2023
FISCAL YEAR ENDED
JUNE 30, 2023
MICHELLE WU
Mayor
ASHLEY GROFFENBERGER
Chief Financial Ofcer
& Collector Treasurer
MAUREEN JOYCE
City Auditor
Prepared by the City of Boston Auding Department
City of Boston
Massachuses
Annual Comprehensive
Financial Report
Fiscal Year Ended June 30, 2023
Michelle Wu, Mayor
Ashley Groenberger, Chief Financial Ocer & Collector Treasurer
Maureen Joyce, City Auditor
TABLE OF
CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023
•
INTRODUCTORY SECTION (Unaudited)
i Transmial Leer
xii List of Elected and Appointed Ocials
xiii Organizaonal Chart of Auding Department
xiv List of Auding Department Personnel
•
FINANCIAL SECTION
1 Independent Auditors’ Report
5 Management’s Discussion and Analysis (Unaudited)
Basic Financial Statements:
15 Statement of Net Posion
17 Statement of Acvies
FUND FINANCIAL STATEMENTS
19 Balance Sheet – Governmental Funds
20 Reconciliaon of the Balance Sheet of the Governmental Funds to the Statement
of Net Posion
21 Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds
22 Reconciliaon of the Statement of Revenues, Expenditures, and Changes in Fund
Balance
23 Statement of Revenues and Expenditures – Budgetary Basis, General Fund –
Budget and Actual
24 Statement of Net Posion – Proprietary Fund
25 Statement of Revenues, Expenses, and Changes in Net Posion – Proprietary Fund
26 Statement of Cash Flows – Proprietary Fund
27 Statement of Fiduciary Net Posion – Fiduciary Funds
28 Statement of Changes in Fiduciary Net Posion – Fiduciary Funds
29 Notes to the Basic Financial Statements
Required Supplementary Informaon (Unaudited):
74 Schedules of OPEB Contribuons
75 Schedules of Changes in Net OPEB Liability and Related Raos
76 Schedule of City’s Proporonate Share of the Net Pension Liability – Boston
Rerement System
76 Schedule of City’s Contribuons – Boston Rerement System
TABLE OF
CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023
Combining, Individual Fund Statements and Schedules:
GENERAL FUND
78 Fund Descripon
79 Balance Sheet
80 Statement of Revenues, Expenditures and Changes in Fund Balance
81 Schedule of Revenues and Other Financing Sources Compared to Budget
84 Schedule of Expenditures Compared to Budget
SPECIAL REVENUE FUND
88 Fund Descripon
89 Combining Balance Sheet
90 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
CAPITAL PROJECTS FUND
92 Fund Descripon
93 Balance Sheet
94 Statements of Revenues, Expenditures, and Changes in Fund Balance
OTHER GOVERNMENTAL FUNDS
96 Fund Descripon
97 Combining Balance Sheet
98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance
INTERNAL SERVICE FUND
100 Fund Descripon
101 Statement of Net Posion
102 Statement of Revenues, Expenses, and Changes in Net Posion
103 Statement of Cash Flows
FIDUCIARY FUNDS
104 Fund Descripon
106 Combining Statement of Plan Net Posion - Pension and OPEB
107 Statement of Plan Net Posion - Boston Rerement System
108 Statement of Plan Net Posion - OPEB Trust Fund
109 Combining Statement of Net Posion - Private Purpose Trust Funds
111 Combining Statement of Net Posion - Custodial Funds
112 Combining Statement of Changes in Plan Net Posion - Pension and OPEB
113 Statement of Changes in Plan Net Posion - Boston Rerement System
114 Statement of Changes in Plan Net Posion - OPEB Trust Fund
TABLE OF
CONTENTS
FISCAL YEAR ENDED JUNE 30, 2023
115 Combining Statement of Changes in Net Posion - Private Purpose Trust Funds
117 Statement of Changes in Net Posion - Custodial Funds
DISCRETELY PRESENTED COMPONENT UNITS
118 Discretely Presented Component Units Descripon
121 Combining Statements of Acvies
•
STATISTICAL SECTION (Unaudited)
126 Stascal Secon Overview
127 General Government Expenditures by Funcon (GAAP Basis)
129 General Government Revenues by Source (GAAP Basis)
131 Net Posion by Component
133 Changes in Net Posion
137 Fund Balances of Governmental Funds
139 Changes in Fund Balances of Governmental Funds
141 Assessed and Esmated Actual Value of All Taxable Property
142 Property Tax Rates – Direct and Overlapping Governments
143 Largest Principal Taxpayers
144 Property Tax Levies and Collecons
145 Raos of Outstanding Debt by Type
147 Raos of Net General Obligaon Bonded Debt to Assessed Value and Net
Bonded Debt per Capita
149 Legal Debt Margin Informaon
151 Demographic and Economic Stascs
152 Principal Employers
153 Full-Time Equivalent City Government Employees by Department
155 Operang Indicators by Funcon
157 Capital Asset Stascs by Department
Introductory
SECTION
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FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
INTRODUCTORY
SECTION
i
Auditing Department
Michelle Wu, Mayor
February 26, 2024
The Honorable Mayor,
Members of the City Council,
We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR) of the City of Boston (City) for the scal year
ended June 30, 2023. The Annual Report is prepared by the City’s Auding Department, and is intended to provide informaon
regarding the nancial posion of the City. This report is prepared in accordance with U.S. generally accepted accounng
principles (GAAP), as established by the Governmental Accounng Standards Board (GASB), and meets all requirements of
state nance law of the Commonwealth of Massachuses, as well as the City Charter.
The responsibility for the accuracy, completeness, and fairness of the data presented, including disclosures, rests with the City.
City management believes this report is accurate in all material respects and is presented in a manner which fairly sets forth
the nancial posion and results of operaons of the City. Management is also responsible for establishing and maintaining
internal accounng controls designed to provide reasonable, but not absolute, assurance that these nancial statements are
complete and accurate in their presentaon.
The Auding Department uses an integrated nancial and human resources management system referred to as the Boston
Administrave Informaon System (BAIS). The system is designed to track and control daily acvies and report the nancial
posion of the City. This soware allows management to directly evaluate the nancial status of individual programs as well
as the enre department, and also supports the rigorous monitoring and reporng requirements enforced by the City.
The Commonwealth of Massachuses, through Chapter 190 of the Acts of 1982, requires that the City undergo an annual
audit performed by a rm of independent public accountants. The City has selected KPMG LLP to perform the June 30, 2023
audit. This audit is conducted in accordance with generally accepted government auding standards (GAGAS) issued by the
Comptroller General of the United States. The audit provides an independent review to help assure a fair presentaon of the
City’s nancial posion and results of operaons.
The City also undergoes an annual audit of its federal grant funds as required by Title 2 U.S. Code of Federal Regulaons Part
200, Uniform Administrave Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
KPMG LLP issues separate reports on the City’s internal control systems and compliance with applicable laws and regulaons
that meet the requirements of the Uniform Guidance. A substanal focus of the Single Audit is to evaluate the City’s internal
control structure. The evaluaon includes tesng a signicant number of the major federal program transacons that occurred
during the scal year. The Single Audit also requires that the auditors determine whether the City has complied with laws and
regulaons that may have a material eect on each of its major federal nancial assistance programs. All of the City’s major
federal programs are evaluated for the adequacy of internal controls and compliance with laws and regulaons. The report is
publicly issued under a separate cover.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
ii
Management’s Discussion and Analysis (MD&A) follows the independent auditors’ report and provides a narrave introducon,
overview, and analysis to accompany the basic nancial statements. This leer of transmial is intended to complement the
MD&A and should be read in conjuncon with it.
.
Mayor Michelle Wu
The City of Boston, incorporated as a town in 1630 and as a City in 1822, is located on the Shawmut Peninsula, at the conuence
of the Charles and Mysc Rivers. The City lies adjacent to Boston Harbor, which is a part of Massachuses Bay and leads
ulmately to the North Atlanc Ocean. The Charles River separates Boston from Cambridge and Watertown, while the Mysc
River determines the boundaries between Chelsea and Evere. The Neponset River separates the southern neighborhoods of
Boston from the Town of Milton and City of Quincy.
The City of Boston exists under Chapter 486 of the Acts of 1909 and Chapter 452 of the Acts of 1948 of the Commonwealth of
Massachuses, which, as amended, constute the City’s Charter. The Mayor is elected to a four-year term and serves as chief
execuve ocer of the City. The Mayor has general supervision of and control over the City’s boards, commissions, ocers and
departments. The legislave body of the City is the City Council, which consists of 13 elected members serving two-year terms.
Boston Mayor Michelle Wu is a daughter of immigrants, a Boston Public Schools mom, and an MBTA commuter. She was sworn
into oce in November 2021–the rst woman and rst person of color elected to serve in this role, championing a vision of
Boston as a green and growing city for everyone.
To support and stabilize Boston’s connued economic recovery, Mayor Wu has focused on deploying emergency grants to
neighborhood small businesses, taking acon to revitalize Downtown Boston through citywide collaboraons, and signing
execuve orders to speed up aordable housing development approvals and ensure that Boston’s municipal contracng reaches
the City’s supplier diversity goals to build community wealth.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
INTRODUCTORY
SECTION
iii
Mayor Wu is working in partnership across every level of government, with businesses, and in the community, to make Boston
the leading city where families and businesses can thrive. Her focus is on invesng in infrastructure for the public good—
transportaon, housing, health, and educaon—to ensure that Boston is ready for the jobs of the future.
The City budgets and maintains its books and records on a statutory basis of accounng prescribed by the Massachuses
Division of Local Services, Bureau of Accounts. This basis of accounng diers from Generally Accepted Accounng Principles
(GAAP). The accounts of the City are organized on a fund basis. Each fund is considered to be a separate accounng enty. The
operaons of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise each fund’s
assets, liabilies, fund balance, revenues, and expenses.
The General Fund is the only fund for which a budget is legally adopted. The budgets for all departments included in the General
Fund of the City, except the School Department, are prepared under the direcon of the Mayor and City Council. Departmental
budgets are established at the account level and so voted by the City Council. The School Department budget is prepared under
the direcon of the School Commiee. Original and supplemental appropriaons are submied by the Mayor, approved by the
City Council, and lapse at year end unless encumbered. The legal level of control over appropriaons is at the department level.
Amendments to the original budget must be approved by the City Council, except for a reallocaon of appropriaons of up to
$3 million, which the Mayor may approve. Further, the City Auditor, with the approval of the Mayor, may make transfers from
any appropriaon to any other appropriaon for purposes of eliminang decits before closing the books for the scal year.
Included in the basic nancial statements, which are prepared on the GAAP basis of accounng, are governmental acvies,
each major fund, the aggregate discretely presented component units, and aggregate remaining fund informaon. Discretely
presented component units are reported in a separate column to emphasize their operaonal and/or nancial relaonship
with the City. The Boston Rerement System (BRS) has been presented as a blended component unit because it provides
services almost exclusively to the City. The Dudley Square Realty Corporaon (DSRC) and the Ferdinand Building Development
Corporaon (FBDC) are also presented as a blended component unit. The Notes to the Financial Statements further discuss
the City’s nancial reporng enty.
Local Economy
Boston is the twenty-fourth largest City, in terms of populaon, in the United States and is the economic hub of the
Commonwealth of Massachuses (the “Commonwealth”). It is a center for professional services, business, nance, technology,
research and development, higher educaon and health care, as well as for transportaon, exports, communicaons, culture
and entertainment.
The outbreak of COVID-19 in early 2020, required restricve public health intervenons that created severe economic
disrupons in Boston and across the world and connues to adversely aect global, naonal, state and local economic acvity.
The City is vigorously pursuing economic opportunies and investments, to ensure Boston will connue to be a global leader.
The City is the capital of the Commonwealth and is host to several other governmental agencies. Using the employment data
from Bureau of Economic Analysis (BEA) and Massachuses Execuve Oce of Labor and Workforce Development (EOLWD),
Boston Planning and Development Authority (BPDA) Research esmated that the government employment in the City of
Boston is 74,665 in 2022. Large state government oces, federal regional oces, U.S. Postal Service facilies, state-chartered
authories and commissions such as the Massachuses Port Authority and the Boston Water and Sewer Commission, and the
City’s local government agencies and departments are all located within the City.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
iv
Higher educaon, health care, and nancial services play a major role in Boston’s economy. Boston’s job growth was posive
across most industries since the recession, but was mostly concentrated in health care and social assistance, professional and
technical services, and educaon. The health care and social assistance industry employs the largest number of people in
Boston, 18.5% of total jobs. Educaonal services is an area of specializaon for Boston (8.1% of total jobs), with an employment
share three mes the naonal average. Boston hosts 35 universies, colleges, and community colleges, with a combined
enrollment of approximately 150,000 students annually. Included among the City’s colleges and universies are some of the
nest educaonal instuons in the country, including Boston College, Boston University, Northeastern University and Harvard
University. These instuons of higher educaon have a major eect on Boston’s economy. Because many of these students
remain in Boston aer graduaon, the City’s educaonal instuons are a major source of highly-skilled professionals for
Boston’s workforce. As the COVID-19 pandemic surged throughout the country, and with many instuons connuing remote
and hybrid learning, enrollment gures declined. Boston higher educaon instuons fell by 2.7% from Fall 2019 to Fall 2020
before rebounding 5.8% in Fall 2021. In that me, the percentage of students receiving full me or part-me remote learning
increased 71%. More than one-third of students in Fall 2021 had at least one virtual course.
Many of the naon’s nest research and teaching hospitals are located in Boston, including Massachuses General Hospital
Brigham, Beth Israel Lahey Hospital, Boston Medical Center, Tus Medical Center, and Boston Children’s Hospital. In total, there
are 22 inpaent hospitals in the City. Furthermore, Boston is home to the medical and dental schools of Harvard University,
Tus University, and Boston University. The Boston metropolitan area remains the naon’s foremost region for the life sciences
industry. Boston’s life science industry benets from skilled labor force availability, leading universies in basic academic science
elds, innovave research and development districts, proximity to major research hospitals, and strategic presence of venture
capital resources. Commercial real estate rm CBRE states that the Boston-Cambridge area hosts the largest life sciences cluster
in the naon, as dened by size, growth and concentraon of employment, laboratory inventory, Naonal Instute of Health
(NIH) awards, and venture capital funding.
Many of the country’s leading nancial services rms are located in Boston, including Fidelity Investments, John Hancock/
Manulife Financial, State Street Corporaon, and Wellington Management. In 2022, there were over 141,642 people employed
in the nance, insurance and real estate industries in Boston.
The BPDA esmates that the total number of payroll jobs located in Boston rose from 803,792 in 2020 to 826,967 in 2021, or
a gain of approximately 23,000 payroll jobs (2.9%). Despite this gain, total payroll jobs are sll more than 24,000 payroll jobs
below 2019 levels. This decrease is much greater than the 15,000 average annual jobs lost in Boston between 2001 and 2004
or the 17,500 jobs lost in 2009. Job losses were not felt evenly across industries. Industries that rely on physical proximity
suered signicant job losses. Accommodaon and Food Services suered the highest number of jobs lost as well as the highest
percentage, dropping from 65,645 jobs in 2019 to 38,061 in 2020 – more than 27,000 jobs lost, or 42%. Arts, Entertainment
and Recreaon lost 5,258 jobs, or 30%.
The City is required to have a balanced budget in accordance with Massachuses General Laws (M.G.L.), Chapter 59, Secon
23. In addion to that, management is required to spend within the appropriaons adopted by the Boston City Council and
approved by the Mayor in accordance with Tregor Legislaon Secon 17 of Chapter 190 of the Acts of 1982. The Act states
that “no ocial of the city or county except in the case of extreme emergency involving the health and safety of the people or
their property, shall expend intenonally in any scal year any sum in excess of the appropriaons duly made in accordance
with law, nor involve the city in any contract for the future payment of money in excess of such appropriaons”.
As part of the State Department of Revenue’s tax rate cercaon process, the City must balance all appropriaons, xed
costs, and prior year decits with the approved property tax levy, esmated local revenues, and available prior year surpluses
in order to obtain authorizaon to issue property tax bills. Over two-thirds of the City’s revenues come from the property
tax levy; however, the increase in the levy from year to year is limited by state law. In FY23, the net property tax levy (levy
less a reserve for abatements) totals $2.96 billion, providing 74.0% of recurring revenue. In FY24, the net property tax levy is
esmated to total $3.10 billion and account for 72.4% of budgeted revenues.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
INTRODUCTORY
SECTION
v
State aid from the Commonwealth comprises the second largest single revenue source to the City’s General Fund budget aer
the Property Tax. State aid has been reduced substanally over the course of the last two recessions. Since FY08, net state
aid (dened as state aid revenues less state assessments) to the City has been reduced by $233.7 million or 64.0%. In FY24,
net state aid is budgeted to decrease by $12.9 million or -9.0% compared to FY23, based on the FY24 Governor’s Budget for
assessments and the FY23 State Aid budget. Please see the Management’s Discussion and Analysis Secon for addional
informaon on nancial trends.
In FY23, in order to parally fund the annual required contribuon associated with the other postemployment benets (OPEB)
liability, the City appropriated $40.0 million from the General Fund into the OPEB Liability Trust Fund. The City’s OPEB nancing
plan balances the duty to deliver valuable public services while acknowledging the cost of providing health benets for our
employees, both now and when they rere. More details and informaon on the OPEB liability can be found in Note 13 to the
Financial Statements.
Health benet costs comprise a signicant poron of the City budget and are a crical benet for City employees and rerees.
In 2020, the City of Boston conducted an RFP for its non-Medicare health insurance plans. On July 1, 2021, the City transioned
from two HMO plans to one standard HMO plan and one value HMO plan, with the standard HMO plan under a new provider.
As a result of the RFP process, $12 million in savings were realized in FY22, due to lower administrave fees and ancipated
medical claims and prescripon drug savings. The City connues to benet from health care cost reforms achieved in the FY21-
25 Public Employee Commiee (PEC) agreement, which connues to provide over 30,000 acve and rered employees with
quality healthcare coverage while saving the City $59.7 million over ve years. Funding of health care costs has progressively
moved to self-insurance since FY13. In FY23, roughly 98% of total claims costs are now self-insured, for an esmated annual
City savings of $14.9 million. Actuarially determined reserves are maintained in the Fund to stabilize rate increases and protect
against large claims or cost increases.
The City of Boston parcipates in a contributory dened benet rerement system administered by the Boston Rerement
System (BRS). The current pension schedule is based on an actuarial asset valuaon as of January 1, 2022. The current pension
schedule assumes a long term rate of return of 6.90%. The City’s pension liability is currently 82.4% funded and is on track
to reduce the unfunded liability to zero by 2027, thirteen years prior to the State funding date of 2040. More details can be
found in Note 12 to the Financial Statements.
Most of the City’s workforce is represented by one of 41 dierent unions. Collecvely, these unions represent approximately
20,000 employees. The next round of negoaons for FY21 and beyond has begun with six unions seling during the course
of FY22 and twenty-three unions during FY23. The projected FY24 and FY25 collecve bargaining reserves are intended to
acknowledge some costs in this area but do not indicate an established wage paern for successor contracts.
In FY23, the GAAP General Fund equity increased to $1.61 billion, thus allowing the City to preserve its policy of maintaining
a GAAP unassigned fund balance in the General Fund that is 15% or higher than the current scal year’s GAAP General Fund
operang expenditures. The GAAP unassigned fund balance at the end of FY23 was $1.2 billion and $420.0 million was assigned.
The unassigned fund balance represents approximately 28.5% of GAAP General Fund operang expenditures.
The FY24 Budget totals $4.28 billion and represents an increase of $276.9 million or 6.9% over FY23. This budget sets a
foundaon for our future, connects our communies, and delivers on the details of City services across our neighborhoods.
Through sound scal management, this budget is a roadmap for invesng crical resources to build a more connected City
for everyone.
The $4.2 billion FY24-28 Capital Plan will make crical investments in the City’s infrastructure in every Boston neighborhood,
guided by Imagine Boston 2030 and the schools, streets, arts, climate and resilience plans under its umbrella. Taken together,
these iniaves will support Boston’s dynamic economy and improve quality of life for residents by encouraging aordability,
increasing access to opportunity, promong a healthy environment, and guiding investment in the public realm. The Capital
Plan moves Imagine Boston 2030 from idea to acon. Planned borrowings are expected to increase 27% over last year’s plan,
one-me funding sources are leveraged, and the City connues to collaborate with the Massachuses School Building Authority
on the design and construcon of new schools and the repair of exisng building systems. An esmated 90% of the investment
in the FY24-28 Capital Plan is aligned with the City’s planning eorts.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
vi
The City’s capital plan is an important tool in realizing the goals and vision of Boston 2030. All projects in the Capital Plan are
categorized as New construcon, Major Renovaon, State of Good Repair, Equipment/Technology, or Planning. The Capital
Budgeng Program of the Oce of Budget Management (OBM) tracks the overall distribuon of these categories to maintain
a balance between the upkeep of exisng assets and the expansion or introducon of new ones. The distribuon of allocaons
for FY24 are 42.0% for Major Renovaons, 31.0% for New Construcon, 18.0% for State of Good Repair, 5% for Planning and
4.0% for Equipment/Technology.
Financing for the FY23-FY27 Capital Plan comes from General Obligaon (G.O.) bonds, state and federal funds, trust funds, and
other funds. G.O. bonds represent 76.2% of all project funding. The Capital Plan assumes $2.06 billion in new G.O. borrowings
over the next ve years to support ongoing capital needs, which remains sustainable within the City’s debt aordability
policy. Eecve debt management ensures that the City can meet its capital infrastructure and facility needs. The Treasury
Department manages all borrowings according to the City’s debt management policies. These policies address issues such as
debt aordability and limitaons on the level of variable rate debt the City will use. The City’s goal is to rapidly repay debt,
maintain a conservave level of outstanding debt, and ensure the City’s connued posive nancial standing with the bond
market. More details and informaon on the Long-Term Obligaons can be found in Note 10 to the Financial Statements.
State and federal funds in the ve-year Capital Plan are currently esmated at $310.2 million and $361.4 million, respecvely.
Two of the state nancing programs include the School Building Assistance (SBA) program and the Massachuses Department
of Transportaon’s Highway Division’s Chapter 90 funds.
The SBA, which is administered by the Massachuses School Building Authority (MSBA), provides an important revenue source
for school renovaon and construcon. The MSBA operates two major programs – the Core Program and the Accelerated Repair
Program (ARP). Annually, the MSBA accepts new project requests from cies, towns, and school districts, and if a project is
ulmately approved, the MSBA will pay 40% to 80% of eligible project costs. The City has two projects in the Core program
that are both in construcon: the Josiah Quincy Upper Pilot School, and the Carter School.
The MSBA has approved a maximum project grant totaling $54.1 million for the Josiah Quincy Upper School that covers 24.2%
of the $223.6 million project budget. The Carter School project is currently in construcon. The MSBA has approved a maximum
project grant totaling $26.2 million for the Carter School that supports 23.6% of the $111.4 million project budget. The MSBA
recently selected four projects from Boston for their Accelerated Repair Program. The construcon phase has started at these
schools.
Administered by the Massachuses Highway Department, Chapter 90 funds are allocated by formula through State bond
authorizaons and through the State budget to all cies and towns in the Commonwealth. The City uses Chapter 90 funds
to support its roadway resurfacing and reconstrucon programs as well as its sidewalk reconstrucon programs. The City
ancipates an allocaon of approximately $14.7 million in FY24. The Transportaon Infrastructure Enhancement Fund,
is funded by annual per-ride assessment fees imposed on each transportaon company. The state distributes half of the
assessments proporonately to cies and towns based on the number of rides that originated within the city or town with
funding to be used to address the impact of the transportaon network services on municipal roads, bridges and other
transportaon infrastructure. The FY24-28 Capital Plan includes $16.2 million in new revenue from this source. This funding
will be disconnued as of January 1, 2027.
The City connues to aggressively pursue grant funds, maximize the use of Chapter 90 funds, and acvely manage its projects
to ensure that spending does not exceed projecons and that priority projects move forward. Together, these strategies will
enable the City to maintain a reasonable level of capital spending and borrowing and prudently manage its outstanding debt.
The Government Finance Ocers Associaon of the United States and Canada (GFOA) awarded a Cercate of Achievement
for Excellence in Financial Reporng to the City of Boston for its Annual Report for the scal year ended June 30, 2022.
In order to be awarded a Cercate of Achievement, a governmental unit must publish an easily readable and eciently
organized Annual Report. This report must sasfy both GAAP and applicable state and local legal requirements. A Cercate
of Achievement is valid for a period of only one year. We believe that our current report meets the Cercate of Achievement
program requirements, and we are subming it to the GFOA to determine its eligibility for a cercate.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
INTRODUCTORY
SECTION
vii
In addion, the City also received the GFOA’s Award for Disnguished Budget Presentaon for its Annual Budget document for
the scal year beginning July 1, 2022. The City’s budget document was judged to be procient in several categories including
policy documentaon and nancial planning.
We would like to express our appreciaon to the Accounng sta and all the members of the Auding Department whose
professionalism and dedicaon made the mely preparaon of the Annual Report possible. We also wish to thank the
professional sta of KPMG LLP for their counsel, technical assistance, and connued support in the preparaon of this Annual
Report. Several other City departments and agencies provided addional informaon and assisted in the Annual Report
preparaon. We gratefully acknowledge their eorts and contribuons to this report. Finally, we wish to thank you for your
connued interest in the nancial operaons of the City.
The Annual Report for scal year 2016 through scal year 2023 are featured on the City’s web page www.cityooston.gov/
auding.
Respecully submied,
Maureen Joyce
City Auditor
Ashley Groffenberger
Chief Financial Officer & Collector Treasurer
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
viii
The Government Finance Officers Association of
the
United States and Canada
presents this
AWARD OF FINANCIAL REPORTING ACHIEVEMENT
to
The Award of Financial Reporting Achievement is presented by the Government Finance Officers
Association
to the department or individual designated as instrumental in the government unit
achieving
a
Certificate of Achievement for Excellence in Financial Reporting. A Certificate of Achievement
is
presented
to those government units whose annual financial reports are judged to adhere to
program
standards
and represents the highest award in government financial reporting.
Executive Director
Date: 11/22/2023
Auditing Department
City of Boston, Massachusetts
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FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
x
Non-Mayoral
City Council
(elected)
City Clerk
(appointed by City Council)
Finance Commission
(appointed by Governor)
ORGANIZATION OF A CITY GOVERNMENT
PEOPLE OF BOSTON
Mayor
Chief of Staff
z Black Male Advancement
z Disabilities Commission
z Fair Housing & Equity
z Human Rights Commission
z Immigrant Advancement
z Language & Communication
Access
z LGBTQ+ Advancement
z Ofce of Equity
z Women’s Advancement
Chief of
Equity & Inclusion
z Boston Public Schools
Superintendent of
Schools
z Emergency Management
z Fire
z Police
Joint Chiefs of
Public Safety
z Health Insurance
z Human Resources
z Labor Relations
z Medicare
z Ofce of People
Operations
z Registry
z Unemployment
Compensation
z Workers’
Compensation
Chief People
Ofcer
z Environment
z Food Justice
z Historic Preservation
z Parks & Recreation
Chief of Environment,
Energy, & Open Space
z Planning & Design
z Boston Planning &
Development Agency/
EDIC*
Chief of
Planning
z Inspectional Services
z Property Management
z Public Facilities
Chief of
Operations
z Public Health
Commission (1)
Public Health
z Central Fleet
Management
z Ofce of Streets
z Public Works
z Snow & Winter
Management
z Transportation
Chief of
Streets
z Boston Water & Sewer
Commission*
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
INTRODUCTORY
SECTION
xi
* NotinOperangBudget
(1) ThePublicHealthCommissionisanindependent
authoritycreatedinJune1996
z Intergovernmental Relations
Chief of Policy
Chief of
Communications
z Elections
z Law
Corporation
Counsel
z Ofce of
Housing
z Boston
Housing
Authority*
z Ofce of Arts &
Culture
Chiefs of
Housing
Chief of
Arts & Culture
z Neighborhood Services
Chief of Community
Engagement
z Innovation & Technology
Chief Information
Ofcer
Ofce of Police
Accountability &
Transparency
z Consumer Affairs & Licensing
z Ofce of Economic Opportunity &
Inclusion
z Supplier & Workforce Diversity
z Tourism, Sports & Entertainment
Chief of Economic
Opportunity & Inclusion
z Labor Compliance and Worker
Protection
z Youth Employment &
Opportunity
Chief of
Worker Empowerment
z Assessing
z Auditing
z Budget Management
z Execution of Courts
z Ofce of Finance
z Participatory Budgeting
z Procurement
z Treasury
z Retirement Board*
Chief Financial
Ofcer
z Age Strong
z Boston Centers for Youth &
Families
z Boston Public Library
z Ofce of Human Services
z Veterans Services
Chief of Human
Services
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
xii
LIST OF ELECTED and APPOINTED OFFICIALS
(as of June 30, 2023)
Mayor
City Council Members
Ed Flynn (President) District 2
Ruthzee Louijeune At-Large
Michael Flaherty At-Large
Julia Mejia At-Large
Erin Murphy At-Large
Gabriela Colea District 1
Frank Baker District 3
Brian Worrell District 4
Ricardo Arroyo District 5
Kendra Lara District 6
Tania Fernandes Anderson District 7
Vacant District 8
Liz Breadon District 9
Tiany Chu Chief of Sta
Mike Firestone Chief of Policy and Planning
Dion Irish Chief of Operaons
Adam Cederbaum Corporaon Counselor
Jessicah Pierre Chief Communicaon Ocer
Sanago Garces Chief Informaon Ocer
Ashley Groenberger Chief Financial Ocer & Collector Treasurer
Segun Idowu Chief of Economic Opportunity and Inclusion
Mary Skipper Superintendent of Boston Public Schools
Michael Cox Chief of Public Safety and Police Commissioner
Paul F. Burke Chief of Public Safety and Fire Commissioner
Shumeane L. Benford Chief of the Oce of Emergency Management
Rev. Mariama White-Hammond Chief of Environment and Open Space
Sheila Dillon Chief of Housing and Neighborhood Development
Jose Masso Chief of Human Services
Kenzie Bok Administrator, Housing Authority
James Hooley Chief of Medical Services
Kara Elliot-Ortega Chief of Arts & Culture
Jascha Franklin-Hodge Chief of Streets
James Arthur Jemison
Chief of Planning and Director Boston Planning & Development Agency
Mariangely Solis Cervera Chief of Equity and Inclusion
Alex Lawrence Chief of People Operaons
David Leonard President of Boston Public Library
Brianna Millor Chief of Community Engagement
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
INTRODUCTORY
SECTION
xiii
Auditing Department
Organizational Chart
City Auditor
System Support
Administrative
Support
Deputy City Auditor
Accounting Central Payroll Grants Monitoring
Accounts
Payable
General
Accounting
Financial
Reporting
Contracts
Payment
Processing
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
xiv
Maureen Joyce, City Auditor
Carrie He
Domenica Cabral
Sinthia Johnson
Sheila Fay
Marie Murray
(This page intentionally left blank)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
1
INDEPENDENT AUDITORS’ REPORT
Independent Auditors’ Report
To the Honorable Mayor and City Council
City of Boston, Massachusetts:
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of Boston (the
City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, based on our audit and the reports of the other auditors, the accompanying financial statements
referred to above present fairly, in all material respects, the respective financial position of the governmental
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where
applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then
ended in accordance with U.S. generally accepted accounting principles.
We did not audit the financial statements of the following entities and funds:
• Governmental Activities
– Dudley Square Realty Corporation, Ferdinand Development Corporation, and the Permanent
Funds, which are non-major governmental funds that collectively represent 1.1% and 5.4% of the
total assets and revenues, respectively, of the aggregate remaining fund information as of June 30,
2023 and for the year then ended.
– These entities and funds collectively represent 3.7% and 0.4%, respectively, of the total assets and
revenues of the governmental activities as of June 30, 2023 and the year then ended.
• Fiduciary Activities
– Boston Retirement System, the OPEB Trust Fund, and Private-Purpose Trust Funds that
collectively represent 97.6% and 19.9%, respectively, of the total assets and revenues of the
aggregate remaining fund information as of June 30, 2023 and for the year then ended.
• Aggregate Discretely Presented Component Units
– Boston Public Health Commission, Trustees of the Public Library of the City of Boston, and the
Economic Development and Industrial Corporation of Boston that collectively represent 82.6% and
92.6%, respectively, of the total assets and revenues of the aggregate discretely presented
component units as of June 30, 2023 and for the year then ended.
Those statements were audited by other auditors whose reports have been furnished to us, and our opinions,
insofar as they relate to the amounts included for those entities, are based solely on the reports of the other
auditors.
KPMG LLP
Two Financial Center
60 South Street
Boston, MA 02111
KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
2
FINANCIAL
SECTION
INDEPENDENT AUDITORS’ REPORT
2
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 City 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.
Emphasis of Matter
As discussed in Note 2(t) to the basic financial statements, in 2023, the City adopted Governmental Accounting
Board Statement No. 96, Subscription-Based Information Technology Arrangements. Our opinions are not
modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with U.S. generally accepted accounting principles, 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.
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 City’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
the City’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 the City’s ability to continue as a going concern for a reasonable period of time.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
3
INDEPENDENT AUDITORS’ REPORT
3
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.
Report on Partial Comparative Information
We have previously audited the City's 2022 financial statements, and we expressed unmodified opinions on the
respective financial statements of the governmental activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information in our report dated March 10, 2023. In
our opinion, the partial comparative actual information presented herein for the budgetary comparison of the
General Fund for the year ended June 30, 2022, is consistent, in all material respects, with the audited financial
statements from which it has been derived.
Required Supplementary Information
U.S. generally accepted accounting principles require that the management’s discussion and analysis and
schedules listed under the Required Supplementary Information 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 and other auditors 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 City’s basic financial statements. The combining and individual fund 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 information is 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 comprehensive financial 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.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
4
FINANCIAL
SECTION
INDEPENDENT AUDITORS’ REPORT
4
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2024
on our consideration of the City’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 City’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 the City’s internal control over financial reporting and
compliance.
Boston, Massachusetts
February 26, 2024
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
5
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
The City of Boston (the City) provides this Management’s Discussion and Analysis to present addional informaon to the
readers of the City’s basic nancial statements. This narrave overview and analysis of the nancial acvies of the City is for
the scal year ended June 30, 2023. Readers are encouraged to consider this informaon in conjuncon with the addional
informaon that is furnished in the City’s Annual Comprehensive Financial Report (Annual Report).
This discussion and analysis is intended to serve as an introducon to the City’s nancial statements. The City’s basic nancial
statements include three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3)
Notes to the Financial Statements. This report also contains required supplementary informaon regarding historical pension
informaon and other postemployment benet (OPEB) plan informaon. The components of the nancial statements are
described in the following secons.
The basic nancial statements include two types of nancial statements that present dierent views of the City – the Government-
wide Financial Statements and the Fund Financial Statements. The Notes to the Basic Financial Statements supplement the
nancial statement informaon and clarify line items that are part of the nancial statements.
The Government-wide Financial Statements provide a broad view of the City’s operaons in a manner similar to a private
sector business. The statements provide both short-term and long-term informaon about the City’s nancial posion, which
assists in assessing the City’s economic condion at the end of the scal year. These are prepared using the economic resources
measurement focus and the accrual basis of accounng. This means they follow methods that are similar to those used by
most businesses. They take into account all revenues and expenses connected with the scal year even if cash involved has
not been received or paid. The Government-wide Financial Statements include two statements:
●
The Statement of Net Posion presents all of the government’s assets and deferred oulows of resources and liabilies
and deferred inows of resources, with the dierence between them reported as net posion. Over me, increases
or decreases in the City’s net posion may serve as a useful indicator of whether the nancial posion of the City is
improving or deteriorang.
●
The Statement of Acvies presents informaon showing how the government’s net posion changed during the most
recent scal year. All changes in net posion are reported as soon as the underlying event giving rise to the change
occurs, regardless of the ming of related cash ows. Thus, revenues and expenses are reported in this statement
for some items that will not result in cash ows unl future scal periods (such as uncollected taxes and earned but
unused vacaon leave). This statement also presents a comparison between direct expenses and program revenues
for each funcon of the City.
Both of the above nancial statements present two separate secons as described below.
●
Governmental Acvies – The acvies in this secon are mostly supported by taxes and intergovernmental revenues
(federal and state grants). Most services normally associated with city government fall into this category, including
general government, human services, public safety, public works, property and development, parks and recreaon,
library, schools, public health programs, state and district assessments, and debt service.
●
Discretely Presented Component Units – These are legally separate enes for which the City has nancial accountability
but funcon independent of the City. For the most part, these enes operate similar to private sector businesses.
The City’s four discretely presented component units are the Boston Public Health Commission, the Boston Planning &
Development Agency, the Economic Development Industrial Corporaon, and the Trustees of the Boston Public Library.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
6
FINANCIAL
SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
Complete nancial statements of the individual component units can be obtained from their respecve administrave oces.
Addional informaon about the City’s component units is presented in the Notes to the Financial Statements.
The Government-wide Financial Statements can be found immediately following this discussion and analysis.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specic
acvies or objecves. The City, like other local governments, uses fund accounng to ensure and demonstrate compliance
with nance-related legal requirements.
The Fund Financial Statements focus on individual parts of the City government, reporng the City’s operaons in more
detail than the Government-wide Financial Statements. All of the funds of the City can be divided into three categories. It is
important to note that these fund categories use dierent accounng approaches and should be interpreted dierently. The
three categories of funds are:
– Most of the basic services provided by the City are nanced through governmental funds. Governmental
funds are used to account for essenally the same funcons reported as governmental acvies in the Government-wide
Financial Statements. However, unlike the Government-wide Financial Statements, the Governmental Fund Financial Statements
focus on near term inows and oulows of spendable resources. They also focus on the balances of spendable resources
available at the end of the scal year. Such informaon may be useful in evaluang the government’s near term nancing
requirements. This approach is known as using the current nancial resources measurement focus and the modied accrual
basis of accounng. Under this approach, revenues are recorded when cash is received or when suscepble to accrual (i.e.,
measurable and available to liquidate liabilies of the current period). Expenditures are generally recorded when liabilies are
incurred, except for those related to long-term liabilies, which are recorded when due and payable. These statements provide
a detailed short term view of the City’s nances to assist in determining whether there will be adequate nancial resources
available to meet the current needs of the City.
Because the focus of governmental funds is narrower than that of the Government-wide Financial Statements, it is useful to
compare the informaon presented for governmental funds with similar informaon presented for governmental acvies in the
Government-wide Financial Statements. By doing so, readers may beer understand the long term impact of the government’s
near term nancing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliaon to facilitate this comparison between governmental funds
and the governmental acvies. These reconciliaons are presented on the page immediately following each governmental
fund nancial statement.
The City presents four columns in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances. The City’s three major governmental funds are the General Fund, the Special
Revenue Fund, and the Capital Projects Fund. All non-major governmental funds are combined in the “Other Governmental
Funds” column on these statements. The Governmental Fund Financial Statements can be found immediately following the
Government-wide Financial Statements.
Of the City’s governmental funds, the General Fund is the only fund for which a budget is legally adopted. The Statement of
Revenues and Expenditures – Budgetary Basis is presented aer the governmental fund nancial statements. This statement
provides a comparison of the General Fund original and nal budget and the actual expenditures for the current and prior
year on a budgetary basis.
In accordance with state law and regulaons, the City’s legally adopted General Fund budget is prepared on a “budgetary”
basis instead of U.S. generally accepted accounng principles (GAAP). Among the key dierences between these two sets of
accounng principles are that “budgetary” records property tax as it is levied, while GAAP records it as it becomes suscepble
to accrual, “budgetary” records certain acvies and transacons in the General Fund that GAAP records in separate funds,
and “budgetary” records any amount raised to cover a prior year decit as an expenditure and any available funds raised
from prior year surpluses as a revenue, while GAAP ignores these impacts from prior years. The dierence in accounng
principles inevitably leads to varying results in excess or deciency of revenues over expenditures. Addional informaon and
a reconciliaon of “budgetary” to GAAP statements is provided in note 4 to the Financial Statements.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
7
MANAGEMENT’S DISCUSSION AND ANALYSIS
Proprietary Funds – These funds are used to show acvies that operate more like those of commercial enterprises. Like the
Government-wide Financial Statements, Proprietary Fund Financial Statements use the economic resources measurement
focus and accrual basis of accounng. There are two types of proprietary funds – enterprise funds and internal service funds.
Enterprise funds charge fees for services provided to outside customers including local governments. Enterprise Funds provide
the same type of informaon as the business-type acvies of the Government-wide Financial Statements within governmental
acvies, only in more detail. Currently, the City does not have any enterprise funds. The City’s Internal Service Fund provides
health insurance services predominantly to other funds, departments or agencies of the City. Therefore, its acvies are
included in the Government-wide nancial statements within governmental acvies.
The Proprietary Funds Financial Statements can be found immediately following the Governmental Fund Financial Statements.
Fiduciary Funds – These funds are used to account for resources held for the benet of pares outside the City government.
Fiduciary funds are not reected in the Government-wide Financial Statements because the resources of these funds are not
available to support the City’s own programs. The accounng used for duciary funds is much like that used for proprietary
funds. They use the economic resources measurement focus and accrual basis of accounng.
The City’s duciary funds are the Employee Rerement Fund (the Boston Rerement System), which accounts for the
transacons, assets, liabilies, and net posion of the City employees’ pension plan; the Other Postemployment Benets
(OPEB) Trust Fund, which is an irrevocable trust established for the accumulaon of assets to reduce the liability associated
with the City’s obligaon for other postemployment benets; and the Private Purpose Trust and Custodial Funds, which include
money held and administered by the City on behalf of third pares.
The Fiduciary Funds Financial Statements can be found immediately following the Proprietary Fund Financial Statements.
Notes to the Financial Statements
The notes provide addional informaon that is essenal to a full understanding of the data provided in the Government-wide
and the Fund Financial Statements. The Notes to the Financial Statements can be found immediately following the Fiduciary
Funds Financial Statements.
The basic nancial statements are followed by a secon of required supplementary informaon, which includes a schedule
of employer contribuons for the OPEB Trust Fund, a schedule of changes in net OPEB liability and related raos, a schedule
of the City’s proporonate share of the net pension liability of the Boston Rerement System, and a schedule of the City’s
contribuons to the Boston Rerement System.
CURRENT YEAR FINANCIAL IMPACTS
● The City of Boston’s OPEB obligaon signicantly impacts the Government-wide nancial results. The most recent
valuaon of the City’s OPEB obligaon as of June 30, 2021, esmated that the total OPEB liability of the City increased
by $33.4 million to $2.3 billion. This increase was largely due to an increase in costs.
● In scal year 2023, the City’s contribuon to the OPEB Trust Fund ($174.8) million for reree health benets includes
$40 million in advance funding toward reducing the OPEB liability. In 2023 and 2022, the OPEB Trust Fund earned
investment income/loss, net of fees in the amount of $79.5 million and ($81.0) million, respecvely. This increase is
aributed to increased porolio performance and market increases.
●
The City of Boston’s net pension liability signicantly impacts the Government-wide nancial results. The City is
required to report its proporonate share of the collecve net pension liability, deferred oulows of resources,
deferred inows of resources, and pension expense. Based on the measurement of the Boston Rerement System’s
net pension liability as of December 31, 2022, the City’s proporonate share of that net pension liability increased
by $766.7 million and the net pension liability for the City’s non contributory plan as of June 30, 2023 increased by
$27.3 million resulng in a total net pension liability of $1.87 billion.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
8
FINANCIAL
SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
This analysis is based on the Statement of Net Posion and the Statement of Acvies found directly aer Management’s
Discussion and Analysis.
Net Posion – Primary Government – The total liabilies and deferred inows of resources of the City exceeded its assets and
deferred oulows of resources at scal year ended June 30, 2023 in a net decit of $614.0 million (presented as net posion).
At year end, the City had a decit in governmental acvies unrestricted net posion in the amount of $2.0 billion.
Changes in Net Posion – Primary Government – The City’s total net posion increased by $201.6 million from the amount
reported in scal year 2022.
As noted earlier, net posion may serve over me as a useful indicator of a government’s nancial posion. The City’s net
decit totaled ($614.0) million at the end of 2023, compared to a net decit of ($815.7) million reported at the end of the
previous year.
The components of net posion comprise the following: the investment in capital assets such as land, buildings, equipment,
and infrastructure (road, bridges, and other immovable assets), less any related debt used to acquire those assets that are sll
outstanding – this amount is $1.21 billion indicang that the net book value of the City’s capital assets exceeds the amount of
related capital debt outstanding. The City uses these capital assets to provide services to cizens; consequently, these assets
are not available for future spending. Although the City’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 liabilies.
A poron of the City’s governmental acvies net posion, $157.7 million, represents restricted net posion, or resources that
are subject to external restricons on how they may be used. Internally imposed designaons of resources are not presented
as restricted net assets. The unrestricted net posion (decit) decreased by $56.5 million from the 2022 amount.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
9
MANAGEMENT’S DISCUSSION AND ANALYSIS
(In thousands)
2023
2022
Current assets $ 3,448,752
$ 2,934,153
Capital assets 2,959,625
2,730,596
Other assets
26,012
225,000
Total assets
6,434,389
5,889,749
1,001,657
660,114
Current liabilies 1,380,371
1,424,496
Noncurrent liabilies
6,406,539
5,332,769
7,786,910
6,757,265
263,160
608,262
Net investment in capital assets 1,206,883
1,101,116
Restricted 157,701
118,324
Unrestricted
(1,978,608)
(2,035,104)
Total net posion
$ (614,024)
$ (815,664)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
10
FINANCIAL
SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
(In thousands)
2023
2022
Program revenues:
Charges for services $ 275,272
$ 304,876
Operang grants and contribuons 1,129,258
864,380
Capital grants and contribuons 57,370
42,584
General revenues:
Taxes 3,358,362
3,114,334
Grants and contribuons not restricted 266,455
245,625
Investment income 109,546
11,264
Miscellaneous
1,734
4,861
5,197,997
4,587,924
General government 260,589
209,435
Human services 69,950
65,555
Public safety 1,262,121
1,172,308
Public works 171,610
173,842
Property and development 324,015
291,461
Parks and recreaon 67,172
54,430
Library 71,312
57,149
Schools 2,575,648
2,123,695
Public health programs 148,884
142,341
Interest on long-term debt
45,056
36,821
4,996,357
4,327,037
201,640
260,887
(815,664)
(1,076,551)
$ (614,024)
$ (815,664)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
11
MANAGEMENT’S DISCUSSION AND ANALYSIS
Expenses - Governmental Activities FY 2023
(in thousands)
$2,575,648$2,575,648$2,575,648
$1,262,121$1,262,121$1,262,121
$260,589$260,589$260,589
$171,610$171,610$171,610
$726,389$726,389$726,389
Schools
Public Safety
General
Government
Public Works
Other
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Revenues - Governmental Activities
Fiscal Year 2023
64.61 %64.61 %64.61 %
28.12 %28.12 %28.12 %
7.27 %7.27 %7.27 %
Taxes and Payments in Lieu of Taxes
Program Revenues
Other
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
12
FINANCIAL
SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City’s governmental acvies net posion increased by $201.6 million over the prior scal year. The following net changes
occurred during the course of operaons in scal year 2023. In the assets accounts, cash and investments increased by $239.7
million, receivables increased by $76.4 million, and capital assets increased by $229.0 million. In the liability accounts, there was
an increase in warrants and accounts payable of $8.0 million and an increase in accrued liabilies of $31.9 million. Addionally,
an increase of $33.4 million was recorded relave to the City’s other postemployment benet obligaon and an increase of
$794.0 million was recorded relave to the City’s net pension liability in 2023.
During scal year 2023, the City’s revenues increased by 13.2%. The City’s largest sources of revenues were property taxes,
excise taxes, and payment in lieu of taxes of $3.36 billion (64.6% of total revenues) and $1.46 billion of program revenues
(28.1% of total revenues). Taxes increased by $244.0 million from the previous year. Program revenues increased by $250.1
million for scal year 2023. This is largely due to increases in operang grants and contribuons and charges for services. The
City’s expenses cover a range of services. The largest expenses were for schools ($2.58 billion), public safety ($1.3 billion),
general government ($260.6 billion), public works ($171.6 million), and property and development ($324.0 million). In 2023,
governmental acvies expenses exceeded program revenues (i.e., user charges, operang grants, and capital grants) by $3.53
billion. This shorall was covered primarily through taxes ($3.36 billion) and unrestricted grants and contribuons ($266.5
million).
Comparave data on these revenues and expenses is itemized in the reporng of the Changes in Net Posion – Primary
Government earlier in this Management Discussion and Analysis.
This analysis is based on the Governmental and Proprietary Fund Financial Statements. As noted earlier, the City uses fund
accounng to ensure and demonstrate compliance with nance-related legal requirements.
Governmental Funds – Fund Balances – as of the close of scal year 2023, the City’s governmental funds reported a combined
ending fund balance of $2.39 billion, an increase of $422.0 million from the prior year. Of this total amount, $1.2 billion
represents the unassigned fund balance.
The focus of the City’s governmental funds is to provide informaon on near term inows, oulows, and balances of spendable
resources. Such informaon is useful in assessing the City’s nancial requirements. In parcular, unassigned fund balance may
serve as a useful measure of a government’s nancial posion at the end of the scal year.
– The General Fund is the chief operang fund of the City. The City’s General Fund – Fund
Balance Policy states in part to maintain a GAAP unassigned fund balance in the General Fund that is 15%, or higher, of GAAP
General Fund operang expenditures for the scal year. The GAAP unassigned fund balance at the end of scal year 2023 was
$1.2 billion, which represents approximately 28.6% of GAAP General Fund operang expenditures. The General Fund - fund
balance increased due to an increase in excise taxes, investment income, payments in lieu of taxes, licenses and permits and
intergovernmental revenue.
However, because the City is required to follow the statutory basis of accounng rather than GAAP for determining the amount
of unassigned fund balance that can be appropriated, it is the statutory (not the GAAP) fund balance that is used to calculate
“free cash”. Free cash is the amount of statutory fund balance in the General Fund, as cered by the Commonwealth of
Massachuses’ Department of Revenue, which is available for appropriaon and is generated when actual revenues, on a cash
basis, exceed budgeted amounts and encumbrances are less than appropriaons, or both.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
13
MANAGEMENT’S DISCUSSION AND ANALYSIS
The City has established the General Fund-Fund Balance Policy to ensure that the City maintains adequate levels of fund
balance to migate current and future risks (i.e., revenue shoralls and unancipated expenditures). The policy in full states
that the City shall maintain a GAAP Unassigned Fund Balance in the General Fund that is 15% or higher than the current scal
year’s GAAP General Fund Operang Expenditures. The City shall only consider the cercaon of Free Cash (as dened by the
Commonwealth of Massachuses’ Department of Revenue) in years where the appropriaon of Free Cash shall not cause the
scal year’s GAAP Unassigned Fund Balance to go below 15% of the scal year’s GAAP General Fund Operang Expenditures,
while maintaining a Budgetary Unassigned Fund Balance at 10% or higher of Budgetary Operang Expenditures. The City shall
only consider the appropriaon of Cered Free Cash to oset: (1) certain xed costs such as pension contribuons and related
post-rerement health benets; and/or (2) to fund extraordinary and non-recurring events as determined and cered by the
City Auditor.
– The Special Revenue Fund accounts for the proceeds of specic revenue sources that
are restricted or commied to expenditures for predened purposes. The scal year 2023 Special Revenue Fund balance is
reported at $370.8 million, a $38.2 million increase from scal year 2022. This increase was mainly driven by the increase in
new federal programs related to COVID-19 relief.
– The Capital Projects Fund accounts for nancial resources to be used for the acquision
or construcon of major capital facilies, other than those nanced by proprietary funds and pooled funds. The scal year
2023 Capital Projects Fund balance is $277.4 million, an $85.0 million increase from scal year 2022.
– Other Governmental Funds account for assets held by the City in permanent
funds, as well as the acvies related to DSRC and FBDC. The scal year 2023 Other Governmental Funds fund balance is $130.7
million, a $7.1 million increase from scal year 2022.
The City’s Internal Service Fund accounts for the City’s self-insurance program for health benets provided by Blue Cross Blue
Shield and Mass General Brigham Health Plan, for City employees and their dependents. The Internal Service Fund is included
as part of the governmental acvies in the government-wide nancial statements.
General Fund budgetary highlights include ending scal year 2023 with a $192.6 million surplus. There were no material
variances between the original budget and nal budget amounts. Unfavorable variances from the nal budget to actual results
occurred in public safety and judgments and claims.
Favorable results were reported for General Fund revenue sources, including $35.8 million in payments in lieu of taxes, $34.5
million of licenses and permits, $30.2 million in departmental and other revenue, $5.8 million of property tax and $85.3 million
in investment income. Other available funds shows a revenue decit of $71.0 million, however, this is primarily a result of not
transferring other available funds such as $30.0 million of parking meter funds, $1.0 million of cemetery funds and $40 million
in appropriated funds from the general fund.
Capital Assets
The City’s investment in capital assets for its governmental acvies, as of June 30, 2023, has a net book value of $2.96 billion,
made up of costs totaling $5.69 billion less accumulated depreciaon of $2.76 billion. This investment in capital assets includes
land, buildings, improvements, equipment, infrastructure, and construcon in progress. Infrastructure assets are items that
are normally immovable and have value only to the City, such as roads, bridges, streets, sidewalks, drainage systems, lighng
systems, and similar items.
The total increase in the City’s investment in capital assets for the current scal year was approximately $229.0 million in terms
of net book value. However, actual expenditures to purchase or construct capital assets and contribuons of capital assets were
$371.0 million for the scal year. Most of this amount was used for the purpose of construcng or reconstrucng buildings and
building improvements and infrastructure. Depreciaon charges for the year totaled $151.9 million. Addional informaon on
the City’s capital assets can be found in note 8 to the Financial Statements.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
14
FINANCIAL
SECTION
MANAGEMENT’S DISCUSSION AND ANALYSIS
– The authority of the City to incur debt is governed by federal and state laws that restrict the amounts
and purposes for which a municipality can incur debt. At year end, the City had $1.67 billion in General Obligaons Bonds
principal outstanding – an increase of $210.9 million over last year.
On May 4th, 2023 , the City issued $350 million of general obligaon bonds for various municipal capital projects. In conjuncon
with the City’s annual bond oering, the rang service bureau Moody’s Investors Service rearmed the City’s bond rangs at
Aaa and the rang service bureau Standard & Poor’s rearmed the bond rang to AAA. General Obligaon Bonds are backed by
the full faith and credit of the City, including the City’s power to levy addional taxes to ensure repayment of debt. Accordingly,
all general obligaon debt currently outstanding has been approved by a vote of the City Council.
– The City’s general long term notes and equipment
nancing payable and other long term obligaons increased by $861.5 million, or 21.5%, during the current scal year. Key
factors for this increase are an increase in the net pension liability of $794.0 million.
Addional informaon on the City’s long term debt obligaons can be found in note 10 to the Financial Statements.
During the scal year ended June 30, 2023, the City adopted GASB Statement No. 91, Conduit Debt Obligaons, GASB
Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, GASB Statement No.
96, Subscripon-Based Informaon Technology Arrangements and GASB Statement No. 99, Omnubus 2022.
Addional informaon regarding the eects of adopng these new accounng standards can be found in Note 2(t) of the
nancial statements.
FUTURE PRONOUNCEMENTS
The GASB has issued Statement No. 100 Accounng changes and error correcons - an amendment of GASB Statement No. 62,
Statement No. 99, Omnibus 2022, Statement No. 101, Compensated Absences and Statement No. 102, Certain Risk Disclosures.
The City is currently evaluang the impact of these standards on future periods.
REQUESTS FOR INFORMATION
This nancial report is designed to provide a general overview of the City’s nances for all of the City’s cizens, taxpayers,
customers, investors, and creditors. Quesons concerning any of the informaon provided in this report or requests for
addional informaon should be addressed to: City of Boston, Auding Department, Boston City Hall, Room M 4, Boston, MA
02201. Alternavely, these requests may also be made through email, by contacng the Auding Department at CityAuditor@
boston.gov.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
15
See accompanying notes to the basic nancial statements
June 30, 2023
(Amounts in thousands)
Primary
Government
Aggregate
Discretely
Presented
Component
Units
Current Assets:
Cash and investments $ 3,025,326
$ 198,567
Cash and investments held by trustees 148,568
24,225
Receivables, net
Property and other taxes 33,449
-
Intergovernmental 197,294
-
Other 25,634
10,426
Other assets 14,022
75,181
Due from primary government -
3,178
Due from component units
4,459
-
Total current assets
3,448,752
311,577
Noncurrent Assets:
Cash and investments held by trustee -
66,230
Notes and other receivables 26,012
1,962,524
Capital assets:
Nondepreciable assets 458,759
37,898
Depreciable, net
2,500,866
69,843
Total noncurrent assets
2,985,637
2,136,495
Total assets
6,434,389
2,448,072
Deferred amount for pension costs 763,197
64,575
Deferred amount from OPEB 237,543
6,910
Deferred amount from debt refunding
917
-
1,001,657
71,485
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
16
FINANCIAL
SECTION
See accompanying notes to the basic nancial statements
June 30, 2023
(Amounts in thousands)
Primary
Government
Aggregate
Discretely
Presented
Component
Units
Current Liabilies:
Warrants and accounts payable 186,844 41,666
Accrued liabilies - current:
Compensated absences 69,174 113
Judgments and claims 121,565 -
Payroll and related costs 268,041 -
Deposits and other 148,789 6,632
Unearned revenue 382,919 7,537
Current poron of long-term bonds, notes and equipment nancing payable 199,861 -
Due to component units 3,178 -
Due to primary government
-
4,459
Total current liabilies
1,380,371
60,407
Noncurrent Liabilies:
Bonds due in more than one year 1,736,987 10,889
Notes and equipment nancing payable due in more than one year 62,843 -
Other noncurrent liabilies 388,886 144,032
Net pension liability 1,874,239 155,241
Other postemployment benets obligaon 2,343,584 80,780
Unearned revenue
-
78,126
Total noncurrent liabilies
6,406,539
469,068
7,786,910
529,475
Deferred amount for pension costs 88,463 16,537
Deferred amount for OPEB 157,115 46,831
Deferred amount for leases 9,877 1,706,081
Deferred amount from debt refunding
7,705
-
263,160
1,769,449
Net investment in capital assets 1,206,883 91,166
Restricted for:
Other Purposes 138,970 85,483
Capital projects 18,731 -
Unrestricted surplus (decit)
(1,978,608)
43,984
$ (614,024)
$ 220,633
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
17
See accompanying notes to the basic nancial statements
Year Ended June 30, 2023
(Amounts in thousands)
Program Revenues
Capital Grants
Grants and
and
Expenses
Governmental acvies:
General government $ 260,589 $ 51,459 $ 181,799 $ 8,247
Human services 69,950 88 16,442 -
Public safety 1,262,121 172,392 72,380 8,883
Public works 171,610 33,230 8,732 11,295
Property and development 324,015 5,632 138,732 420
Parks and recreaon 67,172 601 5,903 1,165
Library 71,312 49 4,312 572
Schools 2,575,648 11,821 700,873 26,788
Public health programs 148,884 - 85 -
Interest on long-term debt
45,056
-
-
-
$ 4,996,357
$ 275,272
$ 1,129,258
$ 57,370
Boston Public Health Commission $ 229,958 $ 45,066 $ 117,450 $ -
Boston Planning & Development Agency 31,366 25,566 - -
Trustees of the Public Library of the City of Boston 20,351 2,883 16,264 -
Economic Development and Industrial Corporaon of Boston
56,544
44,061
24,229
923
Total component units
$ 338,219
$ 117,576
$ 157,943
$ 923
General Revenues:
Taxes:
Property taxes, levied for general purposes
Excises
Payments in lieu of taxes
Grants and contribuons not restricted
Investment income
City appropriaon
Miscellaneous
Special item - gain on sale of property
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
18
FINANCIAL
SECTION
See accompanying notes to the basic nancial statements
Net (Expense) Revenue and Changes
in Net Posion
Component
Units
$ (19,084) $ -
(53,420) -
(1,008,466) -
(118,353) -
(179,231) -
(59,503) -
(66,379) -
(1,836,166) -
(148,799) -
(45,056)
-
$ (3,534,457)
$ - $ (67,442)
- (5,800)
- (1,204)
-
12,669
$ (61,777)
$ 2,959,106 $ -
295,941 -
103,315 -
266,455 -
109,546 13,059
- 3,463
1,734 120,025
-
34,919
3,736,097
171,466
201,640 109,689
(815,664)
110,944
$ (614,024)
$ 220,633
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
19
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
June 30, 2023
(Amounts in thousands)
General
Special
Capital
Other
Funds
Total
Funds
ASSETS
Cash and investments $ 1,928,610
$ 692,131
$ 304,355
$ 17,818
$ 2,942,914
Cash and investments held by trustees -
- 35,405
113,163
148,568
Receivables, net:
Property and other taxes 33,449
- -
-
33,449
Intergovernmental 9,595
168,968 18,731
-
197,294
Departmental and other
29,243
22,070
-
333
51,646
Total receivables 72,287
191,038 18,731
333
282,389
Due from other funds 927
3,384 -
-
4,311
Due from component units
3,510
-
-
-
3,510
Total assets
$ 2,005,334
$ 886,553
$ 358,491
$ 131,314
$ 3,381,692
Warrants and accounts payable $ 57,115
$ 36,218
$ 69,657
$ 341
$ 163,331
Accrued liabilies:
Payroll and related costs 268,041
- -
-
268,041
Deposits and other 30,503
91,534 -
26
122,063
Unearned revenue -
382,919 -
-
382,919
Due to other funds 796
3,163 183
169
4,311
Due to component unit
3,178
-
-
-
3,178
$ 359,633
$ 513,834
$ 69,840
$ 536
$ 943,843
Revenue not considered available and leases
38,745
1,963
11,222
112
52,042
$ 38,745
$ 1,963
$ 11,222
$ 112
$ 52,042
Nonspendable -
- -
21,504
21,504
Restricted -
36,498 277,429
109,162
423,089
Assigned 420,028
334,258 -
-
754,286
Unassigned
1,186,928
-
-
-
1,186,928
Total fund balances
1,606,956
370,756
277,429
130,666
2,385,807
of resources and fund balances
$ 2,005,334
$ 886,553
$ 358,491
$ 131,314
$ 3,381,692
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
20
FINANCIAL
SECTION
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
June 30, 2023
(Amounts in thousands)
$ 2,385,807
Amounts reported for governmental acvies in the statement of net posion are dierent because:
Capital assets used in governmental acvies are not nancial resources and therefore are not reported in
the governmental fund nancial statements
2,959,625
Certain revenues of the government-wide nancial statements are earned but not considered available
in the governmental fund nancial statements
42,164
Internal service funds are included in the government-wide nancial statements
70,685
Some liabilies are not due and payable in the current period and therefore are not reported in the funds.
Those liabilies consist of
General obligaon bonds and notes payable (1,692,974)
Equipment nancing payable (74,545)
Leases (15,587)
Subscripon IT arrangements (12,521)
Bond issue premiums/discounts, net (232,172)
Deferred bond refunding losses/gain, net (6,786)
Accrued interest on bonds (15,309)
Compensated absences (256,215)
Landll (5,288)
Judgments and claims (274,247)
Other postemployment benets, net of deferred amounts (2,263,156)
Net pension liability, net of deferred amounts (1,223,005)
Polluon remediaon
(500)
$ (614,024)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
21
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Year Ended June 30, 2023
(Amounts in thousands)
General
Other
Funds
Total
Funds
Real and personal property taxes
2,988,917 $ 89 $ -
$ - $ 2,989,006
Excises
298,077 29 -
- 298,106
Payments in lieu of taxes
103,315 - -
- 103,315
Fines
60,429 - -
- 60,429
Investment income
88,404 1,687 -
14,808 104,899
Licenses and permits
102,244 34 -
- 102,278
Departmental and other
109,001 77,861 -
6,000 192,862
Intergovernmental
690,938
616,802
39,234
-
1,346,974
4,441,325
696,502
39,234
20,808
5,197,869
Current:
General government
154,252 49,441 -
15,149 218,842
Human services
40,938 17,085 -
- 58,023
Public safety
809,042 35,939 -
- 844,981
Public works
125,102 8,167 -
- 133,269
Property and development
41,491 243,653 -
- 285,144
Parks and recreaon
33,905 4,911 -
- 38,816
Library
44,041 4,312 -
- 48,353
Schools
1,357,011 280,881 -
- 1,637,892
Public health programs
126,875 13,505 -
- 140,380
Judgments and claims
27,031 - -
- 27,031
Rerement costs
565,815 - -
- 565,815
Other employee benets
259,465 - -
- 259,465
State and district assessments
354,900 - -
- 354,900
Capital outlays
18,601 2,254 389,833
- 410,688
Debt service
200,723
-
-
-
200,723
Total expenditures
4,159,192
660,148
389,833
15,149
5,224,322
282,133
36,354
(350,599)
5,659
(26,453)
Long term debt, leases and subscripon IT
arrangements issued
11,714 - 385,669
- 397,383
Premiums on long-term debt issued
- 1,146 49,926
- 51,072
Transfers in
40,000 40,705 -
1,454 82,159
Transfers out
(42,159)
(40,000)
-
-
(82,159)
9,555
1,851
435,595
1,454
448,455
291,688 38,205 84,996
7,113 422,002
1,315,268
332,551
192,433
123,553
1,963,805
$ 1,606,956
$ 370,756
$ 277,429
$ 130,666 $ 2,385,807
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
22
FINANCIAL
SECTION
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Year Ended June 30, 2023
(Amounts in thousands)
422,002
Amounts reported for governmental acvies in the statement of acvies are dierent
because:
Governmental funds report capital outlays as expenditures In the statement of acvies,
the cost of those assets is depreciated over their esmated useful lives:
Capital outlays and contribuons of capital assets 371,004
Depreciaon expense (151,880)
Loss of disposals
(3,157)
215,967
Certain revenues in the statement of acvies that are not reported as revenues in the
governmental funds as they are not considered available
9,658
Long-term liabilies are not due and payable in the current period and, therefore, are not reported in the governmental
funds:
Issuance of long-term debt and equipment nancing agreement (385,494)
Repayment of bonds, notes and equipment nancing payable 170,109
Bond premiums (net) (34,201)
Deferred loss on refunding 80
Leases/SBITA’s 1,328
Workers compensaon 9,323
Net pension liability, net of deferred amounts (73,972)
Compensated absenses (8,616)
Net other postemployment benets liability, net of deferred amounts (93,071)
Judgements and claims (34,447)
Landll closure and post closure costs 380
Interest payable
(284)
(448,865)
Net operang income from the internal service fund, which is presented in the statement
of acvies, but not in the governmental funds
2,878
$ 201,640
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
23
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
(Amounts in thousands)
2023
Actual
Variance
2022
Actual
Real and personal property taxes, net $ 2,963,299
2,963,299
$ 2,969,073
$ 5,774
$ 2,793,795
Excises 161,275 161,275 298,136 136,861
210,697
Commonwealth of Massachuses 508,686 508,686 493,969 (14,717)
469,990
Departmental and other revenue 69,913 69,913 100,140 30,227
96,108
Fines 54,165 54,165 60,630 6,465
61,754
Payments in lieu of taxes 66,499 66,499 102,298 35,799
91,837
Investment income 3,000 3,000 88,335 85,335
4,429
Licenses and permits 64,935 64,935 99,392 34,457
84,032
Miscellaneous 267 267 267 -
267
Other available funds
110,950
110,950
40,000
(70,950)
55,000
4,002,989
4,002,989
4,252,240
249,251
3,867,909
General government 193,771 190,784 190,784 -
186,040
Human services 46,911 41,368 41,368 -
37,088
Public safety 755,981 755,774 785,717 (29,943)
784,791
Public works 135,411 134,889 134,889 -
133,199
Property and development 78,838 79,719 79,719 -
70,966
Parks and recreaon 35,053 42,155 42,031 124
39,135
Library 43,274 44,106 43,962 144
40,924
Schools 1,374,030 1,379,457 1,379,456 1
1,294,706
Boston Public Health Commission 117,884 120,802 120,802 -
114,802
Judgments and claims 5,000 5,000 32,026 (27,026)
34,509
Other employee benets 273,365 268,302 268,302 -
258,778
Rerement costs 357,756 387,491 387,491 -
327,014
Debt requirements 218,457 198,243 198,243 -
184,093
State and district assessments
367,258
354,899
354,899
-
332,585
Total expenditures
4,002,989
4,002,989
4,059,689
(56,700)
3,838,630
$ 192,551
$ 192,551
$ 29,279
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
24
FINANCIAL
SECTION
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Proprietary Fund
June 30, 2023
(Amounts in thousands)
Current assets:
Cash and cash equivalents $ 82,412
Due from component unit
949
Total current assets
83,361
Noncurrent assets:
Other assets
14,022
Total noncurrent assets
14,022
Total assets
$ 97,383
Current liabilies:
Accrued liabilies
26,698
$ 26,698
Unrestricted
70,685
$ 70,685
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
25
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Proprietary Fund
Year Ended June 30, 2023
(Amounts in thousands)
Employee contribuons $ 91,162
Employer contribuons
212,163
303,325
Health benets
300,447
300,447
2,878
67,807
$ 70,685
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
26
FINANCIAL
SECTION
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Proprietary Funds
Year Ended June 30, 2023
(Amounts in thousands)
Cash received from employees and employer $ 303,877
Cash paid to vendors
(306,485)
(2,608)
85,020
$ 82,412
RECONCILIATION OF OPERATING INCOME TO NET CASH
Operang income $ 2,878
Adjustments to reconcile operang income to
net provided by operang acvies:
Changes in operang assets and liabilies:
Other assets (2,174)
Due from component units/recievables 552
Accounts payable and accrued liabilies
(3,864)
$ (2,608)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
27
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Fiduciary Funds
June 30, 2023
(Amounts in thousands)
Pension and
Funds
Purpose
Trusts
Custodial
Funds
Cash and cash equivalents $ 610,654 $ 150,854 $ 11,562
Receivables:
Interest and dividends 14,022 - -
Securies sold 6,468 - -
Employer contribuons 21,466 - -
Other
7,152
5,082
-
Total receivables 49,108 5,082 -
Prepaid Expenses 954 - -
Other Assets - 30 -
Investments, at fair value:
Short term:
Domesc 80,116 - -
Internaonal 11,621 - -
Equity:
Domesc 1,783,519 - -
Internaonal 1,668,078 - -
Fixed-income:
Domesc 1,327,061 - -
Internaonal 377,986 - -
PRIT Pooled Fund 1,907,914 - -
Real estate 714,668 - -
Alternave
1,042,278
-
-
Total investments
8,913,241
-
-
Securies lending short-term
collateral investment pool
158,416
-
-
Total assets
9,732,373
155,966
11,562
Accounts payable, accrued
expenses and other liabilies 33,120 1,726 -
Securies purchased 28,219 - -
Unearned revenue - 3,077 -
Collateral held on securies lending
156,770
-
-
218,109
4,803
Deferred amount for leases
-
2,529
-
2,529
Pension Benets 8,532,760 - -
OPEB Benets 981,504
-
-
Other Purposes
-
-
11,562
$ 9,514,264 $ 148,634 $ 11,562
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
28
FINANCIAL
SECTION
FUND FINANCIAL STATEMENTS
See accompanying notes to the basic nancial statements
Fiduciary Funds
Year Ended June 30, 2023
(Amounts in thousands)
Pension and
Funds
Purpose
Trusts
Custodial
Funds
Employers $ 584,935
$ - $ -
Commonwealth of Massachuses (nonemployer) 196,833
- -
Employees 189,082
- -
Donaons and other
-
344
1,086
970,850
344
1,086
Net appreciaon in fair value of investments (1,061,271)
- -
Investment income 196,663
29,871 -
Less investment expenses
(65,173)
-
-
(929,781)
29,871
-
Securies lending income 3,470 - -
Less borrower rebates and fees
(2,680)
-
-
790
-
-
(928,991)
29,871
Intergovernmental 8,805
-
Miscellaneous income
98
-
1,512
50,762
30,215
2,598
Benets 844,207
- -
Reimbursements 10,181
- -
Refunds of contribuons 16,920
- -
Administrave expenses and other
8,536
25,086
2,722
879,844
25,086
2,722
(829,082)
5,129 (124)
10,343,346
143,505
11,686
$ 9,514,264
$ 148,634
$ 11,562
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
29
NOTES TO FINANCIAL STATEMENTS
June 30, 2023
a. Primary Government
The City of Boston (the City), incorporated as a town in 1630 and as a city in 1822, now exists under Chapter 486 of
the Act of 1909 and Chapter 452 of the Acts of 1948 of the Commonwealth of Massachuses (the Commonwealth),
which, as amended, constute the City’s Charter. The Mayor is elected to a four year term and serves as chief execuve
ocer of the City. The Mayor has general supervision of and control over the City’s boards, commissions, ocers,
and departments. The legislave body of the City is the City Council, which consists of 13 elected members serving
two year terms.
The accompanying basic nancial statements present the City and its component units. The component units
discussed below are included in the City’s reporng enty because of the signicance of their operaonal or nancial
relaonships with the City.
b. Blended Component Units Disclosure
i.
is a dened benet contributory rerement system created under state statute.
It is administered by a Rerement Board comprising ve members: the City Auditor, who serves ex ocio; two
individuals elected by parcipants in the system; a fourth member appointed by the Mayor; and a h member
chosen by the other members. BRS provides pension benets to rered City, Boston Planning & Development
Agency, Boston Housing Authority, Boston Water and Sewer Commission, and Boston Public Health Commission
employees. Although legally separate, BRS provides services enrely, or almost enrely, to the City and thus has
been reported as a blended component unit among the City’s duciary funds. The nancial statements of BRS
are included for its scal year end, which is December 31, 2022.
ii.
– The
DSRC is a Qualied Acve Low-Income Community Business, and is the owner and developer of the Dudley
Municipal Center property. FBDC is the leverage lender of the Dudley Municipal Center property. FBDC leases
the property from DSRC and the City subleases the property from FBDC. The DSRC and FBDC are non-prot
organizaons qualied as tax-exempt enes under Secon 501(c)(3) of the Internal Revenue Code. Both enes
are instrumentalies of the City, as the Mayor has full control of appointments to their boards of directors.
Although legally separate, both DSRC and FBDC provide services enrely, or almost enrely, to the City and thus
have been reported as blended component units. These funds are presented as non-major funds within the other
governmental funds. Financial statements are included for their scal year end, which is June 30, 2023.
Audited nancial statements of these discretely presented component units can be obtained through the City Auditor’s
oce, Room M 4, City Hall Plaza, Boston, Massachuses 02201.
c. Discretely Presented Component Units Disclosure
These component units are reported in a separate column to emphasize that they are legally separate from the City
but are included because the City is nancially accountable for the organizaons, meaning it appoints, at a minimum,
a vong majority of the board of directors of the organizaon and is able to impose its will on the organizaons or
has a nancial benet or burden relaonship with the organizaons. Unless otherwise indicated, the Notes to the
Financial Statements pertain only to the primary government because certain disclosures of the component units are
not signicant relave to the total component units and to the primary government. A descripon of the component
units, criteria for inclusion, and their relaonship with the City are as follows:
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
30
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
i. – The BPDA is legally separate from the City and a body polic
and corporate constung the City’s redevelopment authority and exercising the powers of a planning board for
the City. The BPDA is governed by a ve-member board, four of whom are appointed by the Mayor and conrmed
by the City Council, and one of whom is appointed by the Governor of Massachuses (same board members as
the EDIC). The BPDA receives a signicant amount of intergovernmental revenue, which is used solely for capital
projects that are under the oversight of the BPDA. In accordance with GASB Statement No. 61, the BPDA is
presented as a discrete component unit of the City.
ii.
– The EDIC is legally separate from the
City and a body polic and corporate and an instrumentality of the Commonwealth. The EDIC is governed by a
ve-member board, four of whom are appointed by the Mayor and conrmed by the City Council, and one of
whom is appointed by the Governor of Massachuses (same board members as the BPDA). The EDIC receives
a signicant amount of intergovernmental revenue, including grants and contracts with the City for jobs and
community service acvies. In accordance with GASB Statement No. 61, the EDIC is presented as a discrete
component unit of the City.
iii. – The BPHC is legally separate from the City and a body polic and
corporate and an instrumentality of the Commonwealth. The BPHC is governed by a seven-member board, six
of whom are appointed by the Mayor and conrmed by the City Council, and one of whom is the chief execuve
ocer of the Boston Medical Center. The BPHC receives the majority of its funding from a City appropriaon,
Emergency Management Services and other third party billings, and federal and state grants. The BPHC expects
that the City will connue to provide support for the public health programs of the BPHC. In accordance with
GASB Statement No. 61, the BPHC is presented as a discrete component unit of the City.
iv. – The TPL is legally separate from the City of Boston and
is a non-prot organizaon qualied as a tax-exempt enty under Secon 501(c)(3) of the Internal Revenue Code.
The trustees of the TPL are appointed by the Mayor and the TPL places substanal reliance upon the City to fund
its daily operaons. In addion, the Library receives signicant support through state and federal government
appropriaons and private sources. In accordance with GASB Statement No. 61, the TPL is presented as a discrete
component unit of the City.
The nancial statements of the discretely presented component units are included for their respecve scal year
ends, which is June 30, 2023.
Audited nancial statements of these discretely presented component units can be obtained through the City Auditor’s
oce, Room M 4, City Hall Plaza, Boston, Massachuses 02201. In addion, condensed nancial statements for the
discretely presented component units are included in note 21.
d. Related Organizaons
The Mayor is also responsible for appoinng members of the governing bodies of the Boston Housing Authority,
Boston Industrial Development Finance Authority, and Boston Water and Sewer Commission; however, the City’s
accountability for these organizaons does not extend beyond making these appointments.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
31
NOTES TO FINANCIAL STATEMENTS
The accounng policies of the City conform to U.S. generally accepted accounng principles as applicable to governmental
units as prescribed by the Governmental Accounng Standards Board (GASB). The following is a summary of the more
signicant policies followed by the City:
a. Government-wide and Fund Financial Statements
The Government-wide Financial Statements (i.e., the Statement of Net Posion and the Statement of Acvies)
report informaon on all of the non duciary acvies of the primary government and its component units. For the
most part, the eect of interfund acvity has been removed from these statements. Governmental acvies, which
normally are supported by taxes and intergovernmental revenues, are reported separately from any business-type
acvies, which rely to a signicant extent on fees and charges for support. The City currently reports no business-type
acvies. Likewise, the primary government is reported separately from certain legally separate component units for
which the primary government is nancially accountable.
The Statement of Acvies demonstrates the degree to which the direct expenses of a given funcon or segment is
oset by program revenues. Direct expenses are those that are clearly idenable with a specic funcon or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benet from goods,
services, or privileges provided by a given funcon or segment and 2) grants and contribuons that are restricted
to meeng the operaonal or capital requirements of a parcular funcon or segment. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
Separate nancial statements are provided for Governmental Funds, Proprietary Funds, and Fiduciary Funds, even
though the laer are excluded from the Government-wide Financial Statements. Major individual Governmental Funds
are reported as separate columns in the Fund Financial Statements.
b. Measurement Focus, Basis of Accounng, and Financial Statement Presentaon
i.
The Government-wide Financial Statements are reported using the economic resources measurement focus and
the accrual basis of accounng, as are the Proprietary Fund and Fiduciary Fund Financial Statements, including
the Custodial Funds. Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the ming of related cash ows. 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 for
recognion have been met.
ii.
Governmental Fund Financial Statements are reported using the current nancial resources measurement focus
and the modied accrual basis of accounng. Revenues are recognized as soon as they are “suscepble to accrual”
(i.e., both measurable and available). Revenues not considered to be available are recorded as deferred inows
of resources.
The City applies the suscepble to accrual criteria to property and other taxes and intergovernmental revenues.
In applying the suscepble to accrual concept to intergovernmental revenues, there are essenally two types
of revenues. In one, resources must be expended on the specic purpose or project before any amounts will be
reimbursed to the City; therefore, revenues are recognized based upon the amount of expenditures incurred
subject to availability requirements. In the other, resources are virtually unrestricted and are usually revocable by
the grantor only for failure to comply with prescribed compliance requirements. These resources are reected as
revenues at the me of receipt or earlier if the suscepble to accrual criteria are met. Property and other taxes
are recognized as revenue in the year for which taxes have been levied or earned, provided they are collected
within 60 days aer year-end. Generally, intergovernmental revenues are recognized as revenue provided they
are earned during the year and collected within one year aer year-end, except for Massachuses School Building
Authority (MSBA) and Chapter 90 receivables which are considered available when received.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
32
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Expenditures generally are recorded when a liability is incurred. However, debt service expenditures, as well as
expenditures related to long-term liabilies including leases, compensated absences, other postemployment
benets, workers’ compensaon and judgments and claims, are recorded only when payment is mature and due.
iii. Proprietary Financial Statements
Proprietary funds disnguish operang revenues and expenses from nonoperang items. Operang revenues and
expenses generally result from the provision of services. The principal operang revenues of the City’s Internal
Service Funds are receipts from employer and employees for health insurance premiums. Operang expenses for
the Internal Service Fund include administrave expenses, vendor payments, and health benets. Any revenues
and expenses not meeng this denion are reported as nonoperang revenues and expenses.
iv.
Governmental funds – The City reports the following major governmental funds:
1. The General Fund is the City’s primary operang fund. It accounts for all nancial resources of the general
government, except those required to be accounted for in another fund.
2.
The Special Revenue Fund accounts for the proceeds of specic revenue sources (other than trusts for
individuals, private organizaons, or other governments, or for major capital projects) that are legally
restricted or assigned to expenditures for various general governmental funcons. Revenue sources include
grant funding for educaon, housing, and public safety and 1% surcharge on the Community Preservaon Act.
3.
The Capital Projects Fund accounts for bond proceeds and grant revenues used for the acquision or
construcon of the City’s capital facilies.
Proprietary fund –The City reports the following proprietary fund:
4.
The City uses an internal service fund to account for its self-insured health costs. Although the fund is presented
in a separate column in the accompanying proprietary fund nancial statements, it is not considered a major
fund.
Fiduciary Funds – The City reports the following duciary fund types:
5.
The Private Purpose Trust Funds are used to account for resources legally held in trust for the benet
of individuals, private organizaons, or other governments. The City operates four pools used for the
improvement of the City’s parks and cemeteries, educaonal scholarships and sporng equipment, creaon
of public ulity and beauty, and co-mingled non testamentary trusts.
6. The Pension Trust Fund accounts principally for the acvies of the Boston Rerement System, a blended
component unit, which accumulates resources for pension benet payments to rered employees of the
City and other enes.
7. The OPEB Trust Fund is an irrevocable trust fund established for other postemployment benets. The assets
are appropriated from the General Fund and accumulate to reduce the City’s total OPEB liability. The assets
of the trust are currently not used for direct payments of benets.
8. The Custodial Funds are used to report funds held by the City in a purely custodial capacity. The City currently
operates a drug evidence account for proceeds of property seized from illegal drug-related acvies. These
funds are then used to oset the costs of technical equipment or experse and invesgaons. In addion,
the City operates student acvity funds and before and aer school accounts. The funds are used to oset
the costs running these programs for Boston Public Schools.
c. Cash Equivalents
For purposes of the statement of cash ows, investments with original maturies of three months or less when
purchased are considered to be cash equivalents.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
33
NOTES TO FINANCIAL STATEMENTS
d. Basis of Investment Valuaon
Investments generally are presented in the accompanying basic nancial statements at fair value. Where applicable,
fair values are based on quotaons from naonal securies exchanges, except for certain investments of BRS, which
are described in notes 5 and 12. Further, income from investments is recognized in the same fund as the related
investments.
The City invests in the Massachuses Municipal Depository Trust (MMDT) Cash Porolio, which is an external
investment pool and is not SEC-registered. The fund is state-regulated and is valued at amorzed cost.
e. Interfund Receivables and Payables
Acvity between funds that are representave of lending/borrowing arrangements outstanding at the end of the scal
year are referred to as either “due to/from other funds” (i.e., the current poron of interfund loans) or “advances to/
from other funds” (i.e., the noncurrent poron of interfund loans). All other outstanding balances between funds are
reported as “due to/from other funds.”
f. Uncollecble Tax and Other Receivables
All receivables are shown net of an allowance for uncollecbles. Amounts considered to be uncollecble are based
on the type and age of the related receivable.
g. Capital Assets (excluding leases)
Capital assets include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and
similar items), and intangible assets such as easements, land use rights, computer soware, trademarks and patents.
Capital assets are reported in the governmental acvies column in the Government-wide Financial Statements.
Capital assets are dened by the City as assets with an inial, individual cost of more than $25,000 and an esmated
useful life in excess of one year. Such assets are recorded at historical cost or esmated historical cost if purchased
or constructed. Donated capital assets are recorded at acquision value at the date of donaon. Any signicant
construcon commitments are encumbered at year end in the City’s Capital Projects Fund.
The costs of normal maintenance and repairs that do not add to the capacity or eciency of the asset or materially
extend assets’ useful lives are not capitalized.
Capital assets of the primary government are depreciated using the straight line method over the following esmated
useful lives:
Assets
Years
Buildings 30
Building improvements 30
Infrastructure 30
Land improvements - major 30
Land improvements - playgrounds 15
Computer upgrades 10
Equipment and machinery 10
Intangible assets, computer soware and licenses 5
Computers and related equipment 3
Furniture and xtures 3
Motor vehicles 3
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
34
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
h. Unearned Revenue
Resources received in advance are reported as unearned revenues unl the period of the exchange. Intergovernmental
revenues represenng grants and assistance from other governmental units are generally recognized as revenues in
the period when all eligibility requirements, as dened by GASB Statement No. 33, have been met. Any resources
received before eligibility requirements are met are reported as deferred inows of resources, except CPA, Universal
Pre-K and American Rescue Plan (ARP) Act funds, which are reported as unearned revenue. The City received a total
amount of $67.5 million of ARP Act funds during the scal year 2023. The City met eligibility requirements for $327.1
million as of June 30, 2023.
i. Compensated Absences
Employees are granted sick and vacaon leave in varying amounts. Upon rerement, terminaon, or death, certain
employees are compensated for unused sick and vacaon leave (subject to certain limitaons) at their then current
rates of pay. Public Safety employees are compensated for unused personal leave in addion to sick and vacaon
leave. The poron of the liability related to unused sick and vacaon me that has matured or is due as of June 30,
2023 is recorded in the Governmental Fund Financial Statements. The enre amount of the liability is reported in
governmental acvies in the Government-wide Financial Statements. The liability for vacaon leave is based on the
amount earned but not used; for sick leave, it is based on the amount accumulated at the balance sheet date that
would be paid upon terminaon (vesng method). The liability for both amounts is calculated based on the pay or
salary rates in eect at the balance sheet date.
j. Long Term Obligaons and Related Costs
Long-term debt and other long term obligaons are reported as liabilies in the Government-wide Statement of Net
Posion. Bond premiums and discounts are capitalized and amorzed over the life of the bonds using the straight line
method, which approximates the eecve interest method. The unamorzed poron is presented in the Government-
wide Statement of Net Posion as a component of bonds payable. Bond issuance costs are reported as expenses
when incurred.
The Governmental Fund Financial Statements recognize bond premiums and discounts, as well as bond issuance
costs, during the period incurred. The face amount of debt issued is reported as other nancing sources. Premiums
received on debt issuances are reported as other nancing sources while discounts on debt issuances are reported as
other nancing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported
as debt service expenditures.
k. Pensions
For purposes of measuring the net pension liability, deferred oulows of resources and deferred inows of resources
related to pensions, and pension expense, informaon about the duciary net posion of the BRS and addions to/
deducons from the BRS duciary net posion have been determined on the same basis as they are reported by
BRS. For this purpose, benet payments (including refunds of employee contribuons) are recognized when due and
payable in accordance with the benet terms. Investments are generally reported at fair value.
l. Postemployment Benets Other Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred oulows of resources and deferred inows of resources
related to OPEB, and OPEB expense, informaon about the duciary net posion of the Other Postemployment Benet
Trust Fund (the Plan) and addions to/deducons from Plan’s duciary net posion have been determined on the
same basis as they are reported by the Plan. For this purpose, the Plan recognizes benet payments when due and
payable in accordance with the benet terms. Investments are generally reported at fair value.
m. Deferred Oulows of Resources and Deferred Inows of Resources
Deferred oulows of resources are dened as a consumpon of net assets by the government that is applicable to a
future reporng period. Deferred inows of resources are dened as an acquision of net assets by the government
that is applicable to a future reporng period. Deferred oulows of resources increase net posion, similar to assets,
and inows of resources decrease net posion, similar to liabilies.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
35
NOTES TO FINANCIAL STATEMENTS
n. Leases (Lessor)
The City is a lessor for various noncancellable leases of land and buildings. For leases with a maximum possible term
of 12 months or less at commencement, the City recognizes income based on the provisions of the lease contract. For
all other leases (i.e. those that are not short-term), the City recognizes a lease receivable and an oseng deferred
inow of resources.
At lease commencement, the City inially measures the lease receivable at the present value of payments expected
to be received during the lease term. Subsequently, the lease receivable is reduced by the principal poron of lease
payments received. The deferred inow of resources is measured at the value of the lease receivable plus any payments
received at or before the commencement of the lease term that relate to future periods. The City recognizes interest
income on the lease receivable, and lease revenue from the deferred inows of resources in a systemac and raonal
manner over the term of the lease.
Key esmates and judgments include how the City determines the (1) discount rate it uses to calculate the present
value of the expected lease payments to be received, (2) lease term, and (3) lease payments to be received.
○ The City generally uses its esmated incremental borrowing rate as the discount rate for leases. The City’s
incremental borrowing rate for leases is based on a formula that adds together a risk-free rate of return (or
market interest rate) component and a credit spread component using actual market data that are never
more than 90 days old. The risk-free rate of return represents a consensus view of the cost of funds for a AAA-
rated municipal bond issuer, while the credit spread represents a similar consensus view of the addional risk
premium investors or lenders would demand to make a similar loan to enes across the rang spectrum.
○
The lease term includes the noncancellable poron of the lease, plus any addional periods covered by
either a City or lessee unilateral opon to (1) extend for which it is reasonably certain to be exercised, or (2)
terminate for which it is reasonably certain not to be exercised. Periods in which both the City and the lessee
have an opon to terminate are excluded from the lease term.
○
Lease payments to be received are evaluated by the City to determine if they should be included in the
measurement of the lease receivable, including those payments that require a determinaon of whether they
are reasonably certain of being received, such as xed rent, variable rent, and lease extension fees. Lease
receivable is composed of xed payments from the lessee.
The City monitors changes in circumstances that may require remeasurement of a lease. When certain changes occur
that are expected to signicantly aect the amount of the lease, the receivable is remeasured and a corresponding
adjustment is made to the deferred inow of resources.
Lease receivable is reported with notes and other receivables within the noncurrent asset secon of the statement
of net posion, net of the short-term poron of the lease receivable, which is reported with receivable, net – other
within the current asset secon.
o. Leases (Lessee) and Subscripon-Based Informaon Technology Arrangements
The City is a lessee for various noncancellable leases of buildings and equipment. The City also has noncancellable
subscripon IT arrangements (similar to a lease) for the right-to-use informaon technology soware (subscripon
IT arrangements). For leases and subscripon IT arrangements with a maximum possible term of 12 months or
less at commencement, the City recognizes expenses based on the provisions of the lease contract or subscripon
IT arrangement, respecvely. For all other leases and subscripon IT arrangements (i.e. those that are not short-
term), the City recognizes a lease or subscripon IT liability, respecvely, and an intangible right-to-use lease asset
or subscripon based IT asset, respecvely, in the governmental acvies column of the government-wide nancial
statements.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
36
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
At lease commencement, the City inially measures the lease liability at the present value of payments expected to
be made during the lease term. Subsequently, the lease liability is reduced by the principal poron of lease payments
made. The lease asset is inially measured at the inial amount of the lease liability, less lease payments made at
or before the lease commencement date, plus any inial direct costs ancillary to placing the underlying asset into
service, less any lease incenves received at or before the lease commencement date. Subsequently, the lease asset
is amorzed into amorzaon expense on a straight-line basis over the shorter of the lease term or the useful life of
the underlying asset. If the City is reasonably certain of exercising a purchase opon contained in a lease, the lease
asset will be amorzed over the useful life of the underlying asset.
At subscripon commencement, the City inially measures the subscripon IT liability at the present value of
payments expected to be made during the subscripon term. Subsequently, the subscripon IT liability is reduced
by the principal poron of subscripon payments made. The subscripon IT asset is inially measured at the inial
amount of the subscripon IT liability, less subscripon payments made at or before the subscripon commencement
date, plus the capitalized implementaon costs. Subsequently, the subscripon IT asset is amorzed into amorzaon
expense on a straight-line basis over the shorter of the subscripon term or the useful life of the underlying soware.
Key esmates and judgments include how the City determines the (1) discount rate it uses to calculate the present
value of the expected lease and subscripon payments to be made, (2) lease ad subscripon term and (3) lease and
subscripon payments to be made. These key esmates and judgments are similar to leases where the City is the
lessor as disclosed in note 2(n).
The City monitors changes in circumstances that may require remeasurement of a lease or subscripon IT arrangement.
When certain changes occur that are expected to signicantly aect the amount of the lease or subscripon IT liability,
the liability is remeasured and a corresponding adjustment is made to the lease or subscripon IT asset.
Lease and subscripon IT assets are reported with capital assets, and lease and subscripon IT liabilies are reported
with other noncurrent liabilies in the statement of net posion, net of the short-term poron of the lease and
subscripon IT liability, which is reported with deposits and other, within the current liability secon.
p. Net Posion and Fund Balance
In the Government-wide and Proprietary Fund Financial Statements, net posion is reported in the following categories:
○ Net investment in capital assets: Capital assets, net of accumulated depreciaon, and outstanding principal
balances of debt aributable to the acquision, construcon, or improvement of those assets.
○
Restricted: Net posion the use of which is subject to constraints imposed by external pares, including
creditors, grantors, and laws and regulaons of other governments, or imposed by City Charter or enabling
legislaon. Nonexpendable amounts are required to remain intact under such constraints.
○ Unrestricted: Remaining net posion not considered net investment in capital assets or restricted.
For purposes of net posion classicaon, when both restricted and unrestricted resources are available for use, it is
the City’s policy to use restricted resources rst, then unrestricted resources as they are needed.
In the Governmental Fund Financial Statements, fund balance is reported in the following categories:
○ Nonspendable: Amounts that cannot be spent because they are either not in spendable form or they are
legally or contractually required to remain intact.
○
Restricted: Amounts the use of which is subject to constraints imposed by external pares, including creditors,
grantors, and laws and regulaons of other governments, or imposed by City Charter or enabling legislaon.
○ Commied: Amounts that can only be used for specic purposes pursuant to constraints imposed by formal
acon of the government’s highest level of decision-making authority. For the City, this formal acon takes
the form of statutes which are passed by the City Council and approved by the Mayor.
○ Assigned: Amounts that are constrained by the City’s intent for use for specic purposes, but are considered
neither restricted or commied. Under M.G.L. Chapter 190, Acts of 1982, the City Auditor has the authority
to assign amounts to be used for specic purposes on behalf of the City.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
37
NOTES TO FINANCIAL STATEMENTS
○ Unassigned: Amounts in the general fund that are not otherwise constrained for a specic purpose more
narrow than the general operaons of the City. The City maintains a formal policy that unassigned fund
balance in the General Fund be at least 15 percent of the current year’s General Fund GAAP basis operang
expenditures.
For purposes of fund balance classicaon, when both restricted and unrestricted resources are available for use, it is
the City’s policy to use restricted resources rst, then unrestricted resources as they are needed. When unrestricted
resources are used, commied resources are used rst, followed by assigned and unassigned resources, respecvely.
q. Tax Abatement Refunds
Matured tax abatement refunds that are due and payable at June 30 have been recorded as an allowance in the
General Fund. A liability for esmated future tax abatement refunds has been recorded in the Government-wide
Statement of Net Posion.
r. Landll Closure and Postclosure Care Costs
State and federal regulaons require the City to place a nal cover on its Gardner Street landll site when it stops
accepng waste and to perform certain maintenance and monitoring funcons at the site for 30 years aer closure.
At June 30, 2023, 100% of the Gardner Street landll had been capped.
The total current cost of landll closure and postclosure care is an esmate, subject to changes resulng from inaon,
deaon, technology, or other changes in applicable laws or regulaons. Such costs are recognized as expenditures in
the General Fund to the extent that they are due or matured and are expected to be paid with expendable available
nancial resources. The total liability is reported in the Government-wide Statement of Net Posion. Expenditures
related to the Gardner Street landll site post closure care in scal year 2023 were $380 thousand.
s. Use of Esmates
The preparaon of the accompanying basic nancial statements in conformity with U.S. generally accepted accounng
principles requires management to make esmates and assumpons that aect the reported amounts of assets and
liabilies and disclosure of conngent assets and liabilies at the date of the nancial statements and the reported
amounts of revenues and expenses during the reporng period. Actual results could dier from those esmates.
t. Adopon of Accounng Pronouncements
The City adopted the following new accounng pronouncements issued by the GASB during the current scal year
ended June 30, 2023:
○ Statement No. 91, Conduit Debt Obligaons. The primary objecves of this Statement are to provide a single
method of reporng conduit debt obligaons by issuers and eliminate diversity in pracce associated with
(1) commitments extended by issuers, (2) arrangements associated with conduit debt obligaons, and (3)
related note disclosures. The Requirements of this Statement are eecve for reporng periods beginning
aer December 15, 2021.
○ Statement No. 94, Private-Private and Public-Public Partnerships and Availability Payment Arrangements. A
Public-Private and Public-Public Partnership (PPP) is an arrangement in which a government (the transferor)
contracts with an operator to provide public services by conveying control of the right to operate or use a
nonnancial asset, such as infrastructure or other capital assets (the underlying PPP asset), for a period of
me in an exchange or exchange-like transacon. Availability payment arrangements (APS) have also been
used in pracce to procure governmental services. This Statement establishes standards of accounng and
nancial reporng for PPPs and APAs for governments. The requirements of this Statement are eecve for
the scal year that ends June 30, 2023.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
38
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
○
Statement No. 96, Subscripon-Based Informaon Technology Arrangements (SBITAS). SBITAS are
arrangements that governments enter into vendor-provided informaon technology, soware and associated
tangible capital assets for subscripon payments without granng governments perpetual license or tle to
the IT soware and associated tangible capital assets. This Statement establishes accounng and nancial
reporng for SBITAS. The requirements for this Statement take eect for nancial statements starng with
the scal year that ends June 30, 2023.
○
Statement No. 99, Omnibus 2022. The requirements related to leases, PPPs, and SBITAs are eecve for scal
years beginning aer June 15, 2022, and all reporng periods thereaer.
Implementaons of the above GASB Statements have no material eect on amounts reported in the City’s nancial
statements.
The City is currently reviewing its accounng pracces to determine the potenal impacts on the nancial statements
for the following GASB Statements.
○
Statement No. 99, Omnibus 2022. The requirements related to nancial guarantees and the classicaon and
reporng of derivave instruments within the scope of Statement 53 are eecve for scal years beginning
aer June 15, 2023, and all reporng periods thereaer.
○ Statement No. 100, Accounng Changes and Error Correcons – an amendment of GASB Statement No. 62.
The requirements of this Statement are eecve for accounng changes and error correcons made in scal
years beginning aer June 15, 2023, and all reporng periods thereaer.
○
Statement No. 101, Compensated Absences. This Statement amends the exisng requirements to disclose the
gross increases and decreases in a liability for compensated absences to allow governments to disclose only
the net change in the liability. In addion, governments are no longer required to disclose which governmental
funds typically have been used to liquidate the liability for compensated absences. The requirements of this
Statement are eecve for scal years beginning December 15, 2023, and all reporng periods thereaer.
○
Statement No. 102, Certain Risk Disclosures. This Statement requires a government to assess whether a
concentraon or constraint makes the primary government reporng unit or other reporng units that report
a liability for revenue debt vulnerable to the risk of a substanal impact. Addionally, this Statement requires
a government to assess whether an event or events associated with a concentraon or constraint that could
cause the substanal impact have occurred, have begun to occur, or are more likely than not to begin to
occur within 12 months of the date the nancial statements are issued. The requirements of this Statement
are eecve for scal years beginning aer June 15, 2024, and all reporng periods thereaer.
During scal year 2023, the City had no short term debt issued or outstanding.
The General Fund is the only fund for which a budget is legally adopted. The budgets for all departments included in the
General Fund of the City, except the School Department, are prepared under the direcon of the Mayor and City Council.
The School Department budget is prepared under the direcon of the School Commiee.
Original and supplemental appropriaons are submied by the Mayor, approved by the City Council, and lapse at year-end unless
encumbered. The legal level of control over appropriaons is at the department level. Amendments to the original budget must
be approved by the City Council, except for a reallocaon of appropriaons of up to $3.0 million, which the Mayor may approve.
Further, the City Auditor, with the approval of the Mayor, may make transfers from any appropriaon to any other appropriaon for
purposes of eliminang decits before closing the books for the scal year. Aer the close of the scal year, the City Auditor may,
with the approval of the Mayor, apply any income, taxes, and funds not disposed of and make transfers from any appropriaon to
any other appropriaon for the purpose of closing the accounts for the scal year.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
39
NOTES TO FINANCIAL STATEMENTS
The City must establish its property tax rate each year so that the resulng property tax levy will comply with the limits
required by Proposion 2 1/2 (note 6). The tax levy must equal the sum of (a) the aggregate of all annual appropriaons
for expenditures; plus (b) the reserve accounts described in the following paragraph; plus (c) provision for the prior scal
years’ decits, if any; less (d) the aggregate of all non-property tax revenues projected to be received by the City, including
available funds, in amounts cered or approved by the Commonwealth for tax rate purposes.
In accordance with the 1986 amendments to the Funding Loan Act of 1982, the City has established two reserve funds.
The rst is a budget reserve fund, which is required to be funded in stages to a nal level of 2 1/2% of the prior year’s
overall departmental appropriaons, except the School Department, by the beginning of scal year 1990. It is available to
be applied to extraordinary and unforeseen expenditures. The second is a separate reserve fund of 1% to 2-1/2% of the
current year appropriaon of the School Department to be applied to over-expenditures in that department.
The City’s General Fund budget is prepared on a basis other than accounng principles generally accepted in the United
States of America (GAAP). The “actual” results column in the Statement of Revenues and Expenditures – Budgetary Basis
– General Fund is presented on a “budgetary basis” to provide a meaningful comparison of actual results with the budget.
The major dierences between the budget and GAAP basis, where applicable, are that:
i.
Revenues are recorded when cash is received, except for real estate and personal property taxes, which are
recorded as revenue when levied (budget), as opposed to when suscepble to accrual (GAAP).
ii. Encumbrances and connuing appropriaons are recorded as the equivalent of expenditures (budget) but have
no eect on GAAP expenditures.
iii.
Certain acvies and transacons are presented in separate funds (GAAP), rather than as components of the
General Fund (budget).
iv.
Amounts raised for the prior years’ decits and available funds from prior years’ surpluses are recorded as revenue
items (budget), but have no eect on GAAP revenues.
In addion, there are certain dierences in classicaons between revenues, expenditures, and transfers. The following
reconciliaon summarizes the dierences between budgetary and GAAP basis accounng principles for the year ended
June 30, 2023 (in thousands):
Expenditures
uses, net
Excess
sources
As reported on a budgetary basis $ 4,252,240 $ 4,059,689 $ - $ 192,551
Adjustments:
Revenues to modied accrual basis (47,748) - 11,714 (36,034)
Expenditures, encumbrances, and accruals, net - (55,171) - 55,171
On-behalf contribuon for teachers pension 196,833 196,833 - -
Other transfers
40,000
(42,159)
(2,159)
80,000
As reported on a GAAP basis $ 4,441,325 $ 4,159,192 $ 9,555 $ 291,688
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
40
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
State and local statutes place certain limitaons on the nature of deposits and investments available to the City. Deposits,
including demand deposits, money markets, and cercates of deposit in any one nancial instuon, may not exceed
60% of the capital and surplus of such instuon unless collateralized by the nancial instuon involved. Investments
from operang cash in the general fund may be made in uncondionally guaranteed U.S. government obligaons having
maturies of a year or less from the date of purchase, or through repurchase agreements with maturies of no greater
than 90 days in which the underlying securies consist of such obligaons. Other allowable investments include authorized
bonds of all states, bankers’ acceptances, commercial paper rated within the three highest classicaons established by
rang agencies, and units in the MMDT. MMDT, which is an external investment pool that is overseen by the Treasurer
of the Commonwealth of Massachuses, meets the criteria established by GASB 79, “Certain External Investment Pools
and Pool Parcipants”, to report its investments at amorzed cost; therefore the City reports its investments in MMDT at
amorzed cost which approximates the net asset value of $1.00 per share. MMDT has a maturity of less than 1 year and
is not rated. The three highest commercial paper classicaons for Moody’s and Standard & Poor’s (S&P) are as follows:
Superior P1 A1+ or A1
P2 A2
Adequate P3 A3
a. Custodial Credit Risk
Custodial credit risk is the risk that in the event of bank failure, the City’s deposits or investments may not be returned. The
City carries deposits that are fully insured by FDIC insurance or collateralized in the City’s name. All of the City’s investments
are held by third pares in the City’s name. As of June 30, 2023, the City and the City of Boston Pooled Funds had uninsured
and uncollateralized deposits and investments of $572.1 million and $121.5 million, respecvely.
b. Investment Policy
The City’s primary concern in connecon with its investment acvies is a concern shared by all municipal governments: the
preservaon of capital. The City’s investment policy establishes a discipline in which all of the City’s investment acvies may
be safely conducted while it strives to use its capital resources as eciently as possible. The foundaon of that discipline is xed
by Massachuses General Laws (M.G.L.) c.44, sec. 55, which prohibits Massachuses communies from invesng in certain
categories of high risk investments; limits the amount of the City’s bank deposits in any one nancial instuon; and establishes
qualifying criteria for banking instuons. Further, all investments held by third pares are to be held in the City’s name.
c. Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely aect the fair value of an investment. It is the City of
Boston Pooled Funds’ policy to limit the average duraon of an acvely managed xed income porolio to seven years. The
following is a lisng of the City of Boston Pooled Funds’ xed income investments (in thousands) and related maturity schedule
(in years) as of June 30, 2023:
Fair Value
Less than 1
More than 10
Money market mutual funds $ 331,292
$ 331,292
$ -
$ -
$ -
Instuonal and mutual funds 48,499
13,281
20,703
7,489
7,026
U.S. Treasury and agency securies 193,818
65,965
25,876
22,819
79,158
State and local municipal obligaons 3,092
108
1,074
478
1,432
Corporate debt instruments 137,216
10,222
64,092
31,947
30,955
Internaonal Government Bonds 8,204
866
(793)
3,996
4,135
Commercial Paper 343,191
343,191
-
-
-
Corporate Note 71,999
71,999
-
-
-
Cercate of deposits
140,886
140,886
-
-
-
$ 1,278,197
$ 977,810
$ 110,952
$ 66,729
$ 122,706
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
41
NOTES TO FINANCIAL STATEMENTS
d. Credit Risk
It is the City of Boston Pooled Funds’ policy that there shall be no specic limitaon in regard to credit worthiness of
securies, except the overall average quality of each xed income porolio shall be AA or beer. The City of Boston
Pooled Funds’ xed income investments as of June 30, 2023 were rated by S & P and/or an equivalent naonal rang
organizaon, and the rangs are presented below using the S & P rang scale (in thousands):
Fair Value
Money Market mutual funds $ 331,292 Unrated
Instuonal and mutual funds 48,499 AAA to A3
U.S. Treasury and agency securies 193,818 AAA to A3
State and local municipal obligaons 1,981 AAA to A3
State and local municipal obligaons 291 Baa1 to B3
State and local municipal obligaons 820 Unrated
Corporate debt instruments 82,070 AAA to A3
Corporate debt instruments 42,145 Baa1 to B3
Corporate debt instruments 10,776 Caa1 to C
Corporate debt instruments 2,225 Unrated
Commercial Paper 343,191 A1 to A1+
Corporate Note 71,999 A to AA+
Internaonal Government Bonds 1,720 AAA to A3
Internaonal Government Bonds 5,817 Baa1 to B3
Internaonal Government Bonds 97 Caa1 to C
Internaonal Government Bonds 570 Unrated
Cercate of deposits
140,886
A1 to A1+
$ 1,278,197
e. Concentraon Risk
The City adheres to the provisions of M.G.L. c. 44, sec. 55 when managing concentraon risk. M.G.L. c. 44, sec.
55 contains several restricons liming where and under what circumstances the City may deposit its funds. No
investments in a single issuer exceeded 5% of the City’s investment porolio.
f. Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely aect the fair value of an investment or a
deposit. As of June 30, 2023, the City of Boston Pooled Funds held internaonal equity mutual funds valued at $102.7
million and internaonal government bonds valued at $8.2 million. Although these investments are not denominated
in a foreign currency, the underlying securies are denominated in various foreign currencies.
g. Fair Value Hierarchy
Investments are measured at fair value on a recurring basis. Recurring fair value measurements are those that GASB
statements require or permit in the Statement of Net Posion or Balance Sheet at the end of each reporng period.
Fair value measurements are categorized based on the valuaon inputs used to measure an asset’s fair value: Level
1 inputs are quoted prices in acve markets for idencal assets or liabilies that the reporng enty has the ability
to access at the measurement date; Level 2 inputs are other than quoted prices in Level 1 that are observable for
the asset or liability, or similar assets or liabilies either directly or indirectly through corroboraon with observable
market data; Level 3 inputs are signicant unobservable inputs that are supported by lile or no market acvity and
that are signicant to the fair value of the assets or liabilies.
The following is a descripon of the valuaon methodologies used for assets measured at fair value.
Money market funds: Valued at the daily closing price as reported by the fund. Money market funds held by the
Pooled Funds and the City are open-end money market funds that are registered with the Securies and Exchange
Commission. The money market funds held by the City and classied as Level 1 are deemed to be acvely traded.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
42
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Instuonal and mutual funds: Valued at the daily closing price as reported by the fund. Instuonal and mutual
funds held by the City are open-end funds that are registered with the Securies and Exchange Commission. The
instuonal and mutual funds held by the Pooled Funds and classied as Level 1 are deemed to be acvely traded.
If market quotaons are not readily available, the funds are valued by the pricing method determined by investment
managers which determines valuaons using methods based upon market transacons for comparable securies.
Real estate funds: Consist primarily of privately originated commercial mortgage loans secured by U.S. Commercial
Real Estate.
Equity securies: Consist primarily of corporate stocks traded on U.S. and non-U.S. acve security exchanges. Stocks
traded on acve exchanges and valued at quoted market prices and documented trade history for idencal assets are
categorized within Level 1 of the fair value hierarchy. If market quotaons are not readily available, the stocks may be
valued using pricing models maximizing the use of observable inputs for similar securies and are classied as Level 2.
US. Treasury and agency securies: Securies issued by the U.S. government, its agencies, authories and
instrumentalies are valued using quoted prices, documented trade history in the security, and pricing models
maximizing the use of observable inputs determined by investment managers.
Corporate debt instruments: Valued either by using pricing models maximizing the use of observable inputs for similar
securies or valued by the investment manager.
State and local municipal obligaons: Valued by independent pricing services that determine fair value valuaons
for normal, instuonal-sized trading units of such securies using yield data relang to idencal investments, or
investments with similar characteriscs, and other market inputs.
Internaonal government bonds: Bonds issued by foreign governments that are valued using quoted prices,
documented history in the security, and pricing models maximizing the use of observable inputs determined by
investment managers.
The preceding methods described may produce a fair value calculaon that may not be indicave of net realizable
value or reecve of future fair values. Furthermore, although the City believes its valuaon methods are appropriate
and consistent with other market parcipants, the use of dierent methodologies or assumpons to determine if the
fair value of certain nancial instruments could result in a dierent fair value measurement at the reporng date. The
City of Boston Pooled Funds have the following recurring fair value measurements as of June 30, 2023 (in thousands):
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
43
NOTES TO FINANCIAL STATEMENTS
Quoted Prices in
Assets
Inputs
Total
Investments:
Money market funds $ 331,292
$ -
$ -
$ 331,292
Instuonal and mutual funds 48,499
-
-
48,499
Equity securies 659,861
532
-
660,393
Real estate funds -
-
60,521
60,521
Commercial Paper 343,191
-
-
343,191
Corporate Note 71,999
-
-
71,999
US Treasury & agency securies 113,786
80,032
-
193,818
State and Local municipal obligaons 35
3,057
-
3,092
Corporate debt instruments 32,142
105,074
-
137,216
Internaonal Government Bonds
2,895
5,309
-
8,204
Total Investments:
$ 1,603,700
$ 194,004
$ 60,521
$ 1,858,225
a. Custodial Credit Risk
Custodial credit risk is the risk that in the event of bank failure, the System’s deposits may not be returned. The System carries
deposits that are fully insured by the Federal Deposit Insurance Corporaon (FDIC) insurance or collateralized with securies
held by the System or the System’s agent in the System’s name. As of December 31, 2022, all of the System’s deposits were
insured or collateralized.
b. Investment Policy
The provisions of M.G.L. C. 32, Sec 23(2); 840 C.M.R. 16-19, 21, 23, 26; and, the System’s own investment regulaons (stated
at hp://www.mass.gov/perac/board-info/proles/investment/ bostonintsup.html) govern the System’s investment pracce.
Diversicaon is aained through varied investment management styles that comply with Massachuses state law. This is
accomplished through the retenon of investment managers that adhere to M.G.L. C. 32, Sec. 3(3), the “Prudent Person” rule.
The System has retained an investment consultant to work with The Boston Rerement Board in a duciary capacity to assure
that strategic investment diversicaon is aained, to employ investment managers with experse in their respecve asset
classes, and to closely monitor the implementaon and performance of the respecve investment strategies.
The System is currently invested in stocks (domesc and foreign), xed income securies (domesc and foreign), real estate,
private equity, Pension Reserve Investment Trust (PRIT) and hedge funds.
c. Interest Rate Risk
The following is a lisng of the System’s xed income investments (in thousands) and related maturity schedule (in years) as
of December 31, 2022:
Fair Value
Less than 1
More than 10
U.S. treasury notes and bonds $ 224,035 $ 1,206 $ 107,450 $ 70,491 $ 44,888
U.S. agencies 137,984 - 7,173 2,188 128,623
Domesc corporate 1,023,138 2,720 103,615 135,956 780,847
Municipal 4,326 - 1,078 1,150 2,098
Internaonal corporate 9,376 - 5,309 3,271 796
Internaonal government 23,895 829 10,527 8,138 4,401
Asset-backed:
CMOs 43,079 - 35 1,918 41,126
Other
75,484
3,061
17,257
13,623
41,543
$ 1,541,317 $ 7,816 $ 252,444 $ 236,735 $ 1,044,322
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
44
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
The System’s guidelines do not specically address limits on maturies as a means of managing its exposure to fair
value losses arising from increasing interest rates. The managers of each xed income porolio is responsible for
determining the maturity and commensurate returns of their porolio.
The collateralized mortgage obligaons (CMOs) held by the System as of December 31, 2022 are highly sensive to
changes in interest rates.
d. Credit Risk
The System allows investment managers to apply discreon under the “Prudent Person” rule. Investments are made,
as a prudent person would be expected to act with discreon and intelligence, to seek reasonable income, preserve
capital, and, in general, avoid speculave investments.
The System’s xed income investments as of December 31, 2022 were rated by S & P and/or an equivalent naonal
rang organizaon and the rangs are presented below (in thousands) using the S & P rang scale:
Fair
Value
AAA
AA
A
CCC
CC
Not
rated
U.S. agencies
$ 137,984
$ 6,040
$ 661
$ 203
$ - $ - $ - $ -
$ -
$ 131,080
Domesc corporate
1,023,138
1,119
5,606
41,635
63,709
36,183
25,841
26,167
523
822,355
Municipal
4,326
60
3,178
936
-
-
-
-
-
152
Internaonal
corporate
9,376
-
156
1,075
977
1,636
5,114
404
-
14
Internaonal
government
23,895
398
960
5,553
10,788
3,169
2,764
150
-
113
Asset-backed:
CMOs
43,079
22,007
188
-
-
-
-
-
-
20,884
Other
75,484
44,558
711
3,547
2,736
6,376
1,806
-
-
15,750
$ 1,317,282
$ 74,182
$ 11,460
$ 52,949
$ 78,210
$ 47,364
$ 35,525
$ 26,721
$ 523
$ 990,348
In addion to the above schedule, the System has approximately $224.0 million invested in U.S. government securies,
which are not rated as they are explicitly guaranteed by the U.S. government.
e. Concentraon Risk
Other than the Pension Reserves Investment Trust (PRIT) fund, the System has no investments, at fair value, that
exceed 5% of the System’s total investments as of December 31, 2022. The System adheres to the provisions of
M.G.L. c. 32, sec. 23(2); 840 C.M.R. 16-19, 21, 23, 26; and the System’s own investment regulaons when managing
concentraon risk.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
45
NOTES TO FINANCIAL STATEMENTS
f. Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely aect the fair value of an investment or
a deposit. Similar to the investments in domesc equies, the System employs or encourages its investment advisor
to employ diversicaon, asset allocaon, and quality strategies.
Risk of loss arises from changes in currency exchange rates. The System’s exposure to foreign currency risk is presented
on the following table (in thousands):
Currency
Cash and
Fixed income
Equity
Total
Australian dollar
$ 176 $ - $ 30,201 $ -
$ 30,377
Austria
- - 3,171 -
3,171
Belgium
- - 3,297 -
3,297
Canadian dollar
1 - 14,768 -
14,769
Danish krone
6 - 39,226 -
39,232
Euro currency
1,968 - - 240
2,208
Finland
- - 16,705 -
16,705
France
- - 60,092 -
60,092
Germany
- - 35,576 -
35,576
Hong Kong dollar
- - 21,167 -
21,167
Ireland
- - 1,988 -
1,988
Isreal
30 - 821 -
851
Italy
- - 9,037 -
9,037
Japanese yen
7 - 106,936 -
106,943
Korea
46 - - -
46
Luxembourg
- - 1,062 -
1,062
Netherlands
- - 25,395 -
25,395
New Zealand dollar
- - 407 -
407
Norwegian krone
- - 141 -
141
Pound sterling
86 - 69,422 6,790
76,298
Singapore dollar
3 - 8,931 -
8,934
Spain
- - 9,699 -
9,699
Swedish krona
15 - 14,646 -
14,661
Swiss franc
86
-
63,854
-
63,940
Total securies subject to foreign
currency risk
$ 2,424
$ -
$ 536,542
$ 7,030
$ 545,996
U.S. dollars (securies held by
internaonal investment managers)
-
34,069
324,048
-
358,117
Total internaonal investment
securies
$ 2,424
$ 34,069
$ 860,590
$ 7,030
$ 904,113
g. PRIT External Investment Pooled Fund
The Massachuses legislature enacted Secon 17 of Chapter 112 of the Acts of 2010 that requires the System to
invest all assets, current and future, related to Boston Teachers in the PRIT fund. The PRIT pooled fund is an external
investment pool that is not registered with the Securies Exchange Commission, but is subject to oversight provided
by the Pension Reserves Investment Management Board (the PRIM Board). The PRIM Board was created by legislaon
to provide general supervision of the investments and management of PRIT. PRIT is not a rated fund.
The fair value of the PRIT pooled fund is based on unit value as reported by management of the PRIT pooled fund.
The PRIT pooled fund issues separately available audited nancial statements with a year-end of June 30.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
46
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
On July 1, 2010, the System transferred 27% of its assets, or $1.1 billion, to the PRIT pooled fund. As of December 31,
2022, the System had the following amounts invested in the PRIT fund (in thousands):
General allocaon account $ 1,907,914
Cash fund
197,309
Total PRIT pooled funds
$ 2,105,223
h. Derivaves
The System trades nancial instruments with o balance sheet risk in the normal course of its invesng acvies to assist in
managing exposure to market risks. The System uses forward foreign currency contracts to hedge against the risk of future
foreign currency uctuaons. As of December 31,
2022
, there were two pending forward currency contracts with a net noonal
amount of $64 thousand and fair value of $0.1 thousand.
i. Securies Lending
The Public Employment Rerement Administraon Commission of Massachuses (PERAC) has issued supplemental regulaons
that permit the System to engage in securies lending transacons. Securies lending is an investment management
enhancement that ulizes certain exisng securies of the Plan to earn addional income. These transacons are conducted
by the System’s custodian, which lends certain securies owned by the System to other broker dealers and banks pursuant to
a form of loan agreement. The System and the borrowers maintain the right to terminate all securies lending transacons
on demand.
Securies lending involves the loaning of securies to approved banks and broker-dealers. In return for the loaned securies, the
custodian, prior to or simultaneous with delivery of the loaned securies to the borrower, receives collateral in the form of cash
(including both U.S. and foreign currency) or U.S. government securies, sovereign debt of foreign countries, and irrevocable
bank leers of credit as collateral to serve as a safeguard against possible default of any borrower on the return of the loan.
The custodian does not have the ability to pledge or sell collateral unless the borrower defaults. Borrowers are required to
deliver collateral in the amounts equal to not less than 100% of the fair value of the loaned securies. The collateral is marked
to market on a daily basis. In the event the counterparty is unable to meet its contractual obligaon under the securies lending
arrangement, the Plan may incur losses equal to the amount by which the market value of the securies diers from the amount
of collateral held. The Plan migates credit risk associated with securies lending arrangements by monitoring the fair value of
the securies loaned on a daily basis, with addional collateral obtained or refunded as necessary.
The System does not impose any restricons on the amount of securies lent on its behalf by the custodian. There were no
failures by any borrowers to return loaned securies or pay distribuons thereon and there were no losses from a default of
the borrowers or the custodian for the year ended December 31,
2022.
The cash collateral received by the custodian on each
loan was invested, together with the cash collateral of other qualied tax-exempt plan lenders, in a collecve investment pool.
The relaonship between the average maturies of the investment pool and loans was aected by the maturies of the loans
made by other plans that invested cash collateral in the collecve investment pool, which the System could not determine.
The Plan maintains full ownership rights to the securies loaned and, accordingly, recognizes the amount of collateral received
as investment with corresponding obligaon to return such collateral on the statement of duciary net posion. At December
31,
2022
, the fair value of securies loaned by the System amounted to $244.4 million, against which was held collateral of
$252.1 million as follows (in thousands):
Short-term collateral investment pool $ 156,770
Noncash collateral
95,336
Total
$ 252,106
Securies lending income earned by the System is recorded on the accrual basis and was approximately $3.5 million
for the year ended December 31, 2022.
j. Commitments
At December 31, 2022, the System had contractual commitments to provide $483.0 million of addional funding to
private equity funds, and $224.0 million to real estate funds.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
47
NOTES TO FINANCIAL STATEMENTS
k. Fair Value Measurements
The Plan categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounng principles. The Plan has the following recurring fair value measurements as of December 31, 2022 (in
thousands):
Quoted Prices in
Assets
Other
Inputs
Total at December
31, 2022
Short-term:
Domesc $ 80,116
$ 80,116
$ -
Internaonal
11,621
11,621
-
Total short-term 91,737
91,737 -
U.S. equies:
Large cap core 588,314
588,314 -
Large cap growth 69,782
69,782 -
Large cap value 330,516
330,516 -
Small cap core 179,210
179,210 -
Small cap growth 113,154
113,154 -
Small cap value
104,018
104,018
-
Total U.S. equies 1,384,994
1,384,994 -
Internaonal equies 1,384,063
1,384,063 -
Fixed income securies:
U.S. treasury securies 224,035
224,035 -
Corporate debt securies 1,023,138
1,023,138 -
Global mul-sector xed income 33,271
- 33,271
Municipal 4,326
- 4,326
Collateralized mortgage obligaons 43,079
- 43,079
Other asset backed securies 75,484
- 75,484
U.S. Agencies
137,984
-
137,984
Total xed income securies
1,541,317
1,247,173
294,144
Total investments by fair value level
4,402,111
4,107,967
294,144
Government external investment pool:
PRIT fund 1,907,914
Investments measured at the net asset value (NAV):
Hedge fund of funds 328,745
Private equity funds 675,672
Private real estate funds
661,671
Total investments measured
at the NAV
1,666,088
Total investments at fair value
$ 7,976,113
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
48
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Fixed income and equity securies classied in Level 1 of the fair value hierarchy are valued using prices quoted in acve
markets for those securies. Fixed income securies classied in Level 2 of the fair value hierarchy are valued using a matrix
pricing technique. Matrix pricing is used to value securies based on the securies’ relaonship to benchmark quoted prices.
The PRIT pooled fund is an external investment pool that is not registered with the Securies and Exchange Commission, but is
subject to oversight provided by the Pension Reserves Investment Management Board (the PRIM Board). The PRIM Board was
created by legislaon to provide general supervision of the investments and management of PRIT. PRIT is not a rated fund. The
fair value of the PRIT pooled fund is based on unit value as reported by management of the PRIT pooled fund. The PRIT fund
issues separately available audited nancial statements with a year-end of June 30. The Plan is required to provide a 30-day
redempon noce for this investment.
The valuaon method for investments measured at the net asset value (NAV) per share (or its equivalent) is presented on the
following table (in thousands):
Fair Value
Unfunded
Commitments
Frequency
Global mul-strategy hedge fund of funds¹ $ 328,745
$ -
Quarterly
60-90 days
Real estate funds² 675,672
483,000
-
-
Private equity funds³ 661,671
224,000
-
-
1. Global Mul-strategy Hedge Fund of Funds. This type includes investments in 7 hedge funds that invest in other hedge fund managers. Management of each
hedge fund is given full discreon to invest with direct hedge fund managers. The fair value of the investments in this type has been determined using the NAV
per share of the investments.
2. Real Estate Funds. This type includes 35 real estate funds that invest primarily in U.S. commercial real estate. The fair values of the investments in this type have
been determined using the NAV per share (or its equivalent) of the System’s ownership interest in partners’ capital. Distribuons from each fund will be received
as the underlying investments of the funds are liquidated. It is expected that the underlying assets of the funds will be liquidated over the next 7 to 10 years.
3. Private Equity Funds. This type includes 61 private equity funds that invest primarily in U.S. companies. These investments can never be redeemed with the funds;
instead, the nature of the investments in this type is that distribuons are received through the liquidaon of the underlying assets of the funds. It is expected that
the underlying assets of the funds will be liquidated over the next 7 to 10 years.
Real and personal property taxes are based on values assessed as of each January 1. By law, all taxable property must be
assessed at 100% of fair cash value. Also by law, property taxes must be levied at least 30 days prior to their due date.
Once levied, these taxes are recorded as receivables, net of esmated uncollecble balances. Property tax revenues have
been recorded using the accrual and modied accrual basis of accounng as described in note 2.
The City bills and collects its property taxes on a quarterly basis following the January 1 assessment. The due dates for
those quarterly tax billings are August 1, November 1, February 1, and May 1. Property taxes that remain unpaid aer the
respecve due dates are subject to penales and interest charges.
Based on the City’s experience, most property taxes are collected during the year in which they are assessed. Liening of
properes on which taxes remain unpaid occurs annually. On December 6, 2022, all properes with unpaid scal year 2022
property taxes were liened. The City ulmately has the right to foreclose on all properes where the taxes remain unpaid.
A statewide property tax limitaon known as “Proposion 2 1/2” limits the amount of increase in the property tax levy in
any scal year. Generally, Proposion 2 1/2 limits the total levy to an amount not greater than 2 1/2% of the total assessed
value of all taxable property within the City. Secondly, the tax levy cannot increase by more than 2 1/2% of the prior year’s
levy plus the taxes on property newly added to the tax rolls. Certain provisions of Proposion 2 1/2 can be overridden by
a citywide referendum.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
49
NOTES TO FINANCIAL STATEMENTS
Receivables as of year end for the City’s individual major governmental funds and nonmajor governmental funds, including
the applicable allowances for uncollecble accounts, are as follows (in thousands):
General
Special
Capital
Other
funds
Total
Receivables:
Property taxes $ 24,986 $ - $ - $ -
$ 24,986
Motor vehicle/boat excise 33,660 - - -
33,660
Intergovernmental 9,595 168,968 18,731 -
197,294
Lease receivable 7,518 1,901 - 138
9,557
Departmental and other 21,725 20,169 - 195
42,089
Tax Title and possession
72,404
-
-
-
72,404
Gross receivables 169,888 191,038 18,731 333 379,990
Less allowance for uncollecbles
(97,601)
-
-
-
(97,601)
Net total receivables
$ 72,287
$ 191,038
$ 18,731
$ 333
$ 282,389
a. Long Term Receivable
The City parcipates in the Commonwealth’s school building assistance program, which is administered by the MSBA.
The MSBA provides nancial assistance (up to 80% of total costs) to the City to build and/or renovate schools. As of
June 30, 2023, under this program, the City was due funds of $5.2 million.
b. Notes Receivable
Secon 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program. Secon 108
provides communies with a source of nancing for economic development, housing rehabilitaon, public facilies,
and large scale physical development projects. Housing and Urban Development (HUD) provides grants or loans to
local governments, which in turn provides loans to developers. As of June 30, 2023, under this program, the City
determined that $19.7 million was collecble. This amount is recorded in the City’s Special Revenue fund.
c. Tax Abatement Programs
The City enters into tax abatement agreements that meet the reporng requirements of GASB Statement No. 77 “Tax
Abatement Disclosures”. Below are descripons of the tax abatement programs and the amount of real estate taxes
that were abated for each program during the scal year.
Chapter 121A
Chapter 121A of the Massachuses General Laws authorizes a local government in cooperaon with its redevelopment
authories to suspend the imposion of real and personal property taxes, beerments and special assessments on
properes determined to be “blighted” in order to encourage the redevelopment of residenal, commercial, civic,
recreaonal, historic or industrial projects by Chapter 121A Corporaons. The City receives two principal sources of
revenue from Chapter 121A Corporaons. The rst consists of an excise, as determined under Secon 10 of Chapter
121A, that each Chapter 121A Corporaon must pay to the Commonwealth that is then distributed to the City.
The second form of revenue consists of payments as required by a contract between the City and Chapter 121A
Corporaons as authorized by Chapter 121A, Secon 6A that provide for addional revenue beyond the excise
provided under Secon 10 of Chapter 121A.
Chapter 121B
Chapter 121B of the Massachuses General Laws authorizes a local government, at their opon and through their
redevelopment authories, to undertake public acons to address substandard or blighted open areas for residenal,
commercial, industrial, business, government, recreaonal, educaonal, hospital or other uses. Chapter 121B project
owners may be exempted from property taxes. In these cases, an agreement to make annual in lieu of tax payments
to the City is required.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
50
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Tax Increment Financing (TIF)
Tax Increment Financing (TIF) is a property tax incenve authorized under the Economic Development Incenve
Program pursuant to Massachuses General Laws Chapter 40, Secon 59 and administered by the Commonwealth’s
Economic Assistance Coordinang Council. In return for substanal job creaon, a local government may provide
businesses with tax relief on the incremental growth in their property’s value for up to 20 years. In Boston, TIF projects
must be approved by the Mayor and City Council.
The following are esmated taxes abated for the year ended June 30, 2023 by tax abatement program (in thousands):
(1)
Tax Amount
In Lieu of Tax
Payments
Taxes Abated
121A Urban Redevelopment
$ 56,683
$ 20,303
$ 36,380
121B Urban Redevelopment
16,703
13,743
2,960
Tax Increment Financing
8,354
7,083
1,271
Total
$ 81,740
$ 41,129
$ 40,611
(1) Individual tax abatement agreements are available upon request or through the City of Boston Assessing Department website at boston.gov/assessing
d. Lease Receivable
The City leases out its land, buildings and infrastructure for various operaonal purposes to third pares. The details
of these noncancellable leases are as follows:
Land
Land
Infrastructure
No. of Leases 2 20 1 2
Terms 120 - 330 Months 21 - 152 months 51 Months 70 - 72 Months
Interest Rates 0.637% - 1.524% 0.075% - 2.322% 0.417% 0.165% - 0.637%
The City’s incremental borrowing rates, which varies depending on the length of the respecve leases, were applied
to these leases since there were no specic interest rates for each of the lease agreements.
The City’s lease receivables and deferred inows of resources at June 30, 2023 were valued as follows (in thousands):
General
Fund
Special
Fund
Other
Funds
Total
Funds
Purpose
Trust
Lease receivable - current poron $ 2,510
$ 624
$ 84
$ 3,218
$ 211
Lease receivable - noncurrent poron
5,008
1,277
54
6,339
2,363
Total lease receivable
$ 7,518
$ 1,901
$ 138
$ 9,557
$ 2,574
Deferred inows of resources
$ 7,866
$ 1,899
$ 112
$ 9,877
$ 2,529
The total amount of inows of resources related to leases recognized in the current scal year are as follows (in
thousands):
General
Fund
Special
Fund
Other
Funds
Total
Funds
Purpose
Trust
Lease revenue
$3,247
$623
$72
$3,942
$224
Interest revenue
$69
$3
$1
$73
$16
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
51
NOTES TO FINANCIAL STATEMENTS
Capital Asset
Capital asset acvity for the governmental acvies for the year ended June 30, 2023 was as follows (in thousands):
balance
Increases
Decreases
balance
Governmental acvies:
Capital assets not being depreciated:
Land $ 43,426
$ 3
$ -
$ 43,429
Construcon in progress
403,979
336,598
(325,247)
415,330
Total capital assets not being depreciated
447,405
336,601
(325,247)
458,759
Capital assets being depreciated:
Land improvements 394,325
25,205
-
419,530
Buildings and improvements 2,821,494
220,074
(31)
3,041,537
Furniture and equipment 582,198
52,883
(18,931)
616,150
Infrastructure
1,089,309
61,488
-
1,150,797
Total capital assets being depreciated
4,887,326
359,650
(18,962)
5,228,014
Less accumulated depreciaon for:
Land improvements 191,917
18,565
-
210,482
Buildings and improvements 1,504,989
68,022
(31)
1,572,980
Furniture and equipment 480,370
33,238
(15,774)
497,834
Infrastructure
443,149
32,055
-
475,204
Total accumulated depreciaon
2,620,425
151,880
(15,805)
2,756,500
Total capital assets being depreciated, net
2,266,901
207,770
(3,157)
2,471,514
Governmental acvies capital assets, net excluding lease
assets
$ 2,714,306
$ 544,371
$ (328,404)
2,930,273
Lease and subscripon IT assets-net, note 11
29,352
Total capital assets reported in the statement of net posion
$ 2,959,625
Depreciaon expense was charged to funcons of the governmental acvies as follows (in thousands):
General government $ 10,920
Human services 3,480
Public safety 25,261
Public works, including depreciaon of general infrastructure assets 31,035
Property and development 10,062
Parks and recreaon 17,876
Library 8,480
Schools 44,461
Public health
305
Total depreciaon expense - governmental acvies
$ 151,880
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
52
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Individual fund receivable and payable balances at June 30, 2023 are as follows (in thousands):
Interfund balances
Payable
General
$ 927 $ 796
Capital
-
183
Special revenue
3,384
3,163
Non-major governmental funds
-
169
Balances at June 30, 2023
$ 4,311
$ 4,311
The purpose of the internal balances is to fund cash ows due to ming dierences between receipts and disbursements
and to record amounts owed for rent related to the Dudley Municipal Center property.
Amounts due to and from discretely presented component units at June 30, 2023 are as follows (in thousands):
Discrete component unit balances
Payable
Primary government:
General
$ 3,510
$ 3,178
Internal Service
949
-
Balances at June 30, 2023
4,459
3,178
Discretely presented component units:
TPL
-
791
BPHC
3,178
1,050
BPDA
-
2,618
3,178
4,459
Balances at June 30, 2023
$ 7,637
$ 7,637
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
53
NOTES TO FINANCIAL STATEMENTS
Governmental Acvies
The following is a summary of the long-term obligaons of the governmental acvies of the City as of June 30, 2023
(in thousands):
Interest
rates
year
end of year
one year
General obligaon bonds 0-5.30%
$ 1,463,985
$ 350,000
$ 139,080
$ 1,674,905
$ 170,090
Add (deduct):
Unamorzed bond premiums/discounts
232,172
Current poron of long-term debt
(170,090)
$ 1,736,987
Interest rates
year
end of year
one year
Notes payable 2-5%
$ 20,286
$ -
$ 2,217
$ 18,069
$ 958
Equipment nancing payable
67,863
35,494
28,812
74,545
28,813
Judgements and claims
17,173
31,778
27,031
21,920
13,162
Tax abatements
39,800
41,951
12,251
69,500
22,900
Workers’ compensaon
192,149
41,206
50,528
182,827
58,466
Health and life claims
30,371
296,763
300,447
26,687
26,687
Compensated absences
247,599
101,230
92,614
256,215
69,174
Landll closure and postclosure care costs
5,668
-
380
5,288
350
Polluon remediaon
500
-
-
500
-
Other postemployment benets
2,310,198
201,353
167,967
2,343,584
-
Net pension liability
1,080,235
1,541,204
747,200
1,874,239
-
Total bonds, notes,
and other long-term
obligaons, excluding lease liabilies
$ 4,011,842
$ 2,290,979
$ 1,429,447
4,873,374
220,510
Lease and subscripon IT liabilies, note 11
28,108
11,417
Total bonds, notes, leases,
and other long-term
obligaons
$ 6,638,469
$ 402,017
The payment of long-term obligaons of the governmental acvies, except for health and life claims, is the responsibility
of the City’s General Fund. Health and life claims are the responsibility of the City’s Internal Service Fund.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
54
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
The annual debt service requirements of the City’s general obligaon bonds, notes and leases payable as of June 30,
2023, including subsidies to be received for Build America Bonds and Qualied School Construcon Bonds, are as follows
(in thousands):
General Obligaon Bonds:
Principal
Interest
Subsidy
Total
Year(s) ending June 30:
2024 $ 170,090 $ 69,896 $ (1,897) $ 238,089
2025 168,725 62,414 (1,366) 229,773
2026 148,420 55,506 (814) 203,112
2027 129,000 48,827 (254) 177,573
2028 108,225 43,887 (202) 151,910
2029-2033 437,240 161,911 (202) 598,949
2034-2038 320,185 81,651 - 401,836
2039-2043
193,020
20,716
-
213,736
$ 1,674,905 $ 544,808 $ (4,735) $ 2,214,978
Notes Payable:
Year(s) ending June 30:
2024 $ 958 $ 470 $ - $ 1,428
2025 993 447 - 1,440
2026 1,054 423 - 1,477
2027 1,135 397 - 1,532
2028 1,146 369 - 1,515
2029-2033 8,492 1,283 - 9,775
2034-2037
4,291
137
-
4,428
$ 18,069 $ 3,526 $ - $ 21,595
Equipment nancing payable:
Year(s) ending June 30:
2024 $ 28,813 $ 1,522 $ - $ 30,335
2025 21,545 995 - 22,540
2026 11,572 547 - 12,119
2027 6,423 300 - 6,723
2028 4,007 135 - 4,142
2029-2030
2,185
66
-
2,251
$ 74,545 $ 3,565 $ - $ 78,110
On May 4, 2023, the City issued $350.0 million of general obligaon bonds for various municipal capital projects. Interest
on the bonds are payable semiannually each May 1 and November 1 unl maturity in scal year 2041.
The City has entered into various nancing agreements for equipment acquision. Payments under these agreements are
subject to annual appropriaon and, by statute, are not included in the City’s debt limit calculaons.
The City has no outstanding lines of credit.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
55
NOTES TO FINANCIAL STATEMENTS
No Obligaon Debt
The City has outstanding industrial, commercial, and housing development bonds payable solely from revenues of the
respecve enterprises that do not constute an indebtedness of the City and are not charged against its general credit.
This aggregate amount is immaterial to the nancial statements.
Defeased Debt
The principal amount of debt refunded through in substance defeasance transacons for governmental acvies and sll
outstanding at June 30, 2023 was approximately $46.4 million.
Debt Capacity
The City is subject to a dual general debt limit: the normal debt limit and the double debt limit. Such limits are equal to 5%
and 10%, respecvely, of the valuaon of taxable property in the City as last equalized by the Massachuses Department of
Revenue. Debt may be authorized up to the normal debt limit without state approval. Authorizaons under the double debt
limit, however, require the approval of the Commonwealth’s Secretary of Administraon and Finance. Addionally, there
are many categories of general obligaon debt, which are exempt from the debt limit but are subject to other limitaons.
As of June 30, 2023, the City may issue $7.86 billion of addional general obligaon debt under the debt limit. General
obligaon debt of $1.87 billion, subject to the debt limit, and $149 million, exempt from the debt limit, are authorized
but unissued as of June 30, 2023.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
56
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
The City is a lessee for noncancellable leases of buildings and equipment. The details of these noncancellable leases are
as follows:
Equipment
No. of Leases 12 491
Terms 32 - 120 Months 27 - 60 months
Interest Rates 0.198% - 2.673% 0.165% - 2.583%
The City also has noncancellable subscripon arrangements (similar to a lease) for the right-to-use various informaon
technology soware (subscripon IT arrangements). The details of these noncancellable subscripon IT arrangements
are as follows:
No. of subscripon arrangements 24
Terms 18 - 47 months
Interest Rates 1.580% - 3.689%
The City’s incremental borrowing rates, which vary depending on the length of the respecve leases and subscripon IT
arrangements, were applied to those leases and subscripon IT arrangements that do not have a specic interest rate.
Lease and subscripon asset acvity for the governmental acvies for the year ended June 30, 2023 was as follows (in
thousands):
balance
Increases
Decreases
Governmental acvies:
Lease assets:
Buildings $ 12,379 $ 4,158 $ 1,066 $ 15,471
Equipment 7,818 30 17 7,831
Subscripon IT assets
13,307
7,702
-
21,009
Total
33,504
11,890
1,083 44,311
Less accumulated amorzaon for lease assets:
Buildings 2,028 2,941 1,066 3,903
Equipment 1,879 2,128 17 3,990
Accumulated amorzaon for subscripon IT assets
-
7,066
-
7,066
Total
3,907 12,135
1,083 14,959
Total lease and subscripon IT assets - net
$ 29,597
$ (245)
$ -
$ 29,352
Amorzaon expense was charged to funcons of the governmental acvies as follows (in thousands):
General government $ 6,764
Public safety 481
Property and development 103
Library 37
Human Services 79
Schools
4,671
Total $ 12,135
The following is a summary of changes in lease and subscripon IT liabilies for the year ended June 30, 2023 (in thousands):
end of year
one year
Governmental acvies:
Lease liabilies $ 16,372 $ 4,188 $ 4,973 $ 15,587 $ 4,459
Subscripon IT liabilies
13,307
7,702
8,488
12,521
6,958
Total governmental acvies
$ 29,679
$ 11,890
$ 13,461
$ 28,108
$ 11,417
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
57
NOTES TO FINANCIAL STATEMENTS
Payments under lease agreements and subscripon IT arrangements are subject to annual appropriaon and, but statute,
are not included in the City’s debt limit calculaons.
The annual debt service requirements of the City’s lease liabilies as of June 30, 2023 are as follows (in thousands):
Principal
Interest
Total
Year(s) ending June 30:
2024 $ 4,459 $ 183 $ 4,642
2025 3,615 147 3,762
2026 1,850 116 1,966
2027 1,459 91 1,550
2028 948 68 1,016
2029 - 2033
3,256
132
3,388
Total
$ 15,587
$ 737
$ 16,324
The annual debt service requirements of the City’s subscripon IT liabilies as of June 30, 2023 are as follows (in thousands):
Principal
Interest
Total
Year(s) ending June 30:
2024 $ 6,958 $ 322 $ 7,280
2025
5,563
146
5,708
Total
$ 12,521
$ 468
$ 12,988
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
58
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
a. Plan Descripon
The City contributes to the BRS, a cost-sharing, mulple-employer qualied dened benet governmental pension
plan. The System provides rerement, disability, and death benets to plan members and beneciaries of the following
government units:
(1) City of Boston
(2) Boston Planning & Development Agency
(3) Boston Housing Authority
(4) Boston Water and Sewer Commission
(5) Boston Public Health Commission
(6) Sheri of Suolk County (Rerees as of December 31, 2009, funded by the City)
The Commonwealth of Massachuses is a nonemployer that makes contribuons to BRS related to City of Boston
teachers.
The System is administered by a ve person Board of Rerement consisng of the City Auditor, who serves as a
member ex ocio, two members who are elected by the parcipants, in or rered from the service of the System, a
fourth member appointed by the Mayor, and a h member chosen by the other members. A complete set of nancial
statements for BRS for the scal year ended December 31, 2022 can be obtained through the BRS, Boston City Hall,
Room 816, Boston, MA 02201 or by accessing the website www.cityooston.gov/rerement/investment.asp.
Parcipaon in the System is mandatory for all permanent, full me, and certain part-me employees immediately
upon the commencement of employment. Parcipants who resign from employment, or are receiving workers’
compensaon benets, and who are not eligible to receive a rerement allowance are entled to request a refund
of their accumulated total deducons. In addion, those parcipants who resign voluntarily with less than ten years
of service are entled to receive 3% per year interest; all others receive interest which has accrued on their cumulave
deducons at the regular interest rate (0.1% at December 31, 2022).
Employees with ten or more years of service having aained age 55 are entled to pension benets; an earlier
rerement is allowed upon compleon of 20 years of service. The System provides for rerement allowance
benets up to a maximum of 80% of a parcipant’s highest consecuve three-year average annual rate of regular
compensaon (highest consecuve ve-year average for those members who join the System on or aer April 2,
2012). Benet payments are based upon a parcipant’s age, length of creditable service, regular compensaon, and
group classicaon. Parcipants become vested aer ten years of creditable service. Eecve July 1, 1998 Chapter
32 of the M.G.L. assigned the authority to establish and amend benet provisions and grant cost-of-living increases
for the plan to the Boston Rerement Board.
If a member in service dies due to causes unrelated to his or her job, the surviving spouse and/or surviving dependent
children may receive benets, either in a lump sum or in the form of an annuity based on the length of service,
contribuons and age. In the event there are no spouse and/or dependent children named, other beneciaries may
be entled to a lump-sum distribuon. Parcipants who become permanently and totally disabled from further duty
may be eligible to receive accidental or ordinary disability rerement benets.
Accidental disability is provided to members with incapacitaon resulng from a work-related injury or hazard.
Generally, annual pension benets are provided based on 72% of the annual rate of regular compensaon a member
earned while an acve employee on date of injury or average annual rate of regular compensaon. Ordinary disability is
available to any member whose permanent incapacitaon is not work-related and has aained ten years of creditable
service. Such benets are provided as if the member had aained the age of 55 (or actual age if over 55) based on
the amount of creditable service actually earned. Limits are placed on how much a disability employee can earn from
other sources while collecng a disability rerement pension.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
59
NOTES TO FINANCIAL STATEMENTS
The City is legally responsible for funding the employer poron of all pensions associated with certain rerees from
the Suolk County Sheri’s Department (SCSD), which became part of the Commonwealth of Massachuses in
2010, pursuant to a cooperaon agreement (the Agreement) dated June 28, 2011. According to the Agreement, all
employees of the SCSD, or its predecessor department, who rered prior to January 1, 2010 remained rerees of
the BRS. In addion, members of AFSCME Local 419 who rered between January 1, 2010 and October 31, 2010,
remained rerees of the BRS. Employer contribuons related to these rerees are the responsibility of the City under
the Agreement.
Special Funding Situaons
The City is party to a special funding situaon with the Commonwealth of Massachuses with respect to the City of
Boston Teachers. The Commonwealth is responsible for funding the employer poron of all teacher pensions in the
Commonwealth. All teachers in the Commonwealth are members of the Massachuses Teachers Rerement System,
with the excepon of teachers employed by the City, who are members of BRS. Although Boston Teachers are members
of BRS, the Commonwealth is the responsible contribung enty as described in Chapter 112 of the Massachuses
General Laws Acts of 2010.
The Commonwealth is also legally responsible for reimbursing BRS for a poron of the benets payments for cost of
living increases granted before July 1997 as described in Chapter 112 of the Massachuses General Laws Acts of 2010.
b. BRS Basis of Accounng
The System’s nancial statements are prepared using the accrual basis of accounng. Plan member contribuons
are recognized in the period in which the contribuons are due. Employer contribuons are recognized as addions
in the period when they become due pursuant to formal statutory obligaons. Benets and refunds are recognized
when due and payable in accordance with the terms of the plan.
Investments are reported at fair value. The following is a descripon of the valuaon techniques and inputs used for
each major class of assets and liabilies measured at fair value:
(1) Short-term, Equity and Fixed Income Investments - Securies traded on a naonal or internaonal exchange are
valued at the last reported sales price at current exchange rates. Certain xed income securies not traded on an
exchange are valued using a matrix pricing technique. Matrix pricing is used to value securies based on the securies’
relaonship to benchmark quoted prices.
(2) Pooled funds - the fair value of shares in managed investment pools is based on unit values reported by the funds.
(3) Alternave investments include hedge funds, holding through commingled limited partnerships of venture capital
funds, including equity interests in early, middle, and later stage companies, as well as debt and equity interests
in buyouts, acquisions, restructurings, mezzanine structures and special situaons, such as ligaon or spin-o
acvies. These investments are carried at the limited partnership interest or redempon value, the equivalent of net
asset value, which approximates fair value. Values assigned to such investments are based on available informaon
and do not necessarily represent amounts that may ulmately be realized in liquidaon. Liquidaon values depend
largely on future circumstances, including marketability, and frequently cannot reasonably be esmated unl at, or
near, the liquidaon date.
(4) Real estate investments consist of interests in commercial properes held by various partnerships and other
limited liability enes, some of which ulize debt nancing. Fair values of such holdings are reported based on the
net asset values of the enes, which are esmated using third-party appraisals and other informaon provided by
property managers.
c. Membership
Membership in the System consisted of the following at December 31, 2022:
Acve plan members 20,884
Rerees and beneciaries receiving benets 14,819
Inacve members entled to, but not yet receiving benets 1,303
Inacve members entled to a return of contribuons 12,821
Total membership 49,827
Total number of parcipang employers 6
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
60
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
d. Contribuons
Plan members are required to contribute to the System. Depending on their employment date, acve members must
contribute a range of 5% – 11% of their regular gross compensaon. Non-teacher members hired aer January 1,
1979 must contribute an addional 2% of regular compensaon in excess of $30,000. Parcipang employers are
required to pay into the System their share of the remaining System-wide actuarially determined contribuon, which
is apporoned among the employers based on an actuarial computaon. The contribuons of plan members and the
parcipang employers are governed by Chapter 32 of the M.G.L. For the year ended December 31, 2022, the System
was due $606.8 million from all employers and the Commonwealth and received $606.8 million in these contribuons.
For the year ended June 30, 2023, inclusive of contribuons related to SCSD, and exclusive of contribuons related to
the City’s teachers, the City’s required contribuon was $347.9 million. The actual contribuon was $347.9 million,
as well as a $23.5 million contribuon subsequent to the measurement date. For the year ended June 30, 2023, the
Commonwealth’s required and actual contribuon related to City Teachers was $196.8 million. The amount is reported
as intergovernmental revenue and rerement cost expenditures in the General Fund.
e. Legally Required Reserve Accounts
The balance in the System’s legally required reserves (on the statutory basis of accounng) at December 31, 2022 is
as follows (in thousands):
Amount
Purpose
Annuity savings fund
$ 2,112,390
Acve members’ contribuon balance
Annuity reserve fund
433,103
Rered members’ contribuon account
Military service fund
1,238
Members’ contribuon account while on military leave
Pension reserve fund
811,024
Amounts appropriated to fund future rerement benets
Pension fund
5,175,005
Remaining net posion
$ 8,532,760
All reserve accounts are funded at levels required by state statute.
f. City Pension Liabilies, Pension Expense, and Deferred Oulows of Resources Related to Pensions
At June 30, 2023, the City reported a liability of $1.76 billion for its proporonate share of the BRS net pension
liability measured as of December 31, 2022. This net pension liability includes amounts related to SCSD rerees and
reects a reducon for the special funding situaons with the Commonwealth. The amount recognized by the City
as its proporonate share of the net pension liability, the proporonate share related to the Commonwealth special
funding situaons, and the total poron of the net pension liability associated with the City measured at December
31, 2022 were as follows (in thousands):
City’s proporonate share of net pension liability
$ 1,764,569
Commonwealth’s proporonate share of net pension liability associated with
the City
2,692,277
Total
$ 4,456,846
To determine employers’ proporonate share of the net pension liability, separate calculaons of net pension liability
were performed for each of the Commonwealth special funding situaons, SCSD rerees, and the remaining non-
teacher group. At December 31, 2022, the City was allocated 100% of the net pension liability for SCSD rerees and
84.75% of the remaining non-teacher group based on its proporon of 2022 required employer contribuons related
to this group. The City’s proporon of the collecve BRS net pension liability at December 31, 2022 was 36.96%
compared to 28.28% at December 31, 2021.
For the year ended June 30, 2023, in the Government-wide nancial statements, the City recognized pension expense
of $620.2 million and revenue of $225.5 million related to the Commonwealth special funding situaons. At June 30,
2023, the City reported deferred oulows of resources related to pensions from the following sources (in thousands):
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
61
NOTES TO FINANCIAL STATEMENTS
Deferred
resources
Deferred
resources
Dierence between expected and actual experience $ -
$ 87,274
Net dierence between projected and actual investment
earnings 518,231
-
Changes in assumpons 198,548
-
Changes in employer proporon 22,918
1,189
Employer contribuons made
subsequent to the measurement
date
23,500
-
$ 763,197
$ 88,463
Amounts reported as deferred oulows of resources and deferred inows of resources at June 30, 2023 related to pensions will be recognized in
pension expense as follows (in thousands):
2024 $ 106,464
2025 184,975
2026 160,735
2027 212,620
2028
(13,560)
$ 651,234
For purposes of measuring the net pension liability, deferred oulows of resources and deferred inows of resources
related to pensions, and pension expense, informaon about the duciary net posion of the BRS and addions to/
deducons from the BRS’s duciary net posion have been determined on the same basis as they are reported for
the BRS.
g. Actuarial Assumpons
The total pension liability for the December 31, 2022 measurement date was determined by using an actuarial valuaon
as of January 1, 2022, with update procedures used to roll forward the total pension liability to December 31, 2022.
The measurement of the total pension liability at December 31, 2022 applied the following actuarial assumpons:
Inaon 3.25%
Salary Scale 7.5% to 4%, indexed by year of service, for teachers and 4.5% to 4% for non-teachers
Investment rate of return,including
inaon
6.90% for BRS excluding teachers and 7.00% for teachers, net of expenses, including inaon
Cost of living adjustments 5% of rst $15,000
Mortality Pub-2010 General Employee, Healthy Reree and Conngent Survivor Amount-Weighted Mortality
Tables set forward one year projected generaonally using Scale MP-2021 for Groups 1 and 2 and
to the Pub-2010 Safety Employee, Healthy Reree and Conngent Survivor Amount-Weighted
Mortality Tables projected generaonally using Scale MP-2021 for Group 4 and Pub-2010 Teacher
Employee, Healthy Reree and Conngent Survivor Headcount-Weighted Mortality Tables projected
generaonally using Scale MP-2021 for Boston Teachers
Pub-2010 General Healthy Reree Amount-Weighted Mortality Tables set forward one year
projected generaonally using Scale MP-2021 for Groups 1 and 2 and to the Pub-2010 Disabled
Reree Amount-Weighted Mortality Tables projected generaonally using Scale MP-2021
The long-term expected rate of return on pension plan investments was determined using a building-block method in
which best-esmate ranges of expected future real rates of return (expected returns, net of pension plan investment
expense and inaon) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighng the expected future real rates of return by the target asset allocaon percentage
and by adding expected inaon.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
62
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Best esmates of arithmec real rates of return for each major asset class included in the target asset allocaon as of
the actuarial valuaon date of December 31, 2022 for BRS, excluding Teachers, are summarized below:
Asset class
Expected
Real Rate of
Return
Domesc equity
24%
6.59%
Internaonal developed markets equity
17
6.87
Internaonal emerging markets equity
8
8.30
Core xed income
16
1.53
High yield xed income
5
3.54
Emerging market debt
4
3.54
Real estate
10
3.44
Timber
0
4.01
Hedge fund, GTAA, risk parity
5
3.06
Private equity
11
9.49
100%
h. Discount Rate
The discount rate used to measure the total pension liability was 6.90% for BRS excluding Teachers. The projecon
of cash ows used to determine the discount rate assumes that contribuons from plan members will be made at
the current contribuon rate and that contribuons of parcipang employers and the Commonwealth will be made
at rates equal to the actuarially determined contribuon rates. Based on those assumpons, the BRS’s duciary
net posion was projected to be available to make all projected future benet payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected
benet payments to determine the total pension liability.
i. Sensivity of the City’s Proporonate Share of the BRS Net Pension Liability
The following presents the City’s proporonate share of the BRS net pension liability calculated using the discount rate
of 6.90% for the BRS excluding Teachers, as well as what the City’s proporonate share of the BRS net pension liability
would be if the liability was calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-
point higher (7.90%) than the current rate for BRS excluding Teachers (in thousands):
1% Decrease
(5.90%)
Current Discount
Rate (6.90%)
1% Increase
(7.90%)
June 30, 2023 $ 2,605,463
$ 1,764,569
$ 1,058,094
j. Non-contributory rerees and beneciaries
In addion to appropriaon payments to cover current and future benet payments of City employees covered by the
BRS, the City funds noncontributory rerement benets for pensioners whose employment predates the BRS, certain
veterans who meet certain state law requirements, former employees rered under Massachuses Special Acts and
families receiving killed-in-the-line-of-duty benets. These rerees and beneciaries receive benets for their lifeme.
For the City’s Non-contributory and Special Legislaon Rerees, the City is providing such benets to 39 pensioners;
these benets are funded on a pay-as-you-go basis with annual benets of approximately $4.6 million. The City’s net
pension liability for the noncontributory rerees and beneciaries is $109.7 million, as of June 30, 2023.
The actuarial valuaon as of June 30, 2022, and rolled forward to June 30, 2023, was used to determine the City’s
pension liability and pension expense as of June 30, 2023 (in thousands):
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
63
NOTES TO FINANCIAL STATEMENTS
Total Pension liability $ 109,670
Plan duciary net posion
-
Plan net pension liability
$ 109,670
Plan duciary net posion as a percentage of the total pension liability
-%
Interest $ 2,834
Recognized poron of current year assumpon changes (2,126)
Change of benet terms 224
Dierences between expected and actual experience
31,029
Pension expense (income)
$ 31,961
The pension expense reects immediate recognion of the change in assumpons because the group of rerees and
beneciaries is assumed to be closed.
There are no deferred oulows/inows of resources related to these pensions. The discount rate used to determine
the total pension liability was 3.65% as of June 30, 2023 and 3.54% as of June 30, 2022, which was the high quality
tax-exempt general obligaon municipal bond rates (20-Bond GO Index) as published by The Bond Buyer for those
dates. The mortality assumpons are the same as used in the Boston Rerement System Actuarial Valuaon Report
as noted in footnote 11(g).
The salary COLA assumpons were updated based on past experience and future expectaons and to be consistent
with the assumpons used by the Boston Rerement System and the discount rate was changed to reect the change
in the 20-Bond GO Index.
k. Sensivity of the City’s Net Pension Liability
The following presents the net pension liability of the City’s Non-Contributory and Special Legislaon Rerees and
Beneciaries as of June 30, 2023, calculated using a discount rate of 3.65% as well as what the City’s Non-Contributory
and Special Legislaon Rerees and Beneciaries’ net pension liability would be if the liability was calculated using a
discount rate that is 1- percentage point lower (2.65%) or 1- percentage point higher (4.65%) than the current rate:
1% Decrease
(2.65%)
Current Discount
Rate (3.65%)
1% Increase
(4.65%)
June 30, 2022 $ 131,528
$ 109,670
$ 92,865
Plan Descripon
The City sponsors and parcipates in the Other Postemployment Benet Trust Plan (the Plan) an agent mul-employer
dened benet OPEB plan that provides healthcare and insurance benets, in accordance with state statute and City
ordinance, to parcipang rerees and their beneciaries. The Boston Public Health Commission, a discretely presented
component unit, also parcipates and contributes to the plan. City ordinance grants the authority to the City to establish
a healthcare benet trust fund for purposes of providing reree healthcare benets to employees of the City and the
Boston Public Health Commission.
The OPEB plan is administered by the City and issues a standalone audited nancial report that can be obtained from
www.boston.gov/departments/auding.
i. Benets Provided
Medical and prescripon drug benets are provided to all eligible rerees not enrolled in Medicare through a variety
of plans oered by Blue Cross Blue Shield of Massachuses, Harvard Pilgrim HealthCare, and Neighborhood Health
Plan. Medical and prescripon drug benets are provided to rerees enrolled in Medicare through supplemental and
Medicare Advantage plans oered by Blue Cross Blue Shield of Massachuses, Mass General Brigham Health Plan,
Harvard Pilgrim HealthCare, and Tus Health Plan.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
64
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Groups 1 and 2 rerees, including teachers, with at least 10 years or 20 years of creditable service are eligible at
age 55 or any age, respecvely. Group 4 rerees with at least 10 years or 20 years of creditable service are eligible
at age 55 or any age, respecvely. Rerees on accidental disability rerement are eligible at any age, while ordinary
disability requires 10 years of creditable service. The surviving spouse is eligible to receive pre and post rerement
death benets, as well as medical and prescripon drug coverage.
Employees Covered by the Benet Terms
As of June 30, 2021, the most recent actuarial valuaon date, the following employees meet the eligibility requirements
as put forth in Chapter 32B of M.G.L.:
City
PHC
Acve Plan members 15,440 965
Inacve members receiving benets
15,073
314
Total membership
30,513
1,279
a. Contribuons
Employer and employee contribuon rates are governed by the respecve collecve bargaining agreements. The
OPEB Plan is currently funded on a pay-as-you-go basis plus periodic advance funding contribuons as amounts are
available. The employers and plan members share the cost of benets. As of June 30, 2021, the valuaon date, the
plan members contribute 12.0% to 29.5% of the monthly premium cost, depending on the plan in which they are
enrolled. The City contributes the balance of the premium cost.
b. Basis of Accounng
The OPEB Trust Fund Financial Statements are prepared using the accrual basis of accounng. Employer contribuons
to the plan are recognized when made. Benets are recognized when due and payable in accordance with the terms
of each plan.
Investments are reported at fair value. Fair value of securies held directly are based on quotaons from naonal
securies exchanges.
c. Investment Policy
The provisions of Massachuses General Laws (M.G.L) c. 44 sec 54 allows investment in securies listed on the
Commonwealth’s approved securies lisng. The OPEB investment porolio is managed by the City Collector
Treasurer. The investment strategy is to reduce risk through the prudent diversicaon of the porolio across the
disnct allowable asset classes. The City Collector Treasurer aims to remain consistent in the approach and refrain
from dramacally shiing asset class allocaon over a short period.
d. Actuarial Methods and Assumpons
The City’s net OPEB liability was measured as of June 30, 2023, and the total OPEB liability used to calculate the net
OPEB liability was determined by an actuarial valuaon as of June 30, 2021 rolled forward to the measurement date
using the following actuarial assumpons during the measurement period:
○ Salary Increase. Non-teachers: 4.0 to 4.5%. Teachers: 4.0 to 7.5%
○ Inaon Increase - 3.25%
○ Actuarial Cost Method. Entry Age Normal - Level Percentage of Payroll.
○ Mortality
Groups 1 and 2 (Excluding Teachers) Pre-Rerement (Non-Teachers)
Pub-2010 General Employee Headcount-Weighted Mortality Table set forward one year projected generaonally
using scale MP-2021
Healthy (Non-Teachers): Pub-2010 General Healthy Reree Headcount-Weighted Mortality Table set forward one
year projected generaonally using scale MP-2021
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
65
NOTES TO FINANCIAL STATEMENTS
Disabled (Non-Teachers): Pub-2010 General Healthy Reree Headcount-Weighted Mortality Table set forward one
year projected generaonally using scale MP-2021
Surviving Spouse (Non-Teachers): Pub-2010 General Conngent Survivor Headcount-Weighted Mortality
Table set forward one year projected generaonally using scale MP-2021
Group 4
Pre-Rerement: Pub-2010 Safety Employee Headcount-Weighted Mortality Table projected generaonally using
scale MP-2021
Healthy: Pub-2010 Safety Healthy Reree Headcount-Weighted Mortality Table projected generaonally using
scale MP-2021
Disabled: Pub-2010 Disabled Reree Headcount-Weighted Mortality Table projected generaonally using scale
MP-2021
Surviving Spouse: Pub-2010 Safety Conngent Survivor Headcount-Weighted Mortality Table projected
generaonally with Scale MP-2021
Teachers
Pre-Rerement (Teachers): Pub-2010 Teacher Employee Headcount-Weighted Mortality Table projected
generaonally with Scale MP-2021
Healthy (Teachers): Pub-2010 Teacher Healthy Reree Headcount-Weighted Mortality Table projected
generaonally with Scale MP-2021
Disabled (Teachers): Pub-2010 Teacher Healthy Reree Headcount-Weighted Mortality Table projected
generaonally with Scale MP-2021
Surviving Spouse (Teachers): Pub-2010 Teacher Conngent Survivor Headcount-Weighted Mortality Table
projected generaonally with Scale MP-2021
○
Healthcare cost trend rates. Medical and Prescripon Drug: 7.0% decreasing by 0.25% for 10 years to an
ulmate rate of 4.5%. Medicare Part B Premium: 4.5%. Contribuons: Reree contribuons are expected to
increase with medical trends.
○ Discount Rate. The discount rate used to measure the total OPEB liability is 6.25% per annum.
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in
which best-esmate ranges of expected future real rates of return (expected returns, net of OPEB plan investment
expense and inaon) are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighng the expected future real rates of return by the target asset allocaon percentage
and by adding expected inaon. The target allocaon and best esmates of arithmec real rates of return for each
major asset class are summarized in the following table:
Asset Class
Expected Real
Rate of return
Domesc equity 40% 6.59%
Internaonal developed markets equity 13 6.87
Internaonal emerging markets equity 10 8.30
Core Fixed Income 25 1.53
High Yield Fixed Income 7 3.54
Real Estate
5
3.44
Total 100%
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
66
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
e. Net OPEB Liability
The components of the net OPEB liability for the City’s Plan as of June 30, 2023, presented below on the June 30, 2023
measurement date and the actuarial assumpons are outlined above (in thousands):
City
Total OPEB Liability $ 3,283,838
Plan Fiduciary Net Posion
(940,254)
Net OPEB Liability $ 2,343,584
Plan Fiduciary Net Posion as a percentage of the Total OPEB Liability 28.63%
a. Change in the Net OPEB Liability
Plan Fiduciary
Liability
Liability
Balances at June 30, 2022
$ 3,134,364
$ 824,166
$ 2,310,198
Changes for the year:
Service cost
85,997 - 85,997
Interest
197,334 - 197,334
Dierences between expected and actual experience
(5,890) - (5,890)
Contribuons - employer
- 167,968 (167,968)
Net investment income
- 76,087 (76,087)
Benet payments
(127,967) (127,967) -
Net changes
149,474
116,088
33,386
Balances at June 30, 2023
$ 3,283,838
$ 940,254
$ 2,343,584
Sensivity of the net OPEB liability to changes in the discount rate. The following presents the net pension liability
of the City, calculated using the discount rates disclosed as well as what the City’s net pension liability would be if it
were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current
rate as of June 30, 2023 (in thousands):
Current Discount
Rate
Net OPEB liability $ 2,796,633 $ 2,343,584 $ 1,970,328
Sensivity of the net OPEB liability to changes in the healthcare cost trend rates. The following presents the net OPEB
liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost
trend rates that are 1-percentage point lower or cost trend rates that are 1-percentage point higher than the current
healthcare cost trend rates (in thousands):
Current Trend
Rates
Net OPEB liability $ 1,876,311 $ 2,343,584 $ 2,930,561
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
67
NOTES TO FINANCIAL STATEMENTS
h. OPEB Expense and Deferred Oulows of Resources and Deferred Inows of Resources Related to OPEB
For the year ended June 30, 2023, the City recognized OPEB expense of $261 million.
At June 30, 2023, the City reported deferred oulows of resources and deferred inows of resources related to
pension amounts from the following sources (in thousands):
Deferred
Resources
of Resources
Change in assumpons $ 111,993
$ 151,765
Net dierence between projected and actual earnings 15,343 -
Dierences between expected and actual experience 110,207 5,350
Total
$ 237,543
$ 157,115
Amounts reported as deferred oulows of resources and deferred inows of resources related to OPEB will be
recognized in OPEB expense as follows (in thousands):
Fiscal Year
Amount
2024 $ 30,139
2025 25,954
2026 49,875
2027 (14,719)
2028 (9,980)
2029
(841)
Total
$ 80,428
Transfers
Transfers and their purposes during the year ended June 30, 2023 were as follows (in thousands):
General
Special
Capital
Other
Primary government:
Housing 2030
$ (35,213) $ 35,213 $ - $ -
American Rescue Plan
40,000
(40,000)
-
-
BERDO 2.0
(3,492)
3,492
-
-
Parcipatory Budgeng
(2,000)
2,000
-
-
Debt Service
(1,454)
-
-
1,454
Total $ (2,159) $ 705 $ - $ 1,454
The City had expenditures in excess of their budgeted amounts for the year ended June 30, 2023 in the following
categories (in thousands):
Police Department $ 26,225
Fire Department 3,718
Execuon of Courts
27,026
$ 56,969
The excess expenditures reported above are allowed under the budgetary laws governing the City.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
68
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
The components of fund balance for the City’s governmental funds as of June 30, 2023 are as follows (in thousands):
Fund Balances:
General
Special
Capital
Other
funds
Nonspendable
Nonspendable
$ -
$ -
$ -
$ 21,504
Subtotal
-
-
-
21,504
Restricted for:
Community Preservaon Fund -
26,873 -
-
General government -
- 58,390
61,768
Fire -
- 2,294
-
Public Works -
- 73,424
-
Property and Development -
9,625 53,407
46,648
Parks and recreaon -
- 36,056
-
Schools
-
-
53,858
746
Subtotal
-
36,498
277,429
109,162
Assigned to:
Property and development 39,690
- -
-
Catastrophic loss 40,240
- -
-
Housing iniave 36,565
- -
-
Debt service 7,162
- -
-
Employee Related Costs 117,179
- -
-
Subsequent year budget 40,000
- -
-
Subsequent year expenditure
139,192
334,258
-
-
Subtotal
420,028
334,258
-
-
Unassigned
1,186,928
-
-
-
Total fund balances
$ 1,606,956
$ 370,756
$ 277,429
$ 130,666
a. Encumbrances
The City has assigned $139.2 million in encumbrances for purchase orders, contracts, and judgments and claims in
the General Fund, $282.1 million in the Special Revenue Fund, $396.9 million in the Capital Projects Fund, and $1.9
million in Other Governmental Funds.
b. Infrastructure Investment Incenve Transacons
Infrastructure Investment Incenve transacons (I-Cubed) are governed by Chapter 293 of the Acts of 2006 (the Act).
Under the Act, the funding for the projects associated with these transacons is provided through proceeds of bonds
issued by the Massachuses Development Finance Agency (MDFA) and is to be used for approved public infrastructure
improvements undertaken by the developer. The debt service on these bonds will be paid by the Commonwealth
through State Infrastructure Development Assistance to the extent that New State Tax Revenues generated once
the project is operaonal oset the amounts paid to MDFA to cover the debt service. When this is not the case, the
parcipang municipality or developer generally will be responsible for the shorall depending on the transacon
agreement. The Act provides for the establishment of a Municipal Liquidity Reserve (MLR) from which the parcipang
municipality can draw to oset any required payments made to the Commonwealth. The MLR is generally funded by
the developer either through cash or a direct pay leer of credit.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
69
NOTES TO FINANCIAL STATEMENTS
During scal year 2015, the City executed two Infrastructure Development Assistance Agreements (IDAA) for I-Cubed
transacons. Under the rst IDAA, $32.4 million in bonds were issued by MDFA in September 2015. Also, an MLR of
$1.2 million was established at the me of the issuance of the bonds. This reserve is equal to twice the maximum
annual debt service payable in any scal year on the bonds issued under the indenture. The City is obligated for any
shoralls between debt service on the bonds and New State Tax Revenues. However, it has the right to assess the
developer or draw from the MLR for any payments on such obligaons. The City had no obligaon for any shoralls
at June 30, 2023. The City also recorded $11.2 million in donated capital assets in scal year 2016 for improvements
to City-owned infrastructure made by the developer. These assets have been recorded at acquision value which
has been dened as “the price that would be paid to acquire an asset with equivalent service potenal in an orderly
market transacon at the acquision date.”
Under the second IDAA, $10.0 million in bonds were issued by MDFA in scal year 2016. The City is obligated for any
shoralls between debt service on the bonds and New State Tax Revenues. However, it has the right to assess the
developer or draw from the MLR for one-third of any payments on such obligaons. The City had no obligaon for
any shoralls at June 30, 2023.
In connecon with this second I-Cubed transacon, the City has a leasehold interest in a poron of the parking garage,
which represents the public infrastructure improvements under the transacon, created under a master lease and
its assignments and a sublease. With the execuon of the master lease and sublease agreements, along with the
assignment agreements transferring the interests of the owner of the parking garage to the City through the BPDA,
the City essenally becomes the lessee on the master lease and the sub-landlord on the sublease. This results in the
City having no responsibility for the operaon of the parking garage and having the right to collect from the sub-
lessee Secon 121A PILOT payments from 2015 through 2036 and then base rent from 2036 through 2055, both of
which are largely based on a percentage of gross revenues of the parking garage. The City has no obligaon for any
payments as lessee under the master lease.
During scal year 2019, the City executed an Infrastructure Development Assistance Agreements (IDAA) for an I-Cubed
transacon. Under the IDAA, $30.0 million in bonds were issued by MDFA in June 2019. The City is obligated for any
shoralls between debt service on the bonds and New State Tax Revenues. However, it has the right to assess the
developer or draw from the leer of credit for any payments on such obligaons. The City had no obligaon for any
shoralls at June 30, 2023.
Eecve July 1, 1996, the City’s Department of Health and Hospitals and Trustees of Health and Hospitals were abolished.
Substanally all their assets and liabilies, including tle to the City’s two hospitals, BCH and Boston Specialty and
Rehabilitaon Hospital (BSRH), were transferred to and assumed by BPHC.
Also eecve July 1, 1996, the operaons of BCH and BSRH were consolidated with the operaons of the Boston University
Medical Center under the licensure and control of the BMC.
The BPHC receives the majority of its funding from federal and state grants, and a City appropriaon. During scal year
2023, the City appropriated $120.8 million to the BPHC. As described below, the BPHC uses the appropriaon to pay debt
service on certain general obligaon bonds, for administrave purposes and to support the various public health programs
run by the BPHC. The City has budgeted $130.3 million for the BPHC for scal year 2024.
Due from BPHC/BMC
The BPHC is also responsible for reimbursing the City for health insurance, equipment lease payments, workers’
compensaon, and other miscellaneous expenses paid for by the City.
The Risk Management Program focuses on a planned strategy of self-insurance, supported by strong prevenon and cost
reducon eorts, nancial reserves and catastrophic insurance. The City is self-insured in most areas of risk including
general liability, property and casualty, workers’ compensaon, certain employee health care costs and unemployment
compensaon.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
70
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
The City’s legal liabilies are capped per M.G.L. Chapter 258, and Corporaon Counsel defends the City in any lawsuits
that arise from the normal course of operaons. For workers’ compensaon, the City is exempt from state insurance
requirements per M.G.L. Chapter 152 Secon 25B. The City’s Workers’ Compensaon Division as well as the Police and Fire
Departments manage employee injury claims internally. The City budgets for and funds legal claims and employee injury
costs through the General Fund, charging specic departments for their share of costs in order to promote awareness
and prevenon eorts.
The City provides health insurance coverage for employees and rerees through a variety of self-insured plans. The City
budgets for and funds the premium costs for all plans through the General Fund. Self-insured plans are nancially managed
through the Internal Service Fund established in compliance with M.G.L. Chapter 32B, Secon 3A. The guiding policy for the
City of Boston Health Claims Trust Fund states that accounng for the fund will be in accordance with generally accepted
accounng principles, and will ensure that all contribuons and actual costs are shared between employers and their
subscribers according to predetermined raos.
For unexpected large losses, the City maintains a catastrophic risk reserve, which has an available balance of $40.2 million
at the end of scal 2023. To further protect the City’s assets and nances from adverse loss, commercial insurance is
purchased strategically for certain exposures. A catastrophic property insurance policy provides $100.0 million for all
risk protecon aer a $10.0 million deducble. Boiler and machinery losses are insured up to $50.0 million per incident,
aer a $50 thousand deducble. A Fine Arts Policy provides $150 million for risk protecon aer a $1,000 deducble of
ne arts and collecble objects including, but not limited to painngs, etchings, drawings, photographs, rare books and
manuscripts, anques, sculptures, memorabilia, natural history objects or historical arfacts, which are owned by the City
or Library Trustees or on loan for which the City or Library Trustees have been instructed to insure.
The City has not had any insurance claim paid in the last 4 years and has never had a claim or selement that exceeded
any of its insurance policy limits. The catastrophic risk reserve has grown over the years when money remains from the
annual budgeted amount for Risk Retenon Reserves, which is intended to pay for insurance premiums, broker fees and
addional insurance related costs.
The City has established a liability based on historical trends of previous years and aorneys’ esmates of pending maers
and lawsuits in which the City is involved. Changes in the self-insurance liability for the scal years ended June 30, 2023
and 2022 are as follows (in thousands):
2023
2022
Health and life claims, beginning of year $ 30,371 $ 28,329
Incurred claims 296,763 318,964
Payments of claims aributable to events of both the
current and prior scal years:
Health and life
(300,447)
(316,922)
Health and life claims, end of year $ 26,687 $ 30,371
2023
2022
Judgments and claims, beginning of year
$ 249,122
$ 242,893
Incurred claims
114,935
101,551
Payments of claims aributable to events of both the
current and prior scal years:
Workers’ compensaon
(50,528)
(57,391)
Tax abatement liability
(12,251)
(7,692)
Court judgments
(27,031)
(30,239)
Judgments and claims, end of year
$ 274,247
$ 249,122
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
71
NOTES TO FINANCIAL STATEMENTS
The liabilies above have not been discounted to their present value. Incurred claims represent the total of a provision for
events of the current scal year and any change in the provision for events of the prior scal years. There are numerous
pending maers and lawsuits in which the City is involved. The City aorneys’ esmate that the potenal claims against
the City not recorded in the accompanying basic nancial statements resulng from such ligaon would not materially
aect the basic nancial statements.
As described in note 1, the DSRC is a Qualied Acve Low-Income Community Business, and is the owner and developer of
the Dudley Municipal Center property. FBDC is the leverage lender of the Dudley Municipal Center property. As the project
sponsor during scal year 2013, the City authorized and issued $28.9 million in general obligaon bonds and transferred
proceeds to FBDC. FBDC, ulizing these bond proceeds, made loans totaling $29.3 million to two investment funds. The
investment funds made these proceeds and funds from addional investments available to eight leverage lenders that
made loans in the aggregate amount of $40.8 million to DSRC to nance the Dudley Municipal Center project. With the
compleon of Dudley Municipal Center project, FBDC is master tenant and leases the project from DSRC.
Based on the ending compliance period of the New Market Tax Credit, the Board of Directors and the City of Boston came
to an agreement with all involved nancial instuons to unwind the leveraged loans in November of 2019. The leveraged
loans were paid via assignment of the notes and cancellaon of the indebtedness.
This prompted amendments to the Master Lease and City’s sublease agreements, essenally canceling all future cash
ows related to the inial leases. The amendments occurred subsequent yet retroacve to year ended June 30, 2021.
These acvies resulted in net revenues of $11.5 million for the wind down of debt and expenses of $5.3 million for the
lease amendments. As the City sublease was amended as a result of the wind down, there was no rental income under
the City sublease.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
72
FINANCIAL
SECTION
NOTES TO FINANCIAL STATEMENTS
Discretely Presented Component Units
The following presents condensed nancial statements for each of the discretely presented component units:
June 30, 2023
(In thousands)
TPL
EDIC
Total
Assets:
Current assets:
Cash and investments $ 62,297
$ 64,291
$ 6,781
$ 65,198
$ 198,567
Cash and investments held by trustee -
- 24,225 - 24,225
Receivables, net:
Leases receivable, current - 5,585 171 4,670 10,426
Other 37,757 13,814 2,418 15,821 69,810
Other assets 3,229 256 1,035 851 5,371
Due from primary government 3,178 - - - 3,178
Total current assets 106,461 83,946 34,630 86,540 311,577
Noncurrent assets:
Cash and investments held by trustee - - 65,526 704 66,230
Notes and other receivables:
Notes receivable 47,802 88,512 466 - 136,780
Lease receivable, net 39,670 183,596 275 1,527,933 1,751,474
Interest receivable - - - 33,398 33,398
Accrued interest receivable on leases - 2,344 - - 2,344
Disposion receivable - 30,692 - 1,784 32,476
OPEB Asset - 6,052 - - 6,052
Other - - - - -
Capital assets, net:
Nondepreciable 12,948 13,137 - 11,813 37,898
Depreciable assets, net 12,263
13,010
588
33,544
59,405
Right of use lease assets, net 1,406 5,727 1,728 1,305 10,166
Subscripon IT assets, net -
-
-
272
272
Total noncurrent assets 114,089 343,070 68,583 1,610,753 2,136,495
Total assets 220,550 427,016 103,213 1,697,293 2,448,072
Deferred oulows of resources:
Deferred amount for pension costs 57,322 7,253 - - 64,575
Deferred amount for other postemployment benets costs 5,733 1,177 - - 6,910
63,055 8,430 71,485
Liabilies:
Current liabilies:
Warrants and accounts payable 21,968 9,587 1,309 8,802 41,666
Accrued liabilies:
Other 623 948 542 649 2,762
Current poron of long-term debt 2,367 - - - 2,367
Compensated abscences - - - 113 113
Due to primary government 1,050 2,618 791 - 4,459
Polluon remediaon - - - - -
Subscripon agreement liability - - 567 174 741
Unearned revenue 5,437 1,804 - 296 7,537
Leases obligaons/payable 529 - - 233 762
31,974
14,957
3,209
10,267
60,407
Noncurrent liabilies:
Bonds, notes and leases due
in more than one year 3,378 7,511 - - 10,889
Other noncurrent liabilies 1,725 136,796 - 4,339 142,860
Other postemployment benets 80,780 - - - 80,780
Subscripon agreement liability LT - - 1,127 45 1,172
Unearned revenue 47,434 30,692 - - 78,126
Net pension liability 138,512 16,729 - - 155,241
271,829
191,728
1,127
4,384
469,068
303,803
206,685
4,336
14,651
529,475
Deferred inows of resources:
Deferred amount for pension costs 13,685 2,852 - - 16,537
Deferred amount for other postemployment benets costs 42,643 4,188 - - 46,831
Deferred amount for leases 40,215
184,543
402
1,480,921
1,706,081
96,543
191,583
402
1,480,921
1,769,449
Net posion:
Net investment in capital assets 20,343 23,267 622 46,934 91,166
Restricted - - 84,779 704 85,483
Unrestricted (137,084) 13,911 13,074 154,083 43,984
$ (116,741)
$ 37,178
$ 98,475
$ 201,721
$ 220,633
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
73
NOTES TO FINANCIAL STATEMENTS
Year ended June 30, 2023
(in thousands)
TPL
EDIC
Total
Expenses
$ 229,958
$ 31,366
$ 20,351
$ 56,544
$ 338,219
Program revenues:
Charges for services 45,066 25,566 2,883 44,061 117,576
Operang grants and
contribuons 117,450 - 16,264 24,229 157,943
Capital grants and contribuons
-
-
-
923
923
Total program
revenues
162,516
25,566
19,147
69,213
276,442
(67,442)
(5,800)
(1,204)
12,669
(61,777)
General revenues:
Investment income 2,304 3,581 6,055 1,119 13,059
Investment income from leases 1,441 372 - 30,175 31,988
Sale of property 118 3,345 - - 3,463
City appropriaon 120,025 - - - 120,025
Miscellaneous income
913
71
1,947
-
2,931
124,801
7,369
8,002
31,294
171,466
57,359 1,569 6,798 43,963 109,689
(174,100)
35,609
91,677
157,758
110,944
$ (116,741)
$ 37,178
$ 98,475
$ 201,721
$ 220,633
In January 2024, the City issued $250,000,000 through a private placement with TD Bank. Interest on the private placement
will be payable semiannually on each June 1 and December 1, commencing December 1, 2024, unl maturity or earlier
redempon.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
74
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditors’ report
(Unaudited)
(Amounts in thousands)
2023
2022
2021
2020
2019
2018
2017
Actuarially determined contribuon $ 213,343 $ 203,857 $ 188,972 $ 182,364 $ 199,400 $ 190,991
$ 167,787
Contribuons in relaon to the actuarially
determined contribuon
167,968
172,149
170,560
164,503
176,018
159,966
157,464
Contribuon surplus (deciency)
$ (45,375)
$ (31,708)
$ (18,412)
$ (17,861)
$ (23,382)
$ (31,025)
$ (10,323)
Covered payroll
$ 2,033,622
$ 1,862,730
$ 1,811,408
$ 1,776,886
$ 1,696,838
$ 1,611,911
$ 1,582,695
Contribuons as a percentage of covered
payroll 8.26% 9.24% 9.42% 9.26% 10.37% 9.92%
9.95%
Note: Informaon provided for Required Supplementary Informaon will be provided for 10 years as
it becomes available.
Valuaon date:
Actuarially determined contribuon for scal year ending June 30, 2023 was determined
with the June 30, 2021 actuarial valuaon. This valuaon has been rolled forward to the
measurement date of June 30, 2023
Methods and assumpons used to determine contribuon rates:
Actuarial cost method:
Entry Age
Normal
Amorzaon method:
Payments increasing at
3.25% per year
Remaining amorzaon:
23 years as of July 1, 2022
Asset valuaon method:
Fair Value
Inaon:
3.25%
Health care trend rates:
Non-Medicare costs: 7% inial, decreasing
0.25% annually to an ulmate level of 4.5%
Medicare costs: 7% inial, decreasing 0.25%
annually to an ulmate level of 4.5%
Medicare Part B premiums: 4.5%
Salary increases:
Non-teachers: 4% to 4.5%; Teachers: 4% to
7.5%
Investment return:
6.25%
Mortality:
Pub-2010 generaonal table using Scale
MP-2021 for non-teachers and teachers
applied on a gender-specic basis.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
75
REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditors’ report
June 30, 2023
(Amounts in thousands)
2023
2022
2021
2020
2019
2018
2017
Service Cost
$ 85,997
$ 79,852
$ 77,223
$ 72,030 $ 69,659 $ 67,365 $ 65,146
Interest
197,334
192,082
183,843
203,807 194,459 185,615 177,157
Changes of benet terms
-
-
-
(498,655) - - -
Dierences between expected and
actual experience
(5,890)
148,512
(528)
4,981 6,624 700 (1,717)
Changes of assumpons
-
(212,471)
-
261,316 - - -
Benet payments, including refunds of
employee contribuons
(127,967)
(132,149)
(130,560)
(124,503)
(136,018)
(119,966)
(117,464)
Net Change in total OPEB liability
149,474
75,826
129,978
(81,024) 134,724 133,714 123,122
Total OPEB liability - beginning
3,134,364
3,058,538
2,928,560
3,009,584
2,874,860
2,741,146
2,618,024
Total OPEB liability - ending
3,283,838
3,134,364
3,058,538
2,928,560
3,009,584
2,874,860
2,741,146
Contribuons - employers
167,968
172,149
170,560
164,503 176,018 159,966 157,464
Net investment income, net
76,087
(77,643)
166,540
21,035 33,624 27,656 47,156
Benet payments, including refunds of
employee contribuons
(127,967)
(132,149)
(130,560)
(124,503) (136,018) (119,966) (117,464)
Administrave expenses
-
(5)
(5)
(5)
(4)
(12)
(5)
Net change in plan duciary net
posion
116,088 (37,648) 206,535 61,030 73,620 67,644 87,151
Plan duciary net posion - beginning
824,166
861,814
655,279
594,249
520,629
452,986
365,835
Plan duciary net posion - ending
940,254
824,166
861,814
655,279
594,249
520,630
452,986
Net OPEB liability
$ 2,343,584
$ 2,310,198
$ 2,196,724
$ 2,273,281
$ 2,415,335
$ 2,354,230
$ 2,288,160
Plan duciary net posion as a
percentage of the total
OPEB Liability
28.63%
26.29%
28.19%
22.38% 19.75% 18.11% 16.53%
Net OPEB liability as a percentage of
the total covered payroll
115.24%
124.02%
121.27%
127.94% 142.34% 146.05% 144.57%
Covered payroll
2,033,622
1,862,730
1,811,408
1,776,886 1,696,838 1,611,911 1,582,695
Notes: Informaon provided for Required
Supplementary Informaon will be provided
for 10 years as it becomes available.
Changes as of June 30, 2023: (None)
Changes as of June 30, 2023: (None)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
76
FINANCIAL
SECTION
REQUIRED SUPPLEMENTARY INFORMATION
See accompanying independent auditors’ report
(Amounts in millions)
2023
2022
2021
2020
2018
2017
2016
2015
City’s proporon of the net pension liability 36.96% 28.83% 32.80% 35.96% 32.04% 35.66% 36.78% 36.82%
City’s proporonate share of the net pension
liability $ 1,765
$ 998
$ 1,303 $ 1,639
$ 1,288
$ 1,484
$ 1,622
$ 1,417
Commonwealth’s proporonate share of net
pension liability associated with the City
2,692
2,277
2,429
2,587
2,451
2,345
2,426
2,092
Total
$ 4,457
$ 3,275
$ 3,732
$ 4,226
$ 3,739
$ 3,829
$ 4,048
$ 3,509
City’s covered payroll (for the period ended on
the measurement date December 31) $ 1,864
$ 1,776
$ 1,720 $ 1,661
$ 1,547
$ 1,475
$ 1,475
$ 1,423
City’s proporonate share of the net pension
liability as a percentage of covered payroll 94.69% 56.19% 75.76% 98.68% 83.26% 100.61% 109.97% 99.58%
BRS duciary net posion as a percentage of
the total pension liability 64.12% 73.26% 67.64% 61.91% 62.73% 58.44% 55.76% 59.59%
Note: Schedule is intended to show informaon for ten years. Historical informaon prior to the
implementaon of GASB Statement No. 68 is not required if the informaon is not available.
Addional years will be displayed as they become available.
(Amounts in millions)
2023
2022
2021
2020
2019
2018
2017
2016
2015
Actuarially determined contribuon $ 348
$ 313
$ 284 $ 257 $ 234 $ 193 $ 193 $ 179 $ 165
Contribuons in relaon to the actuarially
determined contribuon
348
313
284
257
234
193
205
179
165
Contribuon surplus (deciency)
$ -
$ -
$ -
$ -
$ -
$ -
$ 12
$ -
$ -
Covered payroll (for the scal
year ended June 30) $ 1,993
$ 1,826
$ 1,777 $ 1,741 $ 1,609 $ 1,467 $ 1,467 $ 1,467 $ 1,442
Contribuons as a percentage of covered payroll 17.46% 17.14% 15.98% 14.76% 14.54% 13.16% 13.16% 12.20% 11.44%
Note: Schedule is intended to show informaon for ten years. Historical informaon prior to the
implementaon of GASB Statement No. 68 is not required if the informaon is not available.
Addional years will be displayed as they become available.
(This page intentionally left blank)
GENERAL
FUND
The General Fund is the operating fund of the City. It is used to
except those required to be accounted for in other funds.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
79
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
June 30, 2023
(Amounts in thousands)
2023
Cash and investments $ 1,928,610
Receivables:
Property taxes 24,986
Motor vehicle / boat excise 33,660
Intergovernmental 9,595
Departmental and other 29,243
Tax tle and possession
72,404
Total Receivables
169,888
Allowance:
Motor vehicle / boat excise (25,196)
Tax tle and possession
(72,405)
Total Allowance
(97,601)
Net receivable
72,287
Due from other funds 927
Due from component units
3,510
Total assets
$ 2,005,334
Warrants and accounts payable $ 57,115
Accrued liabilies:
Payroll and related costs 268,041
Deposits and other 30,503
Due to other funds 796
Due to component units
3,178
$ 359,633
Revenue not considered available and leases
38,745
Assigned 420,028
Unassigned
1,186,928
Total fund balance
1,606,956
$ 2,005,334
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
80
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Real and personal property taxes $ 2,988,917
Excises 298,077
Payments in lieu of taxes 103,315
Fines 60,429
Investment income 88,404
Licenses and permits 102,244
Departmental and other 109,001
Intergovernmental
690,938
4,441,325
Current:
General government 154,252
Human services 40,938
Public safety 809,042
Public works 125,102
Property and development 41,491
Parks and recreaon 33,905
Library 44,041
Schools 1,357,011
Public health programs 126,875
Judgments and claims 27,031
Rerement costs 565,815
Other employee benets 259,465
State and district assessments
354,900
Total current expenditures
3,939,868
Capital outlays 18,601
Debt service
200,723
Total Expenditures
4,159,192
282,133
Transfers in 40,000
Transfers out (42,159)
Leases and subscripon IT arrangements issued
11,714
9,555
291,688
1,315,268
$ 1,606,956
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
81
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Actual
Variance
PROPERTY TAXES
Real Estate Taxes
$ 2,754,288 $ 2,754,288 $ 2,757,266 $ 2,978
Real and Personal Property Taxes
209,011
209,011
211,807
2,796
2,963,299
2,963,299
2,969,073
5,774
MOTOR VEHICLE EXCISE
Motor Vehicle Excise - Current
34,000 34,000 36,555 2,555
Motor Vehicle Excise - Prior Years
19,575 19,575 23,280 3,705
Boat Excise - Current and Prior Years
-
-
29
29
53,575
53,575
59,864
6,289
OTHER EXCISE TAXES
Hotel / Motel Room Excise
54,000 54,000 129,271 75,271
Aircra Fuel Excise
19,000 19,000 49,639 30,639
Condominium Conversion Excise
550 550 917 367
Short-Term Rental
400 400 649 249
Meals Tax Excise
22,000 22,000 37,670 15,670
Marijuana Local Opon Sales T
1,000 1,000 2,198 1,198
Urban Redevelopment Ch 121A
10,000 10,000 16,803 6,803
Vehicle Rental Surcharge
750
750
1,125
375
107,700
107,700
238,272
130,572
State Owned Lands
620 620 612 (8)
Exempon - Elderly
901 901 1,104 203
Veterans Services - Local Aid
1,228 1,228 966 (262)
Unresrcted General Government Aid
219,467 219,467 219,467 -
Local Share of Racing Taxes
553 553 358 (195)
Charter School Reimbursement
58,680 58,680 44,225 (14,455)
Chapter 70 Educaon Aid
227,237
227,237
227,237
-
508,686
508,686
493,969
(14,717)
(Connued)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
82
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Final
Actual
Variance
Penales & Interest - Property Taxes
$ 2,300 $ 2,300 $ 3,584 $ 1,284
Penales & Interest - Motor Vehicle
2,200 2,200 3,283 1,083
Penales & Interest - Tax Title
4,400 4,400 5,103 703
Other Departmental Fees & Charges
1,800 1,800 2,724 924
Registry Division Fees
1,600 1,600 1,708 108
Liens
600 600 484 (116)
Other Departmental
2,800 2,800 3,722 922
City Clerk Fees
500 500 599 99
Muni Medicaid Reimbursement
6,000 6,000 5,436 (564)
Medicaid Part D
1,100 1,100 264 (836)
Police Services
600 600 609 9
Fire Services
6,000 6,000 7,575 1,575
Parking Facilies
2,500 2,500 5,183 2,683
Street Occupancy
10,000 10,000 25,695 15,695
Street and Sidewalk Permits
600 600 254 (346)
Property Mgmt - Building Rents
700 700 1,349 649
St Furniture Program Fixed Fees
1,500 1,500 1,500 -
St Furniture Program Adm Fees
900 900 1,195 295
DoIT/PWD Small Cell Revenue
600 600 1,412 812
DOIT E-Rate
1,600 1,600 1,709 109
Tuion and Transportaon - Schools
1,900 1,900 2,634 734
McKinney-Vento reimbursement
1,000 1,000 - (1,000)
Library Fees
5 5 - (5)
Cobra / Self-pay
180 180 176 (4)
Armave Recovery Unit
200 200 169 (31)
Fringe-Rerement
5,768 5,768 8,958 3,190
Pensions and Annuies
6,550 6,550 8,082 1,532
Indirect Costs Reimbursement
500 500 721 221
3rd Party Fringe Reimbursement
200 200 150 (50)
Third-Party Payments
1,460 1,460 1,824 364
Prior Year Reimbursements
500 500 363 (137)
Police Detail Administraon Fee
3,000 3,000 3,108 108
Administrave Fee 3rd Party Payments
350
350
567
217
69,913
69,913
100,140
30,227
(connued)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
83
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
2023
Final
Actual
Variance
FINES
Parking Fines
$ 50,820 $ 50,820 $ 56,079 $ 5,259
60 Cents Surcharge
400 400 708 308
Boots & Tows Fees
1,100 1,100 1,703 603
Court Fines
5 5 10 5
Moving Violaon Fines - Court
700 700 860 160
Fire Safety Fines
40 40 24 (16)
Code Enforcement
1,100
1,100
1,246
146
54,165
54,165
60,630
6,465
PAYMENTS IN LIEU OF TAXES
Massport 20,949 20,949 21,978 1,029
Miscellaneous PILOT’s 30,150 30,150 34,399 4,249
Miscellaneous Ch 121B Secon 16 6,000 6,000 11,778 5,778
Miscellaneous Ch 121A Secon 6A 9,000 9,000 33,051 24,051
EDIC Chapter 121C PILOT
400
400
1,092
692
66,499
66,499
102,298
35,799
INVESTMENT INCOME
Interest on Investments
3,000
3,000
88,335
85,335
3,000
3,000
88,335
85,335
LICENSES AND PERMITS
Building Structures and Permits
48,000 48,000 80,298 32,298
Weights and Measures
260 260 250 (10)
Street and Curb Permits
2,800 2,800 1,883 (917)
Pre-rental Inspecons
1,500 1,500 2,483 983
Other Departmental Licenses & Permits
400 400 1,025 625
Health Inspecons
1,540 1,540 1,694 154
Alcoholic Beverages and LIcenses
4,400 4,400 4,570 170
Marijuana License
25 25 57 32
Entertainment Licenses
1,600 1,600 1,883 283
Police Firearm Permits
40 40 121 81
Other Business Licenses and Permits
150 150 226 76
Cable Television
4,000 4,000 4,665 665
Dog Licenses
220
220
237
17
64,935
64,935
99,392
34,457
MISCELLANEOUS
Air Rights
267
267
267
-
267
267
267
Appropriated Cemetery Trustee
950 950 - (950)
Appropriated Parking Meter Receipts
30,000 30,000 - (30,000)
Appropriated Funds Balance
40,000 40,000 - (40,000)
American Rescue Plan
40,000
40,000
40,000
-
110,950
110,950
40,000
(70,950)
$ 4,002,989 $ 4,002,989 $ 4,252,240 $ 249,251
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
84
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Final
Actual
Variance
GENERAL GOVERNMENT
Costs of Issuance - RANS $ 500 $ 157 $ 157 $ -
Annual Audit Costs 750 1,593 1,593 -
Mayor’s Oce 6,148 7,595 7,595 -
City Council 7,689 7,079 7,079 -
Oce of New Bostonians 3,109 2,954 2,954 -
Consumer Aairs and Licensing 1,805 1,784 1,784 -
Elecon Department - Elecon Division 6,089 5,136 5,136 -
Elecon Department - Lisng Board 726 601 601 -
Auding Department 3,255 3,449 3,449 -
Assessing Department 8,223 7,466 7,466 -
Treasury Department - Collecng Division 3,620 3,581 3,581 -
Treasury Department - Treasury Division 2,090 1,982 1,982 -
Oce of Budget Management 3,355 2,751 2,751 -
Human Resources 6,564 5,647 5,647 -
Purchasing Division 2,083 2,470 2,470 -
Oce of Administraon & Finance 2,649 1,588 1,588 -
Oce of People Operaons 496 470 470 -
Oce of Labor Relaons 1,961 1,453 1,453 -
Department of Innovaon & Technology 41,945 47,466 47,466 -
Intergovernmental Relaons 1,550 1,103 1,103 -
Law Department 9,773 9,746 9,746 -
Labor Compliance & Worker Prot 3,479 1,942 1,942
Risk Retenon Reserved 2,500 3,881 3,881 -
Housing Trust Fund 618 547 547 -
City Clerk 1,779 1,458 1,458 -
Registry Division 1,182 1,196 1,196 -
Finance Commission 321 312 312 -
Tregor Reserve Fund 2,069 4,318 4,318 -
Oce of Equity 1,371 881 881 -
Oce of Civil Rights 533 405 405 -
Commission for Persons with Disabilies 688 633 633 -
Oce of Resiliency & Racial Equity 1,127 896 896 -
Language & Community Access 1,849 1,748 1,748 -
Police Accountability & Transparancy 1,489 1,134 1,134 -
Neighborhood Services 4,659 4,261 4,261 -
Arts & Cultural Develop 4,078 3,523 3,523 -
Arts, Tourism & Special Events 1,582 1,093 1,093 -
Women’s Commission 476 355 355 -
Parcipatory Budgeng 2,000 2,000 2,000 -
Black Male Advancement 1,804 1,397 1,397 -
Oce of Food Jusce 1,358 1,003 1,003 -
Oce of Historic Preservao 1,296 1,253 1,253 -
LGBTQ+ Advancement 445 477 477 -
Reserve for Collecve Bargaining
42,688
40,000
40,000
-
193,771
190,784
190,784
HUMAN SERVICES
Boston Centers for Youth & Families 29,795 26,575 26,575 -
Elderly Commission 6,002 6,520 6,520 -
Oce of Health & Human Service 5,786 5,535 5,535 -
Human Right Commission 631 275 275 -
Veterans Services Department
4,697
2,463
2,463
-
46,911
41,368
41,368
(connued)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
85
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Final
Actual
Variance
Police Department
$ 395,095
$ 395,907
$ 422,132 $ (26,225)
Fire Department
276,903
276,903
280,621 (3,718)
Mayor’s Oce - Emergency Preparedness
1,288
1,192
1,192 -
Transportaon - Trac Division
34,144
35,443
35,443 -
Transportaon - Parking Clerk
7,950
7,338
7,338 -
Inspecon Services Department
22,886
21,826
21,826 -
Youth Fund
17,715
17,165
17,165
-
755,981
755,774
785,717
(29,943)
Public Works Department 108,556 108,364 108,364 -
Central Maintenance Facility
3,324 3,532 3,532
-
Snow & Winter Management
23,531
22,993
22,993
-
135,411
134,889
134,889
PROPERTY AND DEVELOPMENT
Property Management
34,554 36,000 36,000
-
Neighborhood Development
44,284
43,719
43,719
-
78,838
79,719
79,719
Parks and Recreaon Department
28,252 32,520 32,520
-
Environment Department
3,807 6,641 6,641
-
Cemetery Division
2,994
2,994
2,870
124
35,053
42,155
42,031
124
Library Department
43,274
44,106
43,962
144
43,274
44,106
43,962
144
SCHOOLS
Boston Public Schools
1,374,030
1,379,457
1,379,456
1
1,374,030
1,379,457
1,379,456
1
Public Health Commission
117,884
120,802
120,802
-
117,884
120,802
120,802
(connued)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
86
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
GENERAL FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Final
Actual
Variance
JUDGMENTS AND CLAIMS
Execuon of Courts
$ 5,000
$ 5,000
$ 32,026
$ (27,026)
5,000
5,000
32,026
(27,026)
Medicare Payments 12,636 12,193 12,193 -
Health Benets & Insurance 1,069
1,052
1,052 -
Health Insurance 217,310 212,934 212,934 -
Unemployment Compensaon 350 207 207 -
Workers’ Compensaon Fund 2,000 1,916 1,916 -
OPEB Stabilizaon Fund
40,000
40,000
40,000
-
273,365
268,302
268,302
PENSION COSTS
Boston Rerement System 353,856 381,919 381,919 -
Pensions and Annuies - City
3,900
5,572
5,572
-
357,756
387,491
387,491
Redempon of City Loans 145,484 136,457 136,457 -
City Debt and Interest Payments 67,608 59,421 59,421 -
Temporary Notes
3,000
- - -
MWPAT Principal 688 688 688 -
MWPAT Interest 222 222 222 -
Debt Service SInking Funds
1,455
1,455
1,455
-
218,457
198,243
198,243
Health Insurance/Rerement 1 1 1 -
Parking Surcharge 2,195 1,986 1,986 -
Mosquito Control Projects 291 291 291 -
Special Educaon Chapter 766 597 655 655 -
Metropolitan Air Polluon Center 304 304 304 -
Metropolitan Area Planning 376 376 376 -
MBTA Assessments 93,613 93,613 93,613 -
MDC Assessments 12 12 12 -
School Choice 2,473 2,992 2,992 -
Charter School Sending Tuion 264,498 251,771 251,771 -
Suolk County Jail
2,898
2,898
2,898
-
367,258
354,899
354,899
Total Expenditures $ 4,002,989 $ 4,002,989 $ 4,059,689
$ (56,700)
(This page intentionally left blank)
SPECIAL
REVENUE
FUND
The Special Revenue Fund is used to account for the proceeds
or capital projects that are legally restricted or committed for
This fund accounts for a number of federal and state grants
administered by the City’s individual departments in addition
to Community Preservation Act funds.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
89
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
SPECIAL REVENUE FUND
June 30, 2023
(Amounts in thousands)
Total
Special
CPA Fund
2023
Cash and investments
$ 664,285 $ 27,846 $ 692,131
Receivables, net:
Intergovernmental
168,968 - 168,968
Departmental and other
21,869
201
22,070
Total receivables
190,837 201 191,038
Due from other funds
3,384
-
3,384
Total Assets
$ 858,506
$ 28,047
$ 886,553
Warrants and accounts payable $ 35,122 $ 1,096 $ 36,218
Accrued liabilies:
Deposits and other 91,534 - 91,534
Unearned Revenue 382,919 - 382,919
Due to other funds
3,105
58
3,163
512,680
1,154
513,834
Revenue not considered available and leases
1,943
20
1,963
1,943
20
1,963
Restricted 9,625 26,873 36,498
Assigned
334,258
334,258
Total fund balance
343,883
26,873
370,756
resources and fund balance
$ 858,506
$ 28,047
$ 886,553
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
90
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
SPECIAL REVENUE FUND
Year Ended June 30, 2023
(Amounts in thousands)
Special
Total
CPA Fund
2023
Real and Personal Taxes $ - $ 89 $ 89
Excise 29 - 29
Investment income 615 1,072 1,687
Licenses and permits 34 - 34
Departmental and other 51,573 26,288 77,861
Intergovernmental
607,374
9,428
616,802
659,625
36,877
696,502
Current:
General government 12,411 37,030 49,441
Human services 17,085 - 17,085
Public safety 35,939 - 35,939
Public works 8,167 - 8,167
Property & development 243,653 - 243,653
Parks and recreaon 4,911 - 4,911
Library 4,312 - 4,312
Schools 280,881 - 280,881
Public health programs
13,505
-
13,505
Total current expenditures
620,864
37,030
657,894
Capital outlays
2,254
-
2,254
Total Expenditures
623,118
37,030
660,148
36,507 (153) 36,354
Premiums on long-term debt issued 1,146 - 1,146
Transfer in 40,705 - 40,705
Transfer out
(40,000)
-
(40,000)
1,851
1,851
38,358 (153) 38,205
305,525
27,026
332,551
$ 343,883
$ 26,873
$ 370,756
(This page intentionally left blank)
CAPITAL
PROJECTS
FUND
resources to be used for the acquisition or construction of
major capital facilities. Such resources are derived principally
from proceeds of general obligation bonds and from federal
and state grants.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
93
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
CAPITAL PROJECTS FUND
June 30, 2023
(Amounts in thousands)
2023
Cash and investments $ 304,355
Cash and investment held by trustees 35,405
Intergovernmental receivables
18,731
Total Assets
$ 358,491
Warrants and accounts payable $ 69,657
Due to other funds
183
69,840
Revenue not considered available and leases
11,222
Restricted
277,429
Total fund balance
277,429
$ 358,491
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
94
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
CAPITAL PROJECTS FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Intergovernmental
$ 39,234
39,234
Capital outlays
389,833
Total expenses
389,833
(350,599)
Long-term debt and leases issued 385,669
Premiums on long-term debt issued
49,926
435,595
84,996
192,433
$ 277,429
(This page intentionally left blank)
OTHER
GOVERNMENTAL
FUNDS
Other Governmental Funds are those funds that are
Permanent Funds, established by GASB Statement
No. 34, is used to report resources that are legally
restricted to the extent that only earnings, and not
principal, may be used for purposes that support
the reporting government’s programs, that is, for
permanent funds are composed of the following
pools:
Pool#1 is a co-mingled investment fund and is
used for the maintenance and improvement of the
City’s parks and cemeteries and the erection and
maintenance of statues and monuments for the use
and enjoyment of City residents.
Pool#2 is a co-mingled investment fund and is used
for scholarship awards, the purchase of educational
equipment, and the aid of needy students.
Pool#7 is a co-mingled investment fund of various
non-testamentary pooled funds of the City of Boston.
The expendable portion of the fund is composed of
donations/contributions from either individuals or
expended in conformity with their respective trust
instruments.
Debt Service Fund is used to account for resources
accumulating for principal and interest for the 2009
Dudley Square Realty Corporation (DSRC) and
Ferdinand Building Development Corporation
under Section 501(c)(3) of the Internal Revenue
Code. Although legally separate, both DSRC and
FBDC provide services entirely, or almost entirely,
to the City and thus have been reported as blended
component units. DSRC and FBDC are used to
Dudley Municipal Center.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
97
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
OTHER GOVERNMENTAL FUNDS
June 30, 2023
(Amounts in thousands)
Permanent Funds
Capital
Fund
Special
Total Other
Funds
Pool 1
Pool 2
Pool 7
Debt
Fund
Dudley
Square
Realty
Ferdinand
2023
Cash and investments $ -
$ -
$ -
$ 17,818
$ -
$ -
$ 17,818
Cash and investments held by
trustees 83,328 887 25,497 - 1,156 2,295 113,163
Receivables, net
75
3
113
-
-
142
333
Total assets
$ 83,403
$ 890
$ 25,610
$ 17,818
$ 1,156
$ 2,437
$ 131,314
Warrants and accounts payable $ 275
$ -
$ 66
$ -
$ -
$ -
$ 341
Accrued liabilies - - - - - 26 26
Due to other funds
-
-
169
-
-
-
169
275
235
26
536
Revenue not considered available and
leases
-
-
-
-
-
112
112
-
112
112
Nonexpendable 21,360 144 - - - - 21,504
Restricted
61,768
746
25,375
17,818
1,156
2,299
109,162
Total fund balance
83,128
890
25,375
17,818
1,156
2,299
130,666
of resources and leases, and fund
balance
$ 83,403
$ 890
$ 25,610
$ 17,818
$ 1,156
$ 2,437
$ 131,314
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
98
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
OTHER GOVERNMENTAL FUNDS
Year Ended June 30, 2023
(Amounts in thousands)
Permanent Funds
Capital
Fund
Fund
Total Other
Funds
Pool 1
Pool 2
Pool 7
Debt
Fund
Dudley
Square
Ferdinand
2023
Investment income (loss) $ 11,049
$ 63
$ 4,456
$ (851)
$ 1
$ 90
$ 14,808
Departmental and other
247
-
6,022
(364)
21
74
6,000
$ 11,296
$ 63
$ 10,478
$ (1,215)
$ 22
$ 164
$ 20,808
General government
5,276
8
9,842
-
-
23
15,149
Total expenditures
5,276
8
9,842
23
15,149
balances
6,020
55
636
(1,215)
22
141
5,659
Transfers in
-
-
-
1,454
-
-
1,454
sources
1,454
1,454
balances 6,020 55 636 239 22 141 7,113
77,108
835
24,739
17,579
1,134
2,158
123,553
$ 83,128
$ 890
$ 25,375
$ 17,818
$ 1,156
$ 2,299
$ 130,666
(This page intentionally left blank)
INTERNAL
SERVICE
FUND
Internal Service Fund accounts for the City’s self-insurance
their dependents and retirees. The Internal Service Fund
is included in the governmental activities column in the
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
101
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
INTERNAL SERVICE FUND
June 30, 2023
(amounts in thousands)
2023
Cash and Investments $ 82,412
Due from component unit 949
Other assets
14,022
Total Assets
97,383
Accrued liabilies
26,698
26,698
Unrestricted
70,685
$ 70,685
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
102
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
INTERNAL SERVICE FUND
Year Ended June 30, 2023
(Amounts in thousands)
2023
Employee contribuons $ 91,162
Employer contribuons
212,163
303,325
Health benets
300,447
Total expenditures
300,447
2,878
67,807
$ 70,685
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
103
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
INTERNAL SERVICE FUND
Year Ended June 30
(Amounts in thousands)
2023
Cash received from employees and employer $ 303,877
Cash paid to vendors
(306,485)
(2,608)
85,020
$ 82,412
RECONCILIATION OF OPERATING INCOME TO NET CASH
Operang income $ 2,878
Adjustments to reconcile operang income to net cash
provided by operang acvies:
Changes in operang assets and liabilies:
Other assets (2,174)
Due from component units / receivables 552
Accrued liabilies
(3,864)
$ (2,608)
FIDUCIARY
FUNDS
EMPLOYEE RETIREMENT PLAN
plan covering employees of the City of Boston, Boston Public Health
Commission, Boston Housing Authority, Boston Redevelopment
primarily in Chapter 32 of the Massachusetts General Laws.
OPEB TRUST FUND
The OPEB Trust Fund is an irrevocable trust fund established for other
Fund and accumulate to reduce the unfunded actuarial liability for
PRIVATE PURPOSE TRUST FUNDS
Private purpose trust funds are used to report any trust arrangement not
Pool#1 is a co-mingled investment fund of various trust funds of the
City. A number of the Pool#1 trust funds are for the maintenance
and improvement of the City’s parks and cemeteries for the use and
enjoyment of City residents. The other portion of Pool#1 trust funds
private purpose trust funds.
Pool#2 is a co-mingled investment fund and is used for scholarship
awards, the purchase of educational equipment, and the aid of needy
students.
Pool#5
requires that the fund’s income be used for the creation of public utility and
beauty for the use and enjoyment of the inhabitants of the City.
Pool#7 is a co-mingled investment fund of various non-testamentary
trust funds of the City of Boston. The expendable portion of the fund
is composed of donations/contributions from either individuals or
with their respective trust instruments.
LAW ENFORCEMENT TRUST FUND
Law Enforcement Trust Fund accounts for proceeds from property
the costs of protracted investigations, to provide technical equipment or
expertise, and to provide matching funds for federal grants.
STUDENT ACTIVITY CUSTODIAL FUND
Student activity accounts are accounts set up for the express purpose
of conducting student activities. Student activities for this purpose are
student activities belong to the students. Funds may be received and
expended by school leaders on behalf of the students through the
student activity account.
BEFORE & AFTER SCHOOL PROGRAMS
Participating schools will receive their own unique deposit slips. These
funds will be solely used for before and after school programs.
(This page intentionally left blank)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
106
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
(Amounts in thousands)
Pension
Trust Fund
Fund
Total
Cash and investments $ 8,542,487
$ 981,504
$ 9,523,991
Receivables:
Interest and dividends 13,926 - 13,926
Securies sold 6,468 - 6,468
Employer contribuons 21,466 - 21,466
Other
7,152
-
7,152
Total receivables
49,012
-
49,012
Prepaid expenses 954 - 954
Securies lending short-term collateral investment pool
158,416
-
158,416
Total Assets
$ 8,750,869
$ 981,504
$ 9,732,373
Accounts payable, accrued expenses and other liabilies $ 33,120
$ -
$ 33,120
Securies purchased 28,219 - 28,219
Collateral held on securies lending
156,770
-
156,770
218,109
218,109
$ 8,532,760
$ 981,504
$ 9,514,264
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
107
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Year Ended December 31, 2022
(Amounts in thousands)
System
2023
Cash and investments $ 8,542,487
Receivables:
Interest and dividends 13,926
Securies sold 6,468
Employer contribuons 21,466
Other
7,152
Total receivables
49,012
Prepaid expenses 954
Securies lending short-term collateral investment pool
158,416
Total Assets
$ 8,750,869
Accounts payable, accrued expenses and other liabilies $ 33,120
Securies purchased 28,219
Collateral held on securies lending
156,770
218,109
$ 8,532,760
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
108
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Year Ended June 30, 2023
(Amounts in thousands)
2023
Cash and investments
$ 981,504
Total Assets
981,504
Accounts payable, accrued expenses and other liabilies
$ -
$ 981,504
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
109
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
PRIVATE PURPOSE TRUST FUNDS
Year Ended June 30, 2023
(Amounts in thousands)
Pool 1
Pool 2
Cash and investments $ 39,443 $ 703
Receivables:
Lease receivable - -
Other
33
2
Total receivables
33
2
Other assets
-
-
Total Assets
39,476
705
Accounts payable $ 234 $ -
Unearned revenue
-
-
234
Deferred amount for leases
-
-
Held in trust for other purposes
$ 39,242
$ 705
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
110
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Trust Funds
Pool 5
Pool 7
2023
$ 31,554 $ 79,154 $ 150,854
2,574 - 2,574
29
2,444
2,508
2,603
2,444
5,082
30
30
34,187
81,598
155,966
$ 964 $ 528 $ 1,726
-
3,077
3,077
964 3,605 4,803
$ 2,529
-
$ 2,529
2,529
2,529
$ 30,694
$ 77,993
$ 148,634
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
111
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
CUSTODIAL FUNDS
June 30, 2023
(Amounts in thousands)
Total Custodial
Funds
Enforcement
Student
Trust Fund
Fund
2023
Cash and investments
$ 10,457
$ 890
$ 215
$ 11,562
Total assets
10,457
890
215
11,562
Refunds payable and other
-
-
-
-
10,457
890
215
11,562
$ 10,457
$ 890
$ 215
$ 11,562
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
112
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
(Amounts in thousands)
Pension Trust
Fund
Fund
Total
Contribuons:
Employers $ 410,093
$ 174,842
$ 584,935
Employees 189,082
-
189,082
Commonwealth of Massachuses (nonemployer) 196,833
-
196,833
Net appreciaon (depreciaon) in fair value of investments (1,128,596)
67,325
(1,061,271)
Interest and dividends 182,727
13,936
196,663
Management and related fees (63,450)
(1,723)
(65,173)
Securies lending income 3,470
-
3,470
Borrower rebates and fees (2,680)
-
(2,680)
Intergovernmental 8,805
-
8,805
Miscellaneous Income
98
-
98
(203,618)
254,380
50,762
Benets 711,615
132,592
844,207
Reimbursements to other systems 10,181
-
10,181
Refunds of contribuons 16,920
-
16,920
Administraon
8,536
-
8,536
747,252
132,592
879,844
(950,870)
121,788
(829,082)
9,483,630
859,716
10,343,346
$ 8,532,760
$ 981,504
$ 9,514,264
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
113
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Year Ended December 31, 2022
(Amounts in thousands)
2022
Contribuons:
Employers $ 410,093
Employees 189,082
Commonwealth of Massachuses (nonemployer) 196,833
Net appreciaon (depreciaon) in fair value of investments (1,128,596)
Interest and dividends 182,727
Management and related fees (63,450)
Securies lending income 3,470
Borrower rebates and fees (2,680)
Intergovernmental 8,805
Miscellaneous Income
98
(203,618)
Benets 711,615
Reimbursements to other systems 10,181
Refunds of contribuons 16,920
Administraon
8,536
747,252
(950,870)
9,483,630
$ 8,532,760
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
114
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Year Ended June 30, 2023
(Amounts in thousands)
2023
Contribuons:
Employers $ 174,842
Net depreciaon in fair value of investments 67,325
Interest and dividends 13,936
Management and related fees
(1,723)
254,380
Benets 132,592
Administrave expenses and other
-
132,592
121,788
859,716
$ 981,504
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
115
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
PRIVATE PURPOSE TRUST FUNDS
Year Ended June 30, 2023
(Amounts in thousands)
Pool 1
Pool 2
Investment income (loss) $ 7,402
$ 44
Donaons and other
602
-
8,004
44
Administrave expenses and other
3,558
7
3,558
7
4,446
37
34,796
668
$ 39,242
$ 705
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
116
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Trust Funds
Pool 5
Pool 7
2023
$ 3,441 $ 18,984 $ 29,871
217
(475)
344
3,658
18,509
30,215
3,823
17,698
25,086
3,823
17,698
25,086
(165) 811 5,129
30,859
77,182
143,505
$ 30,694
$ 77,993
$ 148,634
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
117
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
CUSTODIAL FUNDS
Year ended June 30, 2023
(Amounts in thousands)
Trust Fund
Fund
School Fund
Total
Cash and Investments $ - $ - $ - $ -
Employers - - - -
Commonwealth of Massachuses (nonemployer) - - - -
Employees - - - -
Donaons and other
969
117
-
1,086
969
117
-
1,086
Net depreciaon in fair value of investments - - - -
Investment income - - - -
Less investment expenses
-
-
-
-
-
-
-
-
Securies lending income - - - -
Less borrower rebates and fees
-
-
-
-
- - - -
-
-
-
-
Intergovernmental - - - -
Miscellaneous income
-
-
1,512
1,512
969
117
1,512
2,598
Benets - - - -
Reimbursements - - - -
Refunds of contribuons - - - -
Refunds payable and other - - - -
Administrave expenses and other
896
146
1,680
2,722
896
146
1,680
2,722
73 (29) (168) (124)
10,384
919
383
11,686
$ 10,457
$ 890
$ 215
$ 11,562
DISCRETELY
PRESENTED
COMPONENT
UNITS
Discretely presented component units are
legally separate from the City but are included
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
119
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
DISCRETELY PRESENTED COMPONENT UNITS
June 30, 2023
(Amounts in thousands)
Public
Health
Commission
Current assets:
Cash and investments $ 62,297
$ 64,291
Cash and investments held by trustee -
-
Receivables, net:
Leases receivable, current -
5,585
Other 37,757
13,814
Other assets 3,229
256
Due from primary government 3,178
-
Total current assets 106,461
83,946
Noncurrent assets:
Cash and investments held by trustee -
-
Notes and other receivables:
Notes receivable 47,802
88,512
Lease receivable, net 39,670
183,596
Interest receivable -
-
Accrued interest receivable on leases -
2,344
Disposion receivable -
30,692
OPEB Asset -
6,052
Other -
-
Capital assets, net:
Nondepreciable 12,948
13,137
Depreciable assets, net 12,263
13,010
Right of use lease assets, net 1,406
5,727
Subscripon IT assets, net -
-
Total noncurrent assets 114,089
343,070
Total assets 220,550
427,016
Deferred amount for pension costs 57,322
7,253
Deferred amount for postemployment benet costs 5,733
1,177
63,055
8,430
Current liabilies
Warrants and accounts payable 21,968
9,587
Accrued liabilies:
Other 623
948
Current poron of long-term debt 2,367
-
Compensated abscences -
-
Due to primary government 1,050
2,618
Polluon remediaon -
-
Unearned revenue 5,437
1,804
Subscripon agreement liability -
-
Leases obligaons/payables 529
-
31,974
14,957
Noncurrent liabilies:
Bonds, notes and leases due in more than one year 3,378
7,511
Other noncurrent liabilies 1,725
136,796
OPEB liability 80,780
-
Subscripon agreement liability LT -
-
Unearned revenue 47,434
30,692
Net pension liability 138,512
16,729
271,829
191,728
303,803
206,685
Deferred amount for pension costs 13,685
2,852
Deferred amount for other postemployment benets costs 42,643
4,188
Deferred amount for leases 40,215
184,543
96,543
191,583
Net investment in capital assets 20,343
23,267
Restricted for:
Restricted -
-
Unrestricted (137,084)
13,911
$ (116,741)
$ 37,178
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
120
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Economic Total
Trustees of the Discretely
Public Library and Industrial Presented
of the City Component Units
2023
$ 6,781 $ 65,198 $ 198,567
24,225 - 24,225
171 4,670 10,426
2,418 15,821 69,810
1,035 851 5,371
- - 3,178
34,630 86,540 311,577
65,526 704 66,230
466 - 136,780
275 1,527,933 1,751,474
- 33,398 33,398
- - 2,344
- 1,784 32,476
- - 6,052
- - -
-
- 11,813 37,898
588 33,544 59,405
1,728 1,305 10,166
- 272 272
68,583 1,610,753 2,136,495
103,213 1,697,293 2,448,072
- - 64,575
- - 6,910
71,485
1,309 8,802 41,666
542 649 2,762
- - 2,367
- 113 113
791 - 4,459
- - -
- 296 7,537
567 174 741
- 233 762
3,209 10,267 60,407
- - 10,889
- 4,339 142,860
- - 80,780
1,127 45 1,172
- - 78,126
- - 155,241
1,127 4,384 469,068
4,336 14,651 529,475
- - 16,537
- - 46,831
402 1,480,921 1,706,081
402 1,480,921 1,769,449
622 46,934 91,166
84,779 704 85,483
13,074 154,083 43,984
$ 98,475 $ 201,721 $ 220,633
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
121
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
DISCRETELY PRESENTED COMPONENT UNITS
Year Ended June 30, 2023
(Amounts in thousands)
Public
Health
Commission
Expenses
$ 229,958
$ 31,366
Charges for services 45,066
25,566
Operang grants and contribuons 117,450
-
Capital grants and contribuons
-
-
162,516
25,566
Net expenses
(67,442)
(5,800)
Investment income 2,304
3,581
Investment income from leases 1,441
372
Sale of property 118
3,345
City appropriaon 120,025
-
Miscellaneous income
913
71
124,801 7,369
57,359 1,569
(174,100)
35,609
$ (116,741)
$ 37,178
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
122
FINANCIAL
SECTION
COMBINING, INDIVIDUAL FUND STATEMENTS AND SCHEDULES
See accompanying independent auditors’ report
Economic
Total
Trustees of the
Discretely
Public Library of
and Industrial
Presented
the City
Component Units
2023
$ 20,351
$ 56,544
$ 338,219
2,883 44,061 117,576
16,264 24,229 157,943
-
923
923
19,147
69,213
276,442
(1,204)
12,669
(61,777)
6,055 - 1,119 13,059
- 30,175 31,988
- - 3,463
- - 120,025
1,947
-
2,931
8,002
31,294
171,466
6,798 43,963 109,689
91,677
157,758
110,944
$ 98,475
$ 201,721
$ 220,633
(This page intentionally left blank)
Stascal
SECTION
(This page intentionally left blank)
FISCAL YEAR ENDED JUNE 30, 2023
126
Contents Page
This part of the City of Boston’s annual comprehensive nancial report presents detailed informaon
as a context for understanding what the informaon in the nancial statements, note disclosures,
and required supplementary informaon says about the government’s overall nancial health.
TABLE OF
CONTENTS
STATISTICAL SECTION (Unaudited)
Financial Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
These schedules contain trend informaon to help the reader understand how the government’s nancial
performance and well-being have changed over me (See accompanying Management’s Discussion and
Analysis, Statement of Net Posion, and Statement of Acvies):
General Government Expenditures by Funcon (GAAP Basis) – Last Ten Fiscal Years
General Government Revenues by Source (GAAP Basis) – Last Ten Fiscal Years
Net Posion by Component – Last Ten Fiscal Years
Changes in Net Posion – Last Ten Fiscal Years
Fund Balances of Governmental Funds – Last Ten Fiscal Years
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
These schedules contain informaon to help the reader assess the government’s most signicant revenue
source, the property tax:
Assessed and Esmated Actual Value of All Taxable Property – Last Ten Fiscal Years
Property Tax Rates – Direct and Overlapping Governments – Last Ten Fiscal Years
Largest Principal Taxpayers – Current Year and Nine Years Ago
Property Tax Levies and Collecons – Last Ten Fiscal Years
Debt Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
These schedules present informaon to help the reader assess the aordability of the government’s
current levels of outstanding debt and the government’s ability to issue addional debt in the future (See
accompanying note 10 of the basic nancial statements):
Raos of Outstanding Debt by Type – Last Ten Fiscal Years
Rao of Net General Obligaon Bonded Debt to Assessed Value and Net Bonded Debt Per Capita – Last Ten
Fiscal Years
Legal Debt Margin Informaon – Last Ten Fiscal Years
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
These schedules oer demographic and economic indicators to help the reader understand the
environment within which the government’s nancial acvies take place:
Demographic and Economic Stascs – Last Ten Fiscal Years
Principal Employers – Current Year and Nine Years Ago
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
These schedules contain service and infrastructure data to help the reader understand how the
informaon in the government’s nancial report relates to the services the government provides and the
acvies it performs:
Full-me Equivalent City Government Employees by Department – Last Ten Fiscal Years
Operang Indicators by Funcon – Last Ten Fiscal Years
Capital Asset Stascs by Department – Last Ten Fiscal Years
Sources: Unless otherwise noted, the prior year informaon in these schedules is derived from the annual
comprehensive nancial reports for the relevant year.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
127
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
FUNCTION
2023
2022
2021
2020
2019
$ 154,252 $ 123,041 $ 122,106 $ 117,152 $ 112,998
% of Total 3.7 3.1 3.3 3.2 3.3
% Change 25.4 0.8 4.2 3.7 25.4
Public Safety $ 809,042 $ 797,386 $ 735,254 $ 763,381 $ 726,406
% of Total 19.5 20.0 19.8 21.0 21.1
% Change 1.5 8.5 (3.7) 5.1 5.3
$ 125,102 $ 130,807 $ 116,862 $ 111,346 $ 106,504
% of Total 3.0 3.3 3.1 3.1 3.1
% Change (4.4) 11.9 5.0 4.5 (4.7)
Library $ 44,041 $ 41,098 $ 39,422 $ 38,270 $ 38,597
% of Total 1.1 1.0 1.1 1.1 1.1
% Change 7.2 4.3 3.0 (0.8) 7.1
Schools $ 1,357,011 $ 1,324,486 $ 1,234,353 $ 1,176,493 $ 1,118,332
% of Total 32.6 33.3 33.3 32.4 32.5
% Change 2.5 7.3 4.9 5.2 2.9
$ 565,815 $ 502,585 $ 473,494 $ 447,159 $ 400,973
% of Total 13.6 12.6 12.8 12.3 11.6
% Change 12.6 6.1 5.9 11.5 12.6
$ 259,465 $ 258,112 $ 260,997 $ 259,420 $ 264,832
% of Total 6.2 6.5 7.0 7.2 7.7
% Change 0.5 (1.1) 0.6 (2.0) 1.3
$ 354,900 $ 332,586 $ 320,220 $ 299,740 $ 283,360
% of Total 8.5 8.4 8.6 8.3 8.2
% Change 6.7 3.9 6.8 5.8 6.0
$ 41,491 $ 37,327 $ 32,631 $ 32,618 $ 41,483
% of Total 1.0 0.9 0.9 0.9 1.2
% Change 11.2 14.4 0.0 (21.4) 6.3
Other $ 448,073 $ 429,654 $ 376,539 $ 381,936 $ 350,195
% of Total 10.8 10.8 10.1 10.5 10.2
% Change
4.3
14.1
(1.4)
9.1
4.5
Total Expenditures $ 4,159,192 $ 3,977,082 $ 3,711,878 $ 3,627,515 $ 3,443,680
% of Total 100.0 100.0 100.0 100.0 100.0
% Change
4.6
7.1
2.3
5.3
5.2
*General fund only
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
128
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2018
2017
2016
2015
2014
FUNCTION
$ 90,076 $ 85,855 $ 80,684 $ 58,242 $ 102,786
2.8 2.8 2.7 2.0 3.7
% of Total
4.9 6.4 38.5 (43.3) 32.6
% Change
$ 689,929 $ 643,100 $ 610,233 $ 633,471 $ 558,802
Public Safety
21.1 20.6 20.6 22.2 20.4
% of Total
7.3 5.4 (3.7) 13.4 0.9
% Change
$ 111,772 $ 106,059 $ 101,157 $ 123,767 $ 113,239
3.4 3.4 3.4 4.3 4.1
% of Total
5.4 4.8 (18.3) 9.3 10.2
% Change
$ 36,025 $ 35,791 $ 33,870 $ 33,966 $ 33,978
Library
1.1 1.1 1.1 1.2 1.2
% of Total
0.7 5.7 (0.3) - 10.0
% Change
$ 1,087,192 $ 1,048,987 $ 1,016,412 $ 960,228 $ 940,276
Schools
33.2 33.6 34.3 33.6 34.2
% of Total
3.6 3.2 5.9 2.1 6.9
% Change
$ 356,251 $ 347,402 $ 309,083 $ 282,648 $ 255,647
10.9 11.1 10.4 9.9 9.3
% of Total
2.5 12.4 9.4 10.6 8.7
% Change
$ 261,377 $ 247,965 $ 236,661 $ 230,089 $ 234,400
8.0 7.9 8.0 8.1 8.5
% of Total
5.4 4.8 2.9 (1.8) 0.7
% Change
$ 267,205 $ 244,320 $ 234,450 $ 215,538 $ 197,939
8.2 7.8 7.9 7.5 7.2
% of Total
9.4 4.2 8.8 8.9 12.3
% Change
$ 39,022 $ 42,460 $ 33,870 $ 35,594 $ 33,376
1.2 1.4 1.1 1.2 1.2
% of Total
(8.1) 25.4 (4.8) 6.6 2.5
% Change
$ 335,108 $ 317,804 $ 311,077 $ 282,621 $ 275,250
Other
10.2 10.2 10.5 9.9 10.0
% of Total
5.4
2.2
10.1
2.7
4.8
% Change
$ 3,273,957 $ 3,119,743 $ 2,967,497 $ 2,856,164 $ 2,745,693
Total Expenditures
100.0 100.0 100.0 100.0 100.0
% of Total
4.9
5.1
3.9
4.0
6.2
% Change
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
129
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
SOURCE
2023
2022
2021
2020
2019
Property Taxes $ 2,988,917 $ 2,819,651 $ 2,650,040 $ 2,498,435 $ 2,344,686
% of Total 67.3 69.7 72.5 67.0 66.1
% Change 6.0 6.4 6.1 6.6 5.5
Motor Vehicle Excises $ 59,835 $ 60,803 $ 54,184 $ 62,792 $ 66,026
% of Total 1.3 1.5 1.5 1.7 1.9
% Change
(1.6) 12.2 (13.7) (4.9) 26.9
Other Excises $ 238,242 $ 150,005 $ 60,227 $ 178,976 $ 190,203
% of Total 5.4 3.7 1.6 4.8 5.4
% Change 58.82 149.1 (66.3) (5.9) (0.7)
$ 109,001 $ 124,563 $ 60,555 $ 103,476 $ 97,442
% of Total 2.5 3.1 1.7 2.8 2.7
% Change (12.5) 105.7 (41.5) 6.2 (0.9)
$ 690,938 $ 649,471 $ 619,709 $ 627,590 $ 577,458
% of Total 15.6 16.0 16.9 16.8 16.3
% Change 6.4 4.8 (1.3) 8.7 1.2
Payment in Lieu of Taxes $ 103,315 $ 92,008 $ 88,615 $ 72,349 $ 87,018
% of Total 2.3 2.3 2.4 1.9 2.5
% Change 12.3 3.8 22.5 (16.9) 2.4
Fines $ 60,429 $ 61,591 $ 52,302 $ 67,367 $ 73,792
% of Total 1.4 1.5 1.4 1.8 2.1
% Change (1.9) 17.8 (22.4) (8.7) 16.7
$ 88,404 $ 4,482 $ 3,615 $ 29,472 $ 30,408
% of Total 2.0 0.1 0.1 0.8 0.9
% Change 1,872.4 24.0 (87.7) (3.1) 97.6
$ 102,244 $ 84,825 $ 67,977 $ 88,272 $ 82,658
% of Total 2.3 2.1 1.9 2.4 2.3
% Change
20.5
24.8
(23.0)
6.8
11.5
$ 4,441,325 $ 4,047,399 $ 3,657,224 $ 3,728,729 $ 3,549,691
% of Total 100.0 100.0 100.0 100.0 100.0
% Change
9.7
10.7
(1.9)
5.0
5.3
*General fund only
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
130
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2018
2017
2016
2015
2014
SOURCE
$ 2,221,877 $ 2,079,693 $ 1,967,687 $ 1,867,259 $ 1,767,783
Property Taxes
65.9 65.7 64.4 64.0 63.6
% of Total
6.8 5.7 5.4 5.6 5.4
% Change
$ 52,040 $ 52,061 $ 67,686 $ 52,922 $ 52,972
Motor Vehicle Excises
1.5 1.6 2.2 1.8 1.9
% of Total
- (23.1) 27.9 (0.1) 12.5
% Change
$ 191,541 $ 160,736 $ 168,577 $ 176,040 $ 170,161
Other Excises
5.7 5.1 5.5 6.0 6.1
% of Total
19.2 (4.7) (4.2) 3.5 (2.3)
% Change
$ 98,287 $ 87,985 $ 86,791 $ 86,392 $ 84,385
2.9 2.8 2.8 3.0 3.0
% of Total
11.7 1.4 0.5 2.4 (3.7)
% Change
$ 570,753 $ 554,661 $ 543,683 $ 523,256 $ 509,199
16.9 17.5 17.8 17.9 18.3
% of Total
2.9 2.0 3.9 2.8 0.9
% Change
$ 84,940 $ 80,501 $ 90,215 $ 79,232 $ 73,324
Payment in Lieu of Taxes
2.5 2.5 3.0 2.7 2.6
% of Total
5.5 (10.8) 13.9 8.1 1.4
% Change
$ 63,206 $ 63,046 $ 60,953 $ 60,116 $ 59,922
Fines
1.9 2.0 2.0 2.1 2.2
% of Total
0.3 3.4 1.4 0.3 1.8
% Change
$ 15,390 $ 2,329 $ 184 $ 61 $ 57
0.5 0.1 - - -
% of Total
560.8 1,165.8 201.6 7.0 (68.2)
% Change
$ 74,144 $ 84,470 $ 70,005 $ 71,205 $ 62,257
2.2 2.7 2.3 2.4 2.2
% of Total
(12.2)
20.7
(1.7)
14.4
31.8
% Change
$ 3,372,178 $ 3,165,482 $ 3,055,781 $ 2,916,483 $ 2,780,060
100.0 100.0 100.0 100.0 100.0
% of Total
6.5
3.6
4.8
4.9
4.1
% Change
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
131
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
2023
2022
2021
2020
2019
Net investment in capital assets $ 1,206,883 $ 1,101,116 $ 1,058,576 $ 950,089 $ 802,391
Restricted 157,701 118,324 113,881 72,436 98,106
Unrestricted
(1,978,608)
(2,035,104)
(2,249,008)
(2,183,384)
(2,675,142)
$ (614,024)
$ (815,664)
$ (1,076,551)
$ (1,160,859)
$ (1,774,645)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
132
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2018
2017
2016
2015
2014
$ 685,036 $ 648,786 $ 557,142 $ 502,985 $ 457,789
75,098 52,746 53,200 51,446 62,701
(2,501,770)
(1,206,488)
(1,159,303)
(1,184,987)
82,638
$ (1,741,636)
$ (504,956)
$ (548,961)
$ (630,556)
$ 603,128
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
133
See accompanying independent auditors’ report
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
2023
2022
2021
2020
Governmental acvies:
General government $ 260,589 $ 209,435 $ 217,654 $ 202,347
Human services 69,950 65,555 56,814 47,648
Public safety 1,262,121 1,172,308 1,112,320 968,853
Public works 171,610 173,842 158,722 161,598
Property and development 324,015 291,461 186,903 140,930
Parks and recreaon 67,172 54,430 53,824 52,148
Library 71,312 57,149 58,717 51,348
Schools 2,575,648 2,123,695 2,083,935 1,874,077
Public health programs 148,884 142,341 123,473 99,414
Interest on long-term debt
45,056
36,821
36,213
47,039
Total governmental acvies expenses
4,996,357
4,327,037
4,088,575
3,645,402
Business-type acvies:
$ 4,996,357
$ 4,327,037
$ 4,088,575
$ 3,645,402
Governmental acvies:
Charges for services:
Public safety 172,392 178,866 128,307 184,364
Public works 33,230 23,003 19,760 30,192
Schools 11,821 15,165 10,996 9,444
Other 57,829 87,842 67,914 81,892
Operang grants and contribuons 1,129,258 864,380 770,430 788,801
Capital grants and contribuons
57,370
42,584
54,589
38,382
Total governmental acvies program revenues
1,461,900
1,211,840
1,051,996
1,133,075
Business-type acvies:
$ 1,461,900
$ 1,211,840
$ 1,051,996
$ 1,133,075
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
134
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2019
2018
2017
2016
2015
2014
$ 175,161 $ 156,670 $ 128,465 $ 128,288 $ 103,923 $ 161,913
57,359 58,494 49,974 52,056 49,884 49,291
1,113,749 1,048,825 962,654 941,313 941,531 821,196
160,918 163,337 130,182 139,816 178,569 157,491
146,886 137,296 168,276 118,582 134,506 118,816
48,804 48,861 41,236 39,769 35,890 32,297
55,944 55,626 51,397 49,959 48,931 52,192
2,026,241 1,931,452 1,833,105 1,803,331 1,620,851 1,554,563
91,468 86,228 81,859 96,083 83,276 69,896
39,562
44,263
42,321
40,995
49,300
48,188
3,916,092
3,731,052
3,489,469
3,410,192
3,246,661
3,065,843
$ 3,916,092
$ 3,731,052
$ 3,489,469
$ 3,410,192
$ 3,246,661
$ 3,065,843
158,455 139,793 147,471 133,656 138,066 139,431
28,609 31,120 28,268 24,269 23,975 19,165
11,385 4,275 5,163 10,540 6,623 2,832
37,547 46,350 36,647 34,730 40,718 41,811
822,932 788,666 760,230 746,277 670,640 583,480
36,224
64,548
52,348
39,381
53,099
11,972
1,095,152
1,074,752
1,030,127
988,853
933,121
798,691
$ 1,095,152
$ 1,074,752
$ 1,030,127
$ 988,853
$ 933,121
$ 798,691
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
135
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
2023
2022
2021
NET EXPENSE:
Governmental acvies
$ (3,534,457)
$ (3,115,197)
$ (3,036,579)
$ (3,534,457)
$ (3,115,197)
$ (3,036,579)
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Governmental acvies:
Taxes:
Property taxes, levied for general purposes 2,959,106 2,810,807 2,630,781
Excises 295,941 211,520 103,720
Payment in lieu of taxes 103,315 92,007 88,615
Grants and contribuons not restricted 266,455 245,625 233,771
Investment income 109,546 11,264 32,659
Miscellaneous 1,734 4,861 3,867
Special items
-
-
-
3,736,097
3,376,084
3,093,413
$ 3,736,097
$ 3,376,084
$ 3,093,413
Governmental acvies
$ 201,640
$ 260,887
$ 56,834
$ 201,640
$ 260,887
$ 56,834
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
136
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2020 2019 2018 2017 2016 2015 2014
$ (2,512,327)
$ (2,820,940)
$ (2,656,300)
$ (2,459,342)
$ (2,421,339)
$ (2,313,540)
$ (2,267,152)
$ (2,512,327)
$ (2,820,940)
$ (2,656,300)
$ (2,459,342)
$ (2,421,339)
$ (2,313,540)
$ (2,267,152)
2,520,908 2,338,507 2,219,700 2,087,659 1,967,021 1,866,277 1,771,166
240,908 264,703 239,005 213,198 224,052 236,208 220,761
72,349 87,018 84,940 80,501 90,215 79,232 73,324
245,559 208,839 214,106 201,013 199,835 191,172 199,007
43,280 46,405 31,417 19,588 15,753 15,404 16,713
3,109 3,011 2,121 3,738 6,058 2,983 4,012
-
57,000
-
-
-
-
-
3,126,113
3,005,483
2,791,289
2,605,697
2,502,934
2,391,276
2,284,983
$ 3,126,113
$ 3,005,483
$ 2,791,289
$ 2,605,697
$ 2,502,934
$ 2,391,276
$ 2,284,983
$ 613,786
$ 184,543
$ 134,989
$ 146,355
$ 81,595
$ 77,736
$ 17,831
$ 613,786
$ 184,543
$ 134,989
$ 146,355
$ 81,595
$ 77,736
$ 17,831
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
137
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
2023
2022
2021
2020
General Fund
Assigned $ 420,028
$ 320,733 $ 313,001 $ 359,789
Unassigned
1,186,928
994,535
898,161
911,690
$ 1,606,956
$ 1,315,268
$ 1,211,162
$ 1,271,479
Nonspendable $ 21,504
$ 21,504 $ 21,504 $ 10,041
Restricted 423,089
331,132 243,913 239,978
Assigned
334,258
295,901
255,852
211,308
$ 778,851
$ 648,537
$ 521,269
$ 461,327
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
138
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2019
2018
2017
2016
2015
2014
$ 392,000 $ 300,652 $ 283,208 $ 266,222 $ 228,236
$ 251,353
794,610
781,402
702,080
682,781
633,936
532,955
$ 1,186,610
$ 1,082,054
$ 985,288
$ 949,003
$ 862,172
$ 784,308
$ 10,041 $ 10,041
$ 10,041 $ 4,974 $ 4,974
$ 4,974
434,893 322,950
240,172 204,810 194,044
199,703
196,634
199,537
220,359
203,134
161,742
154,667
$ 641,568
$ 532,528
$ 470,572
$ 412,918
$ 360,760
$ 359,344
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
139
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
2023
2022
2021
2020
Real and personal property taxes $ 2,989,006 $ 2,819,773 $ 2,650,094
$ 2,498,435
Excises 298,106 210,808 114,411
241,768
Payments in lieu of taxes 103,315 92,008 88,615
72,349
Fines 60,429 61,591 52,302
67,367
Investment Income 104,899 4,686 26,216
34,230
Licenses and permits 102,278 84,859 68,272
88,471
Departmental and other 192,862 193,580 143,001
186,826
Intergovernmental
1,346,974
1,208,707
1,022,654
961,630
5,197,869
4,676,012
4,165,565
4,151,076
General government 218,842 192,291 181,583
207,793
Human services 58,023 53,501 45,211
41,561
Public safety 844,981 826,121 773,699
787,128
Public works 133,269 136,647 123,469
118,424
Property and development 285,144 242,249 169,778
125,180
Parks and recreaon 38,816 35,117 31,096
33,104
Library 48,353 44,419 43,491
41,624
Schools 1,637,892 1,509,522 1,374,621
1,302,764
Public health programs 140,380 136,193 117,678
95,853
Judgments and claims 27,031 30,239 11,477
11,670
Rerement costs 565,815 502,585 473,494
447,159
Other employee benets 259,465 258,112 262,997
259,420
State and district assessments 354,900 332,586 320,220
299,740
Capital outlays 410,688 394,480 356,601
275,339
Debt service:
Principal 139,768
138,878
124,514
126,553
Interest
60,955
49,583
51,495
57,032
Total Expenditures 5,224,322 4,882,523 4,461,424
4,230,344
(26,453)
(206,511)
(295,859)
(79,268)
Long-term debt and leases issued 397,383 375,675 205,418
15,998
Issuance of refunding bonds - - 91,405
82,590
Payments to refunded bonds escrow agent - - (95,934)
(82,481)
Proceeds from sale of property - - -
-
Premiums on long-term debt issued
51,072
62,210
34,910
-
448,455
437,885
235,799
16,107
$ 422,002 $ 231,374 $ (60,060)
$ (63,161)
4.35% 4.38% 4.48% 4.87%
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
140
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2019
2018
2017
2016
2015
2014
$ 2,344,686 $ 2,221,877 $ 2,079,693 $ 1,967,687 $ 1,867,259 $ 1,767,783
256,229 243,581 212,797 236,263 228,962 223,133
87,018 84,940 80,501 90,215 79,232 73,324
73,792 63,279 63,046 65,223 60,116 59,952
35,974 21,534 10,396 1,713 2,312 6,508
82,881 74,356 84,682 70,191 71,291 62,325
177,945 176,731 154,333 134,701 139,321 137,366
894,522
874,737
856,911
827,100
829,582
804,289
3,953,047
3,761,035
3,542,359
3,393,093
3,278,075
3,134,680
130,774 106,048 99,007 92,429 67,461 113,743
42,909 43,976 39,751 40,482 39,578 39,205
750,072 711,621 677,471 640,599 665,655 596,239
113,236 121,834 114,593 116,787 142,223 127,703
125,199 127,027 136,177 102,751 111,513 107,771
28,313 30,130 24,509 23,378 21,574 20,937
40,734 38,477 38,971 36,641 36,518 36,026
1,271,813 1,237,390 1,188,114 1,143,249 1,087,896 1,091,899
88,527 83,269 79,369 80,525 74,821 68,697
1,202 7,693 3,766 1,100 3,678 9,493
400,973 356,251 347,402 309,083 282,648 255,647
264,832 261,377 247,965 236,661 230,089 234,400
283,360 267,205 244,320 234,450 215,538 197,939
263,416 233,995 233,690 234,126 247,474 248,864
126,469 122,041 117,527 109,825 111,381 110,949
56,256
54,199
53,604
54,883
46,890
42,966
3,988,085 3,802,533 3,646,236 3,456,969 3,384,937 3,302,478
(35,038)
(41,498)
(103,877)
(63,876)
(106,862)
(167,798)
165,836 176,698 181,935 181,193 170,190 178,444
- - 58,370 8,100 126,735 -
- - (65,799) (9,487) (147,658) -
57,000 - - - - -
25,798
23,522
23,310
23,059
36,875
17,172
248,634
200,220
197,816
202,865
186,142
195,616
$ 213,596
$ 158,722
$ 93,939
$ 138,989
$ 79,280
$ 27,818
5.16% 5.20% 5.28% 5.39% 5.31% 5.31%
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
141
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
Real Property
Personal
Property
Fiscal Year
Value
(a)
Commercial
Value
Industrial
Value
Assessed
Value
Total Assessed
Value
(1)
Total
Direct Tax
Rate
(b) (c)
2023 $ 141,541,580 $ 60,779,084 $ 1,427,979
$ 8,468,831 $ 212,217,474 15.38
2022 131,900,982 56,788,448 1,313,021
7,824,465 197,826,916 15.58
2021 127,136,166 54,632,351 1,251,386
7,633,024 190,652,927 15.29
2020 115,818,106 51,958,596 1,153,868
7,268,332 176,198,902 15.48
2019 107,628,598 49,035,301 1,206,341
6,643,880 164,514,120 15.52
2018 99,885,328 46,615,297 1,187,339
6,237,993 153,925,958 15.65
2017 93,462,191 43,571,094 1,103,888
5,804,774 143,941,947 15.77
2016 83,719,423 38,031,832 908,352
5,387,474 128,047,081 16.47
2015 72,346,068 32,451,521 785,062
5,154,211 110,736,862 18.15
2014 64,541,403 29,631,863 707,564
4,951,983 99,832,813 19.16
(1)
Represents assessed values determined as of January 1 prior to the start of the scal year. For example, scal 2023 assessed values are as of January 1, 2022.
(a)
Exempt residenal properes not included.
(b) Tax rates are per $1,000 of assessed value and are reported in whole dollars in the above table.
(c) Total direct tax rate is the weighted average calculaon of the residenal, commercial, and industrial values.
Source: City of Boston Assessing Department
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
142
STATISTICAL
SECTION
See accompanying independent auditors’ report
PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS
Last Ten Fiscal Years
Fiscal Year
Class
City General Total Total Direct
(3)
2023 Residenal $ 10.74 $ 10.74 (0.1) % $ 15.38
C.I.P. 24.68 24.68 (0.3) %
2022 Residenal 10.88 10.88 0.2 % 15.58
C.I.P. 24.98 24.98 0.4 %
2021 Residenal 10.67 10.67 0.1 % 15.29
C.I.P. 24.55 24.55 (0.4) %
2020 Residenal 10.56 10.56 0.2 % 15.48
C.I.P. 24.92 24.92 (0.3) %
2019 Residenal 10.54 10.54 0.6 % 15.52
C.I.P. 25.00 25.00 (0.8) %
2018 Residenal 10.48 10.48 (1.0) % 15.65
C.I.P. 25.20 25.20 (0.7) %
2017 Residenal 10.59 10.59 (3.7) % 15.77
C.I.P. 25.37 25.37 (5.4) %
2016 Residenal 11.00 11.00 (9.2) % 15.77
C.I.P. 26.81 26.81 (9.2) %
2015 Residenal 12.11 12.11 (3.7) % 18.15
C.I.P. 29.52 29.52 (5.3) %
2014 Residenal 12.58 12.58 (4.3) % 19.16
C.I.P. 31.18 31.18 (2.4) %
(1)
Per the iniaves of Proposion 2 1/2 adopted by the Commonwealth of Massachuses, the City cannot levy more than 2.5 percent of the total full and fair cash value of all
taxable real and personal property. The City’s levy is also limited in that it cannot increase more than 2.5 percent from the prior year, with certain excepons for new growth or
through overrides and exclusions adopted by City voters
(2)
Real and personal property tax rates are per $1,000 of assessed value.
(3)
Total direct tax rate is the weighted average calculaon of the residenal, commercial, and industrial values. C.I.P. = Commercial, Industrial, and Personal Property.
Source: City of Boston Assessing Department
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
143
See accompanying independent auditors’ report
LARGEST PRINCIPAL TAXPAYERS
2023
2014
Taxpayer
Taxable Assessed
Value
Taxable
Assessed
Value
Taxable Assessed
Value
Taxable
Assessed
Value
Boston Properes
$4,359,548,151
1
2.05%
$2,645,041,500
2
2.68%
Eversource
3,147,561,090
2
1.48%
Oxford Properes
2,243,860,250
3
1.06%
Rockpoint Group
1,908,210,730
4
0.90%
Tishman Speyer Properes
1,865,615,206
5
0.88%
917,083,700
4
0.92%
Teacher’s Insurance and Annuity Associaon
1,731,216,410
6
0.82%
854,932,000
5
0.86%
Equity Residenal 1,588,537,280
7
0.75%
PGIM Real Estate a Fort Hill Associates
1,396,495,100
8
0.66%
702,097,100
7
0.70%
MetLife Real Estate Investments
1,234,690,760
9
0.58%
Naonal Grid
1,161,873,850
10
0.55%
577,742,700
9
0.58%
Blackstone Real Estate Partners
1,159,353,340
11
0.55%
2,679,804,900
1
2.68%
Diversied Healthcare Trust a Senior Housing
1,104,558,900
12
0.52%
Synergy Investments
1,027,070,623
13
0.48%
John Hancock Financial
886,449,640
14
0.42%
Morgan Stanley
851,138,510
15
0.40%
Fors Property Group
780,977,800
16
0.37%
Clarion
760,499,700
17
0.36%
Beacon Capital
744,896,620
18
0.35%
826,872,480
6
0.83%
NSTAR
1,860,353,661
3
1.86%
Fallon Company/MA
Mutual
587,326,070
8
0.59%
UIDC of Massachuses, Inc
487,308,180
10
0.49%
$27,952,553,960
13.18%
$12,138,562,291
12.19%
(1)
The methodology used in creang the table involves the search of the tle holder(s) of all major parcels of property in the City, and then further
researching to idenfy common ownership of subsidiaries. This methodology does not necessarily locate all parcels owned by aliates. If common
ownership of a property is idened that value is assigned by allocang the property equally to all owners (e.g. three owners are each assumed to
own 33%).
(2)
Pursuant to Chapter 59 of the General Laws, Secon 4, personal property consists of movable physical items not permanently aached to real estate.
Many items of personal property are exempt from taxaon in Massachuses. There are three general types of personal property that are taxable:
business and professional furnishings, machinery used in the conduct of business, and personal property of public ulies.
Source: City of Boston Assessing and Treasury Departments
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
144
STATISTICAL
SECTION
See accompanying independent auditors’ report
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
(amounts in millions)
Net of Refunds Collected as
of June 30, 2023
% Net
Gross
% Gross
% Net
Net
% Gross
Net %
Fiscal Year
Gross
(1)
Net
Gross
Amount
Amount
Levy
Amount
Levy
Levy
2023
$ 2,996.1
$ 2,966.3 99.0%
$ 3,001.1 100.2% 101.2%
$ 2,971.1 99.2% 100.2%
2022 2,826.2 2,793.0 98.8
2,809.3 0.994 1.006
2,801.0 0.991 100.3
2021 2,678.1 2,674.4 99.9
2,665.8 99.5 99.7
2,647.5 98.9 99.0
2020 2,512.0 2,464.7 98.1
2,496.0 99.4 101.3
2,480.8 98.8 100.7
2019 2,364.7 2,331.4 98.6
2,362.2 99.9 101.3
2,347.7 99.3 100.7
2018 2,223.2 2,192.6 98.6
2,216.2 99.7 101.1
2,207.1 99.3 100.7
2017 2,093.9 2,055.2 98.2
2,083.3 99.5 101.4
2,075.4 99.1 101.0
2016 1,963.1 1,924.8 98.0
1,958.4 99.8 101.7
1,949.3 99.3 101.3
2015 1,869.0 1,833.1 98.1
1,865.6 99.8 101.8
1,853.6 99.2 101.1
2014 1,779.8 1,744.9 98.0
1,784.7 100.3 102.3
1,765.8 99.2 101.2
(1)
Includes omied assessments billed in June of each scal year and subsequently reduced through residenal exempon.
Source: City of Boston Treasury Department
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
145
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands, except per capita amount)
General
Equipment
Fiscal Year
Notes Payable
(1)
Leases
2023
$ 1,907,077 $ 18,069 $ 74,545 $ 15,587 $ 12,521
2022
1,661,956 20,286 67,863 16,372 -
2021
1,418,056 21,725 61,608 - -
2020
1,348,339 23,308 56,410 - -
2019
1,491,091 65,822 64,096 - -
2018
1,457,450 67,398 69,626 - -
2017
1,416,971 74,266 69,465 - -
2016
1,395,367 76,619 62,266 - -
2015
1,339,367 63,361 56,425 - -
2014
1,296,153 75,680 45,887 - -
Note: Details regarding the City’s outstanding debt can be found in the notes to the nancial statements.
(1)
Includes Bond Ancipaon Notes, MWPAT Notes, and Other Notes.
(2)
See page 151 for the City’s total personal income data.
(3)
See page 151 for the City’s populaon data.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
146
STATISTICAL
SECTION
See accompanying independent auditors’ report
Total Primary Per
Personal Income
(2)
Capita
(3)
$ 2,027,799 5.36% 2,932.33
1,766,477 5.15 2,530.77
1,501,389 4.42 2,171.11
1,428,057 4.73 2,052.02
1,621,009 5.37 2,329.28
1,594,474 5.28 2,291.15
1,560,702 5.41 2,285.02
1,534,252 5.55 2,280.26
1,459,153 5.55 2,179.57
1,417,720 5.72 2,160.99
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
147
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands, except per capita amount)
Calendar Year
General
Assessed Value
(1)
General
Assessed Value
General
per Capita
(2)
2023 $ 1,907,077 $ 212,217,474 0.9% $ 2,757.76
2022 1,661,956 197,826,916 0.8 2,403.30
2021 1,418,056 190,652,927 0.7 2,050.60
2020 1,348,339 176,198,902 0.8 1,937.47
2019 1,491,091 164,514,120 0.9 2,142.60
2018 1,457,450 153,925,958 1.0 2,094.26
2017 1,416,971 143,941,947 1.0 2,074.58
2016 1,395,367 128,047,081 1.1 2,073.85
2015 1,339,367 110,736,862 1.2 2,000.64
2014 1,296,153 99,832,813 1.3 1,975.69
(1)
See page 141 for the City’s total assessed value of property.
(2)
See page 151 for the City’s populaon data.
(This page intentionally left blank)
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
149
See accompanying independent auditors’ report
Last Ten Fiscal Years
(Amounts in thousands)
2023
2022
2021
2020
2019
Debt limit $ 11,318,383 $ 10,194,726 $ 10,194,726 $ 8,989,652 $ 8,989,652
Total net debt applicable to limit
3,455,346
3,071,258
2,869,764
2,470,631
2,311,238
Legal debt margin
$ 7,863,037
$ 7,123,468
$ 7,324,962
$ 6,519,021
$ 6,678,414
Total net debt applicable to the limit
as a percentage of debt limit 30.53% 30.13% 28.15% 27.48% 25.71%
Fiscal year 2023 equalized valuaon, 2022
(1)
$ 226,367,657
Debit limit (5% of assessed value)
(2)
11,318,383
Debit applicable to limit:
General obligaon bonds (1,238,218)
Total authorized/unissued
(2,217,134)
Total debt oustanding plus authorized/unissued (3,455,352)
Less new authorizaon adjustments approved through June 30, 2023
6
Amount within debt limit
-
Debt incurring capacity as of June 30, 2023
$ 7,863,037
(1)
Includes the value of Chapter 121A tax agreement properes
(2)
The laws of the Commonwealth of Massachuses provide for general debt limits for the City, consisng of a Normal Debt Limit and a Double Debt Limit. The Normal Debt
Limit is 5.0% of the assessed valuaon of taxable property in the City as last equalized by the State Department of Revenue, and may authorize debt up to this limit
without State approval. The City may also authorize debt up to twice this amount (the Double Debt Limit) with the approval of the State Commonwealth’s Secretary of
Administraon and Finance.
(3)
The debt authorized but unissued as of June 30, 2022 and City Council authorizaons during scal year 2023 are reported for purposes of the computaon of legal debt
margin within the Normal Debt Limit.
Source: City of Boston Oce of Budget Management
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
150
STATISTICAL
SECTION
See accompanying independent auditors’ report
2018
2017
2016
2015
2014
$ 7,178,810 $ 7,178,810 $ 5,540,530 $ 5,540,530 $ 5,156,374
2,122,823
1,913,350
1,809,054
1,388,019
1,590,189
$ 5,055,987
$ 5,265,460
$ 3,731,476
$ 4,152,511
$ 3,566,185
29.57% 26.65% 32.65% 25.05% 30.84%
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
151
See accompanying independent auditors’ report
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
Fiscal Year
(1)
Total Personal
Income (in
thousands)
(2)
Per Capita
Personal
Income
Unemployment
Rate
(3)
2023
N/A N/A N/A N/A
2022 650,706 37,822,286 58,125 3.6
2021 654,776 32,959,460 50,337 5.8
2020 691,531 *N/A *N/A 9.2
2019 694,295 34,005,181 48,978 2.60
2018 695,926 30,180,223 43,367 3.00
2017 683,015 28,847,822 42,236 3.40
2016 672,840 27,625,465 40,237 3.40
2015 669,469 26,273,980 39,246 4.40
2014 656,051 24,804,632 36,395 5.30
N/A = Informaon not available for this scal year
(1)
1 Source: U.S. Census Bureau, Populaon Esmates Program, Vintage 2019 Populaon Esmates (for 2011-2019), 2020 Decennial Census
(for 2020) and Vintage 2022 Populaon Esmates (for 2021-2022); BPDA Research Division Analysis.
(2)
2 Source: U.S. Census Bureau, 2011-2022 1-year American Community Survey esmates; BPDA Research Division Analysis. Converted to
2022 dollars using the Consumer Price Index.
(3)
3 Source: Bureau of Labor Stascs, Local Area Unemployment Stascs; BPDA Research Division Analysis.
*
Due to data collecon challenges during the pandemic, the Census Bureau released only experimental American Community Survey esmates
for 2020. They cauon against comparing these to other years.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
152
STATISTICAL
SECTION
See accompanying independent auditors’ report
PRINCIPAL EMPLOYERS
2023
2014
Employer
Employees
of Total City
Employment
Employees
of Total City
Employment
Massachuses General Hospital 18,798 1 2.27% 17,036 1 2.48%
Brigham and Women’s Hospital 14,584 2 1.76% 13,120 2 1.91%
Boston University 10,468 3 1.27% 10,797 3 1.57%
Boston Children’s Hospital 9,198 4 1.11% 8,363 4 1.22%
Beth Israel Deaconess Medical Center 8,737 5 1.06% 7,435 6 1.08%
State Street Bank & Trust Company 7,500 6 0.91% 7,800 5 1.14%
Boston Medical Center 7,156 7 0.87% 5,285 8 0.77%
Harvard University Graduate Schools 6,934 8 0.84% 5,571 7 0.81%
Northeastern University* 6,699 9 0.81% 4,767 10 0.69%
Dana-Farber Cancer Instute 6,013 10 0.73%
Fidelity Investments
-
5,000
9
0.73%
Total
96,087
11.62%
85,174
12.40%
Total Boston Employment ** 826,967
Source: Bureau of Economic Analysis; Center for Medicare and Medicaid
Services, Form CMS-2552-10; Naonal Center for Educaon Stascs;
Harvard University Fact Book; Direct Contact with Employers; Boston
Business Journal; BPDA Research Division Analysis. Esmates reect most
recent data available.
* Northeastern’s employment includes Northeastern University Professional
Programs.
** Boston’s total payroll and non-payroll employment as of 2021. Total
employment for the city for 2022 is not available unl the release of U.S.
Bureau of Economic Analysis (BEA) data in late November 2023.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
153
See accompanying independent auditors’ report
Last Ten Fiscal Years
Fiscal Year
2023
2022
2021
2020
2019
Public safety
(2)
4,287 4,369 4,460 4,518 4,476
Public works 308 331 349 358 357
Other city departments
(3)
2,755 2,641 2,727 2,715 2,708
Boston Public Health Commission
(4)
824 857 872 847 832
Schools
9,623
9,559
9,528
9,303
9,249
17,797
17,757
17,936
17,741
17,622
Schools 1,096 756 621 654 636
All others
(5)
343
284
299
287
270
1,439
1,040
920
941
906
Total employees
19,236
18,797
18,856
18,682
18,528
(1)
All data are as of January 1 in the year stated. The methodology used in compiling these data was established jointly by the City and the Boston Municipal Research
Bureau.
(2)
Public Safety includes the Police Department and the Fire Department and starng in FY15 the Oce of Emergency Management
(3)
Includes Boston State Rerement System funded solely from the investment income account of the system.
(4)
Boston Public Health Commission employees are funded by the City, but are not employees of the City.
(5)
All Suolk County Registry of Deedsemployees became employees of theCommonwealth as of July 1, 1999.
(6)
Does not include grants managed by the Boston Public Health Commission.
(7)
All data are as of January 1 in the year stated. The methodology used in compiling these data was established jointly by the City and the Boston Municipal Research
Bureau.
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
154
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2018
2017
2016
2015
2014
4,442 4,501 4,456 4,529 4,541
362 373 377 394 366
2,730 2,688 2,650 2,678 2,696
845 827 777 770 762
9,005
8,782
8,746
8,789
8,664
17,384
17,171
17,006
17,160
17,029
595 610 656 601 698
358
385
370
282
277
953
995
1,026
883
975
18,337
18,166
18,032
18,043
18,004
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
155
See accompanying independent auditors’ report
Last Ten Fiscal Years
Fiscal Year
2023
2022
2021
2020
2019
Police
Service calls answered
634,765
572,844
598,470
568,707
497,728
Moving/trac violaons
19,640
26,354
28,519
61,731
103,485
Parking violaons as of June 30
1,004,736
1,080,858
908,581
1,067,501
1,289,023
Fire
Calls answered
93,301
85,572
75,346
84,357
83,173
Inspecons conducted
23,804
22,530
21,614
21,350
25,896
Library
Personnel full-me
445
407
400
416
410
Personnel part-me 36 28
38
36
43
Central and branch libraries 26 26
26
26
26
Books, audio and video materials,
newspapers, and magazines in circulaon
4,148,898
4,382,562
3,898,416
3,629,323
4,223,612
Library cards in force
450,902
590,793
504,138
383,240
332,468
Schools
Student enrollment as of June 30
48,927
49,970
51,434
53,094
54,300
Streets, sidewalks, and bridges
Streets in miles
988
988
988
988
988
Hospitals
Births as of June 30
20,303
21,015
20,340
20,532
20,217
Deaths as of June 30
8,001
8,561
8,347
8,771
7,763
Source: City of Boston Auding Department
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
156
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2018
2017
2016
2015
2014
494,226
516,741
408,144
421,573
566,297
92,111
95,865
107,204
110,254
90,180
1,414,184
1,358,385
1,346,400
1,272,107
1,326,235
86,103
85,598
82,438
80,079
73,443
24,009
24,332
25,519
23,019
23,896
411
411
413
417
408
45
45
50
58
59
25
25
24
24
25
3,806,215
3,796,379
3,707,607
3,715,079
3,732,000
292,763
281,439
268,275
323,789
361,939
55,594
56,433
56,531
57,102
56,975
988
988
988
988
988
20,686
20,089
20,968
19,586
20,392
7,790
7,526
7,383
7,438
7,330
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
157
See accompanying independent auditors’ report
Last Ten Fiscal Years
Fiscal Year
2023
2022
2021
2020
2019
Police
Ocers and personnel 2,754 2,857 2,883 2,754 2,936
Staons 11 11 11 11 11
Fire
Ocers and personnel 1,604 1,650 1,644 1,855 1,649
Staons 35 34 34 34 34
Parks and Recreaon
Personnel (Parks Division) 212 253 255 298 274
Neighborhood (city) parks 266 258 258 257 257
Neighborhood (city) playgrounds – Tot Lots 140 137 137 137 137
Community Centers – (BCYF operated) 29 29 30 28 36
Golf courses 2 2 2 2 2
Swimming pools (BCYF operated) 18 18 20 17 19
Tennis courts 70 64 64 55 58
Public Educaon
Total number of Boston Public Schools employees 10,386 9,987 10,149 10,380 10,695
Total number of schools 115 121 123 125 125
Public Works
Trac signals (signalized intersecons) 896 886 883 847 872
Parking meters (approximately) 6,018 5,960 6,258 6,603 6,736
Bridges 40 40 40 40 40
Hospitals
Number of hospitals 20 20 20 20 19
Paent beds 6,234 6,152 6,140 6,113 6,108
Source: City of Boston Auding Department
FISCAL YEAR ENDED JUNE 30, 2023
ANNUAL COMPREHENSIVE FINANCIAL REPORT
158
STATISTICAL
SECTION
See accompanying independent auditors’ report
Fiscal Year
2018
2017
2016
2015
2014
2,869
2,896 2,895 2,907 2,933
11
11 11 11 11
1,652
1,623 1,618 1,604 1,604
34
35 35 35 35
269
280 251 306 233
257
258 251 251 262
132
131 129 127 129
36
30 29 29 29
2
2 2 2 2
19
18 18 17 18
65
65 65 65 66
10,344
10,255 9,634 9,530 9,374
125
124 125 128 128
866
859 854 849 841
6,722
6,420 7,626 7,699 7,614
40
40 40 36 37
19
20 20 20 21
6,053
6,021 5,227 6,049 5,402
