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Fiscal Year 2024 Annual Comprehensive Financial Report pdf file
Saved text from 135 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
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TOWN OF CANTON, MASSACHUSETTS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year July 1, 2023 – June 30, 2024
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On the cover: The Statue of the Civil War Soldier gifted to the Town of Canton in 1890 by Elijah Morse a local philanthropist, member of the Massachusetts House of Representatives and Civil War veteran. The statue which stood in front of Memorial Hall for many years, was vandalized in 1968 and brought inside for safe keeping where it remained for nearly 50 years. In 2014 it was fully restored and placed back in front of Memorial Hall. Photo credits: Cover – Canton Community TV Above: The Pequitside Farm Stock Barn, also known as the Draper Cow Barn, was built circa 1885 and was originally used as a cattle barn. The barn is in the Single Style and topped with a glazed cupola which still has the original weathervane stamped with the initials CND for Charles N. Draper, the original owner of Pequitside Farm. The Town has owned the property since 1971. Photo Credit: Courtesy of the Town of Canton website
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Town of Canton, Massachusetts
Annual Comprehensive Financial Report
For the Fiscal Year
July 1, 2023 through June 30, 2024
Prepared by the Finance DepartmentSource page 4
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TOWN OF CANTON, MASSACHUSETTS
ANNUAL COMPRHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1-11
Certificate of Achievement for Excellence in Financial Reporting.................................................. 13
Organizational Chart Town .............................................................................................................. 14
Organizational Chart Schools ........................................................................................................... 15
Principal Town Officials .................................................................................................................. 16
FINANCIAL SECTION
Independent Auditor’s Report ....................................................................................................... 19-21
Management’s Discussion and Analysis ....................................................................................... 23-33
Basic Financial Statements:
Statement of Net Position .......................................................................................................... 36
Statement of Activities ............................................................................................................... 37
Balance Sheet – Governmental Funds ....................................................................................... 38
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position ............................................................................................ 39
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................................................... 40
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ...................................... 41
Statement of Net Position – Proprietary Funds .......................................................................... 42
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds.............. 43
Statement of Cash Flows – Proprietary Funds ........................................................................... 44
Statement of Fiduciary Net Position .......................................................................................... 45
Statement of Changes in Fiduciary Net Position ....................................................................... 46
Notes to Basic Financial Statements ....................................................................................... 47-79
Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability ............................... 82
Schedule of the Town’s Contribution to Pension Plan .............................................................. 82
Schedule of the Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teachers’ Retirement System ...................................................................... 83
Schedule of Changes in Net OPEB Liability and Related Ratios .............................................. 84
Schedule of Contributions to OPEB Plan .................................................................................. 84
Schedule of Investment Returns – OPEB Plan .......................................................................... 85
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and6
Actual – General Fund .................................................................................................... 86-88
Notes to Required Supplementary Information ...................................................................... 89-90Source page 6
TOWN OF CANTON, MASSACHUSETTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
Page(s)
FINANCIAL SECTION (continued)
Combining Statements:
Nonmajor Governmental Funds ............................................................................................ 92-93
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 94-96
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ........................................................... 98-100
Internal Service Funds .............................................................................................................. 101
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
STATISTICAL SECTION
Narrative .......................................................................................................................................... 107
Net Position by Component – Last Ten Fiscal Years...................................................................... 108
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 109-110
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 111
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 112
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years ............................................................................. 113
Direct Property Tax Rates – Last Ten Fiscal Years ........................................................................ 114
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 115
Property Tax Levies and Collections – Last Ten Fiscal Years........................................................ 116
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 117
Ratios of General Bonded Debt Outstanding .................................................................................. 118
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 119
Direct and Overlapping Governmental Activities Debt .................................................................. 120
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 121
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 122
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 123
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 124
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 125Source page 7
INTRODUCTORY SECTION Above: A recently purchased zero emission electric vehicle for use by the Public Works Department. Part of Canton’s aggressive movement to align itself with the Commonwealth which in a broader and more significant manner will lead to net zero by 2050.
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Town of Canton, Massachusetts
OFFICE OF THE SELECT BOARD
SELECT BOARD POLICE COMMISSIONERS
UPPER MEMORIAL HALL BOARD OF PUBLIC WORKS
801 WASHINGTON STREET LICENSING BOARD
TEL: (781) 821-5000 CANTON MA 02021
FAX: (781) 821-2935 TOWN ADMINISTRATOR
Email: townadmin@town.canton.ma.us CHARLES E. DOODY
Letter of Transmittal
December 20, 2024
Honorable Select Board and Citizens of the Town of Canton, Massachusetts:
I am pleased to acknowledge that the Town of Canton has completed its nineteenth consecutive Annual
Comprehensive Financial Report (ACFR). The report is for the fiscal year ended June 30, 2024, 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 ACFR.
This letter of transmittal and the management’s discussion and analysis, located in the financial section
of the ACFR, provides a comprehensive financial overview of the Town and ensures that the financial
and general operations of Town government remain open for easy viewing.
The ACFR 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 ACFR
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 127 Annual Comprehensive Financial ReportSource page 10
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, 2024 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 23,000 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 127 Annual Comprehensive Financial ReportSource page 11
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.
In August 2020, the Massachusetts legislature passed enabling legislation creating the Revere & Son
Heritage Trust Corporation, a quasi-public/private corporation. The mission of the Corporation is to
establish an open-to-the-public Paul Revere Museum (PRM) of Discovery and Innovation and Paul
Revere Heritage site. The PRM was developed on the grounds of the site, which is a nine-acre park along
the Neponset River created with trails connecting two train stations, and adjacent to 272 new units of
housing. A new bridge with traffic signal provides additional access to the site from Neponset street.
The site features waterfalls, a mill pond, walkways with interpretive signage, and two 19th century
buildings built by Revere and his family - the Copper Rolling Mill and the 174-year old Historic Horse
Barn. The Barn will be a unique museum for history, technology, and learning. The first floor of the
Copper Mill hosts a fine dining restaurant, Northern Spy, serving New England fare. The Second Floor
known as Copper Mill Hall, provides an attractive flexible use space for functions, meetings, and
historical displays
In 2022, the Town completed construction of the Earl Newhouse Waterfront across the street from
Pequitside Farm, a Town-owned 38-acre conservation and recreation area, and on the shore of the
Reservoir Pond. The project improvements include enhanced ADA accessibility to allow citizens to fully
utilize the site with an expanded trail system, paved parking, accessible picnic seating, kayak/car-top boat
launch, fishing platform, trash and recycling bins, education area, dog waste station, shade tree planting,
native plant landscaping, benches along trails, a bike rack and signage.
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.
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.
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Recently, the Town voted overwhelmingly to construct a brand-new middle school. The state-of-the art facility
will cost approximately $242 million with approximately $72 to $74 million to be received in the form of a grant
from the Massachusetts School Building Authority. The new school will be constructed on the same site as the
existing middle school. The middle school will have a grade expansion, changing from the current grade
configuration of 6 thru 8, to include the 5th grade. This reconfiguration will provide needed relief to all of the
Town’s three elementary schools, which are currently configured for grades 1 through 5. In addition, the new
middle school will have two full gymnasiums, multiple athletic turf fields with lighting and an 850-seat
auditorium. The existing middle school will be utilized up until the new school opening in the Fall of 2028.
Geothermal heating and cooling is planned for all of the public spaces of the building, which will result in the
building being “net-zero-carbon ready”. The educational and community impact of the new Galvin Middle
School will be both profound and transformational.
An elected, five-member School Committee appoints a School Superintendent who administers the public
school system of the Town. School Committee members, like the Select Board, are elected at-large to
three-year staggered terms.
About 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 appeal 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 Select Board, Town Administrator, and Open Town Meeting form of
government. The five elected Select Board members make policy decisions, and the Town Administrator
is responsible for carrying out the policies of the Select Board and for managing the day-to-day operations
of the Town. The policies and procedures of the Select Board 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 for the General Fund 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
Town of Canton, Massachusetts Page 4 of 127 Annual Comprehensive Financial ReportSource page 13
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 Select Board 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
construction by Avalon Development of additional affordable housing on Randolph Street has further
increased the Town’s 40B compliance. The Town, a few years ago, voted to establish an Affordable
Housing Trust in order to proactively protect and expand affordable housing units in the Town.
The Affordable Housing Trust is comprised of an 8-member Board of Trustees. The Board recently engaged the
services of JM Goldson LLC to update and complete the Town’s Housing Production Plan (HPP). The HPP is a
state recognized planning tool that, under certain circumstances, permits municipalities to influence the location,
type, and pace of affordable housing development. Canton’s HPP establishes a roadmap for both preservation
and production of affordable, mixed income and housing options in the community that is based upon broad
community input, a comprehensive housing needs assessment and an understanding of development constraints.
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 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 in 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.
Several years ago, the Town 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 re-zoning of the
Downtown.
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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 Select Board has
also designated a multi-disciplined group of volunteers who have completed a visioning process which
has led to a variety of re-zoning recommendations with a goal of improving the business climate and
enhance zoning flexibility to spur additional economic development potential along this vital commercial
roadway.
The Town was also a participant in a regional planning study to evaluate the effects of new growth in
both residential and commercial construction. The study’s focus was to identify growth related problems
such as transportation, infrastructure, environmental, and economic development issues. In addition, a
build-out analysis was completed to assist and improve public policy decision-making with regard to
growth and development related to educational planning. These studies have been coordinated with other
immediate area communities.
Canton Electricity Choice is a municipal electricity aggregation program, which is a type of group electricity
purchasing program for Canton residents and businesses. The program will launch in June. Through Canton
Electricity Choice, the Town will use the collective buying power of the community to provide affordable
renewable electricity options that give electricity customers more choice and control over the electricity they
buy. Canton joins nearly 170 other Massachusetts communities that have this type of electricity program.
Through the program, and as a result of a new supply contract with Constellation New Energy, Canton
customers will get more of their electricity from renewable sources for a price that is estimated to be lower than
Eversource’s current residential Basic Service price.
A few years ago 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 is a community of 160 apartment homes for seniors which includes independent
living, dedicated assisted living and a specialized program and environment for people living with
Town of Canton, Massachusetts Page 6 of 127 Annual Comprehensive Financial ReportSource page 15
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.
There has been increased activity on the development side in the last few years. This includes
the sale and redevelopment of the old Reebok site. In the fall of 2017, Reebok moved to Boston
from its’ decades old home in Canton. Spear Street Capital, an owner and operator of distinctive office
properties, became the new owner. In 2020 the property was sold to the newly formed entity of Tufts
Associated Health Maintenance Organization, Inc. (TAHMO), and since renamed Point32Health. This
new company is the result of a merger between Tufts Health and Harvard Pilgrim Health. Point32Health
consolidated all of its offices from three other towns to its new corporate headquarters in Canton.
Point32Health is a tax-exempt entity in the healthcare field. However, the Town negotiated a 30-year
payment in lieu of tax (PILOT) agreement with
Point32Health that provided for a $1.6 million PILOT in fiscal year 2022, increasing 3% annually.
Point32Health was attracted to this world-class campus that includes a 518,000 square foot main
building along with three support buildings, two parking structures, a childcare center and a host of
fitness amenities, including an Olympic track, basketball courts, tennis courts and a softball field.
Approximately 2,500 employees are headquartered at the new Point32Health corporate home in Canton.
In addition, the following private developments were completed in recent years, or are nearing
completion:
Development projects recently completed or near completion
Name Description Completion Amount
Royall Development Hotel/restaurant Completed 19,200,000
Cardinal's Corner Residential Development Completed 4,131,000
Connor's Wayside Residential Development Completed 4,115,000
Indian Way Residential Development Completed 2,250,000
Stillwater Estates Residential Development Completed 17,100,000
Top Golf Commercial/restaurant Completed 8,200,000
Paul Revere Heritage Site I Residential Development Completed 10,300,000
Paul Revere Heritage Site II Residential Development Completed 9,329,000
Paul Revere Heritage Site III Residential Development Completed 15,000,000
Trillium Brewing - Royall St Commercial Completed 3,500,000
Mariella Estates Commercial Completed 1,200,000
Canton Landing Commercial Completed 1,100,000
Paul Revere Heritage Site IV Residential Development On-going 16,695,000
20 Audborn Way Residential Development On-going 9,000,000
Yorkshire Estates Residential Development On-going 6,949,000
125 Shawmut Commercial On-going 2,300,000
$ 130,369,000
In 2012 the Town entered into a long-term lease of its capped landfill to be used by a private entity to
install solar panels on fifteen acres of the site at no cost to Canton. The lease provides the Town with
guaranteed payments of $20,000 per acre, per year, increasing annually by 2.5%, while allowing the
Town the ability to purchase all the electricity generated by this 5.6-megawatt facility at a substantial
savings.
Town of Canton, Massachusetts Page 7 of 127 Annual Comprehensive Financial ReportSource page 16
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 74.99 million kwh of solar electricity produced by this facility since its inception have resulted in
$16.7 million of net metering credits which exceeded the $14.5 million paid for generating this solar
power.
• The Town has received lease payments totaling $4.22 million over the last 12 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; total savings through fiscal year
2024 are over $6.40 million and currently exceed $533,000 per year.
In summary, Town leaders recognize the importance of maintaining a stable tax situation for its residents.
Development on the commercial side helps accomplish this goal and the Town continues to seek out the
means to maintain vigilance in this area.
Property Taxes The growth of the Town’s main source of revenues, property taxes, is capped by
Proposition 2 ½ and can only be overridden through a ballot by the voters. While revenue increases have
been limited in recent years, fixed costs, including health insurance and pension costs, have increased
more proportionally. As a result, balancing the annual budget is a challenge. The Town attempts to
mitigate this impact by conservatively forecasting revenues thus creating free cash in the subsequent year
and keeping expenditures in check.
In March 2021, the Federal Government passed the American Plan Rescue Act (ARPA) which provides
stimulus payments to State and local government to assist recovery from the pandemic. The Town
expects to receive almost $7.0 million from this program by the end of fiscal 2024. The grant proceeds
are required to be obligated by December 31, 2024 and spent by December 31, 2026.
Projects being supported with ARPA funds include: $1.5 million towards the Washington Street renewal,
including new pavement, sidewalks and granite curbing for this one mile stretch of road; $1.1 million towards a
granular activated carbon (GAC) facility at the Moran Water Treatment Plant in efforts to filter PFAS
contaminants; $625 thousand towards unit ventilator replacements at two elementary schools; $555 thousand for
employee Premium Pay for those that continued to work on site during COVID; $475 thousand in supplemental
funding for the high school field bleacher replacement project; $400 thousand towards the Paul Revere Museum
design project; $350 thousand for sewer pump station remote monitoring equipment; $270 thousand towards the
Elm Street Culvert and Retaining Wall project; $230 thousand to replace a fire department brush truck; $204
thousand for GAC filter replacements at the Sullivan Water Treatment Plant; $165 thousand for cyber security
equipment; $158 thousand for four standby electric generator upgrades at four facilities; $148 thousand towards
the downtown crosswalk rehabilitation project; $140 thousand towards walkway and parking lot reconstruction
at the Hemenway Canton Housing Authority residences; $100 thousand for network security licensing; $100
thousand for Board of Health nursing and equipment; $97 thousand for a Chamber of Commerce managed small
business website grant program; $85K to replace 30 defibrillators at several town locations; and $275 thousand
for 15 other small projects.
Town of Canton, Massachusetts Page 8 of 127 Annual Comprehensive Financial ReportSource page 17
The Town’s available reserves on a GAAP basis represent the amount in unassigned fund balance. As discussed
previously, the Town’s reserves have been increasing on an annual basis since the stabilization of the great
recession in 2011.
These strong reserve levels, when combined with the
Town’s strong management practices, desirable location in
a strong metropolitan statistical area, assessed valuations
and strong wealth factors directly contributed to an
upgrade in the Town’s bond rating to ‘AAA’. This is the
highest investment grade possible. The override and the
resulting revenue flexibility to restore lost services and
stabilize budgets in future fiscal years were cited as
prominent factors in the upgrade. The Town is committed
to maintaining its reserves at a level expected from
communities that engender the highest bond rating.
Long-term Financial Planning
Many years ago, the Town implemented a policy of preparing rolling projections. The Town believes
this will provide better insight when preparing annual budgets and will also alert the Town to any
potential budgeting issues far ahead of when these situations become real issues.
The following represents the Town’s summarized budgets for each of the next five years:
2025 2026 2027 2028 2029
Revenues and Other Sources
Real Estate and Personal Property Taxes $ 97,596,491 $ 100,873,391 $ 104,233,371 $ 109,581,615 $ 113,168,370
State Aid 11,688,066 11,802,425 11,917,928 12,034,585 12,152,409
Local Receipts 10,163,307 10,714,589 10,767,154 10,821,033 10,876,259
Transfers and Other Sources 11,517,357 6,068,208 6,067,955 6,148,429 6,231,711
Total Revenues 130,965,221 129,458,613 132,986,408 138,585,662 142,428,749
Expenditures and Other Uses
Education Budget 56,038,598 57,468,199 59,181,721 61,746,713 63,528,667
Municipal Budget 27,940,736 28,841,266 29,924,647 31,345,756 32,378,424
Fixed Costs 35,767,283 36,419,019 38,138,147 39,151,981 40,062,279
State and County Charges 1,559,466 1,598,453 1,638,414 1,679,374 1,721,359
Capital costs and special appropriations 9,659,138 5,131,676 4,103,479 4,661,838 4,738,020
Total Expenditures 130,965,221 129,458,613 132,986,408 138,585,662 142,428,749
Surplus/(Deficit) $ - $ - $ - $ - $ -
Capital Improvements and Financing
The Town continues to invest in infrastructure improvements such as roads, sewers, and water supply
facilities, as well as various municipal and school facility upgrades. These include: Town Hall, Library,
Public Safety facilities, Public Works, Recreational facilities and School building improvement projects.
Recently, the Town completed construction on a proposed $11 million ice rink as well as $6 million in
renovations to the Town pool.
Town of Canton, Massachusetts Page 9 of 127 Annual Comprehensive Financial ReportSource page 18
In addition, the Town has completed the construction of two new water filtration plants. These water
filtration plants will provide state of the art water filtration capabilities and allow for the use of local
source water to reduce operating costs, improve water availability (including redundancy) and filtrate
water for customers with the most technologically advanced system available today.
The Town also completed renovations of a former Knights of Columbus Hall and turned it into the new
Senior Center located at 500 Pleasant Street to address the growing, aging population in need of expanded
and updated senior services.
The Shepard Pond dam which was classified by the state as being a Significant Hazard Dam in poor
condition was in need of serious repairs. To help fund this repair project, the Town received a grant award
of $665,000 from the Commonwealth and a $335,000 low interest loan from the Executive Office of
Environmental Affairs.
The former St. Gerard Majella Catholic Parish closed in the summer of 2021 and was subsequently acquired by
the Town of Canton. The voters of Canton approved this purchase via a special town meeting, with the vision
that this could become an asset to the public realm and delivery of Town services. The nine-acre property
includes a 37,000 square foot church, a 4,000 square foot rectory, 220 parking spaces, and wooded upland open
space. The only current Town uses of the property are as a polling location, storage, construction staging areas,
and the Canton Food Pantry, which occupies part of the former church’s basement. The Town appointed a St.
Gerard’s Reuse Committee in 2022. The Committee was charged with leading public dialogue and gathering
feedback about potential reuses and priorities. The leading suggestions favor a community center, which would
incorporate gathering space, recreation, and programming for both youth and seniors. It is likely that the Town
would move certain municipal departments that directly link to this concept into these buildings including but
not limited to the Council on Aging, Department of Elder and Human Services, and Veterans Services. The
concepts should also include extra office space for part-time employees, flex space, and meeting space.
In 2024, the Town received, through its Town Planner, a $40,000 Community Compact Grant to study the
feasibility of implementing the recommendations of the St. Gerard’s Reuse Committee. With this study, the
Town expects to learn the existing conditions of the buildings and find out what uses would be viable there. The
deliverable should include multiple concepts and test fits for adaptive reuse of the current buildings, as spelled
out in the scope below.
At their meeting in August of 2022, the Select Board voted to establish a “Re-use Committee”, whose
mission it would be to present to the Select Board a short list of three to five potential uses for the
property that had broad community support. This Committee eventually became known as the “St.
Gerard’s Reuse Committee” (SGRC).
The committee reviewed all of the data supplied from key informants, public forums, and public
engagement surveys. The committee unanimously voted to recommend the following key
recommendations at a summary level:
• Community Center
• Recreation /Open Space
• Municipal Space
The next step for the Select Board is to identify funding and take the necessary steps to secure the
services of a consultant who specializes in the repurposing of town properties and present options based
on the committee’s findings. Additional public engagement as the development of the site progresses
would also be recommended.
Town of Canton, Massachusetts Page 10 of 127 Annual Comprehensive Financial ReportSource page 19
As previously discussed, the Town will be moving forward on the William H. Galvin Middle School
project. Final costs are estimated to approximate $272 million and approximately $72 million of eligible
costs are expected from the MSBA.
As part of the annual budget process, the Capital Planning Committee (CPC) recommends the capital
budget for the upcoming year and prepares a five-year plan to address the long-term capital needs of the
Town. The capital spending plan for the next five-year years is over $37 million. This is funded from
bond issuances and estimated revenues.
The Town’s target set aside to finance its capital plan is 5% of recurring revenues. A portion of its annual
capital plan funds smaller capital projects on a pay-as-you-go basis through recurring revenues while
larger capital projects are financed through borrowing.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a
Certificate of Achievement for Excellence in Financial Reporting. This is a very prestigious award and
in order to be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
The GFOA awarded this Certificate of Achievement for Excellence in Financial Reporting to the Town of
Canton for its annual comprehensive financial report for the fiscal year ended June 30, 2023. This was the
eighteenth year that the Town has achieved this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report will meet the Certificate of Achievement Program’s requirements, and we
are submitting it to the GFOA to determine its eligibility for this certificate.
The publication of this annual comprehensive financial report represents an important achievement in the
ability of the Town of Canton to provide enhanced financial information and accountability to its citizens,
elected and appointed officials, and investors. The preparation of this report would not have been
possible without the efficient and dedicated services of the entire staff of the Finance Office.
Special thanks also go to the certified public accounting firm of Roselli, Clark and Associates for their
advice and assistance in the preparation of this report.
Respectfully submitted,
Charles E. Doody
Town Administrator
William “Randy” Scollins
Finance Director
Town of Canton, Massachusetts Page 11 of 127 Annual Comprehensive Financial ReportSource page 20
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Canton
Massachusetts
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
Town of Canton, Massachusetts Page 13 of 127 Annual Comprehensive Financial ReportSource page 22
TOWN OF CANTON, MASSACHUSETTS
ORGANIZATIONAL CHART
Blue Hills Town
Town Board Planning Select Board Housing Board of Library Select Board
Regional School Clerks
Board Trustees Appointed Bodies
Meeting of Health Board of Assessors Authority
District Office
Town Canton Director Town Town Town Director of Executive Library
Director -Affordable Housing Trust
Moderator Representative Public Health Planner Clerk Administrator Assessing Director -Revere & Son Heritage Trust Corporation
-Registrars of Voters
Finance -Commission on Disability
Executive -Zoning Board of Appeals
Committee
Town Counsel -Water/Sewer Rate Policy Commission
Assistant -Youth Commission
Building -Historical Commission
Renovations -Fair Housing Committee
Town Planner Administrative
Committee Secretary -Cable Advisory Committee
Sealer of Weights -Beautification Committee
-Conservation Commission
Capital
and Measures Secretary -Council on Aging
Planning
Committee -Industrial Development
Financing Authority
-Local Emergency Planning
Committee
-Traffic Study Committee
-Industrial Development Commission
Veteran’s Fire Superintendent Elder and Parks & Conservation
Building Police Human Resource Finance
of Human Services Recreation Commission
Commissioner Director Chief Chief Director Director Director Agent
Public Works Director
Building and Human Elder and
Veteran’s Police Fire Department of Department of Parks &
Zoning Resource Recreation
Office Department. Department Public Works Department Finance Human Services
Department
Building
Animal Control
Maintenance
Department
Department
Town of Canton, Massachusetts Page 14 of 127 Annual Comprehensive Financial ReportSource page 23
CANTON PUBLIC SCHOOLS
CANTON SCHOOL COMMITTEE
ADMINISTRATIVE ASSISTANT TO THE
SUPERINTENDENT/SCHOOL COMMITTEE
SUPERINTENDENT OF SCHOOLS
DIRECTOR .OF CURRICULUM ASSISTANT
BUILDING PRINCIPALS DIRECTOR OF SUPERINTENDENT OF
and INSTRUCTION
STUDENT SERVICES BUSINESS and OPERATIONS
WIDE AREA EDUCATIONAL SCHOOL
NETWORK TECHNOLOGY SECRETARIES ASSISTANT
SCHOOL COUNCIL SECRETARIES
ADM. ADM.. PRINCIPALS ADMINISTRATIVE ASST.
CAPT.
SPED
K-5 READING PARENT GROUPS
PARENT
BUILDING SPECIALISTS SPECIAL EDUCATION, ADVISORY
TECHNOLOGY DISTRICT ACCOUNTS
FACULTY BUILDING 504, ALT. ED. COUNCIL PAYROLL
SPECIALISTS DEPARTMENT PAYABLE
AND STAFF DEPARTMENT STUDENT SERVICES
COORDINATORS
COORDINATORS FACULTY AND STAFF
COMPUTER PROFESSIONAL
DIRECTOR OF
TEACHERS DEVELOPMENT
CHARMSS FOOD SERVICES
COMMITTEE
CUSTODIANS COLLABORATIVE
FACILITIES
PRIVATE SCHOOLS
DIRECTOR
CAFETERIA
MANAGERS/
CUSTODIANS/ WORKERS
MAINTENANCE
TRANSPORTATION
COORDINATOR
HEALTH
SERVICES
Town of Canton, Massachusetts Page 15 of 127 Annual Comprehensive Financial ReportSource page 24
PRINCIPAL TOWN OFFICIALS
Elected Officials
Select Board Michael C. Loughran, Chair
John R. McCourt, Vice-Chair
Christopher M. Albert, Clerk
Patricia M. Boyden, Member
John J. Connolly, Member
School Committee Kendall O’ Halloran, Chair
Laura Arbodola, Vice-Chair
Kristian Merenda, Clerk
Maureen Moran, Member
Kim McCourt, Member
Principal Executive Officers
Town Administrator Charles E. Doody
Finance Director William R. “Randy” Scollins III
Town Accountant Allyson Podgurski
Superintendent of Schools Derek Folan
Assistant Superintendent of
Finance and Operations Brian Lynch
Police Chief Helena Rafferty
Fire Chief Wendell Robery
DPW Superintendent Michael T. Trotta
Town of Canton, Massachusetts Page 16 of 127 Annual Comprehensive Financial ReportSource page 25
FINANCIAL SECTION
Above: Parks and Recreation recently announced that Pequitside Playground is completed, and
open for use. Funds were provided by the Town Community Conservation Act Fund and
assistance with construction was provided by the Department of Public Works.
Photo Credit – Parks and Recreation
Town of Canton, Massachusetts Page 17 of 127 Annual Comprehensive Financial ReportSource page 26
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INDEPENDENT AUDITOR’S REPORT
Honorable Select Board
Town of Canton, Massachusetts
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Canton,
Massachusetts, (the “Town”) as of and for the year ended June 30, 2024, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Town as of June 30, 2024, and the respective changes in financial
position and cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Town and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Town of Canton, Massachusetts Page 19 of 127 Annual Comprehensive Financial ReportSource page 28
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
▪ Exercise professional judgment and maintain professional skepticism throughout the audit.
▪ Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
▪ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and the schedules listed under the required supplementary information section in the
accompanying table of contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Town of Canton, Massachusetts Page 20 of 127 Annual Comprehensive Financial ReportSource page 29
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion of any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 20,
2024 on our consideration of the Town’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contract, grant agreements and other matters. The
purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards in considering the Town’s internal control over financial reporting
and compliance.
Roselli, Clark & Associates
Certified Public Accountants
Woburn, Massachusetts
December 20, 2024
Town of Canton, Massachusetts Page 21 of 127 Annual Comprehensive Financial ReportSource page 30
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Management’s Discussion and Analysis Town of Canton, Massachusetts Page 23 of 127 Annual Comprehensive Financial Report
Source page 32
MANAGEMENT’S DISCUSSION AND ANALYSIS
As the management of the Town, we offer readers of the accompanying financial statements this narrative
overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2024.
Financial Highlights
▪ The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows at the close
of the most recent fiscal year by over $83.7 million (total net position).
▪ The government’s total net position increased by over $12.0 million. This consisted primarily of an
increase in governmental activities’ net position by about $7.6 million and an increase in Business -
type activities’ net position of over $4.4 million. Details of these changes are discussed in later
sections of the Management Discussion and Analysis.
▪ The Town’s Unassigned Fund Balance reported in the General Fund was approximately $27.0 million
(21.4% of General Fund expenditures). Total Fund Balance in the General Fund was over $34.9
million (27.6% of General Fund expenditures).
▪ The Town reported a restricted fund balance in its Capital Project Fund of about $7.2 million. The
Town reported total fund balances of almost $17.4 million in the Combined Nonmajor Governmental
Funds. Over $16.8 million in Restricted Fund Balances, combined with over $0.6 million in
Nonspendable Fund Balances which were offset by deficits categorized as unassigned in the amount
of almost $0.1 million made up this amount.
▪ The Town’s total debt decreased by over $2.0 million during the fiscal year. Detail of this net
increase is discussed in the debt section of this Management Discussion and Analysis.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements.
The Town’s basic financial statements comprise three components:
1) government-wide financial statements,
2) fund financial statements, and
3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Town of Canton, Massachusetts Page 24 of 127 Annual Comprehensive Financial ReportSource page 33
The layout and relationship of the financial statements and supplementary information is visually
illustrated as follows:
Required Supplementary Management Discussion and Analysis
Information
Government-wide Financial Statements
Governmental Fund Financial Statements
Basic Proprietary Fund Financial Statements
Financial Statements
Fiduciary Fund Financial Statements
Notes to the Basic Financial Statements
Required Supplementary
Information – Budgetary Reporting with Notes, Pension and
Other than MD&A Other Postemployment Benefits
Other Supplementary
Combining Fund Financial Statements/Schedules
Information
Government-wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. The statement of position presents information on all of the Town’s assets, deferred outflows,
liabilities and deferred inflows, with the net result reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Town is
improving or deteriorating. The statement of activities presents information showing how the
government’s net position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave.)
The government-wide financial statements consist of two classifications; (1) those whose activities are
principally supported by taxes and intergovernmental revenue (governmental activities), and (2) those
whose activities are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities).
The governmental activities of the Town include general government, public safety, highways and streets,
sanitation, education, economic development, debt service, fringe benefits and culture and recreation.
The business-type activities of the Town are comprised of water, sewer and rink enterprise funds.
Town of Canton, Massachusetts Page 25 of 127 Annual Comprehensive Financial ReportSource page 34
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Town, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Accounting guidelines distinguish fund balance between amounts that are considered nonspendable, such
as fund balance associated with inventories, and other amounts that are classified based on the relative
strength of the constraints that control the purposes for which specific amounts can be spent. Beginning
with the most binding constraints, fund balance amounts will be reported in the following classifications:
• Restricted—amounts constrained by external parties, constitutional provision, or enabling
legislation
• Committed—amounts constrained by a government using its highest level of decision-making
authority
• Assigned—amounts a government intends to use for a particular purpose
• Unassigned—amounts that are not constrained at all will be reported in the general fund or in
other major funds if negative
Governmental funds – Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions.
The Town maintains numerous individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund, ARPA Grant Fund and Capital Projects Fund, which are
considered to be major funds. Data from the other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these Nonmajor governmental funds is provided
in the form of combining statements.
The Town adopts an annual appropriated budget for its general fund and its enterprise funds. A budgetary
comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds – The Town maintains two types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses an enterprise fund to account for its water, sewer and rink enterprise funds.
Internal service funds are used to report activities that service all other Town Departments. The Town
uses internal service funds to account for self-insured health insurance claims.
Town of Canton, Massachusetts Page 26 of 127 Annual Comprehensive Financial ReportSource page 35
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because
the resources of those funds are not available to support the Town’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information which includes the schedules of the Town’s
proportionate share of the net pension liability, contributions to the pension plan, the Commonwealth’s
share of the net pension liability of the Massachusetts Teacher’s Retirement System, the funding progress
and contribution funding of its obligation to provide other postemployment benefits to its employees as
well as the Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
General Fund and notes to this schedule.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets exceeded liabilities by over $83.7 million at the close of the
most recent fiscal year.
Condensed net position data is presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30,
2024 2023 2024 2023 2024 2023
Assets
Currrent and other assets $ 98,682,212 $ 94,256,897 $ 21,827,643 $ 20,806,599 $ 120,509,855 $ 115,063,496
Capital assets, net 121,039,995 116,689,424 62,225,180 59,984,213 183,265,175 176,673,637
Total assets 219,722,207 210,946,321 84,052,823 80,790,812 303,775,030 291,737,133
Deferred outflows of resources 25,243,666 19,904,783 1,474,117 1,004,096 26,717,783 20,908,879
Liabilities
Long-term liabilities 163,958,515 162,669,017 33,807,229 34,908,137 197,765,744 197,577,154
Other liabilities 24,745,762 23,524,463 4,455,996 4,201,437 29,201,758 27,725,900
Total liabilities 188,704,277 186,193,480 38,263,225 39,109,574 226,967,502 225,303,054
Deferred inflows of resources 19,308,229 15,303,410 512,926 374,586 19,821,155 15,677,996
Net Position
Net investment in capital assets 93,381,138 88,058,941 37,985,635 35,054,700 131,366,773 123,113,641
Restricted 10,732,348 10,020,827 - - 10,732,348 10,020,827
Unrestricted (67,160,119) (68,725,554) 8,765,154 7,256,048 (58,394,965) (61,469,506)
Total Net Position $ 36,953,367 $ 29,354,214 $ 46,750,789 $ 42,310,748 $ 83,704,156 $ 71,664,962
By far, the largest portion (about $131.4 million) of the Town’s net position reflects its investment in
capital assets (e.g. land, buildings, infrastructure, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The Town uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town’s
investment in its capital assets is reported net of related debt, the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
Town of Canton, Massachusetts Page 27 of 127 Annual Comprehensive Financial ReportSource page 36
An additional portion (about $10.7 million) of the Town’s net position represents resources that are
subject to external restrictions on how they may be used. Unrestricted net position is reported as a deficit
of nearly $58.4 million due directly to the recognition of net pension and other postemployment liabilities
that continue to be significant.
Condensed changes in net position data are presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30,
2024 2023 2024 2023 2024 2023
Revenues
Program revenues:
Charges for services $ 7,950,541 $ 8,306,271 $ 17,325,816 $ 16,214,728 $ 25,276,357 $ 24,520,999
Operating grants and contributions 30,960,588 26,572,865 - - 30,960,588 26,572,865
Capital grants and contributions 3,253,404 1,200,441 1,051,833 155,752 4,305,237 1,356,193
General revenues:
Property taxes and tax liens 94,099,248 90,082,372 - - 94,099,248 90,082,372
Unrestricted grants and contributions 2,629,948 2,541,685 - - 2,629,948 2,541,685
Other 13,552,672 11,146,339 814,513 489,408 14,367,185 11,635,747
Total Revenues 152,446,401 139,849,973 19,192,162 16,859,888 171,638,563 156,709,861
Expenses
General government 8,042,049 8,414,945 - - 8,042,049 8,414,945
Public safety 23,164,344 22,240,345 - - 23,164,344 22,240,345
Education 94,411,608 84,131,157 - - 94,411,608 84,131,157
Public works 10,545,452 9,017,362 - - 10,545,452 9,017,362
Health and human services 2,121,713 1,802,950 - - 2,121,713 1,802,950
Culture and recreation 4,938,380 4,554,275 - - 4,938,380 4,554,275
Debt service 752,985 749,150 - - 752,985 749,150
Water - - 7,887,518 7,371,999 7,887,518 7,371,999
Sewer - - 7,051,588 6,920,834 7,051,588 6,920,834
Rink - - 683,732 723,685 683,732 723,685
Total Expenses 143,976,531 130,910,184 15,622,838 15,016,518 159,599,369 145,926,702
Change in net position before transfers 8,469,870 8,939,789 3,569,324 1,843,370 12,039,194 10,783,159
Transfers (870,717) (1,236,622) 870,717 1,236,622 - -
Change in net position 7,599,153 7,703,167 4,440,041 3,079,992 12,039,194 10,783,159
Net position, beginning of year 29,354,214 21,651,047 42,310,748 39,230,756 71,664,962 60,881,803
Net position, end of year $ 36,953,367 $ 29,354,214 $ 46,750,789 $ 42,310,748 $ 83,704,156 $ 71,664,962
Governmental Activities – The governmental activities increased net position by about $8.5 million.
Revenues were about $12.6 million greater than the previous year. This was offset by expenses which
were about $13.0 million more than the previous year.
Town of Canton, Massachusetts Page 28 of 127 Annual Comprehensive Financial ReportSource page 37
The following illustrate functional expenses versus program revenue:
Revenues
Major fluctuations in revenues were from:
1. Property taxes, which at 61.8% of total revenues represents the largest revenue. The increase
over the prior year of about $4.0 million is due to the levy limit being assessed within the legally
allowable limit under
proposition 2 ½ combined
with new growth in
developmental activity.
2. Operating grants and
contributions which
represent 20.3% of total
revenues increased by
over $4.4 million over the
prior year. The majority
of this was due to a non-
cash increase in the State special funding situation for schoolteachers under GASB 68, as a result
of a new actuarial valuation, in addition to ARPA revenue recognized as earned in the current
period.
3. Total other revenues were less than 20% of total revenues in aggregate and were individually
minor in amount or consistent with the prior year.
Town of Canton, Massachusetts Page 29 of 127 Annual Comprehensive Financial ReportSource page 38
Expenses
Major fluctuations in expenses were from:
1. Education, which represented 65.5% of total expenses, and is by far the largest expense category
increased nearly $10.3 million. As discussed under revenue, the Town experienced a non-cash
increase in its special
funding arrangement for
teacher’s pensions with the
State, and the correlative
impact of expense per the
new actuarial study. This,
when combined with other
increases in education
funded by taxation, to meet
mandatory net school
spending requirements and
general cost of living
fluctuations led to the increase noted.
2. Public safety costs represent about 16% of expenses and were consistent with the prior year in
terms of percentage with slight dollar increases related to cost of living.
3. Other expenses were less than 18% and were individually minor in amount or consistent with the
prior year.
Business-type Activities – Net position of the business-type activities increased $3.6 million over the
prior year. This was primarily due to an increase in rates of 10% offset by reduced consumption in
water and sewer activities. In addition, the water fund received a $1 million capital grant in the current
year.
Town of Canton, Massachusetts Page 30 of 127 Annual Comprehensive Financial ReportSource page 39
Fund-wide Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds – The focus of the Town’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
a government’s net resources available for spending at the end of the fiscal year.
As of the close of the current fiscal year, the Town’s governmental funds balance sheet reported a
combined ending fund balance of almost $59.5 million, an increase of $2.6 million over the prior year.
The following is a discussion of the more significant areas:
General Fund
The General Fund ended the year with an unassigned fund balance of almost $27.0 million and a total
fund balance of about $34.9 million. Both increased modestly over prior year amounts.
The Town’s revenues were approximately $6.0 million greater than the prior year. This was primarily
due to statutory increases in property taxes ($2.2 million) allowed to be assessed under Massachusetts
General Laws combined with new growth ($1.3 million). The Town also experienced an increase of $1
million over the prior year in investment income due to a much more robust investment environment, in
addition to increases in intergovernmental income mostly from the special funding situation previously
discussed with respect to teacher pension costs. This was offset by increase in expenditures that were
appropriated by the Town to match anticipated revenues. Notably, education expenditures increased by
$4.0 million to meet net state education spending requirements.
Capital Projects
The Capital projects fund ended the year with nearly $7.2 million in restricted fund balances. This
reflected a similar increase over the prior year and related mostly to a bond issuance that was recorded in
the Capital projects fund.
Combined Nonmajor Funds
The remainder of governmental fund balances are included as Combined Nonmajor Fund Balances and
are classified as either (1) non-spendable, due to being the corpus of an endowment in the amount of over
$0.6 million; (2) restricted due to constraints placed externally by third-parties of approximately $16.8
million and (3) unassigned amounts that are in a deficit position of nearly $0.1 million.
Revenues and expenditures in this category of funds are typically designed to offset, however, due to the
timing of receipts and disbursements, fund balances decreased by about $2.0 million.
Proprietary funds – The Town’s proprietary funds are made up of (1) the Water, Sewer and Rink
Enterprise Funds which provides the same type of information found in the government-wide financial
statements under business-type activities and discussed in that section but in more detail; and (2) the
majority of the Town’s Internal Service Funds accounts for the Town’s Health Claims Fund.
Town of Canton, Massachusetts Page 31 of 127 Annual Comprehensive Financial ReportSource page 40
The Health Claims Fund has a Net Position balance about $10.5 million. This was consistent with the
prior year.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were not significant (less than 1%)
as aggregate revisions were about $200,000 on a budget of nearly $129 million. These revisions were
spread ratably across all expenditure line items.
Major budget to actual differences on the revenue side included excise taxes, which were $2.1 million
over forecast. The Town continued to forecast hotel, meals and vehicle excise conservatively as the
pandemic concerns were still in play at the time of the forecast. Investment income exceeded forecast
also by $2.1 million due to interest yields increasing significantly.
On the expenditure side, numerous net minor favorable variances which in total approximated $2.2
million existed. This was primarily a result of increased monitoring of expenditures.
Further detail of budget to actual comparisons may be reviewed as part of the Required Supplementary
Information following the footnotes to the report.
Capital Asset and Debt Administration
Capital Assets – The Town’s investment in capital assets for its governmental and business type
activities amounts to approximately $183.3 million (net of accumulated depreciation) an increase from the
previous year’s balance of approximately $6.6 million as current year additions exceeded the annual
depreciation provision.
Additional information on the Town’s capital assets can be found in Note II subsection D.
Long-term Debt – State statutes limit the amount of general obligation debt a governmental entity may
issue to 5.0 % of its total assessed valuation. The current debt limitation for the Town is approximately
$318.8 million, which is significantly in excess of the Town’s outstanding general obligation debt
classified as inside the debt limit. Issuances of debt
Governmental Activities $ 3,438,500
At the end of the current fiscal year, the Town had total debt Business-Type Activities 2,160,850
outstanding including premiums of about $63.9 million. The
Debt payments:
entire amount comprises debt backed by the full faith and Governmental Activities (3,807,391)
credit of the government. Business-Type Activities (3,411,058)
The Town’s total debt decreased by over $2.0 million during
the fiscal year as detailed in the table on the right. Premium from issuance debt:
Governmental Activities 225,886
The Town’s most recent credit evaluation resulted in the Business-Type Activities 129,326
Town maintaining its “AAA” rating from Standard and
Amortization of premium:
Poor‘s Investment Services for its general obligation debt. Governmental Activities (401,347)
This is the highest investment grade given by this agency. Business-Type Activities (359,625)
The Town has held this rating for nearly 15 years. $ (2,024,859)
The Town also holds a proportionate share of debt of other governmental units that provide services
within the Town’s boundaries. The debt service from such arrangements is assessed annually to the
Town.
Town of Canton, Massachusetts Page 32 of 127 Annual Comprehensive Financial Report