Canton, Massachusetts · Saved source text
Final Official Statement dated May 21, 2024
Saved text from 207 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 81
There has been increased activity on the development side in the last few years. This includes the
sale and redevelopment of the old Reebok site. In the fall of 2017, Reebok moved to Boston
from its’ decades old home in Canton. Spear Street Capital, an
owner and operator of distinctive office properties, became the
new owner. In 2020 the property was sold to the newly formed
entity of Tufts Associated Health Maintenance Organization,
Inc. (TAHMO), and since renamed Point32Health. This new
company is the result of a merger between Tufts Health and
Harvard Pilgrim Health. Point32Health is consolidating all of
its offices from three other towns to its new corporate
headquarters in Canton. Point32Health is a tax-exempt entity
in the healthcare field. However, the Town negotiated a 30-
year payment in lieu of tax (PILOT) agreement with
Point32Health that provided for a $1.6 million PILOT in fiscal year 2022, increasing 3% annually.
Point32Health was attracted to this world-class campus that includes a 518,000 square foot main
building along with three support buildings, two parking structures, a childcare center and a host of
fitness amenities, including an Olympic track, basketball courts, tennis courts and a softball field.
Approximately 2,500 employees are anticipated to be headquartered at the new Point32Health corporate
home in Canton.
In addition, the following private developments were completed in recent years, or are nearing
completion:
Development projects recently completed or near completion
Name Description Completion Amount
Royall Development Hotel/restaurant Completed 19,200,000
Cardinal's Corner Residential Development Completed 4,131,000
Connor's Wayside Residential Development Completed 4,115,000
Indian Way Residential Development Completed 2,250,000
Stillwater Estates Residential Development Completed 17,100,000
Top Golf Commercial/restaurant Completed 8,200,000
Paul Revere Heritage Site I Residential Development Completed 8,225,000
Paul Revere Heritage Site II Residential Development On-going 8,524,000
Paul Revere Heritage Site III Residential Development On-going 15,000,000
Yorkshire Estates Residential Development On-going 6,949,000
20 Audborn Way Residential Development On-going 9,000,000
30 Dan Road Commercial On-going 12,800,000
Trillium Brewing - Royall St Commercial On-going 3,500,000
$ 118,994,000
In 2012 the Town entered into a long-term lease of its capped landfill to be used by a private entity to
install solar panels on fifteen acres of the site at no cost to Canton. The lease provides the Town with
guaranteed payments of $20,000 per acre, per year, increasing annually by 2.5%, while allowing the
Town the ability to purchase all the electricity generated by this 5.6-megawatt facility at a substantial
savings.
The Pine Street Solar Facility went online August 15, 2012 (one of the largest in the Northeast) and has
produced the following financial benefits:
• The 68.66 million kwh of solar electricity produced by this facility since its inception have resulted
in $14.9 million of net metering credits which exceeded the $13.0 million paid for generating this
solar power.
The Town has received lease payments totaling $3.75 million over the last 11 years.
Town of Canton, Massachusetts B-7 Annual Comprehensive Financial ReportSource page 82
• Overall, the Town has received an annual financial benefit from this solar facility which has
helped in balancing the Town’s budget along with increasing free cash reserves; total savings
through fiscal year 2023 are over $5.65 million and currently exceed $513,000 per year.
In summary, Town leaders recognize the importance of maintaining a stable tax situation for its residents.
Development on the commercial side helps accomplish this goal and the Town continues to seek out the
means to maintain vigilance in this area.
Property Taxes The growth of the Town’s main source of revenues, property taxes, is capped by
Proposition 2 ½ and can only be overridden through a ballot by the voters. While revenue increases have
been limited in recent years, fixed costs, including health insurance and pension costs, have increased
more proportionally. As a result, balancing the annual budget is a challenge. The Town attempts to
mitigate this impact by conservatively forecasting revenues thus creating free cash in the subsequent year
and keeping expenditures in check.
In March 2021, the Federal Government passed the American Plan Rescue Act (ARPA) which provides
stimulus payments to State and local government to assist recovery from the pandemic. The Town
expects to receive almost $7.0 million from this program by the end of fiscal 2024. The grant proceeds
are required to be obligated by December 31, 2024 and spent by December 31, 2026.
Projects being supported with ARPA funds include: $1.5 million towards the Washington Street
renewal, including new pavement, sidewalks and granite curbing for this one mile stretch of road; $1.1
million towards a granular activated carbon (GAC) facility at the Moran Water Treatment Plant in
efforts to filter PFAS contaminants; $625 thousand towards unit ventilator replacements at two
elementary schools; $475 thousand in supplemental funding for the high school field bleacher
replacement project; $400 thousand towards the Paul Revere Museum design project; $350 thousand for
sewer pump station remote monitoring equipment; $230 thousand to replace a fire department brush
truck; $204 thousand for GAC filter replacements at the Sullivan Water Treatment Plant; $170 thousand
towards the replacement of the public safety records management system; $165 thousand for cyber
security equipment; $158 thousand for four standby electric generator upgrades at four facilities; $148
thousand towards the downtown crosswalk rehabilitation project; $140 thousand towards walkway and
parking lot reconstruction at the Hemenway Canton Housing Authority residences; $85K to replace 30
defibrillators at several town locations; $50 thousand for emergency rental assistance to Canton
residents; and $1.2 million for six other projects.
The Town’s available reserves on a
GAAP basis represent the amount in
unassigned fund balance. As discussed
previously, the Town’s reserves have
been increasing on an annual basis since
the stabilization of the great recession in
2011.
These strong reserve levels, when
combined with the Town’s strong
management practices, desirable location
in a strong metropolitan statistical area,
assessed valuations and strong wealth
factors directly contributed to an upgrade in the
Town’s bond rating to ‘AAA’. This is the highest investment grade possible. The override and the
resulting revenue flexibility to restore lost services and stabilize budgets in future fiscal years were cited
as prominent factors in the upgrade. The Town is committed to maintaining its reserves at a level
expected from communities that engender the highest bond rating.
Town of Canton, Massachusetts B-8 Annual Comprehensive Financial ReportSource page 83
Long-term Financial Planning
Several years ago, the Town implemented a policy of preparing rolling projections. The Town believes
this will provide better insight when preparing annual budgets and will also alert the Town to any
potential budgeting issues far ahead of when these situations become real issues.
The following represents the Town’s summarized budgets for each of the next five years:
2024 2025 2026 2027 2028
Revenues and Other Sources
Real Estate and Personal Property Taxes $ 93,691,340 $ 98,119,120 $ 101,960,827 $ 105,900,428 $ 109,932,299
State Aid 11,539,764 11,652,729 11,766,823 11,882,058 11,998,445
Local Receipts 9,250,000 9,313,355 9,364,439 9,416,800 9,470,470
Transfers and Other Sources 8,517,531 5,767,367 5,828,335 5,821,998 5,896,225
Total Revenues 122,998,635 124,852,571 128,920,424 133,021,284 137,297,439
Expenditures and Other Uses
Education Budget 53,490,543 56,916,670 59,165,958 61,637,292 63,901,868
Municipal Budget 26,621,741 27,603,622 28,593,544 29,841,678 30,994,280
Fixed Costs 34,443,957 34,557,103 35,170,167 35,790,965 36,253,308
State and County Charges 1,583,586 1,623,176 1,663,755 1,705,349 1,747,983
Capital costs and special appropriations 6,858,808 4,152,000 4,327,000 4,046,000 4,400,000
Total Expenditures 122,998,635 124,852,571 128,920,424 133,021,284 137,297,439
Surplus/(Deficit) $ - $ - $ - $ - $ -
Capital Improvements and Financing
The Town continues to invest in infrastructure improvements such as roads, sewers, and water supply
facilities, as well as various municipal and school facility upgrades. These include: Town Hall, Library,
Public Safety facilities, Public Works, Recreational facilities and School building improvement projects.
Recently, the Town completed construction on a proposed $11 million ice rink as well as $6 million in
renovations to the Town pool.
In addition, the Town has completed the construction of two new water filtration plants. These water
filtration plants will provide state of the art water filtration capabilities and allow for the use of local
source water to reduce operating costs, improve water availability (including redundancy) and filtrate
water for customers with the most technologically advanced system available today.
The Town also completed renovations of a former Knights of Columbus Hall and turned it into the new
Senior Center located at 500 Pleasant Street to address the growing, aging population in need of expanded
and updated senior services.
In addition, the Town completed repairs to Shepard Pond dam which was classified by the state as being a
Significant Hazard Dam in poor condition. To help fund this repair project, the Town received a grant
award of $665,000 from the Commonwealth and a $335,000 low interest loan from the Executive Office
of Environmental Affairs.
Town of Canton, Massachusetts B-9 Annual Comprehensive Financial ReportSource page 84
Construction of an eight-classroom addition to the Lt. Peter M. Hansen Elementary School was also
completed recently. This addition has alleviated increasing enrollment concerns while enabling more
children to attend an elementary school in their neighborhood.
Canton voters authorized the purchase of the former St. Gerard’s property located at 1860 Washington
Street at a special town meeting on December 1, 2021. Canton eventually purchased the 9.1-acre
property from the Archdiocese of Boston in April of 2022 at a cost of $3,225,000. The site contains two
existing structures built in 1960 - the former church (37,000 square feet) and the former rectory (3,900
square feet).
At their meeting in August of 2022, the Select Board voted to establish a “Re-use Committee”, whose
mission it would be to present to the Select Board a short list of three to five potential uses for the
property that had broad community support. This Committee eventually became known as the “St.
Gerard’s Reuse Committee” (SGRC).
The committee reviewed all of the data supplied from key informants, public forums, and public
engagement surveys. The committee unanimously voted to recommend the following key
recommendations at a summary level:
○ Community Center
○ Recreation /Open Space
○ Municipal Space
The next step for the Select Board is to identify funding and take the necessary steps to secure the
services of a consultant who specializes in the repurposing of town properties and present options based
on the committee’s findings. Additional public engagement as the development of the site progresses
would also be recommended.
In June of 2021, Canton Public Schools Submitted a “Statement of Interest” to the Massachusetts School
Building Authority (MSBA) for the William H. Galvin Middle School. If ultimately approved by the
MSBA, the Town could receive substantial funding towards the rehabilitation or replacement of this
Middle School. In October of 2022, the MSBA invited the William H. Galvin Middle School into the
Feasibility Study phase. The project has been progressing to plan since then. In March of 2023, Leftfield
was appointed as the Owner’s Project Manager (OPM) for the Feasibility Study. In June of 2023, Ai3
Architects was selected as the Designer for the Feasibility Study. The intent is to present the funding of
the project for approval to the voters in the Winter of 2024/2025.
The GMS Building Project is an exciting and inspiring opportunity to bring a state-of-the-art facility to
the Canton community. It will energize and elevate the entire Canton Public School District at all levels,
and it will provide our middle school students and staff with an exceptional learning environment. It has
the potential to be a crown jewel for our community. The project team is now fully engaged in the
Feasibility Study. The previous months were spent on educational visioning and programming, as well as
space planning, and the first submission to the MSBA known as the PDP (Preliminary Design Program)
was submitted in October 2023. Next step in the study will be the PSR (Preferred Schematic Report)
which is expected to be submitted in January 2024.
As part of the annual budget process, the Capital Planning Committee (CPC) recommends the capital
budget for the upcoming year and prepares a five-year plan to address the long-term capital needs of the
Town. The capital spending plan for the next five-year years is over $37 million. This is funded from
bond issuances and estimated revenues.
The Town’s target set aside to finance its capital plan is 5% of recurring revenues. A portion of its annual
capital plan funds smaller capital projects on a pay-as-you-go basis through recurring revenues while
larger capital projects are financed through borrowing.
Town of Canton, Massachusetts B-10 Annual Comprehensive Financial ReportSource page 85
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a
Certificate of Achievement for Excellence in Financial Reporting. This is a very prestigious award and
in order to be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
The GFOA awarded this Certificate of Achievement for Excellence in Financial Reporting to the Town of
Canton for its annual comprehensive financial report for the fiscal year ended June 30, 2022. This was the
seventeenth year that the Town has achieved this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report will meet the Certificate of Achievement Program’s requirements, and we
are submitting it to the GFOA to determine its eligibility for this certificate.
The publication of this annual comprehensive financial report represents an important achievement in the
ability of the Town of Canton to provide enhanced financial information and accountability to its citizens,
elected and appointed officials, and investors. The preparation of this report would not have been
possible without the efficient and dedicated services of the entire staff of the Finance Office.
Special thanks also go to the certified public accounting firm of Roselli, Clark and Associates for their
advice and assistance in the preparation of this report.
Respectfully submitted,
Charles E. Doody
Town Administrator
William “Randy” Scollins
Finance Director
Town of Canton, Massachusetts B-11 Annual Comprehensive Financial ReportSource page 86
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Canton
Massachusetts
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
Town of Canton, Massachusetts B-12 Annual Comprehensive Financial ReportSource page 87
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TOWN OF CANTON, MASSACHUSETTS
ORGANIZATIONAL CHART
Blue Hills Town
Town Board Planning Select Board Housing Board of Library Select Board
Regional School Clerks
Board Trustees Appointed Bodies
Meeting of Health Board of Assessors Authority
District Office
Town Canton Director Town Town Town Director of Executive Library
Director -Affordable Housing Trust
Moderator Representative Public Health Planner Clerk Administrator Assessing Director -Revere & Son Heritage Trust Corporation
-Registrars of Voters
Finance -Commission on Disability
Executive -Zoning Board of Appeals
Committee
Town Counsel -Water/Sewer Rate Policy Commission
Assistant -Youth Commission
Building -Historical Commission
Renovations -Fair Housing Committee
Town Planner Administrative
Committee Secretary -Cable Advisory Committee
Sealer of Weights -Beautification Committee
-Conservation Commission
Capital
and Measures Secretary -Council on Aging
Planning
Committee -Industrial Development
Financing Authority
-Local Emergency Planning
Committee
-Traffic Study Committee
-Industrial Development Commission
Veteran’s Fire Superintendent Elder and Parks & Conservation
Building Police Human Resource Finance
of Human Services Recreation Commission
Commissioner Director Chief Chief Director Director Director Agent
Public Works Director
Building and Human Elder and
Veteran’s Police Fire Department of Department of Parks &
Zoning Resource Recreation
Office Department. Department Public Works Department Finance Human Services
Department
Building
Animal Control
Maintenance
Department
Department
Town of Canton, Massachusetts
B-14 Annual Comprehensive Financial ReportSource page 89
CANTON PUBLIC SCHOOLS
CANTON SCHOOL COMMITTEE
ADMINISTRATIVE ASSISTANT TO THE
SUPERINTENDENT/SCHOOL COMMITTEE
SUPERINTENDENT OF SCHOOLS
ASSISTANT
DIRECTOR .OF CURRICULUM
BUILDING PRINCIPALS DIRECTOR OF SUPERINTENDENT OF
and INSTRUCTION
STUDENT SERVICES FINANCE and OPERATIONS
WIDE AREA EDUCATIONAL SCHOOL
NETWORK TECHNOLOGY SECRETARIES ASSISTANT
SCHOOL COUNCIL SECRETARIES
ADM. ADM.. PRINCIPALS ADMINISTRATIVE ASST.
CAPT.
SPED
K-5 READING PARENT GROUPS
PARENT
BUILDING SPECIALISTS SPECIAL EDUCATION, ADVISORY
TECHNOLOGY DISTRICT ACCOUNTS
FACULTY BUILDING 504, ALT. ED. COUNCIL PAYROLL
SPECIALISTS DEPARTMENT PAYABLE
AND STAFF DEPARTMENT STUDENT SERVICES
COORDINATORS
COORDINATORS FACULTY AND STAFF
COMPUTER PROFESSIONAL
DIRECTOR OF
TEACHERS DEVELOPMENT
CHARMSS FOOD SERVICES
COMMITTEE
CUSTODIANS COLLABORATIVE
FACILITIES
PRIVATE SCHOOLS
DIRECTOR
CAFETERIA
MANAGERS/
CUSTODIANS/ WORKERS
MAINTENANCE
TRANSPORTATION
COORDINATOR
HEALTH
SERVICES
Town of Canton, Massachusetts B-15 Annual Comprehensive Financial ReportSource page 90
PRINCIPAL TOWN OFFICIALS
Elected Officials
Select Board Thomas W. Theodore, Chair
John J. Connolly, Vice-Chair
Michael C. Loughran, Clerk
Christopher M. Albert, Member
John R. McCourt, Member
School Committee Kendall O’ Halloran, Chair
Maureen Moran, Vice-Chair
Laura Arbodola, Clerk
Kimberly McCourt, Member
Kristian Merenda, Member
Principal Executive Officers
Town Administrator Charles E. Doody
Finance Director William R. “Randy” Scollins III
Town Accountant Kathy Dooley Butters
Superintendent of Schools Derek Folan
Assistant Superintendent of Finance
and Operations Stephen Marshall
Police Chief Helena Rafferty
Fire Chief Wendell Robery
DPW Superintendent Michael T. Trotta
Town of Canton, Massachusetts B-16 Annual Comprehensive Financial ReportSource page 91
FINANCIAL SECTION
Purchased in 2023, and recently delivered, above is the Fire Department’s new EMS vehicle. At
a cost of $173,000, it was purchased from the Town’s ARPA earmark.
Photo Credit – Canton Fire Department
Town of Canton, Massachusetts B-17 Annual Comprehensive Financial ReportSource page 92
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INDEPENDENT AUDITOR’S REPORT
Honorable Select Board
Town of Canton, Massachusetts
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Canton,
Massachusetts, (the “Town”) as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Town as of June 30, 2023, and the respective changes in financial
position and cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Town and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Town of Canton, Massachusetts B-19 Annual Comprehensive Financial ReportSource page 94
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
▪ Exercise professional judgment and maintain professional skepticism throughout the audit.
▪ Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
▪ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and the schedules listed under the required supplementary information section in the
accompanying table of contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not 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.
Town of Canton, Massachusetts B-20 Annual Comprehensive Financial ReportSource page 95
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion of any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 20,
2023 on our consideration of the Town’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contract, grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Town’s internal control over financial reporting
and compliance.
Roselli, Clark & Associates
Certified Public Accountants
Woburn, Massachusetts
December 20, 2023
Town of Canton, Massachusetts B-21 Annual Comprehensive Financial ReportSource page 96
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Management’s Discussion and Analysis Town of Canton, Massachusetts B-23 Annual Comprehensive Financial Report
Source page 98
MANAGEMENT’S DISCUSSION AND ANALYSIS
As the management of the Town, we offer readers of the accompanying financial statements this narrative
overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2023.
Financial Highlights
▪ The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows at the close
of the most recent fiscal year by almost $71.7 million (total net position).
▪ The government’s total net position increased by almost $10.8 million. This consisted primarily of an
increase in governmental activities’ net position by about $7.7 million and an increase in Business -
type activities’ net position of almost $3.1 million. Details of these changes are discussed in later
sections of the Management Discussion and Analysis.
▪ The Town’s Unassigned Fund Balance reported in the General Fund was almost $25.2 million (21.4%
of General Fund expenditures). Total Fund Balance in the General Fund was almost $33.8 million
(28.7% of General Fund expenditures).
▪ The Town reported a restricted fund balance in its Capital Project Fund of almost $3.7 million. The
Town reported total fund balances of almost $19.4 million in the Combined Nonmajor Governmental
Funds. Approximately $19.0 million in Restricted Fund Balances, combined with over $0.6 million
in Nonspendable Fund Balances which were offset by deficits categorized as unassigned in the
amount of almost $0.3 million made up this amount.
▪ The Town’s total debt increased by over $4.1 million during the fiscal year. Detail of this net increase
is discussed in the debt section of this Management Discussion and Analysis.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements.
The Town’s basic financial statements comprise 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.
Town of Canton, Massachusetts B-24 Annual Comprehensive Financial ReportSource page 99
The layout and relationship of the financial statements and supplementary information is visually
illustrated as follows:
Required Supplementary Management Discussion and Analysis
Information
Government-wide Financial Statements
Governmental Fund Financial Statements
Basic Proprietary Fund Financial Statements
Financial Statements
Fiduciary Fund Financial Statements
Notes to the Basic Financial Statements
Required Supplementary
Information – Budgetary Reporting with Notes, Pension and
Other than MD&A Other Postemployment Benefits
Other Supplementary
Combining Fund Financial Statements/Schedules
Information
Government-wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. The statement of position presents information on all of the Town’s assets, deferred outflows,
liabilities and deferred inflows, with the net result reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Town is
improving or deteriorating. The statement of activities presents information showing how the
government’s net position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave.)
The government-wide financial statements consist of two classifications; (1) those whose activities are
principally supported by taxes and intergovernmental revenue (governmental activities), and (2) those
whose activities are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities).
The governmental activities of the Town include general government, public safety, highways and streets,
sanitation, education, economic development, debt service, fringe benefits and culture and recreation.
The business-type activities of the Town are comprised of water, sewer and rink enterprise funds.
Town of Canton, Massachusetts B-25 Annual Comprehensive Financial ReportSource page 100
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Town, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Accounting guidelines distinguish fund balance between amounts that are considered nonspendable, such
as fund balance associated with inventories, and other amounts that are classified based on the relative
strength of the constraints that control the purposes for which specific amounts can be spent. Beginning
with the most binding constraints, fund balance amounts will be reported in the following classifications:
• Restricted—amounts constrained by external parties, constitutional provision, or enabling
legislation
• Committed—amounts constrained by a government using its highest level of decision-making
authority
• Assigned—amounts a government intends to use for a particular purpose
• Unassigned—amounts that are not constrained at all will be reported in the general fund or in
other major funds if negative
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, as well as on balances 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.
The Town maintains numerous 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, ARPA Grant Fund and Capital Projects Fund, which are
considered to be major funds. Data from the other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these Nonmajor governmental funds is provided
in the form of combining statements.
The Town adopts an annual appropriated budget for its general fund and its enterprise funds. A budgetary
comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds – The Town maintains two types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses an enterprise fund to account for its water, sewer and rink enterprise funds.
Internal service funds are used to report activities that service all other Town Departments. The Town
uses internal service funds to account for self-insured health insurance claims.
Town of Canton, Massachusetts B-26 Annual Comprehensive Financial ReportSource page 101
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 statement because
the resources of those funds are not available to support the Town’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
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.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information which includes the schedules of the Town’s
proportionate share of the net pension liability, contributions to the pension plan, the Commonwealth’s
share of the net pension liability of the Massachusetts Teacher’s Retirement System, the funding progress
and contribution funding of its obligation to provide other postemployment benefits to its employees as
well as the Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
General Fund and notes to this schedule.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets exceeded liabilities by almost $71.7 million at the close of the
most recent fiscal year.
Condensed net position data is presented as follows:
Governmental Activities Business-Type Activities Total
June 30
2023 2022 2023 2022 2023 2022
Assets
Currrent and other assets $ 94,256,897 $ 84,704,369 $ 20,806,599 $ 19,454,667 $ 115,063,496 $ 104,159,036
Capital assets, net 116,689,424 112,444,700 59,984,213 57,918,329 176,673,637 170,363,029
Total assets 210,946,321 197,149,069 80,790,812 77,372,996 291,737,133 274,522,065
Deferred outflows of resources 19,904,783 13,605,787 1,004,096 572,501 20,908,879 14,178,288
Liabilities
Long-term liabilities 162,669,017 146,322,196 34,908,137 33,853,236 197,577,154 180,175,432
Other liabilities 23,524,463 21,712,609 4,201,437 3,954,660 27,725,900 25,667,269
Total liabilities 186,193,480 168,034,805 39,109,574 37,807,896 225,303,054 205,842,701
Deferred inflows of resources 15,303,410 21,069,004 374,586 906,845 15,677,996 21,975,849
Net Position
Net investment in capital assets 88,058,941 86,070,110 35,054,700 31,934,615 123,113,641 118,004,725
Restricted 10,020,827 9,983,304 - - 10,020,827 9,983,304
Unrestricted (68,725,554) (74,402,367) 7,256,048 7,296,141 (61,469,506) (67,106,226)
Total Net Position $ 29,354,214 $ 21,651,047 $ 42,310,748 $ 39,230,756 $ 71,664,962 $ 60,881,803
By far, the largest portion (about $123.1 million) of the Town’s net position reflects its investment in
capital assets (e.g. land, buildings, infrastructure, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The Town uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town’s
investment in its capital assets is reported net of related debt, the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
Town of Canton, Massachusetts B-27 Annual Comprehensive Financial ReportSource page 102
An additional portion (about $10.0 million) of the Town’s net position represents resources that are
subject to external restrictions on how they may be used. Unrestricted net position is reported as a deficit
of nearly $61.5 million due directly to the recognition of net pension and other postemployment liabilities
that continue to be significant.
Condensed changes in net position data are presented as follows:
Governmental Activities Business-Type Activities Total
June 30
2023 2022 2023 2022 2023 2022
Revenues
Program revenues:
Charges for services $ 8,306,271 $ 7,508,382 $ 16,214,728 $ 15,183,450 $ 24,520,999 $ 22,691,832
Operating grants and contributions 26,572,865 22,498,270 - - 26,572,865 22,498,270
Capital grants and contributions 1,200,441 1,434,480 155,752 1,235,807 1,356,193 2,670,287
General revenues:
Property taxes and tax liens 90,082,372 85,661,392 - - 90,082,372 85,661,392
Unrestricted grants and contributions 2,541,685 2,401,522 - - 2,541,685 2,401,522
Other 11,146,339 8,413,105 489,408 42,565 11,635,747 8,455,670
Total Revenues 139,849,973 127,917,151 16,859,888 16,461,822 156,709,861 144,378,973
Expenses
General government 8,414,945 6,554,007 - - 8,414,945 6,554,007
Public safety 22,240,345 19,436,666 - - 22,240,345 19,436,666
Education 84,131,157 78,799,564 - - 84,131,157 78,799,564
Public works 9,017,362 8,388,727 - - 9,017,362 8,388,727
Health and human services 1,802,950 1,775,067 - - 1,802,950 1,775,067
Culture and recreation 4,554,275 4,212,611 - - 4,554,275 4,212,611
Debt service 749,150 582,509 - - 749,150 582,509
Water - - 7,371,999 6,361,192 7,371,999 6,361,192
Sewer - - 6,920,834 6,782,774 6,920,834 6,782,774
Rink - - 723,685 561,725 723,685 561,725
Total Expenses 130,910,184 119,749,151 15,016,518 13,705,691 145,926,702 133,454,842
Change in net position before transfers 8,939,789 8,168,000 1,843,370 2,756,131 10,783,159 10,924,131
Transfers (1,236,622) 413,838 1,236,622 (413,838) - -
Change in net position 7,703,167 8,581,838 3,079,992 2,342,293 10,783,159 10,924,131
Net position, beginning of year 21,651,047 13,069,209 39,230,756 36,888,463 60,881,803 49,957,672
Net position, end of year $ 29,354,214 $ 21,651,047 $ 42,310,748 $ 39,230,756 $ 71,664,962 $ 60,881,803
Governmental Activities – The governmental activities increased net position by about $7.7 million.
Revenues were about $11.9 million greater than the previous year. This was offset by expenses
which were about $11.2 million more than the previous year.
Town of Canton, Massachusetts B-28 Annual Comprehensive Financial ReportSource page 103
The following illustrate functional expenses versus program revenue:
Revenues
Major fluctuations in revenues were from:
1. Property taxes, which at 64% of total revenues represents the largest revenue. The increase over
the prior year of about $4.4 million is due to the levy limit being assessed within the legally
allowable limit under
proposition 2 ½
combined with new
growth in developmental
activity.
2. Operating grants and
contributions which
represent 19.0% of total
revenues increased by
over $4.1 million over
the prior year. The
majority of this was due
to a non-cash increase in the State special funding situation for schoolteachers under GASB 68, as
a result of a new actuarial valuation, in addition to ARPA revenue recognized as earned in the
current period.
3. Total other revenues were less than 10% of total revenues and were individually minor in amount
or consistent with the prior year.
Town of Canton, Massachusetts B-29 Annual Comprehensive Financial ReportSource page 104
Expenses
Major fluctuations in expenses were from:
1. Education which represented 64% of total expenses and is by far the largest expense category
increased over $5.3 million. As discussed under revenue, the Town experienced a non-cash
increase in its special funding arrangement for teacher’s pensions with the State, and the
correlative impact of
expense per the new
actuarial study. This,
when combined with
other increases in
education funded by
taxation, to meet
mandatory net school
spending requirements
and general cost of
living fluctuations led to
the increase noted.
2. Public safety costs represent about 17% of expenses and were consistent with the prior year in
terms of percentage. The dollar increase is due mainly to increases in salaries.
3. Other expenses were less than 10% and were individually minor in amount or consistent with the
prior year.
Business-type Activities – Net position of the business-type activities increased over $3.1 million over
the prior year. This was primarily due to an increase in consumption in water and sewer activities and
continued increases in user charges associated with the re-opening of the rink in the previous year with
increased activity due to the easing of social distancing of the pandemic.
Town of Canton, Massachusetts B-30 Annual Comprehensive Financial ReportSource page 105
Fund-wide Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds – The focus of the Town’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
a government’s net resources available for spending at the end of the fiscal year.
As of the close of the current fiscal year, the Town’s governmental funds balance sheet reported a
combined ending fund balance of almost $56.9 million, an increase of over $7.1 million over the prior
year.
The following is a discussion of the more significant areas:
General Fund
The General Fund ended the year with an unassigned fund balance of almost $25.2 million and a total
fund balance of about $33.8 million. Both increased modestly over prior year amounts.
The Town’s revenues were approximately $7.2 million greater than the prior year. This was primarily
due to statutory increases in property taxes ($2.2 million) allowed to be assessed under Massachusetts
General Laws combined with new growth ($1.3 million). The Town also experienced an increase of $1
million over the prior year in investment income due to a much more robust investment environment, in
addition to increases in intergovernmental income mostly from the special funding situation previously
discussed with respect to teacher pension costs. This was offset by increase in expenditures that were
appropriated by the Town to match anticipated revenues. Notably, education expenditures increased by
$4.0 million to meet net state education spending requirements and public works expenses increased by
$1.6 million due to salary increases and capital spending.
Capital Projects
The Capital projects fund ended the year with over $3.7 million in restricted fund balances. This reflected
a small increase over the prior year as revenues and other financing sources were consistent with capital
expenditures.
Combined Nonmajor Funds
The remainder of governmental fund balances are included as Combined Nonmajor Fund Balances and
are classified as either (1) non-spendable, due to being the corpus of an endowment in the amount of over
$0.6 million; (2) restricted due to constraints placed externally by third-parties of approximately $19.0
million and (3) unassigned amounts that are in a deficit position of nearly $0.3 million.
Revenues and expenditures in this category of funds are typically designed to offset, however, due to the
timing of receipts and disbursements, specifically bond proceeds related to a project, fund balances
increased by about $3.2 million.
Proprietary funds – The Town’s proprietary funds are made up of (1) the Water, Sewer and Rink
Enterprise Funds which provides the same type of information found in the government-wide financial
Town of Canton, Massachusetts B-31 Annual Comprehensive Financial ReportSource page 106
statements under business-type activities and discussed in that section but in more detail; and (2) the
Town’s Internal Service Fund which accounts for the Town’s Health Claims Fund.
The Health Claims Fund has a Net Position balance about $11.1 million. This was an increase of about
$0.5 million. Claims activity is beginning to catch up with revenue as Covid restrictions have been
eliminated and more individuals are undergoing nonessential medical service.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were not significant (less than 1%)
as aggregate revisions were about $200,000 on a budget in excess of $122 million. These revisions were
spread ratably across all expenditure line items.
Major budget to actual differences on the revenue side included excise taxes, which were $1.0 million
over forecast. The Town continued to forecast hotel, meals and vehicle excise conservatively as the
pandemic concerns were still in play at the time of the forecast. Investment income exceeded forecast by
$1.4 million due to interest yields increasing significantly.
On the expenditure side, numerous net minor favorable variances which in total approximated $1.4
million existed. This was primarily a result of increased monitoring of expenditures.
Further detail of budget to actual comparisons may be reviewed as part of the Required Supplementary
Information following the footnotes to the report.
Capital Asset and Debt Administration
Capital Assets – The Town’s investment in capital assets for its governmental and business type
activities amounts to approximately $176.7 million (net of accumulated depreciation) an increase from the
previous year’s balance of approximately $6.3 million as current year additions exceeded the annual
depreciation provision.
Additional information on the Town’s capital assets can be found in Note II subsection D.
Long-term Debt – State statutes limit the amount of general obligation debt a governmental entity may
issue to 5.0 % of its total assessed valuation. The current debt limitation for the Town is approximately
$318.8 million, which is significantly in excess of
the Town’s outstanding general obligation debt Issuances of debt
classified as inside the debt limit. Governmental Activities $ 7,379,500
Business-Type Activities 3,540,500
At the end of the current fiscal year, the Town had
total debt outstanding including premiums of about Debt payments:
$66 million. The entire amount comprises debt Governmental Activities (4,000,576)
backed by the full faith and credit of the Business-Type Activities (3,168,685)
government.
Premium from issuance debt:
The Town’s total debt increased by over $4.1 Governmental Activities 773,330
million during the fiscal year as detailed in the Business-Type Activities 377,666
table on the right. -
Amortization of premium:
The Town’s most recent credit evaluation resulted
Governmental Activities (388,745)
in the Town maintaining its “AAA” rating from
Business-Type Activities (364,934)
$ 4,148,056
Town of Canton, Massachusetts B-32 Annual Comprehensive Financial ReportSource page 107
Standard and Poor‘s Investment Services for its general obligation debt. This is the highest investment
grade given by this agency.
The Town also holds a proportionate share of debt of other governmental units that provide services
within the Town’s boundaries. The debt service from such arrangements is assessed annually to the
Town.
Additional information on the Town’s short-term and long-term debt can be found in Note II under
subsections F and G.
Economic Factors and Next Year’s Budgets and Rates
▪ The Town’s property tax base is made up predominantly of residential real estate taxes, which
comprise about 61% of the Town’s property tax base. The Town also relies heavily on its
commercial and industrial property tax base, which in aggregate comprise about 39% of the Town’s
property tax base. The Town uses a split rate in assessing taxes, thus commercial, industrial and
personal property tax rates are just over double the residential rate. In addition, Chapter 580 of the
Acts of 1980, more commonly referred to as Proposition 2 ½, limits the Town’s ability to increase
taxes in any one year by more than two and one-half percent (2 ½%) of the previous year tax levy.
▪ The Town’s housing market has been very strong for the past several years. This has been bolstered
by mortgage rates at historic lows. Current actions by the Federal Open Market Committee to soften
the economy due to inflation have caused mortgage rates to spike during fiscal year 2023. Such
trends may have an adverse effect on the housing market, and the Town is monitoring this.
▪ Inflation is peaking near 40-year historic highs. This is having adverse impacts on the Town. Wage
inflation cannot guarantee that the Town will be able to maintain employees without increasing
wages. Energy inflation is causing a spike in energy costs. Price inflation is causing a spike in the
price of the delivery and cost of goods and services. The construction building index is nearing
historic highs which may cause the estimates of major capital projects to increase, in addition to the
financing costs of these projects. The Town continues to monitor this situation
All of the above items were considered when the Town developed its budget for fiscal year 2024. The
budget was adopted in May 2023 and the Town’s tax rate was certified in November 2023.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Office of the Finance
Director, 801 Washington Street, Canton, Massachusetts 02021.
Town of Canton, Massachusetts B-33 Annual Comprehensive Financial ReportSource page 108
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Source page 109
Basic Financial Statements Town of Canton, Massachusetts B-35 Annual Comprehensive Financial Report
Source page 110
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2023
Primary Government
Governmental Business-Type
Activities Activities Total
Assets
Cash and cash equivalents $ 67,197,963 $ 16,647,154 $ 83,845,117
Investments 17,686,450 - 17,686,450
Receivables, net:
Property taxes 741,651 - 741,651
Tax liens 1,670,240 95,456 1,765,696
User fees - 4,063,989 4,063,989
Departmental and other 1,477,552 - 1,477,552
Leases 4,801,273 - 4,801,273
Intergovernmental 292,795 - 292,795
Prepaid items 327,173 - 327,173
Deposit held by third party 61,800 - 61,800
Capital assets not being depreciated 17,559,682 5,826,138 23,385,820
Capital assets, net of accumulated depreciation 99,129,742 54,158,075 153,287,817
Total Assets 210,946,321 80,790,812 291,737,133
Deferred Outflows of Resources
Related to net pension liability 9,184,991 621,747 9,806,738
Related to net other postemployment benefits liability 10,719,792 382,349 11,102,141
Total Deferred Outflows of Resources 19,904,783 1,004,096 20,908,879
Liabilities
Warrants and accounts payable 2,558,917 110,589 2,669,506
Accrued payroll and withholdings 5,734,110 38,004 5,772,114
Tax refunds payable 3,777,791 - 3,777,791
Health claims incurred but not reported 1,295,362 - 1,295,362
Accrued interest 313,104 230,087 543,191
Unearned revenue 3,903,715 - 3,903,715
Other liabilities 1,142,120 10,597 1,152,717
Noncurrent liabilities:
Due within one year 4,799,344 3,812,160 8,611,504
Due in more than one year 162,669,017 34,908,137 197,577,154
Total Liabilities 186,193,480 39,109,574 225,303,054
Deferred Inflows of Resources
Related to leased assets 4,801,273 - 4,801,273
Related to net other postemployment benefits liability 10,502,137 374,586 10,876,723
Total Deferred Inflows of Resources 15,303,410 374,586 15,677,996
Net Position
Net investment in capital assets 88,058,941 35,054,700 123,113,641
Restricted for:
Nonexpendable permanent funds 612,385 - 612,385
Expendable permanent funds 898,013 - 898,013
Federal and State grants 1,295,808 - 1,295,808
Community preservation 2,455,103 - 2,455,103
Gift funds 3,455,225 - 3,455,225
Other specific purposes 1,304,293 - 1,304,293
Unrestricted (68,725,554) 7,256,048 (61,469,506)
Total Net Position $ 29,354,214 $ 42,310,748 $ 71,664,962
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-36 Annual Comprehensive Financial ReportSource page 111
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2023
Program Revenues Net (Expenses) Revenues and Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
General government $ 8,414,945 $ 620,199 $ 2,367,527 $ 47,500 $ (5,379,719) $ (5,379,719)
Public safety 22,240,345 4,136,074 723,439 - (17,380,832) (17,380,832)
Education 84,131,157 1,973,611 22,872,279 - (59,285,267) (59,285,267)
Public works 9,017,362 448,187 81,330 877,935 (7,609,910) (7,609,910)
Health and human services 1,802,950 235,498 427,860 - (1,139,592) (1,139,592)
Culture and recreation 4,554,275 892,702 99,247 275,006 (3,287,320) (3,287,320)
Interest expense 749,150 - 1,183 - (747,967) (747,967)
Total governmental activities 130,910,184 8,306,271 26,572,865 1,200,441 (94,830,607) (94,830,607)
Business-type activities:
Water 7,371,999 8,542,336 - 154,767 $ 1,325,104 1,325,104
Sewer 6,920,834 7,260,942 - 985 341,093 341,093
Rink 723,685 411,450 - - (312,235) (312,235)
Total business-type activities 15,016,518 16,214,728 - 155,752 1,353,962 1,353,962
Total Primary Government $ 145,926,702 $ 24,520,999 $ 26,572,865 $ 1,356,193 (94,830,607) 1,353,962 (93,476,645)
General Revenues:
Property taxes 90,082,372 - 90,082,372
Tax liens 240,526 - 240,526
Motor vehicle and other excise 5,265,734 - 5,265,734
Hotel and meals taxes 1,023,603 - 1,023,603
Payments in lieu of taxes 1,937,379 - 1,937,379
Grants and contributions not restricted
to specific programs 2,541,685 - 2,541,685
Penalties and interest on taxes 313,655 - 313,655
Unrestricted investment income 2,365,442 489,408 2,854,850
Transfers (net) (1,236,622) 1,236,622 -
Total general revenues and transfers 102,533,774 1,726,030 104,259,804
Change in Net Position 7,703,167 3,079,992 10,783,159
Net Position:
Beginning of year 21,651,047 39,230,756 60,881,803
End of year $ 29,354,214 $ 42,310,748 $ 71,664,962
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-37 Annual Comprehensive Financial ReportSource page 112
TOWN OF CANTON, MASSACHUSETTS
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
Nonmajor Total
General ARPA Capital Governmental Governmental
Fund Grant Projects Funds Funds
Assets
Cash and cash equivalents $ 35,405,770 $ 3,907,567 $ 3,717,579 $ 18,218,655 $ 61,249,571
Investments 10,171,559 - - 1,399,460 11,571,019
Receivables, net of allowance for uncollectibles:
Property taxes 741,651 - - - 741,651
Tax liens 1,663,537 - - 6,703 1,670,240
Motor vehicle excise 506,242 - - - 506,242
Intergovernmental - - - 292,795 292,795
Departmental and other - - - 865,733 865,733
Leases 4,801,273 - - - 4,801,273
Total Assets 53,290,032 3,907,567 3,717,579 20,783,346 81,698,524
Deferred Outflows of Resources - - - - -
Total Assets and Deferred Outflows of Resources $ 53,290,032 $ 3,907,567 $ 3,717,579 $ 20,783,346 $ 81,698,524
Liabilities
Warrants and accounts payable $ 1,633,787 $ 3,284 $ 30,067 $ 754,565 $ 2,421,703
Accrued payroll and withholdings 5,662,998 568 - 70,544 5,734,110
Tax refunds payable 3,777,791 - - - 3,777,791
Unearned revenue - 3,903,715 - - 3,903,715
Other liabilities 1,141,795 - - 325 1,142,120
Total Liabilities 12,216,371 3,907,567 30,067 825,434 16,979,439
Deferred Inflows of Resources
Unavailable revenues - property taxes 1,967,232 - - 6,703 1,973,935
Unavailable revenues - excise taxes 506,242 - - - 506,242
Unavailable revenues - other - - - 573,903 573,903
Unavailable revenues - leases 4,801,273 - - - 4,801,273
Total Deferred Inflows of Resources 7,274,747 - - 580,606 7,855,353
Fund Balances
Nonspendable - - - 612,385 612,385
Restricted - - 3,687,512 19,024,606 22,712,118
Committed 4,029,719 - - - 4,029,719
Assigned 4,598,262 - - - 4,598,262
Unassigned 25,170,933 - - (259,685) 24,911,248
Total Fund Balances 33,798,914 - 3,687,512 19,377,306 56,863,732
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $ 53,290,032 $ 3,907,567 $ 3,717,579 $ 20,783,346 $ 81,698,524
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-38 Annual Comprehensive Financial ReportSource page 113
TOWN OF CANTON, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
Total Governmental Fund Balances $ 56,863,732
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds. 116,689,424
Other long-term assets that are unavailable to pay current-period expenditures 3,054,080
Deferred outflows and inflows of resources to be recognized in future fiscal years
are not available resources and, therefore, are not reported in the funds:
Deferred outflows related to net pension liability 9,184,991
Deferred outflows related to net other postemployment benefits liability 10,719,792
Deferred inflows related to other net postemployment benefits liability (10,502,137)
Net effect of reporting deferred outflows and inflows of resources 9,402,646
Assets, deferred outflows of resources and liabilities and deferred inflows of resources of the
Town's internal service funds are included in the Statement of Net Position, but are not
reported in the governmental funds. 11,125,797
In the Statement of Activities, interest is accrued on outstanding long-term debt
whereas in the governmental funds interest is not reported until due. (313,104)
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the government funds:
Bonds and notes payable (30,925,493)
Unamortized premiums on bonds (2,488,737)
Compensated absences (2,362,425)
Net pension liability (40,844,185)
Net other postemployment benefits liability (90,847,521)
Net effect of reporting long-term liabilities (167,468,361)
Net Position of Governmental Activities $ 29,354,214
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-39 Annual Comprehensive Financial ReportSource page 114
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED JUNE 30, 2023
Nonmajor Total
General ARPA Capital Governmental Governmental
Fund Grant Projects Funds Funds
Revenues:
Property taxes $ 89,549,944 $ - $ - $ 755,097 $ 90,305,041
Tax liens 222,957 - - - 222,957
Intergovernmental 18,590,809 1,282,199 47,500 9,733,050 29,653,558
Motor vehicle and other excises 5,290,490 - - - 5,290,490
Hotel and meals taxes 1,023,603 - - - 1,023,603
Licenses and permits 1,725,661 - - - 1,725,661
Penalties and interest on taxes 313,655 - - - 313,655
Payments in lieu of taxes 1,937,379 - - - 1,937,379
Fines and forfeitures 58,206 - - - 58,206
Charges for services - - - 1,569,856 1,569,856
Departmental and other revenue 1,567,395 - - 3,571,692 5,139,087
Investment income 1,955,111 - - 176,235 2,131,346
Contributions and donations - - - 694,522 694,522
Total Revenues 122,235,210 1,282,199 47,500 16,500,452 140,065,361
Expenditures:
Current:
General government 4,474,580 588,264 324,582 1,298,902 6,686,328
Public safety 14,364,844 - - 1,872,425 16,237,269
Education 53,052,129 - 1,075,597 9,997,976 64,125,702
Public works 7,784,055 54,652 556,026 4,900,331 13,295,064
Health and human services 1,147,148 - - 202,717 1,349,865
Culture and recreation 2,546,486 60,000 94,681 975,866 3,677,033
Pension benefits 14,084,015 - - - 14,084,015
Employee benefits 13,991,611 - - 120,406 14,112,017
State and county assessments 1,513,485 - - - 1,513,485
Debt service:
Principal 3,815,576 - - 185,000 4,000,576
Interest 949,782 - - 57,240 1,007,022
Total Expenditures 117,723,711 702,916 2,050,886 19,610,863 140,088,376
Excess (Deficiency) of Revenues Over (Under) Expenditures 4,511,499 579,283 (2,003,386) (3,110,411) (23,015)
Other Financing Sources (Uses):
Issuance of bonds and notes - - 1,335,500 6,044,000 7,379,500
Sale of capital assets - - - 216,900 216,900
Premiums from bonds and notes - - 130,500 642,830 773,330
Issuance of refunding bonds - - - - -
Payments on refunding bonds - - - - -
Transfers in 1,291,670 - 740,000 1,362,647 3,394,317
Transfers out (2,101,549) (579,283) - (1,950,107) (4,630,939)
Total Other Financing Sources (Uses) (809,879) (579,283) 2,206,000 6,316,270 7,133,108
Net Change in Fund Balances 3,701,620 - 202,614 3,205,859 7,110,093
FUND BALANCES - Beginning of year 30,097,294 - 3,484,898 16,171,447 49,753,639
FUND BALANCES - End of year $ 33,798,914 $ - $ 3,687,512 $ 19,377,306 $ 56,863,732
See acompanying notes to basic financial statements.
Town of Canton, Massachusetts B-40 Annual Comprehensive Financial ReportSource page 115
TOWN OF CANTON, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2023
Net Change in Fund Balances - Total Governmental Fund Balances $ 7,110,093
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 net amounts are reflected here as reconciling items:
Capital outlays 10,424,335
Disposal of capital assets (217,900)
Depreciation expense (5,961,711)
Net effect of reporting capital assets 4,244,724
In the Statement of Activities, Internal Service Funds established to administer the Town's
health insurance and worker's compensation activities are included within the Statement of
activities whereas these activities are not presented in the Statement of Revenues,
Expenditures and Changes in Fund Balances. 538,987
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt consumes the financial resources of
governmental funds. Neither 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 amortized in the Statement of Activities. The net amounts are
reflected here as reconciling items:
Issuance of general obligation bonds and notes (7,379,500)
Premiums from bonds and notes (773,330)
Amortization of premiums on bonds and notes payable 388,745
Repayments of debt 4,000,576
Net effect of reporting long-term debt (3,763,509)
Revenues in the Statement of Activities that do not provide current financial resources are
unavailable in the Statement of Revenues, Expenditures and Changes in Fund Balances.
Therefore, the recognition of revenue for various types of accounts receivable differ between
the two statements. The amount presented represents the difference in unavailable revenue. (449,484)
In the Statement of Activities, interest is accrued on outstanding long-term debt;
whereas in governmental funds interest is not reported until due. The net
amount presented here as a reconciling item represents the difference in
accruals between this year and the prior year. (130,873)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental funds:
Compensated absences (78,494)
Pension benefits 1,274,054
Other postemployment benefits (1,042,331)
Net effect of reporting long-term liabilities 153,229
Change in Net Position of Governmental Activities $ 7,703,167
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-41 Annual Comprehensive Financial ReportSource page 116
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
Governmental
Business-Type Activities Activities
Total Internal
Enterprise Service
Water Sewer Rink Funds Funds
Assets
Current assets:
Cash and cash equivalents $ 9,718,937 $ 5,925,196 $ 1,003,021 $ 16,647,154 $ 5,948,392
Investments - - - - 6,115,431
Receivables (net):
User charges 2,367,122 1,696,867 - 4,063,989 -
Tax liens 46,814 48,642 - 95,456 -
Departmental and other - - - - 105,577
Prepaid items - - - - 327,173
Deposit held by third party - - - - 61,800
Total current assets 12,132,873 7,670,705 1,003,021 20,806,599 12,558,373
Noncurrent assets:
Capital assets not being depreciated 5,734,989 91,149 - 5,826,138 -
Capital assets, net of accumulated depreciation 32,470,367 11,618,598 10,069,110 54,158,075 -
Total noncurrent assets 38,205,356 11,709,747 10,069,110 59,984,213 -
Total Assets 50,338,229 19,380,452 11,072,131 80,790,812 12,558,373
Deferred Outflows of Resources
Related to net pension liability 314,797 251,052 55,898 621,747 -
Related to net other postemployment benefit liability 263,742 101,428 17,179 382,349 -
Total Deferred Outflows of Resources 578,539 352,480 73,077 1,004,096 -
Liabilities
Current liabilities:
Warrants and accounts payable 100,774 8,246 1,569 110,589 137,214
Accrued payroll and withholdings 22,461 11,145 4,398 38,004 -
Health claims incurred but not reported - - - - 1,295,362
Accrued interest 207,469 22,618 - 230,087 -
Other liabilities 10,597 - - 10,597 -
Compensated absences 33,356 8,121 - 41,477 -
Bonds and notes payable 3,207,285 504,775 58,623 3,770,683 -
Total current liabilities 3,581,942 554,905 64,590 4,201,437 1,432,576
Noncurrent liabilities:
Compensated absences 100,067 24,363 - 124,430 -
Net other postemployment benefit liability 2,235,148 859,570 145,589 3,240,307 -
Net pension liability 1,399,849 1,116,390 248,571 2,764,810 -
Bonds and notes payable 24,459,156 2,528,269 1,791,165 28,778,590 -
Total noncurrent liabilities 28,194,220 4,528,592 2,185,325 34,908,137 -
Total Liabilities 31,776,162 5,083,497 2,249,915 39,109,574 1,432,576
Deferred Inflows of Resources
Related to net other postemployment benefit liability 258,387 99,368 16,831 374,586 -
Total Deferred Inflows of Resources 258,387 99,368 16,831 374,586 -
Net Position
Net investment in capital assets 18,158,675 8,676,703 8,219,322 35,054,700 -
Unrestricted 723,544 5,873,364 659,140 7,256,048 11,125,797
Total Net Position $ 18,882,219 $ 14,550,067 $ 8,878,462 $ 42,310,748 $ 11,125,797
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-42 Annual Comprehensive Financial ReportSource page 117
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2023
Governmental
Business-Type Activities Activities
Total Internal
Enterprise Service
Water Sewer Rink Funds Funds
Operating Revenues:
Charges for services $ 8,542,336 $ 7,260,942 $ 411,450 $ 16,214,728 $ -
Employee contributions - - - - 4,253,320
Employer contributions - - - - 12,027,870
Stop loss reimbursements - - - - 1,091,866
Total Operating Revenues 8,542,336 7,260,942 411,450 16,214,728 17,373,056
Operating Expenses:
Operating costs 3,511,056 1,337,150 394,180 5,242,386 -
Massachusetts Water Resources Authority assessment 2,033,521 4,905,331 - 6,938,852 -
Depreciation 1,265,042 624,571 282,203 2,171,816 -
Employee benefits - - - - 17,068,165
Total Operating Expenses 6,809,619 6,867,052 676,383 14,353,054 17,068,165
Operating Income (Loss) 1,732,717 393,890 (264,933) 1,861,674 304,891
Nonoperating Revenues (Expenses):
Investment income 287,508 168,125 33,775 489,408 234,096
Interest expense (562,380) (53,782) (47,302) (663,464) -
Total Nonoperating Revenues (Expenses) (274,872) 114,343 (13,527) (174,056) 234,096
Income Before Capital Contributions
and Transfers 1,457,845 508,233 (278,460) 1,687,618 538,987
Capital contributions 154,767 985 - 155,752 -
Transfers in 1,114,764 121,858 - 1,236,622 -
Transfers out - - - - -
Total Capital Contributions and Transfers 1,269,531 122,843 - 1,392,374 -
Change in Net Position 2,727,376 631,076 (278,460) 3,079,992 538,987
Total Net Position - Beginning of the Year 16,154,843 13,918,991 9,156,922 39,230,756 10,586,810
Total Net Position - End of the Year $ 18,882,219 $ 14,550,067 $ 8,878,462 $ 42,310,748 $ 11,125,797
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-43 Annual Comprehensive Financial ReportSource page 118
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2023
Governmental
Business-Type Activities Activities
Total Internal
Enterprise Service
Water Sewer Rink Funds Funds
Cash Flows from Operating Activities:
Receipts from users $ 8,710,202 $ 7,588,508 $ 411,450 $ 16,710,160 $ -
Receipts from interfund services provided - - - - 17,391,821
Payments to employees (1,054,069) (478,192) (35,946) (1,568,207) -
Payments to vendors (4,534,477) (5,816,933) (359,916) (10,711,326) -
Payments for interfund services used - - - - (16,452,776)
Net Cash Provided by (Used in) Operating
Activities 3,121,656 1,293,383 15,588 4,430,627 939,045
Cash Flows from Noncapital Financing Activities:
Transfers in 1,114,764 121,858 - 1,236,622 -
Net Cash Provided by Noncapital
Financing Activities 1,114,764 121,858 - 1,236,622 -
Cash Flows from Capital and Related Financing Activities:
Proceeds from capital contributions 154,767 985 - 155,752 -
Proceeds from the issuance of bonds and notes 3,540,500 - - 3,540,500 -
Premiums from the issuance of bonds and notes 377,666 - - 377,666 -
Acquisition and construction of capital assets (3,817,800) (419,900) - (4,237,700) -
Principal payments on bonds and notes (2,637,200) (478,485) (53,000) (3,168,685) -
Interest payments on bonds and notes (835,324) (85,151) (56,351) (976,826) -
Net Cash Used in Capital and Related
Financing Activities (3,217,391) (982,551) (109,351) (4,309,293) -
Cash Flows from Investing Activities:
Investment income 287,508 168,125 33,775 489,408 234,096
Investment of operating cash - - - - (235,215)
Net Cash Provided by (Used in) Investing Activities 287,508 168,125 33,775 489,408 (1,119)
Net Change in Cash and Cash Equivalents 1,306,537 600,815 (59,988) 1,847,364 937,926
Cash and Cash Equivalents:
Beginning of the year 8,412,400 5,324,381 1,063,009 14,799,790 5,010,466
End of the year $ 9,718,937 $ 5,925,196 $ 1,003,021 $ 16,647,154 $ 5,948,392
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating Income (Loss) $ 1,732,717 $ 393,890 $ (264,933) $ 1,861,674 $ 304,891
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 1,265,042 624,571 282,203 2,171,816 -
Changes in assets, deferred outflows of resources,
liabilities and deferred inflows of resources:
Receivables 167,866 327,566 - 495,432 18,765
Prepaid items - - - - 380,008
Deferred outflows of resources (217,456) (175,076) (39,063) (431,595) -
Accounts payable and accrued expenses (25,950) (27,682) 4,400 (49,232) (66,903)
Health claims incurred but not reported - - - - 302,284
Net other postemployment liability (60,858) (23,404) (3,964) (88,226) -
Net pension liability 507,838 405,004 90,175 1,003,017 -
Deferred inflows of resources (247,543) (231,486) (53,230) (532,259) -
Net Cash Provided by (Used in) Operating
Activities $ 3,121,656 $ 1,293,383 $ 15,588 $ 4,430,627 $ 939,045
Noncash capital and related financing activities:
Amortization of bond premium $ 328,869 $ 27,046 $ 9,049 $ 364,964 $ -
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-44 Annual Comprehensive Financial ReportSource page 119
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
Other Private
Postemployment Purpose
Benefits Trust Fund Trust Funds
Assets
Cash and cash equivalents $ 61,110 $ 62,546
Investments:
Equities 916,652 -
Equity mutual funds 7,133,457 -
Bond mutual funds 2,423,335 -
Total Assets 10,534,554 62,546
Liabilities
Warrants payable - -
Total Liabilities - -
Net Position
Restricted for other postemployment benefits 10,534,554 -
Held in trust for private purposes - 62,546
Total Net Position $ 10,534,554 $ 62,546
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-45 Annual Comprehensive Financial ReportSource page 120
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FISCAL YEAR ENDED JUNE 30, 2023
Other Private
Postemployment Purpose
Benefits Trust Fund Trust Funds
Additions
Contributions:
Employer $ 5,447,460 $ -
Other - 2,500
Total contributions 5,447,460 2,500
Investment income:
Interest and dividends 150,719 2,469
Realized gain (loss) on investments (43,320) -
Net appreciation in fair value of investments 678,546 -
Less - investment management fees (21,639) -
Net investment earnings 764,306 2,469
Total Additions 6,211,766 4,969
Deductions
Education - scholarships - 500
Retiree benefits 4,297,460 -
Total Deductions 4,297,460 500
CHANGE IN NET POSITION 1,914,306 4,469
NET POSITION AT BEGINNING OF YEAR 8,620,248 58,077
NET POSITION AT END OF YEAR $ 10,534,554 $ 62,546
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-46 Annual Comprehensive Financial Report