Canton, Massachusetts · Saved source text
Latest Bond Issuance Report February 2018
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Source page 41
LARGEST TAXPAYERS
The following shows the ten largest taxpayers for fiscal 2018 (1):
Fiscal 2018 % of Total
Nature of Assessed Amount Tax
Name Business Valuation of Tax Levy
Eversource Utility $ 66,625,160 $1,722,927 2.33%
Reebok (2) Headquarters 59,332,500 1,549,630 2.09
Medical Information Tech, Inc. Office 52,738,400 1,363,097 1.84
BAC Canton Holdings LLC Offices 47,058,200 1,229,068 1.66
Hines Global 250 Royall Offices 37,334,000 975,086 1.32
Canton Village Shoppes Retail 28,985,900 757,045 1.02
Spirit Canton LLC Offices 22,025,700 575,255 0.78
Randolph Properties Housing 45,056,200 565,182 0.76
Boston Mutual Offices 21,047,600 549,708 0.74
Columbia Gas Utility 20,457,730 529,037 0.72
Total $400,661,390 $9,816,035 13.26%
_______________
(1) All of the largest taxpayers set forth above are current on their real estate and personal property taxes.
(2) In the Fall of 2017, Reebok moved its headquarters to Boston. The Town expects to announce the new owners of the Reebok campus in early
2018. See “Economic Development” herein.
TAX LEVIES
Levy - General. The principal tax of Massachusetts cities and towns is the tax on real and personal property. The
amount to be levied in each year is the amount appropriated or required by law to be raised for municipal expenditures
less estimated receipts from other sources and less appropriations voted from funds on hand. The total amount levied is
subject to certain limits prescribed by law; for a description of those limits see “Tax Limitations” herein. As to the
inclusion of debt service and final judgments, see “Security and Remedies” herein.
The estimated receipts for a fiscal year from sources other than the property tax may not exceed the actual receipts during
the preceding fiscal year from the same sources unless approved by the State Commissioner of Revenue. Excepting
special funds the use of which is otherwise provided for by law, the deduction for appropriations voted from funds on
hand for a fiscal year cannot exceed the “free cash” as of the beginning of the prior fiscal year as certified by the State
Director of Accounts plus up to nine months' collections and receipts on account of earlier years' taxes after that date.
Subject to certain adjustments, free cash is surplus revenue less uncollected overdue property taxes from earlier years.
Although an allowance is made in the tax levy for abatements (see “Abatements and Overlay” herein) no reserve is
generally provided for uncollectible real property taxes. Since some of the levy is inevitably not collected, this creates a
cash deficiency which may or may not be offset by other items (see “Taxation to Meet Deficits” herein).
Taxation to Meet Deficits. As noted elsewhere (see “Abatements and Overlay” herein) overlay deficits, i.e. tax
abatements in excess of the overlay included in the tax levy to cover abatements, are required to be added to the next tax
levy. It is generally understood that revenue deficits, i.e. those resulting from non-property tax revenues being less than
anticipated, are also required to be added to the tax levy (at least to the extent not covered by surplus revenue).
Amounts lawfully expended since the prior tax levy and not included therein are also required to be included in the
annual tax levy. The circumstances under which this can arise are limited since municipal departments are generally
prohibited from incurring liabilities in excess of appropriations except for major disasters, mandated items, contracts in
aid of housing and renewal projects and other long-term contracts. In addition, utilities must be paid at established rates
and certain established salaries, e.g. civil service, must legally be paid for work actually performed, whether or not
covered by appropriations.
24Source page 42
In the opinion of Bond Counsel, cities and towns are authorized to appropriate sums, and thus to levy taxes, to cover
deficits arising from other causes, such as “free cash” deficits arising from a failure to collect taxes. This is not generally
understood, however, and it has not been the practice to levy taxes to cover free cash deficits. Except to the extent that
such deficits have been reduced or eliminated by subsequent collections of uncollected taxes (including sales of tax titles
and tax possessions), lapsed appropriations, non-property tax revenues in excess of estimates, other miscellaneous items
or funding loans authorized by special act, they remain in existence.
Tax Limitations. Chapter 59, Section 21C of the General Laws, also known as Proposition 2 1/2, imposes two separate
limits on the annual tax levy of a city or town.
The primary limitation is that the tax levy cannot exceed 2 1/2 percent of the full and fair cash value. If a city or town
exceeds the primary limitation, it must reduce its tax levy by at least 15 percent annually until it is in compliance,
provided that the reduction can be reduced in any year to not less than 7 1/2 percent by majority vote of the voters, or to
less than 7 1/2 percent by two-thirds vote of the voters.
For cities and towns at or below the primary limit, a secondary limitation is that the tax levy cannot exceed the maximum
levy limit for the preceding fiscal year as determined by the State Commissioner of Revenue by more than 2 1/2 percent
subject to exceptions for property added to the tax rolls or property which has had an increase, other than as part of a
general revaluation in its assessed valuation over the prior year's valuation.
This “growth” limit on the tax levy may be exceeded in any year by a majority vote of the voters, but an increase in the
secondary or growth limit under this procedure does not permit a tax levy in excess of the primary limitation, since the two
limitations apply independently. In addition, if the voters vote to approve taxes in excess of the “growth” limit for the
purpose of funding a stabilization fund, such increased amount may only be taken into account for purposes of calculating
the maximum levy limit in each subsequent year if the board of selectmen of a town or the city council of a city votes by a
two-thirds vote to appropriate such increased amount in such subsequent year to the stabilization fund. The applicable tax
limits may also be reduced in any year by a majority of the voters.
The State Commissioner of Revenue may adjust any tax limit “to counterbalance the effects of extraordinary, non-
recurring events which occurred during the base year”.
The statute further provides that the voters may exclude from the taxes subject to the tax limits and from the calculations
of the maximum tax levy (a) the amount required to pay debt service on bonds and notes issued before November 4,
1980, if the exclusion is approved by a majority vote of the voters, and (b) the amount required to pay debt service on any
specific subsequent issue for which similar approval is obtained. Even with voter approval, the holders of the obligations
for which unlimited taxes may be assessed do not have a statutory priority or security interest in the portion of the tax
levy attributable to such obligations. As noted above, debt service on $9,216,312 of currently outstanding bonds is
excluded from the limitations of Proposition 2 1/2, subject to the provisions of Chapter 44, Section 20 of the
General Laws. It should be noted that Massachusetts General Laws Chapter 44, Section 20 requires that the taxes
excluded from the levy limit to pay debt service on any such bonds and notes be calculated based on the true interest cost
of the issue. Accordingly, the Department of Revenue limits the amount of taxes which may be levied in each year to pay
debt service on any such bonds and notes to the amount of such debt service, less a pro rata portion of any original issue
premium received by the city or town that was not applied to pay costs of issuance.
Voters may also exclude from the Proposition 2 1/2 limits the amount required to pay specified capital outlay
expenditures or for the city or town’s apportioned share for certain capital outlay expenditures by a regional
governmental unit. In addition, the city council of a city, with the approval of the Mayor if required, or the board of
selectmen or the town council of a town may vote to exclude from the Proposition 2 1/2 limits taxes raised in lieu of
sewer or water charges to pay debt service on bonds or notes issued by the municipality (or by an independent authority,
commission or district) for water or sewer purposes, provided that the municipality's sewer or water charges are reduced
accordingly.
25Source page 43
In addition, Proposition 2 1/2 limits the annual increase in the total assessments on cities and towns by any county,
district, authority, the Commonwealth or any other governmental entity (except regional school districts, the MWRA and
certain districts for which special legislation provides otherwise) to the sum of (a) 2 1/2 percent of the prior year's
assessments and (b) “any increases in costs, charges or fees for services customarily provided locally or for services
subscribed to at local option”. Regional water districts, regional sewerage districts and regional veteran's district may
exceed these limitations under statutory procedures requiring a two-thirds vote of the district's governing body and either
approval of the local appropriating authorities (by two-thirds vote in districts with more than two members or by majority
vote in two-member districts) or approval of the registered voters in a local election (in the case of two-member districts).
Under Proposition 2 1/2 any State law to take effect on or after January 1, 1981 imposing a direct service or cost
obligation on a city or town will become effective only if accepted or voluntarily funded by the city or town or if State
funding is provided. Similarly, State rules or regulations imposing additional costs on a city or town or laws granting or
increasing local tax exemptions are to take effect only if adequate State appropriations are provided. These statutory
provisions do not apply to costs resulting from judicial decisions.
Pledged Taxes. Taxes on certain property in designated development districts may be pledged for the payment of costs of
economic development projects within such districts and may therefore be unavailable for other municipal purposes. The
Town does not have any such districts.
Initiative Petitions. Various other proposals have been made in recent years for legislative amendments to the
Massachusetts Constitution to impose limits on state and local taxes. To be adopted such amendments must be approved
by two successive legislatures and then by the voters at a state election.
CALCULATION OF TAX LEVIES AND LEVY LIMITS
The following table shows the details of the calculation of the tax levies for the current and most recent fiscal years:
(000 omitted)
For Fiscal Year
2018 2017 2016 2015 2014
Gross Amount to be Raised:
Appropriations $108,158 $103,563 $97,191 $93,964 $89,373
Other Local Expenditures 28 31 27 42 41
State and County Charges 1,057 1,002 955 951 946
Overlay Reserve 1,000 1,487 2,001 1,499 1,768
Total Gross Amount to be Raised $110,244 $106,083 $100,174 $96,456 $92,127
Less Estimated Receipts and Other Revenue:
Estimated Receipts from State 9,016 8,251 7,919 7,686 7,546
Estimated Receipts - Local 23,300 21,097 20,118 19,451 18,954
Available Funds Appropriated:
Free Cash 1,665 2,418 2,190 2,852 1,915
Other Available Funds 2,287 3,370 1,751 1,836 1,248
Free Cash and Other Revenue Used to
Reduce the Tax Rate 0 0 0 0 0
Total Estimated Receipts and Revenue 36,268 35,136 31,977 31,826 29,662
Net Amount To Be Raised (Tax Levy) $73,976 $70,947 $68,196 $64,630 $62,465
26Source page 44
The following shows the calculation of levy limits for the current and most recent fiscal years:
(000 omitted)
For Fiscal Year
2018 2017 2016 2015 2014
Primary Levy Limit (1)
$118,727 $112,460 $108,018 $101,747 $97,115
Prior Fiscal Year Levy Limit
2.5% Levy Growth 70,349 67,067 64,150 61,056 58,592
New Growth (2) 1,759 1,677 1,604 1,526 1,465
Overrides 1,373 1,605 1,313 1,568 999
Growth Levy Limit 0 0 0 0 0
Debt Exclusions 73,481 70,349 67,067 64,150 61,056
Capital Expenditure Overrides 1,605 1,559 1,706 1,643 2,020
Tax Levy Limit 0 0 0 0 0
Tax Levy 73,976 70,947 68,196 64,630 62,465
Unused Levy Capacity (3) $ 1,110 $ 962 $ 577 $ 1,164 $ 611
Unused Primary Levy Capacity (4) $45,245 $42,111 $40,951 $37,596 $36,059
__________________
(1) 2.5% of assessed valuation.
(2) Allowed addition for new valuations certified by the Department of Revenue.
(3) Tax Levy Limit less Tax Levy. The additional amount which may be levied without voter approval.
(4) Primary Levy Limit less Growth Levy Limit.
TAX COLLECTIONS AND ABATEMENTS
Payment Dates. The taxes for each fiscal year generally are due in two installments on November 1 (subject to deferral
if tax bills are sent out late) and May 1, unless a city or town accepts a statute providing for quarterly tax payments. The
Town has accepted this provision. Under the statute, preliminary tax payments are to be due on August 1 and November
1 with payment of the actual tax bill (after credit is given for the preliminary payments) in installments on February 1 and
May 1 if actual tax bills are mailed by December 31. Interest accrues on delinquent taxes at the rate of 14 percent per
annum.
Lien. Real property (land and buildings) is subject to a lien for the taxes assessed upon it, subject to any paramount
federal lien and subject to bankruptcy and insolvency laws. (In addition, real property is subject to a lien for certain
unpaid municipal charges or fees.) If the property has been transferred, an unenforced lien expires on the fourth
December 31 after the end of the fiscal year to which the tax relates. If the property has not been transferred by the
fourth December 31, an unenforced lien expires upon a later transfer of the property. Provision is made, however, for
continuation of the lien where it could not be enforced because of a legal impediment.
Personal Liability. The persons against whom real or personal property taxes are assessed are personally liable for the
tax (subject to bankruptcy and insolvency laws). In the case of real property, this personal liability is effectively
extinguished by sale or taking of the property as described in “Taking and Sale” herein.
27Source page 45
The following shows the total tax levy, the reserve for abatements, the net levy and the amounts collected during each
fiscal year and as of a more recent date for the current and most recent fiscal years:
For Fiscal Year
2018 2017 2016 2015 2014
Total Tax Levy $73,975,682 $70,946,770 $68,196,330 $64,629,621 $62,465,128
Overlay Reserve for Abatements 1,000,350 1,486,566 2,001,198 1,498,711 1,767,642
Net Tax Levy (1) $72,975,332 $69,460,204 $66,195,132 $63,130,910 $60,697,486
Amount Collected During
Fiscal Year Payable (2) 69,940,712 $66,960,493 $63,380,847 $61,056,268
Percent of Net Tax Levy n/a 100.7% 101.2% 100.4% 100.6%
Amount Collected Through
11/30/17 (2) $35,689,372 $70,350,147 $67,136,235 $63,873,050 $61,663,391
Percent of Net Tax Levy 48.9% 101.3% 101.4% 101.2% 101.6%
_________________
(1) Net after deduction of overlay reserve for abatements.
(2) Actual collections of levy less refunds and amounts refundable, but including proceeds of tax titles and tax possessions attributed
to such levy but not including abatements or other credits.
Abatements and Overlay. A city or town is authorized to increase each tax levy by an amount approved by the State
Commissioner of Revenue as an “overlay” to provide for tax abatements. If abatements are granted in excess of the
applicable overlay, the excess is required to be added to the next tax levy.
Abatements are granted where exempt real or personal property has been assessed or where taxable real or personal
property has been overvalued or disproportionately valued. The assessors may also abate uncollectible personal property
taxes. They may abate real and personal property taxes on broad grounds (including inability to pay) with the approval of
the State Commissioner of Revenue. But uncollected real property taxes are ordinarily not written off until they become
municipal “tax titles” by purchase at the public sale or by taking, at which time the tax is written off in full by reserving
the amount of the tax and charging surplus.
The following shows the abatements granted during each fiscal year as well as through a more recent date for the current
and most recent fiscal years:
For Fiscal Year
2018 2017 2016 2015 2014
Tax Levy $73,975,682 $70,946,770 $68,196,330 $64,629,621 $62,465,128
Overlay Reserve for Abatements 1,000,350 $1,486,566 $2,001,198 1,498,711 1,767,642
Percent of Tax Levy 1.4% 2.1% 2.9% 2.3% 2.8%
Abatements Granted
During Fiscal Year of Levy $217,492 $451,549 $624,151 $643,897 $743,501
Through 11/30/17 $217,492 $457,820 $657,044 $747,292 $867,042
Taking and Sale. Massachusetts law permits a municipality either to sell by public sale (at which the municipality may
become the purchaser) or to take real property for nonpayment of taxes. In either case the property owner can redeem the
property by paying the unpaid taxes, with interest and other charges, but if the right of redemption is not exercised within
six months (which may be extended an additional year in the case of certain installment payments), it can be foreclosed
by petition to the Land Court. Upon foreclosure, a tax title purchased or taken by the municipality becomes a “tax
possession” and may be held and disposed of in the same manner as other land held for municipal purposes.
Sale of Tax Receivables. Cities and towns are authorized to sell delinquent property tax receivables by public sale or
auction, either individually or in bulk.
28Source page 46
TOWN FINANCES
Budget and Appropriation Process
The annual appropriations of the Town are ordinarily made at the annual meeting which takes place in May.
Appropriations may also be voted at special meetings. The Finance Committee (or the Board of Selectmen if authorized
by by-law or if there is no committee) is required to submit a budget of proposed expenditures at the annual Town
meeting.
Under certain circumstances and subject to certain limits and requirements, the city council of a city, upon the
recommendation of the mayor, may transfer amounts appropriated for the use of one department (except for a municipal light
department or a school department) to another appropriation for the same department or for the use of any other department.
In a town, town meeting may at any time vote to transfer any amount previously appropriated to any other authorized use by
law, and, under certain circumstances and subject to certain limits and requirements, the selectmen of a town, with the
concurrence of the finance committee, may transfer amounts appropriated for the use of any department to any other
appropriation for the same department or to any other department.
Water and sewer department expenditures are generally included in the budgets adopted by city councils and town
meetings but electric and gas department funds may be appropriated by the municipal light boards. Under certain
legislation any city or town which accepts the legislation may provide that the appropriation for the operating costs of any
department may be offset, in whole or in part, by estimated receipts from fees charged for services provided by the
department. It is assumed that this general provision does not alter the pre-existing power of an electric or gas department
to appropriate its own receipts.
The school budget is limited to the total amount appropriated by the town meeting, but the school committee retains full
power to allocate the funds appropriated. State legislation known as the Education Reform Act of 1993, as amended,
imposes certain minimum expenditure requirements on municipalities with respect to funding for education. The
requirements are determined on the basis of formulas affected by various measures of wealth and income, enrollments,
prior levels of local spending and state aid, and other factors. The Town’s net school spending has always exceeded the
minimum required local contribution.
State and county assessments, abatements in excess of overlays, principal and interest not otherwise provided for, and
final judgments are included in the tax levy whether or not included in the budget. Revenues are not required to be set
forth in the budget, but estimated non-tax revenues are taken into account by the assessors in fixing the tax levy.
29Source page 47
Budget Comparison
The following table sets forth the actual budgets for fiscal years 2014-2018:
Category 2018 2017 2016 2015 2014
Property Taxes $73,073,334 $69,583,040 $66,219,139 $63,173,500 $60,602,472
State Aid 8,868,080 8,052,320 7,865,547 7,599,730 8,151,749
Local Receipts 6,468,816 6,263,040 5,907,405 5,834,907 5,574,543
Interfund Transfers 2,795,524 3,580,003 3,088,119 3,071,348 2,258,580
Total Available Revenue $91,205,754 $87,478,403 $83,080,210 $79,679,485 $76,587,344
Appropriations
General Government Services $3,862,242 $ 3,642,520 $ 3,440,639 $ 3,342,838 $ 3,156,306
Public Safety Services 11,017,712 10,434,714 9,798,064 9,583,290 9,400,426
Educational Services 40,221,559 38,572,710 36,259,994 34,548,305 33,320,505
Public Works Service 2,301,790 2,249,215 2,227,728 2,109,896 2,064,147
Public Works Fixed Services 2,656,619 2,524,740 2,416,500 2,106,500 1,963,727
Human Services 1,080,512 1,019,570 938,166 867,151 774,792
Cultural/Recreational Services 2,016,108 1,935,546 1,771,942 1,698,049 1,605,553
Debt Service 4,486,603 4,883,206 4,991,133 4,880,575 5,947,464
Regional Schools 1,184,066 1,205,356 1,130,445 1,108,642 1,069,042
State and County Charges 1,034,849 956,905 951,976 948,532 947,279
Employee Benefits 17,182,776 16,071,936 15,542,282 15,249,366 14,094,153
Miscellaneous 2,205,918 1,854,985 1,735,341 1,486,341 1,277,950
Subtotal 89,550,754 85,351,403 81,204,210 77,929,485 75,621,344
Capital/Articles 1,655,000 2,127,000 1,876,000 1,750,000 966,000
Total Appropriations $91,205,754 $87,478,403 $83,080,210 $79,679,485 $76,587,344
STATE AID
In addition to grants for specified capital purposes (some of which are payable over the life of the bonds issued for the
projects) the Commonwealth provides financial assistance to cities and towns for current purposes. Payments to cities
and towns are derived primarily from a percentage of the State's personal income, sales and use and corporate excise tax
receipts, together with the net receipts from the State Lottery. A municipality’s state aid entitlement is based on a
number of different formulas, of which the “schools” and “lottery” formulas are the most important. Both of the major
formulas tend to provide more state aid to poorer communities. The formulas for determining a municipality’s state aid
entitlement are subject to amendment by the state legislature and, while a formula might indicate that a particular amount of
state aid is owed, the amount of state aid actually paid is limited to the amount appropriated by the state legislature. The
State annually estimates state aid, but the actual state aid payments may vary from the estimate.
30Source page 48
The following table sets forth the amount of state aid to the Town in recent years as well as the amount budgeted for
2018:
Fiscal Total
Year State Aid (1)
2018 (budgeted) $20,000,000
2017 20,785,945
2016 19,102,008
2015 17,771,093
2014 20,403,915
2013 17,977,813
____________________
(1) Includes all funds, not just General Funds.
State School Building Assistance Program
Under its school building assistance program, the Commonwealth of Massachusetts provides grants to cities, towns and
regional school districts for school construction projects. Until July 26, 2004, the State Board of Education was
responsible for approving grants for school projects and otherwise administering the program. Grant amounts ranged
from 50% to 90% of approved project costs. Municipalities generally issued bonds to finance the entire project cost, and
the Commonwealth disbursed the grants in equal annual installments over the term of the related bonds.
Pursuant to legislation which became effective on July 26, 2004, the state legislature created the Massachusetts School
Building Authority (the “Authority”) to finance and administer the school building assistance program. The Authority has
assumed all powers and obligations of the Board of Education with respect to the program. In addition to certain other
amounts, the legislation dedicates a portion of Commonwealth sales tax receipts to the Authority to finance the program.
Projects previously approved for grants by the State Board of Education are entitled to receive grant payments from the
Authority based on the approved project cost and reimbursement rate applicable under the prior law. The Authority has
paid and is expected to continue to pay the remaining amounts of the grants for such projects either in annual installments
to reimburse debt service on bonds issued by the municipalities to finance such projects, or as lump sum payments to
contribute to the defeasance of such bonds.
Projects on the priority waiting list as of July 1, 2004 are also entitled to receive grant payments from the Authority based
on the eligible project costs and reimbursement rates applicable under the prior law. With limited exceptions, the
Authority is required to fund the grants for such projects in the order in which they appear on the waiting list. Grants for
any such projects that have been completed or substantially completed have been paid and are expected to continue to be
paid by the Authority in lump sum payments, thereby eliminating the need for the Authority to reimburse interest
expenses that would otherwise be incurred by the municipalities to permanently finance the Authority’s share of such
project costs. Interest on debt issued by municipalities prior to July 1, 2004 to finance such project costs, and interest on
temporary debt until receipt of the grant, is included in the approved costs of such projects. Grants for any such projects
that have not yet commenced or that are underway have been and are expected to continue to be paid by the Authority as
project costs are incurred by the municipality pursuant to a project funding agreement between the Authority and the
municipality, eliminating the need for the municipality to borrow even on a temporary basis to finance the Authority’s
share of the project costs in most cases.
The range of reimbursement rates for new project grant applications submitted to the Authority on or after July 1, 2007
has been reduced to between 40% and 80% of approved project costs. The Authority promulgated new regulations with
respect to the application and approval process for projects submitted after July 1, 2007. The Authority expects to pay
grants for such projects as project costs are incurred pursuant to project funding agreements between the Authority and
the municipalities. None of the interest expense incurred on debt issued by municipalities to finance their portion of the
costs of new projects will be included in the approved project costs eligible for reimbursement.
31Source page 49
The Town receives a grant from the Authority representing 61% of approved construction and interest costs of the Luce
School project to be payable in equal installments over the life of the bonds.
MOTOR VEHICLE EXCISE
An excise is imposed on the registration of motor vehicles (subject to exemptions) at a uniform rate of $25 per $1,000 of
valuation. The excise is collected by and for the benefit of the municipality in which the motor vehicle is kept.
Valuations are determined by a statutory formula based on manufacturer's list price and year of manufacture. Bills are
payable in 30 days of their issue, and when not paid when due bear interest at 12 per cent per annum. Provision is also
made for suspension of registration by the registrar of motor vehicles, who may also, after a hearing, suspend the owner's
operating license.
The following table sets forth the amount of motor vehicle excise taxes received in each of the most recent fiscal years
and budgeted amount for fiscal 2018:
Fiscal Motor
Year Excise Taxes
2018 (budgeted) $3,850,000
2017 4,505,384
2016 4,555,904
2015 4,119,643
2014 3,714,753
2013 3,473,978
OTHER TAXES
Three additional sources of revenue for local governments are the room occupancy excise tax, local meals excise tax and
the aviation fuel tax. All of these taxes take effect only where accepted by individual municipalities. Under the room
occupancy excise tax, local governments may tax the provision of hotel, motel, lodging house and bed and breakfast
rooms at a rate not to exceed six percent of the cost of renting such rooms. The tax is paid by the operator of the hotel,
motel, lodging house or bed and breakfast rooms to the State Commissioner of Revenue, who in turn pays the tax back to
the municipality in which the rooms are located. The Town voted to impose the room occupancy excise tax. The Town’s
first hotel opened in December, 2011 so no room occupancy excise tax was budgeted for fiscal 2012.
The local meals excise tax, effective for sales of restaurant meals on or after October 1, 2009, is a three-fourths percent
tax on the gross receipts of a vendor from the sale of restaurant meals. The tax is paid by the vendor to the State
Commissioner of Revenue, who in turn pays the tax to the municipality in which the meal was sold. The Town voted to
accept the local meals excise tax effective July 1, 2012.
The following table sets forth the amount of occupancy and meals excise taxes received in each of the most recent fiscal
years and the budgeted amount for fiscal 2018:
Meals
Fiscal Occupancy Excise
Year Tax Tax
2018 (budgeted) $250,000 $300,000
2017 231,306 361,770
2016 251,517 349,710
2015 249,855 331,766
2014 246,061 322,256
2013 224,236 236,669
32Source page 50
The aviation fuel tax is a five percent tax (with a minimum of five cents per gallon) on the sale or use of jet fuel to or by
jet aircraft. The tax is paid by the seller/user of the fuel to the Commissioner of Revenue, who in turn rebates the tax to
the municipality in which the fuel being taxed was transferred into an aircraft. The Town did not vote to accept the
aviation fuel tax.
COMMUNITY PRESERVATION ACT
The Massachusetts Community Preservation Act (the “CPA”) permits cities and towns that accept its provisions to levy a
surcharge on its real property tax levy, dedicate revenue (other than state or federal funds), and to receive state matching
funds for (i) the acquisition, creation, preservation, rehabilitation and restoration of land for recreational use, open space,
and affordable housing and (ii) the acquisition, preservation, rehabilitation and restoration of historic resources. The
provisions of the CPA must be accepted by the voters of the city or town at an election after such provisions have first
been accepted by either a vote of the legislative body of the city or town or an initiative petition signed by 5% of its
registered voters.
A city or town may approve a surcharge of up to 3% (but not less than 1% under certain circumstances) and may make an
additional commitment of funds by dedicating revenue other than state or federal funds, provided that the total funds
collected do not exceed 3% of the real property tax levy, less any exemptions adopted (such as an exemption for low-
income individuals and families and for low and moderate-income senior citizens, an exemption for $100,000 of the
value of each taxable parcel of residential real property or $100,000 of the value of each taxable parcel of class three,
commercial property, and class four, industrial property as defined in Chapter 59, Section 2A of the General Laws, and
an exemption for commercial and industrial properties in cities and towns with classified tax rates). In the event that the
municipality shall no longer dedicate all or part of the additional funds to community preservation, the surcharge on the
real property tax levy of not less than 1% shall remain in effect, provided that any such change must be approved
pursuant to the same process as acceptance of the CPA. The surcharge is not counted in the total taxes assessed for the
purpose of determining the permitted levy amount under Proposition 2½ (see “Tax Limitations” under “TAX LEVIES”
above). A city or town may revoke its acceptance of the provisions of the CPA at any time after 5 years from the date of
such acceptance and may change the amount of the surcharge or the exemptions to the surcharge at any time, including
reducing the surcharge to 1% and committing additional municipal funds as outlined above, provided that any such
revocation or change must be approved pursuant to the same process as acceptance of the CPA.
Any city or town that accepts the provisions of the CPA will receive annual state matching grants to supplement amounts
raised by its surcharge and dedication of revenue. The state matching funds are raised from certain recording and filing
fees of the registers of deeds. Those amounts are deposited into a state trust fund and are distributed to cities and towns
that have accepted the provisions of the CPA, which distributions are not subject to annual appropriation by the state
legislature. The amount distributed to each city and town is based on a statutory formula and the total state distribution
made to any city or town may not exceed 100% of the amount raised locally by the surcharge on the real property tax
levy.
The amounts raised by the surcharge on taxes, the dedication of revenue and received in state matching funds are required
to be deposited in a dedicated community preservation fund. Each city or town that accepts the provisions of the CPA is
required to establish a community preservation committee to study the community preservation needs of the community
and to make recommendations to the legislative body of the city or town regarding the community preservation projects
that should be funded from the community preservation fund. Upon the recommendations of the committee, the
legislative body of the city or town may appropriate amounts from the fund for permitted community preservation
purposes or may reserve amounts for spending in future fiscal years, provided that at least 10% of the total annual
revenues to the fund must be spent or set aside for open space purposes, 10% for historic resource purposes and 10% for
affordable housing purposes.
The CPA authorizes cities and towns that accept its provisions to issue bonds and notes in anticipation of the receipt of
surcharge and dedicated revenues to finance community preservation projects approved under the provisions of the CPA.
Bonds and notes issued under the CPA are general obligations of the city or town and are payable from amounts on
deposit in the community preservation fund. In the event that a city or town revokes its acceptance of the provisions of
33Source page 51
the CPA, the surcharge shall remain in effect until all contractual obligations incurred by the city or town prior to such
revocation, including the payment of bonds or notes issued under the CPA, have been fully discharged.
In November, 2012, the Town voted to accept the provisions of the Community Preservation Act and began collecting
these funds effective July 1, 2013. The balance in the account as of June 30, 2017 was $1,919,849.
INVESTMENTS
Investments of funds of cities and towns, except for trust funds, are generally restricted by Massachusetts General Laws,
Chapter 44, section 55. That statute permits investments of available revenue funds and bond and note proceeds in term
deposits and certificates of deposits of banks and trust companies, in obligations issued or unconditionally guaranteed by
the federal government or an agency thereof with a maturity of not more than one year, in repurchase agreements, with a
maturity of not more than 90 days secured by federal or federal agency securities, in participation units in the
Massachusetts Municipal Depository Trust (“MMDT”), or in shares of SEC-registered money market funds with the
highest possible rating from at least one nationally recognized rating organization.
MMDT is an investment pool created by the Commonwealth. The State Treasurer is the sole trustee and the funds are
managed under contract by an investment firm under the supervision of the State Treasurer’s Office. According to the
State Treasurer the Trust’s investment policy is designed to maintain an average weighted maturity of 90 days or less and
is limited to high-quality, readily marketable fixed income instruments, including U.S. Government obligations and
highly-rated corporate securities with maturities of one year or less.
Trust funds, unless otherwise provided by the donor, may be invested in accordance with section 54 of Chapter 44, which
permits a broader range of investments than section 55, including any bonds or notes that are legal instruments for
savings banks in the Commonwealth. The restrictions imposed by sections 54 and 55 do not apply to city and town
retirement systems.
UNASSIGNED GENERAL FUND BALANCE AND FREE CASH
Under Massachusetts law an amount known as “free cash” is certified as of the beginning of each fiscal year by the State
Bureau of Accounts and this, together with certain subsequent tax receipts, is used as the basis for subsequent
appropriations from available funds, which are not required to be included in the annual tax levy. Subject to certain
adjustments, free cash is surplus revenue less uncollected and overdue property taxes from prior years. The Town
Accountant may certify as available for appropriation an adjusted free cash figure by adding back those uncollected and
overdue property taxes which are subsequently collected between July 1 and the following March 31 of any year.
The following shows the unassigned general fund balance and free cash for the most recent fiscal years:
Unassigned
July 1, Fund Balance Free Cash
2017 $16,128,195 $4,851,739
2016 12,961,775 4,177,587
2015 11,430,875 3,801,359
2014 9,815,657 3,271,361
2013 8,276,920 2,924,558
Free cash amounts certified for the enterprise funds of the Town as of July 1, 2017 (and not included in the above) are as
follows:
Water $1,855,585
Sewer 1,309,835
Skating Rink 44,350
34Source page 52
STABILIZATION FUND
The Town has maintained a Stabilization Fund for several years. Under Massachusetts statutes, funds may be
appropriated from the Fund for any municipal purpose by a two thirds vote of the Town Meeting. The following is the
balance in the account at the end of the most recent fiscal years:
Fiscal Year Balance (1)
2017 $7,067,308
2016 6,426,120
2015 5,754,735
2014 5,074,180
2013 4,610,294
____________________
(1) Included in the Stabilization Fund Balance are funds set aside for school special education. The Stabilization Fund is included in
the “Unassigned” General Fund Balance.
COLLECTIVE BARGAINING
City and town employees (other than managerial or confidential employees) are entitled to join unions and to bargain
collectively on questions of wages, hours and other terms and conditions of employment. The Town has approximately
727 full and part-time employees, of which approximately 86 percent belong to unions or other collective bargaining
groups as follows:
Number of Contract
Union Department People Expires
AFSCME, AFL-CIO State DPW, Library, 72 6/30/19
Council 93, Local 362 Planning Board, Secretaries
and Custodians
Administrative Employees Assoc. Various 5 6/30/18
IAFF, AFL-CIO, Local 1580 Fire 51 6/30/18
Canton Police Association, IBPO Police 37 6/30/18
Canton Police Superior Officers Association Police 3 6/30/18
Canton Teachers Association School 297 8/31/18
Canton School Maintenance and
Custodians Association School 24 6/30/18
Canton School Secretaries Association School 18 6/30/18
Cafeteria Personnel School 26 6/30/18
Educational Support Personnel Association School 94 8/31/18
627
PHYSICAL AND ECONOMIC CHARACTERISTICS
The Town occupies a land area of approximately 19.38 square miles and is a residential community with significant
commercial and industrial activity. Located in Norfolk County, approximately 18 miles south of downtown Boston, it is
bordered on the east by the Town of Randolph, on the north by the Towns of Milton and Dedham, on the west by the
Towns of Westwood and Norwood and on the south by the Towns of Sharon and Stoughton.
The Town’s location has contributed to its vibrant residential and commercial sectors. Canton is 18 miles from
downtown Boston and enjoys excellent access to commuter rail service from two Canton MBTA stations. In addition, the
Town’s location along Interstate 95/State Highway Route 128, the Massachusetts “Technology Highway,” provides
excellent highway access to many of the Commonwealth’s high technology firms. Assessed values of single family
homes in the Town are currently averaging over $500,000.
35Source page 53
ECONOMIC DEVELOPMENT
The Town takes a pro-active approach to encouraging well-planned economic development. The Town appreciates the
significance of commercial and industrial growth and development (and redevelopment) especially in terms of long-term
fiscal stability. The Town continues its focus on future growth, which is sustainable and complimentary to economic
development including employment opportunities for its residents. Last year new growth was more than double the
forecasted growth.
Municipal officials work closely with and receive valuable support from the State Office of Business Development as
well as regional planning support from the Metropolitan Area Planning Council (MAPC). In addition, business advocacy
organizations, such as Canton Association of Business and Industry (CABI), play a vital role.
The Town strives to take full advantage of the latest initiatives and incentives made available to it notably under Chapter
43D for expedited permit approvals and Tax Incremental Financing (TIF). The Town’s continued accomplishments in
promoting 43D sites in Town are discussed in greater detail below.
The Town’s Economic Development Committee (EDC) is also a special resource. The Town regularly takes advantage
of local talent from the community who specialize in finance, banking, development and real estate.
The Town continues to update and publish an economic development recruitment guide which includes pertinent
information sought by private company CEOs when making siting and expansion decisions. The Board of Selectmen
recently published a new business and community guide and has made that information available online as well.
The Town has surpassed its required 10% affordable housing goal as required by State regulation. The Town has
incorporated a continued affordable housing unit goal, within the Housing Action Plan, to ensure the Town keeps pace
with any new market rate unit starts. The recent construction by Avalon Development of additional affordable housing
on Randolph Street further increased the Town’s 40B compliance.
The Town continues to invest in infrastructure improvements such as roads, sewers, and water supply facilities, as well as
various municipal and school facility upgrades. These include: Town Hall, Library, Public Safety Facilities, Public
Works and School building improvement projects. Recently completed is a renovation of a purchased facility to become
a new Senior Center located at 500 Pleasant Street to address the growing aging population in need of expanded and
updated senior services.
In addition, the Town has completed the construction of three important water/sewer projects - the Greenlodge Street
Interceptor Rehabilitation Project and two (2) new water filtration plants. These water filtration plants will provide state-
of-the-art water filtration capabilities and allow for the use of local source water to reduce operating costs, improve water
availability (including redundancy) and filtrate water for customers with the most technologically advanced system
available today. The sewer project has reduced MWRA treatment costs and limited sewer overflows in environmentally
sensitive areas.
All these projects are necessary to support new economic development and community growth as well as minimize
operational costs resulting from deferred maintenance and inefficient building “infrastructure” including HVAC systems.
These projects also improve safety conditions for the users of municipal and school facilities.
The Town’s commitment to sound economic development is further demonstrated by its partnerships with MAPC and
Neponset Valley Chamber of Commerce to coordination with respect to resource allocation and key planning issues
facing the Town. The Town reactivated the Economic Development Committee and created, with Town Meeting, the
Permit Advisory Committee both of which provide technical assistance to businesses new to Canton.
36Source page 54
The Town has instituted a Google-based web search device, which identifies Canton as a business friendly community.
The web product highlights, via a series of videos, the Town of Canton as a solid and desirable business and family
destination. The Town’s continued status as a 43D Expedited Permitting Community has benefitted the Town greatly and
has led to the actual designation of many new priority development sites. This 43D designation, which was granted to the
Town in 2008, came with a $150,000 grant to hire a permit specialist who has completed the administrative and
organizational work necessary to implement the issuance of permits via an integrated and automated town wide permit
system which better serves the public and the Town in terms of real time tracking of permits.
The Town has available a permit guidebook, which lays out the Town’s permitting requirements in an easy to use format.
The goal is to identify key requirements and improve communications, saving applicants time and money. The Permit
Advisory Committee has been a successful endeavor by bringing together key permit granting agency representatives to
counsel and guide any proponent of a proposed commercial endeavor. Participation and results continue to be
overwhelmingly positive.
The Town has also published a Tax Incremental Financing Evaluation Policy document designed to provide a rational
and consistent intake evaluation of TIF requests. The new approach allows the Town to quantify and better evaluate any
request to reduce taxes for a business seeking to locate or expand. Also, the Town launched a Payment in Lieu of Taxes
Program (PILOT) that encourages non-taxable property owners to voluntarily participate in the support of public
services.
The Town has completed construction of the downtown revitalization project commonly referred to as the Streetscape
Improvement Project. This work was funded as a result of a $2.6 million Commonwealth grant received due to the
Town’s “Smart Growth” efforts and rezoning of the Downtown. The Town has also completed safety and efficiency
improvement work on two key intersections ($2.2 million Commonwealth grant) located in the heart of the Route 138
business district. These intersections are located at the Randolph and Washington Street Intersections with Route 138.
These projects have improved both the safety and efficiency of this commercial roadway. The Board of Selectmen has
also empaneled a multi-disciplined group of volunteers who have completed a visioning process which has led to a
variety of re-zoning recommendations with a goal of improving the business climate and enhancing zoning flexibility to
spur additional economic development potential along this vital commercial roadway.
In cooperation with Eversource, a new 345 kV transmission line was installed under Route 138 to ensure an updated,
reliable source of power is available to the Town and the region. The Route 138 Corridor Roadway Improvement project
has completed all segments from Route 128 to Randolph Street. The Massachusetts Department of Transportation has
committed over $10.0 million to rehabilitate Route 138 in Canton from the Stoughton town border to the Milton town
border. This project is scheduled to commence in 2021. The Town has completed the under-grounding of all utilities in
the Downtown, including fire alarm.
The Town was also a participant in a regional planning study to evaluate the effects of new growth in both residential and
commercial construction. The study’s focus was to identify growth related problems such as transportation,
infrastructure, environmental, and economic development issues. In addition, a build-out analysis was completed to
assist and improve public policy decision-making with regard to growth and development related to educational planning.
These studies have been coordinated with other immediate area communities.
The Town is in the process of evaluating the opportunities and/or impacts of the South Coast Rail Project which is
advancing through preliminary and environmental design. This Commonwealth initiative would provide rail service from
Boston to Fall River/New Bedford via a route now determined by the Commonwealth, known as the Stoughton
Alternative, which will impact Canton. Recent correspondence from the MBTA indicates that another less impactful
option on Canton, called the Middleboro option, may be more financially feasible than the Stoughton alternative.
In 2010, the Town received a MORE grant in the amount of $850,000 and completed infrastructure improvements along
Dan Road, an important commercial area of the Town. After much effort, the Town secured the commitment of
Organogenesis, a bio tech firm, now located on Dan Road, which was contemplating relocation. Their commitment to
37Source page 55
stay in Canton and expand was an important part of the Town’s success in obtaining this new funding. They are currently
expanding their facilities into an additional Dan Road location.
Also regarding Dan Rd., the Town has entered into negotiations with Fresenius Kabi, an international drug compounding
company, for a Special Tax Agreement (STA) for a site on Dan Rd. Fresenius Kabi is seeking the STA for an $8.5
million dollar construction project at an existing site on Dan Rd. The project is expected to bring eighty jobs to Canton.
The agreement was approved at the May 2017 Annual Town meeting.
Canton’s Master Plan Initiative required a careful review and analysis of existing conditions balanced with a vision for
the future. The work program is designed to enlist public interest and participation in shaping the Town’s future.
Workshops, neighborhood meetings, leadership interviews and community surveys were conducted. The Town has
conducted an extensive public outreach campaign to better assure good attendance at workshops and neighborhood focus
groups. Existing planning, engineering reports and documents have been reviewed and a written report, which
summarizes their major issues and relevant recommendations, was prepared and remains available in the Town. The
overall objective of the Master Plan initiative was to develop a sustainable residential and business development strategy
for the Town.
Another objective of the Master Plan Initiative was to address the often-conflicting goals of economic development and
resource protection. Sustainable development providing for economic growth that is compatible with resource protection
remains an important Town focus. The Town’s approach includes promoting economic development that is supported by
adequate infrastructure. Thus, the dual objectives of the Master Plan Initiative remain to provide for economic growth
which is (1) compatible with resource protection and (2) supported by adequate infrastructure. To ensure this, the Town
embarked on a four-town regional planning initiative, which is still ongoing. The Towns of Canton, Dedham, Norwood
and Westwood share a common watershed and an interlinked highway system. The Towns continue to work together and
meet regularly to discuss economic development on a regional basis. This regional planning initiative encourages and
reminds area towns that, despite borders, what happens in another neighboring community may have an impact, both
positive and potentially negative, on one another. The Towns plan and communicate to shape growth, protect water
resources, transportation infrastructure and to ensure support and advocacy for growth in the Region to the community’s
benefit. This group continues to pursue state and federal funding for the replacement of the I95/I93 Interchange, a source
of safety concerns and traffic.
The Town’s pro-growth attitude ensures Canton will remain an attractive location for commercial and industrial
development in the future. Residential developments such as Windsor Woods, Indian Woods, Pequit View and Blue Hill
Commons are complemented by commercial developments such as Dunkin Brands with their worldwide corporate
headquarters along with other top Canton companies such as Meditech, Network Engines, One Beacon, Boston Mutual,
Computershare, LoJack and Pepsi.
The Town’s planning focus includes improvements to the highway system that serves the Town and the region. The
Route 128 Add-a-Lane Project was federally funded and completed in 2013. Also, recently approved by the
Massachusetts Highway Division was the advancement of the planning of the I95/I93 interchange project along with
corridor studies of both Routes 1 and Interstate 95. A construction contract has been awarded by MassDOT for the I-
95/Dedham St. corridor construction project. This $55 million project will add a northbound exit ramp off I-95 to
Dedham St., thereby improving access to businesses there and will reduce side street traffic generated by the Westwood
University Station Project. The ultimate improvements to these roadways will facilitate and provide transportation
capacity for further economic development in the region with improved safety and efficiency for commuters, suppliers,
employees, visitors and customers.
The Town entered into a long-term lease of its capped landfill to be used by a private entity to install solar panels on
fifteen acres of the site at no cost to Canton. The lease provides the Town with guaranteed payments of $20,000 per acre,
per year, increasing annually by 2.5%, while allowing the Town the ability to purchase all the electricity generated by
this 5.6 megawatt facility at a substantial savings. The Pine Street Solar Facility went online August 15, 2012 (one of the
largest in the Northeast) and has produced the following financial benefits:
38Source page 56
• The 34 million kWh of solar electricity produced by this facility since its inception have resulted in $6.6 million
of net metering credits which exceeded the $5.8 million paid for generating this solar power.
• In addition, the Town has received lease payments totaling $1.7 million over the last 5 years.
• Overall, the Town has received an annual financial benefit from this solar facility which has helped in balancing
the Town’s budget along with increasing our free cash reserve as follows:
FY 13 - $303,519
FY 14 - $413,585
FY 15 - $508,793
FY 16 - $575,249
FY 17 - $491,082
FY18 to date - $238,337
In 2015 the Town entered into a development agreement with Canton Holdings LLC to redevelop the former Plymouth
Rubber site. The project will create 272 residential units of which 19 will be townhouse units and 253 will be garden
style units. The developer will also create community open space and will preserve two historic buildings built by Paul
Revere.
In the fall of 2017, Reebok, Inc. moved its headquarters from Canton to Boston. The Town has met with Reebok officials
and committed to work with them to redevelop their property. The Town expects to announce the new owners of this
property in the first quarter of calendar 2018. Recent real estate sales in the area, and the Town’s conservative property
valuation of the Reebok Campus, give the Town confidence that Canton will see little if any impact on its commercial tax
rate due to this move.
Some of the developments recently completed, currently underway or expected to begin in the near future are:
Recently Completed Developments
Name Description Completion Date Anticipated Costs
Reiser Corporation Food Equip Manufacturer Fall 2017 $5,134,000
Grimes Crossing Residential Development Winter 2017 2,726,000
TOTAL $7,860,000
Future/In-Progress Developments
Name Description Anticipated Completion Anticipated Costs
Royall Development Hotel/Restaurant Fall 2018 $19,200,000
Plymouth Rubber Residential Development On-going 5,400,000
TOTAL $24,600,000
39Source page 57
Principal Employers
The following are the principal employers, other than the Town itself, located in the Town:
Nature of Approximate
Company Business Current Employees (1)
Dunkin Brands, Inc. Food and Beverages 662
Meditech Hospital Software 554
Computershare Operations Center/Transfer Agents 540
Destination XL Group Retail/Wholesale 475
FIS Global Financial Services 350
Stoneridge Control Devices Automotive Engineering 322
Boston Mutual Insurance Insurance Sales and Service 240
Gray, Gray and Gray LLP Accounting 135
Bank of Canton Banking 110
__________________
Source: The individual corporations as of January 2018.
Principal Industries (1)
Calendar Year Average
Employment by Industry 2016 2015 2014 2013 2012
Construction & Natural Resources 3,088 2,644 2,519 2,395 2,067
Manufacturing 1,828 1,753 1,668 1,672 1,665
Trade, Transportation & Utilities 4,435 4,349 4,347 4,293 4,235
Financial Activities 2,157 2,198 1,960 1,937 2,074
Professional & Business Services 5,359 5,182 5,743 5,985 5,141
Education & Health Services 2,670 2,560 2,587 2,669 2,467
Leisure & Hospitality 1,251 1,249 1,178 1,212 1,160
Information & Other Services 1,471 1,556 1,665 1,715 1,849
Public Administration 477 489 500 498 392
Total Employment 22,746 21,981 22,174 22,378 21,052
Number of Establishments 1,093 1,077 1,062 1,036 1,034
Total Annual Wage (000) $1,723,686 $1,644,378 $1,562,834 $1,550,248 $1,440,690
Average Weekly Wage $1,457 $1,439 $1,355 $1,332 $1,316
_________________________
(1) Source: Massachusetts Executive Office of Labor & Workforce Development.
Building Permits
Calendar
Year Number Estimated Value
2017 through 11/30/17 1,107 $83,626,098
2016 1,271 61,956,390
2015 1,514 75,556,729
2014 1,132 48,949,775
2013 882 48,014,121
2012 691 36,281,045
40Source page 58
OTHER DATA
Employment (1)
Unemployment Rate (%)
Calendar Year
(2) Labor Force Employment Town County State US
2017 (November) 12,042 11,648 3.3 3.0 3.3 3.9
2016 11,787 11,409 3.2 3.2 3.7 4.9
2015 11,695 11,196 4.3 4.3 4.9 5.3
2014 11,505 10,920 5.1 5.0 5.8 6.2
2013 11,303 10,637 5.9 5.8 6.7 7.4
_________________________
(1) Source: Massachusetts Executive Office of Labor & Workforce Development.
(2) Full year averages except for 2017 which is for the month indicated.
Population (1)
Canton Norfolk County Massachusetts
% % %
Year Number Change Number Change Number Change
2016 estimate 23,252 7.8 697,181 3.9 6,811,779 4.0
2010 21,561 3.8 670,850 3.2 6,547,629 3.1
2000 20,775 12.1 650,308 5.6 6,349,097 5.5
1990 18,530 1.9 616,087 1.6 6,016,425 4.9
1980 18,182 0.0 606,587 0.0 5,737,037 0.0
_________________________
(1) Source: U.S. Department of Commerce for actuals and estimates.
Population Density (1)
Canton Norfolk County Massachusetts
Density
Year Number (2) Number Density Number Density
2016 estimate 23,252 1,227.8 697,181 1,744.7 6,811,779 869.1
2010 21,561 1,138.5 670,850 1,678.8 6,547,629 835.4
2000 20,775 1,097.0 650,308 1,627.4 6,349,097 810.0
1990 18,530 978.5 616,087 1,541.7 6,016,425 767.6
1980 18,182 960.1 606,587 1,518.0 5,737,037 732.0
_________________________
(1) Source: U.S. Department of Commerce for actuals and estimates.
(2) Based on 18.9 square miles.
41Source page 59
Population Composition By Age (1)
Canton Norfolk County Massachusetts
Age Number Percent Number Percent Number Percent
Under 5 Years 1,196 5.3 37,241 5.4 363,610 5.4
5 Years to 19 Years 4,399 19.5 130,400 18.9 1,236,509 18.3
20 Years to 64 Years 13,023 57.7 415,069 60.0 4,125,345 61.2
65 Years and Over 3,944 17.5 108,508 15.7 1,016,679 15.1
Total 22,562 100.0 691,218 100.0 6,742,143 100.0
Median Age 42.0 41.0 39.4
Median Age (2000) 39.8 38.1 36.5
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-year estimates.
Per Capita Income Levels (1)
Canton Norfolk County Massachusetts
% % %
Year Amount Change Amount Change Amount Change
2016 5-year estimates $49,206 46.8 $47,306 45.6 $38,069 46.7
1999 33,510 52.1 32,484 54.0 25,952 50.7
1989 22,035 149.9 21,091 138.9 17,224 131.0
1979 8,816 0.0 8,828 0.0 7,457 0.0
% Below Poverty Level (2016 5-year
estimates) 6.4 6.7 11.4
_________________________
(1) Source: U.S. Department of Commerce.
Family Income Distribution (1)
Canton Norfolk County Massachusetts
Income for Families Families Percent Families Percent Families Percent
Less than $10,000 134 2.3 3,649 2.1 57,671 3.5
10,000 - 24,999 257 4.4 7,761 4.5 126,193 7.8
25,000 - 49,999 451 7.7 17,796 10.4 248,686 15.3
50,000 - 74,999 660 11.3 20,973 12.2 242,008 14.9
75,000 - 99,999 774 13.3 22,398 13.1 223,897 13.8
100,000 - 149,999 1,269 21.7 39,111 22.8 336,990 20.7
150,000 or more 2,296 39.3 59,817 34.9 391,749 24.1
Total 5,841 100.0 171,505 100.0 1,627,194 100.0
Median Income $123,250 $114,285 $90,180
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-year estimates.
42Source page 60
Household Income Distribution (1)
Canton Norfolk County Massachusetts
Income for Households Households Percent Households Percent Households Percent
Less than $10,000 348 3.9 11,161 4.3 153,029 6.0
10,000 - 24,999 828 9.3 25,091 9.6 337,371 13.2
25,000 - 49,999 1,088 12.2 37,137 14.3 451,168 17.6
50,000 - 74,999 1,368 15.3 36,471 14.0 396,468 15.5
75,000 - 99,999 1,048 11.8 32,250 12.4 318,777 12.5
100,000 - 149,999 1,643 18.4 50,014 19.2 439,085 17.2
150,000 or more 2,595 29.1 67,937 26.1 462,991 18.1
Total 8,918 100.0 260,061 100.0 2,558,889 100.0
Median Income $93,672 $90,226 $70,954
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-year estimates.
Value Distribution Of Specified Owner-Occupied Housing Units (1)
Canton Norfolk County Massachusetts
Units Number Percent Number Percent Number Percent
Less than $100,000 220 3.2 4,493 2.5 66,304 4.2
100,000 - 199,999 266 3.8 7,329 4.1 216,109 13.6
200,000 - 299,999 776 11.1 29,956 16.8 369,287 23.2
300,000 - 499,999 3,072 44.1 74,048 41.6 562,205 35.4
500,000 - 999,999 2,503 35.9 48,515 27.2 308,410 19.4
1,000,000 or more 126 1.8 13,829 7.8 66,428 4.2
Total 6,963 100.0 178,170 100.0 1,588,743 100.0
Median Value $444,700 $414,000 $341,000
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-yr estimates.
Age Distribution Of Housing Units (1)
Canton Norfolk County Massachusetts
Year Built Number Percent Number Percent Number Percent
2000 or later 1,135 12.2 25,641 9.4 250,599 8.8
1980 to 1999 2,399 25.8 49,755 18.2 519,467 18.3
1940 to 1979 4,138 44.5 123,825 45.3 1,111,262 39.2
1939 or Earlier 1,627 17.5 74,059 27.1 955,330 33.7
Total 9,299 100.0 273,280 100.0 2,836,658 100.0
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-yr estimates.
43Source page 61
Housing Unit Inventory (1)
Canton Norfolk County Massachusetts
Units in Structure Number Percent Number Percent Number Percent
1, Detached 5,908 63.5 158,740 58.1 1,480,037 52.2
1, Attached 667 7.2 14,088 5.2 150,133 5.3
2 to 4 614 6.6 35,972 13.2 595,093 21.0
5 to 9 660 7.1 14,419 5.3 165,245 5.8
10 to 19 737 7.9 12,151 4.4 121,059 4.3
20 or More 713 7.7 36,906 13.5 300,652 10.6
Mobile Home, Trailer, Other -0- 0.0 1,004 0.4 24,439 0.9
Total 9,299 100.0 273,280 100.0 2,836,658 100.0
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-yr estimates.
Educational Attainment (1)
Canton Norfolk County Massachusetts
Years of School Completed Number Percent Number Percent Number Percent
Less than 9th Grade 212 1.3 12,947 2.7 216,787 4.7
9th to 12th Grade, No Diploma 303 1.9 16,629 3.5 245,598 5.3
High School Graduate 2,746 17.1 100,791 20.9 1,167,098 25.1
Some College, No Degree 2,722 16.9 68,196 14.2 743,934 16.0
Associate's Degree 1,297 8.1 36,523 7.6 359,774 7.7
Bachelor's Degree 5,077 31.6 135,256 28.1 1,072,120 23.1
Graduate or Professional Degree 3,725 23.2 111,470 23.1 844,686 18.2
Total 16,082 100.0 481,812 100.0 4,649,997 100.0
High School Graduate or Higher 15,567 96.8 452,236 93.9 4,187,612 90.1
Bachelor's Degree or Higher 8,802 54.7 246,726 51.2 1,916,806 41.2
_________________________
(1) Source: U.S. Department of Commerce. 2016 5-year estimates
Public School Enrollments (1)
Actual Projected
2013-14 2014-15 2015-16 2016-17 2017-18 2018-2019
Pre K – 4 1,346 1,328 1,308 1,347 1,321 1,280
Grades 5 - 8 1,051 1,086 1,065 1,027 1,055 1,025
Grades 9 - 12 858 914 943 954 982 988
Ungraded 66 57 59 51 45 45
Total 3,321 3,385 3,375 3,379 3,353 3,338
___________________
(1) Source: Massachusetts Dept. of Education - As of October 1, each school year.
44Source page 62
School Facilities
School Capacity Oct. 2017 Enrollment
Canton High School 1,000 982
Galvin Middle School 800 736
Hansen Elementary 544 473
Kennedy Elementary 528 530
Luce Elementary 584 499
Rodman Pre-School 80 88
3,536 3,308
The Town is currently conducting studies to assess capacity needs.
LITIGATION
At present there are a number of suits pending in which the Town is a defendant. In the opinion of the Town, none of the
pending litigation is considered likely to result, either individually or in the aggregate, in final judgments which would
materially affect the Town’s financial position.
TOWN OF CANTON
Massachusetts
By: /s/ James R. Murgia
Finance Director/Treasurer
Dated: February 16, 2018
45Source page 63
APPENDIX A
The following Balance Sheets for fiscal years ending June 30, 2013 through 2017, and the Comparative Statements of
Revenues, Expenditures and Changes in Fund Balances for fiscal years ending June 30, 2013 through 2017, have been
taken from the audited financial statements of the Town.
The Town engaged Roselli, Clark & Associates, Certified Public Accountants, to audit the accounts for the Town for the
years ending June 30, 2013 through 2017. The June 30, 2017 audit is reproduced in Appendix B.
Certificate of Achievement for Excellence in Financial Reporting
The Certificate of Achievement for Excellence in Financial Reporting has been awarded to the Town by the Government
Finance Officers Association of the United States and Canada (GFOA) for its Comprehensive Annual Financial Report
(CAFR) for June 30, 2006 through June 30, 2016. The Certificate of Achievement is the highest form of recognition in
the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment
by a government and its management.
A-1Source page 64
TOWN OF CANTON
MASSACHUSETTS
GENERAL FUND
Balance Sheet (1)
June 30,
2017 2016 2015 2014
Assets
Cash and Cash Equivalents $17,575,183 $16,304,708 $14,516,851 $13,388,921
Investments 6,402,782 3,982,225 2,960,871 2,971,619
Receivables, net of uncollectibles:
Real Estate and Personal Property Taxes 498,497 546,198 541,545 451,911
Tax Liens and Foreclosures 1,307,690 1,260,489 1,203,433 1,341,202
Motor Vehicle Excise Taxes 375,283 299,187 478,923 212,688
Intergovernmental 1,740,116 2,125,785 2,499,064 2,860,353
Departmental and other -- 11,239 -- --
Due from Other Funds -- 699,024 293,589 39,618
Other Assets 7,252 1,715,366 1,213,076 651,390
Total Assets $27,906,803 $26,944,221 $23,707,352 $21,917,702
Liabilities and Fund Balances
Liabilities
Warrants Payable $ 1,384,589 $ 1,322,313 $ 957,884 $ 1,152,448
Accrued Payroll and Withholdings 3,701,991 3,531,574 3,849,178 3,562,869
Tax Refunds Payable 1,170,000 2,550,000 1,925,000 1,475,000
Other Liabilities 39,489 39,489 41,894 34,916
Deferred Revenues -- -- 4,344,867 4,624,671
Total Liabilities 6,296,069 7,443,376 11,118,823 10,849,904
Deferred Inflows of Resources
Unavailable Revenues- Property Taxes 1,559,874 1,369,195 -- --
Unavailable Revenues – Motor Vehicle Excise 375,283 299,187 -- --
Unavailable Revenues – Intergovernmental 1,740,116 2,125,785 -- --
Unavailable Revenues – Other -- 11,239 -- --
Total Deferred Inflows of Resources 3,675,273 3,805,406 -- --
Fund Balances
Nonspendable 7,252 -- -- --
Committed 923,152 886,722 364,246 358,148
Assigned 876,862 1,846,942 793,408 893,993
Unassigned 16,128,195 12,961,771 11,430,875 9,815,657
Total Fund Balances 17,935,461 15,695,439 12,588,529 11,067,798
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $27,906,803 $26,944,221 $23,707,352 $21,917,702
_____________________
(1) Excerpts from audited financial statements prepared by Roselli, Clark & Associates, Certified Public Accountants.
A-2Source page 65
TOWN OF CANTON
MASSACHUSETTS
GENERAL FUND
Balance Sheet (1)
June 30,
2013
Assets
Cash and Short-Term Investments $18,785,224
Receivables-net of
Uncollectible Amounts:
Property Taxes 576,418
Tax Liens and Foreclosures 1,531,791
Excise 547,033
Other Assets 228,660
Due from Other Funds 472,315
Due from Other
Governments (2) 3,210,035
Total Assets $25,351,476
Liabilities and Fund Equity
Liabilities
Warrants Payable $ 1,131,795
Payroll Payable 0
Accrued Payroll and Withholdings 3,148,230
Other Liabilities 29,963
Deferred Revenue (2) 5,620,685
Tax Refunds Payable 1,152,000
Total Liabilities $11,082,673
Fund Equity
Restricted (3) $ 5,160,240
Committed 470,608
Assigned 361,035
Unassigned 8,276,920
Total Fund Equity $14,268,803
Total Liabilities
and Fund Equity $25,351,476
_____________________
(1) Excerpts from audited financial statements prepared by Roselli, Clark & Associates, Certified Public Accountants.
(2) Includes State School Building Authority construction grant reimbursements.
(3) Reserved for MSBA Grant.
A-3Source page 66
TOWN OF CANTON
MASSACHUSETTS
Combined Statement of Revenues, Expenditures and Changes in Fund Balances (1)
General Fund
(000 omitted)
Revenues 2017 2016 2015 2014 2013
Property Taxes $71,397 $66,702 $63,274 $61,063 $59,064
Payment in Lieu of Taxes 231 225 222 215 224
Tax Liens 173 147 352 783 220
Excises 4,505 4,556 4,120 3,715 3,474
Hotel and Meals Taxes 593 601 582 568 461
Penalties and Interest 315 254 311 344 324
Departmental and Other 973 1,240 1,102 951 789
Licenses and Permits 1,142 1,035 1,282 818 1,044
Intergovernmental - State 16,703 14,192 11,910 16,882 16,482
Fines and Forfeits 93 120 113 141 110
Earnings on Investments 268 168 142 145 82
MSBA Capital Grant 0 0 0 0
Total Revenues 96,394 89,240 83,410 85,625 82,274
Expenditures
General Government 3,832 3,979 3,806 4,256 3,589
Public Safety 10,799 10,352 10,038 9,745 9,438
Education 40,294 37,781 36,052 34,942 33,426
Public Works 5,965 4,809 5,024 4,649 4,308
Human Services 1,146 1,003 826 794 770
Culture and Recreation 1,987 1,918 1,698 1,703 1,513
Debt Service 4,792 4,993 4,986 6,140 6,063
Intergovernmental Charges 996 927 945 960 960
Employee Benefits 12,017 11,384 11,500 11,081 10,226
Pension Benefits 12,480 9,802 7,321 11,915 11,733
Total Expenditures 94,308 86,949 82,196 86,185 82,026
Excess (Deficiency) of Revenues
Over Expenditures 2,086 2,292 1,215 (560) 248
Other Financing Sources (Uses)
Premium from Issuance of Debt 44 11 109 2,259 101
Proceeds from Refunding Bonds 1,596 515 0 15,185 0
Payments of Refunded Bonds (1,619) (526) 0 (21,740) 0
Operating Transfers - In 1,077 1,648 1,026 2,677 2,260
Operating Transfers - Out (944) (833) (830) (1,023) (1,726)
Total Other Financing Sources 154 815 305 (2,641) 635
(Uses)
Net Change in Fund Balance 2,240 3,107 1,520 (3,201) 882
Fund Balance – Beginning 15,695 12,589 11,068 14,269 13,386
Fund Balance - Ending $17,935 $15,695 $12,589 $11,068 $14,269
____________________
(1) Excerpts from audited financial statements of the Town. Totals may not add due to rounding.
A-4Source page 67
APPENDIX B
There follows in this Appendix the audited financial statements of the Town of Canton, Massachusetts, as of June 30,
2017 prepared by Roselli, Clark & Associates, Certified Public Accountants.
The attached report speaks only as of its date, and only to the matters expressly set forth therein. The auditors have not
been engaged to review this Official Statement or to perform audit procedures regarding the post-audit period, nor have
the auditors been requested to give their consent to the inclusion of their report in this Report. Except as stated in their
report, the auditors have not been engaged to verify the financial information set out in this Report and are not passing
upon and do not assume responsibility for the sufficiency, accuracy or completeness of the financial information
presented.
B-1Source page 68
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Source page 69
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2017Source page 70
On the cover and below: In October 2016 the restored Firefighters’ Memorial Bell was commemorated along with the recently renovated Ponkapoag Fire Station which was re-dedicated to retired Fire Chief Jim Fitzpatrick. Chief Fitzpatrick who served as Canton’s Fire Chief from 1978 to 2001 passed away in July 2017. Ponkapoag Fire Station #2 Re-dedicated to Chief James A. Fitzpatrick, Jr. 2016 Canton's longest serving career fire chief July 31,1978 to September 30, 2007 PREGEED BY HE CLZENS OF : THE TOWN OF CANTON AD [Original embedded text, retained for comparison] On the cover and below: In October 2016 the restored Firefighters’ Memorial Bell was commemorated along with the recently renovated Ponkapoag Fire Station which was re-dedicated to retired Fire Chief Jim Fitzpatrick. Chief Fitzpatrick who served as Canton’s Fire Chief from 1978 to 2001 passed away in July 2017.
Source page 71
Town of Canton, Massachusetts
Comprehensive Annual Financial Report
For the Fiscal Year
July 1, 2016 through June 30, 2017
Prepared by the Finance DepartmentSource page 72
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Source page 73
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ....................................................................................................................... 1-10
Certificate of Achievement For Excellence in Financial Reporting................................................. 11
Organizational Chart Town .............................................................................................................. 12
Organizational Chart Schools ........................................................................................................... 13
Principal Town Officials .................................................................................................................. 14
FINANCIAL SECTION
Independent Auditor’s Report ....................................................................................................... 15-17
Management’s Discussion and Analysis ....................................................................................... 19-31
Basic Financial Statements:
Statement of Net Position .......................................................................................................... 35
Statement of Activities ............................................................................................................... 36
Balance Sheet – Governmental Funds ....................................................................................... 37
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position ............................................................................................ 38
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ........................................................................................................... 39
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ..................................... 40
Statement of Net Position – Proprietary Funds .......................................................................... 41
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds.............. 42
Statement of Cash Flows – Proprietary Funds ........................................................................... 43
Statement of Fiduciary Net Position .......................................................................................... 44
Statement of Changes in Fiduciary Net Position ....................................................................... 45
Notes to Basic Financial Statements ....................................................................................... 46-78
Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability ............................... 80
Schedule of the Town’s Contribution to Pension Plan .............................................................. 80
Schedule of the Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teachers’ Retirement System...................................................................... 81
Schedule of Funding Progress – OPEB ..................................................................................... 82
Schedule of Contribution Funding – OPEB............................................................................... 82
Schedule of Changes in Net OPEB Liability and Related Ratios……………………………. 83
Schedule of Contributions to OPEB Plan…………………………………………………….. 84
Schedule of Investment returns – OPEB Plan………………………………………………....84
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and
Actual – General Fund .................................................................................................. 85-87
Notes to Required Supplementary Information ....................................................................... 88
iSource page 74
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2017
TABLE OF CONTENTS
Page(s)
Combining Statements:
Nonmajor Governmental Funds ............................................................................................ 91-92
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 94-96
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds .......................................................... 98-100
Internal Service Funds ........................................................................................................... 101
Combining Statement of Net Position – Internal Service Funds ..................................... 102
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ............................................................................................ .103
Combining Statement of Cash Flows – Internal Service Funds ....................................... 104
Fiduciary Funds ..................................................................................................................... .105
Statement of Changes in Assets and Liabilities – Agency Fund ..................................... 106
STATISTICAL SECTION
Narrative ..................................................................................................................................... 107
Net Position by Component – Last Ten Fiscal Years...................................................................... 109
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 110-111
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 112
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 113
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years............................................................................ 114
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 115
Property Tax Levies and Collections – Last Ten Fiscal Years........................................................ 116
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 117
Ratios of General Bonded Debt Outstanding .................................................................................. 118
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 119
Direct and Overlapping Governmental Activities Debt .................................................................. 120
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 121
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 122
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 123
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 124
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 125
iiSource page 75
Introductory Section The artificial surface at Canton High School’s Memorial Field was replaced along with the oval running track which was refurbished.
Source page 77
Letter of Transmittal
November 21, 2017
Honorable Board of Selectmen and Citizens of the Town of Canton, Massachusetts:
I am pleased to acknowledge that the Town of Canton has completed its twelfth Comprehensive Annual
Financial Report (CAFR). The report is for the fiscal year ended June 30, 2017, and I am proud that we
have continued this annual tradition of preparing a report that communicates to our constituents and
investors the highest degree of transparency in financial reporting for municipalities.
The Town is responsible for the accuracy, completeness and fairness of the data presented in the CAFR.
This letter of transmittal and the management’s discussion and analysis, located in the financial section
of the CAFR, provide a comprehensive financial overview of the Town and ensure that the financial and
general operations of Town government remain open for easy viewing.
The CAFR represents a complete set of financial statements in conformity with generally accepted
accounting principles in the United States of America (GAAP), that are audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants. This CAFR
meets and exceeds those requirements and presents itself as an informative resource for all those
interested in the financial activities of the Town.
The report is designed to be used by the elected and appointed officials of the Town and others who are
concerned with its management and progress such as bond analysts, banking institutions and rating
agencies as well as the citizens and taxpayers of the Town of Canton.
Since the report consists of management’s representations concerning the finances of the Town,
management assumes full responsibility for the completeness and reliability of all of the information
presented. In addition, management of the Town is responsible for establishing and maintaining an
internal control structure designed to ensure the assets of the Town are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh their
benefits, the Town of Canton’s comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatement.
Town of Canton, Massachusetts Page 1 of 125 Comprehensive Annual Financial ReportSource page 78
The Town’s financial statements have been audited by Roselli, Clark and Associates, a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance on an
annual basis that the financial statements of the Town are free of material misstatement. The independent
audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion
that the Town’s financial statements for the fiscal year ended June 30, 2017 are fairly presented in
conformity with GAAP. The independent auditor’s report is presented as the first component of the
financial section of this report.
The independent audit of the financial statements of the Town was part of a broader, federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of
the financial statements, but also on the audited government’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in the Town’s separately issued Single Audit
Reports Pursuant to Title 2 of the US “Code of Federal Regulations” (CFR) Part 200, “Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement that analysis and should be read in conjunction with it. The
MD&A can be found immediately following the report of the independent auditors.
Profile of the Town
Canton was incorporated as a Town in 1797. The Town is located in eastern Massachusetts,
approximately 18 miles southwest of Boston, has a population of approximately 21,000 and a land area of
approximately 19 square miles. It is situated at the junction of Interstates 95 and 93, with access to Routes
24 and 138, providing an excellent location for residents, businesses and commuters.
Town of Canton, Massachusetts Page 2 of 125 Comprehensive Annual Financial ReportSource page 79
MBTA commuter rail trains on the Providence/Stoughton Line pass through Canton. Some stop at Canton
Junction. This line crosses the Neponset River on the Canton Viaduct, a prominent local landmark. Route
128 Station in neighboring Westwood also carries many Canton commuters into Boston. Amtrak trains
(including the Acela Express high-speed trains) also stop at Route 128, but pass through Canton without
stopping. Another line branches into Stoughton, stopping at Canton Center.
Bus service is available to Mattapan Station in the MBTA system, and Canton’s close proximity to
Boston also places it within a reasonable distance from Logan International Airport, the largest
transportation center in New England.
The Town has a rich and varied industrial heritage, serving as the location of Paul Revere’s copper rolling
mills in post-Colonial times, and as the site of rubber, chemical and woolen manufacturing in more recent
times. Present commercial enterprises play a key role in the Town’s fiscal stability and are considered a
major asset to the community. The prime commercial areas are well located so as to allow direct highway
access without affecting the community’s small town charm.
Many of the Town’s lakes, ponds and wetlands have been protected and preserved for present enjoyment
and future generations. Among the protected areas are the Eleanor Cabot Bradley Reservation, an 82 acre
estate that blends open fields, woodlands and gardens in the shadow of Great Blue Hill and Pequitside
Farm, a town-owned 38 acre conservation and recreation area which offers playing fields, picnicking,
hiking and cross country skiing.
The Town offers a full range of traditional municipal services including police and fire protection,
ambulance and rescue services, education, maintenance of streets and infrastructure, solid waste
collection and disposal, health and human services, cultural and recreational, administrative and financial
services. The Town is a member community of the Massachusetts Water Resources Authority (MWRA)
for its water and sewer services.
Canton prides itself on its quality school system. Canton students consistently perform well on national
and state tests and over 90% of students
graduating from the high school go on to
higher education. The Town is the location
of the Blue Hills Regional Technical School
which provides expanded vocational
education opportunities for high school
students of Canton and eight other area
communities. Canton is also home to one
of the two campuses of Massasoit
Community College. The campus is a
multi-level facility with specialized labs and
art studios that support the technical and
visual arts programs of the College. The
campus also includes the Milton Art
Museum, Akillian Gallery and the College’s Professional Development Center.
An elected, five-member School Committee appoints a School Superintendent who administers the public
school system of the Town. School Committee members, like the Selectmen, are elected at-large to three-
year staggered terms.
Town of Canton, Massachusetts Page 3 of 125 Comprehensive Annual Financial ReportSource page 80
Almost a decade ago, the Town reached its 10% affordable housing requirement mandated by the
Commonwealth of Massachusetts (Commonwealth), which is an important milestone as communities
under the 10% threshold are subject to an appeals process that can overturn local zoning board decisions.
This has allowed the Town to maintain its commitment to developing much needed affordable housing
units in areas of the Town that can accommodate the growth.
The Town operates under the Selectmen, Town Administrator, and Open Town Meeting form of
government. The five elected Selectmen make policy
decisions, and the Town Administrator is responsible
for carrying out the policies of the Selectmen and for
managing the day-to-day operations of the Town.
The policies and procedures of the Board of
Selectmen are detailed in the administrative code that
will continue to evolve and be created over time to
best serve the community.
An annual operating budget is approved by Town
Meeting two months prior to the start of the fiscal
year. This annual budget serves as the foundation for
the Town’s financial planning and control. The
budget is prepared by fund, function (e.g. general government) and department (e.g. finance) allowing the
department heads to allocate resources within the department as they see fit. Transfers between
departments, however, need special approval by Town Meeting unless specifically exempted by state
statute.
Factors Affecting Economic Condition
Canton continues to take a pro-active approach encouraging well planned economic development. The
Town fully appreciates the significance of commercial and industrial growth and development (and
redevelopment) especially in terms of long term fiscal stability. The Town continues its focus on future
growth, which is sustainable and “complimentary” for economic development including employment
opportunities for our residents.
Municipal officials continue to work closely with and receive valuable support from the State Office of
Business Development as well as regional planning support from the Metropolitan Area Planning Council
(MAPC). In addition business advocacy organizations, such as Canton Association of Business and
Industry (CABI) play a vital role. The Town strives to take full advantage of the latest initiatives and
incentives made available to it notably under Chapter 43D for expedited permit approvals and Tax
Incremental Financing (TIF).
The Town’s Economic Development Committee (EDC) is also a special resource. The Town regularly
takes advantage of local talent from the community who specialize in finance, banking, development and
real estate.
The Town continues to update and publish an economic development recruitment guide which includes
pertinent information sought by private company CEO’s when making siting and expansion decisions.
Recently, the Board of Selectmen published a new business and community guide and has made that
information available online as well.
As previously discussed, the Town surpassed its required 10% affordable housing goal as required by
State regulation. The Town has incorporated a continued affordable housing unit goal, within the HousingSource page 81
Action Plan, to ensure the Town keeps pace with any new market rate unit starts. Recently the
construction by Avalon Development of additional affordable housing on Randolph Street has further
increased the Town’s 40B compliance.
The Town’s commitment to sound economic development is further demonstrated by creating
partnerships with (MAPC) Metropolitan Area Planning Council and Neponset Valley Chamber of
Commerce to ensure that the coordination and resource allocation on key planning issues facing the
Town. The Town reactivated the Economic Development Committee and created, with Town Meeting,
the Permit Advisory Committee both of which provide technical assistance to new businesses to Canton.
The Town has instituted a Google-based web search device, which identifies Canton as a business
friendly community. The web product highlights, via a series of videos, the Town of Canton as a solid
and desirable business and family destination. The Town’s continued status as a 43D Expedited
Permitting Community has benefitted the Town greatly and has led to the actual designation of many new
priority development sites. This 43D designation, which was granted to the Town in 2008, came with a
$150,000 grant to hire a permit specialist who has completed the administrative and organizational work
necessary to implement the issuance of permits via an integrated and automated town wide permit system
which better serves the public and the Town in terms of real time tracking of permits.
The Town has available a
permit guidebook, which lays
out the Town’s permitting
requirements in an easy to use
format. The goal is to identify
key requirements and improve
communications, saving
applicants time and money.
The Permit Advisory
Committee has been a
successful endeavor by
bringing together key permit
granting agency representatives
to counsel and guide any
proponent of a proposed commercial endeavor. Participation and results continue to be overwhelmingly
positive. The Town has also published a Tax Incremental Financing Evaluation Policy document designed
to provide a rational and consistent intake evaluation of TIF requests. The new approach allows the Town
to quantify and better evaluate any request to reduce taxes for a business seeking to locate or expand.
Also, the Town launched a Payment in Lieu of Taxes Program (PILOT) that encourages non-taxable
property owners to voluntarily participate in the support of public services.
The Town has completed construction of the downtown revitalization project commonly referred to as the
Streetscape Improvement Project. This work was funded as a result of a $2.6 million dollar
Commonwealth grant received due to the Town’s Smart Growth efforts and rezoning of the Downtown.
The Town has also completed safety and efficiency improvement work on two key intersections ($2.2
million dollar Commonwealth grant) located in the heart of the Route 138 business district. These
intersections are located at the Randolph and Washington Street Intersections with Route 138. These
projects have improved both the safety and efficiency of this commercial roadway. In addition, the Board
of Selectmen has also empanelled a multi-disciplined group of volunteers who have completed a
visioning process which has led to a variety of re-zoning recommendations with a goal of improving the
Town of Canton, Massachusetts Page 5 of 125 Comprehensive Annual Financial Report