Hamden Audit FY20

TOWN OF HAMDEN, CONNECTICUT
ANNUAL FINANCIAL REPORT

JUNE 30, 2020
TABLE OF CONTENTS
Page
Number
FINANCIAL SECTION
Independent Auditor’s Report 1-2
Management’s Discussion and Analysis 3a-3f
Basic Financial Statements:
Government-Wide Financial Statements: Exhibit
Statement of Net Position (Deficit) A 4
Statement of Activities B 5-6
Fund Financial Statements:
Balance Sheet - Governmental Funds C 7
Statement of Revenues, Expenditures, and

Changes in Fund Balances (Deficits) – Governmental Funds D 8
Reconciliation of the Statement of Revenues,

Expenditures and Changes in Fund Balances (Deficits)
of Governmental Funds to the Statement of Activities E 9
Statement of Revenues, Expenditures and Changes in Unassigned

Fund Balance – Budgetary Basis – Budget and Actual –
General Fund F 10
Statement of Net Position (Deficit) – Proprietary Funds G 11
Statement of Revenues, Expenses and Changes in

Net Position (Deficit) – Proprietary Funds H 12
Statement of Cash Flows – Proprietary Funds I 13
Statement of Fiduciary Net Position (Deficit) – Fiduciary Funds J 14
Statement of Changes in Fiduciary Net Position (Deficit) –

Fiduciary Funds K 15
Notes to Financial Statements 16-64

TABLE OF CONTENTS
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related

Ratios – Pension Plan RSI-1 65
Schedule of Changes in Net OPEB Liability and Related

Ratios – Other Post Employee Benefits RSI-2 66
Schedule of Employer Contributions – Pension Plan RSI-3 67
Schedule of Town Contributions – Connecticut Municipal

Employees’ Retirement System RSI-4 68
Schedule of Employer Contributions – Other Post Employee Benefits RSI-5 69
Schedule of Investment Returns – Pension Plan RSI-6 70
Schedule of Investment Returns – Other Post Employee Benefits RSI-7 71
Schedule of the Town’s Proportionate Share of the Net

Pension Liability (Asset) – Connecticut Municipal Employees’
Retirement System RSI-8 72

Pension Liability – Teachers’ Retirement Plan RSI-9 73

OPEB Liability – Teachers’ Retirement Plan RSI-10 74
Supplemental and Combining Nonmajor

Fund Statements and Schedules: Page
Schedule Number
General Fund:
General Fund Revenues and Other Financing

Sources – Budgetary Basis – Budget and Actual 1 75-76
General Fund Expenditures, Encumbrances

and Other Financing Uses –
Budgetary Basis – Budget and Actual 2 77-78
Non-Major Governmental Funds:
Combining Balance Sheet 3 79-82
Combining Statement of Revenues, Expenditures

and Changes in Fund Balances (Deficits) 4 83-86
TABLE OF CONTENTS
Internal Service Funds:
Combining Statement of Net Fund Position (Deficit) 5 87
Combining Statement of Revenues, Expenses and

Changes in Net Fund Position (Deficit) 6 88
Combining Statement of Cash Flows 7 89
Private Purpose Trust Funds:
Combining Statement of Net Position 8 90
Combining Statement of Changes in Net Position 9 91
Agency Funds:
Combining Statement of Fiduciary Net Position 10 92
Combining Statement of Changes in Assets and

Liabilities 11 93
Other Schedules:
Schedule of Property Taxes Levied, Collected

and Outstanding 12 94-95
Schedule of Debt Limitation 13 96-97

CLERMONT Clermont & Associates, LLC
37 Waterbury Road
ACCOUNTANTS • ADVISORS Prospect CT 06712
Main: 203-758-6658
Fax: 203-758-6758
clermontaccounting.com
INDEPENDENT AUDITOR’S REPORT
Board of Finance
Town of Hamden, Connecticut
Hamden, CT 06518
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund
and the aggregate remaining fund information of the Town of Hamden, Connecticut, as of and for the year
ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the
Town of Hamden, Connecticut’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to the financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of governmental activities, each major fund, and the aggregate remaining
fund information of the Town of Hamden, Connecticut as of June 30, 2020, and the respective changes in
the 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 accounting principles generally accepted
in the United States of America.
1
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 3a through 3f and the required supplemental information on pages 65-
74, be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town of Hamden, Connecticut’s basic financial statements. The combining and individual
nonmajor fund financial statements and schedules, the schedule of property taxes levied, collected and
outstanding, and the schedule of debt limitation are presented for the purposes of additional analysis and
are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules, the schedule of property
taxes levied, collected and outstanding, and the schedule of debt limitation are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining nonmajor fund financial statements and schedules
described in the above paragraph are fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 31,
2021 on our consideration of the Town of Hamden, Connecticut’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the effectiveness of the Town of Hamden, Connecticut’s internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering Town of Hamden, Connecticut’s internal control over
financial reporting and compliance.
CLERMONT & ASSOCIATES, LLC

Prospect, Connecticut
January 31, 2021
2
MANAGEMENT’S DISCUSSION AND ANALYSIS
JUNE 30, 2020
Our discussion and analysis of the financial performance of the Town of Hamden, Connecticut (the
“Town”), provides an overview of the Town’s financial activities for the fiscal year ended June 30, 2020.
Please read it in conjunction with the Town’s financial statements that follow this section.
Financial Highlights
 On a government-wide basis, the liabilities of the Town of Hamden exceeded its assets, resulting
in a total net position on June 30, 2020, of ($995,439,195). The increase in deficit from FY2019
concerns primarily assets and liabilities associated with pension and other post-employment
benefits.
 On a government-wide basis, during the year, the Town’s net position decreased by
$106,868,105 compared to a $489,026 decrease in 2019.
 At the close of the year, the Town of Hamden’s combined governmental funds, on a current
financial resources basis, had a fund balance of ($4,269,746), a decrease of $18,211,664 from
the prior fiscal year fund balance of $13,941,918. Capital expenditures on bonded capital projects
of $15,160,474 as well as decreases in grant revenues in nonmajor funds resulted in this
decrease.
 At the end of the 2020 fiscal year, the total fund balance for the General Fund alone was
($2,289,004), a decrease of $4,263,644 from the prior fiscal year. The total General Fund balance
at year-end represents (0.89%) of the total General Fund expenditures of $256,514,368 for the
fiscal year ending June 30, 2020.
 The Town of Hamden’s total long-term bonded indebtedness decreased by $3,975,000 during the
current fiscal year to $294,205,000 through General Fund payments and refunding of debt.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town of Hamden’s basic
financial statements. The basic financial statements are comprised of three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This
report also contains other supplementary information in addition to the basic financial statements
themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
Town of Hamden’s finances, in a manner similar to private-sector business. All of the resources the Town
has at its disposal are shown, including major assets such as buildings and infrastructure. A thorough
accounting of the cost of government is rendered because the statements present all costs, not just how
much was collected and disbursed. They provide both long-term and short-term information about the
Town’s overall financial status.
The statement of net position presents information on all of the Town’s assets and liabilities, with the
difference reported as net position. The Town’s net position – the difference between assets and liabilities
– is one way to measure the Town’s financial health. Over time, increases or decreases in net position
may serve as an indicator of whether the financial health of the Town is improving or deteriorating. It
speaks to the question of whether or not the Town, as a whole, is better or worse off as a result of this
year’s activities. Other non-financial factors will need to be considered, such as changes in the Town’s
property tax base and the condition of the Town’s roads, to assess the overall health of the Town of
Hamden.
3a
The statement of activities presents information showing how the Town’s net position changed during the
most recent fiscal year. All of the current year’s revenues and expenses are taken into account regardless
of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some
items that will only result in cash flow in some future fiscal period, for example uncollected taxes and
earned but unused vacation leave.
Activities of the Town of Hamden encompass the Town’s basic services and include governmental and
community services, administration, public safety, health and welfare, and education. Property taxes,
charges for services and state and federal grants finance most of these activities.
The government-wide financial statements (statement of net position and statement of activities) can be
found in Exhibits A and B of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control and accountability over resources
that have been segregated for specific activities or objectives. The Town of Hamden, like other state and
local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The Town of Hamden has three kinds of funds:
Governmental funds: Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term inflows
and outflows of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The Town of Hamden maintains 19 individual governmental funds. Information is presented separately in
the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General Fund and the Capital Project Fund. Data from the other
governmental funds are combined into a single, aggregated presentation as Nonmajor Governmental
Funds.
The Town of Hamden adopts an annual budget for its General Fund. A budgetary comparison statement
has been provided for the General Fund to demonstrate compliance with the authorized budget. The
statement of revenues and expenditures on a budgetary basis can be found in Exhibit F. This information
is reported as required supplementary information.
The basic governmental fund financial statements (balance sheet and statement of revenues,
expenditures and changes in fund balance) can be found in Exhibits C and D of this report.
Proprietary funds: The Town maintains one type of proprietary fund. Internal service funds are an
accounting device used to accumulate and allocate costs internally among the Town’s various
functions. The Town uses internal service funds to account for its self-insured medical and workers’
compensation benefits. Because these services predominantly benefit governmental rather than
business-type functions, they have been included within governmental activities in the government-wide
financial statements.
The basic proprietary fund financial statements can be found in Exhibits G, H and I of this report.
3b
Fiduciary funds: Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to provide services to the Town’s constituency. The Town has
one pension trust fund, three private purpose trust funds and three agency funds. The basic fiduciary fund
financial statements can be found in Exhibit J and K of this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found
immediately after the Exhibits in this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position and an important determinant of its ability to finance services in the future. The Town of
Hamden’s governmental activities liabilities exceeded assets by $995,439,195 on June 30, 2020. The
growth in the deficit from FY2019 to FY2020 concerns primarily assets and liabilities associated with
pension and other post-employment benefits.

Summary Statement of Net Position (Deficit)
June 30, 2020 June 30, 2019
Current and other assets $ 62,013,889 47,558,631

Deferred outflows on resources 58,642,748 58,224,035
Capital assets 264,326,323 260,536,323
Total assets and deferred outflows on resources $ 384,982,960 366,318,989
Other liabilities $ 84,319,884 42,852,210

Deferred inflows on resources 41,255,636 48,103,637
Long-term liabilities 1,254,846,635 1,163,934,232
Total liabilities and deferred inflows on resources $ 1,380,422,155 1,254,890,079
Net position (deficit):

Investment in capital assets - net of related debt $ 71,810,228 78,022,265
Restricted 754,327 10,000
Unrestricted (deficit) (1,068,003,750) (966,603,355)
Total net position (deficit) $ (995,439,195) (888,571,090)
By far the largest portion of the Town of Hamden’s net position (deficit) reflects its investment in capital
assets (such as land, buildings, machinery, equipment and infrastructure); less any related debt used to
acquire those assets that is still outstanding and the unrestricted deficit position related to the net
retirement obligations as well as the liabilities associated with retirement benefits.
3c
Summary Statement of Activities
June 30, 2020 June 30, 2019

Operating revenues:
Charges for services $ 6,170,907 8,611,013
Operating grants and contributions 62,388,048 61,436,585
Capital grants and contributions 3,517,355 2,065,477
General revenues:
Property taxes 190,395,341 188,112,045
Grants not restricted to specific purposes 8,030,645 6,228,814
Unrestricted investment earnings 550,941 688,362
Miscellaneous 1,500,189 1,900,563
Bond premiums
Total revenues $ 272,553,426 269,042,859
Expenses:
General government $ 36,459,660 17,005,087
Public safety 46,467,820 43,496,751
Public works 92,454,745 13,855,615
Health and welfare 3,057,031 2,615,829
Culture and recreation 9,560,991 4,667,226
Education 177,118,258 173,205,436
Interest on long-term debt 14,303,026 14,685,941
Total expenses $ 379,421,531 269,531,885
Changes in net position (deficit) $ (106,868,105) (489,026)
Net position (deficit), beginning (888,571,090) (888,082,064)
Net position (deficit), ending $ (995,439,195) (888,571,090)
The Town of Hamden’s net deficit position increased by $106,868,105 during the fiscal year. This
increase in the deficit is principally due to the changes in other post-employment and pension benefits.
Governmental Activities
For governmental activities, approximately 69% of the revenues were derived from property taxes,
followed by approximately 25% from intergovernmental revenues.
Major revenue factors included:
 Grant revenue increased by $2,403,341 and charges for services decreased by $2,440,106.
 Property tax revenue increased by $2,283,296.
For governmental activities, approximately 46% of the Town’s expenses relate to education, 9% relate to
general government, 24% relate to public works operations, 12% to public safety, 4% to interest on debt,
and the remaining 5% relate to health and welfare, community development and culture and recreation.
3d
Financial Analysis of the Government’s Funds
As noted earlier, the Town of Hamden uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds: The focus of the Town of Hamden’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town of Hamden’s financing requirements. In particular, unassigned fund balance may
serve as a useful measure of a government’s net resources available for spending at the end of the fiscal
year.
The General Fund is the chief operating fund of the Town of Hamden. At the end of the current fiscal
year, the fund balance of the General Fund was ($2,289,004).
As stated earlier, the fund balances of the Town of Hamden’s General Fund decreased by $4,263,644
during the current fiscal year. This decrease was primarily due to increases in public works, debt services
and other expenditures, offset some, by a decrease in education expenditures.
The Capital Project Fund had a decrease in fund balance of $11,742,570 which included grant revenue
of $3,417,904 and capital expenditures of $15,160,474.
Proprietary funds: The deficit of the Internal Service Funds at the end of the year was $11,737,061, a
decrease in deficit of $1,086,404 over the prior year due to a decrease in workers compensation benefits
and claims.
General Fund Budgetary Highlights
During the year, actual revenues and other financing sources were $228,715,245, which were lower than
budgetary estimates by $7,746,370.
Actual expenditures and transfers out on a budgetary basis totaled $233,722,717 or $2,738,898 lower
than budgeted.
Major contributors were:
 Property taxes, intergovernmental and miscellaneous revenue were less than anticipated.
3e
Capital Assets and Debt Administration
Capital Assets: The Town of Hamden’s investment in capital assets for its governmental activities as of
June 30, 2020, amounts to $481 million on a gross basis and $264 million net of accumulated
depreciation. This investment in capital assets includes land, buildings, land improvements, machinery
and equipment, park facilities, roads and bridges.

Capital Assets Net of Depreciation
June 30, 2020 June 30, 2019
Governmental funds capital assets:

Land $ 18,368,697 18,368,697
Land improvements 18,647,071 20,437,540
Buildings and improvements 159,351,403 164,291,408
Machinery and equipment 7,211,689 8,052,254
Infrastructure 26,170,919 27,636,850
Construction in progress 34,576,544 21,749,574
Total $ 264,326,323 260,536,323
The major capital asset events during the current fiscal year included equipment and vehicle purchases.
In addition, the completion of significant construction in progress resulted in an increase building and
infrastructure improvements.
Additional information on the Town of Hamden’s capital assets can be found in Note 7 of this report.
Long-term debt: At the end of the current fiscal year, the Town of Hamden had total bonds payable
outstanding of $294,205,000, compared to $298,180,000 at the beginning of the year. 100% of this debt is
backed by the full faith and credit of the Town government. Upon issuance of the municipal bond
insurance policy at the time of delivery of the bonds by Assured Guaranty Municipal Corp., the bonds
were rated “AA” by Standard & Poor’s Global Rating.
The Town has been active in reducing the long-term liabilities derived from other post-employment
obligations by increasing its contributions to the fund. The Town set up and began to fund an irrevocable
trust for future OPEB obligations.
Additional information on the Town’s long-term debt can be found in Note 8.
FY 2020/2021
Over the next several years, the Town of Hamden will continue to face significant budgetary challenges,
chiefly the following: 1) building its general fund balance; 2) improving the funding of its pension plan; and
3) contributing to Other Post-Employment Benefits ("OPEB").
Requests for Information
This financial report is designed to provide a general overview of the Town of Hamden’s finances for all
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Director of
Finance, Hamden Government Center, 2750 Dixwell Avenue, Hamden, Connecticut 06518.
3f
[Intentionally left blank]
TOWN OF HAMDEN, CONNECTICUT EXHIBIT A
STATEMENT OF NET POSITION (DEFICIT)

June 30, 2020
Primary
Government
Governmental
Activities
Assets:
Cash and cash equivalents $ 10,625,156
Investments 31,309,542
Receivables, net 17,782,027
Inventory 21,207
Prepaid expenses 646,508
External balances 1,629,449
Capital assets:
Capital assets, not being depreciated 52,945,241
Capital assets, being depreciated, net 211,381,082
Total assets $ 326,340,212
Deferred outflows of resources:

Pension and other post retirement $ 58,642,748
Liabilities:
Accounts payable and accrued expenses $ 15,343,075
Accrued interest 5,897,171
Payments in advance 1,372,306
Incurred but not reported 8,167,332
Bond and tax anticipation notes 38,500,000
Noncurrent liabilities:
Due within one year 15,040,000
Due in more than one year 1,254,846,635
Total liabilities $ 1,339,166,519
Deferred inflows of resources:

Pension and other post retirement $ 40,686,989
Advance tax collections 153,143
Gain on refunding debt 415,504
Total deferred inflows of resources $ 41,255,636
Net position:
Invested in capital assets, net of related debt $ 71,810,228
Restricted 754,327
Unrestricted (1,068,003,750)
Total net position (deficit) $ (995,439,195)
The notes to the financial statements are an integral part of this statement.
4
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2020
Program
Revenues
Charges for
Functions/programs Expenses Services
Primary government:
Governmental activities:
Public safety 46,467,820 1,853,709
Public works 92,454,745 75,628
Health and welfare 3,057,031 68,017
Culture and recreation 9,560,991 288,998
Education 177,118,258 638,322
Interest on long-term debt 14,303,026
Total governmental activities $ 379,421,531 6,170,907
Total primary government $ 379,421,531 6,170,907
5
EXHIBIT B
Net (Expenses)
Revenue and Changes
in Net Assets
Program Revenues Primary Government
Operating Capital Governmental
Grants and Grants and Activities
Contributions Contributions Total
446,476 (32,766,951)
83,221 (44,530,890)
907,609 3,517,355 (87,954,153)
718,000 (2,271,014)
(9,271,993)
60,232,742 (116,247,194)
(14,303,026)
62,388,048 3,517,355 (307,345,221)
62,388,048 3,517,355 (307,345,221)
General revenues:
Property taxes $ 190,395,341
Grants and contributions not
restricted for specific programs 8,030,645
Investment income 550,941
Other unrestricted income 1,500,189
Total general revenues and transfers $ 200,477,116
Change in net position $ (106,868,105)
Net position, beginning (888,571,090)
Net position, ending $ (995,439,195)
6
TOWN OF HAMDEN, CONNECTICUT EXHIBIT C
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2020
Major Funds
Capital Nonmajor Total
Project Governmental Governmental
General Fund Funds Funds
Assets:
Cash and cash equivalents $ 6,314,431 1,217,383 2,842,775 10,374,589
Investments 19,998,472 11,311,070 31,309,542
Receivables, net 16,913,606 681,151 187,270 17,782,027
Due from other funds 7,574,111 7,309,351 2,551,213 17,434,675
Prepaid expenses 646,508 646,508
Inventories 21,207 21,207
Total assets $ 51,447,128 20,518,955 5,602,465 77,568,548
Liabilities and Fund Balances
Liabilities:
Accounts and other payables $ 10,932,354 3,178,982 762,270 14,873,606
Payments in advance 1,372,306 1,372,306
Due to other funds 8,165,795 4,288,604 12,454,399
Bond and tax anticipation notes 20,000,000 16,500,000 2,000,000 38,500,000
Total liabilities $ 39,098,149 19,678,982 8,423,180 67,200,311
Deferred inflows of resources:

Unavailable revenues $ 14,484,840 14,484,840
Advance tax payments 153,143 153,143
Total deferred inflows of resources $ 14,637,983 - - 14,637,983
Fund balances:
Nonspendable $ 21,207 21,207
Restricted for:
Donor's intentions 743,827 10,500 754,327
Committed for:
Other 839,973 827 840,800
Assigned 1,604,617 1,604,617
Unassigned (3,032,831) (4,457,866) (7,490,697)
Total fund balances $ (2,289,004) 839,973 (2,820,715) (4,269,746)
Total liabilities, deferred inflows of

resources and fund balances $ 51,447,128 20,518,955 5,602,465
Amounts reported for governmental activities in the statement of net assets (Exhibit A) are different because:
Capital assets used in the governmental activities are not financial resources, and therefore, are not
reported in the funds. 264,326,323
Other long-term assets and deferred inflows/outflows of resources are not available to pay for
current period expenditures, and therefore, are deferred in the funds. 32,776,765
Internal service funds are used by management to charge the costs of risk management to individual
funds. The assets and liabilities of the internal service funds are included in the governmental
activities column in the statement of net assets. 11,202,884
Long-term liabilities, including bonds payable, are not due and payable in the current period, and
therefore, are not reported in the funds. (includes $513,964,677 OPEB liability) (1,276,199,310)
Net position (deficit) of governmental activities (Exhibit A) $ (972,163,084)
7
TOWN OF HAMDEN, CONNECTICUT EXHIBIT D
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)

GOVERNMENTAL FUNDS
Major Funds
Nonmajor Total
Capital Governmental Governmental
General Projects Funds Funds
Revenues:
Property taxes and assessments $ 187,504,800 187,504,800
Intergovernmental 56,055,102 3,417,904 13,745,042 73,218,048
Charges for services 6,051,627 793,193 6,844,820
Investment income 550,553 388 550,941
Miscellaneous 1,344,815 199,459 1,544,274
Total revenues $ 251,506,897 3,417,904 14,738,082 269,662,883
Expenditures:
Current:
Public safety 29,757,196 97,085 29,854,281
Public works 12,188,640 703,869 12,892,509
Public health 1,646,512 787,888 2,434,400
Culture and recreation 3,153,456 399,131 3,552,587
Education 111,773,244 13,810,261 125,583,505
Other 68,236,118 401,471 68,637,589
Capital outlay 15,160,474 15,160,474
Debt service 18,278,026 18,278,026
Total expenditures $ 256,514,368 15,160,474 16,199,705 287,874,547
Excess (deficiency) of revenues

over (under) expenditures $ (5,007,471) (11,742,570) (1,461,623) (18,211,664)
Other financing sources (uses):

Transfer from other funds $ 743,827 743,827
Transfer to other funds (743,827) (743,827)
Total other financing sources (uses) $ 743,827 - (743,827) -
Net changes in fund balances $ (4,263,644) (11,742,570) (2,205,450) (18,211,664)
Fund balances (deficits) - beginning 1,974,640 12,582,543 (615,265) 13,941,918
Fund balances (deficits) - ended $ (2,289,004) 839,973 (2,820,715) (4,269,746)
8
TOWN OF HAMDEN, CONNECTICUT EXHIBIT E
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES (DEFICITS) OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Differences in amounts reported for government-wide activities in the Statement of Activities are due to:
Net change in fund balances - total governmental funds (Exhibit D) $ (18,211,664)
Governmental funds report capital outlays as expenditures; however, in

the statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period. 3,790,000
Deferred inflows and outflows of resources previously recognized in the

statement of activities that provided current financial resources in the current year. 10,193,454
The issuance of long-term debt (e.g., bonds, leases) provide current financial
resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net position. Also,
governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related items. (103,390,133)
The net expense of certain activities of internal service funds is reported with
governmental activities. 1,620,581
Change in net position of governmental activities (Exhibit B) $ (105,997,762)
9
TOWN OF HAMDEN, CONNECTICUT EXHIBIT F
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN UNASSIGNED FUND BALANCE -

BUDGETARY BASIS - BUDGET AND ACTUAL - GENERAL FUND
Actual Variance With

Amounts Final Budget
Budgeted Amounts Budgetary Positive/
Original Final Basis (Negative)
Revenues:
Property taxes $ 190,596,439 190,596,439 187,504,800 (3,091,639)
Intergovernmental 31,559,050 31,559,050 32,061,570 502,520
Charges for services 3,749,050 3,749,050 2,750,917 (998,133)
Investment income 496,500 496,500 550,553 54,053
Licenses, permits and fees 4,841,826 4,841,826 3,300,710 (1,541,116)
Other revenues 5,218,750 5,218,750 2,546,695 (2,672,055)
Total revenues $ 236,461,615 236,461,615 228,715,245 (7,746,370)
Expenditures:
Current:
General government $ 11,972,554 11,575,735 11,481,176 (94,559)
Public safety 31,205,947 30,228,609 29,757,196 (471,413)
Public works 11,919,095 12,403,940 12,188,640 (215,300)
Health and welfare 1,854,304 1,659,939 1,646,512 (13,427)
Culture and recreation 3,337,264 3,153,996 3,153,456 (540)
Education 89,394,925 89,394,925 88,981,592 (413,333)
Employee benefits 68,439,500 69,706,445 68,236,119 (1,470,326)
Debt service: -
Principal retirements 1,645,000 1,645,000 1,645,000 -
Interest and other charges 16,693,026 16,693,026 16,633,026 (60,000)
Total expenditures $ 236,461,615 236,461,615 233,722,717 (2,738,898)
Revenues over (under) expenditures $ - - (5,007,472) (5,007,472)
Revenues over expenditures and other

financing sources (uses) $ - - (5,007,472) (5,007,472)
Net change in unassigned fund balance $ (5,007,472)
Unassigned fund balance, July 1, 2019 1,974,640
Unassigned fund balance, June 30, 2020 $ (3,032,832)
10
TOWN OF HAMDEN, CONNECTICUT EXHIBIT G
STATEMENT OF NET POSITION (DEFICIT)

PROPRIETARY FUNDS
June 30, 2020
Governmental
Activities
Internal
Service
Funds
Assets:
Current assets:
Cash and cash equivalents $ 250,567
Total assets $ 250,567
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 469,469
Due to other funds 3,350,827
Total current liabilities $ 3,820,296
Incurred, but not reported claims $ 8,167,332
Total noncurrent liabilities $ 8,167,332
Total liabilities $ 11,987,628
Net position (deficit):

Unrestricted $ (11,737,061)
Total net position (deficit) $ (11,737,061)
11
TOWN OF HAMDEN, CONNECTICUT EXHIBIT H
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION (DEFICIT)

PROPRIETARY FUNDS
Governmental
Activities
Internal
Service
Funds
Operating revenues:
Charges for services $ 24,085,002
Employer's contribution 3,609,443
Total operating revenues $ 27,694,445
Operating expenses:
Claims $ 26,608,041
Total operating expenses $ 26,608,041
Operating income (loss) $ 1,086,404
Change in net fund position $ 1,086,404
Net position (deficit), beginning (12,823,465)
Net position (deficit), ended $ (11,737,061)
12
TOWN OF HAMDEN, CONNECTICUT EXHIBIT I
STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
Governmental
Activities
Internal
Service
Funds
Cash flows from operating activities:
Receipts from customers $ 27,694,445
Payments for benefits (28,527,125)
Internal activity-payments from (to) other funds 1,058,379
Net cash flows from operating activities $ 225,699
Net increase (decrease) in cash and cash equivalents $ 225,699
Cash and cash equivalents, beginning 24,868
Cash and cash equivalents, ended $ 250,567
Reconciliation of operating income (loss) to net cash

provided by (used in) operating activities:
Operating income (loss) $ 1,086,404
Adjustments to reconcile operating loss to net cash provided by

(used in) operating activities:
Changes in assets and liabilities:
Decrease (increase) in due from other funds 1,058,379
Increase (decrease) in accounts payable 286,749
Increase (decrease) in claims incurred but not reported (2,205,833)
Net cash flows from operating activities $ 225,699
13
TOWN OF HAMDEN, CONNECTICUT EXHIBIT J
STATEMENT OF FIDUCIARY NET POSITION (DEFICIT)

FIDUCIARY FUNDS
June 30, 2020
Other Post Private

Employment Purpose
Pension Benefit Trust
Trust Fund Fund Fund Agency
Assets:
Cash and cash equivalents $ 3,489,238 1,323,698 489,716 1,186,115
Investments, fair value 165,358,351
Accounts receivable 68,635
External balances 226,363 77,450
Prepaid expenses
Total assets $ 168,916,224 1,323,698 716,079 1,263,565
Liabilities:
Accounts payble and accrued expenses $ 93,358 27,988
External balances 1,933,262
Other liabilities 924,449
Held for deposit for others 1,263,565
Total liabilities $ 93,358 2,857,711 27,988 1,263,565
Fiduciary net position:

Net position - restricted for pension $ 168,822,866
Net position - restricted for other purposes 688,091
Net position (deficit) (1,534,013)
Total fiduciary net position (deficit) $ 168,822,866 (1,534,013) 688,091 -
14
TOWN OF HAMDEN, CONNECTICUT EXHIBIT K
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION (DEFICIT)

FIDUCIARY FUNDS
Other Post
Employment Private
Pension Benefit Purpose
Trust Funds Fund Trust Funds
Additions:
Contributions:
Town of Hamden $ 19,210,000 16,201,241
Employees 2,069,298 1,523,448
Other 795,403 444,376
Total contributions $ 21,279,298 18,520,092 444,376
Investment earnings:
Net increase in fair value of investments $ 6,884,876
Interest and dividends 2,326,245 8,296 2,497
Less: investment expenses (519,186)
Total investment earnings $ 8,691,935 8,296 2,497
Total additions $ 29,971,233 18,528,388 446,873
Deductions:
Benefits paid to participants $ 28,036,990 17,721,843
Administrative expenses 213,148
Other deductions 386,576
Total deductions $ 28,250,138 17,721,843 386,576
Change in net position $ 1,721,095 806,545 60,297
Net position (deficit), beginning 167,101,771 (2,340,558) 627,794
Net position (deficit), ended $ 168,822,866 (1,534,013) 688,091
15
NOTES TO THE FINANCIAL STATEMENTS

June 30, 2020
Note 1 - Summary of Significant Accounting Policies
Reporting entity
The Town of Hamden, Connecticut (the “Town”) was founded in 1664 and incorporated as a
Town in 1786. The Town covers an area of 33 square miles, and is located approximately 70
miles northeast of New York City and 30 miles southwest of Hartford, Connecticut.
The Town is a municipal corporation governed under a Council/Mayor form of government and
provides a full range of services including public safety, roads, sanitation, health, social
services, culture and recreation, education, planning and zoning, and general administrative
services to its residents.
Measurement focus, basis of accounting and financial statement presentation
The financial statements of the Town have been prepared in conformity with accounting
principles generally accepted in the United States of America as applied to government units.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting board
for governmental accounting financial reporting principles. These principles require that the
Town report government-wide and fund financial statements, which are described below.
Government-wide financial statements
The government-wide financial statements (i.e., the statement of net assets and the statement
of changes in net assets) report information on all of the non-fiduciary activities of the primary
government. Government activities, which are normally supported by taxes and
intergovernmental revenues, are reported separately than business-type activities, which rely to
a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment of, are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. Program revenues include (1) charges to
customers or applicants who purchase, use or directly benefit from goods, services or privileges
provided by a given function or segment and (2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are proprietary fund and fiduciary
fund financial statements. Under this method, revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenues as soon as all eligibility requirements imposed by the provider have been met.
As a general rule, the effect of inter-fund activity, or internal balances, has been eliminated from
the government-wide financial statements. Exceptions to this rule are charges between the
business-type funds and the various other functions of the Town. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions.
16

June 30, 2020
Fund financial statements
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds even though the later are excluded from the government-wide financial
statements. Major individual governmental funds are reported as separate columns in the fund
financial statements.
The governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available
when they are collectible within the current period or soon enough thereafter to pay liabilities of
the current period. Expenditures are generally recorded when a liability has occurred, as under
accrual accounting. However, expenditures related to long-term liabilities, such as debt service
payments and compensated absences, are recorded only when payment is due.
Property taxes are levied on all taxable assessed property on the grand list of October 1 prior to
the beginning of the fiscal year. Real estate taxes are payable in two installments (July 1 and
January 1). Personal property taxes are payable annually (July 1) and motor vehicle taxes are
due in one single payment on July 1. Liens are filed on delinquent real estate taxes within one
year. Revenues from property taxes are recognized when they become available. Available
means due, or past due, and receivable within the current period or expected to be collected
soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the
Town considers property tax revenue to be available if they are collected within 60 days of the
end of the fiscal year.
Those revenues susceptible to accrual are property taxes, special assessments and interest
revenue. Fines, permits and charges for services are not susceptible to accrual because
generally they are not measurable until received in cash.
Intergovernmental revenue grants and similar items are recognized as soon as all eligible
requirements imposed by the provider have been met and are collected soon enough to pay
liabilities of the current period. For this purpose, grants may be recognized and received after
60 days of the fiscal year end.
The Town reports the following major governmental funds:
The general fund is the general operating fund of the Town’s government. All
unrestricted resources, except those required to be accounted for in another fund, are
accounted for in this fund. From this fund are paid general operating expenditures, fixed
charges, principal and interest on long-term debt and capital improvement costs of the
Town, which were not paid through a special fund.
The capital projects fund is used to account for resources used for capital
expenditures or for the acquisition or construction of capital facilities, improvements and
equipment. Most of the capital outlays are financed by the issuance of general obligation
bonds and capital grants. Other sources include current tax revenues and low interest
state loans.
17

June 30, 2020
The other governmental funds of the Town are considered nonmajor and are as follows:
The special revenue funds are used to account for and report the proceeds of specific
revenue sources that are restricted or committed to expenditure for specified purposes
other than debt service or capital projects.
The capital project funds are used to account for and report financial resources that
are restricted, committed or assigned to expenditure for capital outlay.
The permanent fund is used to account for assets which are committed to specific
purposes.
Additionally, the Town reports the following fund types:
The internal service funds account for employee medical and workers' compensation
insurance provided to employees of the Town.
The private-purpose trust fund is used to account for assets held by the Town in a
trustee capacity or as an agent on behalf of others.
The agency funds account for monies held as a custodian for outside groups and
agencies such as student activity funds, senior trip funds and performance bonds.
The pension trust and other post employment benefit funds are used to account for
the accumulation of resources to be used for retirement benefits.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and the enterprise funds reported in the
proprietary fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments also have
the option of following subsequent private-sector guidance for their government-wide and
propriety fund financial statements subject to this same limitation. The Town has elected not to
follow subsequent private-sector guidance.
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services in connection with a
proprietary fund’s principal ongoing operations.
The principal operating revenues of the proprietary funds are charges to customers for services.
Operating expenses for the internal service funds include the cost of providing and
administering the employee benefits. All revenues and expenses not meeting this definition are
reported as non-operating revenues and expenses.
Assets, liabilities and net assets or equity
Cash and cash equivalents
The Town considers cash on hand, deposits and short-term investments, with an original
maturity of three months or less, to be cash and cash equivalents.
18

June 30, 2020
Investments
Investments are stated at the fair value using quoted market prices. The Connecticut State
Treasurer’s Short-Term Investment Fund is an investment pool managed by the State of
Connecticut Office of the State Treasurer. Investments must be made in instruments authorized
by Connecticut General Statutes 3-27c through 3-27e. Investment guidelines are adopted by the
State Treasurer. The fair value of the position in the pool is the same as the value of the pool
shares.
Inventories
Inventories are stated at the lower of cost or market using the consumption method on the first-
in, first-out basis for governmental fund types.
Receivables and payables
Activities between funds that are representative of lending or borrowing arrangements

outstanding at the end of the fiscal year are referred to as either “due to/from other funds”
(current portion of interfund loans) or “advances to/from other funds” (noncurrent portion of
interfund loans). Any residual balances outstanding between governmental activities and
business-type activities are reported in the government-wide financial statements as “internal
balances”.
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable funds to indicate that they are not available for
appropriation and are not expendable as financial resources.
All accounts and property tax receivables are shown net of an allowance for uncollectible
accounts. Trade account receivables allowance for uncollectible accounts is estimated based
on the inherent risk associated with the accounts.
Capital assets
Capital assets, which include property, plant and equipment and infrastructure assets (e.g.,
roads, bridges, sidewalks and similar items) are reported in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial individual
cost of more than $10,000 and an estimated useful life in excess of two years.
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair value at the date of
donation. The cost of normal maintenance and repairs that do not add to the value of the net
assets or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of the business-type activities is
included as part of the capitalized value of the assets constructed.
19

June 30, 2020
Property, plant and equipment of the Town are depreciated using the straight-line method over
the following estimated useful lives:
Asset Years
Land improvements 20
Buildings and improvements 25-50
Infrastructure 10-65
Machinery and equipment 5-20
Capital assets are reported as expenditures and no depreciation expense is reported in the
governmental fund financial statements.
Compensated absences
Under the terms of its various union contracts, Town and Board of Education employees are
granted vacation and sick time in varying amounts based on length of service. Certain
employees may also carry over a limited number of unused vacation days to subsequent years
based on the terms of an employment or union contract. In the event of termination, these
employees are reimbursed for accumulated vacation. The Town recognizes a liability in the
government-wide financial statements for the vested portion, as well as the unvested portion to
the extent expected to be paid, as compensated absences.
Deferred outflows/inflows of resources
The statement of net position (Exhibit A) reports a separate section for deferred outflows of
resources. This separate financial element represents a consumption of net position that
applies to a future period or periods and so will not be recognized as an outflow of resources
until a future period. The Town reports borrowing costs as well as a deferred charge on
refunding as a result from the differences in the carrying value of refunded debt and its
reacquisition price. These amounts are deferred and amortized over the shorter of the life of the
related debt. A deferred outflow of resources related to pension results from differences
between expected and actual experience, changes in assumptions or other inputs. These
amounts are deferred and will be included as pension expense in a systematic and rational
manner.
The statement of net position (Exhibit A) and the balance sheet for the government funds
(Exhibit C) report a separate section for deferred inflows of resources. This separate financial
element represents the addition of net position or fund balance that applies to future periods and
will not be recognized as revenue until that time. The Town reports advance tax collections in
the statement of net position and the balance sheet for the government funds. The Town
reports a deferred inflow of resources related to pensions in the statement of net position.
A deferred inflow of resources related to pension results from differences between expected and
actual experience and changes in assumptions. These amounts are deferred and included in
pension expense in a systematic and rational manner. The government funds report
unavailable revenue, which arises only under the modified accrual basis of accounting because
it does not meet the measurable and available criteria for the recognition in the current period.
20

June 30, 2020
Net pension liability
The net pension liability is measured as the portion of the actuarial present value of projected
benefits that is attributed to past periods of employee service (total pension liability), net of the
pension plan’s fiduciary net position. The pension plan’s fiduciary net position is determined
using the same valuation methods that are used by the pension plan for purposes of preparing
its statement of fiduciary net position. The net pension liability is measured as of a date
(measurement date) no earlier than the end of the employer’s prior fiscal year, consistently
applied from period to period.
Net OPEB liability
The net OPEB liability is measured as the portion of the present value of projected benefit
payments to be provided to current active and inactive employees that is attributed to those
employees’ past periods of service (total OPEB liability), less the amount of the OPEB plan’s
fiduciary net position. The OPEB plan’s fiduciary net position is determined using the same
valuation methods that are used by the OPEB plan for purposes of preparing its statement of
fiduciary net position. The net OPEB liability is measured as of a date (measurement date) no
earlier than the end of the employer’s prior fiscal year, consistently applied from period to
period.
Long-term obligations
In the government-wide financial statements long-term debt and other long-term obligations are
reported as liabilities in the applicable governmental activities or proprietary fund type statement
of net position. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the terms of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of the
debt issued is reported as other financial sources. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as debt service expenditures.
Fund equity and net position
In the government-wide financial statements, net position is classified in the following

categories:
Investment in capital assets, net of related debt - This category groups all capital
assets, including infrastructure, into one component of net position. Accumulated
depreciation and the outstanding balances of debt that are attributable to the acquisition,
construction or improvement of these assets reduce this category.
21

June 30, 2020
The restricted net position represent amounts of external restrictions imposed by

creditors, grantors, contributors and laws or regulations of other governments and
restrictions imposed by law through constitutional provisions or enabling legislation.
The unrestricted net position represents the net position of the Town which is not
restricted for any project or other purpose.
In the fund financial statements, fund balances of governmental funds are classified into five
separate categories. The five categories and their general meanings are as follows:
The nonspendable fund balances are those net assets that are not in expendable form
or are legally or contractually required to be maintained.
The restricted fund balances are defined in the same manner as for the restricted
government-wide net assets.
The committed fund balances are those balances that can only be used for a specific
purpose as a result of constraints imposed by formal action of the government’s highest
level of decision-making authority. For the Town of Hamden, that was considered to be
the Board of Aldermen.
Assigned fund balances are amounts that are contained by the government’s intent to
be used as a specific purpose.
Unassigned fund balance is defined as the residual classification for the General Fund
and includes those remaining balances that cannot be categorized in the above four
categories.
When both restricted and unrestricted amounts are available for use, it is the Town's practice to
use restricted resources first. Additionally, the Town would first use committed, then assigned,
and lastly unassigned.
Fair value of financial instruments
In accordance with GASB 72, the Town is required to measure the fair value of its assets and
liabilities under a three-level hierarchy, as follows:
Level 1: Quoted market prices for identical assets or liabilities to which an entity has
access to at the measurement date.
Level 2: Inputs and information other than quoted market indices included in Level 1
that are observable for the asset or liability, either directly or indirectly. Level 2
inputs include:
a. Quoted prices for similar assets or liabilities in active markets;
b. Quoted prices for identical or similar assets in markets that are not active;
c. Observable inputs other than quoted prices for the asset or liability;
d. Inputs derived principally from, or corroborated by, observable market data
by correlation or by other means.
Level 3: Unobservable inputs for the asset or liability. Unobservable inputs should be
used to measure the fair value to the extent that observable inputs are not
available.
22

June 30, 2020
Observable inputs reflect the assumptions market participants would use in pricing the
asset or liability developed from sources independent of the reporting entity; and
unobservable inputs reflect the reporting entity’s own assumptions about the
assumptions market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances.
Investments are carried at fair value based on quoted market prices and net asset value
and are presented in Note 4 and Note 9.
Note 2 - Budgets and Budgetary Accounting
General Fund
The budgetary basis of accounting and the Town’s general budget policies are as follows:
A. Not later than 105 days prior to the beginning of the fiscal year, the Mayor
prepares and submits to the Legislative Council an annual budget based on
detailed estimated revenues and expenditures for the Town.
B. The Legislative Council must hold public hearings not later than 60 days before
the beginning of the fiscal year, at which time taxpayers’ comments are
obtained.
C. Not later than 45 days prior to the beginning of the fiscal year, the Legislative
Council must adopt the budget.
D. With approval from the Mayor, the Legislative Council may transfer any
unencumbered appropriation from one department, commission, board or office
to another. Any additional appropriation over and above the budget total may be
made by resolution of the Legislative Council upon recommendation of the
Mayor and certification from the Director of Finance that there is an
unappropriated, unencumbered General Fund cash balance available to meet
the additional appropriation. Unencumbered appropriations lapse at year-end.
E. Formal budgetary integration is employed as a management control device

during the year for the General Fund. Only the General Fund is required to be
budgeted.
F. The legal level of control is at the department level.
G. Encumbrances are recognized as a valid and proper charge against a budget

issued appropriation in the year in which the purchase order, contract or other
commitment is issued and, accordingly encumbrances outstanding at year-end
are reflected in budgetary reports as expenditures of the current year. If an
appropriation is not encumbered, it lapses at year-end and may not be used by
the department.
H. Classifications of certain revenues and expenditures under accounting principles

generally accepted in the United States of America differ from classifications
utilized for budgetary purposes.
23

June 30, 2020
A reconciliation of General Fund operations and fund balance presented on a budgetary basis
to the amounts presented in accordance with accounting principles generally accepted in the
United States of America (GAAP) is as follows:
Expenditures
and
Revenues Encumbrances
Balance, budgetary basis $ 228,715,245 233,722,717
State Teachers' Retirement “on-behalf”

payment, not recognized for budgetary
purposes 23,993,532 23,993,532
Reclassify Education reimbursements to Town

for indirect costs (1,201,880) (1,201,880)
Balance, GAAP basis $ 251,506,897 256,514,369
Special Revenue Funds
The Town does not have legally adopted annual budgets for the Special Revenue Funds.
Budgets for the various special revenue funds which are utilized to account for specific grant
programs are established in accordance with the requirements of the grantor agencies. Such
budgets carry over until completion of the grants and, therefore, may comprise more than one
fiscal year.
Capital Projects Funds
Legal authorization for expenditures of the Capital Projects Funds is provided by the related
bond ordinances and/or intergovernmental grant agreements or Connecticut State Statutes.
Capital appropriations do not lapse until the purpose for which the appropriation was made has
been accomplished or abandoned.
Note 3 - Reconciliation of Government-Wide and Fund Financial Statements
Explanation of certain differences between the government fund balance sheet and the
government-wide statement of net position
The details of the components included in Exhibit C are as follows:
Capitalized assets are expensed in the fund financial statements in the period the expense is
incurred while the expense is incurred over the useful life of the related asset in the
government-wide financial statements:
Land $ 18,368,697
Construction in progress 34,576,544
Net capital assets being depreciated 211,381,082
Net adjustment to increase fund balance to arrive
at net assets of government activities $ 264,326,323
24

June 30, 2020
Long-term liabilities, including bonds payable, are not due and payable in the current period
and, therefore, are not reported in the funds. The detail of this difference is as follows:
Long-term debt $ (294,205,000)

Deferred saving on debt issuance (5,798,420)
Net obligations on retirement plans (961,947,385)
Compensated absences (6,874,951)
Heart and hypertension (940,879)
Claims and judgments (120,000)
Accrued interest on debt (5,897,171)
Gain on refunding (415,504)
Net adjustment to reduce fund balance to arrive
at net assets of government activities $ (1,276,199,310)
Other long-term assets and deferred inflows and outflows are not available to pay for
current period expenditures and, therefore, are deferred in the funds. This amount includes the
following:
Delinquent property tax and interest $ 14,821,006

Deferred inflows/outflows related to pension and OPEB 17,955,759
Net adjustment to increase fund balance to arrive at
net assets of government activities $ 32,776,765
Explanation of certain differences between the governmental fund statement of revenues,

expenditures and changes in fund balance and the government-wide statement of activities
The governmental fund statement of revenues, expenditures and changes in fund balances
includes reconciliation between net changes in fund balances - total governmental funds and
changes in net position of governmental activities as reported in the government-wide statement
of activities. One element of that reconciliation explains that "governmental funds report capital
outlays as expenditures. However, in the statement of activities the cost of those assets is
allocated over their estimated useful lives and reported as depreciation expense." The details
of this difference are as follows:
Acquisitions $ 14,577,300
Depreciation (10,787,300)
Net adjustment to increase net changes in fund
balances to arrive at changes in net assets of
governmental activities $ 3,790,000
25

June 30, 2020
Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also, governmental funds report the
effect of issuance costs, premiums, discounts and similar items when debt is first issued,
whereas, these amounts are deferred and amortized in the statement of activities." The details
of this difference are as follows:
Payments of debt $ 3,975,000

Amortization of bond premiums and savings 758,407
Net change in net obligation on retirement plans and OPEB (108,321,432)
Net change in other long-term liabilities 1,610,622
Amortization of savings on refunding 48,554
Accrued interest on debt (1,461,284)
Net adjustment to reduce net changes in fund
balances to arrive at changes in net position of
governmental activities $ (103,390,133)
Note 4 - Deposits and Investments
The Town’s deposits and investments are presented in the accompanying balance sheets as
follows:
Deposit Investments Total

Cash and cash equivalents:
Governmental funds $ 10,374,589 10,374,589
Internal service funds 250,567 250,567
Fiduciary funds 6,488,767 6,488,767
Investments:
Government funds 31,309,078 464 31,309,542
Fiduciary funds (pension) 165,358,351 165,358,351
Total deposits and investments $ 48,423,001 165,358,815 213,781,816
Deposits
The carrying amounts of the Town’s deposits at June 30, 2020 consist of the following:
Bank deposit accounts $ 48,422,551

Cash on hand 450
Total deposits $ 48,423,001
26

June 30, 2020
Custodial credit risk
As of June 30, 2020, the carrying amount of the Town’s deposits had bank balances of
approximately $48,502,727. The amount of the bank balance covered under federal depository
insurance was approximately $793,000. The remaining deposits were uninsured, however,
provisions of the Connecticut General Statutes provide for protection against loss in excess of
deposit insurance by requiring all qualified public depositories to maintain segregated collateral
for public deposits. As of June 30, 2020 approximately $4,700,000 of uninsured deposits were
collateralized under the provision.
Investments
As of June 30, 2020, the Town held the following investments:

Weighted
Fair Average
Value to
Hierarchy Maturity
Investment Type Fund Fair Value Level (years)
State investment fund General fund $ 464 1 .02
Equity real estate Trust funds 32,078,043 n/a n/a
Common stock Trust funds 41,768,004 1 n/a
Mutual funds Trust funds 91,512,304 1 n/a
Total Investments $ 165,358,815
Interest rate risk
Interest rate risk is the risk that changes in the market interest rates which will adversely affect
the fair value of an investment. The Town has no formal policy specifically related to interest
rate risk. The Town minimizes its exposure to interest rate risk by investing its operating funds
in short-term investments.
Credit risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. It is the Town’s policy to invest only in securities that
meet the ratings requirements set by General State Statute Chapter 112, Section 7-400 as
follows:
Investment policies
The Town maintains an investment policy, which excludes certain private purpose fund
investments. The Town’s investment policy strictly prohibits all funds to invest in investments
not included in Chapter 12, Section 7-400 of the State Connecticut’s General Statutes.
Investments related to pension are discussed further in Note 9 of the notes to the financial
statements.
27

June 30, 2020
Note 5 - Receivables, Payables, and Unearned or Unavailable Funds
The receivables as of June 30, 2020 for the Town’s individual major funds and non-major,
internal service and fiduciary funds in the aggregate, including the applicable allowance for
uncollectible accounts are as follows:
General Non-major
Fund Capital Funds Total
Property taxes $ 15,370,270 15,370,270
Intergovernmental 681,151 187,270 868,421
Accounts 1,543,336 1,543,336
Net total receivables $ 16,913,606 681,151 187,270 17,782,027
Deferred payments and unavailable receipts
Governmental funds did not recognize revenue in connection with receivables for revenue that
are not considered to be available to liquidate liabilities in the current period. Governmental
funds also did not recognize revenue recognition in connection with resources that have been
received but not yet earned. At the end of the fiscal year the components of receipts not
recognized and unearned revenues reported in the governmental fund were as follows:
Unavailable Unearned Total

General Fund:
Delinquent property taxes $ 13,956,700 13,956,700
Delinquent accounts 528,140 528,140
Advance payments on taxes 153,143 153,143
Non-major Funds:
Advanced payments on grants 1,372,306 1,372,306
Total $ 14,484,840 1,525,449 16,010,289
Payables
Payables as of June 30, 2020 for the Town’s individual major funds and non-major funds were
as follows:
Vendors Payroll Total

General fund $ 4,646,204 6,286,150 10,932,354
Capital projects fund 3,178,982 3,178,982
Non-major funds 762,270 762,270
Total governmental funds $ 8,587,456 6,286,150 14,873,606
28

June 30, 2020
Temporary notes payables
Bond anticipation notes

The Town uses short-term notes payable in anticipation of bond-issuances to provide interim
funding for various capital projects. Activity for the current fiscal year was as follows:
Beginning
Balance Borrowings Repayments Ending Balance
August 2017 BAN $ 9,610,000 9,610,000
August 2018 BAN 2,000,000 2,000,000
August 2019 BAN 18,500,000 18,500,000
Total governmental funds $ 11,610,000 18,500,000 11,610,000 18,500,000
Tax anticipation notes

The Town has entered into a Tax Anticipation Note (TAN) on June 25, 2020 with Webster Bank
to provide the Town with $20,000,000 working capital reserve due to the implementation of the
deferment program and the low interest rate program under the State of Connecticut’s
Executive order No. 7S.
Beginning
Balance Borrowings Repayments Ending Balance
June 2020 TAN $ - 20,000,000 20,000,000
Total governmental funds $ - 20,000,000 - 20,000,000
Note 6 - Inter-fund Receivables, Payables and Transfers
Inter-funds receivables and payables
Inter-fund receivables and payables at June 30, 2020 consisted of the following:
Fund Receivable Payable

Governmental Funds:
General fund $ 7,574,111 8,165,795
Capital projects 7,309,351
Nonmajor 2,551,213 4,288,604
Internal services 3,350,827
Total governmental funds $ 17,434,675 15,805,226
Other post employee benefits 1,933,262

Private purpose trusts 226,363
Agency 77,450
$ 17,738,488 17,738,488
29

June 30, 2020
Inter-fund transfers
Remaining funds in closed capital projects, which were the result of capital expenditures being
less than originally estimated, were returned to the general fund. This amount was $178,238.
Note 7 - Capital Assets
Capital assets activity for the year ended June 30, 2020 was as follows:
Beginning Ending
Balance Additions Disposals Balance
Capital assets not being depreciated:
Land $ 18,368,697 18,368,697
Construction in progress 21,749,574 12,826,970 34,576,544
Total capital assets, not being deprec. $ 40,118,271 12,826,970 - 52,945,241
Capital assets being depreciated:

Land improvements $ 35,947,568 35,947,568
Buildings and improvements 248,192,369 37,536 248,229,905
Machinery and equipment 25,717,219 1,712,794 27,430,013
Infrastructure 116,920,714 116,920,714
Total capital assets being depreciated $ 426,777,870 1,750,330 - 428,528,200
Less: accumulated depreciation:

Land improvements $ 15,510,028 1,790,469 17,300,497
Buildings and improvements 83,900,961 4,977,541 88,878,502
Machinery and equipment 17,664,965 2,553,359 20,218,324
Infrastructure 89,283,864 1,465,931 90,749,795
Total accumulated depreciation $ 206,359,818 10,787,300 - 217,147,118
Net capital assets, being depreciated $ 220,418,052 (9,036,970) - 211,381,082
Total capital assets, governmental $ 260,536,323 3,790,000 - 264,326,323
Depreciation expense was charged to functions of the primary government as follows:
General government $ 1,515,204
Education 3,101,732
Public safety 975,380
Public works 4,792,743
Health and welfare 37,769
Community services 364,472
Total depreciation expense-
governmental activities $ 10,787,300
30

June 30, 2020
Note 8 - Long-Term Liabilities
Long-term debt liabilities activity for the year ended June 30, 2020 was as follows:
Beginning Due In
Balance Additions Reductions Balance One Year
Long-term debt:
General obligation bonds $ 225,595,000 3,190,000 222,405,000 12,190,000
G.O. refunding bonds 72,585,000 785,000 71,800,000 2,850,000
Total long-term debt $ 298,180,000 - 3,975,000 294,205,000 15,040,000
Deferred amount on:

Bond premium 6,556,823 758,403 5,798,420
Net long-term debt $ 304,736,823 - 4,733,403 300,003,420 15,040,000
Other long-term
liabilities:
Net pension liability 297,298,110 1,040,827 298,338,937
Net pension liability -
CMERS 31,324,752 5,178,185 36,502,937
Net OPEB liability 525,003,091 102,102,420 627,105,511
Compensated absences 6,472,958 401,993 6,874,951
Claims payable 150,000 30,000 120,000
Heart and hypertension 2,923,094 1,982,215 940,879
Landfill 400 400 -
Total governmental
activities long-term
liabilities $ 1,167,909,228 108,723,425 6,746,018 1,269,886,635 15,040,000
General obligation bonds
The Town issues general obligation bonds to provide funds for the acquisition and construction
of major capital facilities and the funding of the pension. General obligation bonds have been
issued and are direct obligations and pledge the good faith and credit of the government. As of
June 30, 2020, the outstanding general obligation bonded indebtedness of the Town was as
follows:
General Refunding
$4,000,000 G.O.B. taxable 2009B, issue of 8/15/2009, due
8/15/2024, interest at 5.0% to 5.5%, annual
principal payments of $265,000 $ 1,325,000
$4,950,000 G.O.B. refunding 2010A, issue of 8/15/2010, due

principal payments of $400,000 400,000
$7,415,000 G.O.B. 2010B refunding, issue of 8/15/2010, due

principal payments of $630,000 630,000
$34,000,000 G.O.B. 2011A, issue of 8/24/2011, due

principal payments of $1,750,000 to $10,500,000 15,750,000
(Continued)
31

June 30, 2020
(Continued) General Refunding
$24,705,000 G.O.B. taxable 2012, issue of 8/15/2012, due

principal payments of $1,235,000 10,865,000
$29,415,000 G.O.B. refunding 2013, issue of 5/2/2013, due

8/25/2025, interest at 5.0%, annual
$26,405,000 G.O.B. 2015A, issue of 8/24/2011, due

$15,545,000 G.O.B. 2015, issue of 5/2/2013, due

$125,000,000 G.O.B. pension funding bond 2015, issue

of 3/10/2015, due 8/15/2044, interest at 4.0% to 5.2%, annual
$17,960,000 G.O.B. 2015, issue of 8/15/15, due

$28,535,000 G.O.B. 2016, issue of 8/15/2016, due

$13,205,000 G.O.B. 2017, issue of 7/19/2017, due

principal payments of $370,000 to $4,835,000 12,450,000
$11,510,000 G.O.B. 2017, issue of 8/10/2017, due

principal payments of $580,000 to $575,000 9,775,000
$10,605,000 G.O.B. 2018A, issue of 7/17/18, due

$33,660,000 G.O.B. refunding 2018B, issue of 8/10/2017, due

$11,400,000 G.O.B. 2018, issue of 6/19/2018, due

principal payments of $600,000 10,605,000
Total general obligation bonds $ 222,405,000 71,800,000
32

June 30, 2020
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ended, Governmental Activity

June 30 Principal Interest
2021 $ 8,360,000 13,522,175
2022 11,095,000 13,072,010
2023 13,825,000 12,499,906
2024 16,235,000 11,825,666
2025-2029 16,500,000 11,123,220
2030-2034 95,980,000 43,765,870
2035-2039 61,610,000 24,264,738
2040-2044 35,185,000 13,455,119
2045 35,415,000 4,795,570
Total $ 294,205,000 148,324,274
Bonds authorized but unissued
Under regulations issued by the Internal Revenue Service, effective March 2, 1992, in order for
capital projects to be funded through tax-exempt debt, all projects must be appropriated and
designated as being funded through debt prior to any expenditure on these projects.
The Town has authorized but unissued bonds relating to capital projects at June 30, 2020, as
follows:
General purpose $ 50,518,321
Schools 74,746,000
Total $ 125,264,321
Legal debt limit
The Town’s indebtedness (including authorized but not unissued bonds), net of principal
reimbursements expected from the state, does not exceed the legal debt limitation as required
by the Connecticut General Statutes as reflected in the following schedule:
Category Debt Limit Indebtedness Balance

General $ 421,535,171 189,758,821 231,776,350
Pension 562,046,895 113,800,000 448,246,895
Schools 843,070,343 115,910,500 727,159,843
Sewers 702,558,619 - 702,558,619
Urban Development 608,884,136 - 608,884,136
The total overall statutory debt limit for the Town is equal to seven times annual receipts from
taxation, or $1,311,442,755.
33

June 30, 2020
Conduit debt
Conduit debt obligations are certain limited-obligation revenue bonds, certificates of

participation, or similar debt instruments issued by a state or local governmental entity for the
express purpose of providing capital financing for a specific third party that is not a part of the
issuer’s financial reporting entity. Although conduit debt obligations bear the name of the
governmental issuer, the issuer has no obligation for such debt beyond the resources provided
by a lease or loan with the third party on whose behalf they are issued.
The Town has issued revenue bonds, the proceeds of which will be used for financing the
design and construction of the Whitney Center Project. The bonds are secured by the property
financed and are payable from the Whitney Center operations. Accordingly, the bonds were not
reported in the general purpose financial statements.
Note 9 - Employee Retirement Systems
Town Retirement Plan
The Town of Hamden is the administrator of a single employer, contributory public employee
retirement system (PERS) established and administered by a Board of Trustees to provide
pension benefits for its employees. The Retirement Plan provides retirement, disability, and
death benefits through a single employer, contributory defined benefit plan to plan members and
beneficiaries. The Plan issues a separate, stand-alone audited financial report. The report can
be obtained upon request.
The PERS is a contributory defined benefit plan. Substantially all full-time employees of the
Town are eligible to participate. Participants in the State Teachers’ Retirement System, part-
time Town employees and officials elected by popular vote are excluded.
The Plan provides retirement benefits, disability retirement benefits and pre-retirement and post-
retirement death benefits. The Plan includes specific benefit provisions, vesting rules and
employee contribution rules for the following employee classifications: guardian employees and
service employees. Guardian employees are defined as full-time employees who are members
of the police or fire department. All other town employees are considered to be Service
employees. The plan provides for an annual cost of living adjustment to pension benefit
payments based on changes in the consumer pricing index.
Members begin to vest their retirement benefits after completion of at least 10 years of credited
service, and full vesting is attained after completing 15 years of service.
Guardian employees (members of the police and fire departments) hired after July 1, 2006
participate in the Connecticut Municipal Employees’ Retirement System (CMERS) and are not
eligible to participate in the Plan. Similarly, Service employees hired after July 1, 2007
participate in CMERS and are not eligible for the pension plan.
34

June 30, 2020
Guardian employees receive normal pension benefits upon the earlier of age 60 or completion
of 20 years of credited service, equal to 2.5% of average annual compensation per year of
credit service for the first 20 years, plus 3% per year of credited service for the next 5 years,
plus 2% per year in excess of 25 years, to a maximum of 35 years. Disability benefits are
provided as the greater of 30% of average annual compensation if hired on or after July 1, 1981,
25% if hired on or after July 1, 1987, or normal pension accrued. Guardian employees hired
prior to July 1, 1981 have a minimum benefit of 50% of average annual compensation.
Service employees receive normal pension benefits, upon the earlier of age 65, the completion
of 30 years of credited service, or age 55 and completion of 20 years of credited service, equal
to 2.5% of average annual compensation per year of credited service for the first 20 years, plus
2% in excess of 20 years to a maximum of 35 years. No employee shall receive more than 85%
except for employees with the required years of service, who were hired before July 1, 1978. As
of June 30, 2008, such employee’s benefits are frozen. Disability benefits are provided as the
greater of 50% of average annual compensation or the employee’s normal retirement pension.
Employees are 100% vested in their contributions to the Plan. If a member leaves employment
prior to becoming eligible for benefits, all accumulated employee contributions will be paid to the
member in the form of a lump sum payment with interest calculated at 5% per year.
The Plan may be discontinued or amended in any respect at any time by action of the Town’s
Legislative Council, subject to applicable general laws and special acts of the State of
Connecticut provided that no such discontinuance or amendment shall adversely affect the right
of members or their beneficiaries which had become fully vested at the date of discontinuance
or amendment.
Membership in the plans consisted of the following at July 1, 2019, the date of the last actuarial
valuation:
Retirees and beneficiaries currently receiving

benefits 753
Terminated plan members entitled to, but not yet
receiving benefits 26
Active plan members 325
Total 1,104
Summary of significant accounting policies
Basis of accounting
The Plan’s financial statements are prepared using the accrual basis of accounting for the
defined benefit pension plan. Plan member contributions are recognized in the period in which
the contributions are due. Employer contributions are recognized when due and a formal
commitment to provide the contributions has been made. Benefits and refunds are recognized
when due and payable in accordance with the terms of the Plan. Purchases and sales of
securities are recorded on a trade-date basis. Interest income is recorded as earned.
Dividends are recorded on the ex-dividend date.
35

June 30, 2020
Method used to value investments
Investments are stated at current market values, based on quoted market prices, as
represented by Wells Fargo Institutional Retirement and Trust (Wells Fargo Bank, N.A.), the
investment custodian. Shares of mutual funds are valued at quoted market prices, which
represent the net asset value of shares held by the Plan at year end. Sentinel Real Estate Fund
and U.S. Real Estate Investment Fund, LLC engage independent appraisers to value 100% of
the real estate owned for at least 12 months, at various times throughout the year. Securities
traded on a national exchange are valued at the last reported sales price.
Administrative expenses
The Town, as Plan sponsor, pays additional significant costs of Plan administration and office
expenses.
Funding policy
The Town of Hamden makes contributions to the Plan, at the discretion of the Town’s
Legislative Council. Contributions are made in accordance with Public Act 18-169. The 2018
update to Connecticut’s Pension Statute allowed Hamden to contribute less than 100% of the
actuarially recommended contribution through 2020. The Town will be required to contribute
100% of the actuarially recommended contribution annually beginning with the fiscal year
ending June 30, 2021.
Plan provisions include mandatory employee contributions by service employees and guardian
employees. All employee contributions are made on a pre-tax basis. These contributions are
negotiated as part of the collective bargaining agreements.
Service employees contribute 8.00% of their annual compensation increasing to 8.50% effective
July 1, 2018. Guardian employees contribute 8.50% of compensation. Board of Education
employees contribute 8.00% of their annual compensation increasing to 8.50% effective
September 1, 2018. Covered salary includes regular payroll, vacation, holiday, personal,
longevity and sick time payroll.
Investments
Investment policy
The pension plan's policy in regard to allocation of invested assets is established and may be
amended by the PERS Board by a majority vote of its members. It is the policy of the PERS
Board to pursue an investment strategy that reduces risk through the prudent diversification of
the portfolio across a broad selection of distinct asset classes. These assets must be invested
with the care, skill, and diligence that a prudent person acting in this capacity would exercise to
comply with all objects outlined herein, the Investment Advisors Act of 1940 and all other
governing statutes.
Based on the recommendations of the Plan’s investment advisors, the Board has established
reasonable guidelines for each asset class, specifying acceptable and/or prohibited
investments, limits on asset and asset class exposures, risk constraints, and investment return
36

June 30, 2020
objectives. The Board will from time-to-time elect to invest in commingled funds, recognizing
the benefits of such funds as investment vehicles, the ability to diversify more extensively than
in small, direct investment accounts and the lower costs that are generally associated with these
funds.
Investment management of the assets of the Town shall be in accordance with the following
asset allocation guidelines:
Asset Class Minimum Maximum Preferred

Equities:
Large cap 10% 35% 25%
Small cap 0% 10% 5%
Mid cap 0% 10% 5%
International 5% 15% 10%
Fixed income 30% 50% 40%
Real estate investment trusts 10% 20% 15%
Cash and equivalents minimal
Foreign currency risk
Exposure to foreign currency risk results from investments in foreign currency-denominated

securities. The Plan has invested in two international equity funds. Under normal
circumstances, the funds’ policy is to invest at least 80% of the value of its net assets, plus
borrowings for investment purposes, in equity securities issued by companies that are located
in, or that derive the highest concentration of their earnings or revenues from, a number of
countries other than the United States. At June 30, 2020 investments in these funds totaled
$19,062,726.
Rate of return
For the year ended June 30, 2020, the annual money-weighted rate of return on the pension
plan investments, net of pension plan investment expense, was 5.28%. The money-weighted
rate of return expresses investment performance, net of investment expense, adjusted for the
changing amounts actually invested.
Fair value measurement
As required by GASB, certain investments that are measured at net asset value “NAV” have not
been classified in the fair value hierarchy. The fair value amount of $22,083,566, presented in
the investment table in Note 4 for the Pension Trust Fund, is measured at net asset value per
share practical expedient, including related unfunded commitments and redemption restrictions.
The portion of the Plan’s investments measured at net asset value at June 30, 2020 is
comprised of the following:
37

June 30, 2020
Redemption
Unfunded Redemption Notice
Investment Fair Value Commitments Frequency Period
Sentinel Estate Fund $ 11,126,063 n/a quarterly 30 days
U.S. Real Estate
Investment Fund, LLC 10,957,503 n/a quarterly 30 days
Total investments
measured at NAV $ 22,083,566
The Plan’s other investments, as stated in Note 4, are measured at fair value using the last
quoted sales price or current exchange rates (Level 1).
Net pension liability of the Town
The Town's net pension liability was measured as of June 30, 2020, and the total pension
liability used to calculate the net pension liability was determined by an actuarial valuation as of
July 1, 2019.
The components of the net pension liability of the Town at June 30, 2020 were as follows:
Total pension liability $ 467,164,240

Plan fiduciary net position (168,825,303)
Net pension liability $ 298,338,937
Plan fiduciary net position as a

percentage of the total pension liability 36.14%
Actuarial assumptions
The total pension liability was determined by an actuarial valuation as of July 1, 2019, using the
following actuarial assumption, applied to all periods included in the measurement:
Inflation 2.25%
Salary increase 2.50%
Investment rate of return 7.00%, net of plan investment expense, including
inflation
Cost-of-living adjustments 2.25% (1.75% for active Service Employees, Town
retirees with dates of retirement on or after July 1,
2018, and Board of Education retirees with dates of
retirement on or after September 1, 2018)
Healthy mortality rates were based on the sex-distinct RP-2000 Combined Healthy Mortality
Table, projected 24 years with Scale BB. Disabled mortality rates were based on the sex-
distinct RP-2000 Disabled Retiree Mortality Table, projected 24 years with Scale BB.
38

June 30, 2020
The actuarial assumptions used in the July 1, 2019 valuation were based on standard tables
modified for certain plan features such as eligibility for full and early retirement where applicable
and input from the plan sponsor. A full experience study has not been completed.
Long-term rate of return
The long-term expected rate of return on pension plan investments was determined using a
building-block method in which expected future real rates of return (expected returns, net of
inflation) are developed for each major asset class. These returns are combined to produce the
long-term expected rate of return by weighting the expected future real rates of return by the
target asset allocation percentage, adding expected inflation and subtracting expected
investment expenses and a risk margin. The target asset allocation and projected arithmetic
real rates of return for each major asset class as of June 30, 2020 are summarized in the
following table:
Long-Term
Expected
Target Real Rate of
Asset Class Allocation Return
Domestic equities 37.5% 6.40%
International equity 10.0% 7.05%
Fixed income 32.5% 1.15%
Real estate 20.0% 450%
100.00%
Discount rate
The blended discount rate used to measure the total pension liability was 7.00%. The projection
of cash flows used to determine the discount rate assumes that plan member contributions will
be made at the current contribution rate and that Town contributions are assumed to be
$18,925,708 for the fiscal year ending June 30, 2020, and 100% of the actuarially determined
contribution thereafter. The actuarially determined contribution is equal to the total normal cost
plus a 30-year closed amortization of the unfunded actuarial accrued liability, beginning July 1,
2014 (25 years remaining). Amortization payments are expected to grow by 2% annually.
Based on these assumptions, the pension plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the
long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.
39

June 30, 2020
Changes in the net pension liability

Increase (Decrease)
Total Plan Net
Pension Fiduciary Pension
Liability Net Liability
(a) Position (a)-(b)
Balances as of June 30, 2019 $ 464,399,881 167,101,771 297,298,110

Changes for the year:
Service cost 4,222,203 4,222,203
Interest on total pension liability 31,822,851 31,822,851
Change of benefit terms (10,229,563) (10,229,563)
Difference between expected and
actual experience 4,890,298 4,890,298
Change in assumptions 78,428 78,428
Employer contributions 19,210,000 (19,210,000)
Employee contributions 2,054,602 (2,054,602)
Net investment income 8,643,628 (8,643,628)
Benefit payments, including refund
of employee contributions (28,019,858) (28,019,858) -
Administrative expenses (164,840) 164,840
Net changes $ 2,764,359 1,723,532 1,040,827
Balances as of June 30, 2020 $ 467,164,240 168,825,303 298,338,937
Sensitivity of the net pension liability to changes in the discount rate
The following presents the net pension liability of the Town, calculated using the discount rate of
7.00%, as well as what the Town’s net pension liability would be if it were calculated using a
discount rate that is 1 percent point lower or 1 percent higher than the current rate:
Current
1% Discount 1%
Decrease Rate Increase
(6.00%) (7.00%) (8.00%)
Net pension liability $ 352,187,386 298,338,937 253,155,328
Pension trust funds
The Town maintains a pension trust fund to account for its fiduciary responsibility. The following
schedules present the net position held in trust for pension benefits at June 30, 2020 and the
changes in net position for the year then ended.
40

June 30, 2020
Schedule of net position
Assets:
Receivables 68,635
Investments 165,358,351
Liabilities:
Accounts payable and accrued expenses $ 93,358
Total liabilities $ 93,358
Net assets held in trust for pension benefits $ 168,825,303
Schedule of changes in net position
Additions:
Contributions:
Employer $ 19,210,000
Employee 2,054,602
Total $ 21,264,602
Investment income:
Net appreciation (depreciation) in fair
value of investments $ 6,884,876
Interest and dividends 2,326,245
Total $ 9,211,121
Less investment expense:
Investment management fees 567,493
Net investment income $ 8,643,628
Total additions $ 29,908,230
Deductions:
Benefits $ 28,019,858
Administrative expenses 164,840
Total deductions $ 28,184,698
Net increase $ 1,723,532
Net position at beginning of year 167,101,771
Net position at end of year $ 168,825,303
41

June 30, 2020
Pension expense and deferred outflows of resources and deferred inflows of resources
related to pensions
For the year ended June 30, 2020 the Town recognized pension expense of $23,041,605.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Net difference between projected and
actual earnings on pension plan
investments $ 21,783
Changes in assumptions 39,214
Differences between expected and actual
experience 2,445,149
Total $ 2,506,146 -
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pension will be recognized as an increase/decrease in pension expense/liability as follows:
Year ended June 30,

2021 $ 1,346,486
2022 165,594
2023 431,807
2024 562,259
2025 -
Thereafter -
Total $ 2,506,146
Connecticut Municipal Employees' Retirement System – Defined Benefit Plan
Plan description
The Town's full-time employees participate in Connecticut's Municipal Employees’ Retirement

System (CMERS), a cost-sharing multiple-employer public employee retirement system (PERS)
established by the State of Connecticut and administered by the State Retirement Commission
to provide retirement, disability, and death benefits to the employees and beneficiaries of
participating municipalities. Title 7, Chapter 113 of the General Statutes of Connecticut, which
can be amended by legislative action, establishes PERS benefits, member contribution rates
and other plan provisions.
CMERS is considered to be a part of the State of Connecticut financial reporting entity and is
included in the State’s financial reports as a pension trust fund. Those reports may be obtained
by writing to the State of Connecticut, Office of the State Comptroller, 55 Elm Street, Hartford,
Connecticut 06106, by calling 860-702-3480, or by visiting the State's website www.ct.gov.
42

June 30, 2020
Summary of significant accounting policies
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources, and expense information about CMERS net position and additions
to/deductions from CMERS net position have been determined on the same basis they are
reported by CMERS. For this purpose, benefit payments (including refunds of contributions) are
recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
Benefit provisions
General Employees: Employees are eligible to retire at age 55 with 5 years of continuous
service, or 15 years of active aggregate service. Employees under the age of 55 are eligible to
retire with 25 years of service.
Police Officers and Firefighters: Compulsory retirement age for police and fire members is age
65.
Normal Retirement: Members not covered by social security receive a benefit of 2% of average
final compensation times years of service. Members covered by social security receive a
benefit of 1.5% of the average final compensation not in excess of the year's breakpoint plus
2% of average final compensation in excess of the year's breakpoint, times years of service.
The maximum benefit is 100% of average final compensation and the minimum benefit is
$1,000 annually. Both the minimum and the maximum include workers' compensation and
social security benefits.
Early Retirement: Employees are eligible after 5 years of active continuous service or 15 years
of active aggregate service. The benefit is calculated based on average final compensation and
service to date of termination. Deferred to normal retirement age or an actuarially reduced
allowance may begin at the time of separation.
Disability Retirement: Employees are eligible for service-related disability benefits from being
permanently or totally disabled from engaging in the service of the municipality provided such
disability has arisen out of and in the course of employment with the municipality. Disability due
to hypertension or heart disease, in the case of police officers and firefighters, who began
employment prior to July 1, 1996, is presumed to have been suffered in the line of duty.
Benefits are calculated based on compensation and service to the date of the disability with a
minimum benefit of 50% of compensation at the time of disability. Non-service related disability
benefits are provided to employees with 10 years of service and being permanently or totally
disabled from engaging in gainful employment in the service of the municipality. Disability
benefits are calculated based on compensation and service to the date of the disability.
Pre-Retirement Death Benefit: The Plan also offers a lump-sum return of contributions with
interest or if vested and married, the surviving spouse will receive a lifetime benefit.
43

June 30, 2020
Contribution requirements
Employer
The Town, as a participating municipality, makes annual contributions consisting of a normal
cost contribution, a contribution for the amortization of the net unfunded accrued liability and a
prior service amortization payment which covers the liabilities of CMERS not met by member
contributions. There is also an annual administrative fee per active and retired members.
The current rate is 11.74% and 17.13% of annual covered payroll for service employees, and
police, respectively. The contribution requirements of the Town are established and may be
amended by the State Retirement Commission. The Town’s contributions to CMERS for the
years ended June 30, 2019, 2018 and 2017 were $3,210,514, $3,052,674, and $2,388,233
respectively, equal to the required contributions for each year.
Employee
Plan members not covered by social security are required to contribute 5% of compensation.
Employees covered by social security are required to contribute 2.25% of compensation up to
the Social Security taxable wage base plus 5% of compensation, if any, in excess of such base.
Pension liabilities (assets), pension expense, and deferred outflows of resources and
deferred inflows of resources related to pensions
At June 30, 2020, the Town reported a liability for its proportionate share of the net pension
liability in the government-wide statement of net position. The amount recognized by the Town
for its proportionate share of the net pension liability was $36,502,937 based on the Town's
proportionate share of 4.736344% for service employees and 0.158554% for police.
The net pension liability was measured as of June 30, 2019 and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30,
2019. The changes in assumptions that affected the measurement of the total pension liability
since the prior measurement date, were updating rates of inflation, real investment return
mortality, withdrawal, disability, retirement and salary increase to more closely reflect actual and
anticipated experience.
The Town recognized its proportionate share of the collective pension expense in the
government-wide statement of activities in the amount of $9,615,859 for the year ended June
30, 2020.
At June 30, 2020, the Town reported deferred outflows of resources and deferred inflows of
resources related to CMERS pension benefits as follows:
Deferred Deferred
Resources Resources
Net difference between projected and
actual earnings on plan investments $ 1,336,714 -
Changes of assumptions 8,932,814 -
Change in proportional share 2,861,643 95,880
Net difference between employer
expected and actual experience 4,004,884 2,324,022
Total $ 17,136,055 2,419,902
44

June 30, 2020
Net deferred outflows and inflows of resources for pensions is amortized and recognized as an
increase/decrease to the net pension expense/liability each year as follows:
Year Ended
June 30,
2021 $ 5,992,278
2022 3,948,384
2023 4,485,869
2024 289,622
2025 -
Thereafter -
$ 14,716,153
The total pension liability is based upon the June 30, 2019 actuarial valuation. The actuarial
assumptions used in the valuation were based on the results of an actuarial experience study
for the period July 1, 2012 to June 30, 2017. The key actuarial assumptions used in the
valuation were as follows:
Inflation 2.5%
Salary increase 3.50-10.00%, including inflation
Long-term investment rate of 7.00%, net of pension plan investment
Return expense, including inflation
For the period after retirement and for dependent beneficiaries, mortality rates were based on
the RP-2014 Combined Mortality Table adjusted to 2006 and projected to 2015 with Scale MP-
2017 and projected to 2022 with Scale BB for General Employees and the RP-2014 Blue Collar
Mortality Table adjusted to 2006 and projected to 2015 with Scale MP-2017 and projected to
2022 with Scale BB for Police and Fire. For disabled retirees, the RP-2014 Disabled Mortality
Table projected with Scale BB to 2020 was used. The static projection produces sufficient
margin in the mortality rates to reflect future improvement in our judgment.
Future Cost of Living adjustments (COLA) for members who retire on or after January 1, 2002,
are 60% of the annual increase in the CPI up to 6%. The minimum annual COLA is 2.5%, and
the maximum is 6%.
The long-term expected rate of return on pension plan investments was determined using
statistical analysis in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation. The target asset allocation and most recent best estimates of
arithmetic real rates of return for each major asset class as of June 30, 2019 are summarized in
the following table:
(Continued)
45

June 30, 2020
(Continued)
Long-Term
Expected
Target Real Rate of
Domestic equity 20.0% 5.3%
Developed market international 11.0% 5.1%
Emerging market international 9.0% 7.4%
Core fixed income 16.0% 1.6%
Inflation linked bond fund 5.0% 1.3%
Emerging market debt 5.0% 2.9%
High yield bonds 6.0% 3.4%
Real estate 10.0% 4.7%
Private equity 10.0% 7.3%
Alternative investments 7.0% 3.2%
Liquidity fund 1.0% 0.9%
Total 100.0%
Discount rate
The discount rate used to measure the total pension liability was 7.0%. The projection of cash
flows used to determine the discount rate assumed that plan member contributions will be made
at the current contribution rate and that employer contributions will be made at rates equal to the
actuarial determined rates in future years. Based on those assumptions, the pension plan's
fiduciary net position was projected to be available to make all projected future benefit payments
of current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
The following presents the net pension liability of the Town calculated using the discount rate of
7.00%, as well as what the Town's net pension liability would be if it were calculated using a
discount rate that is 1% lower or 1% higher than the current rate.
Current
1% Discount 1%
(6.00%) (7.00%) (8.00%)
Proportionate share of the net

pension liability $ 30,330,317 31,324,752 13,645,253
Teachers’ retirement
All Town of Hamden Board of Education certified employees participate in the State of
Connecticut Teachers’ Retirement System under Section 10.183 of the General Statutes of the
State of Connecticut.
46

June 30, 2020
Plan description
Teachers, principals, superintendents or supervisors engaged in service of public schools are

provided with benefits, including retiree health insurance, through the Connecticut State
Teachers’ Retirement System – a cost sharing, multiemployer, defined benefit pension plan
administered by the Teachers’ Retirement Board. Title 10, Chapter 167a of the State Statutes
grants authority to establish and amend the benefit terms to the State Teachers’ Retirement
Board (“TRB”). The State Treasurer is responsible for investing Teachers’ Retirement System
funds for the exclusive benefit of the TRS members.
The Teachers' Retirement System is considered to be a part of the State of Connecticut

financial reporting entity and is included in the State’s financial reports as a pension trust fund.
Those reports may be obtained by writing to the State of Connecticut, Office of the State
Comptroller, 55 Elm Street, Hartford, Connecticut 06106, by calling 860-702-3480, or by visiting
the State's website www.ct.gov.
Benefit provisions
The Plan provides retirement, disability and death benefits. Employees are eligible to retire at
age 60 with 20 years of credited service in Connecticut, or 35 years of credited service including
at least 25 years of service in Connecticut.
Normal Retirement: Retirement benefits for the employees are calculated as 2% of the average
annual salary times years of credited service (maximum benefit is 75% of average annual salary
during the 3 years of highest salary).
In addition, amounts derived from the accumulation of the 6% contributions made prior to July 1,
1989 and voluntary contributions are payable.
Early Retirement: Employees are eligible after 25 years of credited service with a minimum of
20 years of Connecticut service, or age 55 with 20 years of credited service with a minimum of
15 years of Connecticut service. Benefits are reduced for those retiring before normal
retirement age.
Minimum Benefit: Effective January 1, 1999, Public Act 98-251 provides a minimum monthly
benefit of $1,200 to teachers who retire under the normal retirement provisions and who have
completed at least 25 years of full time Connecticut service at retirement.
Disability Retirement: Employees are eligible for service-related disability benefits regardless of
length of service. Five years of credited service is required for nonservice-related disability
eligibility. Disability benefits are calculated as 2% per year of service times the average of the
highest three years of pensionable salary, as defined per the Plan, but not less than 15%, nor
more than 50%. In addition, disability benefits under this plan (without regard to cost-of-living
adjustments) plus any initial award of Social Security benefits and workers’ compensation
cannot exceed 75% of average annual salary.
A Plan member who leaves service and has attained 10 years of service will be entitled to 100%
of the accrued benefit as of the date of termination of covered employment. Benefits are
payable at age 60, and early retirement deductions are based on the number of years of service
the member would have had if they had continued work until age 60.
47

June 30, 2020
Pre-Retirement Death Benefit: The Plan also offers a lump-sum return of contributions with
interest or surviving spouse benefit depending on length of service.
Contributions
State of Connecticut
Per Connecticut General Statutes Section 10-183z (which reflects Public Act 79-436 as
amended), contribution requirements of active employees and the State of Connecticut are
amended and certified by the State Teachers’ Retirement Board and appropriated by the
General Assembly. The contributions are actuarially determined as an amount that, when
combined with employee contributions and investment earnings, is expected to finance the
costs of the benefits earned by employees during the year, with any additional amounts to
finance any unfunded accrued liability.
Employer (school districts)

School district employers are not required to make contributions to the Plan.
Employees
Effective July 1, 1992, participants are required to contribute 6.00% of their pensionable salary
to the pension System as required by CGS Section 10-183b (7). Effective January 1, 2018, the
required contribution increased to 7.00% of pensionable salary. For the year ended June 30,
2020, $3,247,388 mandatory contributions were deducted from the salaries of teachers who
were participants in the System. The estimated covered payroll for the Town was $46,652,789.
Administrative expenses of the Plan are to be paid by the General Assembly per Section 10-
183r of the Connecticut General Statutes.
Pension liabilities, pension expense, and deferred outflows of resources and deferred
inflows of resources related to pensions
The State has a statutory requirement to pay 100% of the required Plan contribution, therefore
as of June 30, 2020; the Town reports no amounts for its proportionate share of the net pension
liability, and related deferred outflows and inflows. The amount recognized by the Town as its
proportionate share of the net pension liability, the related state support, and the total portion of
the net pension liability associated with the Town were as follows:
Town's proportionate share of

the net pension liability $ -
State's proportionate share of the net
pension liability associated with the Town 195,359,950
Total net pension liability $ 195,359,950
The net pension liability was measured as of June 30, 2019, and the total pension liability used
to calculate the net pension liability was determined by an actuarial valuation as of June 30,
2019. The assumptions used in the June 30, 2019 valuation were based on the results of an
actuarial experience study for the period July 1, 2010 - June 30, 2015.
48

June 30, 2020
For the year ended June 30, 2020 the Town has recognized, in the General Fund,
intergovernmental revenue and education expenditures in the amount of $23,993,532 as
payments made by the State of Connecticut on behalf of the Town.
The total pension liability was determined by an actuarial valuation as of June 30, 2018, using
the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50%
Investment rate of return 6.90%, net of pension plan investment
expense, including inflation
Administrative expenses $0 assumption as expenses are paid for
by the State of CT General Assembly
Mortality rates were based on the RPH-2014 White Collar Table with employee and annuitant
rates blended from ages 50 to 80, projected to the year 2020 using the BB improvement scale,
and further adjusted to grade in increases (5% for females and 8% for males) to rates over age
80 for the period after service retirement and for dependent beneficiaries as well as for active
members. The RPH-2014 Disabled Mortality Table projected to 2017 with Scale BB is used for
the period after disability retirement.
Future Cost-of-Living increases for teachers who retired prior to September 1, 1992, are made
in accordance with increases in the Consumer Price Index, with a minimum of 3% and a
maximum of 5% per annum. For teachers who were members of the Teachers’ Retirement
System before July 1, 2007, and retire on or after September 1, 1992, pension benefit
adjustments are made that are consistent with those provided for Social Security benefits on
January 1 of the year granted, with a maximum of 6% per annum. If the return on assets in the
previous year was less than 8.5%, the maximum increase is 1.5%. For teachers who were
members of the Teachers’ Retirement System after July 1, 2007, pension benefit adjustments
are made that are consistent with those provided for Social Security benefits on January 1 of the
year granted, with a maximum of 5% per annum. If the return on assets in the previous year
was less than 11.5%, the maximum increase is 3%, and if the return on the assets in the
previous year was less than 8.5%, the maximum increase is 1.0%.
The long-term expected rate of return on pension plan investments was determined using a log-
normal distribution analysis in which best-estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class. These ranges are combined to produce the long-term expected rate of return
by weighting the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation.
49

June 30, 2020
The target asset allocation and best estimates of arithmetic real rates of return for each major
asset class are summarized in the following table:
Long-Term
Expected
Target Real Rate of
Large cap U.S. equities 20.0% 8.1%

Developed non U.S. equities 11.0% 8.5%
Emerging markets - non U.S. 9.0% 10.4%
Core fixed income 16.0% 4.6%
Inflation linked bonds 5.0% 3.6%
Emerging market bond 5.0% 5.2%
High yield bonds 6.0% 6.0%
Real estate 10.0% 7.0%
Private equity 10.0% 9.8%
Alternative investment - R.E. 4.0% 8.2%
Alternative investment - Hedge 3.0% 5.4%
Cash 1.0% 2.9%
Total 100.0%
Discount rate
The discount rate used to measure the total pension liability was 6.9%. The projection of cash
flows used to determine the discount rate assumed that Plan member contributions will be made
at the current contribution rate and that State contributions will be made at the actuarially
determined rates in future years. Based on those assumptions, the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments of current
plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
The Town's proportionate share of the net pension liability is $0. Any change in the discount
rate would only have an effect on the amount recorded by the State of Connecticut.
Note 10 - Other Post-Employment Benefits Plan
Plan description
The Town provides post-employment benefits for certain employees for current and future
health and life insurance benefit expenses through a single-employer defined benefit post
retirement healthcare plan. The Plan is administered and managed by the Town. An annual
actuarial valuation is made to determine whether the Plan assets and contributions are sufficient
to meet the Plan liabilities. The latest actuarial valuation was made July 1, 2019. The post-
employment plan does not issue stand-alone financial reports.
50

June 30, 2020
From an accrual accounting perspective, the cost of post-employment healthcare benefits, like
the cost of pension benefits, generally should be associated with the periods in which the cost
occurs, rather than in the future year when it will be paid. In adopting the requirements of GASB
Statement No. 75 as of July 1, 2017 the Town is required to report a liability on the face of the
financial statements for the OPEB it provides.
Membership in the Plan consisted of the following at July 1, 2019, the date of the last actuarial
valuation:
Retirees and beneficiaries receiving benefits 1,636

Active plan members 1,110
Total 2,746
Funding policy
The contribution requirements of Plan members and the Town are established and may be
amended by the Town. For fiscal year 2020, the Town contributions to the Plan were
$18,520,092 and total benefits provided on a pay-as-you go basis were $17,721,843.
Effective July 1, 2016 the Town’s required contributions are actuarially determined on an annual
basis using the entry age normal actuarial cost method, level percent of pay. Prior to July 1,
2016, a projected unit credit cost method was used.
Benefits
The Plan provides certain Town and Board of Education retirees with medical, prescription drug,
and life insurance benefits, in accordance with policies for non-bargaining employees and
various bargaining employees’ union contracts. Provisions of the benefits are as follows:
Eligibility Retiree Benefits

(1)
Years (1)
Employee of Retiree Spouse Survivor Life
Type Age Service Contribution Coverage Coverage Insurance
Service employee (4) (5) (5) (1)

bargaining 55 10-20 0%-10.0% Yes Yes $0-$5,000
Service employee (2) (2)
non-bargaining 55 10-15 0%-14% Yes Yes BOE – (6)
Police & Fire (4)
bargaining 48 15 0%-17% Yes Yes $5,000
(1) – varies depending on applicable union contract

(2) – varies by employee of Town or Board of Education and hire date
(3) – varies by hire and retire date
(4) – varies by plan selected and retire date
(5) – with the exception of one bargaining unit
(6) – available for grandfathered retirees
51

June 30, 2020
Investments
Investment policy
The Plan does not have a formal investment policy. Plan assets are in cash and cash
equivalents as of June 30, 2020.
Rate of return
For the year ended June 30, 2020, the annual money-weighted rate of return on the plan
investments, net of plan investment expense, was 0.618%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
Net OPEB liability
The Town has implemented GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefit Plans Other than Pension Plans (OPEB). This statement requires the
net OPEB liability to be measured as the total OPEB liability, less the amount of the OPEB
plan’s fiduciary net position.
The components of the net OPEB liability of the Town at June 30, 2020 were as follows:
Total OPEB liability $ 625,318,498

Plan fiduciary net position 1,784,013
Net OPEB liability $ 627,102,511
Plan fiduciary net position as a

percentage of the total OPEB liability (0.29)%
The Town’s net OPEB liability is required to be recorded in the government-wide financial
statement of net position as of June 30, 2020.
The total OPEB liability was measured by an actuarial valuation as of July 1, 2019, using the
following actuarial assumptions, applied to all periods included in the measurement:
Payroll growth rate 3.50%

Discount rate 2.21% as of June 30, 2020; 3.50% as of June 30, 2019
Investment rate of return 3.50%
Healthcare cost trend rates:
Medical (non-Medicare) 7.0% graded to 4.5% over 10 years
Medical (Medicare) 5.5% graded to 4.5% over 4 years
Prescription drug 8.0% graded to 4.5% over 14 years
Dental 3.5%
Administrative expenses 3.0%
ACA excise tax threshold 3.0% in 2018; 2.5% thereafter
52

June 30, 2020
Teachers and administrators
Healthy mortality rates were based on RPH-2014 White Collar Table with employee and
annuitant rates blended from ages 50 to 80 projected to the year 2020 using the BB
improvement scale and further adjusted to grade in increases (5% for females and 8% for
males) to rates over age 80.
Disabled mortality rates were based on RPH-2014 Disabled Morality Table projected to 2017
with Scale BB.
The rates for Teachers and Administrators were developed by the Connecticut State Teachers’
Retirement System Experience Study for the five-year period ending June 20, 2015 dated
October 29, 2015.
All other employees
Healthy mortality rates were based on the RP-2000 Healthy Annuitant Mortality Table projected
24 years with Scale BB.
Disabled mortality rates were based on the RP-2000 Disabled Retiree Table projected 24 years
with Scale BB.
The actuarial assumptions used in the July 1, 2018 valuation were based on detailed census
data provided by the employer, premium data and/or claim experience, and summary plan
descriptions for OPEB were provided by the employer and by Anthem. A full experience study
has not been completed.
The long-term expected rate of return on OPEB plan investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return
(expected returns, net of investment expense and inflation) are developed for each major asset
class. These returns are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation and subtracting expected investment expenses and a risk margin.
The target asset allocation and projected arithmetic real rates of return for each major asset
class, after deducting inflation, but before investment expenses, used in the derivation of the
long-term expected investment rate of return assumption as of June 30, 2019 are summarized
below:
Long-Term
Expected
Target Real Rate of
Asset Class Allocation Return *
Short term/cash 100.00% 1.16%
100.00%
*Net of inflation of 2.00%.
53

June 30, 2020
Discount rate
The discount rate used to measure the total OPEB liability was a blend of the long-term
expected rate of return on OPEB trust assets and a yield or index rate for 20-year, tax-exempt
general obligation municipal bonds with an average rate of AA/Aa or higher (3.50% as of June
30, 2019). The blending is based on the sufficiency of projected assets to make projected
benefit payments. Since assets do not cover even one year of benefit payments, the discount
rate is the bond rate.
Changes in the net OPEB liability
Increase (Decrease)
Plan
Total OPEB Fiduciary Net OPEB
Liability Net Liability
(a) Position (a)-(b)
Balances as of June 30, 2019 $ 522,662,533 (2,340,558) 525,003,091

Changes for the year:
Service cost $ 8,083,621 8,083,621
Interest 18,268,650 18,268,650
Change of benefit terms
Difference between expected and actual
experience (4,949,136) (4,949,136)
Changes in assumptions 98,974,673 98,974,673
Employer contributions 16,746,644 (16,746,644)
Employee contributions 1,523,448 (1,523,448)
Other 8,296 (8,296)
Net investment income
Benefit payments, including refund of
employee contributions (17,721,843) (17,721,843) -
Net changes $ 102,655,965 556,545 102,099,420
Balances as of June 30, 2020 $ 625,318,498 (1,784,013) 627,102,511
Sensitivity of the net OPEB liability to changes in the discount rate
The following presents the net OPEB liability of the Town, calculated using the discount rate of
3.50%, as well as what the Town’s net OPEB liability would be if it were calculated using a
discount rate that is 1 percent point lower (1.21%) or 1 percent higher (3.21%) than the current
rate:
Current
1% Discount 1%
(1.21%) (2.21%) (3.21%)
Net OPEB liability $ 724,994,162 627,102,511 548,461,857
54

June 30, 2020
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates
The following presents the net OPEB liability of the Town, calculated using the healthcare trend
rates per type as stated in the section of actuarial assumptions as well as what the Town’s net
OPEB liability would be if it were calculated using a healthcare trend rate that is 1 percent point
lower or 1 percent higher than the current healthcare trend rates:
Current
1% Healthcare 1%
Decrease Trend Rate Increase
Net OPEB liability $ 534,216,146 627,102,511 744,641,061
The following schedule presents the net position held in trust for OPEB benefits at June 30,
2020 and the changes in net position for the year ended June 30, 2020:
Schedule of Net Position

OPEB Trust
Fund
Assets:
Liabilities:
Accounts payable and accrued expenses $ 2,183,262
Other liabilities 924,449
Total liabilities $ 3,107,711
Net position (deficit) $ (1,784,013)
Schedule of Changes in Net Position

Additions:
Contributions:
Employer $ 16,201,241
Employee 1,523,448
Other 795,403
Total $ 18,520,092
Investment income:
Net appreciation (depreciation) in fair value of
investments $ -
Interest and dividends 8,296
Total $ 8,296
Less investment expense:
Investment management fees -
Net investment income $ 8,296
Total additions $ 18,528,388
Deductions:
Benefits 17,721,843
Net increase (decrease) $ 806,545
Net position at beginning of year (2,340,558)
Net position at end of year $ (1,534,013)
55

June 30, 2020
OPEB expense and deferred outflows of resources and deferred inflows of resources
related to OPEB
For the year ended June 30, 2020, the Town recognized OPEB expense of $40,983,820. As of
June 30, 2020, deferred outflows and inflows of resources related to OPEB are reported as
follows:
Deferred Deferred
Resources Resources
Differences between expected and actual
experience $ 29,901,068 5,122,462
Changes in assumptions 80,300,206 31,269,333
Net difference between projected and actual
earnings on OPEB plan investments 42,301
Total $ 110,243,575 36,391,795
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized as an increase/decrease in OPEB expense/liability as follows:
Year Ended June 30,
2021 $ 16,181,618
2022 16,181,617
2023 17,658,846
2024 18,507,502
2025 5,322,197
Thereafter -
Total $ 73,851,780
Teachers’ Retirement OPEB Plan
All Town of Hamden Board of Education certified employees participate in the State of
Connecticut Teachers’ Retirement System (“TRS” or the “Plan”) under Section 10.183 of the
General Statutes of the State of Connecticut.
Plan description
Teachers, principals, superintendents or supervisors engaged in service of public schools are

provided with benefits, including retiree health insurance, through the Connecticut State
Teachers’ Retirement System – a cost sharing, multiemployer, defined benefit pension plan
administered by the Teachers’ Retirement Board. Title 10, Chapter 167a of the State Statutes
grants authority to establish and amend the benefit terms to the State Teachers’ Retirement
Board (“TRB”). The State Treasurer is responsible for investing Teachers’ Retirement System
funds for the exclusive benefit of the TRS members.
56

June 30, 2020
The Teachers' Retirement System is considered to be a part of the State of Connecticut

financial reporting entity and is included in the State’s financial reports as a pension trust fund.
Those reports may be obtained by writing to the State of Connecticut, Office of the State
Comptroller, 55 Elm Street, Hartford, Connecticut 06106, by calling 860-702-3480, or by visiting
the State's website www.ct.gov.
Benefit provisions
The Plan provides healthcare insurance benefits to eligible retirees and their spouses. Any
member currently receiving a retirement or disability benefit through the Plan is eligible to
participate in the healthcare portion of the Plan. Subsidized Local School District Coverage
provides a subsidy paid to members still receiving coverage through their former employer and
the TRB Sponsored Medicare Supplemental Plans provide coverage for those participating in
Medicare, but not receiving Subsidized Local School District Coverage.
Any member that is not currently participating in Medicare Parts A & B is eligible to continue
health care coverage with their former employer. A subsidy of up to $110 per month for a
retired member plus an additional $110 per month for a spouse enrolled in a local school district
plan is provided to the school district to first offset the retiree’s share of the cost of coverage,
any remaining portion is used to offset the district’s cost. The subsidy amount is set by Statute,
and has not increased since July of 1996. A subsidy amount of $220 per month may be paid for
a retired member, spouse or the surviving spouse of a member who has attained the normal
retirement age to participate in Medicare, is not eligible for Part A or Medicare without cost, and
contributes at least $220 per month towards coverage under a local school district plan.
Any member that is currently participating in Medicare Parts A & B is eligible to either continue
health care coverage with their former employer, if offered, or enroll in the Plan sponsored by
the System. If they elect to remain in the Plan with their former employer, the same subsidies
as above will be paid to offset the cost of coverage.
If a member participating in Medicare Parts A & B so elects, they may enroll in one of the CTRB
Sponsored Medicare Supplemental Plans. Active members, retirees, and the State pay equally
toward the cost of the basic coverage (medical and prescription drug benefits).
The choices and calendar year premiums charged as of July 1, 2019 are as follows:
 Medicare Supplement with Prescriptions $ 199

 Medicare Supplement with Prescriptions and Dental 254
 Medicare Supplement with Prescriptions, Dental, Vision & Hearing 259
Survivor Health Care Coverage: Survivors of former employees or retirees remain eligible to
participate in the Plan and continue to be eligible to receive either the $110 monthly subsidy or
participate in the TRB-Sponsored Medicare Supplemental Plans, as long as they do not
remarry.
Normal Retirement: Eligible after age 60 with 20 years of credited service in Connecticut, or 35
years of credited service including at least 25 years of service in Connecticut.
57

June 30, 2020
Early Retirement: Eligible after 25 years of credited service with a minimum of 20 years of
Connecticut service, or age 55 with 20 years of credited service with a minimum of 15 years of
Connecticut service.
Proratable Retirement: Eligible after age 60 with 10 years of credited service.
Disability Retirement: Eligible after 5 year of credited service in Connecticut if not incurred in
the performance of duty and no service requirement if incurred in the performance of duty
Termination of Employment: Eligible after 10 or more years of credited service.
Contributions
State of Connecticut
Per Connecticut General Statutes Section 10-183z (which reflects Public Act 79-436 as
amended), contribution requirements of active employees and the State of Connecticut is
amended and certified by the State Teachers’ Retirement Board and appropriated by the
General Assembly. The State pays for one third of Plan costs through an annual appropriation
in the General Fund.
Employer (school districts)

School district employers are not required to make contributions to the Plan.
Employees
The cost of providing Plan benefits is financed on a pay-as-you-go basis as follows:
 Active teachers pay one third of the Plan costs through a contribution of 1.25% of
pensionable salary
 Retired teachers pay one third of the Plan costs through monthly premiums
For the year ended June 30, 2020, $404,160 mandatory contributions were deducted from the
salaries of active teachers who were participants in the System. The estimated covered payroll
for the Town was $46,391,000.
Administrative expenses of the Plan are to be paid by the General Assembly per Section 10-
183r of the Connecticut General Statutes.
OPEB liabilities, OPEB expense, and deferred outflows of resources and deferred inflows
of resources related to OPEB
The State has a statutory requirement to pay 100% of the required Plan contribution; therefore
as of June 30, 2020 the Town reports no amounts for its proportionate share of the net OPEB
liability and related deferred outflows and inflows. The amount recognized by the Town as its
proportionate share of the net OPEB liability, the related state support, and the total portion of
the net OPEB liability associated with the Town were as follows:
(Continued)
58

June 30, 2020
(Continued)
Town's proportionate share of

the net OPEB liability $ -
State's proportionate share of the net
OPEB liability associated with the Town 30,467,485
Total net OPEB liability $ 30,467,485
The net OPEB liability was measured as of June 30, 2019, and the total OPEB liability used to
calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019.
The assumptions used in the June 30, 2018 valuation were based on the results of an actuarial
experience study for the period July 1, 2010 - June 30, 2015.
For the year ended June 30, 2020 the Town has recognized, in the General Fund,
intergovernmental revenue and education expenditures related to OPEB in the amount of
$2,229,506 as payments made by the State of Connecticut on behalf of the Town teachers’
OPEB.
The total OPEB liability was determined by an actuarial valuation as of June 30, 2018, using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50%
Long-term investment rate of return 3.00%, net of pension plan investment
expense, including inflation
Real wage growth 0.75%
Wage inflation 3.25%
Municipal bond index rate 3.50%, (3.87% at prior measurement date)
Single equivalent interest rate 3.50%, net of OPEB plan investment
expense, including inflation (3.87% at
prior measurement date)
Healthcare cost trend rates 5.95% (pre-Medicare) and 5.00%
(Medicare) for 2018 decreasing to an
ultimate rate of 4.75% by 2025
Administrative expenses $0 assumption as expenses are paid for
by the State of CT General Assembly
Year fund net position will be
depleted 2020
Mortality rates were based on the RPH-2014 White Collar Table with employee and annuitant
rates blended from ages 50 to 80, projected to the year 2020 using the BB improvement scale,
and further adjusted to grade in increases (5% for females and 8% for males) to rates over age
80. For disabled retirees, the RPH-2014 Disabled Mortality Table projected to 2020 using the
BB improvement scale.
59

June 30, 2020
The long-term expected rate of return on plan investments was determined using a log-normal
distribution analysis in which best-estimate ranges of expected future real rates of return
(expected returns, net of investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected future real rates of return by the target asset allocation percentage and
by adding expected inflation. The assumption is not expected to change absent a significant
change in the asset allocation, a change in the inflation assumption, or a fundamental change in
the market that alters expected returns in future years. The target asset allocation and best
estimates of geometric real rates of return for each major asset class are summarized in the
following table:
Long-Term
Expected
Target Real Rate of
U.S. Treasuries (cash equivalents) 100.0% 3.00%

Total 100.0%
Discount rate
The discount rate used to measure the total OPEB was 3.50%. The projection of cash flows
used to determine the discount rate assumed that plan member contributions will be made at
the current member contribution rate and that contributions for future plan members were used
to reduce the estimated amount of total service costs for future plan members. No future State
contributions were assumed to have been made. Based on those assumptions, the OPEB
plan's fiduciary net position was projected to be depleted in 2020 and, as a result, the Municipal
Bond Index Rate was used in the determination.
Sensitivity of the net OPEB liability to changes in the discount rate
The Town's proportionate share of the net OPEB liability is $0. Any change in the health care
cost trend rate or the discount rate would only have an effect on the amount recorded by the
State of Connecticut.
Note 11 - Commitments and Contingencies
The Town received federal and state grants for specific purposes and is subject to review and
audit by the grantor agency for compliance and disallowed expenses under the grant.
Management believes that such disallowances, if any, will not be material to the financial
position of the Town.
The spread of the COVID-19 virus has caused business disruption throughout the United States
and in the State of Connecticut specifically through the State of Connecticut Executive Orders.
While disruption is expected to be temporary, there is a considerable uncertainty concerning the
duration and financial impact of this disruption. Although the Town does not expect this matter
to negatively impact its financial condition, results of operation, or cash flow, the extent of the
financial impact and duration cannot be reasonably estimated.
60

June 30, 2020
In accordance with the State of Connecticut pension statute, as revised in 2018, the Town was
required to contribute 55% of the actuarial required contribution (ARC) for the fiscal year 2018,
70% for the fiscal 2019, 85% for 2020 and 100% for the 2021 fiscal year and moving forward.
Lawsuits
There were several personal injury, negligence and personnel related lawsuits pending against
the Town. The outcome and eventual liability of the Town, if any in these cases, is not known at
this time. Other than that below, based upon consultation with counsel, the Town's management
estimates that potential claims against the Town not covered by insurance resulting from such
litigation would not materially affect the financial position of the Town.
Environmental contingency
Pursuant to a consent order issued on July 10, 2001 by the State of Connecticut Department of
Energy and Environmental Protection, the Town and other respondents are responsible of the
remediation of certain properties located in the Newhall section, which contain waste materials
and pollutants. Thus far, significant remedial work has been completed and the properties have
been redeveloped. Remaining remedial actions are the placement of environmental land use
restricts and long term groundwater monitoring. Management feels these costs are within the
original budget of $12 million, of which the State of Connecticut has awarded $4 million for a
portion of these costs. The Town has included $150,000 in the capital plan to continue the
groundwater monitoring.
Landfill post-closure monitoring
State and federal laws and regulations require that the Town perform certain maintenance and
monitoring functions at the landfill site for thirty years after closure, which was in 1991. The
liability for the landfill post-closure care, aggregating $16,400, is based on the amount estimated
to be paid for all equipment, facilities and services required to monitor and maintain the landfill
as of June 30, 2020. However, the actual cost of closure and post-closure care may be higher
due to inflation, changes in technology or changes in landfill laws and regulations.
Operating contracts
Municipal solid waste management services contract: The Town has entered into the
municipal solid waste management services contract, as amended, (the Service Contract) with
Covanta Projects L.P. of Wallingford pursuant to which it participates with four other Connecticut
Municipalities. Under the contract, all curbside solid waste collected in Hamden is transported to
Covanta’s mass-burn solid waste resource recovery and electric generation facility in
Wallingford (the “System”), the same location used under the twenty-year agreement with the
Connecticut Resources Recovery Authority that expired on June 30, 2010. The Covanta
contract offers two five year options to extend for any or all of the participating municipalities.
Under the Service Contract, the Town is required to deliver, or cause to be delivered, to the
System acceptable solid waste generated within its boundaries with a minimum commitment of
14,850 tons per year and to pay a uniform per ton disposal service payment (the Service
Payment). The current fee is $65 per ton. The aggregated minimum commitment of the five
Contracting Municipalities is 66,285 tons per year. The Town's Service Payment commitment is
a "put-or-pay" commitment in that if the aggregate minimum commitment of the Contracting
Municipalities is not met by the total deliveries of all the Contracting Municipalities in any year,
61

June 30, 2020
the Town must pay the Service Payment for its full portion of the aggregate minimum
commitment even if it did not deliver that full portion. Disposal fees are payable, provided the
system is accepting solid waste delivered by or on behalf of the Town, regardless of whether
such solid waste is processed at Covanta’s facility in Wallingford. If the facility is not able to
process this waste, it will be sent to other facilities owned by Covanta at no additional cost to the
Town.
As amended, effective February 1, 2012, the service payment applicable in any contract year is
calculated by increasing the fee for the immediately preceding contract year by an amount equal
to one hundred percent of the percentage increase, if any, in the CPI during the twelve month
period ending on March 31st of the immediately preceding contract year. However, the annual
increase in the fee shall not be less than 1.75%, or more than 3.5% for any contract year.
The amended contract also provides for a reserve account, to be held by Wallingford, for the
benefit of the original contracted municipalities, and is to be funded initially with $2,000,000 from
funds paid to the original municipalities by the CRRA, and thereafter by reserve charges to be
collected by Covanta from the original municipalities and their authorized haulers, and remitted
to Wallingford for deposit in the reserve account. There were no additional reserve fees added
per ton for the year ended June 30, 2020.
The Town’s obligation to pay disposal fees is absolute and unconditional as long as Covanta
accepts the Town’s solid waste. The Town has pledged its full faith and credit to the payment of
disposal fees and has also agreed to enforce or levy and collect all taxes, cost sharing or other
assessments or charges and take all such other action as may be necessary to pay the fees.
Construction contracts
The Town has several construction contracts in progress at June 30, 2020.
Risk management and self-insurance
The Town and the Board of Education are self-insured for employee medical, worker’s
compensation and heart and hypertension benefits. The Town carries commercial insurance for
its other insurable risks. Coverage has not been materially reduced, nor has settled claims
exceeded commercial coverage in any of the past three years.
The Town was a member of the Connecticut Interlocal Risk Management Agency (CIRMA), a
public entity risk pool established for the purpose of administering an interlocal risk
management program pursuant to the provisions of Section 7-479a et. Seq. of Connecticut
General Statutes, for workers’ compensation, general liability, auto and property insurance. The
Town is subject to a $300,000 per claim deductible for workers’ compensation claims from July
1, 1999 to June 30, 2009. The Board of Education was covered by CIRMA on a fully insured
basis for the same time period.
As of July 1, 2009, the Town and Board of Education became self-insured for workers’
compensation coverage. Since July 1, 2010 the reinsurance for workers’ compensation self-
insurance program is provided through Safety National. The Town retains the first $500,000 of
each loss. PMA of Connecticut serves as the Claims Administrator for the program.
The self-insurance programs for medical insurance are being administered by a third-party
administrator, Anthem Blue Cross Blue Shield (“the administrator”) and are reported as an
internal service fund. Medical insurance premiums are based upon estimates by the number of
62

June 30, 2020
employees and types of coverage (single or family), trends in insurance claims, and estimates
for administration. The claims liability reported is based upon the requirements of GASB
Statements No. 10 and 30, which require that a liability for estimated claims incurred but not
reported, be recorded. The Town maintains stop loss coverage of $250,000 for individual
medical claims.
Payments related to heart and hypertension are administered by the Town and accounted for in
the General Fund as liabilities are incurred. The Town records an estimate for claims incurred
but not reported in the long-term liabilities.
Changes in the balance of claims liabilities for the workers’ compensation, medical insurance
and heart and hypertension were as follows:
Claims Claims and Claims

Fiscal Year Ended Payable Changes in Claims Payable
June 30, Beginning Estimates Paid Ending
Workers’ compensation
and medical insurance:
2019 $ 8,220,962 33,687,276 31,999,991 9,908,247
2020 9,908,247 23,215,774 24,956,689 8,167,332
Heart and hypertension:
2019 3,191,619 2,129,974 2,398,499 2,923,094
2020 2,923,094 - 1,982,215 940,879
Total
2019 11,412,581 35,817,250 34,398,490 12,831,341
2020 12,831,341 23,215,774 26,938,904 9,108,211
Note 12 - Fund Deficits Committed fund balances
Fund deficits
The Town has the following fund deficits at June 30, 2020 and expects to eliminate the deficits
in the future as follows:
Fund Deficit Plan For Elimination

Human services $ 44,862 Future charges for services
Public works 206,262 Future receipt of grant
Community development 45,868 Future charges for services
Wintergreen Magnet School 1,117,574 Future receipt of grant
Other capital projects 908,927 Future bonding and receipt of grants
Public emergency account 643,505 Future receipt of grant
Workers’ compensation 8,739,803 Future charges for services
Medical insurance 4,083,662 Future charges for services
Other post employment benefits 2,340,558 Future charges for services
Committed fund balances
The general funds committed fund balance totaled $896,000, which is required to be expended
on preserving the Town’s clerk historic documents in accordance with the State Statutes.
The Capital Projects funds committed fund balance totaled $2,839,973, which is required to be
expended in accordance the related bond ordinances.
63

June 30, 2020
Note 13 – Subsequent Events
On August 1, 2020, the Town issued $21,290,000 of general obligation bonds and $9,145,000
general obligation refunding bonds. The Town received $2,862,704 in premium payments as
part of the sale. The bonds will have annual payments with 5% interest for the year 2022
through 2030, then term payments of $5,255,000, $3,190,000 and $4,965,000 for 2032, 2035
and 2039, respectively.
64
TOWN OF HAMDEN, CONNECTICUT RSI-1
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - PENSION PLAN
Last Seven Fiscal Years
2020 2019 2018 2017 2016 2015 2014
Total pension liability:

Service cost $ 4,222,203 4,507,760 5,112,673 5,224,667 5,888,328 6,209,591 6,238,891
Interest 31,822,851 31,405,166 30,704,226 30,036,397 30,955,497 30,823,699 31,148,927
Changes in benefit terms (10,229,563) - (2,873,098) - - - -
Differences between expected and actual experience 4,890,298 (2,048,726) (747,936) (201,960) 1,347,205 (10,769,246) 5,302,529
Changes of assumptions 78,428 - - - (26,672,204) - -
Benefit payments, including refunds of member contributions (28,019,858) (27,203,572) (26,176,831) (24,860,542) (24,437,110) (24,325,333) (23,582,140)
Net change in total pension liability $ 2,764,359 6,660,628 6,019,034 10,198,562 (12,918,284) 1,938,711 19,108,207
Total pension liability - beginning 464,399,881 457,739,253 451,720,219 441,521,657 454,439,941 452,501,230 433,393,023
Total pension liability - ending $ 467,164,240 464,399,881 457,739,253 451,720,219 441,521,657 454,439,941 452,501,230
Plan fiduciary net position:

Contributions - employer $ 19,210,000 15,925,708 12,650,000 14,747,073 12,100,000 137,071,112 12,500,000
Contributions - employee 2,054,602 2,048,827 2,120,410 2,042,495 2,195,488 2,232,086 2,181,831
Net investment income 8,643,628 11,847,000 12,388,835 17,069,663 1,468,812 (1,355,734) 6,996,801
Benefit payments, including refunds of member contributions (28,019,858) (27,203,572) (26,176,831) (24,860,542) (24,437,110) (24,325,333) (23,582,140)
Administrative expenses (164,840) (111,182) (117,526) (102,711) (118,719) (109,273) (76,352)
Net change in plan fiduciary net position $ 1,723,532 2,506,781 864,888 8,895,978 (8,791,529) 113,512,858 (1,979,860)
Plan fiduciary net position - beginning 167,101,771 164,594,990 163,730,102 154,834,124 163,625,653 50,112,795 52,092,655
Plan fiduciary net position - ending $ 168,825,303 167,101,771 164,594,990 163,730,102 154,834,124 163,625,653 50,112,795
Net pension liability - ending $ 298,338,937 297,298,110 293,144,263 287,990,117 286,687,533 290,814,288 402,388,435
Plan fiduciary net position as a percentage of total pension liability 36.14% 35.98% 35.96% 36.25% 35.07% 36.01% 11.07%
Covered payroll $ 23,030,794 24,957,309 26,088,216 26,805,022 28,397,008 28,992,189 29,347,110
Net pension liability as a percentage of its covered payroll 1295.39% 1191.23% 1123.67% 1074.39% 1009.57% 1003.08% 1371.13%
This schedule is intended to show information for ten years. Additional information will be added as it becomes available.
Notes To Schedule
Changes in benefit terms Effective July 1, 2018 for active Town employees and September 1, 2018 for Active Board of Educaton employees, the inflationary cost-of-living
adjustments on benefits after retirement is limited to 1.75% per year. The contribution rate for Town employees increased from 8.00% of annual
compensation to 8.50% effective July 1, 2018, and to 9.00% effective July 1, 2019. The contribution rate for Board of Education employees increased
from 8.00% of annual compensation to 8.50% effective September 1, 2018, and to 9.00% effective July 1, 2019.
Changes in assumptions None in last two years
Methods and assumptions used to determine contribution rates:

Actuarial cost method Entry age
Amortization method Level percent with 2% annual increases, closed period
Remaining amortization period 27 years remaining as of July 1, 2017
Asset valuation method Market value of assets less unrecognized returns in each of the last five years. Unrecognized return is equal to the difference between the actual
market return and the expected return on the actuarial value, and is recognized over a five-year period, futher adjusted, if necessary, to be within 20%
of the market value.
Inflation 2.25%
Salary increase 2.50%
Investment rate of return 7.00%, net of pension plan investment expense, including inflation
65
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS - OPEB
Last Four Fiscal Years
2020 2019 2018 2017

Total OPEB liability:
Service cost $ 8,083,621 8,832,669 9,293,258 10,981,900
Interest 18,268,650 19,768,766 18,746,907 16,413,807
Change of benefit terms - (11,626,527) - -
Differences between expected and actual experience (4,949,136) 48,022,928 (2,365,223) -
Changes of assumptions 98,974,673 (34,540,249) (20,857,617) (58,924,795)
Benefit payments (17,721,843) (19,566,412) (17,183,899) (18,548,270)
Net change in total OPEB liability $ 102,655,965 10,891,175 (12,366,574) (50,077,358)
Total OPEB liability - beginning 522,662,533 511,771,358 524,137,932 574,215,290
Total OPEB liability - ending $ 625,318,498 522,662,533 511,771,358 524,137,932
Plan fiduciary net position:

Contributions - employer $ 16,746,644 17,230,000 16,050,000 14,350,000
Contributions - employee 1,523,448 1,588,437 1,453,221 1,366,075
Other - 588,722 - -
Net investment income 8,545 12,263 5,705 -
Benefit payments, including refunds of member contributions (17,721,843) (19,566,412) (17,183,899) (17,528,220)
Administrative and other costs (249) (249) (250) -
Net change in plan fiduciary net position $ 556,545 (147,239) 324,777 (1,812,145)
Plan fiduciary net position - beginning (2,340,558) (2,193,319) (2,518,096) (705,951)
Plan fiduciary net position - ending $ (1,784,013) (2,340,558) (2,193,319) (2,518,096)
Net OPEB liability - ending $ 627,102,511 525,003,091 513,964,677 526,656,028
Plan fiduciary net position as a percentage of total OPEB liability 0.29% 0.45% 0.43% 0.48%
Covered-employee payroll N/A N/A N/A N/A
Net OPEB liability as a percentage of its covered-employee payroll N/A N/A N/A N/A
Notes to Schedule
Change in benefit terms Various retiree contribution premium % increases, various changes in eligibility based on hire and retire date
Changes in assumptions The discount rate was 2.21% as of June 30, 2020, and 3.50%, 3.87% and 3.58% for 2019, 2018 and 2017, respectively
66
SCHEDULE OF EMPLOYER CONTRIBUTIONS - PENSION PLAN
Last Ten Fiscal Years
Contribution as a
Actuarially Contribution Percentage of
Determined Actual Deficiency Covered Covered
Contribution Contribution (Excess) Payroll Payroll
2020 $ 23,230,930 19,210,000 4,020,930 23,030,794 83.41%

2019 22,605,704 15,925,708 6,679,996 24,957,309 63.81%
2018 21,974,384 12,650,000 9,324,384 26,088,216 48.49%
2017 21,067,247 14,747,073 6,320,174 26,805,022 55.02%
2016 21,998,113 12,100,000 9,898,113 28,397,008 42.61%
2015 29,536,050 14,768,025 14,768,025 28,992,189 50.94%
2014 27,688,031 12,500,000 15,188,031 29,347,110 42.59%
2013 27,145,128 9,340,000 17,805,128 - N/A
2012 19,850,851 3,040,000 16,810,851 31,241,635 9.73%
2011 19,088,623 6,550,000 12,538,623 - N/A
Notes to Schedule
Valuation date July 1, 2020

Measurement date June 30, 2020
Changes in benefit terms Unchanged from valuation date July 1, 2019, measurement date June 30, 2018 but with current year applicability:
Effective July 1, 2018 for active Town employees and September 1, 2018 for Active Board of Educaton employees, the inflationary
cost-of-living adjustments on benefits after retirement is limited to 1.75% per year. The contribution rate for Town employees
increased from 8.00% of annual compensation to 8.50% effective July 1, 2018, and to 9.00% effective July 1, 2019. The
contribution rate for Board of Education employees increased from 8.00% of annual compensation to 8.50% effective
September 1, 2018, and to 9.00% effective July 1, 2019.
Changes in assumptions None

Actuarial cost method Entry age normal
Amortization method Level percent with 2% annual increases, closed period
Remaining amortization period 26 years remaining as of July 1, 2018
Asset valuation method Market value of assets less unrecognized returns in each of the last five years. Unrecognized return is equal to the difference
between the actual market return and the expected return on the actuarial value, and is recognized over a five-year period,
futher adjusted, if necessary, to be within 20% of the market value.
Inflation 2.25%
Salary increases 2.50%
Investment rate of return 7.00%, net of pension plan investment expense, including inflation
Cost-of-living adjustments 2.25% (1.75% for active Service Employees, Town retirees with dates of retirement on or after July 1, 2018, and Board of Education retirees
with dates of retirement on or after September 1, 2018)
Actuarially determined contribution is calculated using a July valuation date as of the beginning of the fiscal year in which contributions are reported.
67
SCHEDULE OF TOWN CONTRIBUTIONS

CONNECTICUT MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM
Last Six Fiscal Years
2020 2019 2018 2017 2016 2015
Contractually required contribution $ 3,068,152 3,210,514 3,052,674 2,388,233 2,157,149 1,850,559
Contributions in relation to the contractually required contribution 3,068,152 3,210,514 3,052,674 2,388,233 2,157,149 1,850,559
Contribution deficiency (excess) $ - - - - - -
Town's covered payroll $ 22,708,495 24,107,491 22,407,613 18,861,408 17,007,020 13,794,049
Contributions as a percentage of covered payroll 13.51% 13.32% 13.62% 12.66% 12.68% 13.42%
Notes to Schedule
Valuation date June 30, 2019

Reporting date June 30, 2020
The actuarially determined contributions in the schedule of employer contributions are calculated as of June 30 each
biennium for the fiscal years ending two and three years after the valuation date.
Changes in benefit terms None
Changes in assumptions In 2018, rates of inflation, investment return, withdrawal, disability, retirement, mortality and assumed rates of salary increase were adjusted
to more closely reflect actual and anticipated experience. These assumptions were recommended as part of the Experience Study for the
five year period ended July 30, 2017.

Amortization method Level dollar, closed
Single equivalent amortization period 23 years
Asset valuation method 5-year smoothed market (20% write up)
Inflation 3.25%
Investment rate of return 8.00%, net of investment related expense
68
SCHEDULE OF EMPLOYER CONTRIBUTIONS - OPEB
Last Ten Fiscal Years

Contribution as a
Percentage of
Actuarially Contribution Covered - Covered -
Determined Actual Deficiency Employee Employee
Contribution Contribution (Excess) Payroll Payroll
2020 $ 40,511,698 16,746,644 23,765,054 N/A N/A

2019 38,269,611 17,818,722 20,450,889 N/A N/A
2018 34,444,433 16,050,000 18,394,433 N/A N/A
2017 32,492,119 14,650,000 17,842,119 N/A N/A
2016 N/A N/A N/A N/A N/A
Notes to Schedule
Valuation date July 1, 2018

Changes in benefits Various retiree contribution premium % increases, various changes in eligibility based on hire and retire date

Actuarial cost method Entry age normal, level percent of pay
Amorization method Payments increasing at 3.50%, closed, 30 years
Remaining amortization period 20 years as of July 1, 2018
Asset valuation method Market value
Inflation 2.00%
Investment rate of return 3.50%
Healthcare cost trends:
Non-Medicare 7.0% graded to 4.5% over 10 years
Medicare medical 5.5% graded to 4.5% over 4 years
Drug cost 8.0% graded to 4.5% over 14 years
Dental 3.5%
Administrative expenses 3.0%
ACA excise tax threshold 3.0% in 2018; 2.0% thereafter
Healthy mortality rates Varies by group
Disabled mortality rates Varies by group
69
SCHEDULE OF INVESTMENT RETURNS - PENSION PLAN
2020 2019 2018 2017 2016 2015 2014

Annual money-weighted rate of return,
net of investment expense 5.28% 7.21% 7.73% 11.27% 0.94% -1.76% 14.44%
70
SCHEDULE OF INVESTMENT RETURNS - OTHER POST EMPLOYMENT BENEFITS (OPEB)
2020 2019 2018 2017 2016 2015 2014

Annual money-weighted rate of return,
net of investment expense 1.16% 0.618% 0.551% 0.264% N/A N/A N/A
.
71
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (ASSET)
CONNECTICUT MUNICIPAL EMPLOYEES' RETIREMENT SYSTEM
2020 2019 2018 2017 2016 2015
Town's proportion of the net pension liability - general employees 5.62% 5.37% 4.65% 4.65% 3.97% 3.97%
Town's proportion of the net pension liability - police 4.84% 15.86% 13.44% 13.44% 9.91% 9.91%
Town's proportionate share of the net pension liability (asset) $ 36,502,937 31,324,752 13,060,976 15,411,097 7,642,956 5,510,908
Town's covered payroll 22,708,495 24,107,491 17,294,489 17,294,489 11,446,209 11,446,209
Town's proportionate share of the net pension liability (asset)

as a percentage of its covered payroll 160.75% 129.94% 75.52% 89.11% 66.77% 48.15%
Plan fiduciary net position as a percentage of total pension liability 72.69% 73.60% 91.68% 88.29% 92.72% 90.48%
Notes to Schedule
Changes in benefit terms None
Changes in assumptions In 2018, rates of inflation, investment return, withdrawal, disability, retirement, mortality and assumed rates of salary increase were adjusted
to more closely reflect actual and anticipated experience. These assumptions were recommended as part of the Experience Study for the
five year period ended June 30, 2017.

Amortization method Level dollar, closed
Single equivalent amortization period 23 years
Asset valuation method 5-year smoothed market (20% write up)
72
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY -

TEACHERS' RETIREMENT PLAN
2020 2019 2018 2017 2016 2015
Town's proportion of the net pension liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Town's proportionate share of the net pension liability $ - - - - - -
State's proportionate share of the net pension liability

associated with the Town 195,359,950 150,633,871 151,886,550 160,241,474 122,756,960 113,464,208
Total $ 195,359,950 150,633,871 151,886,550 160,241,474 122,756,960 113,464,208
Town's covered payroll $ 46,652,789 46,391,257 46,685,753 46,106,650 45,629,422 44,529,870
Town's proportionate share of the net pension liability

as a percentage of its covered payroll 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Plan fiduciary net position as

a percentage of total pension liability 52.00% 57.69% 55.93% 52.26% 59.50% 61.51%
Notes to Schedule
Changes in benefit terms Beginning January 1, 2018, member contributions increased from 6% to 7% of salary.
Changes in assumptions In 2016, rates of withdrawal, disability, retirement, mortality and assumed
rates of salary increase were adjusted to more closely reflect actual and
anticipated experience. These assumptions were recommended as part
of the Experience Study for the System for the five year period ended
June 30, 2015.

Amortization method Level percent of pay, closed
Single equivalent amortization period 17.6 years
Asset valuation method 4-year smoothed market
Inflation 2.75%
Investment rate of return 8.00%, net of investment related expense, including inflation
73
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET OPEB LIABILITY -

TEACHERS' RETIREMENT PLAN
Last Three Fiscal Years
2020 2019 2018
Town's proportion of the net OPEB liability 0.00% 0.00% 0.00%
Town's proportionate share of the net OPEB liability $ - - -
State's proportionate share of the net OPEB liability

associated with the Town 30,467,485 30,112,677 39,093,867
Total $ 30,467,485 30,112,677 39,093,867
Town's covered payroll $ 46,652,789 46,391,257 46,685,753

Town's proportionate share of the net OPEB liability
as a percentage of its covered payroll 0.00% 0.00% 0.00%
Plan fiduciary net position as a percentage of total OPEB liability 2.08% 1.49% 1.79%
Notes to Schedule
Changes in benefit terms The Plan was amended by the State Board, effective July 1, 2018. The amendment added the Anthem Medicare Advantage Plan to the
available options under the Plan, changed the "base plan" to the Medicare Advantage Plan for purposes of determining retiree
subsidies and/or cost sharing amount(s), and introduced a two year waiting period for re-enrollment in a System-sponsored health care
plan for those who cancel coverage or choose not to enroll in a health care coverage option on or after the effective date.
Changes in assumptions - The single equivalent interest rate was increased from 3.56% to 3.87% in 2019 and decreased in 2020 to 3.50% to reflect the change in the
Municipal Bond Index Rate.
- The expected rate of return on assets increased from 2.75% to 3.00% in 2019
- Changes were made to the assumed per capita claims costs, age related percentage increases, long-term health care cost trend rates,
percentage of retired members expected to elect coverage in the future, percentage of retirees expected to enroll in Medicare, the
post-disablement mortality table, which was updated to extend the projected mortality from 2017 to 2020, and the percentage of

deferred vested members who will become ineligible for future benefits.
Amortization method Level percent of payroll
Amortization period 30 years, open
Asset valuation method Market value of assets
Inflation 2.75%
Investment rate of return 3.00%, net of investment related expense, including inflation
74
TOWN OF HAMDEN, CONNECTICUT SCHEDULE 1
Page 1 of 2
SCHEDULE OF GENERAL FUND REVENUES AND OTHER FINANCING SOURCES
BUDGETARY BASIS - BUDGET AND ACTUAL

Amounts - Final Budget
Property taxes:
Current taxes $ 170,031,410 170,031,410 169,782,411 (248,999)
Delinquent taxes 2,750,000 2,750,000 1,409,794 (1,340,206)
Supplemental taxes 2,350,000 2,350,000 2,006,543 (343,457)
Property tax interest 1,100,000 1,100,000 1,180,126 80,126
Property tax liens 8,400 8,400 8,076 (324)
Suspense collections 15,000 15,000 10,336 (4,664)
Out of state MV program 500,000 500,000 (500,000)
Motor vehicle tax 13,841,629 13,841,629 13,107,514 (734,115)
Total property taxes $ 190,596,439 190,596,439 187,504,800 (3,091,639)
Intergovernmental:
PILOT - State owned property $ 662,757 662,757 662,757 -
Disability exemption 9,707 9,707 10,247 540
PILOT - colleges and hospitals 2,359,751 2,359,751 2,359,751 -
Telecommunication access 99,093 99,093 96,809 (2,284)
PILOT - veterans exemption 139,505 139,505 120,983 (18,522)
Town road aid 672,478 672,478 672,163 (315)
Municipal stabilization 1,646,236 1,646,236 1,646,236 -
Mashantucket Pequot fund 725,946 725,946 725,946 -
Adult education 264,455 264,455 282,984 18,529
Magnet schools 15,600 15,600 26,000 10,400
School construction -
State bond interest subsidies -
Nonpublic School health 111,697 111,697 112,530 833
Education cost sharing grant 23,030,761 23,030,761 22,937,247 (93,514)
PILOT - Greater New Haven WPCA 73,300 73,300 73,300 -
PILOT - Water Authority 1,339,013 1,339,013 1,213,648 (125,365)
Miscellaneous grants 27,000 27,000 739,218 712,218
MRSA municipal projects 286,689 286,689 286,689 -
MRSA select payments -
MRSA MV property tax 95,062 95,062 95,062 -
Total intergovernmental $ 31,559,050 31,559,050 32,061,570 502,520
Charges for services:

Other rents $ 9,500 9,500 6,850 (2,650)
Police extra duty 2,500,000 2,500,000 2,144,295 (355,705)
Police extra duty vehicle 150,000 150,000 119,519 (30,481)
Assessor fees 2,050 2,050 1,256 (794)
Elderly services charges 2,000 2,000 970 (1,030)
Paramedic assistance 250,000 250,000 158,348 (91,652)
Code enforcement 18,000 18,000 15,216 (2,784)
QU EMT 45,000 45,000 12,533 (32,467)
Youth services charges 5,000 5,000 2,995 (2,005)
Public works charges 53,000 53,000 28,775 (24,225)
Library charges 31,000 31,000 18,549 (12,451)
Arts and recreation 256,100 256,100 109,625 (146,475)
Planning and zoning 427,400 427,400 131,986 (295,414)
Total charges for services $ 3,749,050 3,749,050 2,750,917 (998,133)
(Continued)
75
Page 2 of 2
SCHEDULE OF GENERAL FUND REVENUES AND OTHER FINANCING SOURCES

Investment earnings $ 496,500 496,500 550,553 54,053
Licenses, permits and fees:

Town Clerk $ 2,516,000 2,516,000 2,037,822 (478,178)
Police department 117,250 117,250 69,120 (48,130)
Public works department 250,000 250,000 46,280 (203,720)
Fire department 62,000 62,000 76,691 14,691
Building 1,844,916 1,844,916 1,038,069 (806,847)
Engineering 47,660 47,660 30,708 (16,952)
Personnel 4,000 4,000 2,020 (1,980)
Total licenses, permits & fees $ 4,841,826 4,841,826 3,300,710 (1,541,116)
Miscellaneous revenues:
BOE medical $ 100,000 100,000 76,200 (23,800)
Personal property tax audit -
Workers' comp. -
Term life revenue 25,000 25,000 22,786 (2,214)
Miscellaneous - BOE reimbursement 1,201,000 1,201,000 1,494,775 293,775
School bus enforcement 60,000 60,000 6,593 (53,407)
Quinnipiac University 2,100,000 2,100,000 500,000 (1,600,000)
Sale of surplus vehicles 30,000 30,000 - (30,000)
Yale University 100,000 100,000 - (100,000)
Town project reimbursements 950,000 950,000 - (950,000)
Animal control 1,750 1,750 590 (1,160)
Miscellaneous - finance office 650,000 650,000 433,323 (216,677)
Relocation reimbursement 1,000 1,000 12,428 11,428
Total miscellaneous revenues $ 5,218,750 5,218,750 2,546,695 (2,672,055)
Other financing sources:

Transfers in $ -
Bond premium -
Total financing sources $ - - - -
Total revenues and other

financing sources $ 236,461,615 236,461,615 228,715,245 (7,746,370)
76
Page 1 of 2
GENERAL FUND EXPENDITURES, ENCUMBRANCES AND OTHER FINANCING USES -

General government:
Legislative Council $ 1,467,156 1,052,037 1,051,962 75
Mayor 240,799 564,333 564,327 6
Elections and registrar 257,723 191,932 191,928 4
Finance 2,686,514 2,241,374 2,222,030 19,344
Tax Assessor 314,560 358,870 358,868 2
Review of assessments 3,600 2,400 2,400 -
Tax Collector 305,724 282,935 282,933 2
Town Attorney 609,166 656,943 587,764 69,179
Town Clerk 982,058 965,314 965,310 4
Planning and zoning 518,101 503,515 500,688 2,827
Personnel 368,961 357,766 357,558 208
Economic development 338,675 306,597 306,596 1
Purchasing 3,619,877 3,867,840 3,865,845 1,995
Probate Court 6,100 6,100 6,025 75
Board of Ethics 5,000 - - -
Information technology 248,540 217,779 216,942 837
Total general government $ 11,972,554 11,575,735 11,481,176 94,559
Public safety:
Animal control $ 149,441 165,414 165,412 2
Police department 17,933,270 16,983,469 16,654,297 329,172
Fire department 13,123,236 13,079,726 12,937,487 142,239
Total public safety $ 31,205,947 30,228,609 29,757,196 471,413
Public works:
Building administration $ 516,625 486,281 483,338 2,943
Public works department 10,559,199 11,187,348 10,978,812 208,536
Engineering 538,017 466,744 463,585 3,159
Traffic/transportation 305,254 263,567 262,905 662
Total public works $ 11,919,095 12,403,940 12,188,640 215,300
Health and welfare:

Elderly services $ 556,451 460,690 459,632 1,058
Community and youth services 667,088 665,878 653,509 12,369
Mental health 190,000 132,000 132,000 -
Quinnipiac Valley health 376,897 376,897 376,897 -
Visiting nurses association 63,868 24,474 24,474 -
Total health and welfare $ 1,854,304 1,659,939 1,646,512 13,427
Board of Education $ 89,394,925 89,394,925 88,981,592 413,333
(Continued)
77
Page 2 of 2
GENERAL FUND EXPENDITURES, ENCUMBRANCES AND OTHER FINANCING USES -

Culture and recreation:

Library $ 2,257,199 2,134,954 2,134,434 520
Arts programs 303,725 294,496 294,493 3
Recreation 776,340 724,546 724,529 17
Total culture and recreation $ 3,337,264 3,153,996 3,153,456 540
Employee benefits:
Medical insurance $ 44,500,000 41,796,080 40,990,455 805,625
Pension 22,070,000 23,259,000 23,179,111 79,889
Fringes 1,869,500 4,651,365 4,066,553 584,812
Total employee benefits $ 68,439,500 69,706,445 68,236,119 1,470,326
Debt service:
Principal $ 1,645,000 1,645,000 1,645,000 -
Interest 10,981,408 10,981,408 10,921,408 60,000
Capital 5,711,618 5,711,618 5,711,618 -
Restructure -
Total debt service $ 18,338,026 18,338,026 18,278,026 60,000
Total expenditures and other

financing uses $ 236,461,615 236,461,615 233,722,717 2,738,898
78
COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2020
Special Revenue
Human Culture and Public

Services Recreation Safety
Assets:
Receivables, net
Due from other funds 70,058 6,044 662,379
Inventory
Total assets $ 70,058 6,044 689,886
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable and accrued liabilities $ 38,048 9,711
Payments in advance
Due to other funds 796,743 282,727
BANS payable
Total liabilities $ 834,791 - 292,438
Fund balances (deficits):

Nonspendable $
Restricted for:
Donor's intentions
Committed
Assigned 6,044 407,236
Unassigned (764,733) (9,788)
Total fund balances (deficits) $ (764,733) 6,044 397,448
Total liabilities and fund balances (deficits) $ 70,058 6,044 689,886
79
SCHEDULE 3
Page 1 of 2
Special Revenue
Total
Public Community Town Ice Board Special
Works Development Revitalization Rink of Education Revenue
125,564 16,892 151,367 2,479,109 2,800,439

187,270 187,270
114,531 27,457 880,469
21,207 21,207
240,095 16,892 178,824 - 2,687,586 3,889,385
2,596 42,517 27,911 373,257 494,040

1,372,306 1,372,306
520,778 24,161 4,859 790,813 286,543 2,706,624
-
523,374 66,678 32,770 790,813 2,032,106 4,572,970
21,207 21,207
-
-
114,031 146,054 634,273 1,307,638
(397,310) (49,786) (790,813) (2,012,430)
(283,279) (49,786) 146,054 (790,813) 655,480 (683,585)
240,095 16,892 178,824 - 2,687,586 3,889,385
(Continued)
80
COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS, (Continued)
June 30, 2020
Capital Projects
Brooksvale Wintergreen
Park Renovation Interdistrict
Farmington and Acquisition Magnet
Canal Grant School
Assets:
Receivables, net
Due from other funds 63,888
Inventory
Total assets $ - 63,888 11,984
Liabilities and Fund Balances (Deficits)
Liabilities:
Accounts payable and accrued liabilities $
Payments in advance
Due to other funds 1,129,558
BANS payable
Total liabilities $ - - 1,129,558
Fund balances (deficits):

Nonspendable $
Restricted for:
Donor's intentions
Committed
Assigned
Unassigned 63,888 (1,117,574)
Total fund balances (deficits) $ - 63,888 (1,117,574)
Total liabilities and fund balances (deficits) $ - 63,888 11,984
81
SCHEDULE 3
Page 2 of 2
Capital Projects
Total
Other Total Public Nonmajor
Capital Capital Emergency Permanent Governmental
Projects Projects Account Funds Funds
19,125 31,109 11,227 2,842,775

- 187,270
256,588 320,476 1,350,168 100 2,551,213
- 21,207
275,713 351,585 1,350,168 11,327 5,602,465
56,881 56,881 211,349 762,270

- 1,372,306
452,422 1,581,980 4,288,604
- 2,000,000 2,000,000
509,303 1,638,861 2,211,349 - 8,423,180
- 21,207
- 10,500 10,500
- 827 827
- 296,979 1,604,617
(233,590) (1,287,276) (1,158,160) (4,457,866)
(233,590) (1,287,276) (861,181) 11,327 (2,820,715)
275,713 351,585 1,350,168 11,327 5,602,465
82
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES (DEFICITS) - NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue
Human Culture and Public

Services Recreation Safety
Revenues:
Intergovernmental $ 83,221
Charges for services
Investment income
Other 68,017 44,577
Total revenues $ 68,017 - 127,798
Expenditures:
Public safety $ 97,085
Public works
Health and human services 787,888
Culture and recreation
Education
Other
Total expenditures $ 787,888 - 97,085
Revenue over (under) expenditures $ (719,871) - 30,713

Bond proceeds
Transfers in $
Transfers (out)
Total other financing sources $ - - -
Changes in fund balances (deficits) $ (719,871) - 30,713
Fund balances (deficits) - beginning (44,862) 6,044 366,735
Fund balances (deficits) - ending $ (764,733) 6,044 397,448
83
SCHEDULE 4
Page 1 of 2
Special Revenue
Total
Public Community Town Ice Board Special
Works Development Revitalization Rink of Education Revenue
235,445 327,466 119,010 12,880,449 13,645,591

3,403 157,829 625,361 786,593
-
575 12,961 126,130
236,020 327,466 122,413 157,829 13,518,771 14,558,314
97,085
313,037 313,037
787,888
21,123 370,462 391,585
13,810,256 13,810,256
331,384 67,150 398,534
313,037 331,384 88,273 370,462 13,810,256 15,798,385
(77,017) (3,918) 34,140 (212,633) (291,485) (1,240,071)
(743,827) (743,827)
- - (743,827) - - (743,827)
(77,017) (3,918) (709,687) (212,633) (291,485) (1,983,898)
(206,262) (45,868) 855,741 (578,180) 946,965 1,300,313
(283,279) (49,786) 146,054 (790,813) 655,480 (683,585)
84
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES (DEFICITS) - NON-MAJOR GOVERNMENTAL FUNDS, (Continued)
Capital Projects
Brooksvale Wintergreen
Park Renovation Interdistrict
Farmington and Acquisition Magnet
Canal Grant School
Revenues:
Intergovernmental $
Charges for services
Investment income
Other
Total revenues $ - - -
Expenditures:
Public safety $
Public works 101,416
Health and human services
Culture and recreation
Education
Other
Total expenditures $ 101,416 - -
Revenue over (under) expenditures $ (101,416) - -

Bond insurance
Transfers in $
Transfers (out)
Total other financing sources $ - - -
Changes in fund balances (deficits) $ (101,416) - -
Fund balances (deficits) - beginning 101,416 63,888 (1,117,574)
Fund balances (deficits) - ending $ - 63,888 (1,117,574)
85
SCHEDULE 4
Page 2 of 2
Capital Projects
Total
Other Total Public Permanent Nonmajor
Capital Capital Emergency Funds Governmental
Projects Projects Account Account Funds
99,451 99,451 13,745,042

6,600 6,600 793,193
- 388 388
1,589 1,589 71,740 199,459
107,640 107,640 71,740 388 14,738,082
- 97,085
101,416 289,416 703,869
- 787,888
7,546 7,546 399,131
- 5 13,810,261
2,937 2,937 401,471
10,483 111,899 289,416 5 16,199,705
97,157 (4,259) (217,676) 383 (1,461,623)
- -
- -
- (743,827)
- - - - (743,827)
97,157 (4,259) (217,676) 383 (2,205,450)
(330,747) (1,283,017) (643,505) 10,944 (615,265)
(233,590) (1,287,276) (861,181) 11,327 (2,820,715)
86
COMBINING STATEMENT OF NET FUND POSITION (DEFICIT)

INTERNAL SERVICE FUNDS
June 30, 2020
Workers' Medical
Compensation Insurance
Fund Fund Total
Assets:
Current assets:
Cash and cash equivalents $ 250,567 250,567
Total assets $ 250,567 - 250,567
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities $ 422,618 46,851 469,469
Due to other funds 1,771,989 1,578,838 3,350,827
Total current liabilities $ 2,194,607 1,625,689 3,820,296
Claims incurred but not reported $ 6,780,659 1,386,673 8,167,332
Total liabilities $ 8,975,266 3,012,362 11,987,628
Net position:
Unrestricted $ (8,724,699) (3,012,362) (11,737,061)
Total net position (deficit) $ (8,724,699) (3,012,362) (11,737,061)
87
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET FUND POSITION (DEFICIT)
June 30, 2020
Workers' Medical
Fund Fund Total
Operating revenues:
Employer contribution $ 2,082,483 22,002,519 24,085,002
Employee contribution 3,609,443 3,609,443
Total operating revenues $ 2,082,483 25,611,962 27,694,445
Operating expenses:
Salaries, benefits and claims $ 2,067,379 24,540,662 26,608,041
Total operating expenses $ 2,067,379 24,540,662 26,608,041
Changes in fund net position $ 15,104 1,071,300 1,086,404
Fund net position (deficit), beginning (8,739,803) (4,083,662) (12,823,465)
Fund net position (deficit), ending $ (8,724,699) (3,012,362) (11,737,061)
88
COMBINING STATEMENT OF CASH FLOWS

June 30, 2020
Workers' Medical
Fund Fund Total
Cash flows from operating activities:

Receipts from customers and users $ 2,082,483 25,611,962 27,694,445
Payments for benefits (2,915,163) (25,611,962) (28,527,125)
Internal activity - payments from (to) other funds 1,058,379 - 1,058,379
Net cash (used in) provided by
operating activities $ 225,699 - 225,699
Net increase (decrease) in cash and

cash equivalents $ 225,699 - 225,699
Cash and cash equivalents, beginning 24,868 - 24,868
Cash and cash equivalents, ending $ 250,567 - 250,567
Reconciliation of operating income to net cash

provided by (used in) operating activities:
Change in net fund position $ 15,104 1,071,300 1,086,404
Adjustment to reconcile operating income to
net cash provided by (used in) operating activities:
Change in assets and liabilities:
Increase (decrease) in interfund receivables/payables 1,058,379 1,058,379
(Decrease) increase in accounts payable
and accrued expenses 239,898 46,851 286,749
(Decrease) increase in claims payable (1,087,682) (1,118,151) (2,205,833)
Net increase (decrease) in cash and
cash equivalents $ 225,699 - 225,699
89
COMBINING STATEMENT OF NET POSITION

PRIVATE PURPOSE TRUST FUNDS
June 30, 2020
Other
Hamden Private
Library Arts Purpose
Fund Commission Trust Funds Total
Assets:
Cash and cash equivalents $ 331,964 135,311 22,441 489,716
Total assets $ 331,964 135,311 248,804 716,079
Liabilities:
Accounts payable $ 27,988 27,988
External balances -
Total liabilities $ - - 27,988 27,988
Net position:
Held in trust for specific purposes $ 331,964 135,311 220,816 688,091
90
COMBINING STATEMENT OF CHANGES IN NET POSITION

PRIVATE PURPOSE TRUST FUNDS
June 30, 2020
Other
Hamden Private
Library Arts Purpose
Fund Commission Trust Funds Total
Additions:
Other $ 163,448 17,812 263,116 444,376
Total additions $ 163,448 17,812 263,116 444,376
Investment earnings:
Net increase in fair value $ -
Interest and dividends 2,497 2,497
Less: investment expense -
Total investment earnings $ 2,497 - - 2,497
Deductions:
Benefits $
Other 98,896 26,945 260,735 386,576
Total deductions $ 98,896 26,945 260,735 386,576
Change in net position $ 67,049 (9,133) 2,381 60,297
Net position - beginning 264,915 144,444 218,435 627,794
Net position - ending $ 331,964 135,311 220,816 688,091
91
COMBINING STATEMENT OF FIDUCIARY NET POSITION

AGENCY FUNDS
June 30, 2020
School Adult
Activity Activity Performance
Funds Funds Bonds Total
Assets:
Cash and cash equivalents $ 555,863 23,512 606,740 1,186,115
Total assets $ 555,863 23,512 684,190 1,263,565
Liabilities:
Other liabilities $ -
Held for deposits for others 555,863 23,512 684,190 1,263,565
Total liabilities $ 555,863 23,512 684,190 1,263,565
Net position $ - - - -
92
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS
For the Year ended June 30, 2020
Balance Balance
July 1, June 30,
2019 Additions Deductions 2020
School Activity Fund:

Assets:
Cash and cash equivalents $ 517,626 38,237 - 555,863
Liabilities:
Deposits held for others $ 517,626 38,237 - 555,863
Adult Activity Fund:

Assets:
Cash and cash equivalents $ 10,148 13,364 - 23,512
Liabilities:
Deposits held for others $ 10,148 13,364 - 23,512
Performance Bonds:
Assets:
Cash and cash equivalents $ 631,171 24,431 606,740
Total assets $ 708,621 - 24,431 684,190
Liabilities:
Deposits held for others $ 708,621 - 24,431 684,190
Total Agency Funds:

Assets:
Cash and cash equivalents $ 1,158,945 51,601 24,431 1,186,115
Total assets $ 1,236,395 51,601 24,431 1,263,565
Liabilities:
Deposits held for others $ 1,236,395 51,601 24,431 1,263,565
93
[Intentionally left blank]
SCHEDULE OF PROPERTY TAXES LEVIED, COLLECTED AND OUTSTANDING

Uncollected
Balance & Lawful Corrections Transfers to Balance
Grand New Levy (Recoveries From) to be
List Year July 1, 2019 Increases Decreases Suspense Collected
2003 $ 37,932 (37,932) 138 138

2004 54,488 491 54,979
2005 71,664 652 72,316
2006 74,944 741 75,685
2007 74,800 1,047 75,847
2008 153,077 9,545 2,267 164,889
2009 180,308 5,000 185,308
2010 344,603 1 (208) 344,396
2011 421,059 3 (121) 420,941
2012 499,754 3 (927) 498,830
2013 545,118 272 (1,416) 543,974
2014 647,574 6 (3,736) 643,844
2015 755,135 479 (8,503) 747,111
2016 1,159,359 40,583 (21,173) 1,178,769
2017 2,826,385 399,128 (394,269) 2,831,244
Total $ 7,846,200 450,020 (468,285) 10,336 7,838,271
2018 185,975,125 2,537,139 (859,045) 187,653,219
Total $ 193,821,325 2,987,159 (1,327,330) 10,336 195,491,490
94
SCHEDULE 12
Collections Uncollected
Lien Balance
Taxes Interest Fees Total June 30, 2020
138 164 302 -

12,347 12,563 24 24,934 42,632
14,015 32,803 24 46,842 58,301
3,839 32,026 35,865 71,846
1,047 2,211 3,258 74,800
2,267 4,149 6,416 162,622
5,000 7,763 12,763 180,308
6,330 8,785 24 15,139 338,066
11,900 16,338 24 28,262 409,041
14,930 15,695 49 30,674 483,900
22,447 19,737 48 42,232 521,527
38,578 27,021 97 65,696 605,266
43,893 65,457 360 109,710 703,218
302,503 128,019 1,262 431,784 876,266
1,395,035 287,880 4,601 1,687,516 1,436,209
1,874,269 660,611 6,513 2,541,393 5,964,002
184,302,374 502,271 2,927 184,807,572 3,350,845
186,176,643 1,162,882 9,440 187,348,965 9,314,847
95
SCHEDULE OF DEBT LIMITATION

General
Purpose
Debt limitation:
2 1/4 times base $ 421,535,171
4 1/2 times base
3 3/4 times base
3 1/4 times base
3 times base
7 times base
Total debt limitation $ 421,535,171
Indebtedness:
Bonds payable $ 136,685,500
Bonds authorized and unissued 39,098,321
Total indebtedness $ 175,783,821
Less: School construction grants receivable -
Total indebtedness of the Town $ 175,783,821
Debt limitation in excess of outstanding and

authorized debt $ 245,751,350
96
SCHEDULE 13
Total tax collections (including interest and lien fees)

for the year ended June 30, 2020 $ 187,348,965
Reimbursement for revenue loss on:

Elderly Tax Relief - Freeze -
Base $ 187,348,965
Urban Pension Total

Schools Sewers Renewal Bonding Debt
843,070,343
702,558,619
608,884,136
562,046,895
1,311,442,755
843,070,343 702,558,619 608,884,136 562,046,895 1,311,442,755
43,719,500 113,800,000 294,205,000

72,191,000 111,289,321
115,910,500 - - 113,800,000 405,494,321
- - - -
115,910,500 - - 113,800,000 405,494,321
727,159,843 702,558,619 608,884,136 448,246,895 905,948,434
97
FEDERAL AND STATE

SINGLE AUDIT REPORTS
June 30, 2020

FEDERAL AND STATE

SINGLE AUDIT REPORTS
TABLE OF CONTENTS
Page
Number
Financial Statements
Independent Auditor’s Report on Internal Control

Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial
Statements Performed in Accordance with
Government Auditing Standards 1-2
Federal Single Audit
Independent Auditor’s Report on Compliance For

Each Major Federal Program; Report on Internal
Control Over Compliance Required by the Uniform
Guidance 3-5
Schedule of Expenditures of Federal Awards 6-7
Notes to the Schedule of Expenditures of Federal

Awards 8
Schedule of Findings and Questioned Costs 9-12
Summary Schedule of Prior Years Audit Findings 13
State of Connecticut Single Audit
Report on Compliance For Each Major State

Program; Report on Internal Control Over
Compliance; and Report on the Schedule of
Expenditures of State Financial Assistance
Required by the State Single Audit Act 14-16
Schedule of Expenditures of State Financial

Assistance 17-18
Notes to the Schedule of Expenditures of State

Financial Assistance 19
Schedule of Findings and Questioned Costs 20-21

37 Waterbury Road
Main: 203-758-6658
Fax: 203-758-6758
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To The Legislative Council

Hamden, Connecticut 06518
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, each major fund, and the aggregate remaining fund
information of the Town of Hamden, Connecticut, as of and for the year ended June 30, 2020,
and the related notes to the financial statements, which collectively comprise the Town of
Hamden, Connecticut’s basic financial statements, and have issued our report thereon dated
January 31, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Town of
Hamden, Connecticut’s internal control over financial reporting (internal control) to determine
the audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Town of Hamden, Connecticut’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the Town of Hamden, Connecticut’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
1
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Hamden, Connecticut’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the Town of
Hamden, Connecticut’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.

January 31, 2021
2
37 Waterbury Road
Main: 203-758-6658
Fax: 203-758-6758
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR

FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
To the Legislative Council

Report on Compliance for Each Major Federal Program
We have audited the Town of Hamden, Connecticut’s compliance with the types of
compliance requirements described in the OMB Compliance Supplement that could
have a direct and material effect on each of the Town of Hamden, Connecticut’s major
federal programs for the year ended June 30, 2020. The Town of Hamden,
Connecticut’s major federal programs are identified in the summary of auditor’s results
section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the
terms and conditions of its federal awards applicable to its federal programs.
Our responsibility is to express an opinion on compliance for each of the Town of

Hamden, Connecticut’s major federal programs based on our audit of the types of
compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Those standards and the Uniform Guidance require that
we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the Town of Hamden, Connecticut’s
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for
each major federal program. However, our audit does not provide a legal determination
of the Town of Hamden, Connecticut’s compliance.
3
Opinion on Each Major Federal Program
In our opinion, the Town of Hamden, Connecticut, complied, in all material respects, with
the types of compliance requirements referred to above that could have a direct and
material effect on each of its major federal programs for the year ended June 30, 2020.
Report on Internal Control over Compliance
Management of the Town of Hamden, Connecticut is responsible for establishing and

maintaining effective internal control over compliance with types of compliance
requirements referred to above. In planning and performing our audit of compliance, we
considered the Town of Hamden, Connecticut’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major federal
program to determine the auditing procedures that are appropriate in the circumstances
for the purpose of expressing an opinion on compliance for each major federal program
and to test and report on internal control over compliance in accordance with the
Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness
of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Town of Hamden, Connecticut’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal course
of performing their assigned functions, to prevent, or detect and correct, noncompliance
with a type of compliance requirement of a federal program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a
federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination
of deficiencies, in internal control over compliance with a type of compliance requirement
of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control over compliance was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the
scope of our testing of internal control over compliance and the results of that testing
based on the requirements of the Uniform Guidance. Accordingly, this report is not
4
Report on Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
We have audited the financial statements of the governmental activities, each major fund
and the aggregate remaining fund information of the Town of Hamden, Connecticut, as
of and for the year ended June 30, 2020, and the related notes to the financial
statements, which collectively comprise of the Town of Hamden, Connecticut's basic
financial statements. We issued our report thereon dated January 31, 2021, which
contained unmodified opinions on those financial statements. Our audit was conducted
for the purpose of forming opinions on the financial statements that collectively comprise
the basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by the Uniform
Guidance and is 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
financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of
federal awards is fairly stated in all material respects in relation to the basic financial
statements as a whole.

January 31, 2021
5
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2020
Federal Grantor/Pass-Through C.F.D.A. Federal Pass-Through Passed

Grantor/Program Title Number Expenditures Number C.F.D.A. Expenditures Through
U.S. Department of Agriculture:

Passed Through the State of Connecticut
Department of Education:
National School Breakfast Program 12060-SDE64370-20508 10.553 $ 346,964
National School Breakfast Program - Cares Act 12060-SDE64370-20508 10.553 33,749
National School Lunch Program 12060-SDE64370-20560 10.555 1,023,924
National School Lunch Program - Cares Act 12060-SDE64370-20560 10.555 55,979
National School Lunch Equipment assistance 12060-SDE64370-22386 10.579 7,926
Child Care Food Program 12060-SDE64370-20518 10.555 796 796
Total U.S. Department of Agriculture $ 1,469,338 796
U.S. Department of Education:

IDEA-Part B, Section 611 Grants to State 2020 12060-SDE64370-20977 84.027 $ 279,519
IDEA-Part B, Section 611 Grants to State 2019 12060-SDE64370-20977 84.027 1,510,650
IDEA-Part B, Section 619 Preschool Grants 2019 12060-SDE64370-20983 84.173 41,087
IDEA-Part B, Section 619 Preschool Grants 2020 12060-SDE64370-20983 84.173 930
Title I - Grants to Local Education Agencies 2020 12060-SDE64370-20679 84.010 1,027,129
Title II Improvements to Teachers Quality 2019 12060-SDE64370-20858 84.367 10,291
Title II Improvements to Teachers Quality 2020 12060-SDE64370-20858 84.367 161,755
Adult Basic Education 2020 12060-SDE64370-20784 84.002 90,000
Adult Basic Education 2020 12060-SDE64370-20784 84.002 38,000
Title III - Part A - English Language Acq. 2019 12060-SDE64370-20868 84.365 26,457
Title III - Part A - English Language Acq. 2019 12060-SDE64370-20868 84.365 464
Emergency Aid for Displaced Students 12060-SDE64370-22854 84.424 16,936
Student Support and Enrichment 2020 12060-SDE64370-22854 84.424 69,132
Career and Technical Education 12060-SDE64370-20742 84.048 64,152

Office of Early Childhood Development:
Preschool Development Grants 12060-OED64845-22705 84.819 89,091
Total U.S. Department of Education $ 3,447,332 -
U.S. Department of Housing and Urban Development:

Direct Funding:
Community Development Block Grant/Entitlement Grants - 14.218 $ 480,319
U.S. Department of Justice:

Office of Policy and Management:
Edward Bryne Justice Assistance Grant 12060-OPM20350-21676 16.738 $ 6,714
Total U.S. Department of Justice $ 6,714 -
(continued)
See Notes to Schedule.
6
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

Federal Grantor/Pass-Through C.F.D.A. Federal Pass-Through Passed

Grantor/Program Title Number Expenditures Number C.F.D.A. Expenditures Through
U.S. Department of Transportation:

Department of Transportation:
Highway Planning and Construction 12062-DOT57161-22108 20.205 $ 1,944,057

Department of Public Safety:
Federal Highway Safety 12062-DOT57513-20559 17,221
Total U.S. Department of Transportation $ 1,961,278 -
U.S. Department of Federal Emergency Management Agency:

Public Assistance 12060-DPS32990-21891 97.036 $ 2,446,714
U.S. Department of Homeland Security:

State Homeland Security 12060-DPS32160-27550 97.067 $ 1,000
Total Federal Awards $ 9,812,695 796
7
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

For The Year Ended June 30, 2020
Note 1 – Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”)

includes the federal award activity of the Town of Hamden under programs of the federal
government for the year ended June 30, 2020. The information in this Schedule is
presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents
only a selected portion of operations of the Town of Hamden, Connecticut, it is not
intended to and does not present the financial position, changes in net assets or cash
flows of the Town of Hamden, Connecticut.
Note 2 – Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform
Guidance and/or OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal
Governments wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Negative amounts shown on the Schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in
prior years. Pass-through entity identifying numbers are presented where available.
Note 3 – Indirect Cost Recovery
The Town of Hamden, Connecticut did not recover its indirect costs using the 10% de
minimis direct cost rate provided under section 200.41, of the Uniform Guidance rules.
8
SCHEDULE OF FINDINGS AND QUESTIONED COSTS

I. SUMMARY OF AUDITOR’S RESULTS
Type of auditor’s report issued: Unmodified
Internal Control Over Financial Reporting:

Material weakness(es) identified? yes x no
Significant deficiency(ies) identified? x yes none reported
Noncompliance material to financial statements

noted? yes x no
Federal Awards
Internal Control Over Major Programs:

Significant deficiency(ies) identified? yes x none reported
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to

be reported in accordance with 2 CFR section
200.516(a) are reported in this Schedule? yes x no
Identification of major programs:
C.F.D.A. Number(s) Name of Federal Program or Cluster
20.205 Highway Planning and Construction

10.553, 10.555 &10.579 National School Lunch Cluster
97.036 FEMA – Public Assistance
Dollar threshold used to distinguish

between type A and type B programs: $ 750,000
Auditee qualified as low-risk auditee? x yes no
9

II. FINANCIAL STATEMENT FINDINGS
20-01 General Fund Balance Deficit
Condition – The Town incurred a general fund operating budget deficit of $5,007,472,
leaving the Town’s general fund at a $ 2,289,004 deficit balance.
Criteria – The Town is required to develop a structurally sound and accurate operating
budget for the general fund. In developing the budget, revenues and other financial
resources should be properly estimated to insure that the general fund will have enough
financial resources to cover the current year appropriations.
Cause – The Town’s finance office has incurred a significant amount of changeover
during a challenging fiscal year, which has inhibited long-term financial planning. These
positions included the Finance Director, Assistant Finance Director and Risk Manager.
Some of the challenges during the fiscal year may be attributed to timing due to the
responses of the COVID pandemic. These would include:
- State executive orders and mandated shutdowns, which slowed the collections
of taxes and fees.
- Several budgetary initiatives, such as a personal property tax audit, could not be
completed during the fiscal year.
- Timely issuance of general obligation bonds.
However, there were other challenges that were not COVID related that attributed to the
loss, which included:
- A State Pension Statute as amended in 2018 required the Town of Hamden to

provide annual incremental increases of the employer contributions. The
incremental funding was as follows:
2018 $ 12,650,000
2019 15,925,708
2020 19,210,000
- The general fund, as well as the A Town’s stabilization funds outside of the
general fund, maintained a relatively low balance over several years.
Context – In prior years, The Town of Hamden had a long history of paying less than
the actuarially determined contribution (ARC) to the Employer’s Pension Plan. In 2012,
the Town began an initiative to improve the health of the retirement plan by the issuance
of a $125,000,000 general obligation bond of to help fund the pension and, as required
by State Statute, increased the Town’s annual contribution to the pension to meet the
ARC requirement. This has helped stabilize the unfunded pension obligation but also
reduced the available resources available for current expenses. In 2012, the Town’s
pension contribution was $3,040,000. In 2020, the Town paid $27,251,618 (includes,
contribution, principal and interest on the pension bond) to fund the pension.

SECTION II – FINANCIAL STATEMENT FINDINGS (Continued)
Effect – The Town’s general fund balance was depleted.
Recommendation – The Town should develop a plan to stabilize the general fund
operating budget so that revenues cover the appropriations on an annual basis. Also,
the Town needs a long-term financing plan to recover the general fund balance and
increase the stabilization funds outside of the general fund. The plan should incorporate
the reduction of all long-term liabilities such as debt and net retirement benefit liabilities.
Corrective Action Plan – Beginning in the development of the 2020-2021 budget, the
Town has reviewed each revenue line item in the general fund budget accurately as well
as ongoing initiatives to reduce operating and capital expenditures. In addition, Town
Council has developed a committee to develop a long-term financial plan to reduce long-
term liabilities.
20-02 Pension Ongoing Monitoring and Administration
Condition – The Town had over paid the pension benefits for several years by
incorrectly calculating the Cost of Living (COLA) Annual Adjustment. In addition, the
Town uncovered several years of benefit payments to an ineligible recipient.
Criteria – The Town of Hamden is required to accurately administer the employer’s

retirement fund, which includes proper controls to ensure accurate payments to eligible
retirees and discrepancies, if any, are found and corrected in a timely manner.
Cause – The Town has proper policies and procedures to ensure a retiree is eligible for
pension payments and the base benefit payment is accurate. However, there are limited
policies and procedures for ongoing monitoring and administration.
Context – The pension is administered by the Town’s personnel department and

overseen by the pension committee. In 2002, and again in 2012, Town employees
noticed the benefit’s annual cost of living adjustment (COLA) annually calculated at 3%.
The pension plan allows for a COLA of the lesser of the U.S. consumer price index or
3%. Beginning in 2012 and moving forward the correct calculation was used. Starting in
September 1, 2020, the pension committee adjusted the future payments to include the
proper COLA prior to 2012. This reduces the annual pension benefit payments in the
June 30, 2021 fiscal year by $680 thousand and a related adjustment to the net pension
liability of $10,229,563 was made.
Also, it was brought to the pension committee’s attention that the spouse of a deceased
retiree was depositing benefit payments for more than one year after the retiree’s date of
death. This amount was recovered.
11

SECTION II – FINANCIAL STATEMENT FINDINGS (Continued)
Effect – The Actuary Study suggests the Town incurred $12 million in overpaid
retirement payments.
Recommendation – The Town develop policies and procedures for the ongoing
monitoring and administration of the Town’s retirement. This would include routine
procedures to ensure eligibility and accuracy of the pension benefit payments.
Corrective Action Plan – The Town will follow the auditor’s recommendation. The
Pension Board will review and approve the COLA calculation on an annual basis. In
addition, The Town will develop procedures to routinely review the eligibility of recipients.
12
SUMMARY SCHEDULE OF PRIOR YEARS AUDIT FINDINGS

June 30, 2020
No findings required to be reported.
13
37 Waterbury Road
Main: 203-758-6658
Fax: 203-758-6758
REPORT ON COMPLIANCE FOR EACH MAJOR STATE PROGRAM; REPORT ON

INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF
EXPENDITURES OF STATE FINANCIAL ASSISTANCE REQUIRED BY
THE STATE SINGLE AUDIT ACT
Independent Auditor’s Report
To The Legislative Council

Report on Compliance for Each Major State Program
We have audited the Town of Hamden, Connecticut’s compliance with the types of
compliance requirements described in the Office of Policy and Management’s
Compliance Supplement that could have a direct and material effect on each of the
Town of Hamden, Connecticut’s major state programs for the year ended June 30, 2020.
The Town of Hamden, Connecticut’s major state programs are identified in the summary
of auditor’s results section of the accompanying schedule of findings and questioned
costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts and grants applicable to its state programs.
Our responsibility is to express an opinion on compliance for each of the Town of
Hamden, Connecticut’s major state programs based on our audit of the types of
compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America;
the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the State Single
Audit Act (C.G.S. Sections 4-230 to 4-236). Those standards and the State Single Audit
Act require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above
that could have a direct and material effect on a major state program occurred. An audit
includes examining, on a test basis, evidence about the Town of Hamden, Connecticut’s
compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for
each major state program. However, our audit does not provide a legal determination of
the Town of Hamden, Connecticut’s compliance.
14
Opinion on Each Major State Program
In our opinion, the Town of Hamden, Connecticut, complied, in all material respects, with
the types of compliance requirements referred to above that could have a direct and
material effect on each of its major state programs for the year ended June 30, 2020.
Report on Internal Control over Compliance
Management of the Town of Hamden, Connecticut is responsible for establishing and

maintaining effective internal control over compliance with the types of compliance
requirements referred to above. In planning and performing our audit of compliance, we
considered the Town of Hamden, Connecticut’s internal control over compliance with the
types of requirements that could have a direct and material effect on each major state
program to determine the auditing procedures that are appropriate in the circumstances
for the purpose of expressing our opinion on compliance for each major state program
and to test and report on internal control over compliance in accordance with the State
Single Audit Act, but not for the purpose of expressing an opinion on the effectiveness of
internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the Town of Hamden, Connecticut’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal course
of performing their assigned functions, to prevent, or detect and correct, noncompliance
with a type of compliance requirement of a state program on a timely basis. A material
weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a state
program will not be prevented, or detected and corrected, on a timely basis. A significant
deficiency in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance with a type of compliance requirement of
a state program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the
scope of our testing of internal control over compliance and the results of that testing
based on the requirements of the State Single Audit Act. Accordingly, this report is not
15
Report on Schedule of Expenditures of State Financial Assistance Required by the
State Single Audit Act
We have audited the financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the Town of Hamden, Connecticut
as of and for the year ended June 30, 2020, and the related notes to the financial
statements, which collectively comprise the Town of Hamden, Connecticut’s basic
financial statements. We have issued our report thereon dated January 31, 2021, which
contained unmodified opinions on those financial statements. Our audit was conducted
for the purpose of forming opinions on the financial statements that collectively comprise
the Town of Hamden, Connecticut’s basic financial statements. The accompanying
schedule of expenditures of state financial assistance is presented for purposes of
additional analysis as required by the State Single Audit Act, and is not a required part of
the 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 financial statements and certain
additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the schedule of expenditures of state financial
assistance is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.

January 31, 2021
16
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE

State Grantor/Pass-Through State Core-CT Passed

Grantor/Program Title Identification Number Expenditures Through
Child Nutrition State Match 11000-SDE64370-16211 $ 25,306
Adult Education 11000-SDE64370-17030 639,115
Health Foods Initiative 11000-SDE64370-16212 48,208
Family Resource Center 11000-SDE64370-16110 101,530
State School Breakfast 11000-SDE64370-17046 25,804
Non-Public Health Services 11000-SDE64370-17034 112,530
Magnet School - Operating 11000-SDE64370-17057 26,000
Low Performing School Improvement 12052-SDE64370-43728 39,787
Early Childhood Bond Funds 12052-SDE64370-43540 13,704
Talent Development 11000-SDE64370-12552 8,872
Education Cost Sharing - Alliance District 11000-SDE64000-17041-82164 5,487,186
Bilingual Education 11000-SDE64370-17042 6,986
School-based Diversion Initiative 11000-SDE64370-12587 50,000
Urban Action Bond 13019-SDE64370-44600 440,031
Total Department of Education $ 7,025,059 -
Department of Family and Children Services:

Youth Services Bureau 11000-SDE64370-17052 $ 32,288
Youth Services Bureau - Enhancement 11000-SDE64370-16201 13,070
Total Department of Family and Children Services $ 45,358 -
Department of Transportation:
Town Aid Road Grants - STO 13033-DOT57131-43459 $ 336,082
Town Aid Road Grants - Municipal 12052-DOT57131-43455 336,082
Total Department of Transportation $ 672,164 -
Department of Economic and Community Development:

Urban Action Bond 13019-ECD46200-41240 $ 250,000
Total Department of Economic and Community Development $ 250,000 -

Municipal Special Purposes and Projects 12052-OPM20600-43587 $ 286,689
Local Capital Improvement Program 12050-OPM20600-40254 50,850
Property Tax Relief for Veterans 11000-OPM20600-17024 120,983
Property Tax Relief - Disabled 11000-OPM20600-17011 10,247
Payment in Lieu of Taxes on State - Owned Prop. 11000-OPM20600-17004 662,757
Payment in Lieu of Taxes on Private Colleges 11000-OPM20600-17006 2,359,751
Total Office of Policy and Management $ 3,491,277 -
Connecticut State Library:

Document Preservation Grant 12060-CSL66094-35150 $ 7,500
Connecticard Payments 11000-CSL66051-17010 4,554
Total Connecticut State Library $ 12,054 -
Office of Early Childhood:

Early Childhood Program 11000-OEC64845-16274 $ 791,707 791,707
Early Childhood Program 11000-OEC64841-16274 98,387
School Readiness Quality Enhancement 11000-OEC64845-17097 3,881
Total Office of Early Childhood $ 893,975 791,707
(continued)

17
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE

State Grantor/Pass-Through State Core-CT Passed

Grantor/Program Title Identification Number Expenditures Through
Department of Environmental Protection:

Community Conservation and Development 13019-DEP43153-41239 $ 30,000
Connecituct Bikeways 12052-DEP43930-35169 181,171
Total Department of Environmental Protection $ 211,171 -

State 911 Enhancement 12060-DPS32741-35190 $ 147,437
Total Department of Public Safety $ 147,437 -
Total State Financial Assistance

Before Exempt Programs $ 12,748,495 791,707
Exempt Programs

Mashantucket Pequot and Mohegan Fund Grant 12009-OPM20600-17005 $ 725,946
Municipal Transit Grant 11000-OPM20600-17103 95,062
Municipal Stabilization Grant 11000-OPM20600-17104 1,646,236
Total Office of Policy and Management $ 2,467,244 -
Education Cost - Sharing 11000-SDE64000-17041 $ 22,937,247
Excess Cost - Student Based 11000-SDE64000-17047 2,118,577
School Construction 1,250,293
Total Department of Education $ 26,306,117 -
Total Exempt Programs $ 28,773,361 -
Total State Financial Assistance $ 41,521,856 791,707

18
NOTES TO THE SCHEDULE OF EXPENDITURES OF

STATE FINANCIAL ASSISTANCE
The accompanying schedule of expenditures of state financial assistance includes state

grant activity of the Town of Hamden, Connecticut under programs of the State of
Connecticut for the fiscal year ended June 30, 2020. Various departments and agencies
of the State of Connecticut have provided financial assistance through grants and other
authorizations in accordance with the General Statutes of the State of Connecticut.
These financial assistance programs fund several programs including education, public
safety, and general government services.
1. Summary of Significant Accounting Policies
The accounting policies of the Town of Hamden, Connecticut conform to

accounting principles generally accepted in the United States of America as
applicable to governments.
The information in the Schedule of Expenditures of State Financial Assistance is

presented based upon regulations established by the State of Connecticut Office of
Policy and Management.
Basis of Accounting
The financial statements contained in the Town’s annual audit report are
prepared on the modified accrual basis. The following is a summary of such
basis:
Revenues are recognized when earned and available. Certain grants are
recognized based on grant award since they are considered entitlement
grants; other grants, such as grants that are dependent upon expenditure
factor for determining eligibility, recognize grant revenue to the extent of
expenditures.
Expenditures are recorded when the related liability is incurred.

Encumbrances are reflected as a reserve against fund balance, and
accordingly, are not reflected as expenditures.
The Schedule of Expenditures of State Financial Assistance, contained in this

report, is prepared based on regulations established by the State of
Connecticut Office of Policy and Management. In accordance with Section 4-
236-22 of the Regulations to the State Single Audit Act, certain grants are not
dependent on expenditure activity, and accordingly, are considered to be
expended in the fiscal year of receipt. These grant program receipts are
reflected in the expenditures column of the Schedule of Expenditures of State
Financial Assistance.
19

I. SUMMARY OF AUDIT RESULTS
Type of auditor’s report issued: Unmodified
Internal Control Over Financial Reporting:

Significant deficiency(ies) identified? x yes none reported
Noncompliance material to financial statements

noted? yes x no
State Financial Assistance
Internal Control Over Major Programs:

Significant deficiency(ies) identified? yes x none reported
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be

reported in accordance with Section 4-236-24 of the
Regulations to the State Single Audit Act? yes x no
20

FOR THE FISCAL YEAR ENDED JUNE 30, 2020
The following schedule reflects the major programs included in the audit:
State Grantor and Program State Core – CT Number Expenditures

Office of Policy and Management
Payment in Lieu of Taxes on Private Colleges 11000-OPM20600-17006 $ 662,757
Office of Early Childhood:

Education Cost Sharing - Alliance District 11000-SDE64000-17041-82164 5,487,186
Dollar threshold used to distinguish type A and type B programs: $ 254,970
II. FINANCIAL STATEMENTS FINDINGS
 We issued reports, dated January 31, 2021 on internal control over financial
reporting and on compliance and other matters based on an audit of financial
statements performed in accordance with Government Auditing Standards.
 Our report on compliance indicated no reportable instances of noncompliance.
 Our report on internal control over financial reporting indicated no significant

deficiencies or material weaknesses.
III. STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS
No findings or questioned costs are reported relating to State Financial Assistance

Programs.
21

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TOWN OF HAMDEN, CONNECTICUT

ANNUAL FINANCIAL REPORT

Independent Auditor’s Report 1-2

Management’s Discussion and Analysis 3a-3f

Basic Financial Statements:

Government-Wide Financial Statements: Exhibit

Statement of Net Position (Deficit) A 4

Statement of Activities B 5-6

Fund Financial Statements:

Balance Sheet - Governmental Funds C 7

Statement of Revenues, Expenditures, and

Reconciliation of the Statement of Revenues,

Statement of Revenues, Expenditures and Changes in Unassigned

Statement of Net Position (Deficit) – Proprietary Funds G 11

Statement of Revenues, Expenses and Changes in

Statement of Cash Flows – Proprietary Funds I 13

Statement of Fiduciary Net Position (Deficit) – Fiduciary Funds J 14

Statement of Changes in Fiduciary Net Position (Deficit) –

Notes to Financial Statements 16-64

Required Supplementary Information:

Schedule of Changes in Net Pension Liability and Related

Schedule of Changes in Net OPEB Liability and Related

Schedule of Employer Contributions – Pension Plan RSI-3 67

Schedule of Town Contributions – Connecticut Municipal

Schedule of Employer Contributions – Other Post Employee Benefits RSI-5 69

Schedule of Investment Returns – Pension Plan RSI-6 70

Schedule of Investment Returns – Other Post Employee Benefits RSI-7 71

Schedule of the Town’s Proportionate Share of the Net

Schedule of the Town’s Proportionate Share of the Net

Schedule of the Town’s Proportionate Share of the Net

Supplemental and Combining Nonmajor

General Fund Revenues and Other Financing

General Fund Expenditures, Encumbrances

Non-Major Governmental Funds:

Combining Balance Sheet 3 79-82

Combining Statement of Revenues, Expenditures

Internal Service Funds:

Combining Statement of Net Fund Position (Deficit) 5 87

Combining Statement of Revenues, Expenses and

Combining Statement of Cash Flows 7 89

Private Purpose Trust Funds:

Combining Statement of Net Position 8 90

Combining Statement of Changes in Net Position 9 91

Combining Statement of Fiduciary Net Position 10 92

Combining Statement of Changes in Assets and

Schedule of Property Taxes Levied, Collected

Schedule of Debt Limitation 13 96-97

Report on the Financial Statements

Management’s Responsibility for the Financial Statements

Required Supplementary Information

Other Reporting Required by Government Auditing Standards

CLERMONT & ASSOCIATES, LLC

January 31, 2021

MANAGEMENT’S DISCUSSION AND ANALYSIS

JUNE 30, 2020

Overview of the Financial Statements

Government-Wide Financial Statements

Fund Financial Statements

Notes to the Financial Statements