Canton, Massachusetts · Saved source text
2008 Comprehensive Annual Financial Report (PDF)
Saved text from 109 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 41
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Major Fund Criteria
Major funds must be reported if the following criteria are met:
• If the total assets, liabilities, revenues, or expenditures/expenses of an individual governmental or
enterprise fund are at least 10 percent of the corresponding element (assets, liabilities, etc.) for all
funds of that category or type (total governmental or total enterprise funds), and
• If the total assets, liabilities, revenues, or expenditures/expenses of the individual governmental
fund or enterprise fund are at least 5 percent of the corresponding element for all governmental
and enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund.
Fiduciary funds are reported by fund type.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in
the fiscal year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
The statement of activities demonstrates the degree to which the direct expenses of a particular function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include the following:
• Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment.
• Grants and contributions that are restricted to meeting the operational requirements of a particular
function or segment.
• Grants and contributions that are restricted to meeting the capital requirements of a particular function or
segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. However, the effect of interfund services provided and used between functions is not eliminated as
the elimination of these charges would distort the direct costs and program revenues reported for the functions
affected.
Town of Canton, Massachusetts 34 Comprehensive Annual Financial ReportSource page 42
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 Fund Financial Statements Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. The Town considers property tax revenues available if they are collected within 60 days after fiscal year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The general fund is the primary operating fund. It is used to account for all financial resources, except those that are required to be accounted for in another fund. The roadway improvements fund is used to account for roadway improvements for which expenditures are reimbursed 100% by the Commonwealth. The high school construction fund is used to account for all financial resources relating to the construction of the new high school. The nonmajor governmental funds consist of special revenue, other capital projects, and permanent funds that are aggregated and presented in the nonmajor governmental funds column on the governmental funds financial statements. The following describes the general use of these fund types: The special revenue funds are used to account for the proceeds of specific revenue sources (other than permanent funds or capital projects funds) that are restricted by law or administrative action to expenditures for specified purposes. The capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by enterprise and trust funds). The permanent fund is used to account for financial resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. Proprietary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Town of Canton, Massachusetts 35 Comprehensive Annual Financial Report
Source page 43
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The water enterprise fund is used to account for the water activities. The sewer enterprise fund is used to account for the sewer activities. The rink enterprise fund is used to account for the skating rink activities. Additionally, the following proprietary fund type is reported: Internal service funds are an accounting device used to accumulate and allocate costs internally among various functions. The Town uses internal service funds to account for health claims, workers’ compensation, unemployment claims, and building insurance activities. Because these services primarily benefit governmental rather than business-type activities, they have been included within governmental activities in the government- wide financial statements. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the governmental programs. The following fiduciary fund types are reported: The private-purpose trust fund is used to account for trust arrangements that exclusively benefit individuals, private organizations, or other governments. Some of these trusts have donor restrictions and trustee policies that do not allow the endowment portion and any unrealized appreciation to be spent. The restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings. The Town’s private- purpose trust fund is primarily comprised of educational scholarships. The agency fund is used to account for assets held in a purely custodial capacity. This fund is used for performance bonds, student activity funds, security deposits, and licenses and fees collected on-behalf of the Commonwealth. Agency funds apply the accrual basis of accounting but do not have a measurement focus. Government-Wide and Fund Financial Statements Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and 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 business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. Town of Canton, Massachusetts 36 Comprehensive Annual Financial Report
Source page 44
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 D. Cash and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. E. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of accounting. The recognition of revenue related to accounts receivable reported in the governmental funds financial statements are reported under the modified accrual basis of accounting. Real Estate, Personal Property Taxes, Tax Deferrals and Tax Liens Property taxes are levied and based on values assessed on January 1st of every year. Assessed values are established by the Board of Assessor’s for 100% of the estimated fair market value. Taxes are due on August 1st, November 1st, February 1st and May 1st and are subject to penalties and interest if they are not paid by the respective due date. Property taxes levied are recorded as receivables in the fiscal year of the levy. Tax liens are processed within the first quarter following the close of the fiscal year on delinquent properties and are recorded as receivables in the fiscal year they are processed. Real estate receivables are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Personal property taxes cannot be secured through the lien process. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Motor Vehicle Excise Taxes Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles to the Town. The tax calculation is the fair value of the vehicle multiplied by $25 per $1,000 of value. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Town of Canton, Massachusetts 37 Comprehensive Annual Financial Report
Source page 45
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 User Fees Water and Sewer fees are billed quarterly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date. Water and sewer liens are processed in June of every year and are included as a lien on the property owner’s tax bill in the following fiscal year. Water and sewer user fees, related liens, and an unbilled estimate are recorded as receivables in the fiscal year of the levy. Water and sewer user fees are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Departmental and Other Departmental and other receivables consist primarily of ambulance fees and sewer betterments. The allowance for uncollectibles for ambulance is estimated based on historical trends and specific account analysis. Intergovernmental Various federal and state grants for operating and capital purposes are applied for and received annually. For non-expenditure driven grants, revenue is recognized as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants, revenue is recognized when the qualifying expenditures are incurred and all other grant requirements are met. These receivables are considered 100% collectible and therefore do not report an allowance for uncollectibles. F. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the government-wide and fund financial statements, and therefore are not reported. G. Capital Assets Government-Wide and Proprietary Fund Financial Statements Capital assets, which include land, land improvements, buildings, building improvements, machinery and equipment, vehicles, and infrastructure (e.g., roads, water mains, sewer mains, and similar items), are reported in the applicable governmental or business-type activity column of the government-wide financial statements. Capital assets are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. Construction period interest is capitalized on constructed capital assets except for the capital assets of the governmental activities column in the government-wide financial statements. All purchases and construction costs in excess of $25,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Town of Canton, Massachusetts 38 Comprehensive Annual Financial Report
Source page 46
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Capital assets (excluding land and construction-in-process) are depreciated on a straight-line basis. The
estimated useful lives of capital assets being depreciated are as follows:
Estimated
Useful
Life
Capital Asset Type (in years)
Land improvements…………………………… 20-50
Buildings………………………………………… 20-50
Building improvements………………………… 20-50
Machinery and equipment……………………… 3-20
Vehicles………………………………………… 5
Infrastructure…………………………………… 40-50
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset
lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the acquiring fund in the fiscal year of the purchase.
H. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may result in
amounts owed between funds.
Government-Wide Financial Statements
Any residual balances outstanding between the governmental activities and business-type activities are reported
in the statement of net assets as “internal balances”.
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual fund
statements. Receivables and payables resulting from these transactions are classified as “Due from other funds”
or “Due to other funds” on the balance sheet.
I. Interfund Transfers
During the course of its operations, resources are permanently reallocated between and within funds. These
transactions are reported as transfers in and transfers out.
Government-Wide Financial Statements
Transfers between and within governmental funds and fiduciary funds are eliminated from the governmental
activities in the statement of activities. Any residual balances outstanding between the governmental activities
and business-type activities are reported in the statement of activities as “Transfers, net”.
Town of Canton, Massachusetts 39 Comprehensive Annual Financial ReportSource page 47
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 Fund Financial Statements Transfers between and within funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. J. Deferred Revenue Deferred revenue at the governmental fund financial statement level represents billed receivables that do not meet the available criterion in accordance with the current financial resources measurement focus and the modified accrual basis of accounting. Deferred revenue is recognized as revenue in the conversion to the government-wide (full accrual) financial statements. K. Net Assets and Fund Equity Government-Wide Financial Statements (Net Assets) Net assets reported as “invested in capital assets, net of related debt” includes capital assets, net of accumulated depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital related debt are not considered to be capital assets. Outstanding debt related to future reimbursements from the state’s school building program is not considered to be capital related debt. Net assets are reported as restricted when amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Net assets have been “restricted for” the following: “Permanent funds - expendable” represents the amount of realized and unrealized investment earnings of donor restricted trusts. The donor restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings that support governmental programs. “Permanent funds - nonexpendable” represents the endowment portion of donor restricted trusts that support governmental programs. “Other specific purposes” represents restrictions placed on assets from outside parties for gifts and grants. Fund Financial Statements (Fund Balances) Fund balances are reserved for amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Designations of fund balance represent tentative management plans that are subject to change. Fund balances have been “reserved for” the following: “Encumbrances and continuing appropriations” represents amounts obligated under purchase orders, contracts and other commitments for expenditures that are being carried over to the ensuing fiscal year. “Perpetual permanent funds” represents amounts held in trust for which only investment earnings may be expended. Town of Canton, Massachusetts 40 Comprehensive Annual Financial Report
Source page 48
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 Fund balances have been “designated for” the following: “Subsequent year’s expenditures” represents amounts appropriated for the subsequent fiscal year’s operating budget. L. Long-term debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net assets. Material bond premiums and discounts 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. Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources. Bond premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual bond proceeds received, are reported as general government expenditures. M. Investment Income Excluding the permanent funds, investment income derived from major and nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL). Investment income from the proprietary funds is retained in the respective funds. N. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave, which will be liquidated with expendable available financial resources upon maturity of the liability, are reported as expenditures and fund liabilities. O. Post Retirement Benefits Government-Wide and Fund Financial Statements In addition to providing pension benefits, the Town provides health, dental, and life insurance coverage for retired employees and their survivors in accordance with MGL, Chapter 32, on a pay-as-you-go basis. The cost of providing health insurance is recognized by recording the employer’s 75% share of insurance premiums in the general fund in the fiscal year paid. For the fiscal year ended June 30, 2008, this expense/expenditure totaled approximately $3,176,000. There were 420 participants eligible to receive benefits at June 30, 2008. Town of Canton, Massachusetts 41 Comprehensive Annual Financial Report
Source page 49
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 P. Fund Deficits The Police Special Detail Fund, a sub-fund of Other Departmental Funds and classified as non-major governmental funds, had a deficit balance of $22,779 at June 30, 2008. This deficit will be funded from contributions or other available funds in fiscal year 2009. Three Capital Projects Funds, classified as non-major governmental funds, had a combined deficit balance of $2,252,338 at June 30, 2008. This deficit will primarily be funded when $2,676,000 in bond anticipation notes are converted into long-term debt. $20,647 of the deficit will be funded from contributions or other available funds in fiscal year 2009. The Workers’ Compensation Fund, classified as an internal service fund, had a deficit balance of $4,338 at June 30, 2008. This deficit will be funded from contributions or other available funds in fiscal year 2009. Q. Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the fiscal year. Actual results could vary from estimates that were used. R. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. NOTE 2 – CASH AND INVESTMENTS A cash and investment pool is maintained that is available for use by all funds. Each fund type's portion of this pool is displayed on the balance sheet as "Cash and cash equivalents". The deposits and investments of the trust funds are held separately from those of other funds. Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment Pool (the Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth. The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts Municipal Depository Trust (MMDT), which was established by the Treasurer of the Commonwealth who serves as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares. Town of Canton, Massachusetts 42 Comprehensive Annual Financial Report
Source page 50
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the Town’s deposits may not be returned
to it. The Town does not have a deposit policy for custodial credit risk. At fiscal year-end, the carrying amount of
deposits totaled $24,777,359 and the bank balance totaled $26,319,888. Of the bank balance, $1,174,267 was
covered by Federal Depository Insurance, $11,814,395 was covered by the Depositors Insurance Fund,
$1,134,644 was covered by the Share Insurance Fund, $5,161,992 was collateralized and $7,034,590 was
exposed to custodial credit risk because it was uninsured and uncollateralized.
Investments
As of June 30, 2008, the Town of Canton had the following investments:
Maturity
Fair Value Under 1 Year 1-5 Years 6-10 Years
Investment Type
Debt Securities:
Federal Home Loan Banks……………………$ 199,552 $ 70,542 $ 129,010 $ -
Federal Home Loan Mortgage Corp………… 136,542 - 136,542 -
Federal Home Loan Mortgage Corp. Gold… 5,731 - 5,731 -
Federal National Mortgage Association……… 307,122 - 272,956 34,166
United States Treasury Notes………………… 384,238 51,479 229,439 103,320
Total Debt Securities................................... 1,033,185 $ 122,021 $ 773,678 $ 137,486
Other Investments:
MMDT…………………………………………… 8,200,915
Total Investments........................................$ 9,234,100
Custodial Credit Risk – Investments
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to
recover the value of its investments or collateral security that are in the possession of an outside party. The Town
has a custodial credit risk exposure of $1,033,185 because the related debt securities are uninsured, unregistered
and held by the counterparty. The investments in MMDT are not exposed to custodial credit risk because their
existence is not evidenced by securities that exist in physical or book entry form. The Town does not have an
investment policy related to custodial credit risk.
Interest Rate Risk
The Town does not have a formal investment policy that limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates.
Town of Canton, Massachusetts 43 Comprehensive Annual Financial ReportSource page 51
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Credit Risk
The Town has not adopted a formal policy related to Credit Risk. Moody’s Investors Service rated all debt
securities as AAA and MMDT is unrated.
Concentration of Credit Risk
The Town places no limit on the amount the government may invest in any one issuer. The Town has 11% of
investments in US government backed securities and 89% in MMDT.
NOTE 3 – RECEIVABLES
At June 30, 2008, receivables for the individual major and non-major governmental funds in the aggregate,
including the applicable allowances for uncollectible accounts, are as follows:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes…………$ 595,414 $ (163,037) $ 432,377
Tax liens…………………………………………… 826,097 - 826,097
Motor vehicle and other excise taxes…………… 794,470 (277,449) 517,021
Departmental and other…………………………… 757,954 (418,816) 339,138
Intergovernmental………………………………… 13,682,544 - 13,682,544
Total…………………………………………………
$ 16,656,479 $ (859,302) $ 15,797,177
At June 30, 2008, receivables for the proprietary funds consist of the following:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Water fees……………………………………………$ 1,329,302 $ - $ 1,329,302
Sewer fees…………………………………………… 1,175,577 - 1,175,577
Special assessments……………………………… 28,584 - 28,584
Rink Fees…………………………………………… 740 - 740
Total…………………………………………………
$ 2,534,203 $ - $ 2,534,203
Town of Canton, Massachusetts 44 Comprehensive Annual Financial ReportSource page 52
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Governmental funds report deferred revenue in connection with receivables and other assets for revenues that
are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of deferred revenue reported in the governmental funds were as follows:
Other
General Governmental
Fund Funds Total
Receivable and other asset type:
Real estate and personal property taxes…………$ 167,540 $ - $ 167,540
Tax Liens…………………………………………… 826,097 - 826,097
Motor vehicle excise taxes………………………… 517,021 - 517,021
Departmental and other…………………………… - 339,138 339,138
Intergovernmental………………..………………… 5,186,347 7,528,720 12,715,067
Tax foreclosures…………………………………… 136,821 - 136,821
Total…………………………………………………$ 6,833,826 $ 7,867,858 $ 14,701,684
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2008, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land……………………………………………………$ 10,765,068 $ - $ - $ 10,765,068
Construction in progress…………………………… 2,035,244 2,963,470 (227,000) 4,771,714
Total capital assets not being depreciated…… 12,800,312 2,963,470 (227,000) 15,536,782
Capital assets being depreciated:
Land improvements………………………………… 2,555,735 - - 2,555,735
Buildings……………………………………………… 75,336,473 - (342,000) 74,994,473
Building improvements……………………………… 15,317,365 227,000 - 15,544,365
Machinery and equipment…………………………… 3,740,102 691,357 (483,000) 3,948,459
Vehicles……………………………………………… 3,637,986 246,328 (95,158) 3,789,156
Infrastructure………………………………………… 9,031,430 137,980 - 9,169,410
Total capital assets being depreciated………… 109,619,091 1,302,665 (920,158) 110,001,598
Less accumulated depreciation for:
Land improvements………………………………… (266,138) (127,787) - (393,925)
Buildings.……………………………………………… (10,557,138) (1,806,947) - (12,364,085)
Building improvements……………………………… (6,392,226) (751,593) - (7,143,819)
Machinery and equipment…………………………… (1,710,860) (286,970) 483,000 (1,514,830)
Vehicles……………………………………………… (3,011,728) (319,697) 95,158 (3,236,267)
Infrastructure………………………………………… (1,989,910) (227,509) - (2,217,419)
Total accumulated depreciation………………… (23,928,000) (3,520,503) 578,158 (26,870,345)
Total capital assets being depreciated, net…………… 85,691,091 (2,217,838) (342,000) 83,131,253
Total governmental activities capital assets, net………$ 98,491,403 $ 745,632 $ (569,000) $ 98,668,035
Town of Canton, Massachusetts 45 Comprehensive Annual Financial ReportSource page 53
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Beginning Ending
Balance Increases Decreases Balance
Water Activities:
Capital assets not being depreciated:
Land……………………………………………………$ 624,852 $ - $ - $ 624,852
Construction in progress…………………………… 1,505,637 1,534,392 (806,716) 2,233,313
Total capital assets not being depreciated…… 2,130,489 1,534,392 (806,716) 2,858,165
Capital assets being depreciated:
Buildings.……………………………………………… 4,139,989 - - 4,139,989
Vehicles……………………………………………… 363,782 - - 363,782
Machinery and equipment…………………………… - 593,185 - 593,185
Infrastructure………………………………………… 14,576,575 213,531 - 14,790,106
Total capital assets being depreciated………… 19,080,346 806,716 - 19,887,062
Less accumulated depreciation for:
Buildings.……………………………………………… (1,624,279) (77,764) - (1,702,043)
Machinery and equipment…………………………… - (29,659) - (29,659)
Vehicles……………………………………………… (318,982) (12,800) - (331,782)
Infrastructure………………………………………… (7,302,851) (292,608) - (7,595,459)
Total accumulated depreciation………………… (9,246,112) (412,831) - (9,658,943)
Total capital assets being depreciated, net…………… 9,834,234 393,885 - 10,228,119
Total business-type activities capital assets, net………$ 11,964,723 $ 1,928,277 $ (806,716) $ 13,086,284
Beginning Ending
Balance Increases Decreases Balance
Sewer Activities:
Capital assets not being depreciated:
Construction in progress…………………………… $ 559,953 $ 295,229 $ - $ 855,182
Total capital assets not being depreciated…… 559,953 295,229 - 855,182
Capital assets being depreciated:
Buildings.……………………………………………… 1,263,604 - - 1,263,604
Vehicles……………………………………………… 306,745 - - 306,745
Infrastructure………………………………………… 22,014,163 - - 22,014,163
Total capital assets being depreciated………… 23,584,512 - - 23,584,512
Less accumulated depreciation for:
Buildings.……………………………………………… (130,847) (31,590) - (162,437)
Vehicles……………………………………………… (274,546) (9,200) - (283,746)
Infrastructure………………………………………… (12,317,928) (419,524) - (12,737,452)
Total accumulated depreciation………………… (12,723,321) (460,314) - (13,183,635)
Total capital assets being depreciated, net…………… 10,861,191 (460,314) - 10,400,877
Total business-type activities capital assets, net………$ 11,421,144 $ (165,085) $ - $ 11,256,059
Town of Canton, Massachusetts 46 Comprehensive Annual Financial ReportSource page 54
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Beginning Ending
Balance Increases Decreases Balance
Rink Activities:
Capital assets being depreciated:
Building improvements……………………………… $ 139,960 $ - $ - $ 139,960
Machinery and equipment…………………………… 241,501 - - 241,501
Vehicles……………………………………………… 29,160 - - 29,160
Total capital assets being depreciated………… 410,621 - - 410,621
Less accumulated depreciation for:
Building improvements……………………………… (17,495) (6,998) - (24,493)
Machinery and equipment…………………………… (136,775) (8,650) - (145,425)
Vehicles……………………………………………… (29,160) - - (29,160)
Total accumulated depreciation………………… (183,430) (15,648) - (199,078)
Total capital assets being depreciated, net…………… 227,191 (15,648) - 211,543
Total business-type activities capital assets, net………$ 227,191 $ (15,648) $ - $ 211,543
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government……………………………………………………………… $ 47,163
Public safety………………………………………………………………………… 614,592
Education…………………………………………………………………………… 2,191,618
Public works………………………………………………………………………… 335,570
Human services…………………………………………………………………… 10,518
Culture and recreation……………………………………………………………… 321,042
Total depreciation expense - governmental activities………………………………… $ 3,520,503
Business-Type Activities:
Water………………………………………………………………………………… $ 412,831
Sewer………………………………………………………………………………… 460,314
Rink…………………………………………………………………………………… 15,648
Total depreciation expense - business-type activities………………………………… $ 888,793
Town of Canton, Massachusetts 47 Comprehensive Annual Financial ReportSource page 55
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
NOTE 5 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables for the fiscal year ended June 30, 2008 relate to a 10 year non-interest
bearing loan between the Stoughton Mitigation Fund and the Water Fund with annual payments of $36,200
through FY2013.
Receivable Fund Payable Fund Amount
Stoughton Mitigation Fund Water Fund $ 181,000
Interfund transfers for the fiscal year ended June 30, 2008, are summarized as follows:
Transfers In:
Nonmajor Internal
General Governmental Service
Transfers Out: Fund Funds Fund Total
General Fund……………………… $ - $ 694,124 $ - $ 694,124
Nonmajor Governmental Funds… 1,086,678 77,300 - 1,163,978
Water Enterprise Fund…………… 586,759 - - 586,759
Sewer Enterprise Fund…………… 318,943 - - 318,943
Rink Enterprise Fund……………… 63,399 - - 63,399
Internal Service Funds…………… - - 50,000 50,000
Total…………………………………$ 2,055,779 $ 771,424 $ 50,000 $ 2,877,203
The enterprise transfers to the general fund are for their share of indirect charges. The general fund transfers out
are $525,000 to fund the stabilization fund: $89,124 to fund capital projects funds; and $80,000 for retirement buy
back reserves. The nonmajor funds transferred $77,300 between other nonmajor funds; and $1,086,678 to the
general fund to fund budgeted expenditures. The internal service funds transferred $50,000 from the
unemployment claims fund to the workers’ compensation fund to offset a prior year deficit.
NOTE 6 – SHORT-TERM FINANCING
Short-term debt may be authorized and issued to fund the following:
• Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation
notes (RANS or TANS).
• Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS).
Short-term loans are general obligations and carry maturity dates that are limited by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the General Fund and Enterprise
Funds, respectively.
Town of Canton, Massachusetts 48 Comprehensive Annual Financial ReportSource page 56
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Details related to the short-term debt activity for the fiscal year ended June 30, 2008, is as follows:
Balance at Balance at
Rate June 30, Renewed/ Retired/ June 30,
Type Purpose (%) Due Date 2007 Issued Redeemed 2008
BAN Capital improvements………………… 4.0% 05/30/08 $ 1,186,000 $ - $ 1,186,000 $ -
BAN Capital improvements………………… 4.0% 01/18/08 1,757,000 - 1,757,000 -
GAN Highway……………………………… 4.0% 07/27/07 400,000 - 400,000 -
GAN Highway……………………………… 3.9% 07/27/07 1,000,000 - 1,000,000 -
BAN Capital improvements………………… 2.5% 05/29/09 - 2,676,000 - 2,676,000
SAN Highway……………………………… 2.6% 07/21/08 - 1,000,000 - 1,000,000
SAN Highway……………………………… 2.6% 07/21/08 - 1,000,000 - 1,000,000
Sub-total governmental notes……… 4,343,000 4,676,000 4,343,000 4,676,000
BAN Sewer System Improvements……… 4.0% 05/30/08 205,000 - 205,000 -
BAN Sewer System Improvements……… 4.0% 01/18/08 100,000 - 100,000 -
BAN Water System Improvements……… 4.0% 05/30/08 1,254,700 - 1,254,700 -
BAN Water System Improvements……… 4.0% 01/18/08 1,596,000 - 1,596,000 -
BAN Sewer System Improvements……… 2.5% 05/29/09 - 305,000 - 305,000
BAN Water System Improvements……… 2.5% 05/29/09 - 3,796,400 - 3,796,400
-
Sub-total business-type notes……… 3,155,700 4,101,400 3,155,700 4,101,400
Total notes payable…………………… $ 7,498,700 $ 8,777,400 $ 7,498,700 $ 8,777,400
NOTE 7 – LONG-TERM DEBT
Under the provisions of Chapter 44, Section 10, Municipal Law authorizes indebtedness up to a limit of 5% of the
equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the
debt limit". In addition, however, debt may be authorized in excess of that limit for specific purposes. Such debt,
when issued, is designated as being "outside the debt limit".
In prior fiscal years, certain general obligation bonds were defeased by placing the proceeds of bonds in an
irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, neither the
assets in escrow nor the liability for the defeased bonds are included in the Town’s financial statements. At June
30, 2008, $5,340,000 of bonds outstanding is considered defeased.
During fiscal year 2008, the Town has issued $1,539,000 of general obligation bonds with an average interest
rate of 3.45% to refund $1,520,000 of general obligation bonds with an average interest rate of 5.25%. Through
this current refunding, the Town has taken advantage of lower interest rates to realize a decrease in its aggregate
debt service payments by approximately $89,900 over the next 9 years. The Town also realized an economic
gain (the difference between the present values of the debt service payments of the refunded debt and refunding
bonds) of approximately $74,800.
In January 2008, the Town also issued $3,599,000 of new general obligation bonds. The proceeds of these
bonds were used to retire $3,453,000 of maturing bond anticipation notes and to provide permanent financing for
several capital projects primarily including $1,596,000 for the Water System Expansion project, $855,000 for
department equipment upgrades and acquisitions, and $552,000 for School Building Remodeling projects. All
water and sewer debt is expected to be self-supporting through user fees.
Town of Canton, Massachusetts 49 Comprehensive Annual Financial ReportSource page 57
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Details related to the outstanding indebtedness at June 30, 2008, and the debt service requirements are as
follows:
Bonds and Notes Payable - Governmental Funds
Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2007 Issued Redeemed 2008
Building remodeling………………………………… 4.95-5.50% $ 775,000 $ - $ 775,000 $ -
Land acquisition……………………………………… 4.95-5.50% 450,000 - 450,000 -
Land acquisition……………………………………… 4.75-5.75% 516,000 - 172,000 344,000
Building remodeling………………………………… 4.75-5.75% 609,000 - 203,000 406,000
Data processing equipment………………………… 4.75-5.75% 485,000 - 250,000 235,000
Building remodeling………………………………… 3.50-5.00% 1,055,000 - 100,000 955,000
School project………………………………………… 3.50-5.00% 6,835,000 - 490,000 6,345,000
Engineering services………………………………… 2.00-4.75% 35,000 - 35,000 -
Drainage……………………………………………… 2.00-4.75% 195,000 - 15,000 180,000
Land acquisition……………………………………… 2.00-4.75% 1,311,725 - 28,260 1,283,465
School construction………………………………… 2.00-4.75% 17,000,000 - 1,000,000 16,000,000
Building remodeling………………………………… 2.00-4.75% 10,720,000 - 715,000 10,005,000
Energy conservation - school……………………… 2.00-4.75% 385,000 - 30,000 355,000
Off street parking - school………………………… 2.00-4.75% 30,000 - 30,000 -
Departmental equipment…………………………… 2.00-4.75% 255,000 - 40,000 215,000
Refunding…………………………………………… 2.00-4.75% 2,190,360 - 27,760 2,162,600
ADA renovations…………………………………… 4.10% 1,607,000 - 92,000 1,515,000
Fire station…………………………………………… 4.10% 1,598,000 - 98,000 1,500,000
Revere fire station…………………………………… 4.10% 708,000 - 40,000 668,000
Fire engine…………………………………………… 3.90% 114,000 - 18,000 96,000
School remodeling…………………………………… 4.00% 263,000 - 17,000 246,000
Hansen school plumbing…………………………… 4.00% 132,000 - 9,000 123,000
Kennedy school boiler……………………………… 4.10% 270,000 - 16,000 254,000
School remodeling…………………………………… 4.00-4.10% 1,434,000 - 100,000 1,334,000
Highway truck………………………………………… 4.00% 133,000 - 17,000 116,000
Ladder truck………………………………………… 4.00% 540,000 - 60,000 480,000
Fire tanker truck……………………………………… 4.00% 265,000 - 30,000 235,000
Streetlights…………………………………………… 4.00% 295,000 - 33,000 262,000
Surface drain………………………………………… 4.10% 94,000 - 6,000 88,000
Land acquisition……………………………………… 3.50-4.00% - 405,500 - 405,500
Building remodeling………………………………… 3.50-4.00% - 455,500 - 455,500
School remodeling…………………………………… 3.50-4.00% - 223,000 - 223,000
Outdoor recreational facility………………………… 3.50-3.85% - 70,000 - 70,000
Departmental equipment…………………………… 3.50% - 785,000 - 785,000
Building remodeling--School……………………… 3.50-4.00% - 552,000 - 552,000
Dam construction…………………………………… 3.50% - 350,000 - 350,000
Surface Drain………………………………………… 3.50-4.00% - 150,000 - 150,000
Total governmental bonds payable………………… 50,300,085 2,991,000 4,897,020 48,394,065
Add unamoritzed premium………………………… 517,544 - 54,144 463,400
Less unamortized loss on bond refunding, net…. (303,063) - (44,375) (258,688)
Total governmental bonds payable, net…………… $ 50,514,566 $ 2,991,000 $ 4,906,789 $ 48,598,777
Town of Canton, Massachusetts 50 Comprehensive Annual Financial ReportSource page 58
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Debt service requirements for principal and interest for Governmental bonds payable in future fiscal years are as
follows:
Principal Interest Total
2009…………… $ 3,929,020 $ 1,980,712 $ 5,909,732
2010…………… 3,676,750 1,869,779 5,546,529
2011…………… 3,661,880 1,711,516 5,373,396
2012…………… 3,648,220 1,582,150 5,230,370
2013…………… 3,563,270 1,449,236 5,012,506
2014…………… 3,535,245 1,312,148 4,847,393
2015…………… 3,466,190 1,171,512 4,637,702
2016…………… 3,411,140 1,011,815 4,422,955
2017…………… 3,210,100 857,646 4,067,746
2018…………… 2,896,475 715,654 3,612,129
2019…………… 2,719,000 585,481 3,304,481
2020…………… 2,608,775 473,183 3,081,958
2021…………… 2,578,000 362,346 2,940,346
2022…………… 2,048,000 252,219 2,300,219
2023…………… 1,828,000 157,443 1,985,443
2024…………… 1,369,000 72,863 1,441,863
2025…………… 209,000 12,517 221,517
2026…………… 36,000 1,120 37,120
Totals……………$ 48,394,065 $ 15,579,340 $ 63,973,405
Bonds and Notes Payable Schedule – Water Enterprise Fund
Water Fund Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2007 Issued Redeemed 2008
Well Field Development…………………………… 4.95-5.50% $ 250,000 $ - $ 250,000 $ -
Water………………………………………………… 4.95-5.50% 250,000 - 250,000 -
Water………………………………………………… 4.75-5.75% 13,000 - 5,000 8,000
Well…………………………………………………… 4.75-5.75% 29,000 - 10,000 19,000
Pumping Station……………………………………… 4.75-5.75% 54,000 - 18,000 36,000
Well…………………………………………………… 2.00-4.75% 1,180,000 - 70,000 1,110,000
Refunding…………………………………………… 2.00-4.75% 328,620 - 4,205 324,415
Water Pipe…………………………………………… 4.10% 310,000 - 18,000 292,000
Water Main Replacement…………………………… 4.10% 646,000 - 36,000 610,000
Water………………………………………………… 3.50-4.00% - 228,000 - 228,000
Well Field Development…………………………… 3.50-4.00% - 227,000 - 227,000
Water Departmental Equipment…………………… 3.50% - 396,000 - 396,000
Water Departmental Equipment…………………… 3.50% - 200,000 - 200,000
Water Mains………………………………………… 3.50-4.00% - 1,000,000 - 1,000,000
Total water bonds payable………………………… 3,060,620 2,051,000 661,205 4,450,415
Less unamortized loss on bond refunding, net…. (28,904) - (3,669) (25,235)
Total water bonds payable, net……….…………… $ 3,031,716 $ 2,051,000 $ 657,536 $ 4,425,180
Town of Canton, Massachusetts 51 Comprehensive Annual Financial ReportSource page 59
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Debt service requirements for principal and interest for the water enterprise fund bonds and notes payable in
future fiscal years are as follows:
Principal Interest Total
2009…………… $ 342,205 $ 195,289 $ 537,494
2010…………… 340,495 178,988 519,483
2011…………… 335,600 164,500 500,100
2012…………… 334,135 150,417 484,552
2013…………… 331,675 136,221 467,896
2014…………… 331,440 121,786 453,226
2015…………… 328,960 106,571 435,531
2016…………… 328,465 105,678 434,143
2017…………… 297,735 75,219 372,954
2018…………… 209,315 60,627 269,942
2019…………… 207,000 52,025 259,025
2020…………… 206,390 43,921 250,311
2021…………… 177,000 36,265 213,265
2022…………… 177,000 29,169 206,169
2023…………… 172,000 21,539 193,539
2024…………… 171,000 14,038 185,038
2025…………… 106,000 6,556 112,556
2026…………… 54,000 2,160 56,160
Totals……………$ 4,450,415 $ 1,500,969 $ 5,951,384
Bonds and Notes Payable Schedule – Sewer Enterprise Fund
Sewer Fund Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2007 Issued Redeemed 2008
Sewer………………………………………………… 4.75-5.75% $ 654,000 $ - $ 217,000 $ 437,000
Sewer………………………………………………… 3.50-5.00% 1,050,000 - 75,000 975,000
Sewer………………………………………………… 2.00-4.75% 315,000 - 20,000 295,000
Refunding…………………………………………… 3.25-4.00% 2,324,295 - 29,775 2,294,520
Sewer I&I……………………………………………… 4.10% 534,000 - 30,000 504,000
Estey Way Sewer…………………………………… 4.10% 202,000 - 12,000 190,000
Wardwell Sewer……………………………………… 4.10% 205,000 - 13,000 192,000
MWRA………………………………………………… 0% 160,160 - 40,040 120,120
Sewer………………………………………………… 3.50-4.00% - 96,000 - 96,000
Total sewer bonds payable……………………….. 5,444,455 96,000 436,815 5,103,640
Less unamortized loss on bond refunding, net…. (206,558) - (25,823) (180,735)
Total sewer bonds payable, net……….…………… $ 5,237,897 $ 96,000 $ 410,992 $ 4,922,905
Town of Canton, Massachusetts 52 Comprehensive Annual Financial ReportSource page 60
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Debt service requirements for principal and interest for the sewer enterprise fund bonds and notes payable in
future fiscal years are as follows:
Principal Interest Total
2009…………… $ 446,815 $ 193,313 $ 640,128
2010…………… 447,795 175,442 623,237
2011…………… 442,560 159,521 602,081
2012…………… 392,645 145,705 538,350
2013…………… 385,055 131,790 516,845
2014…………… 383,315 117,650 500,965
2015…………… 379,850 102,824 482,674
2016…………… 375,395 88,163 463,558
2017…………… 367,165 73,588 440,753
2018…………… 364,210 58,943 423,153
2019…………… 359,000 43,866 402,866
2020…………… 344,835 28,870 373,705
2021…………… 145,000 18,274 163,274
2022…………… 70,000 11,653 81,653
2023…………… 70,000 8,649 78,649
2024…………… 70,000 5,612 75,612
2025…………… 55,000 2,550 57,550
2026…………… 5,000 200 5,200
Totals……………$ 5,103,640 $ 1,366,613 $ 6,470,253
The Commonwealth has approved school construction assistance to the Town. The assistance program, which is
administered by the Massachusetts School Building Authority (MSBA), provides resources for future debt service
of general obligation school bonds outstanding. During fiscal year 2008, $510,685 of such assistance was
received. The Town will receive $6,359,440 in future fiscal years. Of this amount, $1,173,093 represents
reimbursement of long-term interest costs, and $5,186,347 represents reimbursement of approved construction
costs. Accordingly, a $5,186,347 intergovernmental receivable and corresponding deferred revenue have been
reported in the general fund. The net change in deferred revenue has been recognized as revenue in the
conversion to the government-wide financial statements.
The MSBA offers a construction grant program that pays the Town its share of the school construction and
therefore eliminates the need for the Town to fund the State’s share through long-term debt. The Canton High
School project is being funded by this grant program. The Town did not receive any grant funds for this project
during fiscal year 2008. The Town expects to receive the final MSBA grant payment of $4,459,400 in fiscal 2009.
Accordingly, a $4,459,400 intergovernmental receivable and corresponding deferred revenue have been reported
in the High School Construction Capital Projects Major Fund.
Town of Canton, Massachusetts 53 Comprehensive Annual Financial ReportSource page 61
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
The Town is subject to various debt limits by statute and may issue additional general obligation debt under the
normal debt limit. At June 30, 2008, the Town had the following authorized and unissued debt:
Purpose Amount
Ambulance Mangement System……………$ 20,000
Ambulance Replacement…………………… 215,000
Building A Elevator…………………………… 350,000
Dedham Street Drainage…………………..… 60,000
DPW Dump Truck…………………………… 148,000
DPW Garage…………………….…………… 150,000
Fiber Cables………………………………… 150,000
Fire Air Compressor………………………… 79,000
Greenlodge Street Interceptor……………… 7,019,000
High School Building B Upgrades………… 38,000
Ice Rink Zamboni…………………………… 85,000
Landfill Gas Venting………………………… 125,000
Middle School Roof Replacement………… 130,000
Police Station Flooring……………………… 200,000
Ponkapoag Fire Station Roof Repairs……… 40,000
Recreation Truck…………………………… 50,000
Rodman Building Asbestos Removal……… 100,000
Scada Upgrade & Trucks…………………… 560,000
School Building Improvements……………… 150,000
School HVAC………………………………… 245,000
School Maintenance Facility………………… 780,000
School Plumbing……………………………… 79,000
Senior Center ………………………………… 450,000
Senior Center Study………………………… 126,000
Septic Title V………………………………… 200,000
Sewer Infiltration & Inflow…………………… 1,586,290
Shepards Pond Dam………………………… 175,000
Sidewalk Tractor……………………………… 120,000
Washington Street Culvert Design………… 60,000
Water Mains………………………………… 100,000
Water Resource Management Plan……… 120,000
Water System Expansion…………………… 1,300,000
Water System Improvements……………… 2,171,000
Water Treatment Facility …………………… 9,000,000
Water Trucks………………………………… 25,600
Well # 9 Supplement………………………… 30,000
Total……………………………………………$ 26,236,890
Town of Canton, Massachusetts 54 Comprehensive Annual Financial ReportSource page 62
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Changes in long-term liabilities
During the fiscal year ended June 30, 2008, the following changes occurred in long-term liabilities:
Beginning Ending Current
Balance Additions Reductions Balance Portion
Governmental Activities:
Long-term bonds and notes……………………$ 50,300,085 $ 2,991,000 $ (4,897,020) $ 48,394,065 $ 3,929,020
Unamortized deferred loss on refunding…… (303,063) - 44,375 (258,688) (43,849)
Landfill closure………………………………… 482,000 165,000 (254,000) 393,000 83,000
Workers' compensation……………………… 282,000 18,000 (85,000) 215,000 145,000
Unamortized premium on bonds payable…… 517,544 - (54,144) 463,400 52,046
Compensated absences……………………… 1,203,000 704,000 (746,000) 1,161,000 724,000
Total governmental activities………………… $ 52,481,566 $ 3,878,000 $ (5,991,789) $ 50,367,777 $ 4,889,217
Business-Type Activities:
Long-term bonds and notes……………………$ 8,505,075 $ 2,147,000 $ (1,098,020) $ 9,554,055 $ 789,020
Unamortized deferred loss on refunding…… (235,462) - 29,492 (205,970) (29,149)
Compensated absences……………………… 158,000 90,000 (80,000) 168,000 88,000
Total business-type activities………………… $ 8,427,613 $ 2,237,000 $ (1,148,528) $ 9,516,085 $ 847,871
The governmental activities liabilities will be liquidated by the general fund with the exception of the workers’
compensation liability which will be liquidated by the internal service fund. The business-type liabilities will be
liquidated by the enterprise fund reporting the liability.
NOTE 8 – RISK FINANCING
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; and natural disasters for which the Town carries commercial insurance. The amount of claim
settlements has not exceeded insurance coverage in any of the previous three years.
The Town is self-insured for its health insurance and workers’ compensation activities. These activities are
accounted for in the Town’s internal service funds where revenues are recorded when earned and expenses are
recorded when the liability is incurred.
(a) Health Insurance
The estimate of Incurred But Not Reported (IBNR) claims based on a one and a half-month claims paid
average for twelve months prior to fiscal year-end. The Town purchases individual stop loss insurance
for claims in excess of the coverage provided by the Town in the amount of $100,000. At June 30, 2008,
the amount of the liability for health insurance claims totaled $1,221,000. This liability is the best estimate
based on available information. Changes in the reported liability since July 1, 2006, are as follows:
Town of Canton, Massachusetts 55 Comprehensive Annual Financial ReportSource page 63
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal Current
Fiscal Year Estimate Payments Year-End Portion
Fiscal Year 2007……….. $ 1,039,000 $ 9,193,703 $ (9,081,703) $ 1,151,000 $ 1,151,000
Fiscal Year 2008……….. 1,151,000 9,605,797 (9,535,797) 1,221,000 1,221,000
(b) Workers’ Compensation
Workers’ compensation claims submitted prior to July 1, 2006 are administered by a third party
administrator and are funded on a pay-as-you-go basis from annual appropriations. We are premium
based for all claims after July 1, 2006. The Town purchases individual stop loss insurance in
excess of the coverage provided by the Town in the amount of $300,000. The estimated future workers’
compensation liability is based on history and injury type.
At June 30, 2008, the amount of the liability for workers’ compensation claims totaled $215,000. This
liability is the Town’s best estimate based on available information. Changes in the reported liability since
July 1, 2006, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal Current
Fiscal Year Estimate Payments Year-End Portion
$
Fiscal Year 2007……….. $ 158,000 $ 250,837 $ (126,837) $ 282,000 85,000
Fiscal Year 2008……….. 282,000 31,443 (98,443) 215,000 145,000
NOTE 9 – PENSION PLAN
Plan Description - The Town contributes to the System, a cost-sharing multiple-employer defined benefit
pension plan administered by the Norfolk County Retirement Board (Board). Substantially all employees are
members of the System, except for public school teachers and certain administrators who are members of the
Massachusetts Teachers Retirement System, to which the Town does not contribute. Pension benefits and
administrative expenses paid by the Teachers Retirement Board are the legal responsibility of the
Commonwealth. The amount of these on-behalf payments totaled approximately $7 million for the fiscal year
ended June 30, 2008, and, accordingly, are reported in the general fund as intergovernmental revenues and
education expenditures.
The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of
the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments
granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth’s state law
during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living
adjustments granted after 1997 must be approved by the Norfolk County Retirement Board and are borne by the
System. The System issues a publicly available unaudited financial report in accordance with guidelines
established by the Commonwealth’s PERAC. That report may be obtained by contacting the System located at
480 Neponset Street, Building #15, P.O. Box 188, Canton, Massachusetts 02021-0188.
Town of Canton, Massachusetts 56 Comprehensive Annual Financial ReportSource page 64
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 Funding Policy - Plan members are required to contribute to the System at rates ranging from 5% to 11% of annual covered compensation. The Town is required to pay into the System its share of the system-wide actuarial determined contribution that is apportioned among the employers based on active current payroll. Administrative expenses are funded through investment earnings. Chapter 32 of the MGL governs the contributions of plan members and the Town. Annual Pension Cost - The Town’s contributions to the System for the fiscal years ended June 30, 2008, 2007, and 2006, were $2,251,358, $2,201,571, and $2,017,098, respectively, which equaled its required contribution for each fiscal year. Noncontributory Retirement Allowance – The Town pays the entire retirement allowance for certain retirees who are eligible for noncontributory benefits and are not members of the System. The general fund expenditure for fiscal year 2008 totaled approximately $47,710. NOTE 10 – LANDFILL POSTCLOSURE CARE COSTS State and Federal laws and regulations require the Town to perform certain maintenance and monitoring functions at the site after closure. The Town has closed the landfill and has recorded its estimated postclosure care costs to be $393,000 which has been recorded as a governmental activity liability at June 30, 2008. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. NOTE 11 – COMMITMENTS The Town has been awarded approximately $4.3 million in grant funds to cover costs associated with the Town’s Downtown Streetscape Project. At the end of fiscal 2008, approximately $1.5 million has been spent on the project. The Town expects the project to be completed in fiscal 2009. NOTE 12 – CONTINGENCIES The Town participates in a number of federal award programs. Although the grant programs have been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30, 2008, these programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although it is expected such amounts, if any, to be immaterial. Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not always predictable. Although the amount of liability, if any, at June 30, 2008, cannot be ascertained, management believes any resulting liability should not materially affect the financial position at June 30, 2008. NOTE 13 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS During fiscal year 2008, the following GASB pronouncements were implemented: Town of Canton, Massachusetts 57 Comprehensive Annual Financial Report
Source page 65
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2008 The GASB issued Statement #43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, which was required to be implemented in Fiscal 2008. Since there is no legally established separate trust for the postemployment benefit plan this pronouncement did not impact the basic financial statements. The GASB issued Statement #50, Pension Disclosures—an amendment of GASB Statements No. 25 and No. 27, which was required to be implemented in fiscal year 2008. This GASB has changed the disclosures related to pensions. The GASB issued Statement #52, Land and Other Real Estate Held as Investments by Endowments, which is required to be implemented in fiscal year 2009. Management elected to implement this standard early and this standard did not impact the basic financial statements. The GASB issued Statement #53, Accounting and Financial Reporting for Derivative Instruments, which is required to be implemented in fiscal year 2010. This standard requires governments to measure most derivative instruments at fair value in their financial statements that are prepared using the economic resources measurement focus and the accrual basis of accounting. Management elected to implement this standard early and this standard did not impact the basic financial statements. Other Future GASB Pronouncements: The GASB issued Statement #45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, which is required to be implemented in FY2009. Management believes this pronouncement will require additional disclosure and impact the basic financial statements. Town of Canton, Massachusetts 58 Comprehensive Annual Financial Report
Source page 66
Required Supplementary Information Required Supplementary Information Town of Canton, Massachusetts 59 Comprehensive Annual Financial Report
Source page 67
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2008
Budgeted Amounts
Actual Amounts Variance
Original Final Budgetary Carried Forward to Final
Budget Budget Amounts To Next Year Budget
REVENUES:
Real estate and personal property taxes,
net of tax refunds…………………………………………… $ 46,077,609 $ 46,077,609 $ 46,134,720 $ - $ 57,111
Tax liens……………………………………………………… - - 62,100 - 62,100
Motor vehicle and other excise taxes……………………… 3,300,000 3,300,000 3,426,512 - 126,512
Penalties and interest on taxes……………………………… 200,000 200,000 188,163 - (11,837)
Payments in lieu of taxes…………………………………… 160,000 160,000 191,827 - 31,827
Licenses and permits………………………………………… 700,000 700,000 669,240 - (30,760)
Fines and forfeitures………………………………………… 135,000 135,000 175,091 - 40,091
Intergovernmental…………………………………………… 7,000,339 7,000,339 7,566,115 - 565,776
Departmental and other……………………………………… 406,000 406,000 457,932 - 51,932
Investment income…………………………………………… 600,000 600,000 634,568 - 34,568
TOTAL REVENUES……………………………………… 58,578,948 58,578,948 59,506,268 - 927,320
EXPENDITURES:
Current:
General Government
Executive Branch………………………………………… 654,339 1,004,339 953,840 50,288 211
Executive Branch articles……………………………… 86,242 86,242 19,857 66,385 -
Finance Committee……………………………………… 12,703 12,703 8,755 - 3,948
Reserve Fund…………………………………………… 50,000 - - - -
Finance Department…………………………………… 888,875 888,875 798,305 90,393 177
Finance Department articles…………………………… 55,256 55,256 29,086 26,170 -
Assessors………………………………………………… 237,780 237,780 231,663 5,000 1,117
Water/Sewer Rate Committee………………………… 1,000 1,000 479 - 521
Town Clerk & Elections………………………………… 183,367 183,367 178,423 4,900 44
Town Clerk & Elections articles………………………… 54,193 54,193 2,600 51,593 -
Conservation Commission……………………………… 59,326 59,326 59,323 - 3
Planning Board…………………………………………… 49,904 49,904 49,458 - 446
Building Renovation Committee………………………… 3,381 3,381 880 - 2,501
Capital Outlay Committee……………………………… 2,556 2,556 84 - 2,472
Municipal Buildings……………………………………… 373,913 373,913 365,954 5,360 2,599
Municipal Buildings articles……………………………… 77,803 77,803 16,800 61,003 -
Town Insurance………………………………………… 735,000 735,000 724,786 - 10,214
Total……………………………………………………… 3,525,638 3,825,638 3,440,293 361,092 24,253
Public Safety
Fire Department………………………………………… 4,006,766 4,006,766 3,966,857 39,700 209
Fire Department articles………………………………… 26,378 26,378 929 25,071 378
Police……………………………………………………… 3,465,140 3,465,140 3,460,090 - 5,050
Police articles…………………………………………… 113,862 113,862 90,157 23,585 120
Building & Zoning………………………………………… 303,727 303,727 286,987 5,536 11,204
Building & Zoning articles……………………………… 22,000 22,000 21,549 - 451
Sealer of Weights & Measures………………………… 7,500 7,500 6,750 - 750
Emergency Management……………………………… 8,334 8,334 8,334 - -
Animal Control…………………………………………… 130,624 130,624 130,604 - 20
Town Emergency………………………………………… 8,875 8,875 4,000 - 4,875
Total……………………………………………………… 8,093,206 8,093,206 7,976,257 93,892 23,057
Education
School…………………………………………………… 25,152,023 25,152,023 25,088,571 63,449 3
School articles…………………………………………… 421,322 421,322 381,271 40,051 -
Blue Hills Regional……………………………………… 1,138,126 1,274,599 1,274,599 - -
Total……………………………………………………… 26,711,471 26,847,944 26,744,441 103,500 3
(Continued)
Town of Canton, Massachusetts 60 Comprehensive Annual Financial ReportSource page 68
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2008
Budgeted Amounts
Actual Amounts Variance
Original Final Budgetary Carried Forward to Final
Budget Budget Amounts To Next Year Budget
Public Works
Public Works……………………………………………… 1,819,633 1,819,633 1,789,964 26,856 2,813
Public Works articles…………………………………… 142,709 142,709 131,036 9,709 1,964
Street Lighting…………………………………………… 185,000 185,000 152,321 24,288 8,391
Snow & Ice……………………………………………… 415,898 565,898 565,898 - -
Trash Collection………………………………………… 1,573,148 1,423,148 1,360,409 62,090 649
Total……………………………………………………… 4,136,388 4,136,388 3,999,628 122,943 13,817
Health and Human Services
Health Department……………………………………… 279,346 279,346 268,980 2,303 8,063
Council on Aging………………………………………… 180,906 180,906 180,906 - -
Commission on Disability……………………………… 2,565 2,565 1,035 - 1,530
Veteran's Services……………………………………… 100,749 100,749 97,869 - 2,880
Total……………………………………………………… 563,566 563,566 548,790 2,303 12,473
Culture and Recreation
Recreation & Playground……………………………… 352,960 352,960 352,691 - 269
Recreation & Playground articles……………………… 60,879 60,879 59,398 1,054 427
Public Library…………………………………………… 884,974 884,974 884,967 - 7
Public Library articles…………………………………… 40,000 40,000 36,716 3,282 2
Historical Commission…………………………………… 3,669 3,669 3,335 - 334
Beautification Commission……………………………… 2,337 2,337 475 1,364 498
Total……………………………………………………… 1,344,819 1,344,819 1,337,582 5,700 1,537
Pension Benefits…………………………………………… 2,315,524 2,315,524 2,299,069 - 16,455
Employee Benefits
Unemployment Compensation………………………… 200,000 200,000 200,000 - -
Employer Share - Health………………………………… 7,997,133 7,860,660 7,795,025 - 65,635
Employer Share - Life…………………………………… 55,000 55,000 55,000 - -
Total……………………………………………………… 8,252,133 8,115,660 8,050,025 - 65,635
State and county charges…………………………………… 869,531 869,531 894,634 - (25,103)
Debt service…………………………………………………… 5,938,070 5,938,070 5,938,070 - -
TOTAL EXPENDITURES……………………………… 61,750,346 62,050,346 61,228,789 689,430 132,127
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES……………………………………… (3,171,398) (3,471,398) (1,722,521) (689,430) 1,059,447
OTHER FINANCING SOURCES (USES):
Premium from issuance of bonds…………………………… - - 24,307 - 24,307
Transfers in…………………………………………………… 2,048,095 2,048,095 2,055,779 - 7,684
Transfers out…………………………………………………… (694,124) (694,124) (694,124) - -
TOTAL OTHER FINANCING SOURCES (USES)…… 1,353,971 1,353,971 1,385,962 - 31,991
NET CHANGE IN FUND BALANCE…………………………… (1,817,427) (2,117,427) (336,559) (689,430) 1,091,438
BUDGETARY FUND BALANCE, Beginning of year………… 6,036,633 6,036,633 6,036,633 - -
BUDGETARY FUND BALANCE, End of year…………………$ 4,219,206 $ 3,919,206 $ 5,700,074 $ (689,430) $ 1,091,438
(Concluded)
See notes to required supplementary information.
Town of Canton, Massachusetts 61 Comprehensive Annual Financial ReportSource page 69
Norfolk County Contributory Retirement System
Schedule of Funding Progress
Fiscal Year Ending June 30, 2008
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
01/01/07 $ 533,077,948 $ 855,677,413 $ 322,599,465 62.3% $ 219,620,865 146.9%
01/01/05 467,186,566 762,900,650 295,714,084 61.2% 196,639,163 150.4%
01/01/03 415,150,776 675,275,257 260,124,481 61.5% 185,281,985 140.4%
01/01/00 371,646,793 533,959,970 162,313,177 69.6% 163,542,978 99.2%
01/01/97 258,771,070 392,463,080 133,692,010 65.9% 126,219,194 105.9%
01/01/93 151,546,609 291,472,940 139,926,331 52.0% 107,482,975 130.2%
The Town's share of the UAAL, as of January 1, 2007, is approximately 6.7%.
See notes to required supplementary information.
Town of Canton, Massachusetts 62 Comprehensive Annual Financial ReportSource page 70
Norfolk County Contributory Retirement System
Schedule of Employer Contributions
Fiscal Year Ending June 30, 2008
System Wide Town of Canton
(B/A)
Plan Year Annual (A) (B) District's Percentage
Ended Required Actual Percentage Actual of System Wide
December 31 Contributions Contributions Contributed Contributions Actual Contributions
2005 $ 28,238,996 $ 28,238,996 100% $ 1,747,497 6.19%
2006 31,755,708 31,755,708 100% 2,017,098 6.35%
2007 32,877,890 32,877,890 100% 2,201,571 6.70%
The Town's Actual Contributions equaled 100% of its Required Contribution for each year presented.
See notes to required supplementary information.
Town of Canton, Massachusetts 63 Comprehensive Annual Financial ReportSource page 71
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2008
NOTE A – BUDGETARY BASIS OF ACCOUNTING
Notes to Required Supplementary Information
A. Budgetary Information
Municipal Law requires the adoption of a balanced budget that is approved by the Finance Committee
(Committee). The Committee presents an annual budget to the Open Town Meeting, which includes estimates of
revenues and other financing sources and recommendations of expenditures and other financing uses. The
Town, which has full authority to amend and/or reject the budget or any line item, adopts the expenditure budget
by majority vote at the Annual Town Meeting. Changes subsequent to the approved annual budget require
majority vote at a Special Town Meeting.
The majority of the Town’s appropriations are non-continuing, which lapse at the end of each fiscal year. Others
are continuing appropriations for which the governing body has authorized that an unspent balance from a prior
fiscal year be carried forward and made available for spending in the current fiscal year. These carry forwards
are included as part of the subsequent fiscal year’s original budget.
Generally, expenditures may not exceed the legal level of spending authorized for an appropriation account.
However, the payment of debt service is statutorily required, regardless of whether such amounts are
appropriated. Additionally, expenditures for disasters, natural or otherwise, and final claims and judgments may
exceed the level of spending authorized by two-thirds majority vote at a special town meeting.
The Town adopts an annual budget for the general fund in conformity with the guidelines described above. The
fiscal year 2008 final budget includes approximately $62,744,000 in current year authorized appropriations and
other amounts to be raised.
The Town Accountant has the responsibility to ensure that budgetary control is maintained in the manner in which
the appropriations were voted at Town Meeting. Budgetary control is exercised through the Town’s accounting
system.
B. Budgetary – GAAP Reconciliation
For budgetary financial reporting purposes, the Uniform Municipal Accounting System basis of accounting
(established by the Commonwealth) is followed, which differs from the GAAP basis of accounting. A
reconciliation of budgetary-basis to GAAP-basis results for the general fund for the fiscal year ended June 30,
2008, is presented as follows:
Net change in fund balance, budgetary basis…………………… $ (336,559)
Basis of accounting differences:
Net change in recording 60-day receipts……………………… 160,117
Net change in recording tax refunds payable…………………… (166,000)
Recognition of revenue for on-behalf payment………………… 6,953,000
Recognition of expenditure for on-behalf payment…………… (6,953,000)
Net change in fund balance, GAAP basis…………………………$ (342,442)
C. Appropriation Deficits
At June 30, 2008 expenditures exceeded budgeted appropriations for State and County charges. This deficit will
be funded through the tax levy in fiscal year 2009.
Town of Canton, Massachusetts 64 Comprehensive Annual Financial ReportSource page 72
Notes to Required Supplementary Information Fiscal Year Ended June 30, 2008
NOTE B – PENSION PLAN
The Town contributes to the Norfolk County Contributory Retirement System ("Retirement System"), a cost-
sharing, multiple-employer defined benefit pension plan ("Plan") administered by the Norfolk County Retirement
Board. The Retirement System provides retirement, disability, and death benefits to members and beneficiaries.
Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the Plan. Plan members
are required to contribute to the Retirement System at rates ranging from 5% to 11% of annual covered
compensation. The Town is required to pay into the Retirement System its share of the systemwide actuarially
determined contribution which is apportioned among the employers based on active covered payroll.
The schedule of funding progress, presented as required supplementary information, presents multiyear trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liability for benefits. Additionally, the schedule of employer contributions, presented as required
supplementary information, presents multiyear trend information for required and actual contributions relating to
the cost-sharing plan as a whole, of which the Town is one participating employer, as well as the Town’s
proportionate share of the plan’s annual contributions. This information is designed to be helpful for
understanding the scale of the information presented relative to the Town.
The following actuarial methods and assumptions were used in the Retirement System’s most recent actuarial
valuation:
Actuarial Methods and Assumptions:
Valuation Date………………………………January 1, 2007
Actuarial Cost Method………………………Entry Age Normal Cost Method
Amortization Method………………………… Increasing at 4.5% per year, level dollar for ERI liability for certain units
Remaining Amortization Period……………21 years remaining as of January 1, 2007
Asset Valuation Method……………………The actuarial value of assets is determined by projecting the actuarial
value of assets as of the beginning of the prior plan year with the
assumed rate of return during that year (8.5%) and accounting
for deposits and disbursements with interest at the assumed rate of
return. An adjustment is then applied to recognize the difference
between the actual investment return and expected return over
a five year period. This preliminary actuarial value is not allowed to
differ from the market value of assets by more than 20%.
Actuarial Assumptions:
Investment rate of return………………… 8.50%
Projected salary increases……………… 4.00%
Cost of living adjustments…………………3.0% of the lesser of the pension amount and $12,000 per year
Plan Membership:
Retired participants and beneficiaries receiving benefits…… 2,495
Inactive participants……………………………………………… 2,043
Disabled…………………………………………………………… 299
Active participants………………………………………………… 5,832
Total………………………………………………………………… 10,669
.
Town of Canton, Massachusetts 65 Comprehensive Annual Financial ReportSource page 73
Combining Statements Combining Statements Town of Canton, Massachusetts 66 Comprehensive Annual Financial Report
Source page 74
Nonmajor Governmental Funds Special Revenue Funds Special revenue funds are used to account for the proceeds of specific revenue sources (other than permanent funds or capital project funds) that are restricted by law or administrative action to expenditures for specified purposes. The Town’s special revenue funds are grouped into the following categories: School Lunch – This fund is used to account for the activity of the school lunch program, which includes charges for services and state and federal reimbursements for meals served. Private Grants – This fund is used to account for grant funds received from private organizations that are to be used to fund various governmental programs. Town Revolving Funds – This fund is used to account for the non-school related activity of revolving funds established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes. School Revolving Funds – This fund is used to account for the school department’s revolving funds established in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71. Recreation – This fund is used to account for self-supporting recreational programs and activities. Stabilization – This fund is used to account for the accumulation of resources to provide general and/or capital reserves. Ambulance – This fund is used to account for the fees generated by the operations of the fire department’s ambulance service that are designated to fund and supplement specific operating costs of the department. Town Grants – This fund is used to account for grant funds received from state and federal governments which are designated for specific non-school related programs. School Grants – This fund is used to account for grant funds received from state and federal governments which are designated for specific school related programs. Other Departmental Funds – This fund is used to account for the activity of donated funds, public safety details, and other receipts reserved for future appropriation. Capital Projects Funds Capital projects funds are used to account for financial resources to be used for the acquisition, construction or improvement of major capital facilities and equipment (other than those financed by enterprise funds). Such resources are derived principally from proceeds of general obligation bonds and grants. The capital projects funds are grouped into the following categories: Building Improvements – This fund is used to account for the construction and renovation of various buildings. Public Works Improvements – This fund is used to account for roadway, drainage and landfill improvements that are not funded by the Roadway Improvements special revenue fund. Equipment – This fund is used to account for the acquisition of capital equipment that are not funded by operating budgets. Town of Canton, Massachusetts 67 Comprehensive Annual Financial Report
Source page 75
Permanent Funds Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support governmental programs. Cemetery Trust Funds – This fund accounts for contributions associated with cemetery care and maintenance. Library Trust Funds – This fund accounts for gifts, bequests and contributions held for which only earnings may be expended for purposes specified by the donor in relation to library activities. Other Municipal Trust Funds – This fund accounts for all non cemetery and library related gifts, contributions and bequests for which only earnings may be expended to benefit the government. Town of Canton, Massachusetts 68 Comprehensive Annual Financial Report
Source page 76
This page intentionally left blank. Town of Canton, Massachusetts 69 Comprehensive Annual Financial Report
Source page 77
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2008
Special Revenue Funds
School Private Town School
ASSETS Lunch Grants Revolving Revolving
Cash and cash equivalents…………………………………… $ 426,699 $ 2,924,156 $ 205,923 $ 648,359
Investments……………………………………………………… - - - -
Receivables, net of uncollectibles:
Departmental and other…………………………………… - - - -
Due from other funds…………………………………………… - - - -
TOTAL ASSETS…………………………………………………$ 426,699 $ 2,924,156 $ 205,923 $ 648,359
LIABILITIES AND FUND BALANCES
LIABILITIES:
Warrants payable……………………………………………$ 11,662 $ - $ 13,419 $ 19,017
Accrued payroll……………………………………………… 21,517 - - -
Other liabilities……………………………………………… - - 4,991 -
Deferred revenues………………………………………… - - - -
Notes payable……………………………………………… - - - -
TOTAL LIABILITIES…………………………………………… 33,179 - 18,410 19,017
FUND BALANCES:
Reserved for:
Perpetual permanent funds…………………………… - - - -
Unreserved:
Undesignated, reported in:
Special revenue funds……………………………… 393,520 2,924,156 187,513 629,342
Capital projects funds……………………………… - - - -
Permanent funds…………………………………… - - - -
TOTAL FUND BALANCES…………………………………… 393,520 2,924,156 187,513 629,342
TOTAL LIABILITIES AND FUND BALANCES……………… $ 426,699 $ 2,924,156 $ 205,923 $ 648,359
Town of Canton, Massachusetts 70 Comprehensive Annual Financial ReportSource page 78
Town School Other
Recreation Stabilization Ambulance Grants Grants Departmental Sub-total
$ 59,365 $ 2,615,042 $ 833,339 $ 245,920 $ 173,508 $ 2,422,059 $ 10,554,370
- 21,351 - - - 332,820 354,171
- - 258,628 - - 80,510 339,138
- - - - - 181,000 181,000
$ 59,365 $ 2,636,393 $ 1,091,967 $ 245,920 $ 173,508 $ 3,016,389 $ 11,428,679
$ 13,941 $ - $ - $ 18,018 $ 25,979 $ 23,210 $ 125,246
5,013 - - 881 77,109 30,606 135,126
- - - - - 5,009 10,000
- - 258,628 - - 80,510 339,138
- - - - - - -
18,954 - 258,628 18,899 103,088 139,335 609,510
- - - - - - -
40,411 2,636,393 833,339 227,021 70,420 2,877,054 10,819,169
- - - - - - -
- - - - - - -
40,411 2,636,393 833,339 227,021 70,420 2,877,054 10,819,169
$ 59,365 $ 2,636,393 $ 1,091,967 $ 245,920 $ 173,508 $ 3,016,389 $ 11,428,679
(Continued)
Town of Canton, Massachusetts 71 Comprehensive Annual Financial ReportSource page 79
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2008
Capital Projects
Public
Building Works
ASSETS Improvements Improvements Equipment Sub-total
Cash and short-term investments……………………… $ 468,431 $ 123,196 $ 89,866 $ 681,493
Investments………………………………………………… - - - -
Receivables, net of uncollectibles: -
Departmental and other……………………………… - - - -
Due from other funds……………………………………… - - - -
TOTAL ASSETS……………………………………………$ 468,431 $ 123,196 $ 89,866 $ 681,493
LIABILITIES AND FUND BALANCES
LIABILITIES:
Warrants payable……………………………………… $ 174,494 $ 495 $ 81,158 $ 256,147
Accrued payroll………………………………………… 1,684 - - 1,684
Other liabilities………………………………………… - - - -
Deferred revenues……………………………………… - - - -
Notes payable………………………………………… 2,136,000 160,000 380,000 2,676,000
TOTAL LIABILITIES……………………………………… 2,312,178 160,495 461,158 2,933,831
FUND BALANCES:
Reserved for:
Perpetual permanent funds……………………… - - - -
Unreserved:
Undesignated, reported in:
Special revenue funds………………………… - - - -
Capital projects funds…………………………… (1,843,747) (37,299) (371,292) (2,252,338)
Permanent funds………………………………… - - - -
TOTAL FUND BALANCES……………………………… (1,843,747) (37,299) (371,292) (2,252,338)
TOTAL LIABILITIES AND FUND BALANCES………… $ 468,431 $ 123,196 $ 89,866 $ 681,493
Town of Canton, Massachusetts 72 Comprehensive Annual Financial ReportSource page 80
Permanent Funds Total
Cemetery Library Other Nonmajor
Trust Trust Municipal Governmental
Funds Funds Trust Funds Sub-total Funds
$ 52,199 $ 175,555 $ 253,607 $ 481,361 $ 11,717,224
285,696 16,413 - 302,109 656,280
- - - - 339,138
- - - - 181,000
$ 337,895 $ 191,968 $ 253,607 $ 783,470 $ 12,893,642
$ - $ 699 $ - $ 699 $ 382,092
- - 168 168 136,978
- - - - 10,000
- - - - 339,138
- - - - 2,676,000
- 699 168 867 3,544,208
292,197 21,553 12,235 325,985 325,985
- - - - 10,819,169
- - - - (2,252,338)
45,698 169,716 241,204 456,618 456,618
337,895 191,269 253,439 782,603 9,349,434
$ 337,895 $ 191,968 $ 253,607 $ 783,470 $ 12,893,642
(Concluded)
Town of Canton, Massachusetts 73 Comprehensive Annual Financial Report