FISCAL YEAR 2023 ANNUAL REPORT (PDF)_Part2

Appendix A 
 

TOWN OF WATERFORD, CONNECTICUT 
ANNUAL COMPREHENSIVE 
FINANCIAL REPORT 
YEAR ENDED JUNE 30, 2023 

 
 
 
 
 
TOWN OF WATERFORD, CONNECTICUT 
 
ANNUAL COMPREHENSIVE FINANCIAL REPORT 
 
YEAR ENDED JUNE 30, 2023 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPARTMENT OF FINANCE 
 
KIMBERLY ALLEN 
 
DIRECTOR OF FINANCE

 
 
 
INTRODUCTORY SECTION 
 

TOWN OF WATERFORD, CONNECTICUT 
TABLE OF CONTENTS 
YEAR ENDED JUNE 30, 2023 
 
 
 
 
INTRODUCTORY SECTION 
LETTER OF TRANSMITTAL 
I 
LIST OF ELECTED AND APPOINTED OFFICIALS 
V 
ORGANIZATION CHART 
VI 
FINANCIAL SECTION 
INDEPENDENT AUDITORS’ REPORT 
8 
MANAGEMENT’S DISCUSSION AND ANALYSIS 
12 
BASIC FINANCIAL STATEMENTS 
EXHIBITS 
GOVERNMENT-WIDE FINANCIAL STATEMENTS 
STATEMENT OF NET POSITION 
I 
23 
STATEMENT OF ACTIVITIES 
II 
24 
FUND FINANCIAL STATEMENTS 
GOVERNMENTAL FUNDS 
BALANCE SHEET 
III 
25 
STATEMENT OF REVENUES, EXPENDITURES, AND 
CHANGES IN FUND BALANCES 
IV 
27 
PROPRIETARY FUND 
STATEMENT OF NET POSITION 
V 
29 
STATEMENT OF REVENUES, EXPENSES, AND CHANGES 
IN NET POSITION 
VI 
30 
STATEMENT OF CASH FLOWS 
VII 
31 
FIDUCIARY FUNDS 
STATEMENT OF FIDUCIARY NET POSITION 
VIII 
32 
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 
IX 
33 
NOTES TO FINANCIAL STATEMENTS 
34 
REQUIRED SUPPLEMENTARY INFORMATION 
GENERAL FUND 
SCHEDULE OF REVENUES AND OTHER FINANCING 
SOURCES – BUDGET AND ACTUAL 
RSI-1 
92 

TOWN OF WATERFORD, CONNECTICUT 
TABLE OF CONTENTS 
YEAR ENDED JUNE 30, 2023 
 
 
 
 
SCHEDULE OF EXPENDITURES AND OTHER FINANCING 
USES – BUDGET AND ACTUAL 
RSI-2 
94 
PENSION TRUST FUNDS 
SCHEDULE OF CHANGES IN NET PENSION LIABILITY 
AND RELATED RATIOS – PENSION TRUST FUND 
RSI-3 
100 
SCHEDULE OF EMPLOYER CONTRIBUTIONS – PENSION 
TRUST FUND 
RSI-4 
101 
SCHEDULE OF INVESTMENT RETURNS – TOWN 
PENSION PLAN 
RSI-5 
102 
SCHEDULE OF THE DISTRICT’S PROPORTIONATE 
SHARE OF THE NET PENSION LIABILITY – MUNICIPAL 
EMPLOYEES RETIREMENT SYSTEM 
RSI-6 
103 
SCHEDULE OF EMPLOYER CONTRIBUTIONS – 
MUNICIPAL EMPLOYEES RETIREMENT SYSTEM 
RSI-7 
104 
SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE 
OF THE NET PENSION LIABILITY – TEACHERS 
RETIREMENT SYSTEM 
RSI-8 
105 
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND 
RELATED RATIOS – OPEB TRUST FUND 
RSI-9 
106 
SCHEDULE OF EMPLOYER CONTRIBUTIONS – OPEB 
TRUST FUND 
RSI-10 
107 
SCHEDULE OF INVESTMENT RETURNS – OPEB TRUST 
FUND 
RSI-11 
108 
SCHEDULE OF THE TOWN’S PROPORTIONATE SHARE 
OF THE NET OPEB LIABILITY – TEACHERS 
RETIREMENT SYSTEM 
RSI-12 
109 
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 
GENERAL FUND 
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES 
COMPARED WITH APPROPRIATIONS 
A-1 
113 
REPORT OF PROPERTY TAX COLLECTIONS 
A-2 
114 
SCHEDULE OF WATER MAIN ASSESSMENTS 
RECEIVABLE 
A-3 
115 
SCHEDULE OF SEWER ASSESSMENTS RECEIVABLE 
A-4 
116 
NONMAJOR GOVERNMENTAL FUNDS 
COMBINING BALANCE SHEET 
B-1 
121 
COMBINING STATEMENT OF REVENUES, 
EXPENDITURES, AND CHANGES IN FUND BALANCES 
B-2 
127 

TOWN OF WATERFORD, CONNECTICUT 
TABLE OF CONTENTS 
YEAR ENDED JUNE 30, 2023 
 
 
 
 
FIDUCIARY FUNDS 
COMBINING STATEMENT OF FIDUCIARY NET POSITION – 
PENSION AND OTHER EMPLOYEE BENEFIT TRUST 
FUNDS 
C-1 
134 
COMBINING STATEMENT OF CHANGES IN FIDUCIARY 
NET POSITION – PENSION AND OTHER EMPLOYEE 
TRUST FUNDS 
C-2 
135 
STATISTICAL SECTION 
TABLES 
FINANCIAL TRENDS 
NET POSITION BY COMPONENT 
1 
138 
CHANGES IN NET POSITION 
2 
139 
FUND BALANCES – GOVERNMENTAL FUNDS 
3 
141 
REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – 
GOVERNMENTAL FUNDS 
4 
142 
REVENUE CAPACITY 
ASSESSED VALUE AND ESTIMATED ACTUAL OF TAXABLE 
PROPERTY 
5 
143 
PRINCIPAL PROPERTY TAXPAYERS 
6 
144 
PROPERTY TAX LEVIES AND COLLECTIONS 
7 
145 
DEBT CAPACITY 
RATIOS OF OUTSTANDING DEBT BY TYPE 
8 
146 
SCHEDULE OF DEBT LIMITATION 
9 
147 
LEGAL DEBT MARGIN INFORMATION 
10 
148 
DEMOGRAPHIC AND ECONOMIC STATISTICS 
DEMOGRAPHIC AND ECONOMIC STATISTICS 
11 
149 
PRINCIPAL EMPLOYERS 
12 
150 
OPERATING INFORMATION 
FULL-TIME EQUIVALENT GOVERNMENT EMPLOYEES BY 
FUNCTION/PROGRAM 
13 
151 
OPERATING INDICATORS BY FUNCTION/PROGRAM 
14 
152 
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM 
15 
153 
 

 
(i) 
 
December 20, 2023 
 
 
To the Honorable First Selectman, Representative Town Meeting and the Citizens of the Town 
of Waterford: 
 
State law requires that every general-purpose local government publish within six months of the 
close of each fiscal year a complete set of audited financial statements.  This report is published 
to fulfill that requirement for the fiscal year ended June 30, 2023. 
 
Management assumes full responsibility for the completeness and reliability of the information 
contained in this report, based upon a comprehensive framework of internal control that it has 
established for this purpose.  Because the cost of internal control should not exceed anticipated 
benefits, the objective is to provide reasonable, rather than absolute, assurance that the 
financial statements are free of any material misstatements. 
 
CliftonLarsonAllen LLP (CLA), Certified Public Accountants, have issued an unqualified opinion 
on the Town of Waterford financial statements for the year ended June 30, 2023.  The 
independent auditors’ report is located at the front of the financial section of this report. 
 
Management Discussion and Analysis (MD&A) immediately follows the independent auditor’s 
report and provides a narrative introduction, overview and analysis of the basic financial 
statements.  The MD&A complements this letter of transmittal and should be read in conjunction 
with it. 
 
Profile of the Government 
 
Waterford was incorporated in 1801.  Covering an area of 33.2 square miles, the Town is 
located in the southeastern region of the state.  Waterford is bordered by the Towns of East 
Lyme to the west, New London, Groton and Ledyard to the east, and Montville to the north.  It 
borders Long Island Sound to the south.  
 
The Town has a Selectmen/Board of Finance/Representative Town Meeting form of 
government.  The Representative Town Meeting exercises the legislative authority of the Town.  
The Board of Selectmen is composed of three members who are elected at large for four-year 
terms.  The Representative Town Meeting is elected for two-year terms.  The First Selectman is 
the head of the administrative branch of the Town Government and is responsible to the 
Representative Town Meeting for the administration of all affairs relating to the Town. 
 
The Town of Waterford provides a full range of services, including police and fire protection; the 
construction and maintenance of highways, streets and other infrastructure; municipal solid 
waste and recycling collection; recreational and cultural activities.  The Town’s one business-
type activity, municipal water and sewer services, are provided through the Town’s Utility 
Commission. 
 

 
(ii) 
By Charter, the Representative Town Meeting must hold its Town Budget Meeting no later than 
the first Monday in May each year.  If, within fifteen days of the budget adoption no referendum 
is called, the budget is considered approved.  The annual budget serves as the foundation for 
Town of Waterford financial planning and control.  The budget is prepared by 
Department/Agency at an object level.  With the exception of the Police, Recreation and Parks, 
Senior Services, Utility and Planning and Zoning Commissions, Board of Finance, Board of 
Education, Board of Assessment Appeals, Zoning Board of Appeals, Building Board of Appeals, 
Economic Development Commission, Flood & Erosion Control Board, Conservation 
Commission, Retirement Commission, Harbor Management Commission and Ethics 
Commission, all other Town Boards, Commissions or agencies report to the Board of 
Selectmen.  The Board of Selectmen, however, reviews and recommends to the Board of 
Finance the level of appropriation for all municipal budgets with the exception of the Board of 
Education. All budget transfers within series are approved by the Board of Selectmen.  
Transfers out of series, however, require special approval from the Board of Finance. 
 
Local Economy 
 
Waterford is unique in that its major taxpayer is a nuclear power facility.  However, numerous, 
large retail sales outlets, a production/software development company, several assisted care 
facilities and numerous financial institutions provide a good mix to tax base diversification.  The 
Waterford Tax Base has a diversified tax base with immediate access to Routes 1, 95, 395 and 
85 all of which are major Connecticut arteries.  
 
Below are specific updates for Waterford’s local economy. 
 
Dominion Power Facility (Millstone) 
 
 
Impact Analysis Completed 
 
Increase Economic development 
 
Viable Tax payer for at least ten years – Declining tax revenue 
 
10-Year Deal 
 
$50M in updates since agreement signed in January 2019 
 
Economic Development Commission Master Plan 
 
 
EDC will be working with a consultant to set specific goals and implementation 
actions for the short (1-2 year), mid (3-5 year) and long (5-10 year) terms. 
 
Regulation Amendments 
 
 
Various zoning regulation amendments including updates to Outdoor Dining and 
Parking at multifamily residential properties to facilitate new projects. 
 
Crystal Mall 
 
 
Ongoing conversation with the ownership interests at the property to modify zoning 
to support future mixed use development. 

 
(iii) 
New Developments 
 
 
Redevelopment of the Mobile Gas Station and Starbucks Drive-thru on Rte. 85 
completed. Land use permits in place to expand the site to include a car wash. 
 
Site work beginning for 40 affordable apartments on Rte. 85 
 
Work ongoing for apartment complex on Willets Avenue 
 
Approvals granted for new cafe at Mago Point 
 
Approval of self-storage facility on Rte. 85 
 
New Industry 
 
 
Approval granted for Safe Futures on Rte. 85 
 
Electric Boat 
 
 
$5.1B Navy Contract – estimated 2,000 to 5,000 jobs 
 
Building of Columbia Class Submarines to begin in 2023 
 
Current impact – Increased housing activity 
 
Long Term Financial Planning 
 
In 1998 the Representative Town Meeting formed its Long Range Fiscal Planning Committee.  
In FY01 the Board of Finance appointed an Ad Hoc Long-Range Fiscal Planning Committee to 
analyze the town’s future economic growth, revenue streams and project expenditures for the 
financial planning moving forward.  This proactive approach to long-range operational budget 
planning, combined with multi-year capital planning, has become an effective budgetary 
management tool.  The Long-Range Fiscal Planning Committee remains active and is in the 
process of developing an updated long-term financial plan based of GFOA guidelines. 
 
The Town implemented a Fleet Management Program that served as the basis for sizing the 
fleet and provided a 5-year approach to managing a fleet valued in excess of $4.4 million.  This 
program allows the Town to undertake a needs assessment of its rolling stock, and based upon 
established life-cycle parameters, provided a forty-year replacement plan that uses a 
combination of residual values, investment income, vehicle rental revenues and an equalized 
level of budget over a sustained period of time to fund all rolling stock replacements. 
 
Major Initiatives 
 
In compliance with GASB 54 and to strengthen Waterford’s commitment to sound financial 
management and fiscal accountability, the Town still maintains the adopted fund balance policy 
from 2015.  In that regard, the Town’s 2023 Audited Financial Waterford has an Unassigned 
Fund Balance of $26,086,355. 
 
Increase School Enrollment 
 
 
Attract students from neighboring districts to Waterford High School on a tuition basis 

 
(iv) 
Eco Friendly Town 
 
 
Achieved Bronze Certificate as a Sustainable CT Community 
 
Land Preservation  
 Easements, Purchase and Donations 
 
Plan of Conservation and Development 
 Energy audit of buildings 
 RTM Ad Hoc Energy Task Force Created 
 
Affordable Housing Plan 
 
 
Assessing housing needs for the future 
 The town continues to collect data to fit into regional area needs 
 
Town Center Improvements (“Main Street”) 
 
 
Committee Formed in June 2020 
 
Support Infrastructure for Farmer’s Market 
 
Improved Recreational Amenities 
 Accessible walking paths, sidewalks and boardwalks 
 
Improved Fiber Connectivity 
 
Board of Selectman adoption of the Community Waterford Park Master Plan 
 
Acknowledgements 
 
Although the preparation of the comprehensive annual financial report is primarily the 
responsibility of the Director of Finance, it could not have been accomplished without the 
support of numerous town staff.  Special recognition goes to the Finance department staff.  
Without their dedication, oversight and hard work the Town could never have achieved this 
prestigious award.  I appreciate the unflagging support of First Selectman Robert Brule, 
Superintendent of Schools Thomas Girard and his staff, as well as, the entire Board of 
Selectmen, Board of Finance and the Representative Town Meeting who continually show their 
commitment to fiscal integrity and financial leadership. 
 
Respectfully submitted, 
 
Kimberly Allen 
 
 
Kimberly Allen 
Director of Finance 
 

TOWN OF WATERFORD, CONNECTICUT 
PRINCIPAL TOWN OFFICIALS 
JUNE 30, 2023 
 
 
 
v 
 
Robert J. Brule, Jr.  
First Selectman  
Thomas W. Giard III 
Superintendent of Schools  
Kimberly Allen  
Director of Finance 
Abbas Danesh  
Treasurer 
Jonathan Mullen 
Planning Director 
Gary Schneider  
Director of Public Works 
Marc Balestracci  
Chief of Police 
James Bartelli 
Chief Engineer, Utilities Commission 
Alan Wilensky 
Tax Collector 
Paige Walton 
Assessor 
Ryan McNamara 
Recreation and Parks Director 
David Campo  
Town Clerk 
Daniela Gorman  
Director of Human Services 
Steve Cardelle 
Building Official 
Christine Johnson  
Library Director 
Michael Howley 
Director of Fire Services 
Christine Walters 
Director of Human Resources 
 
 
 

TOWN OF WATERFORD, CONNECTICUT 
ORGANIZATION CHART 
JUNE 30, 2023 
 
 
 
vi 
 
 
 

 
7 
FINANCIAL SECTION 
 

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(8) 
INDEPENDENT AUDITORS’ REPORT 
Board of Finance 
Town of Waterford, Connecticut 
Report on the Audit of the Financial Statements 
Opinions 
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the Town of 
Waterford, Connecticut, as of and for the year ended June 30, 2023, and the related notes to the 
financial statements, which collectively comprise the Town of Waterford, Connecticut‘s basic financial 
statements as listed in the table of contents. 
In our opinions, the financial statements referred to above present fairly, in all material respects, the 
respective financial position of the governmental activities, the business-type activities, each major 
fund, and the aggregate remaining fund information of the Town of Waterford, Connecticut, as of 
June 30, 2023, and the respective changes in financial position, and, where applicable, cash flows 
thereof for the year then ended in accordance with accounting principles generally accepted in the 
United States of America. 
Basis for Opinions 
We conducted our audit in accordance with auditing standards generally accepted in the United States 
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing 
Standards, issued by the Comptroller General of the United States. Our responsibilities under those 
standards are further described in the Auditors’ Responsibilities for the Audit of the Financial 
Statements section of our report. We are required to be independent of the Town of Waterford, 
Connecticut, and to meet our other ethical responsibilities, in accordance with the relevant ethical 
requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and 
appropriate to provide a basis for our audit opinions. 
Responsibilities of Management for the Financial Statements 
Management is responsible for the preparation and fair presentation of the financial statements in 
accordance with accounting principles generally accepted in the United States of America, and for 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. 

Board of Finance 
Town of Waterford, Connecticut 
(9) 
In preparing the financial statements, management is required to evaluate whether there are conditions 
or events, considered in the aggregate, that raise substantial doubt about the Town of Waterford, 
Connecticut‘s ability to continue as a going concern for twelve months beyond the financial statement 
date, including any currently known information that may raise substantial doubt shortly thereafter. 
Auditors’ Responsibilities for the Audit of the Financial Statements 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole 
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that 
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance 
and, therefore, is not a guarantee that an audit conducted in accordance with GAAS and Government 
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a 
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may 
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 
Misstatements are considered material if there is a substantial likelihood that, individually or in the 
aggregate, they would influence the judgment made by a reasonable user based on the financial 
statements. 
In performing an audit in accordance with GAAS and Government Auditing Standards, we: 

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.

Obtain an understanding of internal control relevant to the audit 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 Town of Waterford, Connecticut‘s internal control. Accordingly,
no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about Town of Waterford, Connecticut‘s ability to continue as a
going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, 
the planned scope and timing of the audit, significant audit findings, and certain internal control related 
matters that we identified during the audit. 

Board of Finance 
Town of Waterford, Connecticut 
(10) 
Required Supplementary Information 
Accounting principles generally accepted in the United States of America require that the 
management’s discussion and analysis, the budgetary comparison information and the pension and 
OPEB schedules as listed in the table of contents, be presented to supplement the basic financial 
statements. Such information is the responsibility of management and, 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 GAAS, 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. 
Supplementary Information 
Our audit was conducted for the purpose of forming opinions on the financial statements that 
collectively comprise the Town of Waterford, Connecticut’s basic financial statements. The combining 
and individual nonmajor fund financial statements and schedules are presented for purposes of 
additional analysis and are not a required part of the basic 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 basic financial statements. The 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 GAAS. In our opinion, the combining 
and individual nonmajor fund financial statements and schedules are fairly stated, in all material 
respects, in relation to the basic financial statements as a whole. 
Other Information 
Management is responsible for the other information included in the annual report. The other 
information comprises the introductory and statistical sections but does not include the basic financial 
statements and our auditors’ report thereon. Our opinions on the basic financial statements do not 
cover the other information, and we do not express an opinion or any form of assurance thereon. 
In connection with our audit of the basic financial statements, our responsibility is to read the other 
information and consider whether a material inconsistency exists between the other information and the 
basic financial statements, or the other information otherwise appears to be materially misstated. If, 
based on the work performed, we conclude that an uncorrected material misstatement of the other 
information exists, we are required to describe it in our report. 

Board of Finance 
Town of Waterford, Connecticut 
(11) 
Other Reporting Required by Government Auditing Standards 
In accordance with Government Auditing Standards, we have also issued our report dated 
December 20, 2023, on our consideration of the Town of Waterford, Connecticut‘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 solely to describe the 
scope of our testing of internal control over financial reporting and compliance and the results of that 
testing, and not to provide an opinion on the effectiveness of the Town of Waterford, Connecticut‘s 
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 Town of Waterford, 
Connecticut‘s internal control over financial reporting and compliance. 
CliftonLarsonAllen LLP 
West Hartford, Connecticut 
December 20, 2023 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(12) 
 
This discussion and analysis of the Town of Waterford, Connecticut (the Town) financial performance is 
prepared by management to provide an overview of the Town’s financial activities for the fiscal year 
ended June 30, 2023.  Please read this MD&A in conjunction with the transmittal letter and the Town’s 
financial statements, Exhibits I to IX. 
 
FINANCIAL HIGHLIGHTS 
 
 
The Town’s net position decreased as a result of this year’s operations.  While net position of 
our business-type activities decreased by $973.0 thousand, or 2.0%, net position of our 
governmental activities increased by $280 thousand or 0.2 %. 
 
During the year, the Town had expenses that were $691 thousand more than the $125.7 million 
generated in tax and other revenues for governmental programs. 
 
In the Town’s business-type activities, revenues and transfers in decreased by $161 thousand 
or 3.6%, while expenses increased by $117 thousand or 2.3 %. 
 
The total cost of all of the Town’s programs was $126.4 million, with no new programs added 
this year. 
 
The General Fund reported a fund balance this year of $26.5 million. 
 
The resources available for appropriation were $5.4 million more than anticipated for the 
General Fund.  There were additional appropriations of $3.3 million, of which, $3.1 million was 
for transfers out to the Capital Improvement and Capital and Nonrecurring Funds.  Unused 
appropriations of $1.3 million were returned to fund balance at year end.  Overall, the operating 
results increased the General Fund balance by $3.4 million. 
 
OVERVIEW OF THE FINANCIAL STATEMENTS 
 
This annual report consists of a series of financial statements.  The statement of net position and the 
statement of activities (Exhibits I and II, respectively) 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 are 
presented in Exhibits III to IX.  For governmental activities, these statements 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 
information about activities for which the Town acts solely as a trustee or agent for the benefit of those 
outside of the government. 
 
Government-Wide Financial Statements 
 
Our analysis of the Town as a whole begins on Exhibits I and II.  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 in it.  Over time, increases or 
decreases in the Town’s net position are one indicator of whether its financial health is improving or 
deteriorating.  The reader needs to consider other non-financial factors, however, such as changes in 
the Town’s property tax base and the condition of the Town’s capital assets, to assess the overall 
health of the Town. 
 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(13) 
 
In the statement of net position and the statement of activities, we divide the Town into two types of 
activities: 
 
 
Governmental Activities - Most of the Town’s basic services are reported here, including 
education, public safety, public works, recreation, library, social services and general 
administration.  Property taxes, charges for services, and state and federal grants finance most 
of these activities. 
 
 
Business-Type Activities - The Town charges a fee to customers to help it cover all or most of 
the cost of certain services it provides.  The Town’s Utility Commission Enterprise Fund is 
reported here.   
 
Fund Financial Statements 
 
The fund financial statements begin with Exhibit III and provide detailed information about the most 
significant funds - not the Town as a whole.  Some funds are required to be established by Charter.  
However, the Board of Finance establishes many other funds to help control and manage money for 
particular purposes or to show that it is meeting legal responsibilities for using grants and other money 
(i.e., grants received for education from the State and Federal Government).  The Town’s funds are 
divided into three categories: governmental, proprietary and fiduciary. 
 
 
Governmental Funds (Exhibits III and IV) - Most of 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 to determine whether there are more or fewer financial 
resources that can be spent in the near future to finance the Town’s programs.  The relationship (or 
differences) between governmental activities (reported in the statement of net position and the 
statement of activities) and governmental funds is described in a reconciliation included with the 
fund financial statements. 
 
 
Proprietary Funds (Exhibits V to VII) - When the Town charges customers for the services it 
provides, whether to outside customers or to other units of the Town, these services are generally 
reported in proprietary funds.  Proprietary funds are reported in the same way that all activities are 
reported in the statement of net position and the statement of activities.  In fact, the Town’s 
enterprise fund (a component of proprietary funds) is the same as the business-type activities 
reported in the government-wide statements, but provide more detail and additional information, 
such as cash flows, for proprietary funds.  Internal service funds (the other component of 
proprietary funds) are used to report activities that provide supplies and services for the Town’s 
other programs and activities - such as the Town’s Insurance Administration Fund. 
 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(14) 
 
 
Fiduciary Funds (Exhibits VIII and IX) - The Town is the trustee, or fiduciary, for its employees’ 
pension plans.  It is also responsible for other assets that, because of a trust arrangement, can be 
used only for the trust beneficiaries.  All of the Town’s fiduciary activities are reported in separate 
statements of fiduciary net position and changes in fiduciary net position.  These activities are 
excluded 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. 
 
GOVERNMENT-WIDE FINANCIAL ANALYSIS 
 
The Town’s combined net position decreased from $212.7 to $212.0 million or 0.3 %.  The analysis 
below focuses on the net position (Table 1) and changes in net position (Table 2) of the Town’s 
governmental and business-type activities. 
 
Governmental
Business-Type
Activities
Activities
Total
2023
2022
2023
2022
2023
2022
Assets:
Current Assets 
65,926
$           
61,002
$           
6,764
$             
5,858
$             
72,690
$           
66,860
$           
Capital Assets, Net of
 Accumulated Depreciation
228,069
           
236,256
           
42,958
             
44,691
             
271,027
           
280,947
           
Total Assets
293,995
           
297,258
           
49,722
             
50,549
             
343,717
           
347,807
           
Deferred Outflows of Resources
19,058
             
12,765
             
-
                       
-
                       
19,058
             
12,765
             
Liabilities:
Long-Term Debt Outstanding   
128,623
           
116,220
           
364
                  
431
                  
128,987
           
116,651
           
Other Liabilities
13,680
             
13,886
             
586
                  
374
                  
14,266
             
14,260
             
Total Liabilities
142,303
           
130,106
           
950
                  
805
                  
143,253
           
130,911
           
Deferred Inflows of Resources
7,503
               
16,949
             
-
                       
-
                       
7,503
               
16,949
             
Net Position: 
Net Investment in Capital Assets
164,702
           
166,836
           
42,958
             
44,690
             
207,660
           
211,526
           
Restricted  
2,301
               
1,612
               
-
                       
-
                       
2,301
               
1,612
               
Unrestricted
(3,755)
              
(5,480)
              
5,814
               
5,054
               
2,059
               
(426)
                 
Total Net Position
163,248
$         
162,968
$         
48,772
$           
49,744
$           
212,020
$         
212,712
$         
 
Net position of the Town’s governmental activities increased by 0.2 % ($163.2 million in 2023 compared 
to $163.0 million in 2022).  Unrestricted net position - the part of net position that can be used to 
finance day-to-day operations without constraints established by debt covenants, enabling legislation or 
other legal requirements – increased by $1.7 million, ($5.5 million) in 2022 compared to ($3.8 million) at 
the end of this year. 
 
By far the largest portion of the Town’s net position is its investment in capital assets (e.g., land, 
buildings, machinery and equipment).  Since the Town’s investment in its capital assets, net of 
accumulated depreciation, must also be reported net of related debt, it should be noted that the Town’s 
outstanding debt is related to bonds payable as of June 30, 2023. 
 
The net position of our business-type activities decreased by 2.0% ($48.8 million in 2023 compared to 
49.7 million in 2022). 
 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(15) 
 
The Town’s total revenues (excluding special items) were $125.7 million.  The total cost of all programs 
and services was $126.4 million.  Our analysis below separately considers the operations of 
governmental and business-type activities. 
 
Governmental
Business-Type
Activities
Activities
Total
2023
2022
2023
2022
2023
2022
Revenues:
Program Revenues:
Charges for Services
3,704
$             
3,232
$             
3,820
$             
3,798
$             
7,524
$             
7,030
$             
Operating Grants and Contributions
15,755
             
11,664
             
-
                       
15,755
             
11,664
             
Capital Grants and Contributions
1,143
               
1,858
               
-
                       
-
                       
1,143
               
1,858
               
General Revenues:
Property Taxes
97,440
             
94,070
             
-
                       
97,440
             
94,070
             
Grants and Contributions Not  
   Restricted to Specific Purposes
755
                  
376
                  
-
                       
755
                  
376
                  
Unrestricted Investment Earnings
2,853
               
226
                  
184
                  
12
                    
3,037
               
238
                  
Loss on Disposal of Capital Assets
-
                       
-
                       
-
                       
-
                       
-
                       
Miscellaneous Revenue
47
                    
55
                    
-
                       
-
                       
47
                    
55
                    
Total Revenues
121,697
           
111,481
           
4,004
               
3,810
               
125,701
           
115,291
           
Program Expenses:
General Government  
16,340
             
14,481
             
-
                       
16,340
             
14,481
             
Public Safety  
14,438
             
11,579
             
-
                       
14,438
             
11,579
             
Public Works
12,102
             
8,803
               
-
                       
12,102
             
8,803
               
Recreation
1,967
               
1,836
               
-
                       
1,967
               
1,836
               
Library
1,158
               
1,002
               
-
                       
1,158
               
1,002
               
Social Services
1,374
               
1,303
               
-
                       
1,374
               
1,303
               
Education
72,529
             
65,499
             
-
                       
72,529
             
65,499
             
Interest and Fiscal Charges
1,247
               
1,363
               
-
                       
1,247
               
1,363
               
Utility Commission
-
                       
5,236
               
5,119
               
5,236
               
5,119
               
Total Program Expenses
121,155
           
105,866
           
5,236
               
5,119
               
126,391
           
110,985
           
Excess (Deficiency) of Revenues
  Over Expenses Before Transfers
542
                  
5,615
               
(1,232)
              
(1,309)
              
(690)
                 
4,306
               
Transfers
(260)
                 
(615)
                 
260
                  
615
                  
-
                       
-
                       
Change In Net Position 
282
                  
5,000
               
(972)
                 
(694)
                 
(690)
                 
4,306
               
Net Position - Beginning of Year
162,968
           
157,968
           
49,744
             
50,438
             
212,712
           
208,406
           
Net Position - End of Year
163,250
$         
162,968
$         
48,772
$           
49,744
$           
212,022
$         
212,712
$         
 
Governmental Activities 
 
Approximately 80.1% of these revenues were derived from property taxes, followed by 14.5% from 
operating and capital grants and contributions, 3.0% from charges for services and 2.4% from 
investment and other general revenues. 
 
Major factors affecting operations include: 
 
 
Operating grants and contributions were up by $4.1 million due primarily to the following: 
 
 There was an increase in the State’s on-behalf contribution for the Teachers’ Retirement 
System of $4.2 million and an increase in the State’s on-behalf contribution for the Teachers’ 
Retirement System OPEB of $858.7 thousand.  There was a decrease in the Excess Cost grant 
of $111.7 thousand.  There was a decrease in Special Assistance grants of $257.8 thousand. 
There was a decrease in assistance to the School Cafeteria fund of $319.4 thousand. There 
was a decrease in the Thames Landing grant of $250.0 thousand. 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(16) 
 
 
Property Tax Revenues were up by $3.4 million. 
 
Investment earnings were up by $2.6 million due to higher interest rates. 
 
Capital grants and contributions decreased by $715.6 thousand due mainly to the following: 
 
 Public works capital grants were down by $767.6 thousand.  Public Works LOTCIP grant for 
Cross Road Grant was down by $1.2 million. There was an increase of $280.0 thousand for the 
Jordan Village Sidewalk grant.  There was a decrease in the LOCIP grant of $17.3 thousand.  
The Cost Sharing PRR grant increased by $187.4 thousand.  Town Aid Roads grant is up by 
$4.7 thousand. 
 
Social Service grants increased by $52.0 thousand for a new Senior Van. 
 
Miscellaneous Revenue was down by $9.0 thousand. 
 
Table 3 presents the cost of each of the Town’s five largest programs - education, general government, 
public safety, public works and recreation - as well as each program’s net cost (total cost less revenues 
generated by the activities).  The net cost shows the financial burden to the Town’s taxpayers by each 
of these functions. 
 
Total Cost of Services
Net Cost of Services
2023
2022
2023
2022
Education  
72,529
$          
65,499
$          
56,935
$          
54,613
$          
General Government
16,339
            
14,481
            
14,804
            
12,225
            
Public Safety   
14,438
            
11,579
            
13,604
            
11,144
            
Public Works  
12,102
            
8,803
              
10,203
            
6,270
              
Recreation
1,967
              
1,836
              
1,695
              
1,614
              
All Others
3,779
              
3,667
              
3,313
              
3,245
              
Totals
121,154
$        
105,865
$        
100,554
$        
89,111
$          
 
Business-Type Activities 
 
Net position of the Town’s business-type activities (see Table 1) decreased by 2.0% ($48.8 million in 
2023 compared to $49.7 million in 2022).  Revenues and transfers in for the Town’s business-type 
activities (see Table 2) decreased by $161.0 thousand ($4.3 million in 2023 compared to $4.4 million in 
2022).  Overall Expenses were higher than revenues and transfers in by $972.0 thousand.  The factors 
driving these results include: 
 
 
An increase in Sewer use fee revenue of $22.0 thousand. 
 
A decrease in transfers in of $355.0 thousand.  
 
An increase of investment earnings of $172.0 thousand. 
 
An increase in expenses of $117.0 thousand. 
 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(17) 
 
TOWN FUNDS FINANCIAL ANALYSIS 
 
Governmental Funds 
 
As the Town completed the year, its governmental funds (as presented in the balance sheet - Exhibit 
III) reported a combined fund balance of $44.6 million, which is increase of $5.8 million from last year’s 
total of $38.8 million.  Included in this year’s total change in fund balance is an increase of $2.6 million 
in the General Fund, an increase of $775.5 thousand in the Capital and Nonrecurring Fund and an 
increase of $2.4 million for Nonmajor Governmental Funds. 
 
Capital Projects Funds: 
 
 
The Capital and Nonrecurring Fund balance increased by $775.5 thousand due to revenues of 
$693.7 thousand plus transfers in of $3.8 million and expenditures of $3.7 million. 
 
Non-Major Capital Projects Funds: 
 
 
The Capital Improvement Fund increased by $1.4 million due to grant revenue of $292.1 thousand 
and net transfers in and out of $2.5 million which was reduced by expenditures of $1.4 million.  
 
The Fleet Management Fund increased by $350.3 thousand due to revenues of $287.1 thousand 
and transfers in of $800.0 thousand being offset by expenditures of $736.8 thousand. 
 
The Sewer Development and Maintenance Fund increased by $214.2 thousand due to revenues of 
$214.2 thousand and no current year expenditures. 
 
Special Revenue Funds: 
 
 
The Cafeteria fund increased by $316.8 thousand due to revenues of $1.5 million, offset by 
expenditures of $1.2 million. 
 
The School Activity Fund increased by $98.2 thousand due to revenues of $399.9 thousand and 
expenditures of $301.7 thousand. 
 
The Nuclear Safety Emergency Preparedness Fund decreased by $80.6 thousand due to 
expenditures of the same amount that had not been reimbursed by the end of the year. 
 
The Waterford Special Activity Fund increased by $51.8 thousand due to revenues and transfers in 
of $84.6 thousand and expenditures of $32.8. 
 
Proprietary Funds 
 
The Town’s Proprietary Funds provide the same type of information found in the government-wide 
financial statements, but in more detail. 
 
Overall, proprietary funds net assets total $54.2 million at the end of the year, which includes a $5.4 
million fund balance in the Internal Service Fund. 
 
Net position of the Utility Commission Fund at the end of the year amounted to $48.8 million.  Factors 
affecting the balance of this fund are included in the discussion of the Town’s business-type activities. 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(18) 
 
In fiscal year 2023, net position of the Internal Service fund decreased by $646.5 thousand from fiscal 
year 2022.  This is due to $12.4 million in contributions and other revenues (an increase of $258.7 
thousand over fiscal year 2022), reduced by expenses for claims and program administration of $13.3 
million (an increase of $1.0 million over fiscal year 2022). 
 
General Fund Budgetary Highlights 
 
Revenues were higher than budgetary estimates by $5.4 million and expenditures were less than 
revised budgetary estimates by $1.3 million.  Overall revenues over expenditures on a budgetary basis 
were $3.4 million.  In the current year, revenues increased by $6.6 million or 6.7 % over the prior year 
and expenditures increased by $3.5 million or 3.6%. 
 
The major factors affecting this year’s annual operating results are as follows: 
 
 
Property tax revenue was over budgetary estimates by $1.2 million and over prior year revenue by 
$3.8 million. 
 
State and Federal grant funding was over budgetary estimates by $381.7 thousand and over prior 
year revenue by $186.7 thousand. 
 
Assessment revenue is over budgetary estimates by $16.5 thousand and over the prior year by 
$4.0 thousand. 
 
License and permit revenue is over budgetary estimates by $587.0 thousand and over the prior 
year by $39.9 thousand.  Town clerk fees decreased by $74.4 thousand over fiscal year 2022.  The 
building department revenues increased from FY22 by $138.6 thousand, conveyance tax revenue 
is down from FY22 by $37.9 thousand.  Planning & zoning had an increase of $15.2 thousand over 
the prior year.  Miscellaneous fees and permits were down from FY22 by $1.1 thousand.  
Recreation and parks revenue is down from FY22 by $0.7 thousand. 
 
Fines, Penalties and Charges for Services are over budgetary estimates by $177.8 thousand and 
over the prior year revenue by $21.0 thousand.  The biggest change was an increase for tuition 
fees of $32.8 thousand, followed by a decrease of $23.3 thousand in tipping fee revenue.  
Miscellaneous revenue increased by $19.6 thousand.  Senior Services program revenue was down 
by $18.0 thousand.  Recycling revenue increased by $15.1 thousand.  Bulky Waste fees were down 
by $5.0 thousand.  False alarm fines were down up $0.8 thousand and the Library was up by $0.5 
thousand. 
 
Other sources of revenue were over budgetary estimates by $842.7 thousand and over the prior 
year revenue by $578.2 thousand.  Rental of Buildings was up $637.8 thousand due to a 
prepayment for a new fifty year lease.  Cost sharing PRR was up by $103.6 thousand. The New 
London Radio fee was down by $72.2 thousand due to it being used to offset the Information 
Technology budget in FY23.  The CIRMA subsidy is down by $96.1 thousand due to the Town 
leaving CIRMA in Fiscal year 2023.  The ambulance subsidy was down by $6.0 thousand as it was 
used to repay Waterford Ambulance for providing AED replacements. The BOE clerical stipend is 
down by $5.0 thousand as it was used in fiscal year 2023 to offset the Youth and Family services 
expenditure budget.  Sale of vehicles and equipment was up by $11.8 thousand.  The Eugene 
O’Neill Lease was up $8.8 thousand.  The SCRRRA rebate was down by $3.1 thousand. Rent & 
Miscellaneous revenue was down by $1.5 thousand. 
 
Investment income is over budgetary estimates by $1.9 million and over prior year revenue by the 
same amount. 

TOWN OF WATERFORD, CONNECTICUT 
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 
JUNE 30, 2023 
 
 
 
(19) 
 
 
Other Financing Sources, which consists of the cancelation of prior year encumbrances and 
transfers in from the capital improvement fund, was over estimated revenue by $246.2 thousand 
and over the prior year by $123.4 thousand. 
 
Overall Expenditures came in $1.3 million under revised budgetary estimates.  The largest amounts of 
unused appropriations returned in the current fiscal year are as follows: 
 
 
The Board of Education returned $304.7 thousand. 
 
The Public Works Department returned $223.7 thousand. 
 
The Information Technology Department returned $111.5 thousand. 
 
The Police Department returned $104.2 thousand. 
 
The Emergency Management Department returned $101.3 thousand. 
 
The Retirement Commission returned $54.0 thousand. 
 
The Planning & Zoning Department returned $52.0 thousand. 
 
The Town’s General Fund balance of $26.5 million reported on Exhibit III differs from the General 
Fund’s budgetary balance of $26.9 million reported in the budgetary comparison in the required 
supplementary information.  This is principally because budgetary fund balance does not include 
$234.4 thousand of outstanding encumbrances at year-end, which are reported as expenditures for 
budgetary purposes.  The balances for special revenue funds financed primarily from operating 
transfers from the General Fund are also rolled into that fund for reporting purposes.  For fiscal year 
2023, those balances amounted to $32.5 thousand.  Adjustments for unbudgeted lease