Canton, Massachusetts · Saved source text
Official Statement dated May 7, 2020
Saved text from 209 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 41
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.
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 $5,941,768 of currently outstanding bonds and $5,900,000*
principal amount of the 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.
___________________
* Preliminary, subject to change.
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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.
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:
For Fiscal Year (000)
2020 2019 2018 2017 2016
Gross Amount to be Raised:
Appropriations $119,601 $112,396 $108,158 $103,563 $97,191
Other Local Expenditures 125 44 28 31 27
State & County Charges 1,219 1,183 1,057 1,002 955
Overlay Reserve 987 984 1,000 1,487 2,001
Total Gross Amount to be Raised $121,932 $114,606 $110,244 $106,083 $100,174
Less Estimated Receipts & Other Revenue:
Estimated Receipts from State 9,409 9,180 9,016 8,251 7,919
Estimated Receipts - Local 23,360 22,003 23,300 21,097 20,118
Available Funds Appropriated:
Free Cash 2,159 3,257 1,665 2,418 2,190
Revenue Sharing 0 0 0 0 0
Other Available Funds 6,838 2,728 2,287 3,370 1,751
Free Cash & Other Revenue Used
to Reduce the Tax Rate 0 0 0 0 0
Total Estimated Receipts & Revenue 41,765 37,168 36,268 35,136 31,977
Net Amount to be Raised (Tax Levy) $80,167 $77,438 $73,976 $70,947 $68,196
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The following shows the calculation of levy limits for the current and most recent fiscal years:
For Fiscal Year (000)(1)
2020 2019 2018 2017 2016
Primary Levy Limit (2) $130,904 $124,727 $118,727 $112,460 $108,018
Prior Fiscal Year Levy Limit 76,233 73,481 70,349 67,067 64,150
2.5% Levy Growth 1,906 1,837 1,759 1,677 1,604
New Growth (3) 1,735 915 1,373 1,605 1,313
Overrides 0 0 0 0 0
Growth Levy Limit 79,874 76,233 73,481 70,349 67,067
Debt Exclusions 1,206 1,322 1,605 1,559 1,706
Capital Expenditure Exclusions 0 0 0 0 0
Other Adjustments 0 0 0 0 0
Tax Levy Limit $81,080 $77,556 $75,086 $71,908 $68,774
Tax Levy 80,167 77,438 73,976 70,947 68,196
Unused Levy Capacity (4) $ 913 $ 117 $ 1,110 $ 962 $ 577
Unused Primary Levy Capacity (5) $51,030 $48,493 $45,245 $42,111 $40,951
_________________________
(1) Source: Massachusetts Department of Revenue.
(2) 2.5% of assessed valuation.
(3) Allowed increase for new valuations (or required reduction) - certified by the Department of Revenue.
(4) Tax Levy Limit less Tax Levy.
(5) Primary Levy Limit less Growth Levy Limit.
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. The Town has postponed the May 1, 2020 collection date to June 1, 2020 due to the COVID-19 pandemic.
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.
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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
2020 2019 2018 2017 2016
Total Tax Levy $80,166,862 $77,438,400 $73,975,682 $70,946,770 $68,196,330
Overlay Reserve for Abatements 987,085 983,745 1,000,350 1,486,566 2,001,198
Net Tax Levy (1) $79,179,777 $76,454,654 $72,975,332 $69,460,204 $66,195,132
Amount Collected During
Fiscal Year Payable (2) n/a $76,374,966 $72,812,949 69,940,712 $66,960,493
Percent of Net Tax Levy n/a 99.9% 99.8% 100.7% 101.2%
Amount Collected Through
2/1/2020 (2) $60,755,562 $76,584,362 $73,268,129 $70,502,590 $67,485,221
Percent of Net Tax Levy 76.7% 100.2% 100.4% 101.5% 101.9%
_________________
(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.
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.
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
2020 2019 2018 2017 2016
Tax Levy $80,166,862 $77,438,400 $73,975,682 $70,946,770 $68,196,330
Overlay Reserve for Abatements $987,085 $983,746 $1,000,350 $1,486,566 $2,001,198
Percent of Tax Levy 1.2% 1.3% 1.4% 2.1% 2.9%
Abatements Granted
During Fiscal Year of Levy n/a $600,538 $697,692 $451,549 $624,151
Through 2/1/2020 $740,220 $959,224 $768,228 $533,231 $729,298
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.
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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.
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.
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Budget Comparison
The following table sets forth the actual budgets for fiscal years 2016-2020:
Category 2020 2019 2018 2017 2016
Property Taxes $ 79,110,045 $76,420,611 $73,073,334 $69,583,040 $66,219,139
State Aid 9,368,213 9,073,243 8,868,080 8,052,320 7,865,547
Local Receipts 7,378,804 6,772,736 6,468,816 6,263,040 5,907,405
Interfund Transfers 4,364,138 5,280,374 2,795,524 3,580,003 3,088,119
Total Available Revenue $100,221,200 $97,546,964 $91,205,754 $87,478,403 $83,080,210
Appropriations
General Government Services $4,471,316 $3,991,167 $3,862,242 $ 3,642,520 $ 3,440,639
Public Safety Services 12,251,892 11,521,775 11,017,712 10,434,714 9,798,064
Educational Services 44,114,362 42,396,405 40,221,559 38,572,710 36,259,994
Public Works Service 2,383,828 2,339,283 2,301,790 2,249,215 2,227,728
Public Works Fixed Services 2,751,500 2,646,619 2,656,619 2,524,740 2,416,500
Human Services 1,074,818 1,064,869 1,080,512 1,019,570 938,166
Cultural/Recreational Services 2,260,067 2,108,854 2,016,108 1,935,546 1,771,942
Debt Service 4,555,133 4,639,138 4,486,603 4,883,206 4,991,133
Regional Schools 1,468,406 1,234,066 1,184,066 1,205,356 1,130,445
State and County Charges 1,233,217 1,070,314 1,034,849 956,905 951,976
Employee Benefits 19,279,090 18,358,856 17,182,776 16,071,936 15,542,282
Miscellaneous 1,242,571 2,021,618 2,205,918 1,854,985 1,735,341
Subtotal 97,086,200 93,392,964 89,550,754 85,351,403 81,204,210
Capital/Articles 3,135,000 4,154,000 1,655,000 2,127,000 1,876,000
Total Appropriations $100,221,200 $97,546,964 $91,205,754 $87,478,403 $83,080,210
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.
The following table sets forth the amount of state aid to the Town in recent years as well as the amount budgeted for 2020:
Fiscal Total
Year State Aid (1)
2020 (budgeted) $24,000,000
2019 22,613,720
2018 23,294,033
2017 20,785,945
2016 19,102,008
2015 17,771,093
____________________
(1) Includes all funds, not just General Funds.
See “COVID 19” above regarding the potential effects of the current pandemic on state aid and other revenues of the Town.
State School Building Assistance Program
30Source page 47
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.
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.
The Town receives a grant from the Authority representing 61% of approved construction and interest costs of the Luce
School project to be payable in equal installments over the life of the bonds.
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.
31Source page 48
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 2020:
Fiscal Motor
Year Excise Taxes
2020 (budgeted) $4,300,000
2019 4,903,303
2018 4,703,198
2017 4,505,384
2016 4,555,904
2015 4,119,643
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 voted to impose the room occupancy excise tax.
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 following table sets forth the amount of occupancy and meals excise taxes received in each of the most recent fiscal
years and the budgeted amount for fiscal 2020:
Meals
Fiscal Occupancy Excise
Year Tax Tax
2020 (budgeted) $200,000 $350,000
2019 226,657 391,091
2018 230,326 373,495
2017 231,306 361,770
2016 251,517 349,710
2015 249,855 331,766
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.
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.
32Source page 49
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 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 began collecting these
funds effective July 1, 2013. The balance in the account as of June 30, 2019 was $2,203,714.
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
33Source page 50
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
2019 $17,486,817 $5,731,060
2018 17,224,537 4,383,423
2017 16,128,195 4,851,739
2016 12,961,775 4,177,587
2015 11,430,875 3,801,359
Free cash amounts certified for the enterprise funds of the Town as of July 1, 2019 (and not included in the above) are as
follows:
Water $1,357,137
Sewer 2,239,897
Skating Rink 76,980
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)
2019 $8,490,281
2018 7,692,837
2017 7,067,308
2016 6,426,120
2015 5,754,735
____________________
(1) Included in the Stabilization Fund Balance are funds set aside for the solar facility. The Stabilization Fund is included in the
“Unassigned” General Fund Balance.
34Source page 51
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 735
full and part-time employees, of which approximately 87% belong to unions or other collective bargaining groups as
follows:
Number of Contract
Union Department People Expires
AFSCME, AFL-CIO State DPW, Library, 77 6/30/22
Council 93, Local 362 Planning Board, Secretaries
and Custodians
Administrative Employees Assoc. Various 6 6/30/21
IAFF, AFL-CIO, Local 1580 Fire 54 6/30/21
Canton Police Association, IBPO Police 39 6/30/21
Canton Police Superior Officers Association Police 3 6/30/21
Canton Teachers Association School 298 8/31/22
Canton School Maintenance and
Custodians Association School 24 6/30/21
Canton School Secretaries Association School 20 6/30/21
Cafeteria Personnel School 25 6/30/21
Educational Support Personnel Association School 94 8/31/21
640
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 and by the City of Boston.
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 two Canton MBTA stations. 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 over $500,000.
ECONOMIC DEVELOPMENT
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. Last year property tax new growth was almost double
the FY 2019 growth.
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 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 recently entered into a Special Tax
Agreement with the new owner of the former Reebok property adding $985,000 in new property tax growth. Spear Street
Capital, an owner of distinctive office properties, purchased Reebok’s former headquarters in March, 2018. In the fall of
2017, Reebok, Inc. moved its headquarters from Canton to Boston. The Town recently welcomed a new business, ProDrive
35Source page 52
Technologies furthering its manufacturing tax base. A building permit has been issued for a new substance abuse treatment
center and the Town continues to work with companies looking to relocate to the Dan Road commercial/industrial area.
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 (2015), to ensure the Town keeps
pace with any new market rate unit starts. The additional affordable housing being provided at the Paul Revere Heritage
Site will further increase the Town’s 40B compliance.
The Town was awarded $75,000 in MassDevelopment Site Readiness technical assistance services (by RKG Associates) to
do an economic development study of a large area of the Route 138 corridor. The Board of Selectmen also empanelled a
multi-disciplined group of volunteers to help guide the visioning process. The work was completed between June 2019,
and January 2020. Route 138 is Canton’s most heavily traveled arterial, a main location for the Town’s commercial base,
and a location for future development. Generally, the community has expressed a desire for a stronger design identity to
create a sense of place, and destination stores, restaurants, or other community resources as a draw. The Route 138 economic
development study makes recommendations around land use and zoning, aesthetics and sign bylaws, transportation (in
partnership with MassDot) and business recruitment.
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: the Metropolis Skating Rink and Bolivar Community Pool
(in progress). Consistent with its Energy Reduction Plan, the Town has completed LED lighting upgrades for the Town’s
streetlights and at most municipal and school buildings. The Town also made many thermal energy efficient improvements
in DPW and Fire Station buildings, and Town Hall. These were funded both with Green Communities grants ($363,114 so
far) and Town capital funds.
In addition, the Town has completed the construction of important water/sewer projects - the new addition to the Pecunit
Water Treatment Plant and $2 million of water main improvements. 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, the
Canton Association of Business and Industry, and Neponset Valley Chamber of Commerce in coordination with respect to
resource allocation and key planning issues facing the Town. The Town’s Economic Development Committee and Permit
Advisory Committee both 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 who has completed the administrative and organizational work
36Source page 53
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.
This was recently updated in 2020. 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 recently completed a Downtown parking management study, a study of the Washington and Randolph
intersection, and a Complete Streets Prioritization Plan. These reports have led to investments in new road infrastructure,
such as the proposed traffic light and road striping work at the Washington and Randolph intersection (construction to begin
in 2020).
In cooperation with Eversource, a new power line as part of its Walpole to Holbrook reliability project and resulting
negotiations yielded a complete upgrade of Walpole Street. The Route 138 Corridor Roadway Improvement project has
completed all segments from Route 128 to Randolph Street. The Massachusetts Department of Transportation has
committed over $20.0 million to rehabilitate Route 138 in Canton from the Stoughton town border to the Milton town
border. This project is scheduled to commence in 2022. The Town has completed the under-grounding of all utilities in the
Downtown, including fire alarm.
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. Recent correspondence from the MBTA indicates that another less impactful option on Canton, called
the Middleboro option, may be more financially feasible than the Stoughton alternative.
Also regarding Dan Road, the Town has entered into negotiations with Fresenius Kabi, an international drug compounding
company, for a Special Tax Agreement (STA) for a site on Dan Road. Fresenius Kabi is seeking the STA for an $8.5 million
dollar construction project at an existing site on Dan Road. The project is expected to bring eighty jobs to Canton. The
agreement was approved at the May 2017 Annual Town meeting.
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. The updated Master
Plan was adopted by the Planning Board in April 2020, and is available at www.cantonmasterplan.com.
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
37Source page 54
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. Recent residential developments include: subdivisions off Indian Way; Mariella Estates (Dedham
Street); McKendry Grove (Green Lodge Street); Yorkshire Estates (Stonewood Drive); The Preserve (off Wayside Lane);
Stillwater Estates (off Indian Lane); Cardinal’s Corner (Larkin Ct.); Beaver Meadow Estates (off Pleasant Street); as well
as condo buildings at 869 Washington Street, at the former Connor’s Wayside Furniture building (Turnpike Street), and
Paul Revere Heritage Site (Revere Street). Residential developments are complemented by commercial developments such
as two new hotels along Royall Street, the Top Golf facility at 777 Dedham Street, and expansions and additions at several
other commercial properties.
The Town’s planning focus includes improvements to the highway system that serves the Town and the region. A
construction contract has been awarded by MassDOT for the I-95/Dedham St. corridor construction project. This $55
million project will add a northbound exit ramp off I-95 to Dedham St., thereby improving access to businesses there and
will reduce side street traffic generated by the Westwood University Station Project. 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.
Also under construction at 777 Dedham Street is a new Top Golf development. This will consist of a three-level 60,000
square-foot building, a large “outfield” with catch netting, and parking lot with 463 spaces. Top Golf will utilize the existing
access road into the site and plans to install a new traffic signal at the entrance to the property on Dedham Street. The traffic
signal will be in addition to the new signals to be installed as a part of the ongoing Dedham Street improvement project
undertaken by MassDot. It is estimated that the Canton Top Golf project will create up to 500 new jobs, including 125 full-
time positions, while generating an estimated $700,000 in additional yearly property tax revenue for the Town.
The Town’s long-term lease of its capped landfill of fifteen acres is being used for solar energy production, providing the
Town with guaranteed payments of $20,000 per acre, per year, increasing annually by 2.5%, while allowing the Town the
ability to purchase all the electricity generated by this 5.6 megawatt facility at a substantial savings. The Pine Street Solar
Facility went online August 15, 2012 (one of the largest in the Northeast) and has produced the following financial benefits:
The 37 million kWh of solar electricity produced by this facility since its inception has resulted in $9.5 million of
net metering credits which exceeded the $8.4 million paid for generating this solar power.
In addition, the Town has received lease payments totalling $2.5 million over the last 8 years.
Overall, the Town has received an annual financial benefit from this solar facility which has helped in balancing
the Town’s budget along with increasing free cash reserve as follows:
FY 13 - $303,519
FY 14 - $413,585
FY 15 - $498,069
FY 16 - $556,205
FY 17 - $461,428
FY 18 - $507,845
FY 19 - $512,303
In 2015 the Town entered into a development agreement with Canton Holdings LLC to redevelop the former Plymouth
Rubber site. The project will create 304 residential units of which 16 will be townhouse units and 288 will be garden style
units. A commercial building is also proposed. The developer has also created community open space preserved two
38Source page 55
historic buildings built by Paul Revere. The Town has acquired the open space. A restaurant is planned for the Rolling Mill
Building and a museum is planned for the Revere Barn property.
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
Acorn Estates Residential Development Spring 2018 $4,275,000
Future/In-Progress Developments
Name Description Anticipated Completion Anticipated Costs
Royall Development Hotel/Restaurant Summer 2020 $19,200,000
Stillwater Estates Residentail Development On-going 17,100,000
Paul Revere Heritage Site Residential Development On-going 8,225,000
Yorkshire Estates Residential Development On-going 6,949,000
Cardinal’s Corner (Larkin Ct.) Residential Development On-going 4,131,000
Connor’s Wayside (Turnpike St.)Residential Development On-going 4,115,000
Indian Way Residential Development On-going 2,250,000
TOTAL $61,970,000
Principal Employers
The following are the principal employers, other than the Town itself, located in the Town:
Nature of Approximate
Company Business Current Employees
Dunkin Brands, Inc. Food and Beverages (1) 633
Computershare Operations Center/Transfer Agents 540
Meditech Hospital Software 504
Destination XL Group Retail/Wholesale 446
FIS Global Financial Services 350
Stoneridge Control Devices Automotive Engineering 255
Boston Mutual Insurance Insurance Sales and Service 229
Pappas Rehabilitation Hospital Pediatric Hospital 220
Gray, Gray and Gray LLP Accounting 107
Bank of Canton Banking 104
__________________
Source: The individual corporations as of February 2020.
(1) Corporate Headquarters.
39Source page 56
Principal Industries (1)
Calendar Year Average
Employment by Industry 2018 2017 2016 2015 2014
Construction & Natural Resources 3,547 3,012 3,088 2,644 2,519
Manufacturing 1,708 1,930 1,828 1,753 1,668
Trade, Transportation & Utilities 3,439 4,143 4,435 4,349 4,347
Financial Activities 1,994 2,083 2,157 2,198 1,960
Professional & Business Services 5,164 5,394 5,359 5,182 5,743
Education & Health Services 2,987 2,842 2,670 2,560 2,587
Leisure & Hospitality 1,224 1,278 1,251 1,249 1,178
Information & Other Services 1,912 1,582 1,471 1,556 1,665
Public Administration 484 470 477 489 500
Total Employment 22,465 22,735 22,746 21,981 22,174
Number of Establishments 1,101 1,101 1,093 1,077 1,062
Total Annual Wage (000) $1,803,568 $1,746,057 $1,723,686 $1,644,378 $1,562,834
Average Weekly Wage $1,544 $1,477 $1,457 $1,439 $1,355
_________________________
(1) Source: Massachusetts Executive Office of Labor & Workforce Development.
Building Permits
Calendar
Year Number Estimated Value
2019 1,249 $82,112,913
2018 1,196 138,008,575 (1)
2017 1,093 81,930,003
2016 1,271 61,956,390
2015 1,514 75,556,729
2014 1,132 48,949,775
________________
(1) Includes $74,892,177 for the Blue Hills Regional School Project.
OTHER DATA
Employment (1)
Unemployment Rate
Calendar Year (2) Labor Force Employment Town County State US
2019 (December) 12,943 12,674 2.1 2.0 2.4 3.4
2018 12,752 12,366 3.0 3.0 3.3 3.9
2017 12,344 11,904 3.6 3.4 3.8 4.4
2016 12,032 11,629 3.3 3.4 3.9 4.9
2015 11,715 11,227 4.2 4.2 4.8 5.3
_________________________
(1) Source: Massachusetts Executive Office of Labor & Workforce Development.
(2) Full year averages except for 2019 which is for the month indicated.
Note: See “COVID 19” herein regarding the potential effects of the current pandemic on employment levels which are not yet reflected in
the figures above.
40Source page 57
Population (1)
Canton Norfolk County Massachusetts
% % %
Year Number Change Number Change Number Change
2018 estimate 23,629 9.6 705,388 5.1 6,902,149 5.4
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 0.0 606,587 0.0 5,737,037 0.0
_________________________
(1) Source: U.S. Department of Commerce for actuals and estimates.
Population Density (1)
Canton Norfolk County Massachusetts
Year Number Density Number Density Number Density
2018 estimate 23,629 1,247.7 705,388 1,765.2 6,902,149 880.6
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 By Age (1)
Canton Norfolk County Massachusetts
Age Number Percent Number Percent Number Percent
Under 5 Years 1,320 5.7 37,527 5.4 362,681 5.3
5 Years to 19 Years 4,194 18.1 129,128 18.5 1,226,228 18.0
20 Years to 64 Years 13,412 58.0 418,194 59.9 4,163,060 61.0
65 Years and Over 4,208 18.2 113,400 16.2 1,078,224 15.8
Total 23,134 100.0 698,249 100.0 6,830,193 100.0
Median Age 42.0 40.9 39.4
Median Age (2000) 39.8 38.1 36.5
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates.
Per Capita Income Levels (1)
Canton Norfolk County Massachusetts
% % %
Year Amount Change Amount Change Amount Change
2018 5-year estimates $53,620 22.7 $52,036 0.0 $41,794 25.9
2009 43,709 30.4 0 0.0 33,203 27.9
1999 33,510 52.1 32,484 54.0 25,952 50.7
1989 22,035 149.9 21,091 138.9 17,224 131.0
% Below Poverty Level (2018 5-year
estimates) 5.1 6.5 10.8
_________________________
(1) Source: U.S. Department of Commerce.
41Source page 58
Family Income Distribution (1)
Canton Norfolk County Massachusetts
Income for Families Families Percent Families Percent Families Percent
Less than $10,000 86 1.4 3,175 1.8 53,279 3.2
10,000 - 24,999 222 3.7 7,227 4.1 111,203 6.7
25,000 - 49,999 300 5.0 15,148 8.7 230,707 14.0
50,000 - 74,999 611 10.2 19,562 11.2 229,597 13.9
75,000 - 99,999 787 13.1 20,301 11.6 211,355 12.8
100,000 - 149,999 1,243 20.7 39,286 22.5 347,464 21.0
150,000 or more 2,742 45.8 69,717 40.0 468,203 28.3
Total 5,991 100.0 174,416 100.0 1,651,808 100.0
Median Income $138,586 $125,259 $98,625
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates.
Household Income Distribution (1)
Canton Norfolk County Massachusetts
Income for Households Households Percent Households Percent Households Percent
Less than $10,000 312 3.5 9,775 3.7 141,665 5.4
10,000 - 24,999 734 8.1 22,685 8.6 313,101 12.0
25,000 - 49,999 840 9.3 33,937 12.9 432,495 16.6
50,000 - 74,999 1,260 14.0 34,547 13.1 382,288 14.7
75,000 - 99,999 1,171 13.0 31,417 11.9 311,620 12.0
100,000 - 149,999 1,666 18.5 51,555 19.6 461,850 17.8
150,000 or more 3,038 33.7 79,635 30.2 558,895 21.5
Total 9,021 100.0 263,551 100.0 2,601,914 100.0
Median Income $105,371 $99,511 $77,378
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates.
Value Distribution Of Specified Owner-Occupied Housing Units (1)
Canton Norfolk County Massachusetts
Units Number Percent Number Percent Number Percent
Less than $100,000 109 1.6 3,647 2.0 54,909 3.4
100,000 - 199,999 320 4.7 5,874 3.2 189,404 11.7
200,000 - 299,999 509 7.4 24,217 13.3 337,647 20.8
300,000 - 499,999 2,664 38.9 73,519 40.3 577,836 35.6
500,000 - 999,999 2,972 43.5 57,869 31.7 375,842 23.2
1,000,000 or more 266 3.9 17,187 9.4 85,415 5.3
Total 6,840 100.0 182,313 100.0 1,621,053 100.0
Median Value $486,400 $452,500 $366,800
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates.
42Source page 59
Age Distribution Of Housing Units (1)
Canton Norfolk County Massachusetts
Year Built Number Percent Number Percent Number Percent
2000 or later 1,184 12.7 28,679 10.3 279,855 9.7
1980 to 1999 2,667 28.7 50,848 18.3 533,731 18.5
1940 to 1979 3,914 42.0 122,961 44.3 1,116,115 38.7
1939 or Earlier 1,543 16.6 74,787 27.0 953,038 33.1
Total 9,308 100.0 277,275 100.0 2,882,739 100.0
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates.
Housing Unit Inventory (1)
Canton Norfolk County Massachusetts
Units in Structure Number Percent Number Percent Number Percent
1, Detached 5,728 61.5 161,428 58.2 1,501,300 52.1
1, Attached 623 6.7 15,395 5.6 154,655 5.4
2 to 4 688 7.4 34,336 12.4 596,088 20.7
5 to 9 844 9.1 14,664 5.3 167,997 5.8
10 to 19 704 7.6 12,471 4.5 124,484 4.3
20 or More 699 7.5 37,930 13.7 313,788 10.9
Mobile Home, Trailer, Other 22 0.2 1,051 0.4 24,427 0.8
Total 9,308 100.0 277,275 100.0 2,882,739 100.0
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates.
Educational Attainment (1)
Canton Norfolk County Massachusetts
Years of School Completed Number Percent Number Percent Number Percent
Less than 9th Grade 291 1.7 12,826 2.6 214,205 4.5
9th to 12th Grade, No Diploma 350 2.1 17,077 3.5 240,155 5.1
High School Graduate 2,732 16.4 95,171 19.5 1,150,846 24.2
Some College, No Degree 2,454 14.8 68,162 14.0 740,784 15.6
Associate's Degree 1,514 9.1 36,608 7.5 365,103 7.7
Bachelor's Degree 5,018 30.2 139,580 28.6 1,128,877 23.8
Graduate or Professional Degree 4,276 25.7 119,188 24.4 908,825 19.1
Total 16,635 100.0 488,612 100.0 4,748,795 100.0
High School Graduate or Higher 15,994 96.1 458,709 93.9 4,294,435 90.4
Bachelor's Degree or Higher 9,294 55.9 258,768 53.0 2,037,702 42.9
_________________________
(1) Source: U.S. Department of Commerce. 2018 5-year estimates
43Source page 60
Public School Enrollments (1)
Actual Projected
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Pre K – 4 1,308 1,347 1,321 1,291 1,329 1,301
Grades 5 - 8 1,065 1,027 1,055 1,015 1,023 1,040
Grades 9 - 12 943 954 982 971 984 959
982Ungraded 59 51 45 52 61 60
Total 3,375 3,379 3,353 3,329 3,397 3,360
___________________
(1) Source: Massachusetts Dept. of Education - As of October 1, each school year.
School Facilities
School Capacity March 2020 Enrollment
Canton High School 1,000 984
Galvin Middle School 800 778
Hansen Elementary 544 496
Kennedy Elementary 528 505
Luce Elementary 584 477
Rodman Pre-School 80 96
3,536 3,336
The Town is currently conducting studies to assess capacity needs.
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/ William R. Scollins
Finance Director/Treasurer
Dated: April 30, 2020
44Source page 61
APPENDIX A
The following Balance Sheets for fiscal years ending June 30, 2016 through 2019, and the Comparative Statements of
Revenues, Expenditures and Changes in Fund Balances for fiscal years ending June 30, 2015 through 2019, have been taken
from the audited financial statements of the Town.
The Town engaged Roselli, Clark & Associates, Certified Public Accountants, to audit the accounts for the Town for the
years ending June 30, 2015 through 2019. The June 30, 2019 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, 2018. 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. The Town has applied for fiscal 2019 as well.
A-1Source page 62
TOWN OF CANTON
MASSACHUSETTS
GENERAL FUND
Balance Sheet (1)
June 30,
2019 2018 2017 2016
Assets
Cash and Cash Equivalents $17,572,420 $17,212,144 $17,575,183 $16,304,708
Investments 7,788,023 7,150,877 6,402,782 3,982,225
Receivables, net of uncollectibles:
Real Estate and Personal Property Taxes 158,381 350,494 498,497 546,198
Tax Liens and Foreclosures 1,309,397 1,311,710 1,307,690 1,260,489
Motor Vehicle Excise Taxes 390,130 379,470 375,283 299,187
Intergovernmental 1,500,585 1,341,647 1,740,116 2,125,785
Departmental and other -- -- -- 11,239
Due from Other Funds 668,748 854,784 -- 699,024
Other Assets 1,609 15,376 7,252 1,715,366
Total Assets $29,389,293 $28,616,502 $27,906,803 $26,944,221
Liabilities and Fund Balances
Liabilities
Warrants Payable $1,381,801 $ 1,334,850 $ 1,384,589 $ 1,322,313
Accrued Payroll and Withholdings 4,114,932 3,709,311 3,701,991 3,531,574
Tax Refunds Payable 968,747 470,796 1,170,000 2,550,000
Other Liabilities 35,693 39,489 39,489 39,489
Deferred Revenues -- -- -- --
Total Liabilities 6,501,173 5,554,446 6,296,069 7,443,376
Deferred Inflows of Resources
Unavailable Revenues- Property Taxes 1,311,503 1,459,388 1,559,874 1,369,195
Unavailable Revenues – Motor Vehicle Excis 390,130 375,283 299,187
Unavailable Revenues – Intergovernmental 929,952 1,341,647 1,740,116 2,125,785
Unavailable Revenues – Other -- -- -- 11,239
Total Deferred Inflows of Resources 2,631,585 3,180,505 3,675,273 3,805,406
Fund Balances
Nonspendable 1,609 15,376 7,252 --
Restricted 110,803 15,918 -- --
Committed 976,324 1,026,447 923,152 886,722
Assigned 1,680,982 1,599,273 876,862 1,846,942
Unassigned 17,486,817 17,224,537 16,128,195 12,961,771
Total Fund Balances 20,256,535 19,881,551 17,935,461 15,695,439
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $29,389,293 $28,616,502 $27,906,803 $26,944,221
_____________________
(1) Excerpts from audited financial statements prepared by Roselli, Clark & Associates, Certified Public Accountants.
A-2Source page 63
TOWN OF CANTON
MASSACHUSETTS
Combined Statement of Revenues, Expenditures and Changes in Fund Balances (1)
General Fund
(000 omitted)
Revenues 2019 2018 2017 2016 2015
Property Taxes $76,035 $73,672 $71,397 $66,702 $63,274
Payment in Lieu of Taxes 243 237 231 225 222
Tax Liens 221 297 173 147 352
Excises 4,903 4,703 4,505 4,556 4,120
Hotel and Meals Taxes 618 604 593 601 582
Penalties and Interest 284 365 315 254 311
Departmental and Other 1,560 1,086 973 1,240 1,102
Licenses and Permits 1,258 1,235 1,142 1,035 1,282
Intergovernmental - State 18,502 18,164 16,703 14,192 11,910
Fines and Forfeits 87 115 93 120 113
Earnings on Investments 660 402 268 168 142
MSBA Capital Grant 0 0 0 0 0
Total Revenues 104,370 100,881 96,394 89,240 83,410
Expenditures
General Government 4,269 4,081 3,832 3,979 3,806
Public Safety 11,928 11,446 10,799 10,352 10,038
Education 44,481 42,052 40,294 37,781 36,052
Public Works 5,801 5,706 5,965 4,809 5,024
Human Services 977 967 1,146 1,003 826
Culture and Recreation 2,192 2,045 1,987 1,918 1,698
Debt Service 4,661 4,868 4,792 4,993 4,986
Intergovernmental Charges 1,231 1,015 996 927 945
Employee Benefits 13,014 12,964 12,017 11,384 11,500
Pension Benefits 14,173 13,538 12,480 9,802 7,321
Total Expenditures 102,728 98,683 94,308 86,949 82,196
Excess (Deficiency) of Revenues
Over Expenditures 1,642 2,198 2,086 2,292 1,215
Other Financing Sources (Uses)
Premium from Issuance of Debt 84 38 44 11 109
Proceeds from Refunding Bonds 1,398 414 1,596 515 0
Payments of Refunded Bonds (1,482) (446) (1,619) (526) 0
Operating Transfers - In 1,477 1,286 1,077 1,648 1,026
Operating Transfers - Out (2,745) (1,544) (944) (833) (830)
Total Other Financing Sources
(Uses) (1,268) (252) 154 815 305
Net Change in Fund Balance 375 1,946 2,240 3,107 1,520
Fund Balance – Beginning 19,882 17,935 15,695 12,589 11,068
Fund Balance - Ending $ 20,257 $ 19,882 $17,935 $15,695 $12,589
____________________
(1) Excerpts from audited financial statements of the Town. Totals may not add due to rounding.
A-3Source page 64
APPENDIX B
There follows in this Appendix the audited financial statements of the Town of Canton, Massachusetts, as of June 30, 2019
prepared by Roselli, Clark & Associates, Certified Public Accountants.
The attached report speaks only as of its date, and only to the matters expressly set forth therein. The auditors have not
been engaged to review this Official Statement or to perform audit procedures regarding the post-audit period, nor have
the auditors been requested to give their consent to the inclusion of their report in this Report. Except as stated in their
report, the auditors have not been engaged to verify the financial information set out in this Report and are not passing
upon and do not assume responsibility for the sufficiency, accuracy or completeness of the financial information presented.
B-1Source page 65
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2019Source page 66
On the cover and below: Using Community Preservation funds the Town purchased seven acres of land located close to Canton Center for open space and recreational purposes and named it the Paul Revere Heritage Site. Photo on the cover taken by Eric Levin
Source page 67
Town of Canton, Massachusetts
Comprehensive Annual Financial Report
For the Fiscal Year
July 1, 2018 through June 30, 2019
Prepared by the Finance DepartmentSource page 68
This page intentionally left blank.
Source page 69
Introductory Section With funds provided by a Community Preservation grant, the newly renovated Devoll Playground is the home of the Recreation Department’s free summer playground program.
Source page 70
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Source page 71
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
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 ....................................................................................................... 17-19
Management’s Discussion and Analysis ....................................................................................... 21-32
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 ....................................................................................... 45-78
Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability ............................... 80
Schedule of the Town’s Contribution to Pension Plan .............................................................. 80
Schedule of the Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teachers’ Retirement System… ................................................................. .81
Schedule of Changes in Net OPEB Liability and Related Ratios……………………………...82
Schedule of Contributions to OPEB Plan……………………………………………………....83
Schedule of Investment returns – OPEB Plan……………………………………………….....83
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and
Actual – General Fund .................................................................................................. 84-86
Notes to Required Supplementary Information .................................................................... 87-88
iSource page 72
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page(s)
Combining Statements:
Nonmajor Governmental Funds ............................................................................................ 90-91
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 92-94
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ........................................................... 96-98
Internal Service Funds ........................................................................................................... 100
Combining Statement of Net Position – Internal Service Funds ..................................... 102
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ............................................................................................ .103
Combining Statement of Cash Flows – Internal Service Funds ...................................... .104
Fiduciary Funds ..................................................................................................................... .106
Statement of Changes in Assets and Liabilities – Agency Fund .................................... .107
STATISTICAL SECTION
Narrative ..................................................................................................................................... 111
Net Position by Component – Last Ten Fiscal Years...................................................................... 112
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 113-114
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 115
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 116
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years............................................................................. 117
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 118
Property Tax Levies and Collections – Last Ten Fiscal Years........................................................ 119
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 120
Ratios of General Bonded Debt Outstanding .................................................................................. 121
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 122
Direct and Overlapping Governmental Activities Debt .................................................................. 123
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 124
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 125
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 126
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 127
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 128
iiSource page 73
Letter of Transmittal
December 15, 2019
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 fourteenth consecutive
Comprehensive Annual Financial Report (CAFR). The report is for the fiscal year ended June 30, 2019,
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.
Town of Canton, Massachusetts Page 1 of 130 Comprehensive Annual Financial ReportSource page 74
The Town’s financial statements have been audited by Roselli, Clark and Associates, a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance on an
annual basis that the financial statements of the Town are free of material misstatement. The independent
audit involved (1) examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; (2) assessing the accounting principles used and significant estimates made by
management; and (3) 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, 2019 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 Title 2 of the US “Code of Federal Regulations” (CFR) Part 200, “Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”.
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.
Town of Canton, Massachusetts Page 2 of 130 Comprehensive Annual Financial ReportSource page 75
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 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.
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.
Town of Canton, Massachusetts Page 3 of 130 Comprehensive Annual Financial ReportSource page 76
Almost a decade 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 has allowed 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 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 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 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. Recently the
Town of Canton, Massachusetts Page 4 of 130 Comprehensive Annual Financial ReportSource page 77
construction by Avalon Development of additional affordable housing on Randolph Street has further
increased the Town’s 40B compliance.
The Town’s commitment to sound economic development is further demonstrated by creating
partnerships with MAPC and the 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.
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.
In addition, the Town
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 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
Town of Canton, Massachusetts Page 5 of 130 Comprehensive Annual Financial ReportSource page 78
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
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.
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. The
Company’s 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.
Brightview Canton recently opened its community of 160 apartment homes for seniors which includes
independent living, dedicated assisted living and a specialized program and environment for people living
with Alzheimer’s and other forms of dementia.
This added to existing residential developments such as Windsor Woods, Indian Woods, Pequit View and
Blue Hill Commons; and provide a nice compliment to commercial developments such as Dunkin Brands
with their worldwide corporate headquarters along with other top Canton companies such as Meditech,
Boston Mutual, Computershare, LoJack and Pepsi.
Town of Canton, Massachusetts Page 6 of 130 Comprehensive Annual Financial ReportSource page 79
There has been increased activity on the development side in the last twelve months. This includes the
sale and redevelopment of the old Reebok site. In the fall of 2017, Reebok moved to Boston from its’
decades old home in Canton. Spear Street Capital, an
owner and operator of distinctive office properties,
became the new owner.
The world-class campus includes a 518,000 square foot
main building along with three support buildings, two
parking structures, a childcare center and a host of fitness
amenities, including an Olympic track, basketball courts,
tennis courts and a softball field.
In addition, the following private developments were completed during fiscal year or are
nearing completion:
Development projects recently completed or near completion
Name Description Completion Amount
Royall Development Hotel/restaurant Summer 2020 19,200,000
Paul Revere Heritage Site Residential development On-going 8,225,000
$ 27,425,000
In 2012 Town entered into a long-term lease of its capped landfill to be used by a private entity to install
solar panels on fifteen acres of the site at no cost to Canton. The lease provides the Town with guaranteed
payments of $20,000 per acre, per year, increasing annually by 2.5%, while allowing the Town the ability
to purchase all the electricity generated by this 5.6-megawatt facility at a substantial savings.
The Pine Street Solar Facility went online August 15, 2012 (one of the largest in the Northeast) and has
produced the following financial benefits:
• The 43 million kwh of solar electricity produced by this facility since its inception have resulted
in $8.5 million of net metering credits which exceeded the $7.4 million paid for generating this
solar power.
• The Town has received lease payments totaling $2.2 million over the last 7 years.
• Overall, the Town has received an annual financial benefit from this solar facility which has
helped in balancing the Town’s budget along with increasing free cash reserves as follows:
Fiscal Year 2013 - $303,519
Fiscal Year 2014 - $413,585
Fiscal Year 2015 - $498,069
Fiscal Year 2016 - $556,205
Fiscal Year 2017 - $461,428
Fiscal Year 2018 - $507,845
Fiscal Year 2019 - $512,303
Town of Canton, Massachusetts Page 7 of 130 Comprehensive Annual Financial ReportSource page 80
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.
The Town’s available reserves on a GAAP basis represent the amount in unassigned fund balance. As
discussed previously, the Town’s reserves have been increasing on an annual basis since the stabilization
of the recession in 2011. This has been a direct result of the initiatives implemented by management as
discussed in the previous paragraph.
These strong reserve levels, when
combined with the Town’s strong
management practices, desirable location
in a strong metropolitan statistical area,
assessed valuations and strong wealth
factors directly contributed to an upgrade
in the Town’s bond rating to ‘AAA’.
This is the highest investment grade
possible. The override and the resulting
revenue flexibility to restore lost services
and stabilize budgets in future fiscal years
were cited as prominent factors in the
upgrade. The Town is committed to
maintaining its reserves at a level expected from communities that engender the highest bond rating.
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.
Town of Canton, Massachusetts Page 8 of 130 Comprehensive Annual Financial Report