Canton, Massachusetts · Saved source text
FY16 Comprehensive Annual Financial Report
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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, 2014
Actuarial cost method Projected Unit Credit
Amortization method Level dollar
Remaining amortization period: 30 years as of July 1, 2014 (open)
Interest discount rate: 4.2 percent
Inflation rate: Not disclosed by actuary
Healthcare/Medical cost trend rate: 9 percent grading down to 5 percent in year 2025 and
thereafter
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, 2016, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $740,988. 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, 2014, are as follows:
Town of Canton, Massachusetts Page 73 of 123 Comprehensive Annual Financial ReportSource page 84
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2016 $ 496,023 $ 12,792,812 $(12,547,090) $ 740,988 $ 740,988
Fiscal Year 2015 938,586 12,846,357 (13,289,677) 496,023 496,023
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, 2016,
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 $18.0 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, 2016, 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, 2016. 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
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. 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; $52,000 has been recorded as a governmental activities
liability; actual costs may be higher due to inflation, changes in technology, or changes in
regulations.
Town of Canton, Massachusetts Page 74 of 123 Comprehensive Annual Financial ReportSource page 85
H. Implementation of GASB pronouncements
Current Year Implementations –
In February 2015, the GASB issued GASB Statement No. 72, Fair Value Measurement and
Application. GASB 72 addressed accounting and financial reporting issues relating to fair value
measurements by providing guidance for determining a fair value measurement for financial
reporting purposes. The provisions of this Statement became effective for the Town in fiscal year
2016 and did not have a material effect on its financial statements.
In June 2015, the GASB issued GASB Statement No. 73, Accounting and Financial Reporting
for Pension and Related Assets That Are Not within the Scope of GASB Statement No. 68 and
Amendments to Certain Provision of GASB Statement No. 67 and No. 68. The objective of
GASB 73 was to improve the usefulness of information about pensions included in the general
purpose external financial reports of state and local governments for making decisions and
assessing accountability. This Statement established requirements for defined benefit pensions
that are not within the scope of Statement 68, as well as for the assets accumulated for purposes
of providing those pensions. In addition, it established requirements for defined contribution
pensions that are not within the scope of Statement 68. The provisions of this Statement were
effective for financial reporting periods beginning after June 15, 2015 (fiscal year 2016) – except
those provisions that address employers and governmental nonemployer contributing entities for
pensions that are not within the scope of GASB Statement No. 68, which are effective for fiscal
years beginning after June 15, 2016 (fiscal year 2017). The provisions of this Statement became
effective for the Town in fiscal year 2016 and did not have a material effect on its financial
statements.
In June 2015, the GASB issued GASB Statement No. 76, The Hierarchy of Generally Accepted
Accounting Principles for State and Local Governments. The objective of GASB 76 was to
identify, in the context of the current governmental financial reporting environment, the hierarchy
of generally accepted principles, or GAAP. This Statement reduced the GAAP hierarchy to two
categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative
literature in the event that the accounting treatment for a transaction or other event is not specified
within a source of authoritative GAAP. The provisions of this Statement became effective in
fiscal year 2016 and did not have a material effect on the Town’s financial statements.
In December 2015, the GASB issued GASB Statement No. 79, Certain External Investment
Pools and Pool Participants. GASB 79 established criteria for which an external investment pool
may qualify to measure its investment value at amortized cost versus fair value. The provisions
of this Statement became effective in fiscal year 2016 and did not have a material effect on the
Town’s financial statements.
Future 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 is 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 are effective for
financial reporting periods beginning after June 15, 2016 (fiscal year 2017). The Town is
currently evaluating whether adoption will have a material impact on the financial statements.
Town of Canton, Massachusetts Page 75 of 123 Comprehensive Annual Financial ReportSource page 86
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 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 are effective for
financial reporting periods beginning after June 15, 2016 (fiscal year 2017), although early
adoption is encouraged. The Town is currently evaluating whether adoption will have a material
impact on the financial statements.
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 are
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 are effective for financial reporting periods beginning after June 15, 2016 (fiscal
year 2017), although early adoption is encouraged. This Statement is not expected to have a
material effect on the Town’s financial statements.
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 are effective for financial reporting periods beginning
after June 15, 2016 (fiscal year 2017), although early adoption is encouraged. 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 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 issued
raised with respect to previously issued statements related to pensions. Specifically, the
Statement addressed issues regarding (i) the presentation of payroll-related measures in required
supplementary information, (ii) the selection of assumptions and the treatment of deviations from
the guidance in an Actuarial Standard of Practice for financial reporting and (iii) the classification
of payments made by employers to satisfy employee (plan member) contributions requirements.
The requirements for this Statement are effective for reporting periods beginning after June 15,
2016 (fiscal year 2017), except for the requirements of this Statement for the selection of
assumptions in a circumstance in which an employer’s pension liability is measured as of a date
Town of Canton, Massachusetts Page 76 of 123 Comprehensive Annual Financial ReportSource page 87
other than the employer’s most recent fiscal year end. In that circumstance, the requirements for
the selection of assumptions are effective for that employer in the first reporting period in which
the measurement date of the pension liability is on or after June 15, 2017; earlier application is
encouraged. The Town is currently evaluating whether adoption will have a material impact on
the financial statements.
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Required Supplementary Information Town of Canton, Massachusetts Page 79 of 123 Comprehensive Annual Financial Report
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TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
(dollar amounts are in thousands)
Year Ended December 31,
2015 2014
Town's proportion of the net pension
liability (asset) 7.65% 7.56%
Town's proportionate share of the net
pension liability (asset) $ 41,562 $ 39,227
Town's covered-employee payroll $ 20,288 $ 19,140
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 204.9% 204.9%
Plan fiduciary net position as a percentage
of the total pension liability 58.6% 60.1%
SCHEDULE OF THE TOWN'S CONTRIBUTIONS TO PENSION PLAN
(dollar amounts are in thousands)
Year Ended December 31,
2015 2014
Actuarially determined contribution $ 3,991 $ 3,571
Contributions in relation to the
actuarially determined contribution 3,991 3,571
Contribution deficiency (excess) $ - $ -
Town's covered-employee payroll $ 20,288 $ 19,140
Contributions as a percentage of
covered-employee payroll 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 123 Comprehensive Annual Financial ReportSource page 91
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
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,
2015 2014
Commonwealth's proportion of the
collective net pension liability (asset) 100.0% 100.0%
Town's proportion of the collective
net pension liability (asset) 0.0% 0.0%
Commonwealth's proportionate share of
the net pension liability (asset) $ 20,489,643 $ 15,896,354
Commonwealth's actuarially
determined contribution $ 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 123 Comprehensive Annual Financial ReportSource page 92
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2016
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)
7/1/2014 $ 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
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%
2011 11,610,000 4,262,000 37%
N/A - Information not currently available.
See accompanying independent auditors' report.
Town of Canton, Massachusetts Page 82 of 123 Comprehensive Annual Financial ReportSource page 93
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 66,195,133 $ 66,195,133 $ 67,267,824 67,267,824 1,072,691
Tax title - - 147,456 147,456 147,456
Payments in lieu of taxes 225,405 225,405 225,405 225,405 -
Motor vehicle excise 3,360,000 3,360,000 4,555,904 4,555,904 1,195,904
Meals taxes 300,000 300,000 349,710 349,710 49,710
Room occupancy excise 240,000 240,000 251,517 251,517 11,517
70,320,538 70,320,538 72,797,816 - 72,797,816 2,477,278
Intergovernmental:
State aid - chapter 70 5,126,669 5,126,669 5,126,669 5,126,669 -
State aid - charter school 5,358 5,358 3,969 3,969 (1,389)
State aid - unrestricted 1,976,870 1,976,870 1,976,870 1,976,870 -
State aid - veterans 143,237 143,237 143,180 143,180 (57)
State aid - exemptions 146,027 146,027 146,973 146,973 946
State aid - state owned land 37,903 37,903 37,903 37,903 -
State aid - other 100,000 100,000 261,549 261,549 161,549
MSBA school construction reimbursement 456,305 456,305 456,305 456,305 -
7,992,369 7,992,369 8,153,418 - 8,153,418 161,049
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 41,400 - 41,400 1,400
Public safety detail fees 30,000 30,000 41,874 - 41,874 11,874
Other departmental fees 80,000 80,000 116,549 - 116,549 36,549
Rental of municipal property 200,000 200,000 193,689 - 193,689 (6,311)
Conservation department revenues 32,000 32,000 77,276 - 77,276 45,276
Solar revenues 315,188 315,188 556,206 - 556,206 241,018
Other departmental revenues 70,000 70,000 212,876 - 212,876 142,876
767,188 767,188 1,239,870 - 1,239,870 472,682
Licenses and permits:
Alcohol licenses 70,000 70,000 77,035 - 77,035 7,035
Other licenses 80,000 80,000 84,018 - 84,018 4,018
Building permits 465,000 465,000 677,450 - 677,450 212,450
Other permits 135,000 135,000 196,567 - 196,567 61,567
750,000 750,000 1,035,070 - 1,035,070 285,070
Fines and forfeitures:
Motor vehicle fines 85,000 85,000 111,001 - 111,001 26,001
Other fines 15,000 15,000 8,539 - 8,539 (6,461)
100,000 100,000 119,540 - 119,540 19,540
Penalties and interest on taxes 300,000 300,000 254,164 - 254,164 (45,836)
Interest and investment income 80,000 80,000 96,624 - 96,624 16,624
Total Revenues 80,310,095 80,310,095 83,696,502 - 83,696,502 3,386,407
Town of Canton, Massachusetts Page 83 of 123 Comprehensive Annual Financial ReportSource page 94
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,253,070 1,086,031 978,186 94,269 1,072,455 13,576
Executive Branch Articles 59,329 50,000 48,070 - 48,070 1,930
Commitees and Commissions 26,049 26,049 12,528 - 12,528 13,521
Reserve Fund 500,000 142,000 - - - 142,000
Finance Department 1,004,333 1,014,449 912,690 82,339 995,029 19,420
Fianance Department Articles 82,428 82,428 64,907 17,516 82,423 5
Assessors 285,608 312,520 284,397 25,000 309,397 3,123
Town Clerk & Elections 223,038 224,174 224,071 - 224,071 103
Town Clerk & Elections Articles 42,500 42,500 4,544 37,956 42,500 -
Conservation Commission 125,688 127,971 121,461 562 122,023 5,948
Planning Board 63,117 63,117 52,845 3,033 55,878 7,239
Town Insurance 998,916 1,024,916 1,024,801 - 1,024,801 115
Total General Government 4,664,076 4,196,155 3,728,500 260,675 3,989,175 206,980
Public Safety
Fire Department 5,081,765 5,196,811 5,132,490 62,070 5,194,560 2,251
Fire Department Articles 326,000 326,000 325,104 - 325,104 896
Police Department 4,452,436 4,508,727 4,402,127 105,046 4,507,173 1,554
Police Department Articles 253,999 253,999 147,870 105,475 253,345 654
Building & Zoning 343,770 347,958 319,977 2,990 322,967 24,991
Building & Zoning Articles 25,000 25,000 24,792 - 24,792 208
Total Public Safety 10,482,970 10,658,495 10,352,360 275,581 10,627,941 30,554
Education:
School 36,129,577 36,129,577 36,108,374 17,309 36,125,683 3,894
School Articles 600,703 665,703 545,654 107,648 653,302 12,401
Blue Hill Regional 1,120,445 1,120,445 1,117,954 - 1,117,954 2,491
Norfolk County Agricultural HS 10,000 10,000 9,340 - 9,340 660
Total Education 37,860,725 37,925,725 37,781,322 124,957 37,906,279 19,446
Public Works:
Public Works 2,655,027 2,663,598 2,565,448 97,124 2,662,572 1,026
Public Works Articles 332,144 697,473 152,584 542,279 694,863 2,610
Street Lighting 144,900 144,900 141,082 570 141,652 3,248
Snow & Ice 555,240 723,240 721,663 767 722,430 810
Trash Collection 1,778,860 1,814,860 1,814,787 - 1,814,787 73
Total Public Works 5,466,171 6,044,071 5,395,564 640,740 6,036,304 7,767
Health and Human Services:
Health Department 339,403 345,076 344,884 - 344,884 192
Council on Aging 349,754 352,972 322,381 9,603 331,984 20,988
Council on Aging Articles 63,000 63,000 58,274 - 58,274 4,726
Veteran's Services 261,342 278,498 277,648 - 277,648 850
Total Health and Human Services 1,013,499 1,039,546 1,003,187 9,603 1,012,790 26,756
(continued)
Town of Canton, Massachusetts Page 84 of 123 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, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 559,609 637,123 637,051 - 637,051 72
Recreation & Playground Articles 75,983 105,984 60,530 45,454 105,984 -
Public Library 1,189,999 1,191,933 1,166,188 12,760 1,178,948 12,985
Public Library Articles 84,159 84,159 53,765 30,394 84,159 -
Total Culture and Recreation 1,909,750 2,019,199 1,917,534 88,608 2,006,142 13,057
Pension Benefits: 4,024,357 4,024,357 3,994,324 - 3,994,324 30,033
Employee Benefits:
Unemployment Compensation 100,000 100,000 100,000 - 100,000 -
Employer Share- Health 10,932,738 10,932,738 10,922,842 1,500 10,924,342 8,396
Employer Share- Life 60,000 60,000 58,637 - 58,637 1,363
Employer Share- OPEB 750,000 750,000 750,000 - 750,000 -
Total Employee Benefits 11,842,738 11,842,738 11,831,479 1,500 11,832,979 9,759
State and County Charges: 954,663 954,663 927,338 - 927,338 27,325
Debt Service: 5,033,817 5,033,817 4,992,666 - 4,992,666 41,151
Total Expenditures 83,252,766 83,738,766 81,924,274 1,401,664 83,325,938 412,828
Other Financing Sources (Uses)
Transfers in 2,267,931 2,617,931 2,661,690 2,661,690 43,759
Transfers out (482,786) (1,432,786) (1,432,786) (1,432,786) -
Total Other Financing Sources (Uses) 1,785,145 1,185,145 1,228,904 $ 1,228,904 43,759
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (1,157,526) (2,243,526) $ 3,001,132 $ 3,842,994
Other Budgetary Items
Use of unassigned fund balance $ 505,000 $ 1,591,000
Prior year encumbrances 652,654 652,654
Other amounts (128) (128)
Total Other Budgetary Items 1,157,526 2,243,526
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 85 of 123 Comprehensive Annual Financial ReportSource page 96
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2016
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 2016, Town Meeting approved various supplemental budgetary
appropriations which resulted in a net increase of approximately $1,400,000 from the original voted
budget. These appropriations were utilized for streetlights ($356,000), culture and recreation
($105,000), assessing ($25,000), water capital funding ($350,000) and increased stabilization reserves
($600,000).
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, 2016, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 83,696,502
Stabilization revenue $ - $ 71,384 71,384
Change in accruing tax revenues 59,394 - 59,394
Change in recording tax refunds payable (625,000) - (625,000)
On behalf payments 6,038,162 - 6,038,162
Revenues on a GAAP basis $ 5,472,556 $ 71,384 $ 89,240,442
Expenditures on a budgetary basis $ 81,924,274
Reclass of enterprise indirects cost to expenditures $ (1,013,836) $ - (1,013,836)
On behalf payments 6,038,162 - 6,038,162
Expenditures on a GAAP basis $ 5,024,326 $ - $ 86,948,600
Other financing sources (uses) on a budgetary basis $ 1,228,904
Reclass of enterprise indirects cost to expenditures $ (1,013,836) $ - (1,013,836)
Stabilization transfers - 600,000 600,000
Other financing sources (uses) on a GAAP basis $ (1,013,836) $ 600,000 $ 815,068
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Combining Statements Town of Canton, Massachusetts Page 87 of 123 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 89 of 123 Comprehensive Annual Financial ReportSource page 100
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.
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2016
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 347,755 $ 763,162 $ 541,354 $ 1,593,272 $ 233,227
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 24,908 - - - -
Total Assets $ 372,663 $ 763,162 $ 541,354 $ 1,593,272 $ 233,227
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 513 $ 3,114 $ 10,000 $ 12,125 $ 18,560
Accrued payroll and withholdings 52,927 - 339 23,924 14,223
Due to other funds - - - - -
Total Liabilities 53,440 3,114 10,339 36,049 32,783
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 319,223 760,048 531,015 1,557,223 200,444
Unassigned - - - - -
Total Fund Balances 319,223 760,048 531,015 1,557,223 200,444
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 372,663 $ 763,162 $ 541,354 $ 1,593,272 $ 233,227
Town of Canton, Massachusetts Page 92 of 123 Comprehensive Annual Financial ReportSource page 103
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ 1,134,112 $ 1,389,978 $ - $ 522,901 $ - $ 2,760,325 $ 9,286,086
- - 712,147 - - - 712,147
- 4,935 - - - - 4,935
- 2,312 - - - - 2,312
433,456 - - - - 99,033 532,489
- - 177,534 46,801 681,037 - 930,280
$ 1,567,568 $ 1,397,225 $ 889,681 $ 569,702 $ 681,037 $ 2,859,358 $ 11,468,249
$ - $ 1,137 $ 65,135 $ 40,310 $ 80,250 $ 18,221 $ 249,365
- 663 697 27,498 - 14,035 134,306
- - 100,357 - 598,667 - 699,024
- 1,800 166,189 67,808 678,917 32,256 1,082,695
- 7,247 - - - - 7,247
433,456 - - - - 99,033 532,489
433,456 7,247 - - - 99,033 539,736
- - - - - - -
1,134,112 1,388,178 845,425 501,894 2,120 2,840,184 10,079,866
- - (121,933) - - (112,115) (234,048)
1,134,112 1,388,178 723,492 501,894 2,120 2,728,069 9,845,818
$ 1,567,568 $ 1,397,225 $ 889,681 $ 569,702 $ 681,037 $ 2,859,358 $ 11,468,249
(Continued)
Town of Canton, Massachusetts Page 93 of 123 Comprehensive Annual Financial ReportSource page 104
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2016
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 $ 47,777 $ 183,029 $ 23,637 $ 254,443 $ 9,540,529
Investments 413,996 - 144,899 558,895 1,271,042
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 4,935
Tax liens and foreclosures - - - - 2,312
Departmental and other - - - - 532,489
Intergovernmental - - - - 930,280
Total Assets $ 461,773 $ 183,029 $ 168,536 $ 813,338 $ 12,281,587
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ - $ - $ - $ - $ 249,365
Accrued payroll and withholdings - - - - 134,306
Due to other funds - - - - 699,024
Total Liabilities - - - - 1,082,695
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - 7,247
Unavailable revenues - other - - - - 532,489
Total Deferred Inflows of Resources - - - - 539,736
Fund Balances:
Nonspendable 437,797 21,553 12,235 471,585 471,585
Restricted 23,976 161,476 156,301 341,753 10,421,619
Unassigned - - - - (234,048)
Total Fund Balances 461,773 183,029 168,536 813,338 10,659,156
Total Liabilities and Fund Balances $ 461,773 $ 183,029 $ 168,536 $ 813,338 $ 12,281,587
(Concluded)
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2016
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Revenues:
Property taxes $ - $ - $ - $ - $ -
Intergovernmental 345,507 - 24,971 - -
Charges for services 785,056 - - - -
Departmental and other - - 190,824 1,802,944 373,485
Investment income 1,356 - - - -
Contributions and donations - - 30,811 - -
Total Revenues 1,131,919 - 246,606 1,802,944 373,485
Expenditures:
Current:
General government - - 1,156 - -
Public safety - 19,146 9,834 - -
Education 1,003,515 - - 1,683,881 -
Public works - 588,975 - - -
Health and human services - - 95,428 - -
Culture and recreation - - 48,972 - 332,889
Employee benefits - - - - -
Total Expenditures 1,003,515 608,121 155,390 1,683,881 332,889
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 128,404 (608,121) 91,216 119,063 40,596
Other Financing Sources (Uses):
Insurance recoveries - - - - -
Transfers in - - - - -
Transfers out (120,770) - (35,000) - -
Total Other Financing Sources (Uses) (120,770) - (35,000) - -
Net Change in Fund Balances 7,634 (608,121) 56,216 119,063 40,596
Fund Balances - Beginning of Year 311,589 1,368,169 474,799 1,438,160 159,848
Fund Balances - End of Year $ 319,223 $ 760,048 $ 531,015 $ 1,557,223 $ 200,444
Town of Canton, Massachusetts Page 96 of 123 Comprehensive Annual Financial ReportSource page 107
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ - $ 521,506 $ - $ - $ - $ - $ 521,506
- 145,336 662,964 2,515,518 1,216,132 - 4,910,428
962,798 - - - - - 1,747,854
- 883 - - - 861,006 3,229,142
- 5,741 13,405 - - 563 21,065
- - - - - 426,145 456,956
962,798 673,466 676,369 2,515,518 1,216,132 1,287,714 10,886,951
- - 3,065 - - 92,613 96,834
- - 353,150 - - 758,882 1,141,012
- - - 2,777,637 - 298,163 5,763,196
- - 190,666 - 1,216,132 19,882 2,015,655
- - 46,226 - - 19,585 161,239
- 350,566 26,060 - - 14,726 773,213
- - - - - 98,441 98,441
- 350,566 619,167 2,777,637 1,216,132 1,302,292 10,049,590
962,798 322,900 57,202 (262,119) - (14,578) 837,361
- - - - - 2,354,811 2,354,811
- - - - - 80,000 80,000
(1,083,325) - (43,759) - - (1,998,853) (3,281,707)
(1,083,325) - (43,759) - - 435,958 (846,896)
(120,527) 322,900 13,443 (262,119) - 421,380 (9,535)
1,254,639 1,065,278 710,049 764,013 2,120 2,306,689 9,855,353
$ 1,134,112 $ 1,388,178 $ 723,492 $ 501,894 $ 2,120 $ 2,728,069 $ 9,845,818
(Continued)
Town of Canton, Massachusetts Page 97 of 123 Comprehensive Annual Financial ReportSource page 108
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2016
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Revenues:
Property taxes $ - $ - $ - $ - $ 521,506
Intergovernmental - - - - 4,910,428
Charges for services - - - - 1,747,854
Departmental and other - - - - 3,229,142
Investment income 5,362 1,734 2,057 9,153 30,218
Contributions and donations 25,600 5,900 - 31,500 488,456
Total Revenues 30,962 7,634 2,057 40,653 10,927,604
Expenditures:
Current:
General government - - - - 96,834
Public safety - - - - 1,141,012
Education - - - - 5,763,196
Public works - - - - 2,015,655
Health and human services - - - - 161,239
Culture and recreation - 10,862 - 10,862 784,075
Employee benefits - - - - 98,441
Total Expenditures - 10,862 - 10,862 10,060,452
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 30,962 (3,228) 2,057 29,791 867,152
Other Financing Sources (Uses):
Insurance recoveries - - - - 2,354,811
Transfers in - - - - 80,000
Transfers out (5,000) - - (5,000) (3,286,707)
Total Other Financing Sources (Uses) (5,000) - - (5,000) (851,896)
Net Change in Fund Balances 25,962 (3,228) 2,057 24,791 15,256
Fund Balances - Beginning of Year 435,811 186,257 166,479 788,547 10,643,900
Fund Balances - End of Year $ 461,773 $ 183,029 $ 168,536 $ 813,338 $ 10,659,156
(Concluded)
Town of Canton, Massachusetts Page 98 of 123 Comprehensive Annual Financial ReportSource page 109
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 99 of 123 Comprehensive Annual Financial ReportSource page 110
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2016
Total
Health Workers' Unemployment Building Internal
Claims Compensation Claims Insurance Service Funds
Assets:
Current assets:
Cash and cash equivalents $ 2,225,012 $ 27,874 $ 197,088 $ - $ 2,449,974
Investments 3,093,680 - - 453,090 3,546,770
Receivables, net of allowance for uncollectibles:
Departmental and other 191,375 - - - 191,375
Deposit held by third party 122,921 - - - 122,921
Total Current Assets 5,632,988 27,874 197,088 453,090 6,311,040
Liabilities:
Current liabilities:
Warrants and accounts payable 167,567 - - - 167,567
Health claims incurred but not reported 740,988 - - - 740,988
Total Current Liabilities 908,555 - - - 908,555
Net Position:
Unrestricted 4,724,433 27,874 197,088 453,090 5,402,485
TOTAL NET POSITION $ 4,724,433 $ 27,874 $ 197,088 $ 453,090 $ 5,402,485
Town of Canton, Massachusetts Page 100 of 123 Comprehensive Annual Financial ReportSource page 111
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2016
Total
Health Workers' Unemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Operating Revenues:
Employee contributions $ 3,424,160 $ - $ - $ - $ 3,424,160
Employer contributions 10,109,630 - 100,000 - 10,209,630
Stop loss reimbursements 497,643 - - - 497,643
Total Operating Revenues 14,031,433 - 100,000 - 14,131,433
Operating Expenditures:
Employee benefits 14,072,295 1,550 40,142 - 14,113,987
Total Operating Expenditures 14,072,295 1,550 40,142 - 14,113,987
Operating Income (Loss) (40,862) (1,550) 59,858 - 17,446
Nonoperating Revenues (Expenses):
Investment Income 40,887 274 1,309 6,166 48,636
Income (Loss) Before Transfers 25 (1,276) 61,167 6,166 66,082
Change in Net Position 25 (1,276) 61,167 6,166 66,082
Fund Balances - Beginning of Year 4,724,408 29,150 135,921 446,924 5,336,403
Fund Balances - End of Year $ 4,724,433 $ 27,874 $ 197,088 $ 453,090 $ 5,402,485
Town of Canton, Massachusetts Page 101 of 123 Comprehensive Annual Financial ReportSource page 112
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2016
Total
Health Workers' Umemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Cash Flows From Operating Activities:
Receipts from interfund services provided $ 14,159,936 $ - $ 100,000 $ - $ 14,259,936
Payments for interfund services used (14,138,546) (1,810) (44,803) - (14,185,159)
Net Cash Provided by (Used in) Operating Activities 21,390 (1,810) 55,197 - 74,777
Cash Flows From Investing Activities:
Investment income 40,887 274 1,309 6,166 48,636
Investment of operating cash (835,310) - - (6,166) (841,476)
Net Cash Provided By Investing Activities (794,423) 274 1,309 - (792,840)
Net Change in Cash and Cash Equivalents (773,033) (1,536) 56,506 - (718,063)
Cash and Cash Equivalents:
Beginning of the Year 2,998,045 29,410 140,582 - 3,168,037
End of the Year $ 2,225,012 $ 27,874 $ 197,088 $ - $ 2,449,974
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss) (40,862) (1,550) 59,858 - 17,446
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables 128,503 - - - 128,503
Deposits held by third party (64,521) - - - (64,521)
Accounts payable and accrued expenses (246,695) (260) (4,661) - (251,616)
Health claims incurred but not reported 244,965 - - - 244,965
Net Cash Provided by (Used in) Operating Activities $ 21,390 $ (1,810) $ 55,197 $ - $ 74,777
Town of Canton, Massachusetts Page 102 of 123 Comprehensive Annual Financial ReportSource page 113
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 103 of 123 Comprehensive Annual Financial ReportSource page 114
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2016
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents $ 1,322,170 $ 823,416 $ (771,768) $ 1,373,818
Liabilities
Current liabilities:
Warrants payable $ 30,013 $ 723,793 $ (740,537) $ 13,269
Agency liabilities 1,292,157 824,247 (755,855) 1,360,549
Total Liabilities $ 1,322,170 $ 1,548,040 $ (1,496,392) $ 1,373,818
Town of Canton, Massachusetts Page 104 of 123 Comprehensive Annual Financial ReportSource page 115
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. 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 117
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
2007 2008 2009 2010 2011 2012 (1) 2013 2014 2015 (2) 2016
Governmental activities:
Net investment in capital assets…………………………….
$ 50,777,183 $ $ 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
Restricted………………………………………………………………………….. 3,824,685 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
Unrestricted……………………………………………………………… 23,955,254 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)
Total governmental activities net position………………………………………..
$ 78,557,122 $ 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
Business-type activities:
Net investment in capital assets…………………………….
$ 11,952,283 $ 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
Unrestricted………………………………………………………………. 6,124,469 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
Total business-type activities net position…………………………….
$ 18,076,752 $ 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
Primary government:
Net investment in capital assets…………………………….
$ 62,729,466 $ 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
Restricted………………………………………………………………………. 3,824,685 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
Unrestricted…………………………………………………………… 30,079,723 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)
Total primary government net position………………………………………………….
$ 96,633,874 $ 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
(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 107 of 123 Comprehensive Annual Financial ReportSource page 120
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (1)
Expenses -
Governmental activities:
General government…...…………………………………………………… $ 4,365,873 $ $ 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
Public safety…..……………………………………………………………… 12,151,151 12,501,298 14,102,861 14,815,007 14,845,911 15,490,670 16,060,024 16,625,726 15,312,760 16,584,359
Education……..…………………………………………………………………. 42,723,738 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
Public works……...………………………………………………………………. 4,267,313 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
Health and human services……………...…………………………………………………………….
850,334 810,319 983,217 1,094,171 1,133,985 1,221,862 1,314,086 1,346,871 1,609,060 1,536,513
Culture and recreation………...…………………………………………………………..
2,397,635 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
Interest…………………………………………………………………… 2,654,749 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
Total government activities expenses…………………………………….. 69,410,793 73,729,510 83,384,891 88,278,680 89,811,968 91,572,943 95,906,456 99,458,469 88,334,724 96,800,409
Business-type activities:
Water…………………………………………………………………… 3,570,802 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
Sewer…………………………………………………………………… 4,202,101 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
Rink…………………………………………………………………… 344,198 357,203 458,269 486,775 504,265 496,394 390,072 353,666 405,752 79,670
Total business-type activities expenses…………………………………….. 8,117,101 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
Total primary government expenses………………………………………. $ 77,527,894 $ 82,499,892 $ 92,868,237 $ 97,985,051 $ 100,104,314 $ 102,609,959 $ 107,322,989 $ 110,403,684 $ 99,409,918 $ 108,498,179
Program Revenues -
Governmental activities:
Charges for services:
General government………………………………………………… $ 371,696 $ $ 368,111 $ $ 400,721 $ $ 919,070 $ $ 385,778 $ 325,814 $ 554,773 $ 978,216 $ 881,979 $ 776,450
Public safety……………………………………………………………….. 2,392,923 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
Education………………………………………………………………. 1,647,771 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
Public works………………………………………………………………. 85,033 71,911 69,082 129,056 92,920 125,694 210,642 227,108 281,025 316,164
Human services………………………………………………………………. 42,808 50,162 42,354 41,527 46,661 66,462 85,978 91,484 151,953 97,633
Culture and recreation……………………………………………………… 343,737 376,991 377,306 379,669 346,254 528,937 396,771 359,497 399,396 468,374
Operating grants and contributions…………………………………… 12,582,237 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
Capital grants and contributions………………………………………….. 1,011,723 2,251,419 3,291,089 1,170,098 162,497 1,659,561 550,999 611,930 2,832,069 1,562,827
Total government activities program revenues...…………………………….. 18,477,928 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
Business-type activities:
Charges for services - Water…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
4,308,918 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
Charges for services - Sewer…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
4,491,655 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
Charges for services - Rink…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
370,110 356,953 391,991 404,449 430,878 446,111 431,671 429,555 367,098 -
Capital grant and contributions…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
46,294 39,941 2,362 497,305 - - - 463,500 - -
Operating grants and contributions……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
- - - - - - - 6,250 37,338 2,093
Total business-type activities program revenues……………………………………..
9,216,977 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
Total primary government program revenues……………………………………….
$ 27,694,905 $ 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
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..
$ (50,932,865) $ (52,903,452) $ (60,971,745) $ (66,519,294) $ (69,215,914) $ (67,642,233) $ (72,101,654) $ (73,150,197) $ (64,628,936) $ (71,824,390)
Business-type activities……………………....…………………………….. 1,099,876 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
Total primary government net (expense)/program revenue……………………………………….
$ (49,832,989) $ (50,969,127) $ (60,586,292) $ (64,857,925) $ (67,146,885) $ (66,332,306) $ (71,039,149) $ (70,206,547) $ (61,728,577) $ (69,918,084)
(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 in fiscal year 2016. (continued)
Town of Canton, Massachusetts Page 108 of 123 Comprehensive Annual Financial ReportSource page 121
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Revenues and other Changes in Net Position -
Governmental activities:
Real estate and personal property taxes,
net of tax refunds payable…………………………………………………. $ 45,318,005 $ $ 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
Tax liens………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
137,473 204,174 186,291 210,666 349,982 597,670 421,708 591,950 213,952 204,512
Motor vehicle excise taxes…………………………………………………… 3,364,215 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
Penalties and interest on taxes…………………………………………….. 206,817 188,163 246,950 317,161 305,814 263,511 323,695 344,012 310,740 254,164
Payments in lieu of taxes……………………………………………………………… 160,827 191,827 194,559 199,299 199,225 219,205 224,311 214,543 222,149 225,405
Hotel and meals taxes……………………………………………………………… - - - - - 38,309 460,905 568,317 581,621 601,227
Grants and contributions not restricted to specific programs………………………………………………………………
3,607,674 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
Unrestricted investment income……………………………………………. 955,736 909,900 488,112 212,187 195,037 166,466 201,635 194,375 218,877 246,862
Gain (loss) on sale of capital assets……………………………………………. (3,087) - - - - - - (34,580) - -
Insurance recoveries……………………………………………………………… - - - - - - - - - 2,190,705
Miscellaneous……………………………………………………………… 202,070 189,784 245,317 312,573 471,501 382,614 188,275 - - -
Transfers……………………………………………………………… 907,569 969,101 1,009,929 1,054,170 1,101,525 1,166,968 1,063,245 1,232,584 - (1,824,747)
Total governmental activities…………………………………………………………………
54,857,299 55,324,478 57,911,982 60,476,264 63,004,010 64,090,818 67,966,982 70,691,304 71,866,993 75,457,046
Business-type activities:
Unrestricted investment income……………………………………………. - - - - - - 16,768 20,083 27,019 38,296
Transfers……………………………………………………………… (907,569) (969,101) (1,009,929) (1,054,170) (1,101,525) (1,166,968) (1,063,245) (1,232,584) - 1,824,747
Total business-type activities….………..………………………………….. (907,569) (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
Total primary government general revenues and other
changes in net position…………………………………………………. $ 53,949,730 $ 54,355,377 $ 56,902,053 $ 59,422,094 $ 61,902,485 $ 62,923,850 $ 66,920,505 $ 69,478,803 $ 71,894,012 $ 77,320,089
Changes in Net Assets
Governmental activities……………………....…………………………….. $ 3,924,434 $ 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
Business-type activities……………………....…………………………….. 192,307 965,224 (624,476) 607,199 967,504 142,959 16,028 1,731,149 2,927,378 3,769,349
Total primary government changes in net position……………………………………….
$ 4,116,741 $ 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
(concluded)
Town of Canton, Massachusetts Page 109 of 123 Comprehensive Annual Financial ReportSource page 122
FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
General Fund:
Restricted………………………………. $ - $ - $ 7,167,329 $ 6,595,314 $ 6,033,902 $ 5,483,092 $ 5,160,240 $ - $ - $ -
Committed…………………………….. 249,985 279,918 166,540 240,545 202,643 328,343 470,608 358,148 364,246 886,722
Assigned…………………………….. 1,567,445 1,309,512 1,233,461 1,363,064 1,165,952 456,548 361,035 893,993 793,408 1,846,942
Unassigned…………………………… 6,078,459 6,585,875 5,784,251 5,193,760 5,825,529 7,118,096 8,276,920 9,815,657 11,430,875 12,961,775
Total general fund……………………………..$ 7,895,889 $ 8,175,305 $ 14,351,581 $ 13,392,683 $ 13,228,026 $ 13,386,079 $ 14,268,803 $ 11,067,798 $ 12,588,529 $ 15,695,439
All Other Governmental Funds:
Nonspendable……………………………….$ 294,174 $ 325,985 $ 338,785 $ 356,385 $ 394,385 $ 404,785 $ 419,585 $ 432,785 $ 445,985 $ 471,585
Restricted………………………………. 9,414,499 9,080,027 7,628,322 7,744,716 6,504,706 7,000,533 8,707,938 11,544,545 10,939,315 10,584,773
Unassigned…………………………… (2,230,411) (2,275,117) (1,077,197) (1,116,827) (1,301,454) (1,735,507) (468,758) (1,187,828) (632,310) (2,674,755)
Total all other governmental funds……………..
$ 7,478,262 $ 7,130,895 $ 6,889,910 $ 6,984,274 $ 5,597,637 $ 5,669,811 $ 8,658,765 $ 10,789,502 $ 10,752,990 $ 8,381,603
Note: The Town implemented GASB 54 in fiscal year 2011. All previous years (2007 - 2010) data presented were restated to conform to the GASB 54 presentation.
Town of Canton, Massachusetts Page 110 of 123 Comprehensive Annual Financial ReportSource page 123
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Revenues:
Property taxes, net of tax refunds…………………………………………………….
$ 45,259,651 $ $ 46,128,837 $ $ 49,516,225 $ $ 52,217,093 $ $ 55,345,629 $ 56,246,748 $ 59,063,932 $ 61,544,401 $ 63,767,588 $ 67,223,724
Tax title……………………………………………………………………………. 313,789 62,100 187,083 193,859 224,631 371,909 219,962 782,539 351,721 147,456
Motor vehicle and other excise taxes………………………………………… 3,364,215 3,426,512 3,515,812 3,080,023 3,289,549 3,165,288 3,473,978 3,714,753 4,119,643 4,555,904
Hotel and meals taxes…………………………………………………… - - - - - 38,309 460,905 568,317 581,621 601,227
Charges for services……………………………………………………… 1,633,782 1,488,941 1,552,111 1,611,311 1,704,553 1,598,646 1,474,669 1,580,929 1,627,494 1,747,854
Penalties and interest on taxes……………………………………… 206,817 188,163 246,950 317,161 305,814 263,511 323,695 344,012 310,740 254,164
Payments in lieu of taxes…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
160,827 191,827 194,559 199,299 199,225 219,205 224,311 214,543 222,149 225,405
Fines and forfeitures…………………………………………… 200,872 189,562 165,991 139,458 165,051 134,626 109,411 141,311 113,467 119,540
Intergovernmental…………………………………………………….. 15,337,495 17,973,491 20,586,005 18,613,887 17,825,334 20,571,148 19,712,460 20,403,915 16,564,548 19,102,008
Intergovernmental - school construction grants……………………………………..
1,300,000 - 7,167,329 - - - - - 1,206,545 -
Departmental and other………………………………………………. 3,215,566 2,836,910 2,827,470 3,394,781 2,768,345 2,971,011 3,456,976 4,073,470 4,119,749 4,506,265
Licenses and permits……………………………………….. 626,776 669,240 452,758 658,905 646,450 912,233 1,043,909 817,829 1,282,441 1,035,070
Contributions……………………………………………………………. 1,082,522 624,919 256,730 416,991 362,965 349,244 398,308 2,146,011 1,245,410 488,456
Investment income……………………………………………………….. 844,984 794,586 429,449 187,717 167,170 141,807 142,946 163,941 171,180 198,226
Total Revenue…………………………………………………
73,547,296 74,575,088 87,098,472 81,030,485 83,004,716 86,983,685 90,105,462 96,495,971 95,684,296 100,205,299
Expenditures:
General government…………………………………………………………….
3,119,956 3,728,731 4,706,731 4,187,558 4,062,501 3,811,225 3,905,506 4,255,876 3,980,026 3,936,471
Public safety……………………………………………………………… 9,899,016 8,907,119 9,285,602 9,364,149 9,427,684 9,579,726 10,087,953 10,630,184 10,724,190 11,138,061
Education………………………………………………………………… 30,676,469 30,142,662 33,314,956 34,967,636 36,008,019 35,975,887 37,524,669 39,417,729 40,479,930 42,896,291
Public works…………………………………………………………….. 3,173,939 4,048,452 3,548,575 4,125,380 4,353,404 3,845,990 4,449,435 4,503,498 5,515,513 5,592,699
Health and human services…………………………………………………………..
627,328 626,827 697,221 767,077 805,351 861,386 853,534 892,603 1,182,773 1,106,152
Culture and recreation…………………………………………………
1,732,136 1,742,977 1,784,546 1,771,572 1,830,239 1,818,050 1,793,002 1,880,085 2,062,646 2,647,844
Pension benefits…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
8,036,169 9,252,069 9,901,744 10,482,808 11,104,953 11,325,041 11,733,329 11,915,349 7,321,245 9,802,225
Employee benefits…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
7,674,681 8,293,944 8,482,345 9,107,798 9,973,437 10,403,739 10,327,387 11,152,708 11,675,327 11,482,452
State and county charges………………………………………… 811,346 894,634 924,550 932,878 849,149 874,821 959,538 959,868 944,583 927,338
Capital outlay and other……………………………………………………………….
5,835,422 4,039,135 7,296,078 2,495,021 3,771,064 6,577,524 2,369,095 2,930,119 8,445,932 6,844,641
Debt service:
Principal……………………………………………………………… 3,851,275 3,827,020 3,929,020 3,947,750 4,029,141 4,306,220 4,385,178 4,520,404 3,819,900 3,931,624
Interest……………………………………………………………………. 2,185,381 2,111,050 2,010,966 1,955,945 1,838,977 1,661,391 1,677,804 1,619,994 1,166,454 1,061,042
Total Expenditures………………………………………………………..
77,623,118 77,614,620 85,882,334 84,105,572 88,053,919 91,041,000 90,066,430 94,678,417 97,318,519 101,366,840
Excess of revenues over (under) expenditures…………………………………………………
(4,075,822) (3,039,532) 1,216,138 (3,075,087) (5,049,203) (4,057,315) 39,032 1,817,554 (1,634,223) (1,161,541)
Other Financing Sources (Uses):
Issuance of refunding bonds…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
- 1,084,000 - - 5,398,612 - - 15,185,400 - 515,000
Payments of refunded bonds…………………………………………………………….. - - - - (5,540,000) - - (21,739,649) - (526,148)
Payments to refunded bond escrow agent……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
- (1,070,000) - - - - - - - -
Issuance of bonds and notes………………...………………………………………… - 1,907,000 3,541,000 1,087,261 1,964,388 2,932,908 2,603,159 175,000 2,861,150 1,367,000
Premium from bonds and notes………………...…………………………………………
13,360 81,480 85,862 69,122 261,192 136,455 166,242 2,258,843 153,042 11,148
Capital lease financing…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
- - 82,362 - 62,192 51,211 - - 104,250 -
Proceeds from sale of capital assets…………………………………………………
268,063 - - - - - - - - -
Insurance recoveries……………………………………………………………………………… - - - - - - - - - 2,354,811
Transfers in……………………………………………………………………………… 2,343,853 2,827,203 2,728,433 2,445,096 2,865,322 2,854,525 3,835,589 3,988,699 1,856,376 2,294,746
Transfers out…………………………………………………………………………… (1,436,284) (1,858,102) (1,718,504) (1,390,926) (1,513,797) (1,687,557) (2,772,344) (2,756,115) (1,856,376) (4,119,493)
Total other financing sources (uses)…………………………………………………………………..
1,188,992 2,971,581 4,719,153 2,210,553 3,497,909 4,287,542 3,832,646 (2,887,822) 3,118,442 1,897,064
Net change in fund balance………………………………………………………………….
$ (2,886,830) $ (67,951) $ 5,935,291 $ (864,534) $ (1,551,294) $ 230,227 $ 3,871,678 $ (1,070,268) $ 1,484,219 $ 735,523
Debt service as a percentage of noncapital expenditures……………………………………………….
8.41% 8.07% 7.56% 7.23% 6.96% 7.07% 6.91% 6.69% 5.61% 5.28%
Town of Canton, Massachusetts Page 111 of 123 Comprehensive Annual Financial Report