Canton, Massachusetts · Saved source text
Latest Bond Issuance Report March 2016
Saved text from 202 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 41
Abatements are granted where exempt real or personal property has been assessed or where taxable real or
personal property has been overvalued or disproportionately valued. The assessors may also abate uncollectible
personal property taxes. They may abate real and personal property taxes on broad grounds (including inability
to pay) with the approval of the State Commissioner of Revenue. But uncollected real property taxes are
ordinarily not written off until they become municipal “tax titles” by purchase at the public sale or by taking, at
which time the tax is written off in full by reserving the amount of the tax and charging surplus.
The following shows the abatements granted during each fiscal year as well as through a more recent date for
the current and most recent fiscal years:
For Fiscal Year
2016 2015 2014 2013 2012
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
Percent of Tax Levy 2.9% 2.3% 2.8% 2.2% 1.8%
Abatements Granted
During Fiscal Year of Levy N/A $643,897 $743,501 $591,984 $443,866
Through 01/01/16 $237,289 $695,519 $830,045 $699,465 $508,363
Taking and Sale. Massachusetts law permits a municipality either to sell by public sale (at which the
municipality may become the purchaser) or to take real property for nonpayment of taxes. In either case the
property owner can redeem the property by paying the unpaid taxes, with interest and other charges, but if the
right of redemption is not exercised within six months (which may be extended an additional year in the case of
certain installment payments), it can be foreclosed by petition to the Land Court. Upon foreclosure, a tax title
purchased or taken by the municipality becomes a “tax possession” and may be held and disposed of in the
same manner as other land held for municipal purposes.
Sale of Tax Receivables. Cities and towns are authorized to sell delinquent property tax receivables by public
sale or auction, either individually or in bulk.
TOWN FINANCES
Budget and Appropriation Process
The annual appropriations of the Town are ordinarily made at the annual meeting which takes place in May.
Appropriations may also be voted at special meetings. The Finance Committee (or the Board of Selectmen if
authorized by by-law or if there is no committee) is required to submit a budget of proposed expenditures at the
annual Town meeting.
Under certain circumstances and subject to certain limits and requirements, the city council of a city, upon the
recommendation of the mayor, may transfer amounts appropriated for the use of one department (except for a
municipal light department or a school department) to another appropriation for the same department or for the use
of any other department. In a town, town meeting may at any time vote to transfer any amount previously
appropriated to any other authorized use by law, and, under certain circumstances and subject to certain limits and
requirements, the selectmen of a town, with the concurrence of the finance committee, may transfer amounts
appropriated for the use of any department to any other appropriation for the same department or to any other
department.
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Water and sewer department expenditures are generally included in the budgets adopted by city councils and
town meetings but electric and gas department funds may be appropriated by the municipal light boards. Under
certain legislation any city or town which accepts the legislation may provide that the appropriation for the
operating costs of any department may be offset, in whole or in part, by estimated receipts from fees charged for
services provided by the department. It is assumed that this general provision does not alter the pre-existing
power of an electric or gas department to appropriate its own receipts.
The school budget is limited to the total amount appropriated by the town meeting, but the school committee
retains full power to allocate the funds appropriated. State legislation known as the Education Reform Act of
1993, as amended, imposes certain minimum expenditure requirements on municipalities with respect to
funding for education. The requirements are determined on the basis of formulas affected by various measures
of wealth and income, enrollments, prior levels of local spending and state aid, and other factors. The Town’s
net school spending has always exceeded the minimum required local contribution.
State and county assessments, abatements in excess of overlays, principal and interest not otherwise provided
for, and final judgments are included in the tax levy whether or not included in the budget. Revenues are not
required to be set forth in the budget, but estimated non-tax revenues are taken into account by the assessors in
fixing the tax levy.
Budget Comparison
The following table sets forth the actual budgets for fiscal years 2012-2016:
Category 2016 2015 2014 2013 2012
Property Taxes $66,219,139 $63,173,500 $60,602,472 $59,323,367 $57,309,364
State Aid 7,865,547 7,599,730 8,151,749 7,106,407 6,800,664
Local Receipts 5,907,405 5,834,907 5,574,543 5,234,686 4,940,391
Interfund Transfers 3,088,119 3,071,348 2,258,580 2,239,456 2,922,592
Total Available Revenue $83,080,210 $79,679,485 $76,587,344 $73,903,916 $71,973,011
Appropriations
General Government Services $ 3,440,69 $ 3,342,838 $ 3,156,306 $ 3,059,405 $ 2,952,526
Public Safety Services 9,798,064 9,583,290 9,400,426 8,843,050 8,735,299
Educational Services 36,259,994 34,548,305 33,320,505 31,920,505 30,440,978
Public Works Service 2,227,728 2,109,896 2,064,147 1,967,716 1,973,648
Public Works Fixed Services 2,416,500 2,106,500 1,963,727 1,913,727 1,880,335
Human Services 938,166 867,151 774,792 741,136 686,506
Cultural/Recreational Services 1,771,942 1,698,049 1,605,553 1,460,891 1,414,089
Debt Service 4,991,133 4,880,575 5,947,464 6,119,892 6,008,252
Regional Schools 1,130,445 1,108,642 1,069,042 1,183,074 1,337,865
State & County Charges 951,976 948,532 947,279 894,551 967,186
Employee Benefits 15,542,282 15,249,366 14,094,153 14,193,019 13,838,377
Miscellaneous 1,735,341 1,486,341 1,277,950 877,950 787,950
Subtotal 81,204,210 77,929,485 75,621,344 73,174,916 71,023,011
Capital/Articles 1,876,000 1,750,000 966,000 729,000 950,000
Total Appropriations $83,080,210 $79,679,485 $76,587,344 $73,903,916 $71,973,011
32Source page 43
STATE AID
In addition to grants for specified capital purposes (some of which are payable over the life of the bonds issued
for the projects) the Commonwealth provides financial assistance to cities and towns for current purposes.
Payments to cities and towns are derived primarily from a percentage of the State's personal income, sales and
use and corporate excise tax receipts, together with the net receipts from the State Lottery. A municipality’s
state aid entitlement is based on a number of different formulas, of which the “schools” and “lottery” formulas
are the most important. Both of the major formulas tend to provide more state aid to poorer communities. The
formulas for determining a municipality’s state aid entitlement are subject to amendment by the state legislature
and, while a formula might indicate that a particular amount of state aid is owed, the amount of state aid actually
paid is limited to the amount appropriated by the state legislature. The State annually estimates state aid, but the
actual state aid payments may vary from the estimate.
In the fall of 1986, both the State Legislature (by statute, repealed as of July 1, 1999) and the voters (by
initiative petition) placed limits on the growth of state tax revenues. Although somewhat different in detail,
each measure essentially limits the annual growth in state tax revenues to an average rate of growth in wages
and salaries in the Commonwealth over the three previous calendar years. If not amended, the remaining law
could restrict the amount of state revenues available for state aid to local communities.
The following table sets forth the amount of state aid to the Town in recent years as well as the amount
budgeted for 2016:
Fiscal Total
Year State Aid (1)
2016 (budgeted) $18,000,000
2015 17,771,093
2014 20,403,915
2013 17,977,813
2012 20,571,147
____________________
(1) Includes all funds, not just General Funds.
State School Building Assistance Program
Under its school building assistance program, the Commonwealth of Massachusetts provides grants to cities,
towns and regional school districts for school construction projects. Until July 26, 2004, the State Board of
Education was responsible for approving grants for school projects and otherwise administering the program.
Grant amounts ranged from 50% to 90% of approved project costs. Municipalities generally issued bonds to
finance the entire project cost, and the Commonwealth disbursed the grants in equal annual installments over
the term of the related bonds.
Pursuant to legislation which became effective on July 26, 2004, the state legislature created the Massachusetts
School Building Authority (the “Authority”) to finance and administer the school building assistance program.
The Authority has assumed all powers and obligations of the Board of Education with respect to the program.
In addition to certain other amounts, the legislation dedicates a portion of Commonwealth sales tax receipts to
the Authority to finance the program.
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Projects previously approved for grants by the State Board of Education are entitled to receive grant payments
from the Authority based on the approved project cost and reimbursement rate applicable under the prior law.
The Authority has paid and is expected to continue to pay the remaining amounts of the grants for such projects
either in annual installments to reimburse debt service on bonds issued by the municipalities to finance such
projects, or as lump sum payments to contribute to the defeasance of such bonds.
Projects on the priority waiting list as of July 1, 2004 are also entitled to receive grant payments from the
Authority based on the eligible project costs and reimbursement rates applicable under the prior law. With
limited exceptions, the Authority is required to fund the grants for such projects in the order in which they
appear on the waiting list. Grants for any such projects that have been completed or substantially completed
have been paid and are expected to continue to be paid by the Authority in lump sum payments, thereby
eliminating the need for the Authority to reimburse interest expenses that would otherwise be incurred by the
municipalities to permanently finance the Authority’s share of such project costs. Interest on debt issued by
municipalities prior to July 1, 2004 to finance such project costs, and interest on temporary debt until receipt of
the grant, is included in the approved costs of such projects. Grants for any such projects that have not yet
commenced or that are underway have been and are expected to continue to be paid by the Authority as project
costs are incurred by the municipality pursuant to a project funding agreement between the Authority and the
municipality, eliminating the need for the municipality to borrow even on a temporary basis to finance the
Authority’s share of the project costs in most cases.
The range of reimbursement rates for new project grant applications submitted to the Authority on or after July
1, 2007 has been reduced to between 40% and 80% of approved project costs. The Authority promulgated new
regulations with respect to the application and approval process for projects submitted after July 1, 2007. The
Authority expects to pay grants for such projects as project costs are incurred pursuant to project funding
agreements between the Authority and the municipalities. None of the interest expense incurred on debt issued
by municipalities to finance their portion of the costs of new projects will be included in the approved project
costs eligible for reimbursement.
MOTOR VEHICLE EXCISE
An excise is imposed on the registration of motor vehicles (subject to exemptions) at a uniform rate of $25 per
$1,000 of valuation. The excise is collected by and for the benefit of the municipality in which the motor
vehicle is kept. Valuations are determined by a statutory formula based on manufacturer's list price and year of
manufacture. Bills are payable in 30 days of their issue, and when not paid when due bear interest at 12 per
cent per annum. Provision is also made for suspension of registration by the registrar of motor vehicles, who
may also, after a hearing, suspend the owner's operating license.
The following table sets forth the amount of motor vehicle excise taxes received in each of the most recent
fiscal years and budgeted amount for fiscal 2016:
Fiscal Motor
Year Excise Taxes
2016 (budgeted) $3,250,000
2015 4,119,643
2014 3,714,753
2013 3,473,978
2012 3,165,287
34Source page 45
COMMUNITY PRESERVATION ACT
The Massachusetts Community Preservation Act (the “CPA”) permits cities and towns that accept its provisions
to levy a surcharge on its real property tax levy, dedicate revenue (other than state or federal funds), and to
receive state matching funds for (i) the acquisition, creation, preservation, rehabilitation and restoration of land
for recreational use, open space, and affordable housing and (ii) the acquisition, preservation, rehabilitation and
restoration of historic resources. The provisions of the CPA must be accepted by the voters of the city or town
at an election after such provisions have first been accepted by either a vote of the legislative body of the city or
town or an initiative petition signed by 5% of its registered voters.
A city or town may approve a surcharge of up to 3% (but not less than 1% under certain circumstances) and
may make an additional commitment of funds by dedicating revenue other than state or federal funds, provided
that the total funds collected do not exceed 3% of the real property tax levy, less any exemptions adopted (such
as an exemption for low-income individuals and families and for low and moderate-income senior citizens, an
exemption for $100,000 of the value of each taxable parcel of residential real property or $100,000 of the value
of each taxable parcel of class three, commercial property, and class four, industrial property as defined in
Chapter 59, Section 2A of the General Laws, and an exemption for commercial and industrial properties in
cities and towns with classified tax rates). In the event that the municipality shall no longer dedicate all or part
of the additional funds to community preservation, the surcharge on the real property tax levy of not less than
1% shall remain in effect, provided that any such change must be approved pursuant to the same process as
acceptance of the CPA. The surcharge is not counted in the total taxes assessed for the purpose of determining
the permitted levy amount under Proposition 2½ (see “Tax Limitations” under “TAX LEVIES” above). A city
or town may revoke its acceptance of the provisions of the CPA at any time after 5 years from the date of such
acceptance and may change the amount of the surcharge or the exemptions to the surcharge at any time,
including reducing the surcharge to 1% and committing additional municipal funds as outlined above, provided
that any such revocation or change must be approved pursuant to the same process as acceptance of the CPA.
Any city or town that accepts the provisions of the CPA will receive annual state matching grants to supplement
amounts raised by its surcharge and dedication of revenue. The state matching funds are raised from certain
recording and filing fees of the registers of deeds. Those amounts are deposited into a state trust fund and are
distributed to cities and towns that have accepted the provisions of the CPA, which distributions are not subject
to annual appropriation by the state legislature. The amount distributed to each city and town is based on a
statutory formula and the total state distribution made to any city or town may not exceed 100% of the amount
raised locally by the surcharge on the real property tax levy.
The amounts raised by the surcharge on taxes, the dedication of revenue and received in state matching funds
are required to be deposited in a dedicated community preservation fund. Each city or town that accepts the
provisions of the CPA is required to establish a community preservation committee to study the community
preservation needs of the community and to make recommendations to the legislative body of the city or town
regarding the community preservation projects that should be funded from the community preservation fund.
Upon the recommendations of the committee, the legislative body of the city or town may appropriate amounts
from the fund for permitted community preservation purposes or may reserve amounts for spending in future
fiscal years, provided that at least 10% of the total annual revenues to the fund must be spent or set aside for
open space purposes, 10% for historic resource purposes and 10% for affordable housing purposes.
The CPA authorizes cities and towns that accept its provisions to issue bonds and notes in anticipation of the
receipt of surcharge and dedicated revenues to finance community preservation projects approved under the
provisions of the CPA. Bonds and notes issued under the CPA are general obligations of the city or town and
are payable from amounts on deposit in the community preservation fund. In the event that a city or town
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revokes its acceptance of the provisions of the CPA, the surcharge shall remain in effect until all contractual
obligations incurred by the city or town prior to such revocation, including the payment of bonds or notes issued
under the CPA, have been fully discharged. In November, 2012, the Town voted to accept the provisions of the
Community Preservation Act and has begun collecting these funds effective July 1, 2013. The balance in the
account as of June 30, 2015 was $1,065,278.
INVESTMENTS
Investments of funds of cities and towns, except for trust funds, are generally restricted by Massachusetts
General Laws, Chapter 44, section 55. That statute permits investments of available revenue funds and bond
and note proceeds in term deposits and certificates of deposits of banks and trust companies, in obligations
issued or unconditionally guaranteed by the federal government or an agency thereof with a maturity of not
more than one year, in repurchase agreements, with a maturity of not more than 90 days secured by federal or
federal agency securities, in participation units in the Massachusetts Municipal Depository Trust (“MMDT”), or
in shares of SEC-registered money market funds with the highest possible rating from at least one nationally
recognized rating organization.
MMDT is an investment pool created by the Commonwealth. The State Treasurer is the sole trustee and the
funds are managed under contract by an investment firm under the supervision of the State Treasurer’s Office.
According to the State Treasurer the Trust’s investment policy is designed to maintain an average weighted
maturity of 90 days or less and is limited to high-quality, readily marketable fixed income instruments,
including U.S. Government obligations and highly-rated corporate securities with maturities of one year or less.
Trust funds, unless otherwise provided by the donor, may be invested in accordance with section 54 of Chapter
44, which permits a broader range of investments than section 55, including any bonds or notes that are legal
instruments for savings banks in the Commonwealth. The restrictions imposed by sections 54 and 55 do not
apply to city and town retirement systems.
UNASSIGNED GENERAL FUND BALANCE AND FREE CASH
Under Massachusetts law an amount known as “free cash” is certified as of the beginning of each fiscal year by
the State Bureau of Accounts and this, together with certain subsequent tax receipts, is used as the basis for
subsequent appropriations from available funds, which are not required to be included in the annual tax levy.
Subject to certain adjustments, free cash is surplus revenue less uncollected and overdue property taxes from
prior years. The Town Accountant may certify as available for appropriation an adjusted free cash figure by
adding back those uncollected and overdue property taxes which are subsequently collected between July 1 and
the following March 31 of any year.
The following shows the unassigned general fund balance and free cash for the most recent fiscal years:
Unassigned
July 1, Fund Balance Free Cash
2015 $11,430,875 $3,801,359
2014 9,815,657 3,271,361
2013 8,276,920 2,924,558
2012 7,118,096 3,234,349
2011 5,825,529 2,180,097
36Source page 47
Free cash amounts certified for the enterprise funds of the Town as of July 1, 2015 are as follows:
Water $2,519,044
Sewer 1,519,856
Skating Rink 32,246
STABILIZATION FUND
The Town has maintained a Stabilization Fund for several years. Under Massachusetts statutes, funds may be
appropriated from the Fund for any municipal purpose by a two thirds vote of the Town Meeting. The
following is the balance in the account at the end of the most recent fiscal years:
Fiscal Year Balance (1)
2015 $5,754,735
2014 5,074,180
2013 4,610,294
2012 4,210,832
2011 3,463,814
____________________
(1) Included in the Stabilization Fund Balance are funds set aside for school special education. The Stabilization Fund is included in
the “Unassigned” General Fund Balance.
OTHER TAXES
Three additional sources of revenue for local governments are the room occupancy excise tax, local meals
excise tax and the aviation fuel tax. All of these taxes take effect only where accepted by individual
municipalities. Under the room occupancy excise tax, local governments may tax the provision of hotel, motel,
lodging house and bed and breakfast rooms at a rate not to exceed six percent of the cost of renting such rooms.
The tax is paid by the operator of the hotel, motel, lodging house or bed and breakfast rooms to the State
Commissioner of Revenue, who in turn pays the tax back to the municipality in which the rooms are located.
The Town has voted to impose the room occupancy excise tax. The Town’s first hotel opened in December,
2011 so no room occupancy excise tax was budgeted for fiscal 2012. The amount of room occupancy excise
tax collected in fiscal 2013 was $224,236, fiscal 2014 was $246,061, fiscal 2015 was $249,855 and the amount
budgeted for fiscal 2016 is $250,000.
The local meals excise tax, effective for sales of restaurant meals on or after October 1, 2009, is a three-fourths
percent tax on the gross receipts of a vendor from the sale of restaurant meals. The tax is paid by the vendor to
the State Commissioner of Revenue, who in turn pays the tax to the municipality in which the meal was sold.
The Town voted to accept the local meals excise tax effective July 1, 2012. The amount of meals excise tax
collected in fiscal 2013 was $236,669, in fiscal 2014 was $322,256, in fiscal 2015 was $331,766 and the
amount budgeted for fiscal 2016 is $400,000.
The aviation fuel tax is a five percent tax (with a minimum of five cents per gallon) on the sale or use of jet fuel
to or by jet aircraft. The tax is paid by the seller/user of the fuel to the Commissioner of Revenue, who in turn
rebates the tax to the municipality in which the fuel being taxed was transferred into an aircraft. The Town did
not vote to accept the aviation fuel tax.
37Source page 48
COLLECTIVE BARGAINING
City and town employees (other than managerial or confidential employees) are entitled to join unions and to
bargain collectively on questions of wages, hours and other terms and conditions of employment. The Town
has approximately 695 full and part-time employees, of which approximately 86 percent belong to unions or
other collective bargaining groups as follows:
Number of Contract
Union Department People Expires (1)
AFSCME, AFL-CIO State DPW, Library, 72 6/30/15
Council 93, Local 362 Planning Board, Secretaries
and Custodians
Administrative Employees Assoc. Various 5 6/30/18
IAFF, AFL-CIO, Local 1580 Fire 51 6/30/18
Canton Police Association, IBPO Police 37 6/30/18
Canton Police Superior Officers Association Police 3 6/30/18
Canton Teachers Association School 287 8/31/18
Canton School Maintenance &
Custodians Association School 24 6/30/18
Canton School Secretaries Association School 18 6/30/18
Cafeteria Personnel School 22 6/30/18
Educational Support Personnel Association School 82 8/31/18
601
________________
(1) Expired contract is in negotiations.
PHYSICAL AND ECONOMIC CHARACTERISTICS
The Town occupies a land area of approximately 19.38 square miles and is a residential community with
significant commercial and industrial activity. Located in Norfolk County, approximately 18 miles south of
downtown Boston, it is bordered on the east by the Town of Randolph, on the north by the Towns of Milton and
Dedham, on the west by the Towns of Westwood and Norwood and on the south by the Towns of Sharon and
Stoughton.
Economic Development
The Town’s location has contributed to its vibrant residential and commercial sectors. Canton is 18 miles from
downtown Boston and enjoys excellent access to commuter rail service from the Canton MBTA station. In
addition, the Town’s location along Interstate 95/State Highway Route 128, the Massachusetts “Technology
Highway,” provides excellent highway access to many of the Commonwealth’s high technology firms.
Assessed values of single family homes in the Town are currently averaging $490,000.
The Town takes a pro-active approach to encouraging well-planned economic development. The Town
appreciates the significance of commercial and industrial growth and development (and redevelopment)
especially in terms of long-term fiscal stability. The Town continues its focus on future growth, which is
sustainable and complimentary to economic development including employment opportunities for its residents.
Municipal officials work closely with and receive valuable support from the State Office of Business
Development as well as regional planning support from the Metropolitan Area Planning Council (MAPC). In
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addition, business advocacy organizations, such as Canton Association of Business and Industry (CABI), play a
vital role.
The Town strives to take full advantage of the latest initiatives and incentives made available to it notably under
Chapter 43D for expedited permit approvals and Tax Incremental Financing (TIF). The Town’s continued
accomplishments in promoting 43D sites in Town are discussed in greater detail below.
The Town’s Economic Development Committee (EDC) is also a special resource. The Town regularly takes
advantage of local talent from the community who specialize in finance, banking, development and real estate.
The Town continues to update and publish an economic development recruitment guide which includes
pertinent information sought by private company CEOs when making siting and expansion decisions. The
Board of Selectmen recently published a new business and community guide and has made that information
available online as well.
The Town has surpassed its required 10% affordable housing goal as required by State regulation. The Town
has incorporated a continued affordable housing unit goal, within the Housing Action Plan, to ensure the Town
keeps pace with any new market rate unit starts. The recent construction by Avalon Development of additional
affordable housing on Randolph Street further increased the Town’s 40B compliance.
The Town continues to invest in infrastructure improvements such as roads, sewers, and water supply facilities,
as well as various municipal and school facility upgrades. These include: Town Hall, Library, Public Safety
Facilities, Public Works and School building improvement projects. Well underway is a renovation of a
recently purchased facility to become a new Senior Center located at 500 Pleasant Street to address the growing
aging population in need of expanded and updated senior services.
In addition, the Town has completed the construction of three important water/sewer projects - the Greenlodge
Street Interceptor Rehabilitation Project and two (2) new water filtration plants. These water filtration plants
will provide state-of-the-art water filtration capabilities and allow for the use of local source water to reduce
operating costs, improve water availability (including redundancy) and filtrate water for customers with the
most technologically advanced system available today. The sewer project has reduced MWRA treatment costs
and limited sewer overflows in environmentally sensitive areas.
All these projects are necessary to support new economic development and community growth as well as
minimize operational costs resulting from deferred maintenance and inefficient building “infrastructure”
including HVAC systems. These projects also improve safety conditions for the users of municipal and school
facilities.
The Town’s commitment to sound economic development is further demonstrated by its partnerships with
MAPC and Neponset Valley Chamber of Commerce to coordination with respect to resource allocation and key
planning issues facing the Town. The Town reactivated the Economic Development Committee and created,
with Town Meeting, the Permit Advisory Committee both of which provide technical assistance to businesses
new to Canton.
The Town has instituted a Google-based web search device, which identifies Canton as a business friendly
community. The web product highlights, via a series of videos, the Town of Canton as a solid and desirable
business and family destination. The Town’s continued status as a 43D Expedited Permitting Community has
benefitted the Town greatly and has led to the actual designation of many new priority development sites. This
43D designation, which was granted to the Town in 2008, came with a $150,000 grant to hire a permit specialist
39Source page 50
who has completed the administrative and organizational work necessary to implement the issuance of permits
via an integrated and automated town wide permit system which better serves the public and the Town in terms
of real time tracking of permits.
The Town has available a permit guidebook, which lays out the Town’s permitting requirements in an easy to
use format. The goal is to identify key requirements and improve communications, saving applicants time and
money. The Permit Advisory Committee has been a successful endeavor by bringing together key permit
granting agency representatives to counsel and guide any proponent of a proposed commercial endeavor.
Participation and results continue to be overwhelmingly positive.
The Town has also published a Tax Incremental Financing Evaluation Policy document designed to provide a
rational and consistent intake evaluation of TIF requests. The new approach allows the Town to quantify and
better evaluate any request to reduce taxes for a business seeking to locate or expand. Also, the Town launched
a Payment in Lieu of Taxes Program (PILOT) that encourages non-taxable property owners to voluntarily
participate in the support of public services.
The Town has completed construction of the downtown revitalization project commonly referred to as the
Streetscape Improvement Project. This work was funded as a result of a $2.6 million dollar Commonwealth
grant received due to the Town’s “Smart Growth” efforts and rezoning of the Downtown. The Town has also
completed safety and efficiency improvement work on two key intersections ($2.2 million dollar
Commonwealth grant) located in the heart of the Route 138 business district. These intersections are located at
the Randolph and Washington Street Intersections with Route 138. These projects have improved both the
safety and efficiency of this commercial roadway. The Board of Selectmen has also empaneled a multi-
disciplined group of volunteers who have completed a visioning process which has led to a variety of re-zoning
recommendations with a goal of improving the business climate and enhancing zoning flexibility to spur
additional economic development potential along this vital commercial roadway.
In cooperation with NSTAR, a new 345 kV transmission line was installed under Route 138 to ensure an
updated, reliable source of power is available to the Town and the region. The Route 138 Corridor Roadway
Improvement project has completed all segments from Route 128 to Randolph Street. The Town has completed
the under-grounding of all utilities in the Downtown, including fire alarm.
The Town was also a participant in a regional planning study to evaluate the effects of new growth in both
residential and commercial construction. The study’s focus was to identify growth related problems such as
transportation, infrastructure, environmental, and economic development issues. In addition, a build-out
analysis was completed to assist and improve public policy decision-making with regard to growth and
development related to educational planning. These studies have been coordinated with other immediate area
communities.
The Town is in the process of evaluating the opportunities and/or impacts of the South Coast Rail Project which
is advancing through preliminary and environmental design. This Commonwealth initiative would provide rail
service from Boston to Fall River/New Bedford via a route now determined by the Commonwealth, known as
the Stoughton Alternative, which will impact Canton.
In 2010, the Town received a MORE grant in the amount of $850,000 and completed infrastructure
improvements along Dan Road, an important commercial area of the Town. After much effort, the Town
secured the commitment of Organogenesis, a bio tech firm, now located on Dan Road, which was
contemplating relocation. Their commitment to stay in Canton and expand was an important part of the Town’s
40Source page 51
success in obtaining this new funding. They are currently expanding their facilities into an additional Dan Road
location.
Canton’s Master Plan Initiative required a careful review and analysis of existing conditions balanced with a
vision for the future. The work program is designed to enlist public interest and participation in shaping the
Town’s future. Workshops, neighborhood meetings, leadership interviews and community surveys were
conducted. The Town has conducted an extensive public outreach campaign to better assure good attendance at
workshops and neighborhood focus groups. Existing planning, engineering reports and documents have been
reviewed and a written report, which summarizes their major issues and relevant recommendations, was
prepared and remains available in the Town. The overall objective of the Master Plan initiative was to develop a
sustainable residential and business development strategy for the Town.
Another objective of the Master Plan Initiative was to address the often-conflicting goals of economic
development and resource protection. Sustainable development providing for economic growth that is
compatible with resource protection remains an important Town focus. The Town’s approach includes
promoting economic development that is supported by adequate infrastructure. Thus, the dual objectives of the
Master Plan Initiative remain to provide for economic growth which is (1) compatible with resource protection
and (2) supported by adequate infrastructure. To ensure this, the Town embarked on a four-town regional
planning initiative, which is still ongoing. The Towns of Canton, Dedham, Norwood and Westwood share a
common watershed and an interlinked highway system. The Towns continue to work together and meet
regularly to discuss economic development on a regional basis. This regional planning initiative encourages and
reminds area towns that, despite borders, what happens in another neighboring community may have an impact,
both positive and potentially negative, on one another. The Towns plan and communicate to shape growth,
protect water resources, transportation infrastructure and to ensure support and advocacy for growth in the
Region to the community’s benefit. This group continues to pursue state and federal funding for the
replacement of the I95/I93 Interchange, a source of safety concerns and traffic.
The Town’s pro-growth attitude ensures Canton will remain an attractive location for commercial and industrial
development in the future. The success of the Town’s business development efforts is repeatedly confirmed by
such commitments as Reebok International locating its worldwide corporate headquarters in the Town.
Residential developments such as Windsor Woods, Indian Woods, Pequit View and Blue Hill Commons are
complemented by commercial developments such as Dunkin Brands with their worldwide corporate
headquarters along with other top Canton companies such as Meditech, Network Engines, One Beacon, Boston
Mutual, Computershare, LoJack and Pepsi.
The Town’s planning focus includes improvements to the highway system that serves the Town and the region.
The Route 128 Add-a-Lane Project was federally funded and completed in 2013. Also, recently approved by the
Massachusetts Highway Division was the advancement of the planning of the I95/I93 interchange project along
with corridor studies of both Routes 1 and Interstate 95. The ultimate improvements to these roadways will
facilitate and provide transportation capacity for further economic development in the region with improved
safety and efficiency for commuters, suppliers, employees, visitors and customers.
The Town recently entered into a long-term lease of its capped landfill to be used by a private entity to install
solar panels on fifteen acres of the site at no cost to Canton. The lease provides the Town with guaranteed
payments of $20,000 per acre, per year, while allowing the Town the ability to purchase all the electricity
generated by this 5.6 megawatt facility at a substantial savings. The Pine Street Solar Facility went online
August 15, 2012 (one of the largest in the Northeast) and has provided to date over $544,000 in net metering
credits savings to the Town, as well as annual lease payments totaling $300,000 in new recurring operating
revenue increasing annually by 2.5%.
41Source page 52
Some of the developments recently completed, currently underway or expected to begin in the near future are:
Recently Completed Developments
Name Description Completion Date Anticipated Costs
Cornerstone at Canton Assisted Living Facility June 2015 $8,300,000
Canton Pointe Residential Development August 2015 $4,200,000
Premier Fence Commercial Development December 2015 $1,600,000
TOTAL $14,100,000
Future/In-Progress Developments
Name Description Anticipated Completion Anticipated Costs
Brightview Canton LLC Assisted Living Facility Spring 2016 $25,600,000
Ice House Skating Rink Fall 2016 $6,000,000
Pequit View Residential Development 12 Units Remaining (1) $1,000,000
TOTAL $32,600,000
__________________
(1) Estimated completion date of remaining units currently unknown.
Principal Employers
The following are the principal employers, other than the Town itself, located in the Town:
Nature of Approximate
Company Business Current Employees (1)
Reebok International Footwear 1,032
Computershare Operations Center/Transfer Agents 737
Dunkin Brands, Inc. Food & Beverages 639
Meditech Hospital Software 387
Stoneridge Control Devices Automotive Engineering 300
Boston Mutual Insurance Insurance Sales & Service 274
One Beacon Insurance Insurance Sales & Service 225
Lojack Recovery Systems 191
CB&I (Shaw Group) Engineering 180
Harbar Food Manufacturer 150
__________________
Source: The individual corporations as of January 2016.
42Source page 53
Employment by Industry
Calendar Year Average
2014 2013 2012 2011 2010
Construction & Natural Resources 2,519 2,395 2,067 2,053 2,103
Manufacturing 1,668 1,672 1,665 1,773 1,942
Trade, Transportation & Utilities 4,347 4,293 4,235 4,331 4,387
Financial Activities 1,960 1,937 2,074 1,923 1,940
Professional & Business Services 5,743 5,985 5,141 4,261 4,190
Education & Health Services 2,587 2,669 2,467 2,493 2,563
Leisure & Hospitality 1,178 1,212 1,160 1,211 1,189
Information & Other Services 1,665 1,715 1,849 1,828 1,759
Public Administration 500 498 392 382 395
Total Employment 22,174 22,378 21,052 20,274 20,468
Number of Establishments 1,062 1,036 1,034 1,062 1,072
Total Annual Wage (000) $1,562,834 $1,550,248 $1,440,690 $1,311,968 $1,301,386
Average Weekly Wage $1,355 $1,332 $1,316 $1,244 $1,221
___________________
Source: Massachusetts Executive Office of Labor & Workforce Development.
Building Permits
Calendar
Year Number Estimated Value
2015 1,514 $75,556,729
2014 1,132 48,949,775
2013 882 48,014,121
2012 691 36,281,045
2011 655 39,973,850
OTHER DATA
Unemployment (1)
Year Canton Massachusetts United States
2015 (December) 3.8% 4.6% 4.8%
2014 5.1 5.8 6.2
2013 5.9 6.7 7.4
2012 5.9 6.7 8.1
2011 6.3 7.2 8.9
______________________
(1) Massachusetts Executive Office of Labor & Workforce Development. Full year annual averages except for 2015 which is for the
month indicated.
43Source page 54
Population (1)
Canton Norfolk County Massachusetts
Year Number % Change Number % Change Number % Change
2014 (Estimate) 22,510 4.4% 692,254 3.2% 6,745,408 3.0%
2010 21,561 3.8 670,850 3.2 6,547,629 3.1
2000 20,775 12.1 650,308 5.6 6,349,097 5.5
1990 18,530 1.9 616,087 1.6 6,016,425 4.9
1980 18,182 606,587 5,737,037
____________________
(1) Source: U.S. Department of Commerce for actuals and estimates.
Population Density (1)
Canton Norfolk County Massachusetts
Year Number Density (2) Number Density Number Density
2014 (Estimate) 22,510 1,188.6 692,254 1,732.3 6,745,408 860.6
2010 21,561 1,138.5 670,850 1,678.8 6,547,629 835.4
2000 20,775 1,097.0 650,308 1,627.4 6,349,097 810.0
1990 18,530 978.5 616,087 1,541.7 6,016,425 767.6
1980 18,182 960.1 606,587 1,518.0 5,737,037 732.0
____________________
(1) Source: U.S. Department of Commerce for actuals and estimates.
(2) Based on 18.9 square miles.
Population Composition 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Age Number Percent Number Percent Number Percent
Under 5 Years 1,159 5.3% 37,380 5.5% 365,403 5.5%
5 Years to 19 Years 4,293 19.5 131,048 19.2 1,247,674 18.7
20 Years to 64 Years 12,563 57.0 411,485 60.3 4,085,614 61.4
65 Years & Over 4,021 18.2 102,947 15.1 958,600 14.4
Total 22,036 100.0% 682,860 100.0% 6,657,291 100.0%
Median Age 42.5 40.8 39.3
Median Age (2000) 39.8 38.1 36.5
__________________
(1) Source: U.S. Department of Commerce.
44Source page 55
Income Levels (1)
Canton Norfolk County Massachusetts
% Change from % Change from % Change from
Year Amount Previous Census Amount Previous Census Amount Previous Census
Per Capita-Personal
2014 (5-yr est.) $48,104 43.6% $45,375 39.7% $36,441 40.4%
1999 33,510 52.1 32,484 54.0 25,952 50.7
1989 22,035 21,091 17,224
Median Family
Income (2014) $118,931 $110,755 $86,132
Median Household
Income (2014) $90,878 $86,469 $67,846
% Below Poverty
Level (2014) 6.2% 6.5% 11.6%
_________________
(1) Source: U.S. Department of Commerce.
Family Income Distribution 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Income for Families Families Percent Families Percent Families Percent
Less than $10,000 152 2.6% 3,491 2.1% 59,047 3.7%
$10,000 - $24,999 229 4.0 7,778 4.6 133,424 8.3
$25,000 - $49,999 559 9.7 19,237 11.3 259,622 16.1
$50,000 - $74,999 717 12.4 22,080 13.0 250,684 15.5
$75,000 - $99,999 691 12.0 22,607 13.3 226,045 14.0
$100,000 - $149,999 1,287 22.3 39,299 23.1 331,419 20.5
$150,000 or more 2,140 37.1 55,719 32.7 354,821 22.0
Total 5,775 100.0% 170,211 100.0% 1,615,062 100.0%
_________________
(1) Source: U.S. Department of Commerce.
Household Income Distribution 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Income for Households Households Percent Households Percent Households Percent
Less than $10,000 340 3.8% 11,267 4.4% 154,704 6.1%
$10,000 - $24,999 891 10.0 25,755 10.0 352,172 13.9
$25,000 - $49,999 1,187 13.4 38,938 15.1 464,120 18.3
$50,000 - $74,999 1,398 15.8 37,726 14.6 402,049 15.8
$75,000 - $99,999 1,073 12.1 32,324 12.5 322,545 12.7
$100,000 - $149,999 1,627 18.3 49,978 19.3 426,367 16.8
$150,000 or more 2,357 26.6 62,687 24.2 416,528 16.4
Total 8,873 100.0% 258,675 100.0% 2,538,485 100.0%
_________________
(1) Source: U.S. Department of Commerce.
45Source page 56
Value Distribution Of Specified Owner-Occupied Housing Units 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Units Number Percent Number Percent Number Percent
Less than $100,000 230 3.4% 4,833 2.7% 68,804 4.4%
$100,000 - $199,999 407 6.0 8,499 4.8 221,311 14.0
$200,000 - $299,999 808 11.9 33,268 18.6 392,286 24.8
$300,000 - $499,999 3,062 45.3 74,637 41.8 566,852 35.9
$500,000 - $999,999 2,091 30.9 44,568 25.0 274,666 17.4
$1,000,000 or more 168 2.5 12,584 7.1 57,019 3.6
Total 6,766 100.0% 178,389 100.0% 1,580,938 100.0%
Median Value $429,100 $393,500 $329,900
_________________
(1) Source: U.S. Department of Commerce.
Age Distribution Housing Units 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Year Built Number Percent Number Percent Number Percent
2000 or later 1,066 11.6% 23,194 8.5% 228,324 8.1%
1980 to 1999 2,407 26.2 49,178 18.1 513,510 18.2
1940 to 1979 4,131 44.9 123,643 45.5 1,109,791 39.4
1939 or Earlier 1,591 17.3 75,788 27.9 965,250 34.3
Total 9,195 100.0% 271,803 100.0% 2,816,875 100.0%
_________________
(1) Source: U.S. Department of Commerce.
Housing Unit Inventory 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Units in Structure Number Percent Number Percent Number Percent
1, Detached 5,743 62.5% 158,187 58.2% 1,471,675 52.2%
1, Attached 511 5.6 12,639 4.7 146,215 5.2
2 to 4 691 7.5 35,898 13.2 594,343 21.1
5 to 9 727 7.9 14,661 5.4 167,467 5.9
10 to 19 819 8.9 12,341 4.5 120,608 4.3
20 or More 704 7.7 37,057 13.6 292,011 10.4
Mobil Home, Trailer, or Other 0 0.0 1,020 0.4 24,556 0.9
Total 9,195 100.0% 271,803 100.0% 2,816,875 100.0%
_________________
(1) Source: U.S. Department of Commerce.
46Source page 57
Educational Attainment 2014 5-year estimates (1)
Canton Norfolk County Massachusetts
Years of School Completed Number Percent Number Percent Number Percent
Less than 9th Grade 195 1.2% 13,575 2.9% 222,831 4.9%
9th to 12th Grade, No Diploma 313 2.0 16,208 3.4 255,123 5.6
High School Graduate 2,801 17.6 101,927 21.5 1,165,918 25.6
Some College, No Degree 2,855 17.9 69,684 14.7 741,865 16.3
Associate’s Degree 1,410 8.9 36,314 7.7 352,173 7.7
Bachelor’s Degree 5,149 32.3 131,407 27.7 1,030,633 22.6
Graduate or Professional Degree 3,207 20.1 105,449 22.2 792,803 17.4
Total 15,930 100.0% 474,564 100.0% 4,561,346 100.0%
High School Graduate or Higher 15,422 96.8% 444,781 93.7% 4,083,392 89.5%
Bachelor’s Degree or Higher 8,356 52.5% 236,856 49.9% 1,823,436 40.0%
_________________
(1) Source: U.S. Department of Commerce.
Public School Enrollments (1)
Actual Projected
2011-12 2012-13 2013-14 2014-15 2015-16 2016-2017
Pre K – 4 1,337 1,328 1,346 1,328 1,308 1,300
Grades 5 - 8 1,031 1,036 1,051 1,086 1,065 1,045
Grades 9 - 12 883 898 858 914 943 980
Ungraded 47 50 66 57 59 59
Total 3,298 3,312 3,321 3,385 3,375 3,384
___________________
(1) Source: Massachusetts Dept. of Education - As of October 1, each school year.
School Facilities
School Capacity Oct. 2015 Enrollment
Canton High School 1,000 943
Galvin Middle School 800 813
Hansen Elementary 484 477
Kennedy Elementary 528 493
Luce Elementary 584 512
Rodman Pre-School 80 78
3,476 3,316
47Source page 58
LITIGATION
At present there are a number of suits pending in which the Town is a defendant. In the opinion of the Town,
none of the pending litigation is considered likely to result, either individually or in the aggregate, in final
judgments which would materially affect the Town’s financial position.
TOWN OF CANTON
Massachusetts
By: /s/ James R. Murgia
Finance Director/Treasurer
Dated: February 25, 2016
48Source page 59
APPENDIX A
The following Balance Sheets for fiscal years ending June 30, 2011 through 2015, and the Comparative
Statements of Revenues, Expenditures and Changes in Fund Balances for fiscal years ending June 30, 2011
through 2015, have been taken from the audited financial statements of the Town. Powers & Sullivan, Certified
Public Accountants audited the accounts for the Town for 2011 through 2012.
The Town engaged Roselli, Clark & Associates, Certified Public Accountants, to audit the accounts for the
Town for the years ending June 30, 2013 and 2015. The June 30, 2015 audit is reproduced in Appendix B.
Certificate of Achievement for Excellence in Financial Reporting
The Certificate of Achievement for Excellence in Financial Reporting has been awarded to the Town by the
Government Finance Officers Association of the United States and Canada (GFOA) for its Comprehensive
Annual Financial Report (CAFR) for June 30, 2006 through June 30, 2015. The Certificate of Achievement is
the highest form of recognition in the area of governmental accounting and financial reporting, and its
attainment represents a significant accomplishment by a government and its management.
A-1Source page 60
TOWN OF CANTON
MASSACHUSETTS
GENERAL FUND
Balance Sheet (1)
June 30,
2015 2014 2013
Assets
Cash and Cash Equivalents $14,516,851 $13,388,921 $18,785,224 (2)
Investments 2,960,871 2,971,619 0
Receivables, net of uncollectibles:
Real Estate & Personal Property Taxes 541,545 451,911 576,418
Tax Liens & Foreclosures 1,203,433 1,341,202 1,531,791
Motor Vehicle Excise Taxes 478,923 212,688 547,033
Intergovernmental 2,499,064 2,860,353 3,210,035
Due from Other Funds 293,589 39,618 472,315
Other Assets 1,213,076 651,390 228,660
Total Assets $23,707,352 $21,917,702 $25,351,476
Liabilities and Fund Balances
Liabilities
Warrants Payable $ 957,884 $ 1,152,448 $ 1,131,795
Accrued Payroll & Withholdings 3,849,178 3,562,869 3,148,230
Tax Refunds Payable 1,925,000 1,475,000 1,152,000
Other Liabilities 41,894 34,916 29,963
Deferred Revenues 4,344,867 4,624,671 5,620,685
Total Liabilities $11,118,823 $10,849,904 $11,082,673
Fund Balances
Restricted $ 0 $ 0 $ 5,160,240
Committed 364,246 358,148 470,608
Assigned 793,408 893,993 361,035
Unassigned 11,430,875 9,815,657 8,276,920
Total Fund Balances $12,588,529 $11,067,798 $14,268,803
Total Liabilities
and Fund Balances $23,707,352 $21,917,702 $25,351,476
_____________________
(1) Excerpts from audited financial statements prepared by Roselli, Clark & Associates, Certified Public Accountants.
(2) Includes Investments.
A-2Source page 61
TOWN OF CANTON
MASSACHUSETTS
GENERAL FUND
Balance Sheet (1)
June 30,
2012 2011
Assets
Cash and Short-Term Investments $17,912,965 $16,940,144
Receivables-net of
Uncollectible Amounts:
Property Taxes 621,348 739,410
Tax Liens & Foreclosures 1,330,045 1,104,284
Excise 106,840 170,863
Other Assets 7,149 8,134
Due from Other Funds 436,899 739,975
Due from Other
Governments (2) 3,605,923 4,001,029
Total Assets $24,021,169 $23,703,839
Liabilities and Fund Equity
Liabilities
Warrants Payable $ 763,695 $ 1,034,789
Payroll Payable 2,821,074 2,722,580
Other Liabilities 358,064 448,654
Deferred Revenue (2) 5,472,257 5,823,790
Tax Refunds Payable 1,220,000 446,000
Total Liabilities $10,635,090 $10,475,813
Fund Equity (3)
Restricted (4) $ 5,483,092 $ 6,033,902
Assigned 784,891 1,368,595
Unassigned 7,118,096 5,825,529
Total Fund Equity $13,386,079 $13,228,026
Total Liabilities
and Fund Equity $24,021,169 $23,703,839
_____________________
(1) Excerpts from audited financial statements prepared by Powers and Sullivan, Certified Public Accountants.
(2) Includes State School Building Authority construction grant reimbursements.
(3) Effective fiscal 2011, due to GASB 54, there are changes in how Fund Balances are categorized and the Stabilization Fund is now
classified as part of the Unassigned General Fund Balance.
(4) Reserved for MSBA Grant.
A-3Source page 62
TOWN OF CANTON
MASSACHUSETTS
Combined Statement of Revenues, Expenditures and Changes in Fund Balances (1)
General Fund
(000 omitted)
Revenues 2015 2014 2013 2012 2011
Property Taxes $63,274 $61,063 $59,064 $56,247 $55,346
Payment in Lieu of Taxes 222 215 224 219 199
Tax Liens 352 783 220 372 225
Excises 4,120 3,715 3,474 3,204 3,290
Hotel & Meals Taxes 582 568 461 0 0
Penalties and Interest 311 344 324 263 306
Departmental and Other 1,102 951 789 485 501
Licenses and Permits 1,282 818 1,044 912 646
Intergovernmental - State 11,910 16,882 16,482 15,228 14,884
Fines and Forfeits 113 141 110 99 145
Earnings on Investments 142 145 82 122 145
MSBA Capital Grant 0 0 0 0 0
Total Revenues 83,410 85,625 82,274 77,151 75,687
Expenditures
General Government 3,806 4,256 3,589 3,464 3,447
Public Safety 10,038 9,745 9,438 8,887 8,903
Education 36,052 34,942 33,426 32,222 31,750
Public Works 5,024 4,649 4,308 3,790 4,209
Human Services 826 794 770 782 699
Culture and Recreation 1,698 1,703 1,513 1,465 1,477
Debt Service 4,986 6,140 6,063 5,967 5,868
Intergovernmental Charges 945 960 960 875 849
Employee Benefits 11,500 11,081 10,226 10,304 9,974
Pension Benefits 7,321 11,915 11,733 11,325 11,105
Total Expenditures 82,196 86,185 82,026 79,081 78,281
Excess (Deficiency) of Revenues Over
Expenditures 1,215 (560) 248 (1,929) (2,594)
Other Financing Sources (Uses)
Premium from Issuance of Debt 109 2,259 101 55 175
Proceeds from Refunding Bonds 0 15,185 0 0 0
Payments of Refunded Bonds 0 (21,740) 0 0 0
Operating Transfers - In 1,026 2,677 2,260 2,380 2,630
Operating Transfers - Out (830) (1,023) (1,726) (349) (376)
Total Other Financing Sources (Uses) 305 (2,641) 635 2,086 2,429
Excess (Deficiency) of Revenues and
Other Financing Sources Over
Expenditures and Other Financing Uses 1,520 (3,201) 883 158 (165)
Fund Balance – Beginning (2) 11,068 14,269 13,386 13,228 13,393
Fund Balance - Ending $12,589 $11,068 $14,269 $13,386 $13,228
____________________
(1) Excerpts from audited financial statements of the Town. Totals may not add due to rounding.
(2) Effective fiscal 2011, due to GASB 54, there are changes in how Fund Balances are categorized and the Stabilization Fund is now
classified as part of the General Fund.
A-4Source page 63
APPENDIX B
There follows in this Appendix the audited financial statements of the Town of Canton, Massachusetts, as of
June 30, 2015 prepared by Roselli, Clark & Associates, Certified Public Accountants.
B-1Source page 64
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Source page 65
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2015Source page 66
On the cover and below: After acquiring a former Knights of Columbus hall, the Town made extensive renovations to transform the vacant building into a Senior Center to better serve the Town’s growing elderly population.
Source page 67
Town of Canton, Massachusetts
Comprehensive Annual Financial Report
For the Fiscal Year
July 1, 2014 through June 30, 2015
Prepared by the Finance DepartmentSource page 68
This page intentionally left blank.
Source page 69
Introductory Section The Town’s Department of Veterans Services installed six new flagpoles, representing each branch of the military, at the American Legion Walk of Honor located at Canton Corner Cemetery.
Source page 70
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Source page 71
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1-10
Certificate of Achievement For Excellence in Financial Reporting................................................. 11
Organizational Chart Town .............................................................................................................. 12
Organizational Chart Schools ........................................................................................................... 13
Principal Town Officials .................................................................................................................. 14
FINANCIAL SECTION
Independent Auditor’s Report ....................................................................................................... 15-17
Management’s Discussion and Analysis ....................................................................................... 19-31
Basic Financial Statements:
Statement of Net Position .......................................................................................................... 34
Statement of Activities ............................................................................................................... 35
Balance Sheet – Governmental Funds ....................................................................................... 36
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position ............................................................................................ 37
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................................................... 38
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ..................................... 39
Statement of Net Position – Proprietary Funds .......................................................................... 40
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds.............. 41
Statement of Cash Flows – Proprietary Funds ........................................................................... 42
Statement of Fiduciary Net Position .......................................................................................... 43
Statement of Changes in Fiduciary Net Position ....................................................................... 44
Notes to Basic Financial Statements ....................................................................................... 45-74
Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability ............................... 76
Schedule of the Town’s Contribution to Pension Plan .............................................................. 76
Schedule of the Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teachers’ Retirement System...................................................................... 77
Schedule of Funding Progress – Other Postemployment Benefits ............................................ 78
Schedule of Contribution Funding – Other Postemployment Benefits ...................................... 78
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and
Actual – General Fund .................................................................................................. 79-81
Notes to Required Supplementary Information ....................................................................... 82
Combining Statements:
Nonmajor Governmental Funds ............................................................................................ 83-85
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 86-88
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ........................................................... 90-92
iSource page 72
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2015
TABLE OF CONTENTS
Page(s)
Internal Service Funds ............................................................................................................ 93
Combining Statement of Net Position – Internal Service Funds ...................................... 94
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ............................................................................................. .95
Combining Statement of Cash Flows – Internal Service Funds ....................................... .96
Fiduciary Funds ...................................................................................................................... .98
Statement of Changes in Assets and Liabilities – Agency Fund ..................................... .99
STATISTICAL SECTION
Narrative ..................................................................................................................................... 101
Net Position by Component – Last Ten Fiscal Years...................................................................... 102
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 103-104
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 105
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 106
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years............................................................................ 107
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 108
Property Tax Levies and Collections – Last Ten Fiscal Years........................................................ 109
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 111
Ratios of General Bonded Debt Outstanding .................................................................................. 111
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 112
Direct and Overlapping Governmental Activities Debt .................................................................. 113
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 114
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 115
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 116
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 117
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 118
iiSource page 73
Letter of Transmittal
November 4, 2015
Honorable Board of Selectmen and Citizens of the Town of Canton, Massachusetts:
I am pleased to acknowledge that the Town of Canton has completed its tenth Comprehensive Annual
Financial Report (CAFR). The report is for the fiscal year ended June 30, 2015, and I am proud that we
have continued this annual tradition of preparing a report that communicates to our constituents and
investors the highest degree of transparency in financial reporting for municipalities.
The Town is responsible for the accuracy, completeness and fairness of the data presented in the CAFR.
This letter of transmittal and the management’s discussion and analysis, located in the financial section
of the CAFR, provide a comprehensive financial overview of the Town and ensure that the financial and
general operations of Town government remain open for easy viewing.
The CAFR represents a complete set of financial statements in conformity with generally accepted
accounting principles in the United States of America (GAAP), that are audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants. This CAFR
meets and exceeds those requirements and presents itself as an informative resource for all those
interested in the financial activities of the Town.
The report is designed to be used by the elected and appointed officials of the Town and others who are
concerned with its management and progress such as bond analysts, banking institutions and rating
agencies as well as the citizens and taxpayers of the Town of Canton.
Since the report consists of management’s representations concerning the finances of the Town,
management assumes full responsibility for the completeness and reliability of all of the information
presented. In addition, management of the Town is responsible for establishing and maintaining an
internal control structure designed to ensure the assets of the Town are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh their
benefits, the Town of Canton’s comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatement.
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The Town's financial statements have been audited by Roselli, Clark and Associates, a firm of licensed
certified public accountants. The goal of the annual independent audit is to provide reasonable assurance
that the financial statements of the Town are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; assessing the accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation. The independent auditor concluded, based upon
the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town's financial
statements for the fiscal year ended June 30, 2015 are fairly presented in conformity with GAAP. The
independent auditor’s report is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the Town was part of a broader, federally
mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards
governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the audited government’s internal controls and
compliance with legal requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. These reports are available in the Town 's separately
issued Single Audit Reports Pursuant to OMB Circular A-133.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This
letter of transmittal is designed to complement that analysis and should be read in conjunction with it.
The MD&A can be found immediately following the report of the independent auditors.
Profile of the Town
Canton was incorporated as a Town in 1797. The Town is located in eastern Massachusetts,
approximately 18 miles southwest of Boston, has a population of approximately 21,000 and a land area of
approximately 19 square miles. It is situated at the junction of Interstates 95 and 93, with access to Routes
24 and 138, providing an excellent location for residents, businesses and commuters.
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MBTA commuter rail trains on the Providence/Stoughton Line pass through Canton. Some stop at Canton
Junction. This line crosses the Neponset River on the Canton Viaduct, a prominent local landmark. Route
128 Station in neighboring Westwood also carries many Canton commuters into Boston. Amtrak trains
(including the Acela Express high-speed trains) also stop at Route 128, but pass through Canton without
stopping. Another line branches into Stoughton, stopping at Canton Center.
Bus service is available to Mattapan Station in the MBTA system, and Canton’s close proximity to
Boston also places it within a reasonable distance from Logan International Airport, the largest
transportation center in New England.
The Town has a rich and varied industrial heritage, serving as the location of Paul Revere’s copper rolling
mills in post-Colonial times, and as the site of rubber, chemical and woolen manufacturing in more recent
times. Present commercial enterprises play a key role in the Town’s fiscal stability and are considered a
major asset to the community. The prime commercial areas are well located so as to allow direct highway
access without affecting the community’s small town charm.
Many of the Town’s lakes, ponds and wetlands have been protected and preserved for present enjoyment
and future generations. Among the protected areas are the Eleanor Cabot Bradley Reservation, an 82 acre
estate that blends open fields, woodlands and gardens in the shadow of Great Blue Hill and Pequitside
Farm, a town-owned 38 acre conservation and recreation area which offers playing fields, picnicking,
hiking and cross country skiing.
The Town offers a full range of traditional municipal services including police and fire protection,
ambulance and rescue services, education, maintenance of streets and infrastructure, solid waste
collection and disposal, health and human services, cultural and recreational, administrative and financial
services. The Town is a member community of the Massachusetts Water Resources Authority (MWRA)
for its water and sewer services.
Canton prides itself on its quality school system. Canton students consistently perform well on national
and state tests and over 90% of students graduating from the high school go on to higher education. The
Town is the location of the Blue Hills Regional Technical School which provides expanded vocational
education opportunities for high school students of Canton and eight other area communities. Canton is
also home to one of the two campuses of Massasoit Community College. The campus is a multi-level
facility with specialized labs and art studios that support the technical and visual arts programs of the
College. The campus also includes the Milton Art Museum, Akillian Gallery and the College’s
Professional Development Center.
Several years ago, the Town reached its 10% affordable housing requirement mandated by the
Commonwealth of Massachusetts (Commonwealth), which is an important milestone as communities
under the 10% threshold are subject to an appeals process that can overturn local zoning board decisions.
This will allow the Town to maintain its commitment to developing much needed affordable housing
units in areas of the Town that can accommodate the growth.
The Town operates under the Selectmen, Town Administrator, and Open Town Meeting form of
government. The five elected Selectmen make policy decisions, and the Town Administrator is
responsible for carrying out the policies of the Selectmen and for managing the day-to-day operations of
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the Town. The policies and procedures of the Board of Selectmen are detailed in the administrative
code that will continue to evolve and be created over time to best serve the community.
An elected, five-member School Committee appoints a School Superintendent who administers the public
school system of the Town. School Committee members, like the Selectmen, are elected at-large to three-
year staggered terms.
An annual operating budget is approved by Town Meeting two months prior to the start of the fiscal year.
This annual budget serves as the foundation for the Town’s financial planning and control. The budget is
prepared by fund, function (e.g. general government) and department (e.g. finance) allowing the
department heads to allocate resources within the department as they see fit. Transfers between
departments, however, need special approval by Town Meeting unless specifically exempted by state
statute.
Factors Affecting Economic Condition
Canton continues to take a pro-active approach encouraging well planned economic development. The
Town fully appreciates the significance of commercial and industrial growth and development (and
redevelopment) especially in terms of long term fiscal stability. The Town continues its focus on future
growth, which is sustainable and “complimentary” for economic development including employment
opportunities for our residents.
Municipal officials continue to work closely with and receive valuable support from the State Office of
Business Development as well as regional planning support from the Metropolitan Area Planning Council
(MAPC). In addition business advocacy organizations, such as Canton Association of Business and
Industry (CABI) play a vital role. The Town strives to take full advantage of the latest initiatives and
incentives made available to it notably under Chapter 43D for expedited permit approvals and Tax
Incremental Financing (TIF).
The Town’s Economic Development Committee (EDC) is also a special resource. The Town regularly
takes advantage of local talent from the community who specialize in finance, banking, development and
real estate.
The Town continues to update and publish an economic development recruitment guide which includes
pertinent information sought by private company CEO’s when making siting and expansion decisions.
Recently, the Board of Selectmen published a new business and community guide and has made that
information available online as well.
As previously discussed, the Town surpassed its required l0% affordable housing goal as required by
State regulation. The Town has incorporated a continued affordable housing unit goal, within the Housing
Action Plan, to ensure the Town keeps pace with any new market rate unit starts. This year the
construction by Avalon Development of additional affordable housing will commence on Randolph Street
and further increase the Town’s 40B compliance.
The Town’s commitment to sound economic development is further demonstrated by creating
partnerships with (MAPC) Metropolitan Area Planning Council and Neponset Valley Chamber of
Commerce to ensure that the coordination and resource allocation on key planning issues facing the
Town. The Town reactivated the Economic Development Committee and created, with Town Meeting,
the Permit Advisory Committee both of which provide technical assistance to new businesses to Canton.
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The Town has instituted a Google-based web search device, which identifies Canton as a business
friendly community. The web product highlights, via a series of videos, the Town of Canton as a solid
and desirable business and family destination. The Town’s continued status as a 43D Expedited
Permitting Community has benefitted the Town greatly and has led to the actual designation of many new
priority development sites. This 43D designation, which was granted to the Town in 2008, came with a
$150,000 grant to hire a permit specialist who has completed the administrative and organizational work
necessary to implement the issuance of permits via an integrated and automated town wide permit system
which better serves the public and the Town in terms of real time tracking of permits.
The Town has available a permit guidebook, which lays out the Town’s permitting requirements in an
easy to use format. The goal is to identify key requirements and improve communications, saving
applicants time and money. The Permit Advisory Committee has been a successful endeavor by bringing
together key permit granting agency representatives to counsel and guide any proponent of a proposed
commercial endeavor. Participation and results continue to be overwhelmingly positive. The Town has
also published a Tax Incremental Financing Evaluation Policy document designed to provide a rational
and consistent intake evaluation of TIF requests. The new approach allows the Town to quantify and
better evaluate any request to reduce taxes for a business seeking to locate or expand. Also, the Town
launched a Payment in Lieu of Taxes Program (PILOT) that encourages non-taxable property owners to
voluntarily participate in the
support of public services.
The Town has completed
construction of the downtown
revitalization project
commonly referred to as the
Streetscape Improvement
Project. This work was funded
as a result of a $2.6 million
dollar Commonwealth grant
received due to the Town’s
Smart Growth efforts and
rezoning of the Downtown.
The Town has also completed safety and efficiency improvement work on two key intersections ($2.2
million dollar Commonwealth grant) located in the heart of the Route 138 business district. These
intersections are located at the Randolph and Washington Street Intersections with Route 138. These
projects have improved both the safety and efficiency of this commercial roadway. In addition, the Board
of Selectmen has also empanelled a multi-disciplined group of volunteers who have completed a
visioning process which has led to a variety of re-zoning recommendations with a goal of improving the
business climate and enhance zoning flexibility to spur additional economic development potential along
this vital commercial roadway.
The Town was also a participant in a regional planning study to evaluate the effects of new growth in
both residential and commercial construction. The study’s focus was to identify growth related problems
such as transportation, infrastructure, environmental, and economic development issues. In addition, a
build-out analysis was completed to assist and improve public policy decision-making with regard to
growth and development related to educational planning. These studies have been coordinated with other
immediate area communities.
The Town is in the process of evaluating the opportunities and or impacts of the South Coast Rail Project
which is advancing through preliminary and environmental design. The State initiative would provide rail
Town of Canton, Massachusetts Page 5 of 118 Comprehensive Annual Financial ReportSource page 78
service from Boston to Fall River/New Bedford via a route now determined by the State, known as the
Stoughton Alternative, which will include impacts in Canton.
The Town had submitted approximately $76,000,000 in requests as part of the Federal Stimulus Funding
Initiative with a goal to benefit overall
capacity and infrastructure. In 2010 the
Town received a MORE grant in the
amount of $850,000 and completed
infrastructure improvements along Dan
Road, an important commercial area of
Town. After much effort, the Town
secured the commitment of
Organogenesis, a bio tech firm, now
located on Dan Road, which was
contemplating relocation. Their
commitment to stay in Canton and
expand was an important part of the
Town’s success in obtaining this new
funding.
Canton’s Master Plan Initiative required a careful review and analysis of existing conditions balanced
with a vision for the future. The work program is designed to enlist public interest and participation in
shaping the Town’s future. Workshops, neighborhood meetings, leadership interviews and community
surveys were conducted. The Town has conducted an extensive public outreach campaign to better assure
good attendance at workshops and neighborhood focus groups. Existing planning, engineering reports and
documents have been reviewed and a written report, which summarizes their major issues and relevant
recommendations were prepared and remains available. The overall objective of the Master Plan initiative
was to develop a sustainable residential and business development strategy for the Town.
Another objective of the Master Plan Initiative was to address the often-conflicting goals of economic
development and resource protection. Sustainable development providing for economic growth that is
compatible with resource protection remains an important Town focus. The Town’s approach includes
promoting economic development that is supported by adequate infrastructure. Thus, the dual objectives
of the Master Plan Initiative remain to provide for economic growth which is (1) compatible with
resource protection and (2) supported by adequate infrastructure. To ensure this, the Town embarked on a
four-town regional planning initiative, which is still ongoing. The Towns of Canton, Dedham, Norwood
and Westwood share a common watershed and an interlinked highway system. The Towns continue to
work together and meet regularly to discuss economic development on a regional basis. This regional
planning initiative encourages and reminds area towns that, despite borders, what happens in another
neighboring community may have an impact, both positive and potentially negative, on one another. The
Towns plan and communicate to shape growth, protect water resources, transportation infrastructure and
to insure support and advocacy for growth in the region - to everyone’s benefit. This group continues to
pursue State and Federal funding for the replacement of the Interstate 95 and Interstate 93 Interchange, a
source of safety concerns and traffic tie-ups.
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Residential developments such as Windsor Woods,
Indian Woods, Pequit View and Blue Hill
Commons are complimented by commercial
developments such as Dunkin Brands with their
worldwide corporate headquarters along with other
top Canton companies such as Meditech, Network
Engines, One Beacon, Boston Mutual,
Computershare, LoJack and Pepsi.
The Town’s planning focus also includes
improvements to the highway system that serves the
Town and the region. Now underway is the Route 128
Add-a-Lane Project, which is federally funded with
expected completion in calendar 2016.
The Town recently entered into a long-term lease of its
capped landfill to be used by a private entity to install
solar panels on fifteen acres of the site at no cost to
Canton. The lease provides the Town with guaranteed payments of $20,000 per acre, per year, while
allowing the Town the ability to purchase all the electricity generated by this 5.6 megawatt facility at a
substantial savings. The Pine Street Solar Facility went online August 15, 2012 (one of the largest in the
Northeast) and provided over $100,000 in net metering credits savings to the Town, along with lease
payments totaling $300,000 in new recurring operating revenue increasing annually by 2.5%.
In summary, Town leaders recognize the importance of maintaining a stable tax situation for its residents.
Development on the commercial side helps accomplish this goal and the Town continues to seek out the
means to maintain vigilance in this area.
Property Taxes The growth of the Town’s main source of revenues, property taxes, is capped by
Proposition 2 ½ and can only be overridden through a ballot by the voters. While revenue increases have
been limited in recent years, fixed costs, including health insurance and pension costs, have increased
more proportionally. As a result, balancing the annual budget is a challenge without an appropriation
from free cash. The Town attempts to mitigate this impact by conservatively forecasting revenues thus
creating free cash in the subsequent year.
Several years ago, the Town’s management made the difficult choice to cut services and raise fees in
order to balance the budget. With more cuts looming in future years, the Town’s voters approved a $4.5
million Proposition 2 ½ tax override for fiscal year 2009 that allowed for the restoration of most of the
budget cuts from the prior years. The tax override was planned to be phased in over a three year period
with an annual cost to the average residential homeowner of $450. In addition, effective fiscal year
2013, the Town negotiated changes to its health insurance plans that required higher out of pocket costs
from its employees and retirees but stabilized rates. These initiatives have allowed the Town to maintain a
consistent level of reserves from year to year and continue to make contributions to its OPEB Trust Fund.
Town of Canton, Massachusetts Page 7 of 118 Comprehensive Annual Financial ReportSource page 80
The Town’s available reserves on a
GAAP basis represent the amount in
Unassigned Fund Balances (Millions)
unassigned fund balance. As 12.0
discussed previously, the Town’s
reserves have been increasing on an 10.0
annual basis since the stabilization 8.0
of the recession in 2011. This has
been a direct result of the initiatives 6.0
implemented by management as
discussed in the previous paragraph. 4.0
These strong reserve levels, when 2.0
combined with the Town’s strong 0.0
management practices, desirable 2010 2011 2012 2013 2014 2015
location in a strong metropolitan
statistical area, assessed valuations and strong wealth factors directly contributed to an upgrade in the
Town’s bond rating from ‘AA+’ to ‘AAA’. This is the highest investment grade possible. The override
and the resulting revenue flexibility to restore lost services and stabilize budgets in future fiscal years
were cited as prominent factors in the upgrade. The Town is committed to maintaining its reserves at a
level expected from communities that engender the highest bond rating.
Long-term Financial Planning
Several years ago, the Town implemented a policy of preparing rolling projections. The Town believes
this will provide better insight when preparing annual budgets and will also alert the Town to any
potential budgeting issues far ahead of when these situations become real issues.
The following represents the Town’s summarized budgets for each of the next five years:
2016 2017 2018 2019 2020
Revenues and Other Sources
Real Estate and Personal Property Taxes $ 66,219,138 $ 68,406,028 $ 70,615,401 $ 72,519,961 $ 74,620,909
State Aid 7,892,369 7,892,369 7,892,369 7,892,369 7,892,369
Local Receipts 5,933,121 5,913,040 5,918,816 5,924,736 5,930,804
Transfers and Other Sources 2,583,119 2,171,543 2,204,235 2,237,949 2,272,714
Total Revenues 82,627,747 84,382,980 86,630,821 88,575,015 90,716,796
Expenditures and Other Uses
Education Budget 36,259,994 37,345,776 38,201,152 39,123,423 40,195,822
Municipal Budget 18,101,726 18,643,770 19,070,791 19,531,208 20,066,572
Fixed Costs 25,764,480 26,217,658 27,058,708 27,595,210 28,003,599
State and County Charges 954,663 975,776 1,000,170 1,025,174 1,050,803
Capital costs 1,876,000 1,200,000 1,300,000 1,300,000 1,400,000
Total Expenditures 82,956,863 84,382,980 86,630,821 88,575,015 90,716,796
Surplus/(Deficit) $ (329,116) $ - $ - $ - $ -
Town of Canton, Massachusetts Page 8 of 118 Comprehensive Annual Financial Report