Canton, Massachusetts · Saved source text
FY17 Comprehensive Annual Financial Report
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Source page 83
Healthcare
1% Decrease (4%) Trend Rate (5%) 1% Increase (6%)
Net OPEB Liability $ 71,037,772 $ 87,525,324 $ 108,537,178
Service Cost 1,881,559 2,675,741 3,779,793
Annual OPEB Cost and Net OPEB Obligation – The Town’s annual OPEB cost is calculated
based on the annual required contribution “ARC” of the employer, an actuarially determined
amount that is calculated in accordance with GASB Statement 45. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize
any unfunded liabilities over a period not to exceed thirty years.
The following table reflects the activity regarding the Town’s OPEB obligation:
Annual required contribution (ARC) $ 11,351,979
Interest on net OPEB obligation 2,399,043
Adjustment to ARC (2,905,314)
Amortization of actuarial (gains)/losses (2,050,532)
Annual OPEB cost 8,795,176
Contributions made (3,783,880)
Increase in net OPEB obligation 5,011,296
Net OPEB obligation at beginning of year 45,696,091
Net OPEB obligation at end of year $ 50,707,387
Trend information regarding annual OPEB cost, the percentage of the annual OPEB cost
contributed and the net OPEB obligation is as follows:
Percentage
Fiscal Year Annual OPEB of AOPEBC Net OPEB
Ending Cost Contributed Obligation
June 30, 2017 $ 8,795,176 43.0% $ 50,707,387
June 30, 2016 $ 5,161,825 74.4% $ 45,696,091
June 30, 2015 $ 4,975,024 87.4% $ 44,377,306
The annual OPEB cost of $8,795,176 was allocated to functional items as follows:
Town of Canton, Massachusetts Page 73 of 125 Comprehensive Annual Financial ReportSource page 84
General Government $ 355,453
Public Safety 1,738,218
Education 5,648,925
Public Works 379,796
Health and Human Services 110,661
Culture and Recreation 259,586
Water 176,259
Sewer 79,257
Rink 47,021
$ 8,795,176
Funding Status and Funding Progress – The funded status of the Plan at June 30, 2017, based on
the most recent actuarial valuation performed as of July 1, 2016, was as follows (in millions):
Actuarial
Accrued
Liability UAAL as a
Actuarial (AAL) Entry Unfunded Percentage
Value of Age Normal AAL Funded Covered of Covered
Assets Cost (UAAL) Ratio Payroll Payroll
(A) (B) (B-A) (A/B) (C) (B-A)/C
$ 2.0 $ 86.4 $ 84.4 2.3% $ 44.2 191%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events into the future. Amounts determined
regarding the funded status of the Plan and the ARC of the employer are subject to continual
revision as estimates are compared to actual results and past expectations. The schedules of
funding progress, presented as required supplementary information (RSI) following the notes to
the financial statements, present multi-year trend information about whether the actuarial values
of plan assets are increasing or decreasing over time relative to the AAL for benefits.
Methods and Assumptions – Projections of benefits for financial reporting purposes are based on
the substantive Plan and include the types of benefits provided at the time of each valuation and
the historical pattern of sharing of benefit costs between the employer and the Plan members to
that point. The actuarial methods and assumptions used include techniques that are designed to
reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations. The significant methods and
assumptions as of the latest valuation are as follows:
Valuation date: July 1, 2016
Actuarial cost method Entry Age Normal
Amortization method Level dollar
Remaining amortization period: 21 years as of July 1, 2016
Interest discount rate: 5.25 percent
Inflation rate: 2.75 percent
Salaries: 3.00 percent
Healthcare/Medical cost trend rate: 5.00 percent
Town of Canton, Massachusetts Page 74 of 125 Comprehensive Annual Financial ReportSource page 85
D. Risk Financing
The Town is exposed to various risks of loss related to torts: theft of, damage to and destruction
of assets; errors and omissions; and natural disasters for which the Town carries commercial
insurance. The amount of claim settlements has not exceeded insurance coverage in any of the
previous three years.
Group Health Insurance Plan – The Town maintains a "reinsured cost reimbursement program"
which covers the group health and dental insurance requirements of the Town employees. The
Plan is essentially a self-insurance program and employee claims in excess of $150,000 are
reinsured by the Plan. The Plan allows employees to participate in a Health Maintenance
Organization (HMO) or Preferred Provider Organization (PPO). The Town reimburses the costs
of the HMO and PPO 75 percent. The Town accrues an amount representing claims incurred but
not reported (IBNR), which is based on historical claims paid averages for the twelve months
prior to fiscal year end. At June 30, 2017, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $878,641. This liability is the best estimate based on
available information. In the fund-wide financial statements, the Town reports the activities of
the Group Insurance Health Plan in the Internal Service Fund where revenues are recorded when
earned and expenses are recorded when the liability is incurred. Changes in the reported liability
since July 1, 2015, are as follows:
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2017 $ 740,988 $ 13,255,882 $(13,118,229) $ 878,641 $ 878,641
Fiscal Year 2016 496,023 12,792,812 (12,547,090) 740,988 740,988
Workers’ Compensation – The Town is also self-insured for their workers’ compensation
activities which are accounted for in the Internal Service Fund. Workers’ compensation claims
are administered by a third-party and are funded on a pay-as-you-go basis from annual
appropriations. The Town is premium based for all claims after July 1, 2008. The Town
purchases individual stop loss insurance in excess of the coverage provided in the amount of
$300,000. The estimated future workers’ compensation liability is not material at June 30, 2017,
and is therefore not reported.
E. Commitments
The Town has entered or is planning to enter into contracts for various projects for which it has
authorized approximately $16.0 million in debt.
F. Contingencies
The Town is party to other certain legal claims, which are subject to many uncertainties, and the
outcome of individual litigation matters in these situations cannot be reasonably estimated.
Although the amount of liability, if any, in these situations at June 30, 2017, cannot be
ascertained, management believes that the resulting liability, if any, should not materially affect
the basic financial statements of the Town at June 30, 2017. Other amounts received or
receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
Town of Canton, Massachusetts Page 75 of 125 Comprehensive Annual Financial ReportSource page 86
which may be disallowed by the grantor cannot be determined at this time although the Town
expects such amounts, if any, to be immaterial.
The Town is subject to certain Federal arbitrage laws in accordance with long-term borrowing
agreements. Failure to comply with the rules could result in the payment of penalties. The Town
does not believe it has failed to comply with any of these agreements.
G. Tax Abatements
The Town enters into property tax abatements with local businesses as an incentive for economic
growth, including expansion of current facilities and job opportunities for local residents. The
agreements are commonly referred to as tax increment financing, or TIF, agreements. Under
Massachusetts General Law Chapter 40, Section 59, property owners may be granted property tax
abatements of up to 100% of the value of a tax increment for a maximum term of twenty years
provided the property is located in a TIF zone. TIF zones are approved by the Massachusetts
Economic Assistance Coordinating Council. Furthermore, the Town Meeting must approve all
TIF agreements.
The Town has three such agreements for which the assessed value of the related properties have
been reduced by a percentage between 20 and 70 percent of the incremental assessed value. For
the fiscal year ended June 30, 2017, the Town’s total tax revenues were reduced by
approximately $1.1 million as a result of these tax abatement agreements.
H. Landfill Closure and Post-Closure Care Costs
The Town’s landfill is closed and a final cover has been installed in accordance with Federal and
State laws and regulations. Those laws and regulations also require the Town to perform certain
maintenance and monitoring functions (“post-closure care”) at the site for 30 years after the
landfill cover is installed. In accordance with generally accepted accounting principles, the
estimated remaining cost of monitoring; $26,000 has been recorded as a governmental activities
liability; actual costs may be higher due to inflation, changes in technology, or changes in
regulations.
I. Implementation of GASB pronouncements
Current Year Implementations –
In June 2015, the GASB issued GASB Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other than Pension Plans. GASB 74’s objective was to improve
the usefulness of information about postemployment benefits other than pensions included in the
general purpose external financial reports of state and local governmental OPEB plans for making
decisions and assessing accountability. The provisions of this Statement became effective for the
Town in fiscal year 2017. The adoption of GASB No. 74 did have a material effect on the Town.
In August 2015, the GASB issued GASB Statement No. 77, Tax Abatement Disclosures. GASB
77 requires the disclosure of the terms of certain tax abatement agreements entered into by a
government with individuals or entities. The provisions of this Statement became effective for
the Town in fiscal year 2017. The adoption of GASB No. 77 did have a material effect on the
Town.
Town of Canton, Massachusetts Page 76 of 125 Comprehensive Annual Financial ReportSource page 87
In December 2015, the GASB issued GASB Statement No. 78, Pensions Provided through
Certain Multiple-Employer Defined Benefit Pension Plans. The provisions of GASB 78 were
applicable to certain government pension plans that (i) are not administered as a trust by a state or
local governmental pension plan, (ii) are shared between governmental and nongovernmental
employees, and (iii) have not predominant state of local governmental employer. The provisions
of this Statement became effective for the Town in fiscal year 2017. The adoption of GASB No.
78 did not have a material effect on the Town.
In January 2016, the GASB issued GASB Statement No. 80, Blending Requirements for Certain
Component Units. The provisions of GASB 80 apply to component units that are organized as
not-for-profit corporations in which the primary government is the sole corporate member. Such
component units should be included in the reporting entity financial statements using the blending
method. The provisions of this Statement became effective for the Town in fiscal year 2017. The
adoption of GASB No. 80 did not have a material effect on the Town.
In March 2016, the GASB issued GASB Statement No. 82, Pension Issues – an amendment of
GASB Statements No. 67, No. 68, and No. 73. The objective of GASB 73 was to address issues
raised with respect to previously issued statements related to pensions. The provisions of this
Statement became effective for the Town in fiscal year 2017. The adoption of GASB No. 82 did
not have a material effect on the Town.
Future Implementations –
In June 2015, the GASB issued GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pension Plans. GASB 75 establishes new accounting
and financial reporting requirements for governments whose employees are provided with OPEB,
as well as for certain nonemployer governments that have a legal obligation to provide financial
support for OPEB provided to the employees of other entities. The provisions of this Statement
are effective for financial reporting periods beginning after June 15, 2017 (fiscal year 2018). The
Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In March 2016, the GASB issued GASB Statement No. 81, Irrevocable Split-Interest
Agreements. The objective of the Statement is to improve accounting and financial reporting for
irrevocable split-interest agreements by providing recognition and measurement guidance for
situations in which a government is a beneficiary of the agreement. The provisions of this
Statement are effective for financial reporting periods beginning after December 15, 2016 (fiscal
year 2018) and should be applied retroactively. The Town is currently evaluating whether
adoption will have a material impact on the financial statements.
In November 2016, the GASB issued GASB Statement No. 83, Certain Asset Retirement
Obligations. The objective of the Statement is to address accounting and financial reporting for
certain asset retirement obligations that have legally enforceable liability associated with the
retirement of a tangible capital asset. The provisions of this Statement are effective for financial
reporting periods beginning after June 15, 2018 (fiscal year 2019). The Town is currently
evaluating whether adoption will have a material impact on the financial statements.
In January 2017, the GASB issued GASB Statement No. 84, Fiduciary Activities. The objective
of the Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how these activities should be reported. The
provisions of this Statement are effective for financial reporting periods beginning after
Town of Canton, Massachusetts Page 77 of 125 Comprehensive Annual Financial ReportSource page 88
December 15, 2018 (fiscal year 2020). The Town is currently evaluating whether adoption will
have a material impact on the financial statements.
In May 2017, the GASB issued GASB Statement No. 86, Certain Debt Extinguishment Issues.
The objective of the Statement is to improve consistency in accounting and financial reporting for
in-substance defeasance of debt. The provisions of this Statement are effective for financial
reporting periods beginning after June 15, 2017 (fiscal year 2018). The Town is currently
evaluating whether adoption will have a material impact on the financial statements.
In June 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefines the
manner in which long-term leases are accounted and reported. The provisions of this Statement
are effective for financial reporting periods beginning after December 15, 2019 (fiscal year 2021).
The Town is currently evaluating whether adoption will have a material impact on the financial
statements.
Town of Canton, Massachusetts Page 78 of 125 Comprehensive Annual Financial ReportSource page 89
Required Supplementary Information Town of Canton, Massachusetts Page 79 of 125 Comprehensive Annual Financial Report
Source page 90
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2017
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
(dollar amounts are in thousands)
Year Ended December 31,
2016 2015 2014
Town's proportion of the net pension
liability (asset) 7.65% 7.65% 7.56%
Town's proportionate share of the net
pension liability (asset) $ 39,940 $ 41,562 $ 39,227
Town's covered-employee payroll $ 20,827 $ 20,288 $ 19,140
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 191.8% 204.9% 204.9%
Plan fiduciary net position as a percentage
of the total pension liability 61.6% 58.6% 60.1%
SCHEDULE OF THE TOWN'S CONTRIBUTIONS TO PENSION PLAN
(dollar amounts are in thousands)
Year Ended December 31,
2016 2015 2014
Actuarially determined contribution $ 4,394 $ 3,991 $ 3,571
Contributions in relation to the
actuarially determined contribution 4,394 3,991 3,571
Contribution deficiency (excess) $ - $ - $ -
Town's covered-employee payroll $ 20,827 $ 20,288 $ 19,140
Contributions as a percentage of
covered-employee payroll 21.1% 19.7% 18.7%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 80 of 125 Comprehensive Annual Financial ReportSource page 91
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2017
SCHEDULE OF THE COMMONWEALTH'S COLLECTIVE SHARE OF THE NET PENSION LIABILITY
MASSACHUSETTS TEACHER'S RETIREMENT SYSTEM
(dollar amounts are in thousands)
Year Ended June 30,
2016 2015 2014
Commonwealth's proportion of the
collective net pension liability (asset) 100.0% 100.0% 100.0%
Town's proportion of the collective
net pension liability (asset) 0.0% 0.0% 0.0%
Commonwealth's proportionate share of
the net pension liability (asset) $ 22,357,928 $ 20,489,643 $ 15,896,354
Commonwealth's actuarially
determined contribution $ 1,124,583 $ 1,021,930 $ 937,379
Contributions to MTRS are the responsibility of the Commonwealth of Massachusetts.
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 81 of 125 Comprehensive Annual Financial ReportSource page 92
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2017
SCHEDULE OF FUNDING PROGRESS
Other Postemployment Benefits
UAAL as a
Actuarial Actuarial Actuarial Unfunded Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (AAL) (UAAL) Ratio Payroll Payroll
(a) (b) (b-a) (a/b) (c) ((b-a)/c)
7/1/2016 $ 2,008,350 $ 86,413,049 84,404,699 2.32% $ 44,161,613 191.1%
7/1/2014 580,000 90,203,731 89,623,731 0.64% N/A N/A
1/1/2013 100,000 142,752,366 142,652,366 0.07% 36,479,000 391.1%
1/1/2011 - 130,885,254 130,885,254 0% 34,416,000 380.3%
1/1/2009 - 138,978,486 138,978,486 0% 32,236,000 431.1%
SCHEDULE OF CONTRIBUTION FUNDING
Other Postemployment Benefits
Annual
Year Ended OPEB Actual Percentage
June 30, Cost Contributions Contributed
2017 $ 8,795,176 $ 3,783,880 43%
2016 5,161,825 3,843,040 74%
2015 4,975,024 4,346,287 87%
2014 12,935,961 5,179,872 40%
2013 12,195,572 4,526,092 37%
2012 12,639,000 4,457,000 35%
N/A - Information not currently available.
See accompanying independent auditors' report.
Town of Canton, Massachusetts Page 82 of 125 Comprehensive Annual Financial ReportSource page 93
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2017
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
2017
Total OPEB liability:
Service cost $ 2,515,860
Interest 4,590,666
Changes in benefit terms -
Changes of benefit terms -
Differences between expected and actual experience -
Changes in assumptions -
Benefit payments (3,013,880)
Net change in total OPEB liability 4,092,646
Total OPEB liability - beginning of year 86,413,049
Total OPEB liability - end of year (a) $ 90,505,695
Plan fiduciary net position:
Contributions - employer $ 2,031,576
Contributions - employee 407,666
Net investment income 221,830
Benefit payments (1,669,242)
Administrative expenses -
Other -
Net change in Plan fiduciary net position 991,830
Plan fiduciary net position - beginning of year 1,988,541
Plan fiduciary net position - end of year (b) $ 2,980,371
Net OPEB liability - end of year (a) - (b) $ 87,525,324
Plan fiduciary net position as a percentage of the total
OPEB liability 3.29%
Covered-employee payroll $ 44,161,613
Net OPEB liability as a percentage of covered-
employee payroll 198.19%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
However, until a full 10-year trend is compiled, information is presented for those years
in which information is available.
Note: This schedule is presented using the optional format of combining the required schedules
in paragraph 36a and 36b.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 83 of 125 Comprehensive Annual Financial ReportSource page 94
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2017
SCHEDULE OF CONTRIBUTIONS
2017
Actuarially-determined contribution $ 7,882,230
Contributions in relation to the actuarially-
determined contribution (3,783,880)
Contribution deficiency (excess) $ 4,098,350
Covered-employee payroll $ 44,161,613
Contribution as a percentage of covered-
employee payroll 8.57%
Valuation Date July 1, 2016
Actuarial Cost Method Individual Entry Age Normal
Amortization Period 30 years
Asset Valuation Method Market Value of Assets as of Reporting Date
Inflation 2.75%
Healthcare cost trend rates 5.00%
Salary increases 3.00%
Investment rate of return 6.97%
SCHEDULE OF INVESTMENT RETURNS
2017
Annual money-weighted rate of return, net of
investment expense 8.23%
Note: These schedules are presented to illustrate the requirement to show information for 10 years. However, until a
full 10-year trend is compiled, information is presented for those years in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 84 of 125 Comprehensive Annual Financial ReportSource page 95
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 69,460,204 $ 69,460,204 $ 70,207,984 70,207,984 747,780
Tax title - - 172,988 172,988 172,988
Payments in lieu of taxes 231,040 231,040 231,040 231,040 -
Motor vehicle excise 3,600,000 3,600,000 4,505,384 4,505,384 905,384
Meals taxes 350,000 350,000 361,770 361,770 11,770
Room occupancy excise 250,000 250,000 231,306 231,306 (18,694)
73,891,244 73,891,244 75,710,472 - 75,710,472 1,819,228
Intergovernmental:
State aid - chapter 70 5,320,092 5,320,092 5,320,092 5,320,092 -
State aid - charter school 49,046 49,046 53,918 53,918 4,872
State aid - unrestricted 2,061,875 2,061,875 2,061,875 2,061,875 -
State aid - veterans 152,714 152,714 150,820 150,820 (1,894)
State aid - exemptions 146,973 146,973 142,601 142,601 (4,372)
State aid - state owned land 37,870 37,870 37,870 37,870 -
State aid - other 100,000 100,000 201,142 201,142 101,142
MSBA school construction reimbursement 456,305 456,305 456,305 456,305 -
8,324,875 8,324,875 8,424,623 - 8,424,623 99,748
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 46,600 - 46,600 6,600
Town clerk fees 30,000 30,000 32,987 - 32,987 2,987
Public safety detail fees 30,000 30,000 35,140 - 35,140 5,140
Other departmental fees 50,000 50,000 44,732 - 44,732 (5,268)
Rental of municipal property 200,000 200,000 185,417 - 185,417 (14,583)
Conservation department revenues 77,000 77,000 105,876 - 105,876 28,876
Solar revenues 323,067 323,067 461,428 - 461,428 138,361
Other departmental revenues 25,000 25,000 60,895 - 60,895 35,895
775,067 775,067 973,075 - 973,075 198,008
Licenses and permits:
Alcohol licenses 70,000 70,000 81,300 - 81,300 11,300
Other licenses 80,000 80,000 76,439 - 76,439 (3,561)
Building permits 515,000 515,000 768,041 - 768,041 253,041
Other permits 185,000 185,000 216,336 - 216,336 31,336
850,000 850,000 1,142,116 - 1,142,116 292,116
Fines and forfeitures:
Motor vehicle fines 85,000 85,000 84,105 - 84,105 (895)
Other fines 15,000 15,000 8,716 - 8,716 (6,284)
100,000 100,000 92,821 - 92,821 (7,179)
Penalties and interest on taxes 250,000 250,000 314,625 - 314,625 64,625
Interest and investment income 80,000 80,000 127,091 - 127,091 47,091
Total Revenues 84,271,186 84,271,186 86,784,823 - 86,784,823 2,513,637
Town of Canton, Massachusetts Page 85 of 125 Comprehensive Annual Financial ReportSource page 96
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,184,211 1,020,067 992,619 27,426 1,020,045 22
Executive Branch Articles - 152,000 - 152,000 152,000 -
Commitees and Commissions 34,268 34,268 21,124 1,500 22,624 11,644
Reserve Fund 500,000 219,950 - - - 219,950
Finance Department 1,065,042 1,074,380 980,865 89,345 1,070,210 4,170
Finance Department Articles 130,516 130,516 119,567 10,948 130,515 1
Assessors 320,704 324,584 322,125 2,151 324,276 308
Town Clerk & Elections 232,405 253,202 252,027 742 252,769 433
Town Clerk & Elections Articles 37,956 37,956 - 37,956 37,956 -
Conservation Commission 138,408 138,831 128,731 - 128,731 10,100
Conservation Commission Articles 100,000 100,000 62,521 37,479 100,000 -
Planning Board 66,163 66,163 62,433 3,687 66,120 43
Town Insurance 1,084,985 1,084,985 1,058,297 10,000 1,068,297 16,688
Total General Government 4,894,658 4,636,902 4,000,309 373,234 4,373,543 263,359
Public Safety
Fire Department 5,514,012 5,514,012 5,428,525 79,828 5,508,353 5,659
Fire Department Articles 45,000 45,000 45,000 - 45,000 -
Police Department 4,755,660 4,888,300 4,822,329 43,827 4,866,156 22,144
Police Department Articles 247,475 247,475 173,910 70,621 244,531 2,944
Building & Zoning 364,544 366,368 328,904 18,346 347,250 19,118
Building & Zoning Articles - - - - - -
Total Public Safety 10,926,691 11,061,155 10,798,668 212,622 11,011,290 49,865
Education:
School 40,733,312 40,670,326 38,013,364 2,645,880 40,659,244 11,082
School Articles 862,648 862,648 721,359 138,524 859,883 2,765
Blue Hill Regional 1,195,356 1,191,629 1,180,767 - 1,180,767 10,862
Norfolk County Agricultural HS 10,000 13,727 13,727 - 13,727 -
Total Education 42,801,316 42,738,330 39,929,217 2,784,404 42,713,621 24,709
Public Works:
Public Works 2,826,413 2,833,091 2,709,226 67,250 2,776,476 56,615
Public Works Articles 1,071,279 1,071,279 676,840 391,815 1,068,655 2,624
Street Lighting 120,570 130,620 122,712 6,401 129,113 1,507
Snow & Ice 569,532 765,267 764,864 - 764,864 403
Trash Collection 1,840,240 1,860,240 1,858,338 - 1,858,338 1,902
Total Public Works 6,428,034 6,660,497 6,131,980 465,466 6,597,446 63,051
Health and Human Services:
Health Department 365,030 366,297 355,448 - 355,448 10,849
Council on Aging 366,848 372,431 370,590 1,791 372,381 50
Council on Aging Articles 151,000 151,000 146,412 - 146,412 4,588
Veteran's Services 279,730 283,703 265,584 - 265,584 18,119
Total Health and Human Services 1,162,608 1,173,431 1,138,034 1,791 1,139,825 33,606
(continued)
Town of Canton, Massachusetts Page 86 of 125 Comprehensive Annual Financial ReportSource page 97
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2017
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 677,362 678,103 662,743 7,075 669,818 8,285
Recreation & Playground Articles 100,454 135,454 59,517 75,635 135,152 302
Public Library 1,240,897 1,240,897 1,206,797 25,866 1,232,663 8,234
Public Library Articles 67,394 67,394 57,839 8,174 66,013 1,381
Total Culture and Recreation 2,086,107 2,121,848 1,986,896 116,750 2,103,646 18,202
Pension Benefits: 4,397,322 4,397,322 4,397,289 - 4,397,289 33
Employee Benefits:
Unemployment Compensation 100,000 100,000 100,000 - 100,000 -
Employer Share- Health 11,280,778 11,418,764 11,409,681 8,350 11,418,031 733
Employer Share- Life 60,000 60,000 59,640 - 59,640 360
Employer Share- OPEB 770,000 770,000 770,000 - 770,000 -
Total Employee Benefits 12,210,778 12,348,764 12,339,321 8,350 12,347,671 1,093
State and County Charges: 1,002,359 1,002,359 995,573 - 995,573 6,786
Debt Service: 4,807,386 4,807,386 4,792,087 - 4,792,087 15,299
Total Expenditures 90,717,259 90,947,994 86,509,374 3,962,617 90,471,991 476,003
Other Financing Sources (Uses)
Transfers in 1,924,936 1,924,936 1,943,958 1,943,958 19,022
Transfers out (465,000) (1,444,265) (1,444,265) (1,444,265) -
Total Other Financing Sources (Uses) 1,459,936 480,671 499,693 $ 499,693 19,022
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (4,986,137) (6,196,137) $ 775,142 $ 3,008,662
Other Budgetary Items
Use of unassigned fund balance $ 1,332,000 $ 2,542,000
Prior year encumbrances 3,654,137 3,654,137
Total Other Budgetary Items 4,986,137 6,196,137
Net budget and actual $ - $ -
(Concluded)
The notes to the financial statements are an integral part of this statement.
The notes to the required supplementary information are and integral part of this statement.
Town of Canton, Massachusetts Page 87 of 125 Comprehensive Annual Financial ReportSource page 98
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2017
I. Budgetary Basis of Accounting
Budgetary Information – An annual budget is legally adopted for the General Fund and the Enterprise
Fund. The budget is recommended by the Finance Committee and approved by Town Meeting at the
Town’s annual meeting in May. Changes subsequent to the approved Town Meeting budget require
majority Town Meeting approval at a Special Town Meeting. Expenditures may not legally exceed
appropriations at the department level. Department heads may transfer, without Town Meeting
approval, appropriation balances from one account to another within their department or budget, and
within the categories of salaries and expenses. At the close of each fiscal year, unencumbered
appropriation balances lapse and revert to unassigned fund balance.
The Town adopts an annual budget for the general fund in conformity with the guidelines described
above. During fiscal year 2017, Town Meeting approved various supplemental budgetary
appropriations which resulted in a net increase of approximately $1,200,000 from the original voted
budget. These appropriations were primarily utilized for snow and ice removal ($200,000), capital
funding ($475,000) and increased stabilization reserves ($500,000).
The Town Accountant has the responsibility to ensure that budgetary control is maintained in the
manner in which the appropriations were voted by Town Meeting. Budgetary control is exercised
through the Town’s accounting system.
Budgetary-to-GAAP Reconciliation – The Town’s general fund is prepared on a basis of accounting
other than GAAP. A reconciliation of the budgetary-basis to GAAP-basis results for the General Fund
for the fiscal year ended June 30, 2017, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 86,784,823
Stabilization revenue $ - $ 141,189 141,189
Change in accruing tax revenues (191,179) - (191,179)
Change in recording tax refunds payable 1,380,000 - 1,380,000
On behalf payments 8,278,668 - 8,278,668
Revenues on a GAAP basis $ 9,467,489 $ 141,189 $ 96,393,501
Expenditures on a budgetary basis $ 86,509,374
Reclass of enterprise indirects cost to expenditures $ (866,981) $ - (866,981)
Change in accruing payroll expenditures 365,130 - 365,130
Refunding transactions 21,404 - 21,404
On behalf payments 8,278,668 - 8,278,668
Expenditures on a GAAP basis $ 7,798,221 $ - $ 94,307,595
Other financing sources (uses) on a budgetary basis $ 499,693
Reclass of enterprise indirects cost to expenditures $ (866,981) $ - (866,981)
Refunding transactions 21,404 - 21,404
Stabilization transfers - 500,000 500,000
Other financing sources (uses) on a GAAP basis $ (845,577) $ 500,000 $ 154,116
Town of Canton, Massachusetts Page 88 of 125 Comprehensive Annual Financial ReportSource page 99
Combining Statements Town of Canton, Massachusetts Page 89 of 125 Comprehensive Annual Financial Report
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Nonmajor Governmental Funds
Narrative
Special Revenue Funds –
Special revenue funds are used to account for certain revenue generating activities that are legally and/or
programmatically restricted to expenditures for a specific purpose. From the Town’s financial ledgers,
these activities can be distinctly categorized into the following groupings:
School Lunch – This segregated revolving fund accounts for the activities of the child nutrition programs;
amounts collected from services include federal and state meal reimbursements and meal charges.
Private Grants – This fund accounts for grant funds received from private organizations that are to be
used to fund various governmental programs.
Town Revolving – This fund accounts for the non-school related activity within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes.
School Revolving – This fund accounts for educational-based activities within revolving funds established
in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71.
Recreation – This fund accounts for self-supporting recreation programs and activities.
Ambulance – This fund accounts for the fees generated by the operations of the fire department’s
ambulance service that are used to fund specific operating costs of the department.
Community Preservation – This fund accounts for assets that are restricted by state law for the purposes
of acquiring or developing open space and recreational facilities, historic resources and affordable
housing.
Town Grants – This fund accounts for non-school grant programs received either directly from federal
and state agencies or indirectly through pass-through entities.
School Grants – This fund accounts for educational-based grant programs received either directly from
federal and state agencies or indirectly through pass-through entities.
Roadway Improvements – This fund accounts for certain roadway improvement projects which are fully
reimbursed by the Commonwealth of Massachusetts.
Other Departmental – This fund accounts for activity of donated funds, public safety details, and other
restricted funds used to support governmental programs.
Town of Canton, Massachusetts Page 91 of 125 Comprehensive Annual Financial ReportSource page 102
Permanent Funds –
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support governmental programs.
Cemetery Trust Funds – This fund accounts for contributions earmarked for the perpetual care and
maintenance of cemetery facilities and property.
Library Trust Funds – This fund accounts for contributions earmarked for the support of the Town’s
library.
Other Municipal Trust Funds – This fund accounts for all contributions including: gifts, donations and
bequests for which only earnings on the original trust corpus may be expended to benefit government
approved programs, other than those associated with cemetery and library activities.
Town of Canton, Massachusetts Page 92 of 125 Comprehensive Annual Financial ReportSource page 103
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2017
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 325,660 $ 739,809 $ 724,231 $ 1,641,943 $ 295,398
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 30,595 - - - -
Total Assets $ 356,255 $ 739,809 $ 724,231 $ 1,641,943 $ 295,398
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 3,062 $ 3,375 $ 153,010 $ 10,188 $ 36,800
Accrued payroll and withholdings 43,454 - 48 4,454 16,047
Other liabilities - - 4,031 - -
Due to other funds - - - - -
Bond anticipation notes payable - - - - -
Total Liabilities 46,516 3,375 157,089 14,642 52,847
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 309,739 736,434 567,142 1,627,301 242,551
Unassigned - - - - -
Total Fund Balances 309,739 736,434 567,142 1,627,301 242,551
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 356,255 $ 739,809 $ 724,231 $ 1,641,943 $ 295,398
Town of Canton, Massachusetts Page 94 of 125 Comprehensive Annual Financial ReportSource page 105
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ 1,629,701 $ 1,921,209 $ 111,415 $ 705,818 $ 2,120 $ 2,611,234 $ 10,708,538
- - 545,351 - - - 545,351
- 7,329 - - - - 7,329
- 2,731 - - - - 2,731
164,656 - - - - 91,327 255,983
- - 72,277 16,020 - - 118,892
$ 1,794,357 $ 1,931,269 $ 729,043 $ 721,838 $ 2,120 $ 2,702,561 $ 11,638,824
$ - $ 1,360 $ 15,498 $ 14,514 $ - $ 44,961 $ 282,768
- - 4,945 14,053 - 19,663 102,664
- - - - - - 4,031
- - - - - - -
- - - - - - -
- 1,360 20,443 28,567 - 64,624 389,463
- 10,060 - - - - 10,060
164,656 - - - - 91,327 255,983
164,656 10,060 - - - 91,327 266,043
- - - - - - -
1,629,701 1,919,849 749,266 693,271 2,120 2,662,067 11,139,441
- - (40,666) - - (115,457) (156,123)
1,629,701 1,919,849 708,600 693,271 2,120 2,546,610 10,983,318
$ 1,794,357 $ 1,931,269 $ 729,043 $ 721,838 $ 2,120 $ 2,702,561 $ 11,638,824
Town of Canton, Massachusetts Page 95 of 125 Comprehensive Annual Financial ReportSource page 106
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2017
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Assets:
Cash and cash equivalents $ 60,377 $ 568,254 $ 23,825 $ 652,456 $ 11,360,994
Investments 419,863 - 146,952 566,815 1,112,166
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 7,329
Tax liens and foreclosures - - - - 2,731
Departmental and other - - - - 255,983
Intergovernmental - - - - 118,892
Total Assets $ 480,240 $ 568,254 $ 170,777 $ 1,219,271 $ 12,858,095
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ - $ - $ - $ - $ 282,768
Accrued payroll and withholdings - - - - 102,664
Other liabilities - - - - 4,031
Due to other funds - - - - -
Bond anticipation notes payable - - - - -
Total Liabilities - - - - 389,463
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - 10,060
Unavailable revenues - other - - - - 255,983
Total Deferred Inflows of Resources - - - - 266,043
Fund Balances:
Nonspendable 455,397 21,553 12,235 489,185 489,185
Restricted 24,843 546,701 158,542 730,086 11,869,527
Unassigned - - - - (156,123)
Total Fund Balances 480,240 568,254 170,777 1,219,271 12,202,589
Total Liabilities and Fund Balances $ 480,240 $ 568,254 $ 170,777 $ 1,219,271 $ 12,858,095
(Concluded)
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2017
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Revenues:
Property taxes $ - $ - $ - $ - $ -
Intergovernmental 364,958 - 22,329 - -
Charges for services 772,015 - - - -
Departmental and other - - 211,310 1,356,136 362,497
Investment income 1,542 - - - -
Contributions and donations - 10,000 36,448 - 5,701
Total Revenues 1,138,515 10,000 270,087 1,356,136 368,198
Expenditures:
Current:
General government - - 14,570 - -
Public safety - - 5,944 - -
Education 1,001,194 - - 1,286,058 -
Public works - 33,614 - - -
Health and human services - - 97,784 - -
Culture and recreation - - 46,362 - 326,091
Employee benefits - - - - -
Total Expenditures 1,001,194 33,614 164,660 1,286,058 326,091
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 137,321 (23,614) 105,427 70,078 42,107
Other Financing Sources (Uses):
Premium from bonds and notes - - - - -
Transfers in - - - - -
Transfers out (146,805) - (69,300) - -
Total Other Financing Sources (Uses) (146,805) - (69,300) - -
Net Change in Fund Balances (9,484) (23,614) 36,127 70,078 42,107
Fund Balances - Beginning of Year 319,223 760,048 531,015 1,557,223 200,444
Fund Balances - End of Year $ 309,739 $ 736,434 $ 567,142 $ 1,627,301 $ 242,551
Town of Canton, Massachusetts Page 98 of 125 Comprehensive Annual Financial ReportSource page 109
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ - $ 546,766 $ - $ - $ - $ - $ 546,766
- 108,001 317,163 2,623,782 646,421 - 4,082,654
1,256,739 - - - - - 2,028,754
- 1,457 - - - 616,778 2,548,178
- 9,413 11,441 - - 825 23,221
- - - - - 399,106 451,255
1,256,739 665,637 328,604 2,623,782 646,421 1,016,709 9,680,828
- - 7,139 - - 163,027 184,736
- - 279,949 - - 581,319 867,212
- - - 2,432,405 - 316,871 5,036,528
- - - - 646,421 5,520 685,555
- - 49,370 - - - 147,154
- 133,966 11,303 - - 12,191 529,913
- - - - - 65,846 65,846
- 133,966 347,761 2,432,405 646,421 1,144,774 7,516,944
1,256,739 531,671 (19,157) 191,377 - (128,065) 2,163,884
- - - - - 261,586 261,586
- - 4,265 - - 80,000 84,265
(761,150) - - - - (394,980) (1,372,235)
(761,150) - 4,265 - - (53,394) (1,026,384)
495,589 531,671 (14,892) 191,377 - (181,459) 1,137,500
1,134,112 1,388,178 723,492 501,894 2,120 2,728,069 9,845,818
$ 1,629,701 $ 1,919,849 $ 708,600 $ 693,271 $ 2,120 $ 2,546,610 $ 10,983,318
(Continued)
Town of Canton, Massachusetts Page 99 of 125 Comprehensive Annual Financial ReportSource page 110
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2017
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Revenues:
Property taxes $ - $ - $ - $ - $ 546,766
Intergovernmental - - - - 4,082,654
Charges for services - - - - 2,028,754
Departmental and other - - - - 2,548,178
Investment income 5,867 1,747 2,241 9,855 33,076
Contributions and donations 17,600 388,415 - 406,015 857,270
Total Revenues 23,467 390,162 2,241 415,870 10,096,698
Expenditures:
Current:
General government - - - - 184,736
Public safety - - - - 867,212
Education - - - - 5,036,528
Public works - - - - 685,555
Health and human services - - - - 147,154
Culture and recreation - 4,937 - 4,937 534,850
Employee benefits - - - - 65,846
Total Expenditures - 4,937 - 4,937 7,521,881
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 23,467 385,225 2,241 410,933 2,574,817
Other Financing Sources (Uses):
Premium from bonds and notes - - - - 261,586
Transfers in - - - - 84,265
Transfers out (5,000) - - (5,000) (1,377,235)
Total Other Financing Sources (Uses) (5,000) - - (5,000) (1,031,384)
Net Change in Fund Balances 18,467 385,225 2,241 405,933 1,543,433
Fund Balances - Beginning of Year 461,773 183,029 168,536 813,338 10,659,156
Fund Balances - End of Year $ 480,240 $ 568,254 $ 170,777 $ 1,219,271 $ 12,202,589
(Concluded)
Town of Canton, Massachusetts Page 100 of 125 Comprehensive Annual Financial ReportSource page 111
Internal Service Funds
Narrative
Internal service funds are used to account for the financing of services provided by one department to
other departments or governmental units. The Town’s risk financing activities accounts for in the internal
service funds can be distinctly categorized into the following groupings:
Health Claims – This fund accounts for the group health and dental insurance activity for active Town
employees and retirees.
Workers’ Compensation Claims – This fund accounts for workers’ compensation benefits, replacement
wages and medical claims expenses of employees that qualify for such benefits.
Unemployment Claims – This fund accounts for unemployment benefits for eligible employees.
Building Insurance – This fund accounts for resource accumulated to pay for damage to Town property
that is not covered by liability insurance.
Town of Canton, Massachusetts Page 101 of 125 Comprehensive Annual Financial ReportSource page 112
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2017
Total
Health Workers' Unemployment Building Internal
Claims Compensation Claims Insurance Service Funds
Assets:
Current assets:
Cash and cash equivalents $ 1,811,400 $ 23,681 $ 235,018 $ 1,994 $ 2,072,093
Investments 3,644,406 - - 457,628 4,102,034
Receivables, net of allowance for uncollectibles:
Departmental and other 62,426 - - - 62,426
Deposit held by third party 61,800 - - - 61,800
Total Current Assets 5,580,032 23,681 235,018 459,622 6,298,353
Liabilities:
Current liabilities:
Warrants and accounts payable 306,055 - - - 306,055
Health claims incurred but not reported 878,641 - - - 878,641
Total Current Liabilities 1,184,696 - - - 1,184,696
Net Position:
Unrestricted 4,395,336 23,681 235,018 459,622 5,113,657
TOTAL NET POSITION $ 4,395,336 $ 23,681 $ 235,018 $ 459,622 $ 5,113,657
Town of Canton, Massachusetts Page 102 of 125 Comprehensive Annual Financial ReportSource page 113
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2017
Total
Health Workers' Unemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Operating Revenues:
Employee contributions $ 3,584,560 $ - $ - $ - $ 3,584,560
Employer contributions 10,612,761 - 100,000 - 10,712,761
Stop loss reimbursements 632,353 - - - 632,353
Total Operating Revenues 14,829,674 - 100,000 - 14,929,674
Operating Expenditures:
Employee benefits 15,208,033 4,447 64,310 - 15,276,790
Total Operating Expenditures 15,208,033 4,447 64,310 - 15,276,790
Operating Income (Loss) (378,359) (4,447) 35,690 - (347,116)
Nonoperating Revenues (Expenses):
Investment Income 49,262 254 2,240 6,532 58,288
Income (Loss) Before Transfers (329,097) (4,193) 37,930 6,532 (288,828)
Change in Net Position (329,097) (4,193) 37,930 6,532 (288,828)
Fund Balances - Beginning of Year 4,724,433 27,874 197,088 453,090 5,402,485
Fund Balances - End of Year $ 4,395,336 $ 23,681 $ 235,018 $ 459,622 $ 5,113,657
Town of Canton, Massachusetts Page 103 of 125 Comprehensive Annual Financial ReportSource page 114
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2017
Total
Health Workers' Umemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Cash Flows From Operating Activities:
Receipts from interfund services provided $ 14,958,623 $ - $ 100,000 $ - $ 15,058,623
Payments for interfund services used (14,870,771) (4,447) (64,310) - (14,939,528)
Net Cash Provided by (Used in) Operating Activities 87,852 (4,447) 35,690 - 119,095
Cash Flows From Investing Activities:
Investment income 49,262 254 2,240 6,532 58,288
Investment of operating cash (550,726) - - (4,538) (555,264)
Net Cash Provided By Investing Activities (501,464) 254 2,240 1,994 (496,976)
Net Change in Cash and Cash Equivalents (413,612) (4,193) 37,930 1,994 (377,881)
Cash and Cash Equivalents:
Beginning of the Year 2,225,012 27,874 197,088 - 2,449,974
End of the Year $ 1,811,400 $ 23,681 $ 235,018 $ 1,994 $ 2,072,093
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss) (378,359) (4,447) 35,690 - (347,116)
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables 128,949 - - - 128,949
Deposits held by third party 61,121 - - - 61,121
Accounts payable and accrued expenses 138,488 - - - 138,488
Health claims incurred but not reported 137,653 - - - 137,653
Net Cash Provided by (Used in) Operating Activities $ 87,852 $ (4,447) $ 35,690 $ - $ 119,095
Town of Canton, Massachusetts Page 104 of 125 Comprehensive Annual Financial ReportSource page 115
Fiduciary Funds
Agency Funds –
Agency funds are used to account for assets maintained in a custodial capacity. Such activities primarily
consist of performance bonds, other escrow deposits, school student activity deposits.
Town of Canton, Massachusetts Page 105 of 125 Comprehensive Annual Financial ReportSource page 116
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2017
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents $ 1,373,818 $ 511,772 $ (575,805) $ 1,309,785
Liabilities
Current liabilities:
Warrants payable $ 13,269 $ 574,204 $ (560,296) $ 27,177
Agency liabilities 1,360,549 434,625 (512,566) 1,282,608
Total Liabilities $ 1,373,818 $ 1,008,829 $ (1,072,862) $ 1,309,785
Town of Canton, Massachusetts Page 106 of 125 Comprehensive Annual Financial ReportSource page 117
Statistical Section Statistical tables differ from financial statements since they usually cover more than one fiscal year and present non-accounting data. The following tables reflect social and economic data, financials trends, and fiscal capacity. Michelle Stark photo courtesy of the Canton Citizen The Ice House, a privately owned facility which features two regulation-sized ice skating rinks and a large concession area, plans to be remain open seven days a week throughout the year to help meet the increasing demand for available ice time.
Source page 118
Statistical Section
This part of the comprehensive annual financial report presents information as a context for understanding
what the information in the financial statements, note disclosures, and required supplementary
information says about the Town’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the Town’s financial
performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the Town’s most significant local revenue
source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the Town’s current
levels of outstanding debt, and the Town’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Town’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the Town’s financial report relates to the services the Town provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the financial
statements for the relevant year.
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NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 (1) 2013 2014 2015 (2) 2016 2017
Governmental activities:
Net investment in capital assets…………………………….
$ 51,291,396 $ $ 54,948,512 $ $ 57,942,064 $ $ 62,056,797 $ 63,962,326 $ 61,957,511 $ 70,116,230 $ 76,109,604 $ 78,591,436 $ 78,738,423
Restricted………………………………………………………………………….. 4,432,975 8,844,047 7,781,249 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548
Unrestricted……………………………………………………………… 25,253,777 14,125,826 6,141,042 (3,861,890) (8,796,940) (14,921,000) (23,682,247) (57,308,073) (55,970,281) (57,041,754)
Total governmental activities net position………………………………………..
$ 80,978,148 $ 77,918,385 $ 71,864,355 $ 65,652,451 $ 61,940,036 $ 57,805,364 $ 55,346,471 $ 27,995,047 $ 31,627,703 $ 32,339,217
Business-type activities:
Net investment in capital assets…………………………….
$ 13,948,369 $ 14,483,253 $ 15,188,472 $ 17,195,414 $ 16,033,950 $ 16,381,614 $ 15,743,697 $ 16,386,618 $ 17,457,708 $ 18,785,822
Unrestricted………………………………………………………………. 5,093,607 3,934,247 3,836,227 2,796,789 4,362,212 4,030,576 6,399,642 6,342,679 9,040,938 8,905,131
Total business-type activities net position…………………………….
$ 19,041,976 $ 18,417,500 $ 19,024,699 $ 19,992,203 $ 20,396,162 $ 20,412,190 $ 22,143,339 $ 22,729,297 $ 26,498,646 $ 27,690,953
Primary government:
Net investment in capital assets…………………………….
$ 65,239,765 $ 69,431,765 $ 73,130,536 $ 79,252,211 $ 79,996,276 $ 78,339,125 $ 85,859,927 $ 92,496,222 $ 96,049,144 $ 97,524,245
Restricted………………………………………………………………………. 4,432,975 8,844,047 7,781,249 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548
Unrestricted…………………………………………………………… 30,347,384 18,060,073 9,977,269 (1,065,101) (4,434,728) (10,890,424) (17,282,605) (50,965,394) (46,929,343) (48,136,623)
Total primary government net position………………………………………………….
$ 100,020,124 $ 96,335,885 $ 90,889,054 $ 85,644,654 $ 82,336,198 $ 78,217,554 $ 77,489,810 $ 50,724,344 $ 58,126,349 $ 60,030,170
(1) In fiscal year 2012, the Town restated its liability for other post employment benefits. This resulted in a prior period restatement decreasing governmental activities beginning balance and increasing business-type
activities beginning balance by $161,000 and $262,000, respectively, as of July 1, 2011.
(2) In fiscal year 2015, the Town restated its liability for pension benefits. This resulted in a prior period restatement decreasing governmental activities and business-type activities beginning balance by
$34,589,481 and $2,341,420, respectively, as of July 1, 2014.
Town of Canton, Massachusetts Page 109 of 125 Comprehensive Annual Financial ReportSource page 122
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 (1) 2017 (1)
Expenses -
Governmental activities:
General government…...…………………………………………………… $ 5,142,280 $ $ 6,440,728 $ $ 5,856,721 $ $ 6,012,221 $ 5,898,196 $ 5,809,111 $ 6,231,894 $ 5,683,805 $ 5,764,062 $ 5,965,196
Public safety…..……………………………………………………………… 12,501,298 14,102,861 14,815,007 14,845,911 15,490,670 16,060,024 16,660,306 15,312,760 16,584,359 17,532,705
Education……..…………………………………………………………………. 45,669,483 52,111,533 56,105,191 57,174,814 58,649,480 61,782,205 64,153,101 54,772,830 60,963,021 68,325,037
Public works……...………………………………………………………………. 5,002,096 5,035,008 5,725,429 5,964,437 5,703,015 6,286,770 6,419,350 7,227,459 7,581,355 7,658,668
Health and human services……………...…………………………………………………………….
810,319 983,217 1,094,171 1,133,985 1,221,862 1,314,086 1,346,871 1,609,060 1,536,513 1,684,833
Culture and recreation………...…………………………………………………………..
2,498,364 2,715,016 2,762,453 2,882,803 2,944,861 2,985,722 3,123,867 3,006,143 3,698,331 3,683,115
Interest…………………………………………………………………… 2,105,670 1,996,528 1,919,708 1,797,797 1,664,859 1,668,538 1,557,660 722,667 672,768 636,035
Total government activities expenses…………………………………….. 73,729,510 83,384,891 88,278,680 89,811,968 91,572,943 95,906,456 99,493,049 88,334,724 96,800,409 105,485,589
Business-type activities:
Water…………………………………………………………………… 3,769,301 4,562,904 4,644,182 4,968,675 5,456,431 5,853,408 5,225,383 5,253,139 5,692,320 6,141,278
Sewer…………………………………………………………………… 4,643,878 4,462,173 4,575,414 4,819,406 5,084,191 5,173,053 5,366,166 5,416,303 5,925,780 6,191,663
Rink…………………………………………………………………… 357,203 458,269 486,775 504,265 496,394 390,072 353,666 405,752 79,670 61,792
Total business-type activities expenses…………………………………….. 8,770,382 9,483,346 9,706,371 10,292,346 11,037,016 11,416,533 10,945,215 11,075,194 11,697,770 12,394,733
Total primary government expenses………………………………………. $ 82,499,892 $ 92,868,237 $ 97,985,051 $ 100,104,314 $ 102,609,959 $ 107,322,989 $ 110,438,264 $ 99,409,918 $ 108,498,179 $ 117,880,322
Program Revenues -
Governmental activities:
Charges for services:
General government………………………………………………… $ 368,111 $ $ 400,721 $ $ 919,070 $ $ 385,778 $ 325,814 $ 554,773 $ 978,216 $ 881,979 $ 776,450 $ 563,303
Public safety……………………………………………………………….. 2,253,015 1,867,319 2,076,797 2,036,855 2,292,477 2,790,608 2,595,617 2,908,421 3,123,869 2,778,390
Education………………………………………………………………. 2,202,573 1,975,650 2,105,396 2,143,729 2,155,031 2,253,878 2,632,798 2,640,969 2,788,752 2,328,949
Public works………………………………………………………………. 71,911 69,082 129,056 92,920 125,694 210,642 227,108 281,025 316,164 267,218
Human services………………………………………………………………. 50,162 42,354 41,527 46,661 66,462 85,978 91,484 151,953 97,633 101,977
Culture and recreation……………………………………………………… 376,991 377,306 379,669 346,254 528,937 396,771 359,497 399,396 468,374 460,175
Operating grants and contributions…………………………………… 13,251,876 14,389,625 14,937,773 15,381,360 16,776,734 16,961,153 18,811,622 13,609,976 15,841,950 18,253,254
Capital grants and contributions………………………………………….. 2,251,419 3,291,089 1,170,098 162,497 1,659,561 550,999 611,930 2,832,069 1,562,827 922,822
Total government activities program revenues...…………………………….. 20,826,058 22,413,146 21,759,386 20,596,054 23,930,710 23,804,802 26,308,272 23,705,788 24,976,019 25,676,088
Business-type activities:
Charges for services - Water…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
5,148,323 4,727,025 5,693,293 6,965,364 6,672,927 6,702,942 6,943,731 7,011,223 7,084,917 6,929,539
Charges for services - Sewer…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
5,159,490 4,747,421 4,772,693 4,965,133 5,227,905 5,344,425 6,045,829 6,559,894 6,517,066 6,560,287
Charges for services - Rink…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
356,953 391,991 404,449 430,878 446,111 431,671 429,555 367,098 - -
Capital grant and contributions…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
39,941 2,362 497,305 - - - 463,500 - - -
Operating grants and contributions……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
- - - - - - 6,250 37,338 2,093 80,960
Total business-type activities program revenues……………………………………..
10,704,707 9,868,799 11,367,740 12,361,375 12,346,943 12,479,038 13,888,865 13,975,553 13,604,076 13,570,786
Total primary government program revenues……………………………………….
$ 31,530,765 $ 32,281,945 $ 33,127,126 $ 32,957,429 $ 36,277,653 $ 36,283,840 $ 40,197,137 $ 37,681,341 $ 38,580,095 $ 39,246,874
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..
$ (52,903,452) $ (60,971,745) $ (66,519,294) $ (69,215,914) $ (67,642,233) $ (72,101,654) $ (73,184,777) $ (64,628,936) $ (71,824,390) $ (79,809,501)
Business-type activities……………………....…………………………….. 1,934,325 385,453 1,661,369 2,069,029 1,309,927 1,062,505 2,943,650 2,900,359 1,906,306 1,176,053
Total primary government net (expense)/program revenue……………………………………….
$ (50,969,127) $ (60,586,292) $ (64,857,925) $ (67,146,885) $ (66,332,306) $ (71,039,149) $ (70,241,127) $ (61,728,577) $ (69,918,084) $ (78,633,448)
(1) The roof of the Rink partially collapsed due to storm damage which has temporarily suspended operations and has led to a decrease in activity in the Rink Enterprise fund. (continued)
Town of Canton, Massachusetts Page 110 of 125 Comprehensive Annual Financial ReportSource page 123
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
General Revenues and other Changes in Net Position -
Governmental activities:
Real estate and personal property taxes,
net of tax refunds payable…………………………………………………. $ 46,074,751 $ $ 49,643,467 $ $ 52,922,668 $ $ 54,892,887 $ 56,128,582 $ 58,966,309 $ 61,423,003 $ 63,720,607 $ 67,168,983 $ 72,087,049
Tax liens………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
204,174 186,291 210,666 349,982 597,670 421,708 591,950 213,952 204,512 220,189
Motor vehicle excise taxes…………………………………………………… 3,622,335 3,170,275 3,082,341 3,286,609 3,101,266 3,914,171 3,380,408 4,385,878 4,376,168 4,581,480
Penalties and interest on taxes…………………………………………….. 188,163 246,950 317,161 305,814 263,511 323,695 344,012 310,740 254,164 314,625
Payments in lieu of taxes……………………………………………………………… 191,827 194,559 199,299 199,225 219,205 224,311 214,543 222,149 225,405 231,040
Hotel and meals taxes……………………………………………………………… - - - - 38,309 460,905 568,317 581,621 601,227 593,076
Grants and contributions not restricted to specific programs………………………………………………………………
2,974,443 2,727,082 2,165,199 2,201,430 2,026,227 2,202,728 2,776,692 2,213,169 2,013,767 2,099,870
Unrestricted investment income……………………………………………. 909,900 488,112 212,187 195,037 166,466 201,635 194,375 218,877 246,862 359,644
Insurance recoveries……………………………………………………………… - - - - - - - - 2,190,705 -
Miscellaneous……………………………………………………………… 189,784 245,317 312,573 471,501 382,614 188,275 - - - -
Transfers……………………………………………………………… 969,101 1,009,929 1,054,170 1,101,525 1,166,968 1,063,245 1,232,584 - (1,824,747) 34,042
Total governmental activities…………………………………………………………………
55,324,478 57,911,982 60,476,264 63,004,010 64,090,818 67,966,982 70,725,884 71,866,993 75,457,046 80,521,015
Business-type activities:
Unrestricted investment income……………………………………………. - - - - - 16,768 20,083 27,019 38,296 50,296
Transfers……………………………………………………………… (969,101) (1,009,929) (1,054,170) (1,101,525) (1,166,968) (1,063,245) (1,232,584) - 1,824,747 (34,042)
Total business-type activities….………..………………………………….. (969,101) (1,009,929) (1,054,170) (1,101,525) (1,166,968) (1,046,477) (1,212,501) 27,019 1,863,043 16,254
Total primary government general revenues and other
changes in net position…………………………………………………. $ 54,355,377 $ 56,902,053 $ 59,422,094 $ 61,902,485 $ 62,923,850 $ 66,920,505 $ 69,513,383 $ 71,894,012 $ 77,320,089 $ 80,537,269
Changes in Net Position
Governmental activities……………………....…………………………….. $ 2,421,026 $ (3,059,763) $ (6,043,030) $ (6,211,904) $ (3,551,415) $ (4,134,672) $ (2,458,893) $ 7,238,057 $ 3,632,656 $ 711,514
Business-type activities……………………....…………………………….. 965,224 (624,476) 607,199 967,504 142,959 16,028 1,731,149 2,927,378 3,769,349 1,192,307
Total primary government changes in net position……………………………………….
$ 3,386,250 $ (3,684,239) $ (5,435,831) $ (5,244,400) $ (3,408,456) $ (4,118,644) $ (727,744) $ 10,165,435 $ 7,402,005 $ 1,903,821
(concluded)
Town of Canton, Massachusetts Page 111 of 125 Comprehensive Annual Financial Report