fund financial statements in two broad fund categories in accordance with generally accepted accounting principles as follows:

Governmental Funds – Governmental funds are those through which most general government functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds.

The following are the Town's major governmental funds:

General Fund – the primary operating fund of the Town. This fund is used to account for all financial transactions and resources except those required to be accounted for in another fund.

Capital Reserve Fund – used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of major capital facilities and other capital assets.

The Town also reports the following nonmajor governmental funds:

Special Revenue Funds – Special revenue funds are used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purpose other than debt service or capital projects. The nonmajor special revenue funds of the Town are:

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Education Grants Fund – used to account for and report the proceeds of State and Federal grants that are restricted to expenditures for education.

School Lunch Program Fund – used to account for and report the proceeds of State and Federal grants and fees that are restricted or assigned to expenditures for the school lunch program.

Cemetery Fund – used to collect fees and make expenditures for the care of the grounds.

Historic Preservation PA 00-146 – established under the named public act concerning service charges applied to real estate filings to fund the historic preservation of Town records.

Housing Rehabilitation Fund – established with a Federal grant to lend home improvement money to citizens that otherwise would not be able to afford to bring their homes up to the current safety codes.

Playhouse Group Fund – used for establishing a theater troop in Bethany.

Preschool Fund – collects fees and related costs for preschool.

Connecticut Clean Energy Fund – accounts for a grant for the same purpose.

Police Fund – used for the revenue and expenditures for police overtime and special events.

The following are the Town's nonmajor capital project funds:

Land Acquisition Fund – used to accumulate money for future land purchases.

Agriculture Grant Fund – used to account for a grant for the same purpose.

Airport Property Improvement Fund – used for capital expenditures and repairs to the former airport.

Fiduciary Funds (not included in the government-wide financial statements) – The Fiduciary Funds are used to account for assets held by the Town in an agency capacity on behalf of others. The Agency Funds are primarily utilized to account for monies held as custodian for outside groups.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities).

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. The Agency Funds have no measurement focus but utilize the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict GASB guidance.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

Property taxes and certain other revenues are considered to be available if collected within 60 days of the fiscal year end. Property taxes associated with the current fiscal period, as well as charges for services and intergovernmental revenues, are considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period. Fees and other similar revenues are not susceptible to accrual because generally they are not measurable until received in cash. If expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are accrued when the expenditure is made.

Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures, when applicable, related to early retirement incentives, compensated absences, capital leases, other post employment benefit obligations, and certain pension obligations are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and acquisitions under capital leases are reported as other financing sources.

Cash, Cash Equivalents, and Investments

Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts, certificates of deposit, money market funds, State of Connecticut Treasurer's Short-Term Investment Fund, Tax Exempt Proceeds Funds, and treasury bills with original maturities of less than three months.

Custodial Credit Risk – Custodial credit risk is the risk that, in the event of a bank failure, the Town deposits may not be returned to it. The Town's policy for custodial credit risk is to allow the Town to use banks that are in the State of Connecticut. The State of Connecticut requires that each depository maintain segregated collateral in an amount equal to a defined percentage of its public deposits based upon the bank's risk-based capital ratio.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Investments – The investment policies of the Town conform to the policies as set forth by the State of Connecticut. The Town's policy is to only allow prequalified financial institution brokers/dealers and advisors. The Town policy allows investments in the following: 1) obligations of the United States and its agencies; 2) highly rated obligations of any state of the United States or of any political subdivision, authority or agency thereof; and 3) shares or other interests in custodial arrangements or pools maintaining constant net asset values and in highly rated no-load open-end money market and mutual funds (with constant or fluctuating net asset values) whose portfolios are limited to obligations of the United States and its agencies, and repurchase agreements fully collateralized by such obligations. The Statutes (Sections 3-24f and 3-27f) also provide for investment in shares of the Connecticut Short-Term Investment Fund and the Tax Exempt Proceeds Fund.

Investments are stated at fair value, based on quoted market prices.

Interest Rate Risk – Interest rate risk is the risk that the Town will incur losses in fair value caused by changing interest rates. The Town does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Generally, the Town does not invest in any long-term investment obligations.

Custodial Credit Risk – Custodial credit risk 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 for custodial credit risk is to invest in obligations allowable under the Connecticut General Statutes as described previously.

Credit Risk – Credit risk is the risk that an issuer or other counterparty will not fulfill its specific obligation even without the entity's complete failure. The Town does not have a formal credit risk policy other than restrictions to obligations allowable under the Connecticut General Statutes.

Concentration of Credit Risk – Concentration of credit risk is the risk attributed to the magnitude of a government's investments in a single issuer. The Town follows the limitations specified in the Connecticut General Statutes. Generally, the Town's deposits cannot be 75% or more of the total capital of any one depository.

Fair Value Measurements

The Town utilizes the market approach as the valuation technique to measure fair value of its financial assets. GAAP establishes a three-level hierarchy for fair value measurements that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (“observable inputs”) and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (“unobservable inputs”) and requires that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1 - Valuation based on unadjusted quoted prices in active markets for identical assets the

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Town has the ability to access. Since valuations are based on quoted prices readily and regularly available in an active market, valuation of these assets does not entail significant judgment.

Level 2 - Valuation based on quoted prices for similar assets in active markets; quoted prices for similar assets in inactive markets; or valuations based on models where the significant inputs are observable (e.g. interest rates, yield curves, etc.) or can be corroborated by observable market data.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The unobservable inputs reflect the Town’s own assumptions about assumptions that market participants might use.

The Town’s investments are measured on a recurring basis using Level 1 information (market quotations for investments that have quoted prices in active markets). The Town has no financial assets measured using Level 2 or Level 3 at June 30, 2018.

Taxes Receivables

Property taxes are assessed on property values as of October 1st. The tax levy is divided into two billings; the following July 1st and January 1st. This is used to finance the fiscal year from the first billing

(July 1st) to June 30th of the following year. The billings are considered due on those dates; however, the actual due date is based on a period ending 31 days after the tax bill. On these dates (August 1st and February 1st), the bill becomes delinquent at which time the applicable property is subject to lien, and penalties and interest are assessed.

Under Connecticut State Statutes, the Town has the right to impose a lien on a taxpayer if any personal property tax, other than a motor vehicle tax, due to the Town is not paid within the time limited by any local charter or ordinance. The lien shall be effective for a period of 15 years from the date of filing unless discharged. A notice of tax lien shall not be effective if filed more than two years from the date of assessment for the taxes claimed to be due. The Town establishes allowances for uncollectible taxes and interest based on historical collection experience and other factors. As of June 30, 2018, the Town has established an allowance for uncollectible taxes and interest of $72,685.

Other Receivables

Other receivables include amounts due from other governments and individuals for services provided by the Town. Receivables are recorded and revenues recognized as earned or as specific program expenditures/expenses are incurred. Allowances are recorded when appropriate.

Prepaid Expenses

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid expenses in both the government-wide and the fund financial statements.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Loans Receivable

The Town administers a loan program for individuals and families in need. Repayment of the loans is deferred, but the loans become due and payable upon sale or transfer of the property, the owner’s demise, or when the subject property is no longer the applicant’s principal place of residence. The notes may be paid in full or in part by the borrower at any time without penalty. As of June 30, 2018, loans receivable totaled $89,988 under this program.

Inventory Inventory is valued at cost on a first-in, first-out basis. The cost is recorded as inventory at the time individual items are purchased. The Town uses the consumption method to relieve inventory.

Interfund Transactions

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds" (i.e. the current portion of interfund loans) or "advances to/from other funds" (i.e. the non-current portion of interfund loans).

Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in appropriate governmental funds to indicate that they are not available for appropriation and are not expendable financial resources.

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (i.e., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the Town as assets with an initial individual cost of more than the capitalization threshold for that asset type and an estimated useful life in excess of three years. Such assets are recorded at historical cost or estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of an asset or materially extend the asset life are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Land and construction-in-progress is not depreciated. Property, plant, and equipment of the Town are depreciated or amortized using the straight line method over the following estimated useful lives:

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Assets Years Threshold Buildings and systems 25-50 5,000$ Machinery and equipment

Vehicles 10-20 5,000$ Equipment 5-10 5,000$ Infrastructure 40 5,000$

Unearned Revenue

In the government-wide and fund financial statements, this liability represents resources that have been received but not yet earned.

Deferred Outflows/Inflows of Resources

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 reports a deferred outflow of resources in the government-wide Statement of Net Position related to pension contributions made subsequent to the measurement date. These amounts are deferred and included in pension expense in the subsequent year. Also, the Town reports a deferred outflow of resources in the government- wide Statement of Net Position related to pension results from differences between expected and actual experience in the government-wide Statement of Net Position. These amounts are deferred and included in pension expense in a systematic and rational manner.

Deferred inflows of resources represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. For governmental funds, the Town reports unavailable revenue, which arises only under the modified accrual basis of accounting. The unavailable revenues from property taxes and long-term loans are reported in the governmental funds Balance Sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.

Compensated Absences

Employees are paid by prescribed formula for absence due to vacation or sickness. Vacation pay is generally not available beyond the fiscal year it is earned. Unused sick leave may be accumulated to be used for future absences or is payable upon termination. Sick leave expenses to be paid in future periods are accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in governmental funds only for amounts expected to be paid with available resources, for example, as a result of employee resignations and retirements.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Encumbrances

Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting, under which purchase orders, contracts, or other commitments for expenditures are recorded to reserve a portion of an applicable appropriation, is utilized in governmental funds, primarily the General Fund. Encumbrances outstanding at year-end are reported as assigned fund balance as they do not constitute expenditures or liabilities. There were no of encumbrances at year end June 30, 2018.

Net Pension Liability

The net pension liability is measured as the portion of the actuarial present value of projected benefits that is attributed to past periods of employee service (total pension liability), net of the pension plan’s fiduciary net position. The pension plan’s fiduciary net position is determined using the same valuation methods that are used by the pension plan for purposes of preparing its Statement of Fiduciary Net Position. The net pension liability is measured as of a date (measurement date) no earlier than the end of the employer’s prior fiscal year, consistently applied from period to period.

Long-Term Obligations

In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred.

In the governmental fund financial statements, bond premiums and discounts are expensed during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, and debt payments, are reported as debt service expenditures.

Net Position and Fund Balance

In the government-wide financial statements, net position represents the difference between assets, liabilities, and deferred outflows/inflows of resources. Net position is reported as restricted when there are limitations imposed on its use either through the enabling legislation adopted by the Town or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Net position on the Statement of Net Position includes net investment in capital assets and restricted net position. The balance is classified as unrestricted.

Generally, fund balance represents the difference between current assets and current liabilities. In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Under this standard, the fund balance classifications are as follows:

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

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Nonspendable – fund balance amounts that cannot be spent because they are either not in spendable form (inventories, prepaids, and long-term receivables) or they are legally or contractually required to be maintained intact (the corpus of a permanent fund).

Restricted – fund balance amounts to be reported when constraints placed on the use of the resources are imposed by grantors, contributors, laws or regulations of other governments, or imposed by law through enabling legislation. Enabling legislation includes a legally enforceable requirement that these resources be used only for the specific purposes as provided in the legislation. This fund balance classification will be used to report funds that are restricted for debt service obligations and for other items contained in the State of Connecticut Statutes.

Committed – fund balance amounts that can be used only for specific purposes determined by a formal action of the Town’s highest level of decision-making authority, which is a motion at a Town Meeting. These funds may only be used for the purpose specified unless the entity removes or changes the purpose by taking the same action that was used to establish the commitment. This classification includes certain amounts established and approved by the entity's governing boards.

Assigned – fund balance amounts constrained either by the entity's highest level of decision making authority or a person with delegated authority from the governing board to assign amounts for a specific intended purpose. Currently, this is done by the Board of Finance. An assignment cannot result in a deficit in the unassigned fund balance in the General Fund.

Assigned fund balance in all other governmental funds represents any positive remaining amount after classifying nonspendable, restricted, or committed fund balance amounts.

Unassigned – fund balance amounts not classified as nonspendable, restricted, committed, or assigned. The General Fund is the only fund that would report a positive amount in unassigned fund balance.

For all governmental funds other than the General Fund, unassigned fund balance would necessarily be negative, since the fund's liabilities and deferred inflows, together with amounts already classified as nonspendable, restricted, and committed would exceed the fund's assets and deferred outflows.

When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the Town's policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, the Town considers that committed amounts would be reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of these unrestricted fund balance classifications could be used.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported

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amounts of assets, liabilities, deferred inflows/outflows, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subsequent Events Evaluation by Management Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which date is February 15, 2019. Note 2 - Budgeting and Budgetary Accounting General Fund

A formal, legally approved, annual budget is adopted for the General Fund only. This budget is adopted on a basis consistent with Generally Accepted Accounting Principles (modified accrual basis) with the following exceptions:

• Teachers' Retirement – The Town does not recognize as income or expenditures payments made for the teachers' retirement by the State of Connecticut on the Town's behalf in its budget. The Governmental Accounting Standards Board's Statement 68 requires that the employer government recognize payments for salaries and fringe benefits paid on behalf of its employees.

• Encumbrances – Unless committed through a formal encumbrance (e.g., purchase orders, signed contracts), all annual appropriations lapse at fiscal year-end. Encumbrances outstanding at year end are reported on the budgetary basis statements as expenditures.

The Boards of Selectmen and Education submit requests for appropriations to the Board of Finance. The budget is prepared by fund, function, and activity, and includes information on the past year, current year estimates, and requested appropriations of the next fiscal year.

The Board of Finance holds a public hearing at which itemized estimates of the expenditures of the Town for the next fiscal year are presented. At this time, individuals are able to recommend any appropriations which they desire the Board of Finance to consider. The Board of Finance then considers the estimates and any other matters brought to their attention at a public meeting held subsequent to the public hearing, and prior to the annual meeting. The Board of Finance prepares the proposed budget.

The Board of Finance's estimated and recommended budget reports are submitted at the Annual Town Meeting. The Annual Town Meeting takes action on this budget. After the Annual Town Meeting, the Board of Finance meets to levy a tax on the grand list which will be sufficient to cover, together with other income or revenue surplus which is appropriated, the amounts appropriated and any revenue deficit of the Town.

The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level except expenditures for education, which are, by Connecticut State Statutes, appropriated as one department.

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The governing body may amend the annual budget subject to the requirements of the Connecticut General Statutes. The Board of Finance may make a one-time additional appropriation up to $20,000 to any department appropriation. A Town Meeting must be called to make appropriations over $20,000 or additional changes to previously adjusted appropriations.

A reconciliation of General Fund operations presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) to the amounts presented on the budgetary basis is as follows:

Revenues ExpendituresOther Financing Sources (uses)

24,107,992$ 22,819,259$ (589,756)$

1,287,997 1,287,997 - - (379,012) (379,012)

25,395,989$ 23,728,244$ (968,768)$ GAAP basis

Reclassification

Budegetary basisState Teachers' Retirement on be-half

payment, not recognized for budgetary purposes

Special Revenue Funds

The Town does not have legally adopted annual budgets for the Special Revenue Funds. Budgets for the various Special Revenue Funds, which are utilized to account for specific grant programs, are established in accordance with the requirements of the grantor agencies. Such budgets carry over until completion of the grants.

Capital Project Funds

Legal authorization for expenditures of the Capital Project Funds is provided by the Town ordinances and/or intergovernmental grant agreements. Capital appropriations do not lapse until completion of the applicable projects.

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Note 3 - Cash, Cash Equivalents and Investments Cash and Cash Equivalents The following is a summary of cash and cash equivalents at June 30, 2018:

Governmental Funds Cash and cash equivalents 4,382,801$ Connecticut Short Term Investment Fund 932,187

5,314,988

Fiduciary FundsCash and cash equivalents 264,822$

Total Cash and Investments 5,579,810$ Custodial Credit Risk on Deposits As of June 30, 2018, the carrying amount of the Town's deposits with financial institutions was $4,647,623. The bank balance of the deposits was $5,018,219 and was exposed to custodial credit risk as follows:

Covered by Federal Depository Insurance 265,873$ Uninsured and collateralized 475,235 Uninsured and uncollateralized 4,277,111

5,018,219$ Investments Investments are summarized as follows at June 30, 2018:

Fair Market Value

Maturity not Applicable

Less Than 1 1yr-5yr 5yr-10yr 10yr-30yr

General FundFixed income 1,620,974$ -$ 5,325$ 1,615,649$ -$ -$

Pension Trust FundU.S. Government agencies 37,101$ -$ -$ -$ -$ 37,101$ Mutual funds 132,656 132,656 - - - - REIT 51,057 51,057 - - - - Other 87,997 87,997 - - - -

Total pension trust fund 308,811$ 271,710$ -$ -$ -$ 37,101$

Investment Maturity (in Years)

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Note 6 - Capital Assets

Capital asset activities for the year ended June 30, 2018 was as follows:

Balance at Balance at July 01, 2017 Increases Decreases June 30, 2018

Capital assets not being depreciated:Land 4,372,624$ -$ -$ 4,372,624$ Construction in progress 2,952,232 1,081,240 - 4,033,472

Total capital assets not being depreciated 7,324,856 1,081,240 - 8,406,096

Capital assets being depreciated:Buildings and systems 17,841,823 96,175 - 17,937,998 Machinery and equipment 7,843,606 44,000 - 7,887,606 Infrastructure 22,707,063 649,310 - 23,356,373

Total capital assets being depreciated 48,392,492 789,485 - 49,181,977

Less accumulated depreciaton: (28,330,899) (1,585,377) - (29,916,276)

Total deprciable capital assets, net 20,061,593 (795,892) - 19,265,701 Capital assets, net 27,386,449$ 285,348$ -$ 27,671,797$

Depreciation expense was charged to governmental activities-function/programs as follows:

General government 105,292$ Public works 894,657Public safety 188,927Health and welfare 26,026Education 370,475

Total depreciation expense 1,585,377$

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Note 7 - Long-Term Liabilities The following table summarizes changes in the Town’s long-term indebtedness for the year ending June 30, 2018:

Beginning Balance Additions Reductions Ending Balance

Due Within One Year

General obligation bonds 3,165,000$ -$ 515,000$ 2,650,000$ 515,000$ Bond premiums 117,421 - 5,972 111,449 5,972 Bond anticipation notes 2,045,000 3,240,000 2,045,000 3,240,000 3,240,000 Loan payable- Eversource 83,333 - 24,996 58,337 24,996 Capital leases 44,243 - 44,243 - - Compensated absences 83,074 5,822 - 88,896 30,121 Other post employment benefits* 757,758 104,947 62,513 800,192 - Firemen's pension* 214,628 72,321 - 286,949 - Net pension liability(CMERS) 311,563 - 49,171 262,392 -

6,822,020$ 3,423,090$ 2,746,895$ 7,498,215$ 3,816,089$

* restated (see Note 13) Each governmental funds liability is liquidated by the respective fund, primarily the General Fund. Interests on these obligations are expensed to the respective fund, primarily the General Fund. General Obligation Bonds The Town issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds are direct obligations of the Town and pledge the full faith and credit of the Town. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. General obligation bonds outstanding as of June 30, 2018, consisted of the following:

Purpose Year of Issue Original AmountMatures in

Year EndingAverage Interest Current Amount

Education/Public Safety 2012 5,505,000$ 2027 1%-3% 2,100,000$ Transportation 2012 2,060,000 2020 1%-3% 550,000

2,650,000$

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Payments to maturity on the general obligation bonds are as follows:

Year Ending Principal Interest2019 515,000$ 58,049$ 2020 525,000 47,649 2021 240,000 38,799 2022 235,000 32,555 2023 235,000 27,268 2024 230,000 21,634 2025 225,000 15,718 2026 225,000 9,559 2027 220,000 3,131

2,650,000$ 254,362$ Bond Anticipation Notes

On November 8, 2016, the Town issued $2,045,000 of bond anticipation notes due August 7, 2017, with an annual interest rate of 1.25% to fund these projects. This bond anticipation note was repaid during the year ended June 30, 2018 with a new bond anticipation note on August 7, 2017 in the amount of $3,240,000 at a rate of 1.35% per annum due August 6, 2018.

Loan Payable - Eversource

In November 2016, the Town financed certain lighting improvements with a loan for $100,000. The loan matures serially from December 2016 to November 2020 with monthly principal payments of $2,083 and bears interest of zero percent.

Bonds Authorized and Unissued

At June 30, 2018, there were $129,096 authorized and unissued bonds for general purposes.

Capital Leases Payable The Town enters into various lease agreements as a lessee for financing the acquisition of equipment. The leases qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of their future minimum lease payments as of the inception date in the government-wide financial statements. There were no capital lease obligations outstanding at year end.

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Prior Years Advance Refundings

In prior years, the Town has defeased a bond issue by creating a separate irrevocable trust. New debt has been issued, and the proceeds have been used, to purchase U.S. Government securities that were placed in the trust. The investments and fixed earnings from the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and, therefore, removed as a liability from the Town’s financial statements.

Statutory Debt Limitation

Connecticut General Statutes Section 7-374(b) provides that authorized debt of the Town shall not exceed seven times base receipts, as defined in the Statute. Further, the Statute limits the amount of debt that may be authorized by the Town for general purposes, schools, sewers, urban renewal, and pension deficit. The Town did not exceed any of the statutory debt limitations at June 30, 2018.

Note 8 - Fund Balances As discussed in Note 1, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the Town is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. These are summarized below:

General Fund Capital Reserve

Fund

Other Governmental

Funds Nonspendable:

Prepaid expenses 24,132$ -$ -$ Inventories 36,761 - 2,227

60,893 - 2,227 Restricted:

Capital projects - - 89,862 Culture and recreation - - 15,417 Community service - - 36,644

- - 141,923.00 Committed:

Capital Projects - 1,363,150 -

Assigned:Subsequent year's budget - - - General government - - 51,477 Education - - 130,943 Public safety - - 68,479 Culture and recreation - - 2,113 Community service - - 4,686 Captial projects - 336,853 285,396

- 336,853 543,094

Unassigned: 4,729,086 - - 4,789,979$ 1,700,003$ 687,244$

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Note 9 - Pension Plans Connecticut Teachers' Retirement System Description of System Teachers within the Town’s school system participate in a retirement system administered by the Connecticut State Teachers’ Retirement Board. This Connecticut State Teachers’ Retirement System (the “System”) is a cost sharing multiple employer defined benefit pension system with a special funding situation. The System is considered a part of the State of Connecticut financial reporting entity and is included in the State’s financial reports as a pension trust fund. Those reports may be obtained by writing to the State of Connecticut, Office of the State Comptroller, 55 Elm Street, Hartford, Connecticut 06106 or by calling (860) 702-3480. The System is administered under the provisions of Chapter 167a of the Connecticut General Statutes (CGS). Participation in the System is restricted to certified staff employed in the public schools of Connecticut and members of the professional staff of the State Department of Education or the board of Governors of Higher Education and their constituent units. Participation in the System is mandatory for certified personnel of local boards of education who are employed for an average of at least one-half of a school day. Members of the professional staff of the State Department of Education or the Board of Governors of Higher Education and their constituent units may elect to participate in this system, the State Employees’ Retirement System, or the Alternate Retirement System (TIAA-CREF). Summary of Significant Accounting Policies For purposes of measuring the liability, deferred outflows of resources and deferred inflows of resources, and expense associated with the State’s requirement to contribute to the System, information about the System’s fiduciary net position and additions to/deductions from the System’s fiduciary net position have been determined on the same basis as they are reported by the System. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Benefits Provided The benefits provided to participants by the System are as follows: Normal Benefit: A member at age 60 with 20 years of Credited Service in Connecticut, or 35 years of Credited Service including at least 25 years of service in Connecticut, is eligible for vested benefits of 2% of average annual salary times years of credited service (maximum benefit is 75% of average annual salary.) Prorated Benefit: A member who completes 10 years of Connecticut public school service is eligible for a vested benefit commencing at age 60. The benefit is 2% less 0.1% for each year less than 20 years of average annual salary times years of credited service. Minimum Benefit: Effective January 1, 1999, Public Act 98-251 provides a minimum monthly retirement benefit of $1,200 to teachers who retire under the Normal Benefit provisions and who have completed at least 25 years of full time Connecticut service at retirement.

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Contribution Requirements The pension contributions made by the State to the System are determined on an actuarial reserve basis as described in CGS Sections 10-1831 and 10-183z. Participants are required to contribute 7.25% until December 2018 then 8.25% thereafter of their annual salary rate to the System as required by CGS Section 10-183b (7). For the 2017-2018 school year, $247,730 mandatory contributions were deducted from the salaries of teachers who were participants of the System during that school year. The estimated covered payroll for the Town is $3,151,744. The Town had 47 active participants in the System at June 30, 2018. Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following key actuarial assumptions: Inflation 2.75 PercentSalary increases, including inflation 3.25-6.50 PercentLong-term investment rate of return, 8.00 Percentnet of position investment expense,including inflation Mortality rates were based on the RPH-2014 White Collar table with employee and annuitant rates blended from ages 50 to 80, projected to the year 2020 using the BB improvement scale. Future cost-of-living increases for teachers who retired prior to September 1, 1992, are made in accordance with increases in the Consumer Price Index, with a minimum of 3% and a maximum of 5% per annum. For teachers who were members of the Teachers’ Retirement System before July 1, 2007, and retire on or after September 1, 1992, pension benefit adjustments are made that are consistent with those provided for Social Security benefits on January 1 of the year granted, with a maximum of 6% per annum. If the return on assets in the previous year was less than 8.5%, the maximum increase is 1.5%. For teachers who were members of the Teachers’ Retirement System after July 1, 2007, pension benefit adjustments are made that are consistent with those provided for Social Security benefits on January 1 of the year granted, with a maximum of 5% per annum. If the return on assets in the previous year was less than 11.5%, the maximum increase is 3%, and if the return on the assets in the previous year was less than 8.5%, the maximum increase is 1.0%. The long-term expected rate of return on pension investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

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Asset Class Target Allocation

Long-Term Expected Real Rate

of Return

Large cap U.S. equitites 21.0% 5.8%Developed non-U.S. equities 18.0% 6.6%Emerging markets (non-U.S.) 9.0% 8.3%Real estate 7.0% 5.1%Private equity 11.0% 7.6%Alternative investments 8.0% 4.1%Core fixed income 7.0% 1.3%High yield bonds 5.0% 3.9%

Emerging market bond 5.0% 3.7%Inflation linked bond fund 3.0% 1.0%Cash 6.0% 0.4%

Total 100% Discount Rate The discount rate used to measure the total pension liability was 8.00 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that State contributions will be made at the actuarially determined rates in future years. Based on those assumptions, the pension’s fiduciary net position was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return on pension investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Town’s proportionate share of the net pension liability of the System, calculated using the discount rate of 8.00 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (7.00 percent) or 1-percentage-point higher (9.00 percent) than the current rate.

1% Decrease (7.00%)

Current Discount Rate (8.00%)

1% Increase (9.00%)

Sensitivity of the system's proportionate shareof the net pension liability related to the Town 13,937,684$ 11,134,958$ 8,765,429$ Pension Liabilities, Pension Expense, and Deferred Inflows/Outflows of Resources The State makes all contributions to the System on behalf of employees of the participating districts. Therefore, participating employers are considered to be in a special funding situation as defined by Governmental Accounting Standards Board No. 68 and the State is treated as a non-employer contributing entity in the System. Since the districts do not contribute directly to the System, there is no net pension liability or deferred inflows or outflows to report in the financial statements of the Town. The portion of the net pension liability that was associated with the Town was $11,134,958.

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The Town recognized the total pension expense associated with the Town as well as revenue in an amount equal to the non-employer contributing entities’ total proportionate share of the collective pension expense associated with the Town. For the fiscal year ended June 30, 2018, the Town recognized $1,287,997 as the amount expended by the State on behalf of the Town to meet the State’s funding requirements. Connecticut Municipal Employees Retirement System Description of Retirement System The Town is a participating municipality of the Connecticut's Municipal Employees Retirement System (“CMERS”), which is the public pension plan offered by the State of Connecticut for municipal employees in participating municipalities. The plan was established in 1947 and is governed by Connecticut General Statute Title 7, Chapter 113. CMERS is a multiemployer pension plan administered by the Connecticut State Retirement Commission. The State Retirement Commission is responsible for the administration of CMERS. The State Treasurer is responsible for investing CMERS funds for the exclusive benefit of CMERS members. The Town had 6 active participants in CMERS at June 30, 2018. CMERS is considered a part of the State of Connecticut financial reporting entity and is included in the State’s financial reports as a pension trust fund. Those reports may be obtained by writing to the State of Connecticut, Office of the State Comptroller, 55 Elm Street, Hartford, Connecticut 06106 or by calling (860) 702-3480. Summary of Significant Accounting Policies For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources, and expense information about CMERS net position and additions to/deductions from CMERS net position have been determined on the same basis as they are reported by CMERS. For this purpose, benefit payments (including refunds of contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Benefits Provided The benefits provided to participants by CMERS include retirement, disability, and death benefits as follows: General Employees – Employees are eligible to retire at age 55 with 5 years of continuous service, or 15 years of active aggregate service, or 25 years of aggregate service. Policemen and Firemen – Compulsory retirement age for police and fire members is age 65. Normal Retirement – For members not covered by social security, the benefit is 2% of average final compensation times years of service. For members covered by social security, the benefit is 1% of the average final compensation not in excess of the year's breakpoint plus 2% of average final compensation in excess of the year's breakpoint, times years of service. The maximum benefit is 100% of average final compensation and the minimum benefit is $1,000 annually. Both the minimum and the maximum include workers' compensation and social security benefits.

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If any member covered by social security retires before age 62, the benefit until age 62 or until a social security disability award is received, is computed as if the member is not under social security. Early Retirement – Employees are eligible after 5 years of continuous service or 15 years of active aggregate service. The benefit is calculated based on average final compensation and service to date of termination. Deferred to normal retirement age or an actuarially reduced allowance may begin at the time of separation. Disability Retirement – Employees are eligible for service-related disability benefits from being permanently or totally disabled from engaging in the service of the municipality provided such disability has arisen out of and in the course of employment with the municipality. Disability due to hypertension or heart disease, in the case of firemen and policemen, is presumed to have been suffered in the line of duty. Disability benefits are calculated based on compensation and service to the date of the disability with a minimum benefit (including workers' compensation benefits) of 50% of compensation at the time of disability. Employees are eligible for non-service related disability benefits with 10 years of service and being permanently or totally disabled from engaging in gainful employment in the service of the municipality. Disability benefits are calculated based on compensation and service to the date of the disability. Pre-Retirement Death Benefit – The plan also offers a lump sum return of contributions with interest or surviving spouse benefit depending on length of service. Contribution Requirements Employer – As a participating municipality, the Town makes annual contributions consisting of a normal cost contribution, a contribution for the amortization of the net unfunded accrued liability, and a prior service amortization payment, which covers the liabilities of CMERS not met by member contributions. Employees – For employees not covered by social security, each person is required to contribute 5% of compensation. For employees covered by social security, each person is required to contribute 2.25% of compensation up to the social security taxable wage base plus 5% of compensation, if any, in excess of such base. The Town’s required contribution to CMERS is currently 11.38% of covered payroll. Such contribution was $43,001 for the year ended June 30, 2018, related to covered payroll of $377,864. Actuarial Assumptions The total pension liability was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.75 PercentSalary increases, including inflation 4.25-11.0 PercentLong-term investment rate of return, 8.00 Percentnet of position investment expense,including inflation Mortality rates were based on the RP-2000 Combined Mortality Table for annuitants and nonannuitants (set forward one year for males and set back one year for females).

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The actuarial assumptions used in the June 30, 2016, valuation were based on the results of an actuarial experience study for the period July 1, 2005 - June 30, 2010. Future Cost-of-Living adjustments for members who retire on or after January 1, 2002, are 60% of the annual increase in the CPI up to 6%. The minimum annual COLA is 2.5%, the maximum is 6%. The long-term expected rate of return on pension investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2017, are summarized in the following table:

Asset Class Target Allocation

Long-Term Expected Real Rate

of Return

Large Cap U.S. Equities 16.0% 5.8%Developed Non-U.S. Equities 14.0% 6.6%Emerging Markets (non-U.S.) 7.0% 8.3%Core Fixed Income 8.0% 1.3%Inflation Linked Bonds 5.0% 1.0%Emerging Market Bonds 8.0% 3.7%High Yield Bonds 14.0% 3.9%Real Estate 7.0% 5.1%Private Investments 10.0% 7.6%Alternative Investments 8.0% 4.1%Liquidity Fund 3.0% 0.4%

100% Discount Rate The discount rate used to measure the total pension liability was 8.00 percent. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the pension’s fiduciary net position was projected to be available to make all projected future benefit payments of current members. Therefore, the long-term expected rate of return on pension investments was applied to all periods of projected benefit payments to determine the total pension liability.

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Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the Town’s proportionate share of the net pension liability of CMERS, calculated using the discount rate of 8.00 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (7.00 percent) or 1-percentage-point higher (9.00 percent) than the current rate.

1% Decrease (7.00%)

Current Discount Rate (8.00%)

1% Increase (9.00%)

Sensitivity of the proportionate Share of the net pension liability 448,464$ 262,392$ 104,568$

Pension Liabilities, Pension Expense, and Deferred Inflows/Outflows of Resources At June 30, 2018, the Town reported a liability in the government-wide Statement of Net Position for its proportionate share (0.158736%) of the net pension liability. The amount recognized by the Town as its proportionate share of the net pension liability was $262,392. June 30, 2016 is the actuarial valuation date upon which the total pension liability is based. The total pension liability was calculated as of the June 30, 2017 measurement date using a standard roll-forward technique. There were no changes in assumptions or benefits that affected the measurement of the total pension liability since the prior measurement date.

The Town recognized the total proportionate share of the collective pension expense in the government-wide Statement of Activities associated with the Town of $57,992 for the fiscal year ended June 30, 2018. At June 30, 2018, the Town reported deferred outflows of resources related to CMERS in its government-wide Statement of Net Position from the following sources:

Deferred Outflows of Resources

Difference between expected and actual experience 4,988$

Change in assumptions (11,346)$

Net difference between projected and actual earningson plan investments 21,011$

Town contributions susequent to the measurement date 40,853$

Total 55,506$ The deferred outflows of resources resulting from the Town’s contributions subsequent to the measurement date of June 30, 2017, will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other deferred outflows and inflows are amortized over a closed five-year period. Amounts reported in deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

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2019 4,723$ 2020 17,794 2021 4,179 2022 (12,043)

Fiscal year endedJune 30,

Recruitment and Retention Plan - Town of Bethany Volunteer Fire Association Summary Substantially all Members (as defined in the plan) of the Bethany Volunteer Firemen’s Association, Inc. may participate in the plan. The plan is considered to be part of the Town’s financial reporting entity, and is included in the Town’s financial statements as a Pension Trust Fund. Plan benefit and contribution requirements are established by the plan, which may be amended by the Town. Benefit Provisions Eligibility to participate in the plan is based upon minimum age and months of service requirements. Participants are fully vested in year 20 of participation and are unvested prior to that time. Retirement benefits are paid following the participants' attainment of the longer of the age 62 and 20 years of service. Under the plan agreement, the Town is obligated to make contributions as deemed necessary by an actuary. The Town reserves the right to make any amendments to the plan and may terminate the plan at any time. The plan is administered by Volunteer Firemen’s Services, Inc. Basis of Accounting The Pension Trust Fund’s financial statements are prepared on the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when they are incurred. Investments For the year ended June 30, 2018, the annual money-weighted rate of return on plan investments, net of plan investment expenses, was 7.0%. The money-weighted rate of return expresses investment performance, net of investment expenses, adjusted for changing amounts actually invested. Investments are valued at fair market value using quoted market prices. Contributions The Town’s funding policy provides for periodic employer contributions at actuarially determined rates that are sufficient to accumulate the assets needed to pay benefits when due. For the year ended June 30, 2018, the Town contributed $20,000 to the plan.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 53 -

Net Pension Liability The components of the net pension liability of the Town at June 30, 2018, were as follows:

454,586$ 169,637$ 284,949$

Total pension liabilityPlan fiduciary net positionNet pension liability

Defined Contribution Plan – Town Employees The Town maintains a non-contributory money purchase plan for all full time regular employees (excluding Board of Education and Public Works employees, who are covered separately) upon completion of six months of service with the Town. Participants, 21 years of age and over, vest immediately and may voluntarily contribute up to 15% of gross income. The Town Contributes 8% of employees’ normal earnings. This year the Town contributed $62,781 to the plan. At June 30, 2018, there were 15 active participants in the plan. Defined Contribution Plan – Non-Certified Board of Education Employees Non-certified employees of the Board of Education who have completed one year of service are eligible to participate in a non-contributory money purchase pension plan. The Town contributes 7% to 11% of employees’ normal earnings and participants vest immediately. During the current year, the Town contributed $32,985 to the plan. The plan is administered by various companies. At June 30, 2018, there were 7 active participants in the plan. Note 10 - Other Post-Employment Benefits (OPEB) Plan Description The Town provides certain health care benefits for retired employees through a single-employer defined benefit plan administered by the Town in accordance with various collective bargaining agreements. The plan does not issue separate financial statements. GASB 75 governs the specifics of accounting for public OPEB plan obligations for participating employers and is required to be implemented for employer fiscal years beginning after June 15, 2017. GASB 75 requires a liability for OPEB obligations, known as the Net OPEB Liability (Total OPEB Liability for unfunded plans), to be recognized on the balance sheets of participating employers. Changes in the Net OPEB Liability (Total OPEB Liability for unfunded plans) will be immediately recognized as OPEB Expense on the income statement or reported as deferred inflows/outflows of resources depending on the nature of the change. Eligibility: Age 50 with 25 years of service, age 55 with 20 years of service, or age 60 with 10 years of service. Cost Sharing: All retirees pay 100% of the premiums less the amount paid to the Town by the Teachers' Retirement Board.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 54 -

Plan of Coverage: Various medical plans depending on whether retirement is prior to age 65 or after 65 and whether eligibility for Medicare. Funding Policy The employer does not pre-fund benefits. The current funding policy is to pay benefits directly from general assets on a pay-as-you-go basis. Plan Participants The plan had the following number of participants as of July 1, 2016: Active plan members 58 Retirees 2

Total members 60 Net OPEB Liability of the Town During the year, the Town implemented GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans (OPEB). This Statement requires the net OPEB liability to be measured as the total OPEB liability, less the amount of the OPEB plan’s fiduciary net position. The components of the net OPEB liability of the Town at June 30, 2018, re as follows: Total OPEB liability 800,192$ Plan fiduciary net position -

Towns net OPEB liability 800,192$ Plan fiduciary net position as a percentage of the total OPEB liability 0% The total OPEB liability was determined by an actuarial valuation as of the valuation date, calculated based on the discount rate and actuarial assumptions below, and was then projected forward to the measurement date. Any significant changes during this period have been reflected as prescribed by GASB 74 and 75. The Town’s net OPEB liability will be required to be recorded on the government-wide financial statement of net position at June 30, 2018. Actuarial assumptions - the total OPEB liability was determined by an actuarial valuation as of July 1, 2017 and increased by service cost and interest and decreased by benefit payments to estimate the total OPEB liability as of June 30, 2018.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 55 -

Actuarial assumptions were as follows: Latest Actuarial Date July 1, 2016Actuarial Cost Method Projected Unit CreditDiscount Rate 3.00%Payroll Growth Rate 3.00%Medical Inflation Initial rate of 5%Amortization Method Level dollar amountRemaining amortization 30 years, openMortality RP-2014 Adjusted to 2006 Total Dataset Mortailty TableTurnover Based on the experience under the Connecticut State Teachers'

Retirement SystemRetirement Based on the experience under the Connecticut State Teachers'

Retirement System Discount rate - the discount rate used to measure the total OPEB liability was 3.87%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that the Town contributions will be made at rates equal to the actuarially determined contributions. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Sensitivity of the net OPEB liability to changes in the discount rate - the following presents the net OPEB liability of the Town, calculated using the discount rate of 3.87%, as well as what the Town’s net OPEB liability would be if it were calculated using a discount rate that is 1- percentage-point lower (2.87%) or 1-percentage-point higher (4.87%) than the current discount rate:

1% Decrease (2.87%)

Current Discount Rate

(3.87%)1% Increase

(4.87%)

Net OPEB liability 891,150$ 800,192$ 718,613$ Sensitivity of the net OPEB liability to changes in the healthcare cost trend rate - the following presents the net OPEB liability of the Town, calculated using the healthcare cost trend rate of 4.6%, as well as what the Town’s net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower (3.6%) or 1-percentage-point higher (5.6%) than the current healthcare cost trend rate:

1% Decrease (3.60%)

Current Discount Rate

(4.60%)1% Increase

(5.60%)

Net OPEB liability 676,127$ 800,192$ 952,018$

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 56 -

Annual Costs and Net OPEB Liability The Town’s annual post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The Town has engaged an actuary to calculate the ARC and related information per the provisions of GASB Statement 45 for employers in plans with more than 100 total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and to amortize any unfunded liabilities (or funding excess) over a period not to exceed twenty-five years. The calculation of the change in the net OPEB obligation for the year ended June 30, 2018 follows:

Net OPEB liability, beg. as restated (see note 7) 757,758

Service cost 52,892$ Interest on net OPEB liability 28,363 Differences between expected and actual experience 23,692 Changes of benefit terms - Changes in assumptions (25,375) Benefit payments (37,138)

Change in Net OPEB liability 42,434 Net OPEB liability, ending 800,192$

Covered payroll 3,773,197$ Total OPEB liability as a percentage of covered payroll 21.21% OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended Town of Bethany, the Town recognized OPEB expense of $78,374. At June 30, 2018, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows of Resources

Deferred Inflows of Resources

Differences between expected and actual 22,282$ -$ Net difference between projected and act - - Changes of assumptions or other inputs - 23,865

Total 22,282$ 23,865$

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 57 -

Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

2019 100$ 2020 100 2021 100 2022 100 2023 100

Thereafter 1,083 1,583$

Note 11– Contingent Liabilities Litigation The Town is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the Town’s counsel the resolution of these matters will not have a material adverse effect on the financial condition of the Town. Grants The Town participates in various Federal and State grant programs. These programs are subject to program compliance audits pursuant to the Federal and State Single Audit Acts. The amount of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although the Town anticipates such amounts, if any, to be immaterial. School Building Grants Section 10-283(a)(3)(A) of the Connecticut General Statutes states that if the town abandons, sells, leases, demolishes, or otherwise redirects the use of a school building project authorized on or after July 1, 1996, paid partially with State funding, to other than a public school, will owe a portion of the State funding back to the State. For projects with a cost of over $2,000,000, the contingency will be amortized over 20 years. For smaller projects, the contingency will be amortized over 10 years. Note 12 – Risk Management The Town is exposed to various risks of loss involving torts, theft of, damage to, and destruction of assets, errors and omissions, and natural disasters for which the Town carries commercial insurance. There have been no significant reductions in insurance coverage. Settlement amounts have not exceeded insurance coverage for the current year or three prior years. The Town currently is a member of the Connecticut Interlocal Risk Management Agency (CIRMA), a public entity risk pool established under the provisions of Connecticut General Statutes Section 7-479a et. seq. for some of its insurance. The Town is liable only for contributions to the pool. Members do not retain the risk of loss, as they have transferred the risk by purchasing coverage with no deductible retention. A separate

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 58 -

agreement states limits on the member's obligation to pay indemnification obligations and expenses should CIRMA be unable to do so. Note 13– Prior Period Adjustment The City implemented GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions during the year ended June 30, 2018. The standard requires that the beginning balance of the OPEB obligation be restated. In addition, there were errors related to the net pension liability, encumbrances and interfund activity as follows:

OPEB LiabilityNet Pension

Liability

Budgetary Basis-Fund

balance Net AssetsOPEB

Expense

Balance at June 30, 2017, before restatement 1,203,085$ 214,628$ 3,947,026$ 26,033,605$ -$ OPEB balance (GASB 75) adjustment (445,327) - - 445,327 - Restatement of NPL - - - - To correct errors related to encumbrances - - 190,488 - - To correct error related to interfund activity - - (46,512) - - Balance at June 30, 2017, as restated 757,758$ 214,628$ 4,091,002$ 26,478,932$ -$ Note 14 – Recently Issued Accounting Standards The Governmental Accounting Standards Board (GASB) has issued several pronouncements that have effective dates that may impact future financial presentations. Management has not currently determined what, if any, impact implementation of the following statements may have on the financial statements, except for GASB Statement No. 75, which will most likely have a material impact, though the amount has not yet been determined: GASB Statement No. 83, Certain Asset Retirement Obligations. This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. The requirements of this Statement are effective for reporting periods beginning after June 15, 2018. GASB Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or equivalent arrangement that meets specific criteria. The requirements of this Statement are effective for reporting periods beginning after December 15, 2018.

TOWN OF BETHANY, CONNECTICUT NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2018

- 59 -

GASB Statement No. 87, Leases. This Statement improves the accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Note 15 – Subsequent Events On August 6, 2018, the Town issued $3,230,000 of general obligation bonds notes with an annual interest rate ranging from 3.0% to 5.0% payable at maturity. Bond payments start on February 2019 and are semiannually thereafter.

Town of Bethany, Connecticut

Required Supplementary Information

June 30, 2018

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Town of Bethany, Connecticut Supplementary Information

June 30, 2018

TOWN OF BETHANY, CONNECTICUT GENERAL FUND

SCHEDULE OF REVENUES BUDGET AND ACTUAL

FOR THE YEAR ENDED JUNE 30, 2018

See accompanying Independent Auditors' Report. - 67 -

Original Transfers Final Actual

Variance with Final Budget Positive

(Negative)

Property Taxes:Property tax levy - current 20,646,684$ -$ 20,646,684$ 20,336,413$ (310,271)$ Property tax levy - prior years 150,000 - 150,000 164,891 14,891

20,796,684 - 20,796,684 20,501,304 (295,380) Intergovernmental:

Education grants (GTB/ECS) 810,951 - 810,951 1,742,788 931,837 School building grant - - - 56,814 56,814 Town aid roads 211,061 - 211,061 211,024 (37) PILOT - exempt property 12,175 - 12,175 8,585 (3,590) Local capital improvements 48,700 - 48,700 89,126 40,426 PILOT - state owned property 24,765 - 24,765 5,368 (19,397) Mashantucket Pequot grant 15,440 - 15,440 15,440 - PILOT - veterans - - - 6,568 6,568 Disability exemption - - - 254 254 Police grant - - - 17,720 17,720 Other grants - - - (7,950) (7,950) Municipal revenue sharing 263,295 - 263,295 74,145 (189,150) Connecticut state library grant - - - 4,000 4,000 Judicial grant - - - 1,957 1,957

1,386,387 - 1,386,387 2,225,839 839,452

Interest earnings:Interest and lien fees 75,000 - 75,000 96,801 21,801 Interest earned 30,000 - 30,000 49,029 19,029

105,000 - 105,000 145,830 40,830

Local:Park and recreation fees 115,000 - 115,000 147,505 32,505 Building permits 60,000 - 60,000 162,561 102,561 Town Clerk fees 20,000 - 20,000 14,984 (5,016) Veterans Park rental 12,000 - 12,000 23,520 11,520 Pavillion rentals 1,500 - 1,500 4,910 3,410 Inland Wetlands permits 9,000 - 9,000 10,393 1,393 Zoning and subdivision permits 10,000 - 10,000 10,384 384 Zoning Board of Appeals 750 - 750 - (750) Pistol and vendors 3,000 - 3,000 2,660 (340) Dog license fees 250 - 250 404 154

231,500 - 231,500 377,321 145,821

Other:PILOT - South Central Water Authority 311,000 - 311,000 322,836 11,836 Real estate conveyance tax 50,000 - 50,000 63,288 13,288 Cellular tower 35,000 - 35,000 39,637 4,637 Telephone access grant - - - 11,929 11,929 Ordinance and copy sales 8,000 - 8,000 9,967 1,967 Town hall, airport, and school rental 3,000 - 3,000 - (3,000) Amity District #5 refund 100,000 - 100,000 370,801 270,801 Miscelleanous 212,839 - 212,839 39,240 (173,599)

719,839 - 719,839 857,698 137,859

TOTAL REVENUES 23,239,410$ -$ 23,239,410$ 24,107,992$ 868,582$

Budgeted Amounts

TOWN OF BETHANY, CONNECTICUT GENERAL FUND

SCHEDULE OF REVENUES BUDGET AND ACTUAL

FOR THE YEAR ENDED JUNE 30, 2018

See accompanying Independent Auditors' Report. - 68 -

Original Transfers Final Actual

Variance with Final Budget Positive

(Negative)

General GovernmentSelectmen 163,788$ -$ 163,788$ 158,555$ 5,233$ Finance department 120,944 - 120,944 112,297 8,647 Town Hall computers 38,000 - 38,000 36,417 1,583 Veterans Memorial Park 57,449 - 57,449 101,006 (43,557) Registrars of Voters 20,148 - 20,148 9,207 10,941 Board of Finance 4,231 - 4,231 4,672 (441) Town audit 25,000 - 25,000 17,500 7,500 Assessor 83,343 - 83,343 67,660 15,683 Board of Assessment Appeals 909 - 909 - 909 Tax Collector 83,793 - 83,793 106,163 (22,370) Town Treasurer 4,016 - 4,016 2,157 1,859 Town Counsel 62,201 - 62,201 59,280 2,921 Town Clerk 146,310 - 146,310 145,966 344 Land Use Department 219,001 - 219,001 201,645 17,356 Operation Town Hall 158,205 - 158,205 156,095 2,110 Zoning Board of Appeals 3,775 - 3,775 197 3,578 Economic Development Commission - - - - - Probate Court 1,000 - 1,000 - 1,000 Conservative Commission 500 - 500 591 (91) Council of Small Towns 825 - 825 870 (45) Regional growth partnership 1,669 - 1,669 1,669 - Council of Governments 1,600 - 1,600 1,600 - State library grant expenditures - - - - - Fire Department - gas and diesel 9,000 - 9,000 10,121 (1,121) Fire Department - fuel 38,000 - 38,000 20,453 17,547 Board of Education - fuel oil and gasoline 32,000 - 32,000 22,630 9,370 Connecticut Conference of Municipalities 3,332 - 3,332 3,270 62

1,279,039 - 1,279,039 1,240,021 39,018

Public SafetyFire protection and equipment maintenanc 221,275 - 221,275 221,275 - Hydro/air packs testing - - - - - Firemen's physicals 15,000 - 15,000 12,815 2,185 C-Med 41,750 - 41,750 41,268 482 Fire marshal and emergency management 145,227 - 145,227 136,282 8,945 Police, constables, and resident trooper 296,568 - 296,568 273,844 22,724 Dog damage - - - - - District animal control 50,000 - 50,000 49,249 751 Fire hydrant 3,000 - 3,000 3,177 (177)

772,820 - 772,820 737,910 34,910

Public Works:Road foreman and labor 489,143 - 489,143 455,001 34,142 Major road resurfacing 877,000 - 877,000 914,310 (37,310) Snow and ice removal 225,000 - 225,000 274,387 (49,387) Road materials 150,000 - 150,000 111,211 38,789 Garage expense 48,500 - 48,500 68,430 (19,930) Repairs and supplies 123,000 - 123,000 99,378 23,622 Street lights 11,900 - 11,900 11,029 871 Contracted services 42,800 - 42,800 60,924 (18,124) Road signs 10,000 - 10,000 6,027 3,973 Consulting engineer 20,000 - 20,000 3,650 16,350 Tree services 100,000 - 100,000 102,466 (2,466) Tornado 20,000 - 20,000 - 20,000

2,117,343 - 2,117,343 2,106,813 10,530

TOWN OF BETHANY, CONNECTICUT GENERAL FUND

SCHEDULE OF REVENUES BUDGET AND ACTUAL

FOR THE YEAR ENDED JUNE 30, 2018

See accompanying Independent Auditors' Report. - 69 -

Original Budget Transfers Final Budget

Actual Budgetary

Basis

Variance with Final Budget Positive

(Negative) Health:

Solid waste disposal 382,435 - 382,435 355,437 26,998 Vital statistics 100 - 100 - 100 Bethany summer league 4,500 - 4,500 3,053 1,447 Park and Recreation Commission 208,282 - 208,282 230,954 (22,672) Domestic violence 500 - 500 500 - Elderly grant - - - - - TEAM 5,000 - 5,000 5,000 - Regional mental health 276 - 276 276 - Quinnipiack Valley Health District 31,683 - 31,683 31,683 - EMS council - - - 0 - Greater New Haven Transit 3,685 - 3,685 5,782 (2,097)

636,461 - 636,461 632,685 3,776 Human Services: 101,592 - 101,592 84,431 17,161

Community Services:Library 249,000 - 249,000 247,754 1,246 Airport 1,400 - 1,400 2,862 (1,462) LOCIP 48,700 - 48,700 15,463 33,237 Care of cemeteries 8,000 - 8,000 - 8,000 Contingency fund 30,000 - 30,000 24,131 5,869 Miscellaneous and tax refunds - - - 138,213 (138,213) Unemployment 8,000 - 8,000 - 8,000 Transfer to Captial Reserve Fund 279,012 - 279,012 279,012 - Youth services 15,411 - 15,411 15,411 - Land Acquisition Fund 100,000 - 100,000 100,000 -

739,523 - 739,523 822,846 (83,323)

Insurance and Benefits:Payroll taxes 125,000 - 125,000 124,080 920 General insurance 240,000 - 240,000 218,354 21,646 Employee medical insurance 516,150 - 516,150 465,014 51,136 Town employees' investment fund 114,000 - 114,000 105,843 8,157 Firemen's retirement 20,000 - 20,000 20,000 -

1,015,150 - 1,015,150 933,291 81,859

Debt Service:Major road resurfacing debt service - - - - - Principal 86,756 - 86,756 - 86,756 Interest 340,161 - 340,161 333,559 6,602

426,917 - 426,917 333,559 93,358

Regional High School 9,495,632 - 9,495,632 9,341,182 154,450 Elementary School 6,654,933 - 6,654,933 6,586,521 68,412

TOTAL EXPENDITURES 23,239,410$ -$ 23,239,410$ 22,819,259$ 420,151$

TOWN OF BETHANY, CONNECTICUT NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET

JUNE 30, 2018

See accompanying Independent Auditors' Report. - 70 -

Special Revenue

Funds Capital Project

Funds Total ASSETS Cash and equivalents 197,521$ 339,152$ 536,673$ Other receivables:

Loans 89,988 - 89,988 Intergovernmental 4,658 - 4,658 Other - - -

Due from other funds 115,169 58,666 173,835 Inventories 2,227 - 2,227

Total Assets 409,563$ 397,818$ 807,381$ LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLiabilities

Accounts payable 5,141$ -$ 5,141$ Unearned revenue 1,121 16,391 17,512 Due to other funds - 6,169 6,169

Total Liabilities 6,262 22,560 28,822

Deferred Inflows of ResourcesUnavailable revenue 91,315 - 91,315

Fund BalancesNonspendable 2,227 - 2,227 Restricted 15,417 89,862 105,279 Assigned 294,342 285,396 579,738

Total fund balances 311,986 375,258 687,244

Total liabilities, deferred inflows of resources,and fund balances 409,563$ 397,818$ 807,381$

TOWN OF BETHANY, CONNECTICUT SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET

FOR THE YEAR ENDED JUNE 30, 2018

See accompanying Independent Auditors' Report. - 71 -

Special Revenue Funds

Capital Project Funds Total

Revenues:Intergovernmental 289,766$ -$ 289,766$

Local 264,680 - 264,680 Other 25,830 4,275 30,105 Interest earnings 868 3,634 4,502

Total revenues 581,144 7,909 589,053

Expenditures:Current expenditures:

General government 1,986 - 1,986 Public safety 149,640 - 149,640 Education 365,758 - 365,758

Capital outlay - 3,800 3,800 Total expenditures 517,384 3,800 521,184

Excess of revenues over (under)expenditures 63,760 4,109 67,869

Other financing sources (uses):Transfers in (out) - 100,000 100,000

Net change in fund balances 63,760 104,109 167,869

Fund balances, beginning of year 248,226 271,149 519,375

Fund balances, end of year 311,986$ 375,258$ 687,244$

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TOWN OF BETHANY, CONNECTICUT CAPITAL PROJECT FUNDS

COMBINING BALANCE SHEET JUNE 30, 2018

See accompanying Independent Auditors' Report. - 74 -

Land Acquisittion

Fund Agriculure Grant Fund

Airport Property

Improvement Fund Total

AssetsCash and cash equivalents 291,565$ -$ 47,587 339,152$ Other receivables - - - -

Intergovernmental - - - - Due from other funds - 30,423 28,243 58,666

Total assets 291,565$ 30,423$ 75,830$ 397,818$

Liabilites and Fund BalancesLiabilites:Unearned revenue -$ -$ 16,391 16,391$ Due to other funds 6,169 - - 6,169

Total Liabilites 6,169 - 16,391 22,560

Fund Balances:Restricted - 30,423 59,439 89,862 Assigned 285,396 - - 285,396

Total fund balances 285,396 30,423 59,439 375,258

Total liabilities and fund balances 291,565$ 30,423$ 75,830$ 397,818$

TOWN OF BETHANY, CONNECTICUT AGENCY FUNDS

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED

FOR THE YEAR ENDED JUNE 30, 2018

See accompanying Independent Auditors' Report. - 75 -

Land Acquisition

Fund Agriculure Grant Fund

Airport Property

Improvement Fund Total

Revenues:Intergovernmental -$ -$ -$ -$ Other - - 4,275 4,275 Interest earnings 3,634 - - 3,634

Total revenues 3,634 - 4,275 7,909

Expenditures:Current expenditures:

General government - - - - Capital outlay 3,800 - - 3,800

Total expenditures 3,800 - - 3,800

Excess of revenues overexpenditures (166) - 4,275 4,109

Other financing sources (uses):Transfers in (out) 100,000 - - 100,000

Net change in fund balances 99,834 - 4,275 104,109

Fund balances, beginning of year 185,562 30,423 55,164 271,149

Fund balances, end of year 285,396$ 30,423$ 59,439$ 375,258$

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TOWN OF BETHANY, CONNECTICUT CAPITAL RESERVE FUND

SCHEDULE OF CHANGES IN FUND BALANCE BY PROJECT FOR THE YEAR ENDED JUNE 30, 2018

See accompanying Independent Auditors' Report. - 77 -

Beginning Debt Proceeds/ Internal EndingBalance Appropriations Revenues Expenditures Transfers Balance

Capital Reserve PortionCommitted fund balance:

Debt payments:Dump truck lease 10,514$ -$ -$ -$ -$ 10,514$ School furniture lease 315 - - - (315) - Security cameras lease 19,075 - - - (19,075) - Wireless infrastructure 551 - - - - 551 Mason truck lease 22,211 24,000 - (21,676) - 24,535 Truck with plow lease 9,294 10,512 - (12,396) - 7,410 Fire Marshall truck lease 12,378 12,000 - (12,440) - 11,938 Capital expenditures: Accounting software update 7,406 - - - - 7,406 GIS system 29,717 - - - (29,717) - Park pavilion 35,033 - - - (30,033) 5,000 Revaluation 59,500 65,000 - (26,601) - 97,899 BVFD Engine 81 Pump Rebuild 12,922 - - - (12,922) - Schaffer Road Repair & Paving - - - - - - Rewrite Regulations 17,000 - - (5,000) - 12,000 Contaminated soil removal 83 - - - (83) - Fire station FOB entry system - - - - - - BVFD hurst tool 395 - - - (395) - Center station tank removal 2,050 - - - - 2,050 Library sidewalk repair 10,000 - - - - 10,000 Library heating system - 67,000 - (67,000) - - Fire Department hose replacement - 12,500 - - - 12,500 Repair Fire House roof leak - 10,000 - (9,850) - 150 BAA - Groomer - 12,000 - (12,000) - - Completed prior year project balances 2,307 - - - (2,307) - Education: Playscape 3,158 - - - - 3,158 Duct work cleaning 2,600 - - (2,600) - Well pump replacement 16,000 - - (15,520) - 480 Air handler 41,181 - - - (41,181) - Heating control system 511 - - - (511) - Student Data Privacy Software - 12,000 - (12,000) - - Carpet.Tile 4 classrooms - 22,000 - (19,325) - 2,675 Pre-K Playscape - 20,000 - (20,000) - - Town Hall : Oil tank replacement 35,000 - - (1,179) - 33,821 Field fence and gate 3,236 - - - (3,236) - Air conditioning 1,712 - - - - 1,712 Alarm 4,343 - - - - 4,343 North side roof 60 - - - (60) - Gym ceiling/safety lights 6,323 - - - (6,323) - Fire alarm system 3,199 - - - - 3,199 Replace water fountains - 5,000 (4,000) 1,000 BVFD communications system (364,781) 1,625,000 - (999,211) - 261,008 Tornado 140,655 140,655 A/C for server & commission room - 7,000 - - - 7,000

Total Committed Fund Balance 3,293 2,044,667 - (1,238,198) (148,758) 661,004 Assigned Fund Balance:

Future capital projects 183,752 - 4,343 - 148,758 336,853 Total capital reserve portion 187,045 2,044,667 4,343 (1,238,198) - 997,857

Bonded Projects PortionCommitted fund balance:

Fire truck 334,015 - - - - 334,015 School roof 429,461 - - (61,330) - 368,131

Total committed portion 763,476 - - (61,330) - 702,146

Total Fund Balance 950,521$ 2,044,667$ 4,343$ (1,299,528)$ -$ 1,700,003$

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BETHANY RECYCLING CENTER 755 Amity Road

Hours: Wednesday – 8:00 AM to 6:00 PM Friday & Saturday – 8:00 AM to 4:00 PM

MATERIALS ACCEPTED:

Newspapers and mixed paper – Newspaper inserts, magazines, books, clean milk & juice cartons, junk mail, Brown boxes and brown paper bags. (pizza boxes if CLEAN) Cardboard – Flattened corrugated (pizza boxes if CLEAN) Glass – Food and beverage containers only, clean, separated by color; NO window glass Plastic – Look for the recycling symbol on the bottom: #1 to #7 accepted. NO plastic bags, Styrofoam or bubble wrap Deposit cans, bottles, water bottles – Bethany Historical Society Trailer Scrap metal – All sorts (combine clean non-deposit cans with plastics) Light bulbs – Fluorescent (including CFL type), and LED E–waste – CEDs (Covered Electronic Devices) such as personal computers, monitors, laptops, printers, CRT based TVs and non-CRT TVs sold to consumers, audio equipment (not including speakers) Uncontaminated waste motor oil – Separate container (oil only) must be tested first by attendant Antifreeze – Separate containers (not contaminated) Batteries – Automobile type, NiCad, lithium, alkaline, etc. Appliances – For large appliances, see attendant. $10.00 fee for refrigerators, air conditioners and dehumidifiers (fee applies to any unit with refrigerant gas) Tires – Car tires $5.00 fee and light truck tires $6.00 fee; No rims (discard rims with scrap metal) Dry Mattresses and box springs – see attendant; some restrictions apply Bulky waste – By appointment only – call 203-393-1555 NOT ACCEPTED AT THE CENTER: Leaves and brush Hazardous household materials – 203-401-2712 or www.rwater.com/products-and-services/hazwaste-central Paints – For disposal call 855-724-6809 or visit www.paintcare.org Construction debris – Please arrange with private hauler. Plastic bags – Most grocery stores, Walmart, Target, Lowe’s, www.plasticfilmrecycling.org Propane tanks – Blue Rhino Medications – State Police Troop I (631 Amity Road) More Recycling Resources – www.earth911.com www.call2recycle.org www.ct.gov/deep Please call the Town Garage if you have questions – 203-393-1555

1/2019