Canton, Massachusetts · Saved source text
Latest Bond Issuance Report March 2016
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Source page 1
NEW ISSUE Standard & Poor’s Ratings Services: AAA
(See “Rating” herein)
FINAL OFFICIAL STATEMENT DATED MARCH 3, 2016
In the opinion of Locke Lord LLP, Bond Counsel, based upon an analysis of existing law and assuming, among
other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income
tax purposes under the Internal Revenue Code of 1986 (the “Code”). Interest on the Bonds is not a specific preference
item for purposes of the federal individual or corporate alternative minimum taxes, although such interest is included in
adjusted current earnings when calculating corporate alternative minimum taxable income. Under existing law, interest
on the Bonds is exempt from Massachusetts personal income taxes, and the Bonds are exempt from Massachusetts
personal property taxes. The Bonds will be designated as “qualified tax-exempt obligations” for purposes of Section
265(b)(3) of the Code. Bond Counsel expresses no opinion regarding any other tax consequences related to the
ownership or disposition of, or the accrual or receipt of interest on the Bonds. (See “Tax Exemption” and Appendix C
herein.)
$3,078,000
TOWN OF CANTON
MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2016 BONDS
Dated: March 17, 2016 Due: January 15, 2017 - 2026
MATURITIES, AMOUNTS, INTEREST RATES, PRICES AND/OR YIELDS
Principal Interest Price or Principal Interest Price or
Year Amount Rate Yield Year Amount Rate Yield
2017 $523,000 2.00% 0.33% 2022 $270,000 2.00% 1.05%
2018 345,000 2.00 0.55 2023 255,000 2.00 1.25
2019 330,000 2.00 0.69 2024 255,000 2.00 1.50
2020 320,000 2.00 0.80 2025 245,000 2.00 1.65
2021 315,000 2.00 0.90 2026 220,000 2.00 1.75
Principal of the Bonds will be payable January 15 of the years in which the Bonds mature. Interest from the date
of the Bonds will be payable on July 15, 2016 and semi-annually thereafter on each January 15 and July 15 until maturity.
The Bonds will be subject to redemption prior to their stated dates of maturity as described herein.
The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in the
name of Cede & Co., as Bondowner and nominee for The Depository Trust Company (“DTC”), New York, New York.
DTC will act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the
denomination of $5,000 or any integral multiple thereof, with the exception of one principal amount of $3,000 of the
Bonds that will mature in 2017. (See “Book-Entry Transfer System” herein.)
The legality of the Bonds will be approved by Locke Lord LLP, Boston, Massachusetts, Bond Counsel to the
Town. UniBank Fiscal Advisory Services, Inc., Whitinsville, Massachusetts, serves as financial advisor to the Town. It is
expected that the Bonds, in definitive form, will be delivered to DTC, or the offices of its custodial agent, on or about
March 17, 2016 against payment in Federal Reserve funds.
UBS FINANCIAL SERVICES INC.Source page 2
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Table of Contents
Page Page Page
Issue Summary Statement ....... iii Authorized Unissued Debt Motor Vehicle Excise ..............34
Notice of Sale ............................ v and Prospective Financing 16 Community Preservation Act ...35
Official Statement ..................... 1 Capital Expenditures Investments ..............................36
Introduction ............................... 1 Projections ........................ 16 Unassigned General Fund
Five Years Outstanding Debt .. 18 Balance and Free Cash ...........36
Part I. The Bonds ...................... 2 Bonded Debt vs. Population, Stabilization Fund ....................37
Description of the Bonds...... 2 Valuations and Income ....... 18 Other Taxes ..............................37
Record Date.......................... 2 Annual Debt Service ............... 19 Collective Bargaining ..............38
Book-Entry Transfer System 3 Contracts.................................. 20 Physical and
Authorization and Use of Overlapping Debt .................... 21 Economic Characteristics......38
Proceeds............................ 5 Retirement Plan ....................... 22 Principal Employers .................42
Sources and Uses ................. 6 Property Taxation and Employment by Industry .........43
Optional Redemption ........... 6 Valuation ............................ 24 Building Permits ......................43
Mandatory Redemption........ 6 Valuations................................ 25 Other Data ................................43
Security and Remedies ......... 6 Tax Rates ................................. 26 Public School Enrollments.......47
Opinion of Bond Counsel .... 9 Largest Taxpayers ................... 26 Public School Facilities ...........47
Tax Exemption ..................... 9 Tax Levies ............................... 26 Litigation..................................48
Rating ................................. 10 Calculation of Tax Levies and
Continuing Disclosure........ 11 Levy Limits ........................ 29 Appendix A. Financial
Tax Collections and Statements .......................... A-1
Part II. The Town .................... 12 Abatements......................... 30 Appendix B. 2015 Audit ........B-1
Services ................................... 12 Taxes Outstanding ................... 30 Appendix C. Proposed Form of
Governing Bodies and Town Finances ........................ 31 Legal Opinion ...................C-1
Officers ................................. 12 Budget and Appropriation Appendix D. Proposed Form of
Authorization of General Process ............................... 31 Continuing Disclosure
Obligation Bond & Notes ..... 13 Budget Comparison ................. 32 Certificate........................... D-1
Debt Limits ............................. 13 State Aid .................................. 33
Types of Obligations ............... 13
Debt ......................................... 15
Revenue Anticipation
Borrowing .......................... 16
The information and expressions of opinion in this Official Statement are subject to change without notice. Neither the
delivery of this Official Statement nor any sale of the Bonds shall, under any circumstances, create any implication that
there has been no material change in the affairs of the Town since the date of this Official Statement.Source page 4
ISSUE SUMMARY STATEMENT
Issuer: Town of Canton, Massachusetts
Date of Sale: Thursday, March 3, 2016 until 11:00 A.M. (Eastern Standard Time)
Method of Sale: Electronic Bids
Location of Sale: UniBank Fiscal Advisory Services, Inc., 49 Church St., Whitinsville, MA
Issue: $3,078,000 General Obligation Municipal Purpose Loan of 2016 Bonds, Book-
Entry Only (See “Book-Entry Transfer System,” herein).
Purpose: Proceeds of the Bonds will be utilized to currently refund the Town’s General
Obligation Municipal Purpose Loan of 2008 Bonds, and to finance various capital
projects. See “Authorization and Use of Proceeds” herein.
Dated Date of Bonds: March 17, 2016
Maturity Date of Bonds: January 15, 2017-2026, inclusive, as detailed herein.
Minimum Bid: Par plus a premium of not less than $53,165, plus accrued interest.
Credit Rating: Standard & Poor’s Ratings Services rating is pending.
Redemption: The Bonds are subject to redemption prior to their stated dates of maturity as
described herein.
Security: The Bonds are valid general obligations of the Town of Canton, Massachusetts
and the principal of and interest on the Bonds are payable from taxes which may
be levied upon all taxable property within the territorial limits of the Town subject
to the limit imposed by Chapter 59, Section 21C of the General Laws (Proposition
2 ½).
Basis of Award: Lowest true interest cost (TIC) as of the dated date.
Tax Exemption: Refer to Tax Exemption and Appendix C – “Proposed Form of Legal Opinion”
herein.
Continuing Disclosure: Refer to Continuing Disclosure and Appendix D – “Proposed Form of Continuing
Disclosure Certificate” herein.
Bank Qualification: The Bonds will be designated as “qualified tax-exempt obligations” for
purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended.
Paying Agent: U.S. Bank National Association, Boston, Massachusetts
iiiSource page 5
Legal Opinion: Locke Lord LLP, Boston, Massachusetts
Delivery and Payment: It is expected that the Bonds will be delivered to DTC, or the offices of its
custodial agent, against payment to the account of the Town in Federal Reserve
funds on or about March 17, 2016.
Issue Contacts: James R. Murgia, Finance Director/Treasurer, Town of Canton,
Telephone # (781) 575-6612
Kimberly Mooers, Senior Vice President, UniBank Fiscal Advisory Services, Inc.,
Telephone # (508) 849-4307
Richard A. Manley, Jr., Esq., Locke Lord LLP, Boston, MA,
Telephone # (617) 239-0384
Additional Information: Refer to the Preliminary Official Statement dated February 25, 2016.
ivSource page 6
NOTICE OF SALE
TOWN OF CANTON
Massachusetts
$3,038,000*
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2016 BONDS
The Town of Canton, Massachusetts, will receive electronic and sealed proposals until 11:00 A.M.
(Eastern Standard Time), on
March 3, 2016
at UniBank Fiscal Advisory Services, Inc., Whitinsville, Massachusetts, for the purchase of the following
described Bonds:
$3,038,000* GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2016 BONDS payable
January 15 of the years and in the amounts as follows:
Principal Principal
Year Amount* Year Amount*
2017 $508,000 2022 $260,000
2018 340,000 2023 260,000
2019 320,000 2024 255,000
2020 315,000 2025 245,000
2021 310,000 2026 225,000
__________________
* Preliminary; subject to change.
Details of the Bonds
The Bonds will be dated March 17, 2016. Interest from the date of the Bonds will be payable on July 15, 2016
and semi-annually thereafter on each January 15 and July 15. Principal of and interest on the Bonds will be
paid as described below. The Bonds are subject to redemption prior to their stated dates of maturity as
described below.
The Bond will be issued by means of a book-entry system with no physical distribution of the Bonds made to
the public. One certificate for each maturity of the Bonds will be issued to The Depository Trust Company,
New York, New York, (“DTC”), and immobilized in its custody. A book-entry system will be employed,
evidencing ownership of the Bonds in principal amounts of $5,000 or integral multiples thereof, with one
denomination of $3,000 of the Bonds maturing in 2017, with transfers of ownership affected on the records of
DTC and its participants pursuant to rules and procedures adopted by DTC and its participants. The winning
bidder, as a condition to delivery of the Bonds, shall be required to deposit the Bonds with DTC, registered in
the name of Cede & Co. Principal of, and interest on the Bonds will be payable to DTC or its nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants of DTC
will be the responsibility of such participants and other nominees of beneficial owners. Neither the Town nor
the Paying Agent will be responsible or liable for maintaining, supervising or reviewing the records maintained
by DTC, its participants or persons acting through such participants.
vSource page 7
Bank Qualification
The Bonds will be designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the
Code.
Optional Redemption of the Bonds
The Bonds maturing in the years 2017 through 2024, inclusive, are not subject to redemption prior to their
stated dates of maturity. The Bonds maturing on and after January 15, 2025 are subject to redemption prior to
their stated dates of maturity, at the option of the Town, on and after January 15, 2024 either in whole or in part
at any time, and if in part, by lot within a maturity, at par plus accrued interest to the date set for redemption.
Term Bonds
For Bonds maturing on and after January 15, 2025, bidders may specify that all of the principal amount of such
bonds having any two or more consecutive maturities, may in lieu of having separate maturity dates, be
combined to comprise one Term Bond, and shall be subject to mandatory redemption or mature at par as
described above, in each of the years and in the principal amounts specified in the foregoing maturity schedule.
Each mandatory redemption shall be allocated to the payment of the Term Bond having the nearest subsequent
maturity date.
A Term Bond, if any, shall be subject to mandatory redemption on January 15 in the year or years immediately
prior to the stated maturity of such Term Bond (the particular Bonds of such maturity to be redeemed to be
selected by lot), as indicated in the foregoing maturity schedule at the principal amount thereof plus accrued
interest to the redemption date, without premium.
Form of Bid and Basis of Award
Electronic proposals will be submitted through i-Deal®. If any provisions in this Notice of Sale conflict with
information provided by i-Deal®, this Notice of Sale shall control. Further information about i-Deal®, including
any fees charged, may be obtained from i-Deal® at (212) 849-5000. The Town assumes no responsibility or
liability for bids submitted through i-Deal®. An electronic bid made in accordance with this Notice of Sale
shall be deemed an irrevocable offer to purchase the Bonds in accordance with the terms provided in this Notice
of Sale and shall be binding upon the bidder as if made by a signed and sealed written bid delivered to the
Town.
A good faith deposit is not required.
Bidders shall state the rate or rates of interest per annum which the Bonds are to bear in a multiple of 1/8th or
1/20th of 1% but shall not state (a) more than one interest rate for any Bonds having a like maturity and (b) any
interest rate which exceeds the interest rate stated for any other Bonds by more than 3%.
No bid of less than par plus a premium of not less than $53,165, plus accrued interest, if any, will be considered.
As between proposals which comply with this Notice of Sale, the award will be to the bidder who offers to
purchase all the Bonds at the lowest net effective interest rate to the Town. Such interest rate shall be
determined on a true interest cost (TIC) basis, which shall mean that rate which, as of March 17, 2016,
discounts semi-annually all future payments on account of principal and interest to the price bid, not including
interest accrued to the date of delivery, which accrued interest shall be paid by the successful bidder. The
viSource page 8
award of the Bonds to the winning bidder will not be effective until the bid has been approved by the Treasurer
and the Board of Selectmen of the Town.
Bond Insurance
The Town has not contracted for the issuance of any policy of municipal bond insurance for the Bonds. If the
Bonds qualify for the issuance of any such policy or commitment therefor, any purchase of such insurance or
commitment shall be at the sole option and expense of the bidder. Proposals shall not be conditioned upon the
issuance of any such policy or commitment. Any failure of the Bonds to be so insured or of any such policy or
commitment to be issued shall not in any way relieve the purchaser of the contractual obligations arising from
the acceptance of a proposal for the purchase of the Bonds. Should the successful bidder purchase municipal
bond insurance, all expenses associated with such policy or commitment will be borne by the bidder, except for
the fee paid to Standard & Poor’s Rating Services for the rating on the Bonds. Any such fee paid to Standard &
Poor’s Rating Services would be borne by the Town.
Par Amount Subject to Change
Within the limits set forth herein, the Town reserves the right to adjust the aggregate principal amount of the
Bonds, and to adjust the principal amount of individual maturities of the Bonds, even if the aggregate principal
amount is unchanged.
Immediately following the opening of the bids, the Town, acting through its financial advisor, will contact the
apparent successful bidder by telephone to obtain the initial reoffering prices of each maturity of the Bonds, the
premium to be paid on account of bond insurance, if any, and other information relevant to the sale of the
Bonds. The apparent successful bidder shall then immediately deliver to the Town written confirmation by
facsimile transmission as to such reoffering prices and bond insurance premium, if any. Upon being supplied
with such initial reoffering prices and bond insurance premiums, if any, the Town will determine the need to
otherwise re-allocate the principal maturities of the Bonds. The Town expects to advise the successful bidder as
soon as possible, but no later than 3:00 p.m., Eastern Standard Time, on the date of the sale of the amount, if
any, of any changes in either the aggregate principal amount (which changes will be allocated among several
maturities of the Bonds in a manner to be specified by the Town) or individual maturities (assuming no changes
in the aggregate principal amount of the Bonds).
Any adjustment in either the aggregate principal amount or the individual maturities of the Bonds will be in an
amount of $5,000 or an integral multiple thereof and will be made only as necessary to effect the refunding in
accordance with the Town’s objectives. Those objectives include (1) structuring the Bonds so that savings will
be as close to equal on an annual basis as practicable, (2) meeting state law requirements with respect to present
value savings, and (3) issuing a final par amount of Bonds that will be sufficient to fund the refunding plus costs
of issuance, given the price bid by the successful underwriter, while avoiding an over issuance of Bonds.
Prospective bidders should be advised that bidding with a large premium will likely result in a corresponding
reduction in the par amount of the Bonds.
The dollar amount bid by the successful bidder will be adjusted to reflect any adjustment in the aggregate
principal amount of the Bonds to be issued. The adjusted bid price will reflect changes in the dollar amount of
the underwriter’s discount and original issue discount/premium, if any, but will not change the per-bond
underwriter’s discount as calculated from the bid and reoffering prices required to be delivered to the Town as
stated herein. The successful bidder may not withdraw its bid or change the interest rates bid or initial
reoffering prices as a result of any changes made to the principal amounts within these limits.
viiSource page 9
Certificate of the Successful Bidder
On or prior to the date of delivery of the Bonds, the successful bidder shall furnish to the Town a certificate
acceptable to Bond Counsel generally to the effect that (i) as of March 3, 2016 (the “Sale Date”), the Purchaser
had offered or reasonably expected to offer all of the Bonds to the general public (excluding bond houses,
brokers, or similar persons acting in the capacity of underwriters or wholesalers) in a bona fide public offering
at the prices set forth in such certificate, plus accrued interest, if any, (ii) such prices represent fair market prices
of the Bonds as of the Sale Date, and (iii) as of the date of such certificate, all of the Bonds have been offered to
the general public in a bona fide offering at the prices set forth in such certificate, and at least 10% of each
maturity of the Bonds actually has been sold to the general public at such prices. To the extent the certifications
described in the preceding sentence are not factually accurate with respect to the reoffering of the Bonds, Bond
Counsel should be consulted by the bidder as to alternative certifications that will be suitable to establish the
“issue price” of the Bonds for federal tax law purposes. If a municipal bond insurance policy or similar credit
enhancement is obtained with respect to the Bonds by the successful bidder, such bidder will also be required to
certify as to the net present value savings on the Bonds resulting from payment of insurance premiums or other
credit enhancement fees.
Legal Opinion
The legality of the Bonds will be approved by Locke Lord LLP, Boston, Massachusetts, whose opinion will be
furnished to the original purchaser without charge.
Documents to be Delivered at Closing
It shall be a condition to the obligation of the successful bidder to accept delivery of and pay for the Bonds that
it shall be furnished, without cost, with (a) the approving opinion of the firm of Locke Lord LLP of Boston,
Massachusetts, substantially in the form of Appendix C of the Preliminary Official Statement dated February
25, 2016 included herein (see “Opinion of Bond Counsel” “Tax Exemption” and Appendix C in the Preliminary
Official Statement), (b) a certificate in form satisfactory to said firm dated as of the date of delivery of the
Bonds and receipt of payment therefor to the effect that there is no litigation pending or, to the knowledge of the
signers thereof, threatened affecting the validity of the Bonds or the power of the Town to levy and collect taxes
to pay them, (c) a certificate of the Town Treasurer to the effect that, to the best of his knowledge and belief, the
Preliminary Official Statement, both as of its date and the date of sale and the Official Statement, as of its date
and as of the date of delivery of the Bonds, do not contain any untrue statement of a material fact and does not
omit to state a material fact necessary to make the statements made therein, in the light of the circumstances
under which they were made, not misleading, and (d) a Continuing Disclosure Certificate in the form described
in the Preliminary Official Statement, the proposed form of which is attached thereto as Appendix D.
CUSIP Identification Numbers
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print
such numbers on any Bond, nor any error with respect thereto shall constitute cause of a failure or refusal by the
purchaser thereof to accept delivery of and pay for the Bonds. All expenses in relation to the printing of CUSIP
numbers on the Bonds shall be paid for by the Town; provided, however, that the Town assumes no
responsibility for any CUSIP Service Bureau or other charge that may be imposed for the assignment of such
numbers.
viiiSource page 10
Continuing Disclosure
In order to assist bidders in complying with Rule 15c2-12(b)(5), promulgated by the Securities and Exchange
Commission (the “SEC”), the Town will undertake to provide annual reports and notices of certain significant
events. A description of this undertaking is set forth in the Preliminary Official Statement.
Delivery
The Bonds, in definitive form, will be delivered to the purchaser at DTC, or the offices of its custodial agent, on
or about March 17, 2016 against payment in Federal Reserve funds.
Additional Information and Copies of the Official Statement
Additional information concerning the Town of Canton and the Bonds is contained in the Preliminary Official
Statement dated February 25, 2016, to which prospective bidders are directed. The Preliminary Official
Statement is provided for informational purposes only and is not a part of this Notice of Sale. Such Preliminary
Official Statement is deemed final by the Town as of its date for purposes of SEC Rule 15c2-12(b)(1) except for
the omission of the reoffering prices, interest rates and any other items of the Bonds depending on such matters
and the identity of the underwriters. Copies of the Preliminary Official Statement and a suggested form of
proposal for the Bonds may be obtained from Kimberly Mooers, Senior Vice President, UniBank Fiscal
Advisory Services, Inc., 49 Church St., Whitinsville, Massachusetts, telephone (508) 849-4307. Within seven
(7) business days following the award of the Bonds in accordance herewith, 50 copies of a Final Official
Statement will be furnished to the successful bidder. Additional copies may be obtained at the purchaser's
expense.
The right is reserved to reject any or all bids and to reject any bid not complying with this Notice of Sale and, so
far as permitted by law, to waive any irregularity with respect to any proposal.
TOWN OF CANTON
MASSACHUSETTS
/s/ James R. Murgia
Finance Director/Treasurer
Dated: February 25, 2016
ixSource page 11
OFFICIAL STATEMENT
TOWN OF CANTON
MASSACHUSETTS
$3,078,000
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2016 BONDS
INTRODUCTION
This Official Statement is provided for the purpose of presenting certain information relating to the Town of
Canton, Massachusetts (the “Town”) in connection with the sale of the $3,078,000 General Obligation
Municipal Purpose Loan of 2016 Bonds, dated March 17, 2016 (the “Bonds”) of the Town.
The Bonds are being offered for sale at a public bidding and a Notice of Sale dated February 25, 2016, has been
furnished to prospective bidders. Reference is hereby made to the Notice of Sale for the terms and conditions of
bidding.
The Bonds will be general obligations of the Town for which its full faith and credit are pledged. They are not
guaranteed by The Commonwealth of Massachusetts (the “Commonwealth”) or any other entity. The security
for the Bonds is more fully described under the captions Security and Remedies and Opinion of Bond Counsel
herein.
Questions regarding information contained in this Official Statement or other matters should be directed to the
following: James R. Murgia, Finance Director/Treasurer, (781) 575-6612, Kimberly Mooers, Senior Vice
President, UniBank Fiscal Advisory Services, Inc. (508) 849-4307, or Richard A. Manley, Jr., Esq., Locke Lord
LLP (617) 239-0384.
The information contained herein has been obtained from the sources indicated or from the Town.
1Source page 12
PART I
THE BONDS
DESCRIPTION OF THE BONDS
The Bonds will be dated March 17, 2016 and will mature on January 15 of the years and in the principal
amounts as follows:
Principal Principal
Year Amount Year Amount
2017 $523,000 2022 $270,000
2018 345,000 2023 255,000
2019 330,000 2024 255,000
2020 320,000 2025 245,000
2021 315,000 2026 220,000
The Bonds will bear interest at the rate or rates per annum specified by the successful bidder. The Bonds are
subject to optional redemption prior to their stated dates of maturity as described herein.
Principal and semi-annual interest on the Bonds will be paid to The Depository Trust Company (“DTC”), New
York, New York by U.S. Bank National Association, Boston, Massachusetts, or its successor, acting as paying
agent (the “Paying Agent”). Interest from the date of the Bonds will be payable on July 15, 2016 and semi-
annually thereafter on each January 15 and July 15 until maturity. So long as DTC or its nominee, Cede & Co.,
is the Bondowner, such payments of principal and interest on the Bonds will be made directly to DTC.
Disbursement of such payments to the DTC Participants is the responsibility of DTC and disbursement of such
payments to the Beneficial Owners is the responsibility of the DTC Participants and Indirect Participants, as
more fully described herein.
The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in
the name of Cede & Co., as Bondowner and nominee for DTC. DTC will act as securities depository for the
Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of $5,000 or any integral
multiple thereof, with the exception of one principal amount of $3,000 of the Bonds that will mature in 2017.
Purchasers will not receive certificates representing their interests in Bonds purchased. So long as Cede & Co.
is the Bondowner, as nominee of DTC, references herein to the Bondowners or registered owner shall mean
Cede & Co., as aforesaid, and shall not mean the Beneficial Owners (as defined herein) of the Bonds. (See
“Book-Entry Transfer System” herein.)
RECORD DATE
The record date for each payment of interest on the Bonds is the last business day of the month preceding the
interest payment date, provided that, under certain circumstances, the Paying Agent may establish a special
record date. The special record date may not be more than twenty (20) days before the date set for payment.
The Paying Agent will mail notice of a special record date to the bondholders at least ten (10) days before the
special record date.
2Source page 13
BOOK-ENTRY TRANSFER SYSTEM
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Bonds. The
Bonds will be issued in fully registered form registered in the name of Cede & Co. (DTC's partnership nominee)
or such other name as may be requested by an authorized representative of DTC. One-fully registered
certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such
maturity, and each such certificate will be deposited with DTC.
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New
York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform
Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the
Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S.
and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100
countries) that DTC's participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This
eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and
non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other
organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”).
DTCC is the holding company for DTC, National Securities Clearing Corporation, and Fixed Income Clearing
Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated
subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard
& Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and
Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of securities deposited with DTC must be made by or through Direct Participants, which will receive
a credit for such securities on DTC's records. The ownership interest of each actual purchaser of each security
deposited with DTC (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants'
records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial
Owners are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in securities deposited with DTC are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in securities
deposited with DTC, except in the event that use of the book-entry system for such securities is discontinued.
To facilitate subsequent transfers, all securities deposited by Direct Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co. or such other name as requested by an authorized
representative of DTC. The deposit of securities with DTC and their registration in the name of Cede & Co. or
such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the securities deposited with it; DTC's records reflect only the identity of the Direct
Participants to whose accounts such securities are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of
their customers.
3Source page 14
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed
by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time
to time.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity is being redeemed,
DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be
redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to securities
deposited with it unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under
its usual procedures, DTC mails an Omnibus Proxy to the issuer of such securities as soon as possible after the
record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants
to whose accounts the securities are credited on the record date (identified in a listing attached to the Omnibus
Proxy).
Principal and interest payments on securities deposited with DTC will be made to Cede & Co., or such other
nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the issuer of such
securities or its paying agent, on payable date in accordance with their respective holdings shown on DTC's
records. Payments by Participants to Beneficial Owners will be governed by standing instructions and
customary practices, as is the case with securities held for the accounts of customers in bearer form or registered
in “street name,” and will be the responsibility of such Participant and not of DTC (nor its nominee), the issuer
of such securities or its paying agent, subject to any statutory or regulatory requirements as may be in effect
from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be requested
by an authorized representative of DTC) is the responsibility of the issuer of such securities or its paying agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of
such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the securities held by it at any time by
giving reasonable notice to the issuer of such securities or its paying agent. Under such circumstances, in the
event that a successor depository is not obtained, physical certificates are required to be printed and delivered.
The Town may decide to discontinue use of the system of book-entry transfers through DTC (or a successor
securities depository). In that event, physical certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry-only system has been obtained from
sources that the Town believes to be reliable, but the Town takes no responsibility for the accuracy thereof.
DTC Practices
The Town can make no assurances that DTC, Direct Participants, Indirect Participants or other nominees of the
Beneficial Owners of the Bonds will act in a manner described in this Official Statement. DTC is required to
act according to rules and procedures established by DTC and its participants which are on file with the
Securities and Exchange Commission.
4Source page 15
AUTHORIZATION AND USE OF PROCEEDS
$1,150,000 of the Bonds are authorized under Chapter 44, Section 21A of the Massachusetts General Laws, as
amended, and a vote of the Board of Selectmen expected to be taken on March 8, 2016 for the purpose of
currently refunding on April 18, 2016 at a redemption price equal to 100% of the outstanding principal amount of
the $3,599,000 General Obligation Municipal Purpose Loan of 2008 Bonds of the Town originally dated January
15, 2008 and maturing January 15, 2017 through 2026, inclusive, in the aggregate principal amount of $1,150,000
(the “Refunded Bonds”), plus accrued interest, on the Refunded Bonds and costs of issuance.
Par Amount Maturity Coupon Rate CUSIP
$ 265,000 January 15, 2017 3.50% 138267SP5
105,000 January 15, 2018 3.55 138267SQ3
100,000 January 15, 2019 3.60 138267SR1
100,000 January 15, 2020 3.75 138267SS9
100,000 January 15, 2021 3.75 138267ST7
100,000 January 15, 2022 3.85 138267SU4
95,000 January 15, 2023 4.00 138267SV2
95,000 January 15, 2024 4.00 138267SW0
190,000** January 15, 2026 4.00 138267SY6
$1,150,000
_____________
** Denotes Term Bond
$1,928,000 of the Bonds are authorized as follows:
Amount Purpose Statutory Authorization Vote Date Article #
$ 139,000 Fire Station 2 Repairs MGL, Ch. 44, s. 7(3A) 05/12/14 11(4)
150,000 Fire Engine Refurbishment MGL, Ch. 44, s. 7(9A) 05/12/14 11(4)
92,000 Radio Master Box Fire Alarm Upgrades MGL, Ch. 44, s. 7(14) 05/12/14 11(4)
250,000 Estey Way Sewers (Sewer Supported) MGL, Ch. 44 s. 8(15) 05/18/15 12(9)
311,000 Water Resources Mngmt (Sewer Suppt) MGL, Ch. 44, s. 8 05/18/15 12(9)
156,000 Fire Protective Gear MGL, Ch. 44, s. 7(9) 05/18/15 12(4)
200,000 DPW Sidewalk Tractor MGL, Ch. 44, s. 7(9) 05/18/15 12(4)
260,000 School Whiteboards MGL, Ch. 44, s. 7(9) 05/18/15 12(5)
170,000 Galvin School Window Replace MGL, Ch. 70B 05/13/13 33
200,000 Hansen School Window Replace MGL, Ch. 70B 05/13/13 32
$1,928,000
Proceeds of the Bonds in the amount of $690,000 will be used to redeem a like amount of the bond anticipation
notes issued at various times and now maturing March 24, 2016 (the “Maturing Notes”) and proceeds of the
Bonds in the amount of $1,238,000 will be used to provide permanent financing for the projects on a “new
money” basis. The sewer debt is expected to be self-supporting through system revenues.
5Source page 16
SOURCES AND USES OF FUNDS FOR THE BONDS
The following information summarizes the estimated sources and uses of funds:
Sources Uses
Par Amount of Bonds $3,078,000.00 Deposit to Current Refunding of Bonds $1,161,147.73
Reoffering Premium 105,745.07 Deposit to Project Fund 1,928,000.00
Underwriter’s Discount 14,353.80
Cost of Issuance 53,165.00
Other 27,078.54
Total Sources $3,183,745.07 Total Uses $3,183,745.07
OPTIONAL REDEMPTION
Bonds maturing in the years 2017 through 2024, inclusive, are not subject to redemption prior to their stated
dates of maturity.
Bonds maturing on and after January 15, 2025 are subject to redemption prior to maturity, at the option of the
Town, on and after January 15, 2024, either in whole or in part at any time, and if in part, by lot within a
maturity, at par plus accrued interest to the date set for redemption.
So long as DTC is the registered owner of the Bonds, notice of any redemption of Bonds, prior to their
maturities, specifying the Bonds (or portions thereof) to be redeemed shall be mailed to DTC not more than 60
days nor less than 30 days prior to the redemption date. Any failure on the part of DTC to notify the DTC
Participants of the redemption or failure on the part of the DTC Participants or of a nominee of a Beneficial
Owner (having received notice from a DTC Participant or otherwise) to notify the Beneficial Owner shall not
affect the validity of the redemption. If moneys for the redemption are held by the Paying Agent on the
redemption date and if notice of the redemption shall have been duly mailed, then from and after the redemption
date interest on the Bonds (or portions thereof) called for redemption shall cease to accrue.
MANDATORY REDEMPTION
A Term Bond, if specified by the successful bidder, will be subject to mandatory redemption on January 15 in
each year or years immediately prior to the stated maturity of such Term Bond (the particular Bonds of such
maturity to be redeemed to be selected by lot) as indicated on the cover page of the Preliminary Official
Statement at the principal amount thereof plus accrued interest to the redemption date.
SECURITY AND REMEDIES
Full Faith and Credit. General obligation bonds and notes of a Massachusetts city or town constitute a pledge of
its full faith and credit. Payment is not limited to a particular fund or revenue source. Except for “qualified bonds”
(see “Serial Bonds and Notes” herein) and setoffs of state distributions (see “State Distributions” herein), no
provision is made by the Massachusetts statutes for priorities among bonds and notes and other general obligations,
although the use of certain moneys may be restricted.
Tax Levy. The Massachusetts statutes direct the municipal assessors to include annually in the tax levy for the
next fiscal year “all debt and interest charges matured and maturing during the next fiscal year and not otherwise
provided for (and) all amounts necessary to satisfy final judgments”. Specific provision is also made for including
6Source page 17
in the next tax levy payments of rebate amounts not otherwise provided for and payment of notes in anticipation of
federal or state aid if the aid is no longer forthcoming.
The total amount of a tax levy is limited by statute. However, the voters in each municipality may vote to exclude
from the limitation any amounts required to pay debt service on indebtedness incurred before November 4, 1980.
Local voters may also vote to exempt specific subsequent bond issues from the limitation (see “Tax Limitations”
herein.) In addition, obligations incurred before November 4, 1980 may be constitutionally entitled to payment
from taxes in excess of the statutory limit. The Town has voted to exclude the debt service on $8,731,500 of
currently outstanding bonds from the limitations of Proposition 2½, subject to the provisions of Chapter 44,
Section 20 of the General Laws.
Except for taxes on the increased value of certain property in designated development districts which may be
pledged for the payment of debt service on bonds issued to finance economic development projects within such
districts, no provision is made for a lien on any portion of the tax levy to secure particular bonds or notes or bonds
and notes generally (or judgments on bonds or notes) in priority to other claims. Provision is made, however, for
borrowing to pay judgments, subject to the General Debt Limit (see Debt Limits herein). Subject to the approval of
the State Director of Accounts for judgments above $10,000, judgments may also be paid from available funds
without appropriation and included in the next tax levy unless other provision is made.
Court Proceedings. Massachusetts cities and towns are subject to suit on their general obligation bonds and
notes and courts of competent jurisdiction have power in appropriate proceedings to order payment of a
judgment on the bonds or notes from lawfully available funds or, if necessary, to order the city or town to take
lawful action to obtain the required money, including the raising of it in the next annual tax levy, within the
limits prescribed by law (see “Tax Limitations” under “TAX LEVIES” herein). In exercising their discretion as
to whether to enter such an order, the courts could take into account all relevant factors including the current
operating needs of the city or town and the availability and adequacy of other remedies. The Massachusetts
Supreme Judicial Court has stated in the past that a judgment against a municipality can be enforced by the
taking and sale of the property of any inhabitant. However, there has been no judicial determination as to
whether this remedy is constitutional under current due process and equal protection standards.
Restricted Funds. Massachusetts statutes also provide that certain water, gas and electric, community antenna
television system, telecommunications, sewer, parking meter and passenger ferry fee, community preservation and
affordable housing receipts may be used only for water, gas and electric, community antenna television system,
telecommunications, sewer, parking, mitigation of ferry service impacts, community preservation and affordable
housing purposes, respectively; accordingly, moneys derived from these sources may be unavailable to pay general
obligation bonds and notes issued for other purposes. A city or town that accepts certain other statutory provisions
may establish an enterprise fund for a utility, health care, solid waste, recreational or transportation facility and for
police or fire services; under those provisions any surplus in the fund is restricted to use for capital expenditures or
reduction of user charges. In addition, subject to certain limits, a city or town may annually authorize the
establishment of one or more revolving funds in connection with use of certain revenues for programs that produce
those revenues; interest earned on a revolving fund is treated as general fund revenue. A city or town may also
establish an energy revolving loan fund to provide loans to owners of privately-held property in the city or town for
certain energy conservation and renewable energy projects, and may borrow to establish such a fund. The loan
repayments and interest earned on the investment of amounts in the fund shall be credited to the fund. Also, the
annual allowance for depreciation of a gas and electric plant or a community antenna television and
telecommunications system is restricted to use for plant or system renewals and improvements, for nuclear
decommissioning costs, and costs of contractual commitments, or, with the approval of the State Department of
Telecommunications and Energy, to pay debt incurred for plant or system reconstruction or renewals. Revenue
bonds and notes issued in anticipation of them may be secured by a prior lien on specific revenues. Receipts from
7Source page 18
industrial users in connection with industrial revenue financings are also not available for general municipal
purposes.
State Distributions. State grants and distributions may in some circumstances be unavailable to pay general
obligation bonds and notes of a city or town in that the State Treasurer is empowered to deduct from such grants
and distributions the amount of any debt service paid on “qualified bonds” (see “Serial Bonds and Notes” under
“TYPES OF OBLIGATIONS” herein) and any other sums due and payable by the city or town to the
Commonwealth, or certain other public entities, including any unpaid assessments for costs of any public
transportation authority such as the Massachusetts Bay Transportation Authority (the “MBTA”) or a regional
transit authority of which it is a member or for costs of the Massachusetts Water Resources Authority (the
“MWRA”) if the city or town is within the territory served by the Authority, for any debt service due on
obligations issued to the Massachusetts School Building Authority, or for charges necessary to meet obligations
under the Commonwealth’s Water Pollution Abatement or Drinking Water Revolving Loan Programs,
including such charges imposed by another local governmental unit that provides wastewater collection or
treatment services or drinking water treatment services to the city or town.
If a city or town is (or is likely to be) unable to pay principal or interest on its bonds or notes when due, it is
required to notify the State Commissioner of Revenue. The Commissioner shall in turn, after verifying the
inability, certify the inability to the State Treasurer. The State Treasurer shall pay the due or overdue amount to
the paying agent for the bonds or notes, in trust, within three days after the certification or one business day
prior to the due date (whichever is later). This payment is limited, however, to the estimated amount otherwise
distributable by the Commonwealth to the city or town during the remainder of the fiscal year (after the
deductions mentioned in the foregoing paragraph). If for any reason any portion of the certified sum has not
been paid at the end of the fiscal year, the State Treasurer shall pay it as soon as practicable in the next fiscal
year to the extent of the estimated distributions for that fiscal year. The sums so paid shall be charged (with
interest and administrative costs) against the distributions to the city or town.
The foregoing does not constitute a pledge of the faith and credit of the Commonwealth. The Commonwealth
has not agreed to maintain existing levels of state distributions, and the direction to use estimated distributions
to pay debt service may be subject to repeal by future legislation. Moreover, adoption of the annual
appropriation act has sometimes been delayed beyond the beginning of the fiscal year and estimated
distributions which are subject to appropriation may be unavailable to pay local debt service until they are
appropriated.
Bankruptcy. Enforcement of a claim for payment of principal or interest on general obligation bonds or notes
would be subject to the applicable provisions of Federal bankruptcy laws and to the provisions of other statutes,
if any, hereafter enacted by the Congress or the State legislature extending the time for payment or imposing
other constraints upon enforcement insofar as the same may be constitutionally applied. Massachusetts
municipalities are not generally authorized by the Massachusetts General Laws to file a petition for bankruptcy
under Federal Bankruptcy Laws. In cases involving significant financial difficulties faced by a single city, town or
regional school district, the Commonwealth has enacted special legislation to permit the appointment of a fiscal
overseer, finance control board or, in the most extreme cases, a state receiver. In a limited number of these
situations, such special legislation has also authorized the filing of federal bankruptcy proceedings, with the prior
approval of the Commonwealth. In each case where such authority was granted, it expired at the termination of the
Commonwealth’s oversight of the financially distressed city, town or regional school district. To date, no such
filings have been approved or made.
8Source page 19
OPINION OF BOND COUNSEL
A copy of the legal opinion of the firm of Locke Lord LLP, Bond Counsel to the Town (“Bond Counsel”) of
Boston, Massachusetts (see Appendix C), will be furnished to the successful bidder for the Bonds. The opinion
will be dated and given on and will speak only as of the date of original delivery of the Bonds.
The scope of engagement of Bond Counsel does not extend to passing upon or assuming responsibility for the
accuracy or adequacy of any statements made in this Official Statement other than matters expressly set forth as
their opinion and they make no representation that they have independently verified the same.
TAX EXEMPTION
In the opinion of Locke Lord LLP, Bond Counsel to the Town (“Bond Counsel”), based upon an analysis of
existing laws, regulations, rulings, and court decisions, and assuming, among other matters, compliance with
certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under
Section 103 of the Internal Revenue Code of 1986, as amended, (the “Code”). Bond Counsel is of the further
opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual or
corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted
current earnings when calculating corporate alternative minimum taxable income. In the opinion of Bond
Counsel, the Bonds are designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3)
of the Code. Bond Counsel expresses no opinion regarding any other federal tax consequences arising with
respect to the ownership or disposition of, or the accrual or receipt of interest on the Bonds.
The Code imposes various requirements relating to the exclusion from gross income for federal income tax
purposes of interest on obligations such as the Bonds. Failure to comply with these requirements may result in
interest on the Bonds being included in gross income for federal income tax purposes, possibly from the date of
original issuance of the Bonds. The Town has covenanted to comply with such requirements to ensure that
interest on the Bonds will not be included in federal gross income. The opinion of Bond Counsel assumes
compliance with these requirements.
Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from
Massachusetts personal income taxes, and the Bonds are exempt from Massachusetts personal property taxes.
Bond Counsel has not opined as to other Massachusetts tax consequences arising with respect to the Bonds.
Prospective Bondholders should be aware, however, that the Bonds are included in the measure of
Massachusetts estate and inheritance taxes, and the Bonds and the interest thereon are included in the measure
of certain Massachusetts corporate excise and franchise taxes. Bond Counsel expresses no opinion as to the
taxability of the Bonds or the income therefrom or any other tax consequences arising with respect to the Bonds
under the laws of any state other than Massachusetts. A complete copy of the proposed form of opinion of
Bond Counsel is set forth in Appendix C hereto.
To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such
Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the
difference constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each
owner thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax
purposes and is exempt from Massachusetts personal income taxes. For this purpose, the issue price of a
particular maturity of the Bonds is the first price at which a substantial amount of such maturity of the Bonds is
sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of
underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the
Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded
9Source page 20
semi-annually (with straight-line interpolations between compounding dates). The accruing original issue
discount is added to the adjusted basis of such Bonds to determine taxable gain or loss upon disposition
(including sale, redemption, or payment on maturity) of such Bonds. Bondholders should consult their own tax
advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the
treatment of purchasers who do not purchase such Bonds in the original offering to the public at the first price at
which a substantial amount of such Bonds is sold to the public.
Bonds purchased, whether at original issuance or otherwise, for an amount greater than the stated principal
amount to be paid at maturity of such Bonds, or, in some cases, at the earlier redemption date of such Bonds
(“Premium Bonds”), will be treated as having amortizable bond premium for federal income tax purposes and
Massachusetts personal income tax purposes. No deduction is allowable for the amortizable bond premium in
the case of obligations, such as the Premium Bonds, the interest on which is excluded from gross income for
federal income tax purposes. However, a Bondholder’s basis in a Premium Bond will be reduced by the amount
of amortizable bond premium properly allocable to such Bondholder. Holders of Premium Bonds should
consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their
particular circumstances.
Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not
taken) or events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the
value of, or the tax status of interest on, the Bonds.
Prospective Bondholders should be aware that from time to time legislation is or may be proposed which, if
enacted into law, could result in interest on the Bonds being subject directly or indirectly to federal income
taxation, or otherwise prevent Bondholders from realizing the full benefit provided under current federal tax law
of the exclusion of interest on the Bonds from gross income. To date, no such legislation has been enacted into
law. However, it is not possible to predict whether any such legislation will be enacted into law. Further, no
assurance can be given that any pending or future legislation, including amendments to the Code, if enacted into
law, or any proposed legislation, including amendments to the Code, or any future judicial, regulatory or
administrative interpretation or development with respect to existing law, will not adversely affect the market
value and marketability of, or the tax status of interest on, the Bonds. Prospective Bondholders are urged to
consult their own tax advisors with respect to any such legislation, interpretation or development.
Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal
income tax purposes and is exempt from Massachusetts personal income taxes, the ownership or disposition of,
or the accrual or receipt of interest on, the Bonds may otherwise affect the federal or state tax liability of a
Bondholder. Among other possible consequences of ownership or disposition of, or the accrual or receipt of
interest on, the Bonds, the Code requires recipients of certain social security and certain railroad retirement
benefits to take into account receipts or accruals of interest on the Bonds in determining the portion of such
benefits that are included in gross income. The nature and extent of all such other tax consequences will depend
upon the particular tax status of the Bondholder or the Bondholder’s other items of income, deduction or
exclusion. Bond Counsel expresses no opinion regarding any such other tax consequences, and Bondholders
should consult with their own tax advisors with respect to such consequences.
RATING
Application has been made to Standard & Poor’s Ratings Services for a rating on the Bonds. Such rating, if
obtained, will reflect only the rating agency’s view and will be subject to revision or withdrawal, which could
affect the market price of the Bonds.
10Source page 21
CONTINUING DISCLOSURE
In order to assist the original purchasers of the Bonds in complying with Rule 15c2-12(b)(5) promulgated by the
Securities and Exchange Commission (the “Rule”), the Town will covenant for the benefit of owners of the
Bonds to provide certain financial information and operating data relating to the Town by not later than 270
days after the end of each fiscal year, (the “Annual Report”), and to provide notices of the occurrence of certain
significant events. The covenants will be contained in a Continuing Disclosure Certificate, the proposed form
of which is provided in Appendix D. The Certificate will be executed by the signers of the Bonds, and
incorporated by reference in the Bonds. The Town is the only “obligated person” with respect to the Bonds
within the meaning of the Rule. In each of the last five years, the Town believes it has complied in all material
respects with all previous undertakings to provide annual reports or notices of significant events in accordance
with the Rule.
11Source page 22
PART II
THE TOWN
The Town of Canton, settled in 1650 and incorporated in 1797, is located in Norfolk County approximately 18
miles south of downtown Boston. The Town covers an area of approximately 18 square miles and is bordered
by the Towns of Milton, Randolph, Stoughton, Sharon, Norwood, Westwood and Dedham.
SERVICES
The Town provides general governmental services for the territory within its boundaries, including police and
fire protection, public education in grades K though 12, water and sewer, streets, parks and recreation. The
principal services provided by Norfolk County are space for courts, a jail and house of correction and registry of
deeds. The MBTA provides bus service to the Town and commuter rail at two central locations within the
Town. The Blue Hills Regional Vocational High School provides vocational technical education in grades nine
through twelve. The Canton Housing Authority provides housing for eligible low income families, elderly and
handicapped persons.
GOVERNING BODIES AND OFFICERS
Local legislative decisions are made by an open town meeting consisting of all registered voters in the Town.
Subject to the legislative decisions made by Town Meeting, the affairs of the Town are generally administered
by a board of five selectmen, elected for staggered three-year terms on an at-large basis. Local taxes are
assessed by a board of three assessors elected for staggered three-year terms. The affairs of the schools are
generally administered by a School Committee of five members, elected for staggered three-year terms on an at-
large basis.
The following are the principal executive officers:
Manner of Selection Term
Office Name and Term Expires
Selectmen John J. Connolly, Chairman Elected/3 years 2016
Robert E. Burr Jr., Vice Chair Elected/3 years 2017
Kevin Feeney, Clerk Elected/3 years 2018
Victor D. DelVecchio Elected/3 years 2017
Mark J. Porter Elected/3 years 2018
Town Administrator William T. Friel Appointed/1 year 2016
Finance Director/
Treasurer/Collector James R. Murgia Appointed/1 year 2016
Accountant Kathleen Dooley Butters Appointed/1 year 2016
Town Clerk Tracy Kenney Elected/3 years 2018
Town Counsel Paul DeRensis Appointed/1 year 2016
12Source page 23
AUTHORIZATION OF GENERAL OBLIGATION BOND AND NOTES
Serial bonds and notes are authorized by vote of two-thirds of all the members of the city council (subject to the
mayor’s veto where the mayor has a veto power) or a two-thirds vote of the town meeting. Provision is made in
some cities and towns for a referendum on the borrowing authorization if there is a timely filing of a petition
bearing the requisite number of signatures. Refunding bonds and notes are authorized by the city council or the
selectmen. Borrowings for some purposes require State administrative approval.
When serial bonds or notes have been authorized, bond anticipation notes may be issued by the officers
authorized to issue the serial bonds or notes. Temporary debt in anticipation of the revenue of the fiscal year in
which the debt is incurred or in anticipation of authorized federal and state aid generally may be incurred by the
treasurer with the approval of the selectmen, mayor or city manager as the case may be.
DEBT LIMITS
General Debt Limit. The General Debt Limit of the Town consists of a Normal Debt Limit and a Double Debt
Limit. The Normal Debt Limit is 5 percent of the valuation of taxable property as last equalized by the State
Department of Revenue. The Town can authorize debt up to this amount without state approval. It can
authorize debt up to twice this amount (the Double Debt Limit) with the approval of the State Municipal
Finance Oversight Board composed of the State Treasurer, the State Auditor, the Attorney General and the
Director of Accounts.
There are many categories of general obligation debt which are exempt from and do not count against the General
Debt Limit. Among others, these exempt categories include revenue anticipation notes and grant anticipation
notes; emergency loans; loans exempted by special laws; certain school bonds, sewer bonds, solid waste disposal
facility bonds and economic development bonds supported by tax increment financing; and subject to special debt
limits, bonds for water (limited to 10 percent of equalized valuation), housing, urban renewal and economic
development (subject to various debt limits), and electric, gas, community antenna television systems, and
telecommunications systems (subject to separate limits). Revenue bonds are not subject to these debt limits. The
General Debt Limit and the special debt limit for water bonds apply at the time the debt is authorized. The other
special debt limits generally apply at the time the debt is incurred.
Revenue Anticipation Notes. The amount borrowed in each fiscal year by the issue of revenue anticipation
notes is limited to the tax levy of the prior fiscal year, together with the net receipts in the prior fiscal year from
the motor vehicle excise and certain payments made by the Commonwealth in lieu of taxes. The fiscal year
ends on June 30. Notes may mature in the following fiscal year, and notes may be refunded into the following
fiscal year to the extent of the uncollected, unabated current tax levy and certain other items, including revenue
deficits, overlay deficits, final judgments and lawful unappropriated expenditures, which are to be added to the
next tax levy, but excluding deficits arising from a failure to collect taxes of earlier years (see “Taxation to Meet
Deficits” herein). In any event, the period from an original borrowing to its final maturity cannot exceed one
year.
TYPES OF OBLIGATIONS
General Obligations. Massachusetts cities and towns are authorized to issue general obligation indebtedness
of these types:
Serial Bonds and Notes. These are generally required to be payable in annual principal amounts beginning no
later than the end of the next fiscal year commencing after the date of issue and ending within the terms
permitted by law. A level debt service schedule, or a schedule that provides for a more rapid amortization of
13Source page 24
principal than level debt service, is permitted. The principal amounts of certain economic development bonds
supported by tax increment financing may be payable in equal, diminishing or increasing amounts beginning
within 5 years after the date of issue. The maximum terms vary from one year to forty years, depending on the
purpose of the issue. The maximum terms permitted are set forth in the statutes. In addition, for many projects,
the maximum term may be determined in accordance with useful life guidelines promulgated by the State
Department of Revenue (“DOR”). Serial bonds and notes may be issued for the purposes set forth in the
statutes. In addition, serial bonds and notes may be issued for any other public work improvement or asset not
specifically listed in the Statutes that has a useful life of at least 5 years. Bonds or notes may be made callable
and redeemed prior to their maturity, and a redemption premium may be paid. Refunding bonds or notes may
be issued subject to the maximum applicable term measured from the date of the original bonds or notes, and
must produce present value savings over the debt service of the refunded bonds. Generally, the first required
annual payment of principal of the refunding bonds cannot be later than the first principal payment of any of the
bonds or notes being refunded thereby, however, principal payments made before the first principal payment of
any of the bonds or notes being refunded thereby may be in any amount.
Serial bonds may be issued as “qualified bonds” with the approval of the state Municipal Finance Oversight
Board composed of the State Treasurer, the State Auditor, the Attorney General and the Director of Accounts,
subject to such conditions and limitations (including restriction on future indebtedness) as may be required by
the Board. Qualified bonds may mature not less than 10 nor more than 30 years from their dates and are not
subject to the amortization requirements described above. The State Treasurer is required to pay the debt
service on qualified bonds and thereafter to withhold the amount of the debt service paid by the State from state
aid or other state payments; administrative costs and any loss of interest income to the State are to be assessed
upon the city or town.
Tax Credit Bonds or Notes. Subject to certain provisions and conditions, the officers authorized to issue
bonds or notes may designate any duly authorized issue of bonds or notes as “tax credit bonds” to the extent
such bonds and notes are otherwise permitted to be issued with federal tax credits or other similar subsidies for
all or a portion of the borrowing costs. Tax credit bonds may be made payable without regard to the annual
installments required by any other law, and a sinking fund may be established for the payment of such bonds.
Any investment that is part of such a sinking fund may mature not later than the date fixed for payment or
redemption of the applicable bonds.
Bond Anticipation Notes. These must generally mature within two years of their original dates of issuance,
but may be refunded from time to time for a period not to exceed five years from their original date of issuance,
provided that for each year that the notes are refunded beyond the second year they must be paid in part from
revenue funds in an amount at least equal to the minimum annual payment that would have been required if the
bonds had been issued at the end of the second year. For certain school projects, however, notes may be
refunded from time to time for a period not to exceed seven years without having to pay any portion of the
principal of the notes from revenue funds. The maximum term of bonds issued to refund bond anticipation
notes is measured (except for certain school projects) from the date of the original issue of the notes.
Revenue Anticipation Notes. These are issued to meet current expenses in anticipation of taxes and other
revenues. They must mature within one year but, if payable in less than one year, may under statute be
refunded from time to time up to one year from the original date of issue.
Grant Anticipation Notes. These are issued for temporary financing in anticipation of federal grants and state
reimbursements. They must generally mature within two years but may be refunded from time to time as long
as the municipality remains entitled to the grant or reimbursement.
14Source page 25
Revenue Bonds. Cities and towns may issue revenue bonds for solid waste disposal facilities and for projects
financed under the Commonwealth's Water Pollution Abatement or Drinking Water Revolving Loan Programs
and for certain economic development projects supported by tax increment financing. In addition, cities and
town having electric departments may issue electric revenue bonds, and notes in anticipation of such bonds
subject to the approval of the State Department of Telecommunications and Energy. The Town does not have
an electric department.
DEBT (1)
The following shows the direct debt outstanding as of March 17, 2016, including the Refunded Bonds and the
Non-Refunding portion of the Bonds, but not including the Refunding portion of the Bonds:
General Obligation Bonds:
Within General Debt Limit (2)
Sewers and Drains (3) $ 2,651,000
Land Acquisition 310,300
Schools (5) 10,865,200
Other Building 7,834,100
Departmental Equipment 1,907,000
Athletic & Recreational Facilities 30,000
Other Inside General 153,000
Architectural & Engineering Services 343,000
These Bonds 1,367,000
$25,460,600
Outside General Debt Limit:
Schools (5) $ 3,011,000
Sewers (3) 5,541,725
Water (3) 19,816,300
Other Outside General 395,226
These Bonds 561,000
$29,325,251
Total General Obligation Bonds $54,785,251 (4)
Temporary Loans in Anticipation of:
Revenue $ 0
Bonds (6) 3,685,000
Grants 0
Total Temporary Loans 0
Total Direct Debt $58,470,251
___________________
(1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability, and
other post-employment benefits liability.
(2) At the present time, the normal general debt limit is $204,182,895 and the double general debt limit is $408,365,790.
(3) Water and sewer debt is self-supporting through user fees.
(4) $8,731,500 has been excluded from the provisions of Proposition 2 ½.
(5) The Massachusetts School Building Authority has approved a grant for 61% of approved construction and interest costs of the
Luce School project to be payable in equal installments over the life of the bonds.
(6) Does not include $797,786 of bond anticipation notes maturing on March 24, 2016 to be redeemed with $690,000 of the proceeds
of the Bonds and $107,786 of current revenues. Includes $3,685,000 of bond anticipation notes being issued on March 24, 2016 and
maturing on March 24, 2017.
15Source page 26
Revenue Anticipation Borrowing
The Town has not borrowed in anticipation of revenue since fiscal 1991, and has no plans to do so at the present
time.
Authorized Unissued Debt and Prospective Financing
After the issuance of these Bonds, the Town will have the following authorized unissued debt:
Expected Expected
Amount Purpose Issuance Repayment
$2,119,095 Sewer Various User fee supported (1)
75,000 Old Shepard St Dam Repair (3) Various Levy
60,000 DPW Garage Security System (3)Various Levy
200,000 Septic None Betterment (2)
2,920,000 Water (4) Various User fee supported (1)
5,636,458 School Remodeling (4) Various Levy
1,740,000 Land Acquisition Various Levy (CPA surcharge)
50,000 ADA Renovations (3) Various Levy
245,000 Rink Equipment Various User fee supported (1)
8,597,000 Revere Street Various Development District/Levy
$21,642,553
____________________
(1) While all debt issued by the Town is general obligation debt, it is anticipated that debt service on these projects will be supported
by user fees.
(2) While all debt issued by the Town is general obligation debt, it is anticipated that the debt service on this project will be supported
by betterments to be assessed.
(3) The Town is issuing Bond Anticipation Notes dated March 24, 2016 and maturing March 24, 2017 (the “2016 BANs”) for this
purpose.
(4) The Town is issuing the 2016 BANs for $300,000 of the Water purpose, and $3,200,000 of the School Remodeling purpose.
Capital Expenditures Projection
The Town's By-Laws established a Capital Planning Committee which is required to prepare annually a capital
needs analysis which is submitted to the Annual Town Meeting. The Finance Department’s five-year plan
earmarks 6% of the projected general fund revenues each year for capital purposes. The table below
summarizes the Town Meeting appropriations for fiscal year 2016 and a current capital needs analysis and
Finance Committee recommendation for fiscal 2017 through 2020. This analysis is updated and revised
annually.
16Source page 27
(000 omitted)
2016 2017 2018 2019 2020
Police $ 177 $ 188 $ 148 $ 148 0
Fire/Ambulance 482 515 695 410 639
DPW 482 291 44 550 600
Schools 1,390 609 938 650 2,262
Library 23 30 35 25 110
Recreation 35 65 0 60 0
Senior Services 63 0 63 0 0
Finance Dept./MIS 80 46 45 107 65
Building/Property Maintenance 25 0 0 0 0
Total 2,757 1,744 1,968 1,950 3,676
Enterprise Funds (1):
Water 3,002 1,797 1,520 1,805 884
Sewer 561 1,070 1,305 1,165 140
Skating Rink 0 0 0 0 0
Total 3,563 2,867 2,825 2,970 1,024
Total Capital Expenditures $6,320 $4,611 $4,793 $4,920 $4,700
________________
(1) Capital expenditures are expected to be paid from user fees and enterprise fund surplus.
[Remainder of page intentionally left blank]
17Source page 28
Five Years Outstanding Debt (1)
As of June 30
Within the General Debt Limit 2015 2014 2013 2012 2011
Sewers & Drains (2) $ 3,105,900 $ 3,476,000 $ 3,444,770 $ 3,709,825 $ 3,610,470
Land Acquisition 489,500 721,500 1,109,120 1,361,505 1,617,540
Schools 12,064,050 12,193,500 19,375,665 19,799,350 20,002,802
Other Building 8,729,300 9,809,600 11,769,140 12,789,748 13,019,057
Departmental Equipment 2,246,200 1,478,200 1,864,000 2,373,000 2,964,016
Architectural/Engineering 403,000 477,000 551,000 122,000 270,000
Services
Athletic & Recreational 35,000 40,000 45,000 50,000 55,000
Facilities
Other Inside General 240,400 329,700 422,000 319,000 391,000
Total Within the General Debt Limit $27,313,350 $28,525,500 $38,580,695 $40,524,428 $41,929,885
Outside the General Debt Limit
Sewers (2) $ 5,934,340 $5,900,455 $ 5,948,885 $ 6,260,844 $ 4,469,695
Schools 3,046,000 3,576,000 4,117,159 4,280,500 4,802,000
Other 416,000 0 0 0 0
Water (2) 20,816,050 21,786,300 20,298,105 18,192,980 14,839,115
Total Outside the General Debt Limit 30,212,390 31,262,755 30,364,149 28,734,324 24,110,810
Total Long-Term Indebtedness $57,525,740 $59,788,255 $68,944,844 $69,258,752 $66,040,695
Short-Term Indebtedness
Revenue Anticipation $ 0 $ 0 $ 0 $ 0 $ 0
Notes
Grant Anticipation Notes 0 0 0 0 0
Bonds Anticipation Notes 797,786 2,915,950 2,209,800 5,280,331 1,825,308
Total Short-Term Indebtedness 797,786 2,915,950 2,209,800 5,280,331 1,825,308
Total Outstanding Indebtedness $58,323,526 $62,704,205 $71,154,644 $74,539,083 $67,866,003
_____________________
(1) Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability and other post-employment
benefits liability.
(2) All water and sewer debt are paid from water and sewer revenues.
Bonded Debt vs. Population, Valuations and Income
As of June 30
2015 2014 2013 2012 2011
Amount (1) $57,525,740 $59,788,255 $68,944,844 $69,258,752 $66,040,695
Per Capita (2) $2,556 $2,690 $3,144 $3,158 $3,042
Percent of Assessed Valuation (3) 1.41% 1.54% 1.74% 1.75% 1.66%
Percent of Equalized Valuation (4) 1.41% 1.45% 1.67% 1.58% 1.51%
Per Capita as a percent of Personal 5.31% 5.84% 6.84% 6.87% 6.61%
Income per Capita (2)
_____________________
18Source page 29
(1) Outstanding principal on general obligation bonds. Excludes lease and installment purchase obligations, overlapping debt,
unfunded pension liability and other post-employment benefits liability.
(2) Source: U.S. Department of Commerce, Bureau of the Census - latest applicable actuals or estimates.
(3) Source: Board of Assessors - assessed valuation as of the prior January 1.
(4) Source: Massachusetts Department of Revenue. The equalized valuation used here is the equalized valuation in effect for that
fiscal year.
AnnualD ebtService (1)
Non-Refunding Cumulative
Fiscal Outstanding as of 3/17/16 Portion of the Bonds (3) Principal
Year Principal(2) Interest(2) Principal Interest Total Retired
2016 $ 1,880,000 $ 315,454 §$ - $ - "$ 2,195,454 3.4%
2017 6,197,383 1,722,441 243.000 58.391 8,221,215 15.2%
2018 5.726.100 1,518,249 240.000 63,250 7,547,599 26.1%
2019 5.454.892 1,318,329 225,000 53.650 7,051,871 36.4%
2020 5.055.461 1,122,847 220,000 42.400 6.440.708 46.1%
2021 4.764.406 953.163 215.000 31.400 5.963.969 55.2%
2022 4.132.436 776.961 165.000 20.650 5.095.047 63.0%
2023 3.796.544 626.965 165,000 12,400 4.600.909 70.2%
2024 3,135,735 496.261 165.000 9.100 3.806.096 76.3%
2025 2.256.010 407,998 155,000 5.800 2.824.808 80.7%
2026 1,960,373 337,898 135.000 2.700 2.435.971 84.5%
2027 1.869.823 274.814 - - 2.144.637 87.9%
2028 1.774.363 213.774 - - 1,988,137 91.1%
2029 1.608.995 155.380 - - 1,764,375 94.1%
2030 1,338,720 101,461 - - 1.440.181 96.5%
2031 1.098.541 57,259 - - 1,155,800 98.5%
2032 598.938 24.736 - - 623.674 99.6%
2033 169.319 5,586 - - 174.905 99.9%
2034 19.707 698 - - 20.405 100.0%
2035 20.103 302 - - 20.405 100.0%
$ 52,857.849 $10.430.576 $1.928.000 $299.741 $ 65,516,166
(1) Excludes revenue anticipation notes, grant anticipation notes, bond anticipation notes, lease and installment purchase obligations,
overlapping debt, unfunded pension liability, other post-employment benefits liabilities and the Refunding Bonds but includes the
Refunded Bonds.
(2) Principal totaling $8,731,500 and interest totaling $1,323,769 has been exempted from the provisions of Proposition 2 1/2.
Principal totaling $27,545,825 and interest totaling $5,988,479 is self-supporting.
(3) Assumes average coupon rate of 3.25%
[Original embedded text, retained for comparison]
(1) Outstanding principal on general obligation bonds. Excludes lease and installment purchase obligations, overlapping debt,
unfunded pension liability and other post-employment benefits liability.
(2) Source: U.S. Department of Commerce, Bureau of the Census - latest applicable actuals or estimates.
(3) Source: Board of Assessors - assessed valuation as of the prior January 1.
(4) Source: Massachusetts Department of Revenue. The equalized valuation used here is the equalized valuation in effect for that
fiscal year.
Annual Debt Service (1)
___________________
(1) Excludes revenue anticipation notes, grant anticipation notes, bond anticipation notes, lease and installment purchase obligations,
overlapping debt, unfunded pension liability, other post-employment benefits liabilities and the Refunding Bonds but includes the
Refunded Bonds.
(2) Principal totaling $8,731,500 and interest totaling $1,323,769 has been exempted from the provisions of Proposition 2 1/2.
Principal totaling $27,545,825 and interest totaling $5,988,479 is self-supporting.
(3) Assumes average coupon rate of 3.25%
19Source page 30
CONTRACTS
Municipal contracts are generally limited to currently available appropriations. A city or town generally has
authority to enter into contracts for the exercise of any of its corporate powers for any period of time deemed to
serve its best interests, but generally only when funds are available for the first fiscal year; obligations for
succeeding fiscal years generally are expressly subject to availability and appropriation of funds. Municipalities
have specific authority in relatively few cases to enter into long-term contractual obligations that are not subject
to annual appropriation, including contracts for refuse disposal and sewage treatment and disposal.
Municipalities may also enter into long-term contracts in aid of housing and renewal projects. There may be
implied authority to make other long-term contracts required to carry out authorized municipal functions, such
as contracts to purchase water from private water companies
Municipal contracts relating to solid waste disposal facilities may contain provisions requiring the delivery of
minimum amounts of waste and payments based thereon and requiring payments in certain circumstances
without regard to the operational status of the facilities.
Municipal electric departments have statutory power to enter into long-term contracts for joint ownership and
operation of generating and transmission facilities and for the purchase or sale of capacity including contracts
requiring payments without regard to the operational status of the facilities. The Town does not have an electric
light department.
Cities and towns are authorized to lease (as lessee) off-street parking facilities, school buildings, hospital
equipment, data process equipment, energy conservation equipment and educational equipment for periods
ranging up to 10 years. They may also lease equipment, with the option to purchase, for a period up to 10 years.
Contracts may also be made for the installment purchase of energy conservation equipment over a period up to
10 years. Cities and towns may also lease various properties as lessor. The Town has not entered into any lease
or installment purchase contracts of a substantial nature.
Pursuant to the Home Rule Amendment to the Massachusetts Constitution, cities and towns may also be
empowered to make other contracts and leases.
The Town has contracted with Republic Services for waste collection and disposal. This contract expires on
June 30, 2017. The current cost for disposal is $64.50 per ton. The total cost for collection, transportation and
disposal for fiscal year 2011 was $1,360,331, for fiscal 2012 was $1,423,668, for fiscal 2013 was $1,453,522,
for fiscal 2014 was $1,484,613, the total cost for fiscal 2015 was $1,665,574 and the amount budgeted for fiscal
year 2016 is $1,762,000. The fiscal 2016 cost for the Solid Waste Program is shown below:
Category Vendor Fiscal 2016 Appropriations
Rubbish
Collection & Transportation Republic Services $1,275,000
Disposal Republic Services 387,000
Landfill Monitoring Woodard & Curran 25,000
Yard Waste
Collection, Transportation American Earth
and Disposal Products 60,000
Hazardous Waste
CRT Recycling Clean Harbors 15,000
Total $1,762,000
20Source page 31
OVERLAPPING DEBT
Counties
County expenses including debt service on county bonds are assessed upon the cities and towns within the
county in proportion to their taxable valuation as last equalized by the State Commissioner of Revenue.
Legislation enacted in 1997 abolished the county governments of Franklin and Middlesex Counties as of July 1,
1997, with their assets, functions, debts and other obligations being assumed by the Commonwealth. The
abolishment of the Middlesex County government was in part response to a default by the county in the
payment of general obligation notes of the county. The legislation also abolished the county governments of
Hampden and Worcester Counties as of July 1, 1998. Legislation enacted in 1998 abolished the county
governments of Hampshire, Essex and Berkshire counties as of January 1, 1999, July 1, 1999 and July 1, 2000,
respectively. The legislation also requires the state secretary for administration and finance to establish a plan
to recover the Commonwealth’s expenditures for the liabilities and other debts assumed and paid by the
Commonwealth on behalf of an abolished county. Unless these provisions are changed by further legislation,
the state treasurer shall assess upon each city and town within the jurisdiction of an abolished county an amount
not exceeding or equal to the county tax paid by each such city and town for the fiscal year immediately prior to
the abolishment of the county (or two years prior in the case of Essex County) until such expenditures by the
Commonwealth are recovered. It is possible that similar legislation will be sought to provide for the
abolishment of county government in other counties.
Massachusetts Water Resources Authority
The Massachusetts Water Resources Authority (the “MWRA”) provides wholesale drinking water services in
whole or in part to 48 cities, towns and special purpose entities and provides wastewater collection and treatment
services to 43 cities, towns and special purpose entities. Under its enabling legislation, as amended, the aggregate
principal amount of all bonds issued by the MWRA for its corporate purposes may not exceed $6.1 billion
outstanding at any time. Its obligations are secured by revenues of the MWRA. The MWRA assesses member
cities, towns and special purpose entities, which continue to provide direct retail water and sewer services to users.
The cities, towns and other entities collect fees from the users to pay all or part of the assessments; some
municipalities levy property taxes to pay part of the amounts assessed upon them.
Massachusetts Bay Transportation Authority
The MBTA was created in 1964 to finance and operate mass transportation facilities within the greater Boston
metropolitan area. Under its enabling act, the MBTA is authorized to issue bonds for capital purposes, other
than refunding bonds, and for certain specified purposes to an outstanding amount, which does not exceed the
aggregate principal amount of $3,556,300,000. In addition, pursuant to certain of the Commonwealth’s
transportation bond bills, the MBTA is authorized to issue additional bonds for particular capital projects. The
MBTA also is authorized to issue bonds of the purpose of refunding bonds. Under the MBTA’s enabling act debt
service, as well as other operating expenses of the MBTA, are to be financed by a dedicated revenue stream
consisting of the amounts assessed on the cities and towns of the MBTA and a dedicated portion of the statewide
sales tax. The amount assessed to each city and town is based on its weighted percentage of the total population of
the authority as provided in the enabling act. The aggregate amount of such assessments is generally not permitted
to increase by more than 2.5 percent per year. (See “Tax Limitations” under “TAX LEVIES” herein.)
21Source page 32
The following table sets forth the portion of overlapping debt relating to the Town (1):
Assessments for
Operations and
Authorized Debt Service
Outstanding Unissued Fiscal Year 2016
Norfolk County (2) $ 11,830,000 $0 $201,584
Blue Hills Regional Vocational
Technical School District (3) 0 $0 (3) $1,120,445
Massachusetts Clean Water Water $1,286,728
Trust (4) $123,690,000 (See Above) Sewer $3,933,960
Massachusetts Bay
Transportation Authority (5) N/A (See Above) $475,852
_________________________
(1) Principal amount only. Excludes temporary loans in anticipation of revenue. Omits debt of the Commonwealth.
(2) Source: Treasurer, Norfolk County. Debt is as of March 17, 2016. Authorized debt includes debt authorized by the County
Commissioners under general laws and debt permitted by special enabling acts whether or not yet voted by County Commissioners.
County expenses including debt service on county bonds are assessed upon the cities and towns within the county in proportion to
their taxable valuation as last equalized by the State Commissioner of Revenue. Amount shown here is based on most recent
equalized valuations.
(3) Source: Blue Hills Regional Vocational Technical School District. Debt is as of March 17, 2016. Towns may organize regional
school districts to carry out general or specialized educational functions. The operating expenses and debt service of regional school
districts are apportioned among the member municipalities in accordance with the agreements establishing the districts subject to the
provisions of the Education Reform Act of 1993. The other members of the District are the Towns of Avon, Braintree, Dedham,
Holbrook, Milton, Norwood, Randolph and Westwood. The Commonwealth of Massachusetts in July of 1986 took over the Blue Hills
Technical Institute and made it a part of Massasoit Community College. As part of this arrangement, the state agreed to be
responsible for 100% of the remaining outstanding debt of the School District.
(4) The Town’s share is supported by Water and Sewer Enterprise Funds.
(5) Under forward funding legislation, which began in fiscal 2001, member communities are no longer responsible for overlapping
debt, but only for the municipal assessment. Outstanding amount includes only General transportation system bonds issued before
2001. Debt as of June 30, 2015. As of June 30, 2014, the most recent date available, the Authority had $4.367 billion general revenue
bonds, $304.6 million Metropolitan Boston Transit Parking bonds, $428.3 million Build America Bonds, and $101 million bond
anticipation notes outstanding. This debt is not included in the overlapping debt presented above.
RETIREMENT PLAN
The Massachusetts General Laws provide for the establishment of contributory retirement systems for state
employees, for teachers and for county, city and town employees other than teachers. Teachers are assigned to a
separate statewide teachers’ system and not to the city and town systems. For all employees other than teachers,
this law is subject to acceptance in each city and town. Substantially all employees of an accepting city or town are
covered. If a town has a population of less than 10,000 when it accepts the statute, its non-teacher employees
participate through the county system and its share of the county cost is proportionate to the aggregate annual rate
of regular compensation of its covered employees. In addition to the contributory systems, cities and towns provide
non-contributory pensions to a limited number of employees, primarily persons who entered service prior to July 1,
1937 and their dependents. The Public Employee Retirement Administration Commission (“PERAC”) provides
oversight and guidance for and regulates all state and local retirement systems.
The obligations of a city or town, whether direct or through a county system, are contractual legal obligations and
are required to be included in the annual tax levy. If a city or town, or the county system of which it is a member,
has not established a retirement system funding schedule as described below, the city or town is required to provide
for the payment of the portion of its current pension obligations which is not otherwise covered by employee
contributions and investment income. “Excess earnings,” or earnings on individual employees’ retirement accounts
22Source page 33
in excess of a predetermined rate, are required to be set aside in a pension reserve fund for future, not current,
pension liabilities. Cities and towns may voluntarily appropriate to their system’s pension reserve fund in any given
year up to five percent of the preceding year’s tax levy. The aggregate amount in the fund may not exceed ten
percent of the equalized valuation of the city or town.
If a city or town, or each member city and town of a county retirement system, has accepted the applicable law, it is
required to annually appropriate an amount sufficient to pay not only its current pension obligations, but also a
portion of its future pension liability. The portion of each such annual payment allocable to future pension
obligations is required to be deposited in the pension reserve fund. The amount of the annual city or town
appropriation for each such system is prescribed by a retirement system funding schedule which is periodically
reviewed and approved by PERAC. Each system’s retirement funding schedule is designed to reduce the unfunded
actuarial pension liability of the system to zero by not later than June 30, 2030, with annual increases in the
scheduled payment amounts of not more than 4.5 percent. The funding schedule must provide that payment in any
year of the schedule is not less than 95 percent of the amount appropriated in the previous fiscal year. City, town
and county systems which have an approved retirement funding schedule receive annual pension funding grants
from the Commonwealth for the first 16 years of such funding schedule. Pursuant to recent legislation, a system
(other than the state employees’ retirement system and the teachers’ retirement system) which conducts an actuarial
valuation as of January 1, 2009, or later, may establish a revised schedule which reduces the unfunded actuarial
liability to zero by not later than June 30, 2040, subject to certain conditions. If the schedule is so extended under
such provisions and a later updated valuation allows for the development of a revised schedule with reduced
payments, the revised schedule shall be adjusted to provide that the appropriation for each year shall not be less
than that for such year under the prior schedule, thus providing for a shorter schedule rather than reduced payments.
Norfolk County Retirement System’s last actuarial study, as of January 1, 2014, indicates that the system is
expected to be fully funded by June 30, 2031.
City, town and county systems may choose to participate in the Pension Reserves Investment Trust Fund (the
“PRIT Fund”), which receives additional state funds to offset future pension costs of participating state and local
systems. If a local system participates in the PRIT Fund, it must transfer ownership and control of all assets of its
system to the Pension Reserves Investment Management Board, which manages the investment and reinvestment
of the PRIT Fund. Cities and towns with systems participating in the PRIT Fund continue to be obligated to fund
their pension obligations in the manner described above. The additional state appropriations to offset future
pension liabilities of state and local systems participating in the PRIT Fund are required to total at least 1.3 percent
of state payroll. Such additional state appropriations are deposited in the PRIT Fund and shared by all participating
systems in proportion to their interests in the assets of the PRIT Fund as of July 1 for each fiscal year.
Cost-of-living increases for each local retirement system may be granted and funded only by the local system, and
only if it has established a funding schedule. Those statutory provisions are subject to acceptance by the local
retirement board and approval by the local legislative body, which acceptance may not be revoked.
The Town participates in the contributory retirement system of Norfolk County. The annual contributions of
the Town to the Norfolk County Retirement System for the most recent fiscal years and the amount budgeted
for fiscal 2016 are as follows:
Fiscal Year Amount
2016 (budgeted) $3,990,657
2015 3,570,734
2014 3,169,146
2013 3,041,784
2012 2,898,532
23Source page 34
As of January 1, 2014 (the most recent date available), the Norfolk County Retirement system had assets valued
at $696,682,779, using an 8.25% rate of return to support an actuarial accrued liability of $1,247,596,772,
leaving an estimated unfunded actuarial liability in the amount of $550,913,993. The Town’s share of this
liability is approximately 7.39% or $40,712,540. For additional information regarding the System go to the
website http://www.mass.gov/perac/norfolk/norfolkval14.pdf.
The foregoing data do not include the retirement system costs or liabilities attributable to employees of the
county or the retirement system costs or liabilities of any other entity of which the Town is a constituent part.
Other Post-Employment Benefits (OPEB). In addition to pension benefits, cities and towns may provide retired
employees with health care and life insurance benefits. The portion of the cost of such benefits paid by cities or
towns is generally provided on a pay-as-you-go basis. The costs paid by the Town for OPEB for the most recent
fiscal years and the amount projected for fiscal 2016 are as follows:
Fiscal Year Amount
2016 (projected) $3,843,040
2015 4,346,287
2014 5,179,872
2013 4,526,092
2012 4,457,155
The Governmental Accounting Standards Board (“GASB”) Statement Nos. 43 and 45, which requires public sector
entities to report the future costs of these non-pension, post-employment benefits in their financial statements.
These accounting standards do not require pre-funding such benefits, but the basis applied by the standards for
measurement of costs and liabilities for these benefits is conservative if they continue to be funded on a pay-as-you-
go basis and will result in larger yearly cost and liability accruals than if such benefits were pre-funded in a trust
fund in the same manner as traditional pension benefits. Cities and towns that choose to self-insure all or a portion
of the cost of the health care benefits they provide to employees and retirees may establish a trust fund for the
purpose of paying claims. In addition, cities and towns may establish a trust fund for the purpose of pre-funding
other post-employment benefits liability in the same manner as traditional pension benefits.
The Town was required to implement the GASB reporting requirements for other post-employment benefits
beginning in fiscal year 2009. The Town hired an outside firm to perform an actuarial valuation of its post-
employment benefit liability. The actuarial accrued liability of this obligation to the Town of Canton, as of January
1, 2013, is $142,752,366 on a pay-as-you-go basis (assuming a 4.20% discount rate). This required an annual
contribution by the Town of $12,935,961 in fiscal 2014 on a pay-as-you-go basis. At the Town’s 2013 Annual
Town Meeting an OPEB Trust Fund was established pursuant MGL Chapter 32B Section 20. The current balance
in the fund as of June 30, 2015 was $1,190,793. The Town contributed an additional $750,000 from the fiscal 2016
budget to this fund. (See Appendix B for more information on “Other Post-Employment Benefits”.)
PROPERTY TAXATION AND VALUATION
Tax Rate and Valuation-General. Property is classified for the purpose of taxation according to its use. The
legislature has in substance created three classes of taxable property: (1) residential real property, (2) open space
land, and (3) all other (commercial, industrial and personal property). Within limits, cities and towns are given the
option of determining the share of the annual levy to be borne by each of the three categories. The share required to
be borne by residential real property is at least 50 percent of its share of the total taxable valuation; the effective rate
for open space must be at least 75 percent of the effective rate for residential real property; and the share of
commercial, industrial and personal property must not exceed 175 percent of their share of the total valuation. A
24Source page 35
city or town may also exempt up to 20 percent of the valuation of residential real property (where used as the
taxpayer’s principal residence) and up to 10 percent of the valuation of commercial real property (where occupied
by certain small businesses). Property may not be classified in a city or town until the State Commissioner of
Revenue certifies that all property in the city or town has been assessed at its fair cash value. Such certification
must take place every three years or pursuant to a revised schedule as may be issued by the Commissioner.
Related statutes provide that certain forest land, agricultural or horticultural land (assessed at the value it has for
these purposes) and recreational land (assessed on the basis of its use at a maximum of 25 percent of its fair
cash value) are all to be taxed at the rate applicable to commercial property. Land classified as forest land is
valued for this purpose at five percent of fair cash value but not less than ten dollars per acre.
In order to determine appropriate relative values for the purposes of certain distributions to and assessments
upon cities and towns, the Commissioner of Revenue biennially makes his own redetermination of the fair cash
value of the taxable property in each municipality. This is known as the “equalized valuation”. See “Debt
Limits” herein.
VALUATIONS (1)
The following shows the assessed and equalized valuations for the current and most recent fiscal years:
Fiscal Year
2016 2015 2014 2013 (4) 2012
Real Property(2) $4,160,245,170 $3,917,103,100 $3,742,671,140 $3,845,104,570 $3,830,344,470
Personal Property(2) 160,467,160 152,768,400 141,947,970 126,558,890 124,249,390
Total $4,320,712,330 $4,069,871,500 $3,884,619,110 $3,971,663,460 $3,954,593,860
Equalized Value(3) $4,083,657,900 $4,083,657,900 $4,131,231,300 $4,131,231,300 $4,386,215,300
Percent of Total Assessed
to Equalized Valuation 105.8% 99.7% 94.0% 96.1% 90.2%
____________________
(1) Source: Massachusetts Department of Revenue.
(2) As of January 1, of the prior fiscal year.
(3) The equalized valuations in effect for each year.
(4) Revaluation.
The following table shows the breakdown of the total assessed valuation for fiscal years 2014 through 2016 by
classification:
Fiscal 2016 % of Total Fiscal 2015 % of Total Fiscal 2014 % of Total
Assessed Assessed Assessed Assessed Assessed Assessed
Class Valuation Valuation Valuation Valuation Valuation Valuation
Residential $3,367,549,515 77.9% $3,150,088,016 77.4% $2,971,728,949 76.5%
Commercial 443,366,255 10.3 421,047,184 10.3 427,533,191 11.0
Industrial 349,329,400 8.1 345,967,900 8.5 343,409,000 8.8
Personal 160,467,160 3.7 152,768,400 3.8 141,947,970 3.7
Total $4,320,712,330 100.0% $4,069,871,500 100.0% $3,884,619,110 100.0%
25Source page 36
TAX RATES
The following shows the actual tax rates per $l,000 of assessed valuation, the average tax rate and the estimated
full value rate based on the equalized valuation in effect for the current and most recent fiscal years:
Estimated
Fiscal Actual Average Full Value
Year Tax Rate Tax Rate Tax Rate
2016 $12.79 (Residential/Open Space) $15.78 $16.70
26.36 (All Other)
2015 12.82 (Residential/Open Space) 15.88 15.83
26.36 (All Other)
2014 12.87 (Residential/Open Space) 16.08 15.12
26.53 (All Other)
2013 12.30 (Residential/Open Space) 15.15 13.71
24.99 (All Other)
2012 11.91 (Residential/Open Space) 14.69 13.24
24.23 (All Other)
2011 11.55 (Residential/Open Space) 14.24 12.90
23.04 (All Other)
LARGEST TAXPAYERS
The following shows the ten largest taxpayers for fiscal 2016 (1):
Fiscal 2016 % of Total
Nature of Assessed Amount Tax
Name Business Valuation of Tax Levy
Eversource Utility $ 66,458,390 $1,751,843 2.57%
Reebok Offices 42,361,400 1,127,787 1.65
Atlantic Specialty Insurance Offices 38,194,900 1,016,859 1.49
Medical Information Tech, Inc. Office 34,098,200 898,431 1.32
Canton Village Shoppes Retail 28,505,600 756,913 1.11
Boston Mutual Offices 27,134,100 722,355 1.06
Hines Global 250 Royall Offices 23,012,200 608,573 0.89
Randolph Properties Housing 42,755,200 552,295 0.81
Waterfall Hills Housing 35,736,100 461,597 0.68
Spirit Canton LLC Offices 17,158,500 456,795 0.67
Total $355,414,590 $8,353,447 12.25%
_______________
(1) For fiscal 2016. All of the largest taxpayers set forth above are current on their real estate and personal property taxes.
TAX LEVIES
Levy - General. The principal tax of Massachusetts cities and towns is the tax on real and personal property.
The amount to be levied in each year is the amount appropriated or required by law to be raised for municipal
expenditures less estimated receipts from other sources and less appropriations voted from funds on hand. The
total amount levied is subject to certain limits prescribed by law; for a description of those limits see “Tax
26Source page 37
Limitations” herein. As to the inclusion of debt service and final judgments, see “Security and Remedies”
herein.
The estimated receipts for a fiscal year from sources other than the property tax may not exceed the actual
receipts during the preceding fiscal year from the same sources unless approved by the State Commissioner of
Revenue. Excepting special funds the use of which is otherwise provided for by law, the deduction for
appropriations voted from funds on hand for a fiscal year cannot exceed the “free cash” as of the beginning of
the prior fiscal year as certified by the State Director of Accounts plus up to nine months' collections and
receipts on account of earlier years' taxes after that date. Subject to certain adjustments, free cash is surplus
revenue less uncollected overdue property taxes from earlier years.
Although an allowance is made in the tax levy for abatements (see “Abatements and Overlay” herein) no
reserve is generally provided for uncollectible real property taxes. Since some of the levy is inevitably not
collected, this creates a cash deficiency which may or may not be offset by other items (see “Taxation to Meet
Deficits” herein).
Taxation to Meet Deficits. As noted elsewhere (see “Abatements and Overlay” herein) overlay deficits,
i.e. tax abatements in excess of the overlay included in the tax levy to cover abatements, are required to be
added to the next tax levy. It is generally understood that revenue deficits, i.e. those resulting from non-
property tax revenues being less than anticipated, are also required to be added to the tax levy (at least to the
extent not covered by surplus revenue).
Amounts lawfully expended since the prior tax levy and not included therein are also required to be included in
the annual tax levy. The circumstances under which this can arise are limited since municipal departments are
generally prohibited from incurring liabilities in excess of appropriations except for major disasters, mandated
items, contracts in aid of housing and renewal projects and other long-term contracts. In addition, utilities must
be paid at established rates and certain established salaries, e.g. civil service, must legally be paid for work
actually performed, whether or not covered by appropriations.
In the opinion of Bond Counsel, cities and towns are authorized to appropriate sums, and thus to levy taxes, to
cover deficits arising from other causes, such as “free cash” deficits arising from a failure to collect taxes. This
is not generally understood, however, and it has not been the practice to levy taxes to cover free cash deficits.
Except to the extent that such deficits have been reduced or eliminated by subsequent collections of uncollected
taxes (including sales of tax titles and tax possessions), lapsed appropriations, non-property tax revenues in
excess of estimates, other miscellaneous items or funding loans authorized by special act, they remain in
existence.
Tax Limitations. Chapter 59, Section 21C of the General Laws, also known as Proposition 2 1/2, imposes two
separate limits on the annual tax levy of a city or town.
The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. If a city
or town exceeds the primary limitation, it must reduce its tax levy by at least 15 percent annually until it is in
compliance, provided that the reduction can be reduced in any year to not less than 7 1/2 percent by majority
vote of the voters, or to less than 7 1/2 percent by two-thirds vote of the voters.
For cities and towns at or below the primary limit, a secondary limitation is that the tax levy cannot exceed the
maximum levy limit for the preceding fiscal year as determined by the State Commissioner of Revenue by more
than 2 1/2 percent subject to exceptions for property added to the tax rolls or property which has had an
increase, other than as part of a general revaluation in its assessed valuation over the prior year's valuation.
27Source page 38
This “growth” limit on the tax levy may be exceeded in any year by a majority vote of the voters, but an increase in
the secondary or growth limit under this procedure does not permit a tax levy in excess of the primary limitation,
since the two limitations apply independently. In addition, if the voters vote to approve taxes in excess of the
“growth” limit for the purpose of funding a stabilization fund, such increased amount may only be taken into
account for purposes of calculating the maximum levy limit in each subsequent year if the board of selectmen of a
town or the city council of a city votes by a two-thirds vote to appropriate such increased amount in such
subsequent year to the stabilization fund. The applicable tax limits may also be reduced in any year by a majority of
the voters.
The State Commissioner of Revenue may adjust any tax limit “to counterbalance the effects of extraordinary,
non-recurring events which occurred during the base year”.
The statute further provides that the voters may exclude from the taxes subject to the tax limits and from the
calculations of the maximum tax levy (a) the amount required to pay debt service on bonds and notes issued
before November 4, 1980, if the exclusion is approved by a majority vote of the voters, and (b) the amount
required to pay debt service on any specific subsequent issue for which similar approval is obtained. Even with
voter approval, the holders of the obligations for which unlimited taxes may be assessed do not have a statutory
priority or security interest in the portion of the tax levy attributable to such obligations. As noted above, debt
service on $8,731,500 of currently outstanding bonds is excluded from the limitations of Proposition 2 1/2,
subject to the provisions of Chapter 44, Section 20 of the General Laws. It should be noted that
Massachusetts General Laws Chapter 44, Section 20 requires that the taxes excluded from the levy limit to pay
debt service on any such bonds and notes be calculated based on the true interest cost of the issue. Accordingly,
the Department of Revenue limits the amount of taxes which may be levied in each year to pay debt service on
any such bonds and notes to the amount of such debt service, less a pro rata portion of any original issue
premium received by the city or town that was not applied to pay costs of issuance.
Voters may also exclude from the Proposition 2 1/2 limits the amount required to pay specified capital outlay
expenditures or for the city or town’s apportioned share for certain capital outlay expenditures by a regional
governmental unit. In addition, the city council of a city, with the approval of the Mayor if required, or the
board of selectmen or the town council of a town may vote to exclude from the Proposition 2 1/2 limits taxes
raised in lieu of sewer or water charges to pay debt service on bonds or notes issued by the municipality (or by
an independent authority, commission or district) for water or sewer purposes, provided that the municipality's
sewer or water charges are reduced accordingly.
In addition, Proposition 2 1/2 limits the annual increase in the total assessments on cities and towns by any
county, district, authority, the Commonwealth or any other governmental entity (except regional school
districts, the MWRA and certain districts for which special legislation provides otherwise) to the sum of (a) 2
1/2 percent of the prior year's assessments and (b) “any increases in costs, charges or fees for services
customarily provided locally or for services subscribed to at local option”. Regional water districts, regional
sewerage districts and regional veteran's district may exceed these limitations under statutory procedures
requiring a two-thirds vote of the district's governing body and either approval of the local appropriating
authorities (by two-thirds vote in districts with more than two members or by majority vote in two-member
districts) or approval of the registered voters in a local election (in the case of two-member districts). Under
Proposition 2 1/2 any State law to take effect on or after January 1, 1981 imposing a direct service or cost
obligation on a city or town will become effective only if accepted or voluntarily funded by the city or town or
if State funding is provided. Similarly, State rules or regulations imposing additional costs on a city or town or
laws granting or increasing local tax exemptions are to take effect only if adequate State appropriations are
provided. These statutory provisions do not apply to costs resulting from judicial decisions.
28Source page 39
Pledged Taxes. Taxes on certain property in designated development districts may be pledged for the payment of
costs of economic development projects within such districts and may therefore be unavailable for other municipal
purposes. The Town does not have any such districts.
Initiative Petitions. Various other proposals have been made in recent years for legislative amendments to the
Massachusetts Constitution to impose limits on state and local taxes. To be adopted such amendments must be
approved by two successive legislatures and then by the voters at a state election.
CALCULATION OF TAX LEVIES AND LEVY LIMITS
The following table shows the details of the calculation of the tax levies for the current and most recent fiscal
years:
(000 omitted)
For Fiscal Year
2016 2015 2014 2013 2012
Gross Amount to be Raised:
Appropriations $ 97,191 $93,964 $89,373 $86,098 $83,018
Other Local Expenditures 27 41 41 249 67
State & County Charges 955 951 946 909 853
Overlay Reserve 2,001 1,499 1,767 1,321 1,019
Total Gross Amount to be Raised 100,174 96,456 92,127 88,577 84,957
Less Estimated Receipts & Other Revenue:
Estimated Receipts from State 7,919 7,686 7,545 7,319 6,457
Estimated Receipts - Local 20,118 19,451 18,954 18,224 17,725
Available Funds Appropriated:
Free Cash 2,190 2,852 1,915 600 290
Other Available Funds 1,751 1,836 1,248 2,279 2,411
Free Cash & Other Revenue Used to
Reduce the Tax Rate 0 0 0 0 0
Total Estimated Receipts & Revenue 31,977 31,826 29,662 28,422 26,883
Net Amount To Be Raised (Tax Levy) $68,196 $64,630 $62,465 $60,155 $58,074
The following shows the calculation of levy limits for the current and most recent fiscal years:
(000 omitted)
For Fiscal Year
2016 2015 2014 2013 2012
Primary Levy Limit (1) $108,018 $101,747 $97,115 $99,292 $98,865
Prior Fiscal Year Levy Limit 64,150 61,056 58,592 56,500 54,456*
2.5% Levy Growth 1,604 1,527 1,465 1,412 1,361
New Growth (2) 1,313 1,568 999 680 682
Overrides 0 0 0 0 0
Growth Levy Limit 67,067 64,151 61,056 58,592 56,499
Debt Exclusions 1,706 1,643 2,020 2,111 2,142
Capital Expenditure Overrides 0 0 0 0 0
Tax Levy Limit 68,774 65,794 63,076 60,703 58,641
Tax Levy 68,196 64,630 62,465 60,155 58,074
Unused Levy Capacity (3) 577 1,164 $ 611 $ 548 $ 567
Unused Primary Levy Capacity (4) $ 40,951 $ 37,596 $36,059 $40,700 $42,366
__________________
29Source page 40
(1) 2.5% of assessed valuation.
(2) Allowed addition for new valuations certified by the Department of Revenue.
(3) Tax Levy Limit less Tax Levy. The additional amount which may be levied without voter approval.
(4) Primary Levy Limit less Growth Levy Limit.
* Recalculated due to certification of retroactive growth.
TAX COLLECTIONS AND ABATEMENTS
Payment Dates. The taxes for each fiscal year generally are due in two installments on November 1 (subject to
deferral if tax bills are sent out late) and May 1, unless a city or town accepts a statute providing for quarterly
tax payments. The Town has accepted this provision. Under the statute, preliminary tax payments are to be due
on August 1 and November 1 with payment of the actual tax bill (after credit is given for the preliminary
payments) in installments on February 1 and May 1 if actual tax bills are mailed by December 31. Interest
accrues on delinquent taxes at the rate of 14 percent per annum.
Lien. Real property (land and buildings) is subject to a lien for the taxes assessed upon it, subject to any
paramount federal lien and subject to bankruptcy and insolvency laws. (In addition, real property is subject to a
lien for certain unpaid municipal charges or fees.) If the property has been transferred, an unenforced lien
expires on the fourth December 31 after the end of the fiscal year to which the tax relates. If the property has
not been transferred by the fourth December 31, an unenforced lien expires upon a later transfer of the property.
Provision is made, however, for continuation of the lien where it could not be enforced because of a legal
impediment.
Personal Liability. The persons against whom real or personal property taxes are assessed are personally liable
for the tax (subject to bankruptcy and insolvency laws). In the case of real property, this personal liability is
effectively extinguished by sale or taking of the property as described in “Taking and Sale” herein.
The following shows the total tax levy, the reserve for abatements, the net levy and the amounts collected
during each fiscal year and as of a more recent date for the current and most recent fiscal years:
For Fiscal Year
2016 2015 2014 2013 2012
Total Tax Levy $68,196,330 $64,629,621 $62,465,128 $60,155,267 $58,074,485
Overlay Reserve for Abatements 2,001,198 1,498,711 1,767,642 1,320,810 1,019,524
Net Tax Levy (1) $66,195,132 $63,130,910 $60,697,486 $58,834,457 $57,054,961
Amount Collected During
Fiscal Year Payable (2) N/A $63,380,847 $61,056,268 $58,747,14 $56,783,097
2
Percent of Net Tax Levy N/A 100.4% 100.6% 99.9% 99.5%
Amount Collected Through
01/01/16 (2) $36,680,917 $63,818,598 $61,644,174 $59,494,69 $57,412,878
5
Percent of Net Tax Levy 55.4% 101.1% 101.6% 101.1% 100.6%
_________________
(1) Net after deduction of overlay reserve for abatements.
(2) Actual collections of levy less refunds and amounts refundable, but including proceeds of tax titles and tax possessions attributed
to such levy but not including abatements or other credits. Collections for fiscal 2016 are for the first half of the fiscal year.
Abatements and Overlay. A city or town is authorized to increase each tax levy by an amount approved by
the State Commissioner of Revenue as an “overlay” to provide for tax abatements. If abatements are granted in
excess of the applicable overlay, the excess is required to be added to the next tax levy.
30