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Latest Bond Issuance Report February 2018
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Source page 1
S&P Global Ratings: AAA
(See “Rating”)
FINAL OFFICIAL STATEMENT DATED FEBRUARY 26, 2018
In the opinion of Locke Lord LLP, Bond Counsel, based upon an analysis of existing law and assuming, among other
matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax
purposes under the Internal Revenue Code of 1986, as amended (the “Code”). Interest on the Bonds will not be included
in computing the alternative minimum taxable income of individuals or, except as described herein, corporations. Under
existing law, interest on the Bonds is exempt from Massachusetts personal income taxes, and the Bonds are exempt from
Massachusetts personal property taxes. The Bonds will be designated as “qualified tax-exempt obligations” for purposes
of Section 265(b)(3) of the Code. Bond Counsel expresses no opinion regarding any other tax consequences related to the
ownership or disposition of, or the accrual or receipt of interest on, the Bonds. See “Tax Exemption” herein. (See “Tax
Exemption” herein.)
$4,710,000
TOWN OF CANTON
Massachusetts
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS
Dated: March 15, 2018 Due: May 15, 2019 – 2030
MATURITIES, AMOUNTS, INTEREST RATES, PRICES AND/OR YIELDS
Principal Interest Price/ CUSIP Principal Interest Price/ CUSIP
Year Amount* Rate Yield 138267 Year Amount* Rate Yield 138267
2019 $425,000 5.00% 1.37% E62 2025 $400,000 5.00% 2.20% F46
2020 445,000 5.00 1.54 E70 2026 400,000 5.00 2.32 F53
2021 420,000 3.00 1.69 E88 2027 400,000 3.00 2.42 F61
2022 420,000 5.00 1.83 E96 2028 395,000 3.00 2.50 F79
2023 420,000 5.00 1.99 F20 2029 305,000 3.00 2.65 F87
2024 395,000 5.00 2.09 F38 2030 285,000 3.00 2.80 F95
Principal of the Bonds will be payable on May 15 of the years in which the Bonds mature. Interest from the date of the Bonds will be
payable on November 15, 2018, and semi-annually thereafter on each May 15 and November 15. The Bonds are subject to redemption
prior to their stated dates of maturity as described herein.
The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in the name of Cede & Co.,
as Bondowner and nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository
for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof.
(See “Book-Entry Transfer System” herein.)
The legality of the Bonds will be approved by Locke Lord LLP, Boston, Massachusetts, Bond Counsel to the Town. UniBank Fiscal
Advisory Services, Inc., Whitinsville, Massachusetts, serves as financial advisor to the Town. It is expected that the Bonds, in definitive
form, will be delivered to DTC, or the offices of its custodial agent, on or about March 15, 2018, against payment in Federal Reserve
funds.
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TABLE OF CONTENTS
Page Page
Issue Summary Statement .................................... ii Other Post-Employment Benefits ........................ 22
Property Taxation ................................................ 22
Notice of Sale....................................................... iii Tax Rate and Valuation - General ....................... 23
Valuations ............................................................ 23
Official Statement ................................................ 1 Tax Rates ............................................................. 23
Largest Taxpayers ............................................... 24
Introduction .......................................................... 1 Tax Levies ........................................................... 24
Part I. The Bonds ................................................. 2 Levy General ..................................................... 24
Description of the Bonds ............................... 2 Taxation to Meet Deficits .................................. 24
Record Date ................................................... 2 Tax Limitations ................................................. 25
Book-Entry Transfer System ......................... 2 Initiative Petitions .............................................. 26
DTC Practices ............................................... 4 Calculation of Tax Levies and Levy Limits ...... 26
Authorization and Use of Proceeds ............... 4 Tax Collections and Abatements ......................... 27
Sources and Uses of Funds............................ 5 Town Finances..................................................... 29
Optional Redemption .................................... 5 Budget Comparison ........................................... 30
Mandatory Redemption ................................. 5 State Aid .............................................................. 30
Notice of Redemption ................................... 6 State School Building Assistance Program ......... 31
Securities and Remedies................................ 6 Motor Vehicle Excise .......................................... 32
Opinion of Bond Counsel .............................. 8 Other Taxes ......................................................... 32
Tax Exemption. ............................................. 8 Community Preservation Act .............................. 33
Risk of Future Legislative Change ................ 9 Tax Increment Financing for Development
Rating ............................................................ 10 Districts ........................................................... 33
Continuing Disclosure ................................... 10 Investments .......................................................... 34
Undesignated General Fund Balance
Part II. The Town ................................................. 11 and Free Cash .................................................... 34
Constitutional Status and Form of Stabilization Fund................................................ 35
Government ............................................... 11 Collective Bargaining .......................................... 35
Governing Bodies and Officers ..................... 11 Physical and Economic Characteristics .............. 35
Services ......................................................... 11 Principal Employers ............................................ 40
Authorization of General Employment by Industry ..................................... 40
Obligation Bonds and Notes ....................... 11 Building Permits .................................................. 40
Debt Limits .................................................... 12 Other Data ........................................................... 41
Types of Obligations ..................................... 12 Public School Enrollments .................................. 44
Debt ............................................................... 14 Litigation ............................................................. 45
Revenue Anticipation Borrowing ................. 14
Authorized Unissued Debt Appendix A. Summary Financial Statements..... A-1
and Prospective Financing ........................ 15
Appendix B. Fiscal 2017 Audit for the Town
Five Years Outstanding Debt ...................... 16
Of Canton ........................................................ B-1
Bonded Debt vs. Population,
Valuations and Income .............................. 17 Appendix C. Proposed Form of
Annual Debt Service ................................... 17 Legal Opinion of Bond Counsel ..................... C-1
Contracts........................................................ 18
Overlapping Debt .......................................... 19 Appendix D. Proposed Form of
Retirement Plan ............................................. 20 Continuing Disclosure Certificate .................. D-1
The information set forth herein has been obtained from the Town and from other sources which are believed to be
reliable but it is not guaranteed as to accuracy or completeness. Any statements made in this Preliminary Official
Statement involving matters of opinion, whether or not expressly stated, are intended merely as opinion and not as
representations of fact. The information and expressions of opinion in this Preliminary Official Statement are subject to
change without notice. Neither the delivery of this Preliminary Official Statement nor any sale of the Bonds shall, under
any circumstances, create any implication that there has been no material change in the affairs of the Town since the date
of this Preliminary Official Statement.Source page 4
ISSUE SUMMARY STATEMENT
Issuer: Town of Canton, Massachusetts.
Date of Sale: Monday, February 26, 2018, until 12:00 noon (Eastern Standard Time).
Method of Sale: Electronic Bids via Parity.
Location of Sale: UniBank Fiscal Advisory Services, Inc., 49 Church Street, Whitinsville, MA.
Issue: $4,710,000 General Obligation Municipal Purpose Loan of 2018 Bonds, Book-Entry
Only (See “Book-Entry Transfer System”, herein).
Purpose: Current refunding of outstanding bonds dated May 15, 2010, and the funding of various
municipal purposes (See “Authorization and Use of Proceeds” herein).
Minimum Bid: No bid of less than 101.25 percent of the par amount of the Bonds and accrued
interest, if any, will be considered.
Dated Date of Bonds: Date of delivery (on or about March 15, 2018).
Maturity Date of Bonds: Serially on May 15, 2019 through 2030, as detailed herein.
Interest Payable: November 15 and May 15, commencing November 15, 2018.
Redemption: The Bonds are subject to redemption prior to their stated dates of maturity as described
herein.
Credit Rating: S&P Global Ratings has assigned a rating of AAA to the Bonds.
Security: The Bonds are valid general obligations of the Town of Canton, Massachusetts and the
principal of and interest on the Bonds are payable from taxes which may be levied upon
all taxable property within the territorial limits of the Town subject to the limit imposed
by Chapter 59, Section 21 of the General Laws.
Tax Exemption: Refer to “Tax Exemption” and Appendix C – “Proposed Form of Legal Opinion” herein.
Continuing Disclosure: Refer to “Continuing Disclosure” and Appendix D – “Proposed Form of Continuing
Disclosure Certificate” herein.
Bank Qualification: The Bonds will be designated as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
Paying and Escrow Agent: U.S. Bank National Association, Boston, Massachusetts
Legal Opinion: Locke Lord LLP, Boston, Massachusetts
Delivery and Payment: It is expected that the Bonds will be delivered to DTC, or to the offices of its custodial
agent, against payment to the account of the Town in Federal Reserve funds on or about
March 15, 2018.
Issue Contacts: James R. Murgia, Finance Director/Treasurer, Town of Canton,
Telephone # (781) 575-6612
Kimberly Mooers, Senior Vice President, UniBank Fiscal Advisory Services, Inc.,
Telephone # (508) 849-4307
Richard A. Manley, Jr., Esq., Locke Lord LLP,
Telephone # (617) 239-0384
Additional Information: Refer to the Preliminary Official Statement herein dated February 16, 2018.
.
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NOTICE OF SALE
TOWN OF CANTON
Massachusetts
$4,830,000*
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS
The Town of Canton, Massachusetts, will receive electronic proposals until 12:00 noon (Eastern Standard Time), on
Monday, February 26, 2018
at UniBank Fiscal Advisory Services, Inc., Whitinsville, Massachusetts, for the purchase of the following described
Bonds:
$4,830,000* GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS, payable May 15 of
the years and in the amounts as follows:
Due Principal Due Principal
May 15 Amount* May 15 Amount*
2019 $435,000 2025 $410,000
2020 455,000 2026 410,000
2021 430,000 2027 410,000
2022 435,000 2028 405,000
2023 440,000 2029 305,000
2024 410,000 2030 285,000
____________________
* Preliminary, subject to change.
Details of the Bonds
The Bonds will be dated their date of delivery. Interest from the date of the Bonds will be payable on November 15,
2018, and semi-annually thereafter on each May 15 and November 15. Principal of and interest on the Bonds will be paid
as described below.
The Bonds will be issued by means of a book-entry system with no physical distribution of the Bonds made to the public.
One certificate for each maturity of the Bonds will be issued to The Depository Trust Company, New York, New York
(DTC), and immobilized in their custody. A book-entry system will be employed, evidencing ownership of the Bonds in
principal amounts of $5,000 or any integral multiple thereof, with transfers of ownership effected on the records of DTC
and its participants pursuant to rules and procedures adopted by DTC and its participants. The winning bidder, as a
condition to delivery of the Bonds, shall be required to deposit the Bonds with DTC, registered in the name of Cede &
Co. Principal of and interest on the Bonds will be payable to DTC or its nominee as registered owner of the Bonds.
Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal
and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and
other nominees of beneficial owners. Neither the Town nor the Paying Agent will be responsible or liable for
maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such
participants.
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Bank Qualification
The Bonds will be designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
Redemption of the Bonds
The Bonds maturing in the years 2019 through 2026, inclusive, are not subject to redemption prior to their stated dates of
maturity. The Bonds maturing on and after May 15, 2027, are subject to redemption prior to their stated dates of
maturity, at the option of the Town, on and after May 15, 2026, either in whole or in part at any time, and if in part, by lot
within a maturity, at par plus accrued interest to the date set for redemption.
Term Bonds
For Bonds maturing on and after May 15, 2027, bidders may specify that all of the principal amount of such Bonds
having two or more consecutive maturities, may in lieu of having separate maturity dates, be combined to comprise one
or more Term Bonds, and shall be subject to mandatory redemption or mature at par as described above, in each of the
years and in the principal amounts specified in the foregoing maturity schedule. Each mandatory redemption shall be
allocated to the payment of the Term Bond having the earliest subsequent maturity date.
Term Bonds, if any, shall be subject to mandatory redemption on May 15 in the earliest year prior to the stated maturity
of such Term Bond (the particular Bonds of such maturity to be redeemed to be selected by lot), as indicated in the
foregoing maturity schedule at the principal amount thereof plus accrued interest to the redemption date, without
premium.
Form of Bid and Basis of Award
Electronic proposals will be submitted through i-Deal®. If any provisions in this Notice of Sale conflict with information
provided by i-Deal®, this Notice of Sale shall control. Further information about i-Deal®, including any fees charged,
may be obtained from i-Deal® at (212) 849-5000. The Town assumes no responsibility or liability for bids submitted
through i-Deal®. An electronic bid made in accordance with this Notice of Sale shall be deemed an irrevocable offer to
purchase the Bonds in accordance with the terms provided in this Notice of Sale and shall be binding upon the bidder as
if made by a signed and sealed written bid delivered to the Town.
Bidders shall state the rate or rates of interest per annum which the Bonds are to bear in a multiple of 1/8th or 1/20th of
1% but shall not state (a) more than one interest rate for any Bonds having a like maturity, and (b) any interest rate which
exceeds the interest rate stated for any other Bonds by more than 3%.
No bid of less than 101.25 percent of the par amount of the Bonds and accrued interest, if any, will be considered.
A good faith deposit is not required.
As between proposals which comply with this Notice of Sale, the award will be to the bidder who offers to purchase all
the Bonds at the lowest net effective interest rate to the Town. Such interest rate shall be determined on a true interest
cost (TIC) basis, which shall mean that rate which, as of March 15, 2018, discounts semi-annually all future payments on
account of principal and interest to the price bid, not including interest accrued to the date of delivery, if any, which
accrued interest shall be paid by the successful bidder. The award of the Bonds to the winning bidder will not be
effective until the bid has been approved by the Board of Selectmen and Treasurer of the Town.
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Bond Insurance
The Town has not contracted for the issuance of any policy of municipal bond insurance for the Bonds. If the Bonds
qualify for issuance of any such policy or commitment therefor, any purchase of such insurance or commitment shall be
at the sole option and expense of the bidder. Proposals shall not be conditioned upon the issuance of any such policy or
commitment. Any failure of the Bonds to be so insured or of any such policy or commitment to be issued shall not in any
way relieve the purchaser of the contractual obligations arising from the acceptance of a proposal for the purchase of the
Bonds. Should the successful bidder purchase municipal bond insurance, all expenses associated with such policy or
commitment will be borne by the bidder, except for the fee paid to S&P Global Ratings for the rating of the Bonds. Any
such fee paid to S&P Global Ratings would be borne by the Town.
Par Amount Subject to Change
Within the limits set forth herein, the Town reserves the right to adjust the aggregate principal amount of the Bonds, and
to adjust the principal amount of individual maturities of the Bonds, even if the aggregate principal amount is unchanged.
The purpose of such adjustments, if any, will be (1) to limit the amount of the current refunding proceeds, including
premium, to the amount needed to effect the current refunding to be undertaken with a portion of the proceeds of the
Bonds and to pay the costs of issuance and to do so without an over-issuance of Bonds and (2) with reference to the non-
refunding portion of the issue, to size the issue such that proceeds, including premium, will fund the project and issuance
costs with a minimum of excess funds, and to satisfy the amortization constraints of the General Laws.
Immediately following the opening of the bids, the Town, acting through its financial advisor, will contact the apparent
successful bidder by telephone to obtain the initial reoffering prices of each maturity of the Bonds, the premium to be
paid on account of bond insurance, if any, and other information relevant to the sale of the Bonds. The apparent
successful bidder shall then immediately deliver to the Town written confirmation by facsimile transmission as to such
reoffering prices and bond insurance premium, if any. Upon being supplied with such initial reoffering prices and bond
insurance premiums, if any, the Town will determine the need to otherwise re-allocate the principal maturities of the
Bonds. The Town expects to advise the successful bidder as soon as possible, but no later than 3:00 p.m., Eastern
Standard Time, on the date of the sale of the amount, if any, of any changes in either the aggregate principal amount
(which changes will be allocated among several maturities of the Bonds in a manner to be specified by the Town) or
individual maturities (assuming no changes in the aggregate principal amount of the Bonds).
Any adjustment in either the aggregate principal amount or the individual maturities of the Bonds will be in an amount of
$5,000 or an integral multiple thereof and will be made only as necessary to effect the refunding in accordance with the
Town’s objectives and to comply with the amortization requirements imposed by state law. Those objectives pertain to
issuing a final par amount of the Bonds that will be sufficient to refund the bonds to be refunded and to pay all related the
costs of issuance, given the price bid by the successful bidder, and to avoid an over issuance of the Bonds.
Bidders are advised that bidding with a large premium could result in a reduction in the par amount of the Bonds.
The dollar amount bid by the successful bidder will be adjusted to reflect any adjustment in the aggregate principal
amount of the Bonds to be issued. The adjusted bid price will reflect changes in the dollar amount of the underwriter’s
discount and original issue discount/premium, if any, but will not change the per-bond underwriter’s discount as
calculated from the bid and reoffering prices required to be delivered to the Town as stated herein. The successful bidder
may not withdraw its bid or change the interest rates bid or initial reoffering prices as a result of any changes made to the
principal amounts within these limits.
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Establishment of Issue Price
The successful bidder shall assist the Town in establishing the issue price of the Bonds and shall execute and deliver to
the Town on the Closing Date an “issue price” or similar certificate, in the applicable form set forth in Exhibit 1 to this
Notice of Sale, setting forth the reasonably expected initial offering prices to the public or the sales price of the Bonds
together with the supporting pricing wires or equivalent communications, or, if applicable, the amount bid, with such
modifications as may be appropriate or necessary, in the reasonable judgment of the successful bidder, the Town and
Bond Counsel. All actions to be taken by the Town under this Notice of Sale to establish the issue price of the Bonds
may be taken on behalf of the Town by UniBank Fiscal Advisory Services, Inc. (the “Financial Advisor”) and any notice
or report to be provided to the Town may be provided to the Financial Advisor.
Competitive Sale Requirements. If the competitive sale requirements (“competitive sale requirements”) set forth in
Treasury Regulation § 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the
Bonds) have been satisfied, the Town will furnish to the successful bidder on the Closing Date a certificate of the
Financial Advisor, which will certify each of the following conditions to be true:
1. the Town has disseminated this Notice of Sale to potential underwriters in a manner that is
reasonably designed to reach potential underwriters;
2. all bidders had an equal opportunity to bid;
3. the Town received bids from at least three underwriters of municipal bonds who have established
industry reputations for underwriting new issuances of municipal bonds; and
4. the Town awarded the sale of the Bonds to the bidder who submitted a firm offer to purchase the
Bonds at the highest price (or lowest interest cost), as set forth in this Notice of Sale.
Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as
specified in the bid. Unless a bidder notifies the Town prior to submitting its bid by facsimile or email to the Financial
Advisor (508-234-1938 or kimberly.mooers@unibank.com) or in its bid submitted via Parity, that it will not be an
“underwriter” (as defined below) of the Bonds, by submitting its bid, each bidder shall be deemed to confirm that it has
an established industry reputation for underwriting new issuances of municipal bonds. Unless the bidder has notified the
Town that it will not be an “underwriter” (as defined below) of the Bonds, in submitting a bid, each bidder is deemed to
acknowledge that it is an “underwriter” that intends to reoffer the Bonds to the public.
In the event that the competitive sale requirements are not satisfied, the Town shall so advise the successful bidder.
Failure to Meet the Competitive Sale Requirements – Option A – The Successful Bidder Intends to Reoffer the
Bonds to the Public and the Hold the Price Rule is Not Used. If the competitive sale requirements are not satisfied
and the successful bidder intends to reoffer the Bonds to the public, the Town will use the first price at which 10% of a
maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity, applied on a maturity-by-
maturity basis, of the Bonds. The successful bidder shall advise the Financial Advisor if any maturity of the Bonds
satisfies the 10% test as of the date and time of the award of the Bonds. Under this option, the Town will not require
bidders to comply with the “hold-the-offering-price rule” set forth in the applicable Treasury Regulations and therefore
does not intend to use the initial offering price to the public as of the Sale Date of any maturity of the Bonds as the issue
price of that maturity, if the competitive sale requirements are not met.
If the competitive sale requirements are not satisfied, then until the 10% test has been satisfied as to each maturity of the
Bonds or all of the Bonds are sold to the public, the successful bidder agrees to promptly report to the Financial Advisor
the prices at which the unsold Bonds of each maturity have been sold to the public, which reporting obligation shall
continue, whether or not the Closing Date has occurred, until the 10% test has been satisfied for each maturity of the
Bonds or until all the Bonds of a maturity have been sold. The successful bidder shall be obligated to report each sale of
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Bonds to the Financial Advisor until notified in writing by the Town or the Financial Advisor that it no longer needs to
do so.
By submitting a bid and if the competitive sale requirements are not met, each bidder confirms that: (i) any agreement
among underwriters, any selling group agreement and each retail distribution agreement (to which the bidder is a party)
relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain
language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a
party to such retail distribution agreement, as applicable, to report the prices at which it sells to the public the unsold
Bonds of each maturity allotted to it until it is notified by the successful bidder that either the 10% test has been satisfied
as to the Bonds of that maturity or all Bonds of that maturity have been sold to the public, if and for so long as directed
by the successful bidder and as set forth in the related pricing wires and (ii) any agreement among underwriters relating
to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language
obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial
sale of the Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to report
the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the
successful bidder or such underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all
Bonds of that maturity have been sold to the public if and for so long as directed by the successful bidder or such
underwriter and as set forth in the related pricing wires.
Sales of any Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for
purposes of this Notice of Sale. Further, for purposes of this Notice of Sale:
“public” means any person other than an underwriter or a related party,
“underwriter” means (A) any person that agrees pursuant to a written contract with the Town (or with the
lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the
public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person
described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of
a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to
the public), and
“related party” – a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter
and the purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting
power or the total value of their stock, if both entities are corporations (including direct ownership by
one corporation of another), (ii) more than 50% common ownership of their capital interests or profits
interests, if both entities are partnerships (including direct ownership by one partnership of another), or
(iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the
capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the
other entity is a partnership (including direct ownership of the applicable stock or interests by one entity
of the other).
Failure to Meet the Competitive Sale Requirements – Option B – The Successful Bidder Intends to Reoffer the
Bonds to the Public and Agrees to Hold the Price of Maturities of Bonds for Which the 10% Test in Option A Is
Not Met as of the Sale Date. The successful bidder may, at its option, notify the Financial Advisor in writing, which
may be by email (the “Hold the Price Notice”), not later than 4:00 p.m. on the Sale Date, that it has not sold 10% of the
maturities of the Bonds listed in the Hold the Price Notice (the “Unsold Maturities”) and that the successful bidder will
not offer the Unsold Maturities to any person at a price that is higher than the initial offering price to the public during
the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date
or (ii) the date on which the successful bidder has sold at least 10% of the applicable Unsold Maturity to the public at a
price that is no higher than the initial offering price to the public. If the successful bidder delivers a Hold the Price
Notice to the Financial Advisor, the successful bidder must provide to the Issuer on or before the Closing Date, in
addition to the certification described in Option A above, evidence that each underwriter of the Bonds, including
viiSource page 10
underwriters in an underwriting syndicate or selling group, has agreed in writing to hold the price of the Unsold
Maturities in the manner described in the preceding sentence.
Failure to Meet the Competitive Sale Requirements and/or The Successful Bidder Does Not Intend to Reoffer the
Bonds to the Public – Option C. If the successful bidder has purchased the Bonds for its own account and will not
distribute or resell the Bonds to the public, then, whether or not the competitive sale requirements were met, the
reoffering price certificate will recite such facts and identify the price or prices at which the purchase of the Bonds was
made.
Legal Opinion
The legality of the Bonds will be approved by Locke Lord LLP, Boston, Massachusetts, whose opinion will be furnished
to the purchaser without charge. The scope of engagement of Bond Counsel does not extend to passing upon or assuming
responsibility for the accuracy or adequacy of any statements made in the Official Statement other than matters expressly
set forth as their opinion, and they make no representation that they have independently verified the same.
Documents to be Delivered at Closing
It shall be a condition to the obligation of the successful bidder to accept delivery of and pay for the Bonds that the bidder
shall be furnished, without cost, with (a) the approving opinion of the firm of Locke Lord LLP, Boston, Massachusetts,
substantially in the form of Appendix C of the Preliminary Official Statement dated February 16, 2018, included herein,
(b) a certificate in form satisfactory to said firm dated as of March 15, 2018, the delivery date of the Bonds and receipt of
payment therefor, to the effect that there is no litigation pending or, to the knowledge of the signers thereof, threatened
affecting the validity of the Bonds or the power of the Town to levy and collect taxes to pay them, (c) a certificate of the
Town Treasurer to the effect that, to the best of his knowledge and belief, the Preliminary Official Statement did not, as
of its date and the date of sale, and the Final Official Statement referred to below, did not as of its date and does not as of
the date of delivery of the Bonds, contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made therein, in the light of the circumstances under which they were made, not misleading; and
(d) a Continuing Disclosure Certificate substantially in the form of Appendix D of the Preliminary Official Statement
dated February 16, 2018, included herein.
CUSIP Identification Numbers
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such
numbers on any Bond, nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser
thereof to accept delivery of and pay for the Bonds. The Town assumes no responsibility for any CUSIP Service Bureau
or other charge that may be imposed for the assignment of such numbers.
Continuing Disclosure
In order to assist bidders in complying with Rule 15c2-12(b)(5) promulgated by the Securities and Exchange
Commission, the Town will undertake to provide annual reports and notices of certain significant events. A description
of this undertaking is set forth in the Preliminary Official Statement.
Delivery
The Bonds, in definitive form, will be delivered to the purchaser at DTC, or the offices of its custodial agent, on or about
March 15, 2018, against payment in Federal Reserve funds.
viiiSource page 11
Additional Information and Copies of the Official Statement
Additional information concerning the Town and the Bonds is contained in the Preliminary Official Statement dated
February 16, 2018, to which prospective bidders are directed. The Preliminary Official Statement is provided for
informational purposes only and is not a part of this Notice of Sale. Such Preliminary Official Statement is deemed final
by the Town as of its date for purposes of SEC Rule 15c2-12(b)(1).
Copies of the Preliminary Official Statement for the Bonds may be obtained from Kimberly W. Mooers, Senior Vice
President, UniBank Fiscal Advisory Services, Inc., 49 Church Street, Whitinsville, Massachusetts 01588, telephone (508)
849-4307.
Within seven (7) business days following the award of the Bonds in accordance herewith, up to twenty-five (25) copies of
a Final Official Statement will be furnished to the successful bidder. Additional copies may be obtained at the
purchaser's expense.
The right is reserved to reject any or all bids and to reject any bid not complying with this Notice of Sale and, so far as
permitted by law, to waive any irregularity with respect to any proposal.
TOWN OF CANTON
Massachusetts
/s/ James R. Murgia
Finance Director/Treasurer
Dated: February 16, 2018
ixSource page 12
EXHIBIT 1
EXHIBIT TO THE NOTICE OF SALE
Issue Price Certificate for Use If the Competitive
Sale Requirements Are Met
$4,830,000i
TOWN OF CANTON, MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS
Dated March 15, 2018
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF SUCCESSFUL BIDDER] (the “Successful Bidder ”),
hereby certifies as set forth below with respect to the sale of the above-captioned obligations (the “Bonds”) of the Town
of Canton, Massachusetts (the “Issuer”).
Reasonably Expected Initial Offering Prices.
As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the Successful
Bidder are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices
for the Maturities of the Bonds used by the Successful Bidder in formulating its bid to purchase the Bonds. Attached as
Schedule B is a true and correct copy of the bid provided by the Successful Bidder to purchase the Bonds.
The Successful Bidder was not given the opportunity to review other bids prior to submitting its bid.
The bid submitted by the Successful Bidder constituted a firm offer to purchase the Bonds.
Defined Terms.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds
with the same maturity date but different stated interest rates, are treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or
corporation) other than an Successful Bidder or a related party to an Successful Bidder. The term “related party” for
purposes of this certificate generally means any two or more persons who have greater than 50 percent common
ownership, directly or indirectly.
“Sale Date” means the first day on which there is a binding contract in writing for the sale of a Maturity of the
Bonds. The Sale Date of the Bonds is February 26, 2018.
“Underwriter” means (i) any person, including the Successful Bidder, that agrees pursuant to a written contract
with the Issuer (or with the lead Successful Bidder to form an underwriting syndicate) to participate in the initial sale of
the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person
described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of
a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate
represents the Successful Bidder’ s interpretation of any laws, including specifically Sections 103 and 148 of the Internal
i Preliminary, subject to change as described in Notice of Sale.
xSource page 13
Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the
foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax
Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Locke Lord LLP
in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income
tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it
may give to the Issuer from time to time relating to the Bonds.
Dated: February 26, 2018 [SUCCESSFUL BIDDER]
By:
Name:
Title:
______________________________________
MODEL ISSUE PRICE DOCUMENTATION REPORT
Schedule A – Expected Reoffering Prices (to be attached)
Schedule B – Copy of Successful Bidder’s Bid (to be attached)
xiSource page 14
OPTION A
Issue Price Certificate for Use If the Competitive Sale Requirements Are
Not Met and the Hold the Price Rule Is Not Imposed
$4,830,000ii
TOWN OF CANTON, MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS
Dated March 15, 2018
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of ______________________ (the (“Successful Bidder”)[, on behalf of itself and
[NAMES OF OTHER UNDERWRITERS] hereby certifies as set forth below with respect to the sale and issuance of the
above-captioned obligations (the “Bonds”).
Sale of the Bonds.
As of the date of this certificate, [except as set forth in paragraph 2 below,] for each Maturity of the Bonds, the
first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in
Schedule A.
[Only use the next paragraph if the 10% test has not been met or all of the Bonds have not been sold for one or more
Maturities of Bonds as of the Closing Date.]
For each Maturity of the Bonds as to which no price is listed in Schedule A, as set forth in the Notice of Sale for
the Bonds, until the 10% test has been satisfied as to each Maturity of the Bonds or all of the Bonds are sold to the
Public, the Successful Bidder agrees to promptly report to the Town of Canton’s financial advisor, UniBank Fiscal
Advisory Services, Inc. (the “Financial Advisor”) the prices at which the unsold Bonds of each Maturity have been sold
to the Public, which reporting obligation shall continue after the date hereof until the 10% test has been satisfied for each
Maturity of the Bonds or until all the Bonds of a Maturity have been sold. The Successful Bidder shall continue to report
each sale of Bonds to the Financial Advisor until notified by email or in writing by the State or the Financial Advisor that
it no longer needs to do so.
Defined Terms.
“Issuer” means the Town of Canton.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds
with the same maturity date but different stated interest rates, are treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or
corporation) other than an Successful Bidder or a related party to an Successful Bidder. The term “related party” for
purposes of this certificate generally means any two or more persons who have greater than 50 percent common
ownership, directly or indirectly.
“Underwriter” means (i) any person, including the Successful Bidder, that agrees pursuant to a written contract
with the Issuer (or with the lead Successful Bidder to form an underwriting syndicate) to participate in the initial sale of
the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person
described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of
a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
ii Preliminary, subject to change as described in Notice of Sale.
xiiSource page 15
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the
Successful Bidder’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code
of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing
information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate
and with respect to compliance with the federal income tax rules affecting the Bonds, and by Locke Lord LLP in
connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax
purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may
give to the Issuer from time to time relating to the Bonds.
Dated: February 26, 2018 [SUCCESSFUL BIDDER]
By: ________________________________
Name:
Title:
Schedule A – Sale Prices (to be attached)
xiiiSource page 16
OPTION B
Issue Price Certificate for Use If the Competitive Sale Requirements Are
Not Met and the Hold the Price Rule Is Imposed
$4,830,000iii
TOWN OF CANTON, MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS
DATED March 15, 2018
ISSUE PRICE CERTIFICATE AND RECEIPT
The undersigned, on behalf of ______________________ (the (“[Successful Bidder][Representative]”), on behalf of itself [and
[NAMES OF OTHER UNDERWRITERS] ]hereby certifies as set forth below with respect to the sale and issuance of the above-
captioned obligations (the “Bonds”) of the Town of Canton, Massachusetts (the “Issuer”).
Sale of the Bonds.
As of the date of this certificate, [except as set forth in paragraph 2 below,] for each Maturity of the Bonds, the first price at
which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A.
[Only use the next paragraph if the 10% test has not been met as of the Sale Date.]
[For each Maturity of the Bonds as to which no price is listed in Schedule A (the “Unsold Maturities”), as set forth in the
Notice of Sale for the Bonds, the [Successful Bidder][Representative] and any other Underwriter did not reoffer the Unsold
Maturities until the earlier of (i) __________, 2018 or (ii) the date on which the [Successful Bidder][Representative] or any other
Underwriter sold at least 10% of each Unsold Maturity at a price that is no higher than the initial offering price to the Public.]
Defined Terms.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the
same maturity date but different stated interest rates, are treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation) other
than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means
any two or more persons who have greater than 50 percent common ownership, directly or indirectly.
“Underwriter” means (i) any person, including the [Successful Bidder][Representative], that agrees pursuant to a written
contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds
to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i)
of this paragraph to participate in the initial sale of the Series A Bonds to the Public (including a member of a selling group or a
party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
Receipt.
The [Successful Bidder][Representative] hereby acknowledges receipt from the Issuer of the Bonds and further
acknowledges receipt of all certificates, opinion and other documents required to be delivered to the [Successful
Bidder][Representative], before or simultaneously with the delivery of the Series A Bonds, which certificates, opinions and other
documents are satisfactory to the [Successful Bidder][Representative].
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the
[Successful Bidder’s][Representative’s] interpretation of any laws, including specifically Sections 103 and 148 of the Internal
Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing
information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with
iii Preliminary, subject to change as described in Notice of Sale.Source page 17
respect to compliance with the federal income tax rules affecting the Bonds, and by Locke Lord LLP in connection with rendering
its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the
Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating
to the Bonds. The [Successful Bidder][Representative] hereby acknowledges receipt from the Issuer of the bonds if the Issue and
further acknowledges receipt of all certificates, opinion and other documents required to be delivered to the [Successful
Bidder][Representative], before or simultaneously with the delivery of such bonds of the Issue, which certificates, opinions and
other documents are satisfactory to the [Successful Bidder][Representative].
Dated: February 26, 2018 [SUCCESSFUL BIDDER][REPRESENTATIVE]
By:_______________________________
Name:
Title:
_________________________________
Schedule A – Sale Prices (to be attached)
iiSource page 18
OFFICIAL STATEMENT
TOWN OF CANTON
MASSACHUSETTS
$4,710,000
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2018 BONDS
INTRODUCTION
This Official Statement is provided for the purpose of presenting certain information relating to the Town of Canton,
Massachusetts (the “Town”) in connection with the sale of $4,710,000 General Obligation Municipal Purpose Loan of
2018 Bonds, dated their date of delivery (March 15, 2018) (the “Bonds”) of the Town.
The Bonds are being offered for sale at public bidding and a Notice of Sale dated February 16, 2018, has been furnished
to prospective bidders. Reference is hereby made to the Notice of Sale for the terms and conditions of bidding.
The Bonds will be general obligations of the Town for which its full faith and credit are pledged. They are not
guaranteed by The Commonwealth of Massachusetts (the “Commonwealth”) or any other entity. The security for the
Bonds is more fully described under the caption “Security and Remedies” herein. See also the caption “Opinion of Bond
Counsel”.
Questions regarding information contained in this Official Statement or other matters should be directed to the following:
James R. Murgia, Finance Director/Treasurer, Town of Canton, (781) 575-6612; Kimberly W. Mooers, Senior Vice
President, UniBank Fiscal Advisory Services, Inc., (508) 849-4307; or Richard A. Manley, Jr., Esq., Locke Lord LLP,
(617) 239-0384.
The information contained herein has been obtained from the sources indicated or from the Town.
1Source page 19
PART I
THE BONDS
DESCRIPTION OF THE BONDS
The Bonds will be dated their date of delivery and will mature on May 15 of the years and in the principal amounts as
follows:
Due Principal Due Principal
May 15 Amount May 15 Amount
2019 $425,000 2025 $400,000
2020 445,000 2026 400,000
2021 420,000 2027 400,000
2022 420,000 2028 395,000
2023 420,000 2029 305,000
2024 395,000 2030 285,000
The Bonds will bear interest at the rate or rates per annum specified by the successful bidder.
Principal and semi-annual interest will be paid by U.S. Bank National Association, Boston, Massachusetts, or its
successor acting as paying agent (the “Paying Agent”) for the Town. Interest from the date of the Bonds will be payable
on November 15, 2018, and semi-annually thereafter on each May 15 and November 15 until maturity. So long as The
Depository Trust Company, New York, New York (“DTC”) or its nominee, Cede & Co., is the Bondowner, such
payments of principal of and interest on the Bonds will be made directly to such Bondowner. Disbursement of such
payments to the DTC Participants is the responsibility of DTC and disbursement of such payments to the Beneficial
Owners is the responsibility of the DTC Participants and Indirect Participants, as more fully described herein.
The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in the name of
Cede & Co., as Bondowner and nominee for DTC. DTC will act as securities depository for the Bonds. Purchases of the
Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will
not receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the Bondowner, as
nominee of DTC, references herein to the Bondowners or registered owner shall mean Cede & Co., as aforesaid, and
shall not mean the Beneficial Owners (as defined herein) of the Bonds.
RECORD DATE
The record date for each payment of interest on the Bonds (the “Record Date”) is the last business day of the month
preceding the interest payment date, provided that, under certain circumstances, the Paying Agent may establish a special
record date. The special record date may not be more than twenty (20) days before the date set for payment. The Paying
Agent will mail notice of a special record date to the bondholders at least ten (10) days before the special record date.
BOOK-ENTRY TRANSFER SYSTEM
The Depository Trust Company, New York, New York (“DTC”) will act as securities depository for the Bonds. The
Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or
such other name as may be requested by an authorized representative of DTC. One-fully registered Bond certificate will
be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited
with DTC.
2Source page 20
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal
debt issues, and money market instruments (from over 100 countries) that DTC's participants (“Direct Participants”)
deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities
transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct
Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants
include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain
other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”).
DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing
Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries.
Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers,
banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct
Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P Global Ratings rating of AA+. The
DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information
about DTC can be found at www.dtcc.com.
Purchases of securities deposited with DTC must be made by or through Direct Participants, which will receive a credit
for such securities on DTC's records. The ownership interest of each actual purchaser of each security deposited with
(“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not
receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in
securities held by DTC are to be accomplished by entries made on the books of Direct and Indirect Participants acting on
behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in
securities held by DTC, except in the event that use of the book-entry system for such securities is discontinued.
To facilitate subsequent transfers, all securities deposited by Direct Participants with DTC are registered in the name of
DTC's partnership nominee, Cede & Co., or such other name as requested by an authorized representative of DTC. The
deposit of securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect
any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the securities held by it;
DTC's records reflect only the identity of the Direct Participants to whose accounts such securities are credited, which
may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping
account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices for the Bonds shall be sent to DTC. If less than all of a maturity is being redeemed, DTC’s practice
is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent to vote with respect to securities held by DTC
unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to an issuer of securities as soon as possible after the record date. The Omnibus Proxy assigns
Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts such securities are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on securities held by DTC will be made to Cede & Co., or such other nominee as may be
requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's
receipt of funds and corresponding detail information from the issuer of such securities or its paying agent, on the
3Source page 21
payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held
for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such
Participant and not of DTC (nor its nominee), the issuer of such securities or its paying agent, subject to any statutory or
regulatory requirements as may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such
other nominee as may be requested by an authorized representative of DTC) is the responsibility of the issuer of such
securities or its paying agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable
notice to the Town or its paying agent. Under such circumstances, in the event that a successor depository is not obtained,
physical certificates are required to be printed and delivered.
The Town may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities
depository). In that event, physical certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the
Town believes to be reliable, but the Town takes no responsibility for the accuracy thereof.
DTC PRACTICES
The Town can make no assurances that DTC, Direct Participants, Indirect Participants or other nominees of the
Beneficial Owners of the Bonds will act in a manner described in this Official Statement. DTC is required to act
according to rules and procedures established by DTC and its participants which are on file with the Securities and
Exchange Commission.
AUTHORIZATION AND USE OF PROCEEDS
Of the Bonds, $1,937,000 (1) is authorized as outlined in the table below (the “Project Bonds”):
Statutory Authorization
In the Project Original Reference Date, Prop 2 1/2
Purpose Bonds Authorization (MGL Ch. 44) Exclusion Date Article #
Hansen School Roof Repair $ 744,000 $ 1,740,000 44 7(1) 5/10/2017 30
Departmental Equipment Bonds 1,048,000 1,153,000 44 7(1) 5/8/2017 12
Total $ 1,792,000 $ 2,893,000
___________________
(1) A total of $145,000 in bond premium will be utilized for these projects.
In addition, $2,918,000 of the Bonds is authorized pursuant to Massachusetts General Laws, Chapter 44, Section 21A, as
amended, and a vote of the Board of Selectmen expected to be taken on March 6, 2018, (the “Refunding Bonds”) in order
to current refund and redeem on May 15, 2018, $3,410,000 outstanding principal amount of the Town’s $5,763,829
General Obligation Municipal Purpose Loan of 2010 Bonds, dated May 15, 2010, and maturing in the years 2019 through
2030, inclusive (the “Refunded Bonds”), at the par amount being redeemed and to pay related costs of issuance.
4Source page 22
The Refunded Bonds include the following:
Principal Maturity Coupon CUSIP
$ 295,000 May 15, 2019 2.75% 138267UQ0
290,000 May 15, 2020 2.875 138267UR8
260,000 May 15, 2021 3.125 138267US6
260,000 May 15, 2022 3.125 138267UT4
260,000 May 15, 2023 3.25 138267UU1
260,000 May 15, 2024 3.375 138267UV9
260,000 May 15, 2025 3.50 138267UW7
255,000 May 15, 2026 3.55 138267UX5
1,000,000 May 15, 2030** 4.00 138267VB2
$3,140,000
_______________
** Term maturity.
SOURCES AND USES OF FUNDS
The following table summarizes the estimated sources and uses of funds.
Sources of Funds
Par amount of the Project Bonds $1,792,000.00
Par amount of the Refunding Bonds 2,918,000.00
Original Bond premium (discount) 445,137.15
Total Sources of Funds $5,155,137.15
Uses of Funds
Deposit to the Project Account $1,937,000.00
Redemption of the 2010 Refunded Bonds 3,140,000.00
Underwriter’s discount 14,458.25
Cost of Issuance 60,000.00
Contingency 3,678.90
Total Uses of Funds $5,155,137.15
OPTIONAL REDEMPTION
Bonds maturing in the years 2019 through 2026, inclusive, are not subject to redemption prior to their stated dates of
maturity. Bonds maturing on and after May 15, 2027, are subject to redemption prior to maturity, at the option of the Town,
on and after May 15, 2026, either in whole or in part at any time, and if in part, by lot within a maturity, at par plus accrued
interest to the date set for redemption.
MANDATORY REDEMPTION
If the successful bidder designates principal amounts of the Bonds to be combined into Term Bonds which may be done only
for principal amounts in consecutive years and only for the years after 2026, such Term Bonds will be subject to mandatory
redemption on May 15 in the earliest year prior to the stated maturity of each such Term Bond (the particular Bonds of such
maturity to be redeemed to be selected by lot) as indicated on the cover page of the Preliminary Official Statement at the
principal amount thereof plus accrued interest to the redemption date.
5Source page 23
NOTICE OF REDEMPTION
So long as DTC is the registered owner of the Bonds, notice of any redemption of Bonds, prior to their maturities,
specifying the Bonds (or portions thereof) to be redeemed shall be mailed, or sent in such other manner acceptable to
DTC, to DTC not more than 60 days nor less than 30 days prior to the redemption date. Any failure on the part of DTC
to notify the DTC Participants of the redemption or failure on the part of the DTC Participants or of a nominee of a
Beneficial Owner (having received notice from a DTC Participant or otherwise) to notify the Beneficial Owner shall not
affect the validity of the redemption. If moneys for the redemption are held by the Paying Agent on the redemption date
and if notice of the redemption shall have been duly mailed, then from and after the redemption date interest on the
Bonds (or portions thereof) called for redemption shall cease to accrue.
SECURITY AND REMEDIES
Full Faith and Credit. General obligation bonds and notes of a Massachusetts city or town constitute a pledge of its full
faith and credit. To the extent not paid from other sources, the principal of and interest on the Bonds are payable from
taxes which may be levied upon all taxable property within the territorial limits of the Town and taxable by it, subject to
the provisions of Chapter 59, Section 21C of the General Laws. Payment is not limited to a particular fund or revenue
source. Except for “qualified bonds” (see “Serial Bonds and Notes” herein) and setoffs of state distributions (see “State
Distributions” herein), no provision is made by the Massachusetts statutes for priorities among bonds and notes and other
general obligations, although the use of certain moneys may be restricted.
Tax Levy. The Massachusetts statutes direct the municipal assessors to include annually in the tax levy for the next
fiscal year “all debt and interest charges matured and maturing during the next fiscal year and not otherwise provided for
(and) all amounts necessary to satisfy final judgments”. Specific provision is also made for including in the next tax levy
payments of rebate amounts not otherwise provided for and payment of notes in anticipation of federal or state aid if the
aid is no longer forthcoming.
The total amount of a tax levy is limited by statute. However, the voters in each municipality may vote to exclude from
the limitation any amounts required to pay debt service on indebtedness incurred before November 4, 1980. Local voters
may also vote to exempt specific subsequent bond issues from the limitation (see “Tax Limitations” herein). In addition,
obligations incurred before November 4, 1980 may be constitutionally entitled to payment from taxes in excess of the
statutory limit.
The Town voted to exclude the debt service on $9,216,312 of currently outstanding bonds from the limitations of
Proposition 2½, as described under “Tax Limitations” herein.
No Lien. Except for taxes on the increased value of certain property in designated development districts which may be
pledged for the payment of debt service on bonds issued to finance economic development projects within such districts,
no provision is made for a lien on any portion of the tax levy or any other funds of the Town to secure particular bonds or
notes or bonds and notes generally (or judgments on bonds or any notes) in priority to other claims. Provision is made,
however, for borrowing to pay judgments, subject to the General Debt Limit (see “Debt Limits” herein). Subject to the
approval of the State Director of Accounts for judgments above $10,000, judgments may also be paid from available
funds without appropriation and included in the next tax levy unless other provision is made.
Court Proceedings. Massachusetts cities and towns are subject to suit on their general obligation bonds and notes and
courts of competent jurisdiction have power in appropriate proceedings to order payment of a judgment on the bonds or
notes from lawfully available funds or, if necessary, to order the city or town to take lawful action to obtain the required
money, including the raising of it in the next annual tax levy, within the limits prescribed by law (see “Tax Limitations”
herein). In exercising their discretion as to whether to enter such an order, the courts could take into account all relevant
factors including the current operating needs of the city or town and the availability and adequacy of other remedies. The
Massachusetts Supreme Judicial Court has stated in the past that a judgment against a municipality can be enforced by
the taking and sale of the property of any inhabitant. However, there has been no judicial determination as to whether
this remedy is constitutional under current due process and equal protection standards.
6Source page 24
Restricted Funds. Massachusetts statutes also provide that certain water, gas and electric, community antenna television
system, telecommunications, sewer, parking meter and passenger ferry fee, community preservation and affordable housing
receipts may be used only for water, gas and electric, community antenna television system, telecommunications, sewer,
parking, mitigation of ferry service impacts, community preservation and affordable housing purposes, respectively;
accordingly, moneys derived from these sources may be unavailable to pay general obligation bonds and notes issued for
other purposes. A city or town that accepts certain other statutory provisions may establish an enterprise fund for a utility,
health care, solid waste, recreational or transportation facility and for police or fire services; under those provisions any
surplus in the fund is restricted to use for capital expenditures or reduction of user charges. In addition, subject to certain
limits, a city or town may annually authorize the establishment of one or more revolving funds in connection with use of
certain revenues for programs that produce those revenues; interest earned on a revolving fund is treated as general fund
revenue. A city or town may also establish an energy revolving loan fund to provide loans to owners of privately-held
property in the city or town for certain energy conservation and renewable energy projects, and may borrow to establish such
a fund. The loan repayments and interest earned on the investment of amounts in the fund shall be credited to the fund.
Also, the annual allowance for depreciation of a gas and electric plant or a community antenna television and
telecommunications system is restricted to use for plant or system renewals and improvements, for nuclear decommissioning
costs, and costs of contractual commitments, or, with the approval of the State Department of Telecommunications and
Energy, to pay debt incurred for plant or system reconstruction or renewals. Revenue bonds and notes issued in anticipation
of them may be secured by a prior lien on specific revenues. Receipts from industrial users in connection with industrial
revenue financings are also not available for general municipal purposes.
State Distributions. State grants and distributions may in some circumstances be unavailable to pay general obligation
bonds and notes of a city or town in that the State Treasurer is empowered to deduct from such grants and distributions
the amount of any debt service paid on “qualified bonds” (see “Serial Bonds and Notes” herein) and any other sums due
and payable by the city or town to the Commonwealth, or certain other public entities, including any unpaid assessments
for costs of any public transportation authority such as the Massachusetts Bay Transportation Authority (the “MBTA”) or
a regional transit authority of which it is a member or for costs of the Massachusetts Water Resources Authority (the
“MWRA”) if the city or town is within the territory served by the Authority, for any debt service due on obligations
issued to the Massachusetts School Building Authority, or for charges necessary to meet obligations under the
Commonwealth’s Clean Water or Drinking Water Revolving Loan Programs, including such charges imposed by another
local governmental unit that provides wastewater collection or treatment services or drinking water treatment services to
the city or town.
If a city or town is (or is likely to be) unable to pay principal or interest on its bonds or notes when due, it is required to
notify the State Commissioner of Revenue. The Commissioner shall in turn, after verifying the inability, certify the
inability to the State Treasurer. The State Treasurer shall pay the due or overdue amount to the paying agent for the
bonds or notes, in trust, within three days after the certification or one business day prior to the due date (whichever is
later). This payment is limited, however, to the estimated amount otherwise distributable by the Commonwealth to the
city or town during the remainder of the fiscal year (after the deductions mentioned in the foregoing paragraph). If for
any reason any portion of the certified sum has not been paid at the end of the fiscal year, the State Treasurer shall pay it
as soon as practicable in the next fiscal year to the extent of the estimated distributions for that fiscal year. The sums so
paid shall be charged (with interest and administrative costs) against the distributions to the city or town.
The foregoing does not constitute a pledge of the faith and credit of the Commonwealth. The Commonwealth has not
agreed to maintain existing levels of state distributions, and the direction to use estimated distributions to pay debt
service may be subject to repeal by future legislation. Moreover, adoption of the annual appropriation act has sometimes
been delayed beyond the beginning of the fiscal year and estimated distributions which are subject to appropriation may
be unavailable to pay local debt service until they are appropriated.
Bankruptcy. Enforcement of a claim for payment of principal or interest on general obligation bonds or notes would be
subject to the applicable provisions of Federal bankruptcy laws and to the provisions of other statutes, if any, hereafter
enacted by the Congress or the State legislature extending the time for payment or imposing other constraints upon
enforcement insofar as the same may be constitutionally applied. Massachusetts municipalities are not generally authorized
7Source page 25
by the Massachusetts General Laws to file a petition for bankruptcy under Federal Bankruptcy laws. In cases involving
significant financial difficulties faced by a single city, town or regional school district, however, the Commonwealth has
enacted special legislation to permit the appointment of a fiscal overseer, finance control board or, in the most extreme cases,
a state receiver. In a limited number of these situations, such special legislation has also authorized the filing of federal
bankruptcy proceedings, with the prior approval of the Commonwealth. In each case where such authority was granted, it
expired at the termination of the Commonwealth’s oversight of the financially distressed city, town or regional school
district. To date, no such filings have been approved or made.
OPINION OF BOND COUNSEL
A copy of the legal opinion of the firm of Locke Lord LLP, of Boston, Massachusetts, (see Appendix C) will be furnished
to the successful bidder. The opinion will be dated and given on and will speak only as of the date of original delivery of
the Bonds. The scope of engagement of Bond Counsel does not extend to passing upon or assuming responsibility for the
accuracy or adequacy of any statements made in this Official Statement other than matters expressly set forth as their
opinion and they make no representation that they have independently verified the same.
TAX EXEMPTION
In the opinion of Locke Lord LLP, Bond Counsel to the Town (“Bond Counsel”), based upon an analysis of existing
laws, regulations, rulings, and court decisions, and assuming, among other matters, compliance with certain covenants,
interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal
Revenue Code of 1986, as amended (the “Code”). Bond Counsel is of the further opinion that interest on the Bonds will
not be included in computing the alternative minimum taxable income of Bondholders who are individuals or, except as
described herein, corporations. The Bonds will be designated as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Code. Bond Counsel expresses no opinion regarding any other federal tax consequences arising
with respect to the ownership or disposition of, or the accrual or receipt of interest on the Bonds.
For taxable years that began before January 1, 2018, interest on the Bonds owned by a corporation (other than an S
corporation, a qualified mutual fund, a real estate investment trust, a real estate mortgage investment conduit, or a
financial asset securitization investment trust) will be included in such corporation’s adjusted current earnings for
purposes of computing the alternative minimum taxable income of such corporation. The alternative minimum tax on
corporations has been repealed for taxable years beginning on or after January 1, 2018.
The Code imposes various requirements relating to the exclusion from gross income for federal income tax purposes of
interest on obligations such as the Bonds. Failure to comply with these requirements may result in interest on the Bonds
being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds.
The Town has covenanted to comply with such requirements to ensure that interest on the Bonds will not be included in
federal gross income. The opinion of Bond Counsel assumes compliance with these requirements.
Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from Massachusetts
personal income taxes, and the Bonds are exempt from Massachusetts personal property taxes. Bond Counsel has not
opined as to other Massachusetts tax consequences arising with respect to the Bonds. Prospective Bondholders should be
aware, however, that the Bonds are included in the measure of Massachusetts estate and inheritance taxes, and the Bonds
and the interest thereon are included in the measure of certain Massachusetts corporate excise and franchise taxes. Bond
Counsel expresses no opinion as to the taxability of the Bonds or the income therefrom or any other tax consequences
arising with respect to the Bonds under the laws of any state other than Massachusetts. A complete copy of the proposed
form of opinion of Bond Counsel is set forth in Appendix C hereto.
To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such Bonds
(excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the difference
constitutes “original issue discount,” the accrual of which, to the extent properly allocable to each owner thereof, is
treated as interest on the Bonds which is excluded from gross income for federal income tax purposes and is exempt from
8Source page 26
Massachusetts personal income taxes. For this purpose, the issue price of a particular maturity of the Bonds is either the
reasonably expected initial offering price to the public or the first price at which a substantial amount of such maturity of
the Bonds is sold to the public, as applicable. The original issue discount with respect to any maturity of the Bonds
accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded semiannually
(with straight-line interpolations between compounding dates). The accruing original issue discount is added to the
adjusted basis of such Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment
on maturity) of such Bonds. Bondholders should consult their own tax advisors with respect to the tax consequences of
ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase such Bonds
in the original offering to the public at the reasonably expected initial offering price or, if applicable, the first price at
which a substantial amount of such Bonds is sold to the public.
Bonds purchased, whether at original issuance or otherwise, for an amount greater than the stated principal amount to be
paid at maturity of such Bonds, or, in some cases, at the earlier redemption date of such Bonds (“Premium Bonds”), will
be treated as having amortizable bond premium for federal income tax purposes and Massachusetts personal income tax
purposes. No deduction is allowable for the amortizable bond premium in the case of obligations, such as the Premium
Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, a Bondholder’s
basis in a Premium Bond will be reduced by the amount of amortizable bond premium properly allocable to such
Bondholder. Holders of Premium Bonds should consult their own tax advisors with respect to the proper treatment of
amortizable bond premium in their particular circumstances.
Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or
events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the value of, or the tax
status of interest on, the Bonds.
Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal income tax
purposes and is exempt from Massachusetts personal income taxes, the ownership or disposition of, or the accrual or
receipt of interest on, the Bonds may otherwise affect the federal or state tax liability of a Bondholder. Among other
possible consequences of ownership or disposition of, or the accrual or receipt of interest on, the Bonds, the Code
requires recipients of certain social security and certain railroad retirement benefits to take into account receipts or
accruals of interest on the Bonds in determining the portion of such benefits that are included in gross income. The
nature and extent of all such other tax consequences will depend upon the particular tax status of the Bondholder or the
Bondholder’s other items of income, deduction, or exclusion. Bond Counsel expresses no opinion regarding any such
other tax consequences, and Bondholders should consult with their own tax advisors with respect to such consequences.
Risk of Future Legislative Changes and/or Court Decisions
Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may also be
considered by the Massachusetts legislature. Court proceedings may also be filed, the outcome of which could modify the
tax treatment of obligations such as the Bonds. There can be no assurance that legislation enacted or proposed, or actions
by a court, after the date of issuance of the Bonds will not have an adverse effect on the tax status of interest on the
Bonds or the market value or marketability of the Bonds. These adverse effects could result, for example, from changes
to federal or state income tax rates, changes in the structure of federal or state income taxes (including replacement with
another type of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Bonds from gross income
for federal or state income tax purposes for all or certain taxpayers.
For example, H.R. 1, signed into law on December 22, 2017, reduces the corporate tax rate, modifies individual tax rates,
eliminates many deductions, and raises the income threshold above which the individual alternative minimum tax is
invoked, among other things. These changes may increase, reduce or otherwise change the financial benefits of owning
state and local government bonds. Additionally, Bondholders should be aware that future legislative actions (including
federal income tax reform) may retroactively change the treatment of all or a portion of the interest on the Bonds for
federal income tax purposes for all or certain taxpayers. In all such events, the market value of the Bonds may be affected
and the ability of Bondholders to sell their Bonds in the secondary market may be reduced. The Bonds are not subject to
9Source page 27
special mandatory redemption, and the interest rates on the Bonds are not subject to adjustment, in the event of any such
change in the tax treatment of interest on the Bonds.
Investors should consult their own financial and tax advisors to analyze the importance of these risks.
RATING
S&P Global Ratings has assigned a rating of AAA to the Bonds. Such rating reflects only the view of the rating agency
and will be subject to revision or withdrawal, which could affect the market price of the Bonds.
CONTINUING DISCLOSURE
In order to assist the successful bidder in complying with Rule 15c2-12(b)(5) promulgated by the Securities and
Exchange Commission (the “Rule”), the Town will covenant for the benefit of owners of the Bonds to provide certain
financial information and operating data relating to the Town by not later than 270 days after the end of each fiscal year
(the “Annual Report”), and to provide notices of the occurrence of certain significant events. The covenants will be
contained in a Continuing Disclosure Certificate, the proposed form of which is provided in Appendix D. The Certificate
will be executed by the signers of the Bonds, and incorporated by reference in the Bonds. The Town is the only
“obligated person” with respect to the Bonds within the meaning of the Rule.
The Town believes that, in the last five years, it has complied, in all material respects, with its previous undertakings to
provide financial information or notices of significant events in accordance with the Rule.
10Source page 28
PART II
THE TOWN
The Town of Canton, settled in 1650 and incorporated in 1797, is located in Norfolk County approximately 18 miles
south of downtown Boston. The Town covers an area of approximately 18 square miles and is bordered by the Towns of
Milton, Randolph, Stoughton, Sharon, Norwood, Westwood and Dedham.
SERVICES
The Town provides general governmental services for the territory within its boundaries, including police and fire
protection, public education in grades K though 12, water and sewer, streets, parks and recreation. The principal services
provided by Norfolk County are space for courts, a jail and house of correction and registry of deeds. The MBTA
provides bus service to the Town and commuter rail at two central locations within the Town. The Blue Hills Regional
Vocational High School provides vocational technical education in grades nine through twelve. The Canton Housing
Authority provides housing for eligible low income families, elderly and handicapped persons.
GOVERNING BODIES AND OFFICERS
Local legislative decisions are made by an open town meeting consisting of all registered voters in the Town. Subject to
the legislative decisions made by Town Meeting, the affairs of the Town are generally administered by a board of five
selectmen, elected for staggered three-year terms on an at-large basis. Local taxes are assessed by a board of three
assessors elected for staggered three-year terms. The affairs of the schools are generally administered by a School
Committee of five members, elected for staggered three-year terms on an at-large basis.
The following are the principal executive officers:
Manner of Selection Term
Office Name and Term Expires
Selectmen John J. Connolly, Chairman Elected/3 years 2019
Mark J. Porter, Vice Chair Elected/3 years 2018
Kevin Feeney, Clerk Elected/3 years 2018
Christopher J. Connolly Elected/3 years 2020
Thomas W. Theodore Elected/3 years 2020
Town Administrator Charles J. Aspinwall Appointed/1 year 2018
Finance Director/
Treasurer/Collector James R. Murgia Appointed/1 year 2018
Accountant Kathleen Dooley Butters Appointed/1 year 2018
Town Clerk Tracy Kenney Elected/3 years 2018
Town Counsel Paul DeRensis Appointed/1 year 2018
AUTHORIZATION OF GENERAL OBLIGATION BOND AND NOTES
Serial bonds and notes are authorized by vote of two-thirds of all the members of the city council (subject to the mayor’s
veto where the mayor has a veto power) or a two-thirds vote of the town meeting. Provision is made in some cities and
towns for a referendum on the borrowing authorization if there is a timely filing of a petition bearing the requisite number
11Source page 29
of signatures. Refunding bonds and notes are authorized by the city council or the selectmen. Borrowings for some
purposes require State administrative approval.
When serial bonds or notes have been authorized, bond anticipation notes may be issued by the officers authorized to
issue the serial bonds or notes. Temporary debt in anticipation of the revenue of the fiscal year in which the debt is
incurred or in anticipation of authorized federal and state aid generally may be incurred by the treasurer with the approval
of the selectmen, mayor or city manager as the case may be.
DEBT LIMITS
General Debt Limit. The General Debt Limit of the Town consists of a Normal Debt Limit and a Double Debt Limit.
The Normal Debt Limit is 5 percent of the valuation of taxable property as last equalized by the State Department of
Revenue. The Town can authorize debt up to this amount without state approval. It can authorize debt up to twice this
amount (the Double Debt Limit) with the approval of the State Municipal Finance Oversight Board composed of the State
Treasurer, the State Auditor, the Attorney General and the Director of Accounts.
There are many categories of general obligation debt which are exempt from and do not count against the General Debt
Limit. Among others, these exempt categories include revenue anticipation notes and grant anticipation notes; emergency
loans; loans exempted by special laws; certain school bonds, sewer bonds, bonds for water, gas electric and
telecommunications systems, solid waste disposal facility bonds and economic development bonds supported by tax
increment financing; and subject to special debt limits, bonds for housing, urban renewal and economic development
(subject to various debt limits). Revenue bonds are not subject to these debt limits. The General Debt Limit and the special
debt limit for water bonds apply at the time the debt is authorized. The other special debt limits generally apply at the time
the debt is incurred.
Revenue Anticipation Notes. The amount borrowed in each fiscal year by the issue of revenue anticipation notes is
limited to the tax levy of the prior fiscal year, together with the net receipts in the prior fiscal year from the motor vehicle
excise and certain payments made by the Commonwealth in lieu of taxes. The fiscal year ends on June 30. Notes may
mature in the following fiscal year, and notes may be refunded into the following fiscal year to the extent of the
uncollected, unabated current tax levy and certain other items, including revenue deficits, overlay deficits, final
judgments and lawful unappropriated expenditures, which are to be added to the next tax levy, but excluding deficits
arising from a failure to collect taxes of earlier years (see “Taxation to Meet Deficits” herein). In any event, the period
from an original borrowing to its final maturity cannot exceed one year.
TYPES OF OBLIGATIONS
General Obligations. Massachusetts cities and towns are authorized to issue general obligation indebtedness of these
types:
Serial Bonds and Notes. These are generally required to be payable in annual principal amounts beginning no later than
the end of the next fiscal year commencing after the date of issue and ending within the terms permitted by law. A level
debt service schedule, or a schedule that provides for a more rapid amortization of principal than level debt service, is
permitted. The principal amounts of certain economic development bonds supported by tax increment financing may be
payable in equal, diminishing or increasing amounts beginning within 5 years after the date of issue. The maximum
terms vary from one year to forty years, depending on the purpose of the issue. The maximum terms permitted are set
forth in the statutes. In addition, for many projects, the maximum term may be determined in accordance with useful life
guidelines promulgated by the State Department of Revenue (“DOR”). Serial bonds and notes may be issued for the
purposes set forth in the statutes. In addition, serial bonds and notes may be issued for any other public work
improvement or asset not specifically listed in the Statutes that has a useful life of at least 5 years. Bonds or notes may be
made callable and redeemed prior to their maturity, and a redemption premium may be paid. Refunding bonds or notes
may be issued subject to the maximum applicable term measured from the date of the original bonds or notes, and must
produce present value savings over the debt service of the refunded bonds. Generally, the first required annual payment
of principal of the refunding bonds cannot be later than the first principal payment of any of the bonds or notes being
12Source page 30
refunded thereby, however, principal payments made before the first principal payment of any of the bonds or notes being
refunded thereby may be in any amount.
Serial bonds may be issued as “qualified bonds” with the approval of the state Municipal Finance Oversight Board
composed of the State Treasurer, the State Auditor, the Attorney General and the Director of Accounts, subject to such
conditions and limitations (including restriction on future indebtedness) as may be required by the Board. Qualified
bonds may mature not less than 10 nor more than 30 years from their dates and are not subject to the amortization
requirements described above. The State Treasurer is required to pay the debt service on qualified bonds and thereafter
to withhold the amount of the debt service paid by the State from state aid or other state payments; administrative costs
and any loss of interest income to the State are to be assessed upon the city or town.
Tax Credit Bonds or Notes. Subject to certain provisions and conditions, the officers authorized to issue bonds or notes
may designate any duly authorized issue of bonds or notes as “tax credit bonds” to the extent such bonds and notes are
otherwise permitted to be issued with federal tax credits or other similar subsidies for all or a portion of the borrowing
costs. Tax credit bonds may be made payable without regard to the annual installments required by any other law, and a
sinking fund may be established for the payment of such bonds. Any investment that is part of such a sinking fund may
mature not later than the date fixed for payment or redemption of the applicable bonds.
Bond Anticipation Notes. These must generally mature within two years of their original dates of issuance, but may be
refunded from time to time for a period not to exceed ten years from their original date of issuance, provided that for each
year that the notes are refunded beyond the second year they must be paid in part from revenue funds in an amount at
least equal to the minimum annual payment that would have been required if the bonds had been issued at the end of the
second year. For certain school projects, however, notes may be refunded from time to time for a period not to exceed
seven years without having to pay any portion of the principal of the notes from revenue funds. The maximum term of
bonds issued to refund bond anticipation notes is measured (except for certain school projects) from the date of the
original issue of the notes.
Revenue Anticipation Notes. These are issued to meet current expenses in anticipation of taxes and other revenues.
They must mature within one year but, if payable in less than one year, may under statute be refunded from time to time
up to one year from the original date of issue.
Grant Anticipation Notes. These are issued for temporary financing in anticipation of federal grants and state
reimbursements. They must generally mature within two years but may be refunded from time to time as long as the
municipality remains entitled to the grant or reimbursement.
Revenue Bonds. Cities and towns may issue revenue bonds for solid waste disposal facilities and for projects financed
under the Commonwealth's Water Pollution Abatement or Drinking Water Revolving Loan Programs and for certain
economic development projects supported by tax increment financing. In addition, cities and town having electric
departments may issue electric revenue bonds, and notes in anticipation of such bonds subject to the approval of the State
Department of Telecommunications and Energy. The Town does not have an electric department.
13Source page 31
DEBT (1)
The following shows the direct debt outstanding as of March 15, 2018, including the Project Bonds and the Refunded
Bonds, but not including the Refunding Bonds:
General Obligation Bonds:
Within General Debt Limit (2)
Sewers and Drains (3) $ 1,562,700
Land Acquisition 50,100
Schools (4) 12,771,400
Other Building 5,786,400
Departmental Equipment 2,602,000
Athletic and Recreational Facilities 20,000
Other Inside General 155,000
Architectural and Engineering Services 225,000
Project Bonds 1,792,000
$24,964,600
Outside General Debt Limit:
Schools (4) $ 2,264,000
Sewers (3) 5,184,826
Water (3) 19,175,100
Other Outside General 352,843
$26,976,769
Total General Obligation Bonds $51,941,369 (5)
Temporary Loans in Anticipation of:
Revenue $ 0
Bonds 0
Grants 0
Total Temporary Loans 0
Total Direct Debt $51,941,369
___________________
(1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability, other
post-employment benefits liability, and the Refunding Bonds.
(2) At the present time, the normal general debt limit is $230,778,165 and the double general debt limit is $461,556,330.
(3) Water and sewer debt is self-supporting through user fees.
(4) The Massachusetts School Building Authority pays a grant for 61% of approved construction and interest costs of the Luce School
project to be payable in equal installments over the life of the bonds.
(5) $9,216,312 has been excluded from the provisions of Proposition 2 ½.
Revenue Anticipation Borrowing
The Town has not borrowed in anticipation of revenue since fiscal 1991, and has no plans to do so at the present time.
14Source page 32
Authorized Unissued Debt and Prospective Financing
After the issuance of the Bonds, the Town will have the following authorized and unissued debt:
Date of Total Amount Expected
Purpose Authorization Authorized Remaining Issuance Expected Repayment
Septic 4/29/1998 200,000 $ 200,000 none Betterments (1)
Sewer Infiltration and Inflows 5/1/2000 2,576,000 719,790 various User fee supported (2)
Sewer Equipment 4/30/2008 560,000 145,000 various User fee supported (2)
Revere Street Development District 5/11/2015 8,597,000 8,597,000 2-3 years Development District/Levy
Land Acquisition 5/11/2015 1,740,000 1,740,000 2019 Levy (CPA surcharge)
Hansen Elementary School 5/18/2015 4,100,000 497,388 none To be rescinded
Land Acquisition 5/9/2016 250,000 250,000 2-3 years Development District/Levy
Departmental Equipment Bonds 5/8/2017 1,153,000 16,000 none To be rescinded
Reservoir Pond Dam Repairs 5/8/2017 950,000 950,000 2019 Levy
School Roof Repair 5/10/2017 1,740,000 940,000 none To be rescinded
$ 14,055,178
____________________
(1) While all debt issued by the Town is general obligation debt, it is anticipated that debt service on these projects will be supported
by betterments.
(2) While all debt issued by the Town is general obligation debt, it is anticipated that the debt service on this project will be
supported by user fees.
Capital Expenditures Projection
The Town's By-Laws established a Capital Planning Committee which is required to prepare annually a capital needs
analysis which is submitted to the Annual Town Meeting. The Finance Department’s five-year plan earmarks 5% to 6%
of the projected general fund revenues each year for capital purposes. The table below summarizes the Town Meeting
appropriations for fiscal year 2018 and a current capital needs analysis and Finance Committee recommendation for
fiscal 2019 through 2022. This analysis is updated and revised annually.
(000 omitted)
2018 2019 2020 2021 2022
Police $ 139 $ 135 $ 135 135 135
Fire/Ambulance 926 45 255 365 0
DPW 1,410 618 372 482 600
Schools 1,660 1,950 1,050 1,038 1,150
Library 6 28 58 32 0
Parks & Recreation 55 80 0 0 0
Senior Services 0 63 0 0 0
Town Clerk 11 0 0 0 0
Finance Dept./MIS 189 114 130 71 65
Property Maintenance 67 42 95 95 242
Total 4,463 3,075 2,095 2,218 2,192
Enterprise Funds (1):
Water 655 1,882 1,395 1,580 884
Sewer 404 1,055 1,305 1,165 140
Skating Rink 0 0 0 0 0
Total 1,059 2,937 2,700 2,745 1,024
Total Capital Expenditures $5,522 $6,012 $4,795 $4,963 $3,216
________________
(1) Capital expenditures are expected to be paid from user fees and enterprise fund surplus.
15Source page 33
Five Years Outstanding Debt (1)(2)
As of June 30
2017 2016 2015 2014 2013
Long-Term Indebtedness
Within the General Debt Limit:
Sewers & Drains $ 1,997,900 $ 2,547,000 $ 3,105,900 $ 3,476,000 $ 3,444,770
Land Acquisition 89,400 261,300 489,500 721,500 1,109,120
Schools 13,963,000 10,905,200 12,064,050 12,193,500 19,375,665
Other Building 6,678,300 7,779,100 8,729,300 9,809,600 11,769,140
Departmental Equipment 2,823,000 2,275,000 2,246,200 1,478,200 1,864,000
Architectural & Engineering Services 270,000 330,000 403,000 477,000 551,000
Athletic & Recreational Facilities 25,000 30,000 35,000 40,000 45,000
Other Inside General 182,000 245,000 240,400 329,700 422,000
Total Within the General Debt Limit $ 26,028,600 $ 24,372,600 $27,313,350 $28,525,500 $38,580,695
Outside the General Debt Limit:
Sewers $ 5,642,793 $ 6,102,725 $ 5,934,340 $ 5,900,455 $ 5,948,885
Schools 2,337,000 2,888,000 3,046,000 3,576,000 4,117,159
Other Outside General 374,176 395,226 416,000 - -
Water 20,102,900 19,147,300 20,816,050 21,786,300 20,298,105
Total Outside the General Debt Limit $ 28,456,869 $ 28,533,251 $30,212,390 $31,262,755 $30,364,149
Total Long-Term Indebtedness $ 54,485,469 $ 52,905,851 $57,525,740 $59,788,255 $68,944,844
Short-Term Indebtedness
Revenue Anticipation Notes $ - $ - $ - $ - $ -
Grant Anticipation Notes - - - - -
Bond Anticipation Notes - 3,685,000 797,786 2,915,950 2,209,800
Total Short-Term Indebtedness $ - $ 3,685,000 $ 797,786 $ 2,915,950 $ 2,209,800
Total Outstanding Indebtedness $ 54,485,469 $ 56,590,851 $58,323,526 $62,704,205 $71,154,644
_____________________
(1) Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability and other post-employment
benefits liability.
(2) All water and sewer debt service is paid from water and sewer revenues.
16Source page 34
Bonded Debt vs. Population, Valuations and Income
As of June 30
2017 2016 2015 2014 2013
Amount (1) $54,485,469 $52,905,851 $57,525,740 $59,788,255 $68,944,844
Per Capita (2) $2,343 $2,275 $2,521 $2,656 $3,103
Percent of Assessed Valuation (3) 1.21 1.22 1.41 1.54 1.74
Percent of Equalized Valuation (4) 1.18 1.30 1.41 1.45 1.67
Per Capita as a percent of
Personal Income (2) per capita 4.76 4.62 5.12 5.40 6.31
_________________________
(1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt and unfunded pension liability.
(2) Source: U.S. Department of Commerce, Bureau of the Census - Latest applicable actuals or estimates.
(3) Source: Board of Assessors - Assessed valuation as of the prior January 1.
(4) Source: Massachusetts Department of Revenue - Equalized valuation in effect for that fiscal year
(equalized valuations are established for January 1 of each even-numbered year).
Annual Debt Service (1)
Cumulative
Outstanding as of 3/15/18 Project Bonds (3) Principal
Fiscal Year Principal (2) Interest (2) Principal Interest Total Retired
2018 $ 2,190,000 $ 345,211 $ - $ - $ 2,535,211 4.22%
2019 6,249,892 1,528,391 183,000 90,347 8,051,630 16.60%
2020 5,835,461 1,316,010 183,000 68,290 7,402,761 28.19%
2021 5,534,409 1,130,375 183,000 59,140 6,906,924 39.20%
2022 4,852,436 933,823 183,000 53,650 6,022,909 48.89%
2023 4,406,544 765,203 182,000 44,500 5,398,246 57.72%
2024 3,735,735 623,761 151,000 35,400 4,545,896 65.21%
2025 2,841,010 525,023 151,000 27,850 3,544,884 70.97%
2026 2,515,373 444,198 151,000 20,300 3,130,871 76.10%
2027 2,294,823 371,302 151,000 12,750 2,829,875 80.81%
2028 2,069,363 300,637 150,000 8,220 2,528,220 85.08%
2029 1,898,995 236,280 62,000 3,720 2,200,994 88.86%
2030 1,648,720 175,861 62,000 1,860 1,888,441 92.15%
2031 1,408,541 122,359 - - 1,530,900 94.86%
2032 908,938 80,536 - - 989,474 96.61%
2033 479,319 52,086 - - 531,405 97.54%
2034 329,707 37,898 - - 367,605 98.17%
2035 330,103 28,202 - - 358,305 98.81%
2036 310,000 18,600 - - 328,600 99.40%
2037 $ 310,000 $ 9,300 $ - $ - $ 319,300 100.00%
Total $ 50,149,369 $ 9,045,056 $1,792,000 $ 426,027 $ 61,601,560
___________________
Footnotes on the following page
17Source page 35
(1) Includes the Refunded Bonds. Excludes revenue anticipation notes, grant anticipation notes, bond anticipation notes, lease and
installment purchase obligations, overlapping debt, unfunded pension liability, other post-employment benefits liabilities and the
Refunding Bonds.
(2) Principal totaling $9,216,312 and interest totaling $1,737,386 has been exempted from the provisions of Proposition 2 1/2.
Principal totaling $25,487,126 and interest totaling $5,089,939 is self-supporting.
(3) Debt service on the Project Bonds is calculated at an estimated average coupon of 3.94%.
CONTRACTS
Municipal contracts are generally limited to currently available appropriations. A city or town generally has authority to
enter into contracts for the exercise of any of its corporate powers for any period of time deemed to serve its best
interests, but generally only when funds are available for the first fiscal year; obligations for succeeding fiscal years
generally are expressly subject to availability and appropriation of funds. Municipalities have specific authority in
relatively few cases to enter into long-term contractual obligations that are not subject to annual appropriation, including
contracts for refuse disposal and sewage treatment and disposal. Municipalities may also enter into long-term contracts
in aid of housing and renewal projects. There may be implied authority to make other long-term contracts required to
carry out authorized municipal functions, such as contracts to purchase water from private water companies
Municipal contracts relating to solid waste disposal facilities may contain provisions requiring the delivery of minimum
amounts of waste and payments based thereon and requiring payments in certain circumstances without regard to the
operational status of the facilities.
Municipal electric departments have statutory power to enter into long-term contracts for joint ownership and operation
of generating and transmission facilities and for the purchase or sale of capacity including contracts requiring payments
without regard to the operational status of the facilities. The Town does not have an electric light department.
Cities and towns are authorized to lease (as lessee) off-street parking facilities, school buildings, hospital equipment, data
process equipment, energy conservation equipment and educational equipment for periods ranging up to 10 years. They
may also lease equipment, with the option to purchase, for a period up to 10 years. Contracts may also be made for the
installment purchase of energy conservation equipment over a period up to 10 years. Cities and towns may also lease
various properties as lessor. The Town has not entered into any lease or installment purchase contracts of a substantial
nature.
Pursuant to the Home Rule Amendment to the Massachusetts Constitution, cities and towns may also be empowered to
make other contracts and leases.
The Town has contracted with Republic Services for waste collection and disposal. This contract expires on June 30,
2018. The current cost for disposal is $67.18 per ton. The total cost for collection, transportation and disposal for fiscal
2017 was $1,858,338 and the amount budgeted for fiscal year 2018 is $1,961,119.
The fiscal 2018 cost for the Solid Waste Program is shown below:
Category Vendor Fiscal 2018 Appropriations
Rubbish
Collection and Transportation Republic Services $1,309,118
Disposal Republic Services 420,582
Landfill Monitoring Woodard & Curran 30,000
Yard Waste
Collection, Transportation American Earth
and Disposal Products 186,419
Hazardous Waste
CRT Recycling Clean Harbors 15,000
Total $1,961,119
18Source page 36
OVERLAPPING DEBT
Counties
County expenses including debt service on county bonds are assessed upon the cities and towns within the county in
proportion to their taxable valuation as last equalized by the State Commissioner of Revenue. Legislation enacted in
1997 abolished the county governments of Franklin and Middlesex Counties as of July 1, 1997, with their assets,
functions, debts and other obligations being assumed by the Commonwealth. The abolishment of the Middlesex County
government was in part response to a default by the county in the payment of general obligation notes of the county. The
legislation also abolished the county governments of Hampden and Worcester Counties as of July 1, 1998. Legislation
enacted in 1998 abolished the county governments of Hampshire, Essex and Berkshire counties as of January 1, 1999,
July 1, 1999 and July 1, 2000, respectively. The legislation also requires the state secretary for administration and
finance to establish a plan to recover the Commonwealth’s expenditures for the liabilities and other debts assumed and
paid by the Commonwealth on behalf of an abolished county. Unless these provisions are changed by further legislation,
the state treasurer shall assess upon each city and town within the jurisdiction of an abolished county an amount not
exceeding or equal to the county tax paid by each such city and town for the fiscal year immediately prior to the
abolishment of the county (or two years prior in the case of Essex County) until such expenditures by the Commonwealth
are recovered. It is possible that similar legislation will be sought to provide for the abolishment of county government in
other counties.
Massachusetts Water Resources Authority
The Massachusetts Water Resources Authority (the “MWRA”) provides wholesale drinking water services in whole or in
part to 48 cities, towns and special purpose entities and provides wastewater collection and treatment services to 43 cities,
towns and special purpose entities. Under its enabling legislation, as amended, the aggregate principal amount of all bonds
issued by the MWRA for its corporate purposes may not exceed $6.1 billion outstanding at any time. Its obligations are
secured by revenues of the MWRA. The MWRA assesses member cities, towns and special purpose entities, which
continue to provide direct retail water and sewer services to users. The cities, towns and other entities collect fees from the
users to pay all or part of the assessments; some municipalities levy property taxes to pay part of the amounts assessed upon
them.
Massachusetts Bay Transportation Authority
The MBTA was created in 1964 to finance and operate mass transportation facilities within the greater Boston
metropolitan area. Under its enabling act, the MBTA is authorized to issue bonds for capital purposes, other than
refunding bonds, and for certain specified purposes to an outstanding amount, which does not exceed the aggregate
principal amount of $3,556,300,000. In addition, pursuant to certain of the Commonwealth’s transportation bond bills, the
MBTA is authorized to issue additional bonds for particular capital projects. The MBTA also is authorized to issue bonds of
the purpose of refunding bonds. Under the MBTA’s enabling act debt service, as well as other operating expenses of the
MBTA, are to be financed by a dedicated revenue stream consisting of the amounts assessed on the cities and towns of the
MBTA and a dedicated portion of the statewide sales tax. The amount assessed to each city and town is based on its
weighted percentage of the total population of the authority as provided in the enabling act. The aggregate amount of such
assessments is generally not permitted to increase by more than 2.5 percent per year. (See “Tax Limitations” under “TAX
LEVIES” herein.)
19Source page 37
The following table sets forth the portion of overlapping debt relating to the Town (1):
Assessments for
Operations and Debt
Authorized Service
Outstanding Unissued Fiscal Year 2018
Norfolk County (2) $ 13,710,000 $0 $209,009
Blue Hills Regional Vocational
Technical School District (3) 0 $0 (3) $1,160,586
Massachusetts Clean Water Water $2,583,303
Trust (4) $71,465,000 (See Above) Sewer $4,210,854
Massachusetts Bay Transportation
Authority (5) N/A (See Above) $488,430
_________________________
(1) Principal amount only. Excludes temporary loans in anticipation of revenue. Omits debt of the Commonwealth.
(2) Source: Treasurer, Norfolk County. Debt is as of March 15, 2018. Authorized debt includes debt authorized by the County
Commissioners under general laws and debt permitted by special enabling acts whether or not yet voted by County Commissioners.
County expenses including debt service on county bonds are assessed upon the cities and towns within the county in proportion to
their taxable valuation as last equalized by the State Commissioner of Revenue. Amount shown here is based on most recent
equalized valuations.
(3) Source: Blue Hills Regional Vocational Technical School District. Debt is as of March 15, 2018. Towns may organize regional
school districts to carry out general or specialized educational functions. The operating expenses and debt service of regional school
districts are apportioned among the member municipalities in accordance with the agreements establishing the districts subject to the
provisions of the Education Reform Act of 1993. The other members of the District are the Towns of Avon, Braintree, Dedham,
Holbrook, Milton, Norwood, Randolph and Westwood. On September 19, 2017 the District School Committee approved a $84.9
million borrowing to remodel and reconstruct the District’ high school; this amount is expected to be reduced by a Massachusettts
School Building Authority grant of approximately $43.4 million.
(4) The Town’s share is supported by Water and Sewer Enterprise Funds.
(5) Under forward funding legislation, which began in fiscal 2001, member communities are no longer responsible for overlapping
debt, but only for the municipal assessment.
RETIREMENT PLAN
The Massachusetts General Laws provide for the establishment of contributory retirement systems for state employees, for
teachers and for county, city and town employees other than teachers. Teachers are assigned to a separate statewide teachers’
system and not to the city and town systems. For all employees other than teachers, this law is subject to acceptance in each
city and town. Substantially all employees of an accepting city or town are covered. If a town has a population of less than
10,000 when it accepts the statute, its non-teacher employees participate through the county system and its share of the
county cost is proportionate to the aggregate annual rate of regular compensation of its covered employees. In addition to the
contributory systems, cities and towns provide non-contributory pensions to a limited number of employees, primarily
persons who entered service prior to July 1, 1937 and their dependents. The Public Employee Retirement Administration
Commission (“PERAC”) provides oversight and guidance for and regulates all state and local retirement systems.
The obligations of a city or town, whether direct or through a county system, are contractual legal obligations and are
required to be included in the annual tax levy. If a city or town, or the county system of which it is a member, has not
established a retirement system funding schedule as described below, the city or town is required to provide for the payment
of the portion of its current pension obligations which is not otherwise covered by employee contributions and investment
income. “Excess earnings,” or earnings on individual employees’ retirement accounts in excess of a predetermined rate, are
required to be set aside in a pension reserve fund for future, not current, pension liabilities. Cities and towns may voluntarily
appropriate to their system’s pension reserve fund in any given year up to five percent of the preceding year’s tax levy. The
aggregate amount in the fund may not exceed ten percent of the equalized valuation of the city or town.
If a city or town, or each member city and town of a county retirement system, has accepted the applicable law, it is required
to annually appropriate an amount sufficient to pay not only its current pension obligations, but also a portion of its future
pension liability. The portion of each such annual payment allocable to future pension obligations is required to be deposited
20Source page 38
in the pension reserve fund. The amount of the annual city or town appropriation for each such system is prescribed by a
retirement system funding schedule which is periodically reviewed and approved by PERAC. Each system’s retirement
funding schedule is designed to reduce the unfunded actuarial pension liability of the system to zero by not later than June
30, 2030, with annual increases in the scheduled payment amounts of not more than 4.5 percent. The funding schedule must
provide that payment in any year of the schedule is not less than 95 percent of the amount appropriated in the previous fiscal
year. City, town and county systems which have an approved retirement funding schedule receive annual pension funding
grants from the Commonwealth for the first 16 years of such funding schedule. Pursuant to recent legislation, a system
(other than the state employees’ retirement system and the teachers’ retirement system) which conducts an actuarial
valuation as of January 1, 2009, or later, may establish a revised schedule which reduces the unfunded actuarial liability to
zero by not later than June 30, 2040, subject to certain conditions. If the schedule is so extended under such provisions and a
later updated valuation allows for the development of a revised schedule with reduced payments, the revised schedule shall
be adjusted to provide that the appropriation for each year shall not be less than that for such year under the prior schedule,
thus providing for a shorter schedule rather than reduced payments. Norfolk County Retirement System’s last actuarial
study, as of January 1, 2016, indicates that the system is expected to be fully funded by June 30, 2031.
City, town and county systems may choose to participate in the Pension Reserves Investment Trust Fund (the “PRIT Fund”),
which receives additional state funds to offset future pension costs of participating state and local systems. If a local system
participates in the PRIT Fund, it must transfer ownership and control of all assets of its system to the Pension Reserves
Investment Management Board, which manages the investment and reinvestment of the PRIT Fund. Cities and towns with
systems participating in the PRIT Fund continue to be obligated to fund their pension obligations in the manner described
above. The additional state appropriations to offset future pension liabilities of state and local systems participating in the
PRIT Fund are required to total at least 1.3 percent of state payroll. Such additional state appropriations are deposited in the
PRIT Fund and shared by all participating systems in proportion to their interests in the assets of the PRIT Fund as of July 1
for each fiscal year.
Cost-of-living increases for each local retirement system may be granted and funded only by the local system, and only if it
has established a funding schedule. Those statutory provisions are subject to acceptance by the local retirement board and
approval by the local legislative body, which acceptance may not be revoked.
The Town participates in the contributory retirement system of Norfolk County. The annual contributions of the Town to
the Norfolk County Retirement System for the most recent fiscal years and the amount budgeted for fiscal 2018 are as
follows:
Fiscal Year Amount
2018 (budgeted) $4,796,247
2017 4,393,622
2016 3,990,657
2015 3,570,734
2014 3,169,146
2013 3,041,784
As of January 1, 2016 (the most recent date available), the Norfolk County Retirement system had assets valued at
$814,225,634, using an 8.00% rate of return to support an actuarial accrued liability of $1,310,561,438, leaving an
estimated unfunded actuarial liability in the amount of $496,335,804. The Town’s share of this liability is approximately
7.65% or $41,561,656. Additional information regarding the System can be found at:
http://www.mass.gov/perac/docs/forms-pub/reports/valuation-reports/norfolkval16.pdf.
The foregoing data do not include the retirement system costs or liabilities attributable to employees of the county or the
retirement system costs or liabilities of any other entity of which the Town is a constituent part.
21Source page 39
Other Post-Employment Benefits (OPEB). In addition to pension benefits, cities and towns may provide retired
employees with health care and life insurance benefits. The portion of the cost of such benefits paid by cities or towns is
generally provided on a pay-as-you-go basis.
The costs paid by the Town for OPEB for the most recent fiscal years and the amount projected for fiscal 2018 are as
follows:
Fiscal Year Amount
2018 (projected) $4,000,000
2017 3,783,880
2016 3,843,040
2015 4,346,287
2014 5,179,872
2013 4,526,092
The Governmental Accounting Standards Board (“GASB”) Statement Nos. 43 and 45, which require public sector entities to
report the future costs of non-pension, post-employment benefits in their financial statements. These accounting standards
do not require pre-funding such benefits, but the basis applied by the standards for measurement of costs and liabilities for
these benefits is conservative if they continue to be funded on a pay-as-you-go basis and will result in larger yearly cost and
liability accruals than if such benefits were pre-funded in a trust fund in the same manner as traditional pension benefits.
Cities and towns that choose to self-insure all or a portion of the cost of the health care benefits they provide to employees
and retirees may establish a trust fund for the purpose of paying claims. In addition, cities and towns may establish a trust
fund for the purpose of pre-funding other post-employment benefits liability in the same manner as traditional pension
benefits.
The Town was required to implement the GASB reporting requirements for other post-employment benefits beginning in
fiscal year 2009. The Town hired an outside firm to perform an actuarial valuation of its post-employment benefit liability.
The actuarial accrued liability of this obligation to the Town of Canton, as of July 1, 2016 is $86,413,049 on a pay-as-you-go
basis (assuming a 5.25% discount rate). This required an annual contribution by the Town of $4,975,024 in fiscal 2015,
$5,161,825 in fiscal 2016 and $8,795,176 in fiscal 2017 on a pay-as-you-go basis. At the Town’s 2013 Annual Town
Meeting an OPEB Trust Fund was established pursuant MGL Chapter 32B Section 20. The current balance in the fund as of
June 30, 2017 was $2,856,983. The Town contributed an additional $1,000,000 from the fiscal 2018 budget to this fund.
(See Appendix B for more information on “Other Post-Employment Benefits”.)
PROPERTY TAXATION AND VALUATION
Tax Rate and Valuation-General. Property is classified for the purpose of taxation according to its use. The legislature
has in substance created three classes of taxable property: (1) residential real property, (2) open space land, and (3) all other
(commercial, industrial and personal property). Within limits, cities and towns are given the option of determining the share
of the annual levy to be borne by each of the three categories. The share required to be borne by residential real property is
at least 50 percent of its share of the total taxable valuation; the effective rate for open space must be at least 75 percent of
the effective rate for residential real property; and the share of commercial, industrial and personal property must not exceed
175 percent of their share of the total valuation. A city or town may also exempt up to 20 percent of the valuation of
residential real property (where used as the taxpayer’s principal residence) and up to 10 percent of the valuation of
commercial real property (where occupied by certain small businesses). Property may not be classified in a city or town
until the State Commissioner of Revenue certifies that all property in the city or town has been assessed at its fair cash value.
Such certification must take place every three years or pursuant to a revised schedule as may be issued by the Commissioner.
Related statutes provide that certain forest land, agricultural or horticultural land (assessed at the value it has for these
purposes) and recreational land (assessed on the basis of its use at a maximum of 25 percent of its fair cash value) are all
to be taxed at the rate applicable to commercial property. Land classified as forest land is valued for this purpose at five
percent of fair cash value but not less than ten dollars per acre.
22Source page 40
In order to determine appropriate relative values for the purposes of certain distributions to and assessments upon cities
and towns, the Commissioner of Revenue biennially makes his own redetermination of the fair cash value of the taxable
property in each municipality. This is known as the “equalized valuation”. See “Debt Limits” herein.
VALUATIONS (1)
The following shows the assessed and equalized valuations for the current and most recent fiscal years:
Fiscal Year (000)
2018 2017 2016 2015 2014
Real Property (2) $4,571,818 $4,326,618 $4,160,245 $3,917,103 $3,742,671
Personal Property (2) 177,246 171,787 160,467 152,768 141,948
Total $4,749,065 $4,498,405 $4,320,712 $4,069,872 $3,884,619
Equalized Value (3) $4,615,563 $4,615,563 $4,083,658 $4,083,658 $4,131,231
Percent of Total Assessed
to Equalized Valuation 102.9% 97.5% 105.8% 99.7% 94.0%
____________________
(1) Source: Massachusetts Department of Revenue.
(2) As of January 1, of the prior fiscal year.
(3) The equalized valuations in effect for each year.
The following table shows the breakdown of the total assessed valuation for fiscal years 2016 through 2018 by
classification:
(000s)
Fiscal 2018 % of Total Fiscal 2017 % of Total Fiscal 2016 % of Total
Assessed Assessed Assessed Assessed Assessed Assessed
Class Valuation Valuation Valuation Valuation Valuation Valuation
Residential $3,633,566 76.5% $3,508,577 78.0% $3,367,550 77.9%
Commercial 536,026 11.3 459,186 10.2 443,366 10.3
Industrial 402,226 8.5 358,855 8.0 349,329 8.1
Personal 177,246 3.7 171,787 3.8 160,467 3.7
Total $4,749,065 100.0% $4,498,405 100.0% $4,320,712 100.0%
TAX RATES
Tax Rates Per $1,000 (1)
For Fiscal Year
Type of Property 2018 2017 2016 2015 2014
Residential $12.42 $12.79 $12.79 $12.82 $12.87
Open Space 12.42 12.79 12.79 12.82 12.87
Commercial 25.86 26.34 26.36 26.36 26.53
Industrial 25.86 26.34 26.36 26.36 26.53
Personal 25.86 26.34 26.36 26.36 26.53
Average Tax Rate $15.58 $15.77 $15.78 $15.88 $16.08
Full Value Tax Rate (2) $16.03 $15.37 $16.70 $15.83 $15.12
_________________________
(1) Source: Massachusetts Department of Revenue.
(2) Based on the equalized valuation in effect for each year.
23