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Fiscal Year 2022 Annual Comprehensive Financial Report pdf file
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TOWN OF CANTON, MASSACHUSETTS ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year July 1, 2021 – June 30, 2022
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On the cover and below: The Memorial Field at Canton High School, home of the Canton Bulldogs. Recent renovations to install new bleachers and a press box were completed in the summer of 2022. The cost of the renovation, $1,475,000, was subsidized from a Town borrowing of $1,000,000 and $475,000 from the Town’s ARPA grant. This was the second large renovation to the field in recent years. In fiscal 2018, the Town resurfaced the pitch with synthetic turf. Cover photo credit: Kaestle Boos, Associates Inc. Above: Photos of the bleachers and press box during construction and completion.
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Annual Comprehensive Financial Report
For the Fiscal Year
July 1, 2021 through June 30, 2022
Prepared by the Finance DepartmentSource page 4
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TOWN OF CANTON, MASSACHUSETTS
ANNUAL COMPRHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
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 ....................................................................................................... 17-19
Management’s Discussion and Analysis ....................................................................................... 21-32
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 ....................................................................... 44
Notes to Basic Financial Statements ....................................................................................... 46-78
Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability ............................... 81
Schedule of the Town’s Contribution to Pension Plan .............................................................. 81
Schedule of the Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teachers’ Retirement System ...................................................................... 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 ...................................................................... 88-89Source page 6
TOWN OF CANTON, MASSACHUSETTS
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
TABLE OF CONTENTS
Page(s)
FINANCIAL SECTION (continued)
Combining Statements:
Nonmajor Governmental Funds ............................................................................................ 92-93
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ 94-96
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds .......................................................... 98-100
Internal Service Funds .............................................................................................................. 101
Combining Statement of Net Position – Internal Service Funds ...................................... 102
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ............................................................................................. 103
Combining Statement of Cash Flows – Internal Service Funds ....................................... 104
STATISTICAL SECTION
Narrative .......................................................................................................................................... 107
Net Position by Component – Last Ten Fiscal Years...................................................................... 108
Changes in Net Position – Last Ten Fiscal Years ....................................................................... 109-110
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... 111
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... 112
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years ............................................................................. 113
Direct Property Tax Rates – Last Ten Fiscal Years ........................................................................ 114
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. 115
Property Tax Levies and Collections – Last Ten Fiscal Years........................................................ 116
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 117
Ratios of General Bonded Debt Outstanding .................................................................................. 118
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... 119
Direct and Overlapping Governmental Activities Debt .................................................................. 120
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... 121
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... 122
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. 123
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. 124
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... 125Source page 7
INTRODUCTORY SECTION Above: The Town’s new Zamboni ice resurfacer. Purchased for approximately $150,000, the equipment was subsidized from the Rink’s capital project’s budget. This is the Town’s first electric powered ice resurfacer. An additional one is currently on order.
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Town of Canton, Massachusetts
OFFICE OF THE SELECT BOARD
SELECT BOARD POLICE COMMISSIONERS
UPPER MEMORIAL HALL BOARD OF PUBLIC WORKS
801 WASHINGTON STREET LICENSING BOARD
TEL: (781) 821-5000 CANTON MA 02021
FAX: (781) 821-2935 TOWN ADMINISTRATOR
Email: townadmin@town.canton.ma.us CHARLES E. DOODY
Letter of Transmittal
December 16, 2022
Honorable Select Board and Citizens of the Town of Canton, Massachusetts:
I am pleased to acknowledge that the Town of Canton has completed its seventeenth consecutive Annual
Comprehensive Financial Report (ACFR). The report is for the fiscal year ended June 30, 2022, and I am
proud that we have continued this annual tradition of preparing a report that communicates to our
constituents and investors the highest degree of transparency in financial reporting for municipalities.
The Town is responsible for the accuracy, completeness and fairness of the data presented in the ACFR.
This letter of transmittal and the management’s discussion and analysis, located in the financial section
of the ACFR, 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 ACFR represents a complete set of financial statements in conformity with generally accepted
accounting principles in the United States of America (GAAP), that are audited in accordance with
generally accepted auditing standards by a firm of licensed certified public accountants. This ACFR
meets and exceeds those requirements and presents itself as an informative resource for all those
interested in the financial activities of the Town.
The report is designed to be used by the elected and appointed officials of the Town and others who are
concerned with its management and progress such as bond analysts, banking institutions and rating
agencies as well as the citizens and taxpayers of the Town of Canton.
Since the report consists of management’s representations concerning the finances of the Town,
management assumes full responsibility for the completeness and reliability of all of the information
presented. In addition, management of the Town is responsible for establishing and maintaining an
internal control structure designed to ensure the assets of the Town are protected from loss, theft or
misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial
statements in conformity with GAAP. Because the cost of internal controls should not outweigh their
benefits, the Town of Canton’s comprehensive framework of internal controls has been designed to
provide reasonable rather than absolute assurance that the financial statements will be free from material
misstatement.
Town of Canton, Massachusetts Page 1 of 127 Annual Comprehensive Financial ReportSource page 10
The Town’s financial statements have been audited by Roselli, Clark and Associates, a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance on an
annual basis that the financial statements of the Town are free of material misstatement. The independent
audit involved (1) examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; (2) assessing the accounting principles used and significant estimates made by
management; and (3) evaluating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion
that the Town’s financial statements for the fiscal year ended June 30, 2022 are fairly presented in
conformity with GAAP. The independent auditor’s report is presented as the first component of the
financial section of this report.
The independent audit of the financial statements of the Town was part of a broader, federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of
the financial statements, but also on the audited government’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in the Town’s separately issued Single Audit
Reports Pursuant to Title 2 of the US “Code of Federal Regulations” (CFR) Part 200, “Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards”.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement that analysis and should be read in conjunction with it. The
MD&A can be found immediately following the report of the independent auditors.
Profile of the Town
Canton was incorporated as a Town in 1797. The Town is located in eastern Massachusetts,
approximately 18 miles southwest of Boston, has a population of approximately 23,000 and a land area of
approximately 19 square miles. It is situated at the junction of Interstates 95 and 93, with access to Routes
24 and 138, providing an excellent location for residents, businesses and commuters.
Town of Canton, Massachusetts Page 2 of 127 Annual Comprehensive Financial ReportSource page 11
MBTA commuter rail trains on the Providence/Stoughton Line pass through Canton. Some stop at Canton
Junction. This line crosses the Neponset River on the Canton Viaduct, a prominent local landmark. Route
128 Station in neighboring Westwood also carries many Canton commuters into Boston. Amtrak trains
(including the Acela Express high-speed trains) also stop at Route 128 but pass-through Canton without
stopping. Another line branches into Stoughton, stopping at Canton Center. Bus service is available to
Mattapan Station in the MBTA system, and Canton’s close proximity to Boston also places it within a
reasonable distance from Logan International Airport, the largest transportation center in New England.
The Town has a rich and varied industrial heritage, serving as the location of Paul Revere’s copper rolling
mills in post-Colonial times, and as the site of woolen manufacturing in more recent times. Present
commercial enterprises play a key role in the Town’s fiscal stability and are considered a major asset to
the community. The prime commercial areas are well located so as to allow direct highway access
without affecting the community’s small-town charm.
In August 2020, the Massachusetts legislature passed enabling legislation creating the Revere & Son
Heritage Trust Corporation, a quasi-public/private corporation. The mission of the Corporation is to
establish an open-to-the-public Paul Revere Museum (PRM) of Discovery and Innovation and Paul
Revere Heritage site. The PRM is currently under development on the grounds of the site - a nine-acre
park along the Neponset River created with trails connecting two train stations, and adjacent to 272 new
units of housing. A new bridge with traffic signal provides additional access to the site from Neponset
street. The site features waterfalls, a mill pond, walkways with interpretive signage, and two 19th century
buildings built by Revere and his family - the Copper Rolling Mill and the 174-year old Historic Horse
Barn. The Barn will be a unique museum for history, technology, and learning. The first floor of the
Copper Mill hosts a fine dining restaurant, Northern Spy, serving New England fare. The Second Floor
known as Copper Mill Hall, provides an attractive flexible use space for functions, meetings, and
historical displays
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 Select Board, are elected at-large to
three-year staggered terms.
Town of Canton, Massachusetts Page 3 of 127 Annual Comprehensive Financial ReportSource page 12
About a decade ago, the Town reached its 10% affordable housing requirement mandated by the
Commonwealth of Massachusetts (Commonwealth), which is an important milestone as communities
under the 10% threshold are subject to an appeal process that can overturn local zoning board decisions.
This has allowed the Town to maintain its commitment to developing much needed affordable housing
units in areas of the Town that can accommodate the growth.
The Town operates under the Select Board, Town Administrator, and Open Town Meeting form of
government. The five elected Select Board members make policy decisions, and the Town Administrator
is responsible for carrying out the policies of the Select Board and for managing the day-to-day operations
of the Town. The policies and procedures of the Select Board are detailed in the administrative code that
will continue to evolve and be created over time to best serve the community.
An annual operating budget 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 Select Board published a new business and community guide and has made that information
available online as well.
As previously discussed, the Town surpassed its required 10% affordable housing goal as required by
State regulation. The Town has incorporated a continued affordable housing unit goal, within the Housing
Action Plan, to ensure the Town keeps pace with any new market rate unit starts. Recently the
construction by Avalon Development of additional affordable housing on Randolph Street has further
increased the Town’s 40B compliance. The Town recently voted to establish an Affordable Housing
Trust in order to proactively protect and expand affordable housing units in the Town.
Town of Canton, Massachusetts Page 4 of 127 Annual Comprehensive Financial ReportSource page 13
The Town’s commitment to sound economic development is further demonstrated by creating
partnerships with MAPC and the Neponset Valley Chamber of Commerce to ensure 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 in Canton.
The Town has instituted a Google-based web search device, which identifies Canton as a business-
friendly community. The web product highlights, via a series of videos, the Town of Canton as a solid
and desirable business and family destination. The Town’s continued status as a 43D Expedited
Permitting Community has benefitted the Town greatly and has led to the actual designation of many new
priority development sites. This 43D designation, which was granted to the Town in 2008, came with a
$150,000 grant to hire a permit specialist who has completed the administrative and organizational work
necessary to implement the issuance of permits via an integrated and automated town-wide permit system
which better serves the public and the Town in terms of real time tracking of permits.
The Town has available a permit guidebook, which lays out the Town’s permitting requirements in an
easy-to-use format. The goal is to identify key requirements and improve communications, saving
applicants time and money. The Permit Advisory Committee has been a successful endeavor by bringing
together key permit granting agency representatives to counsel and guide any proponent of a proposed
commercial endeavor. Participation and results continue to be overwhelmingly positive. The Town has
also published a Tax Incremental Financing Evaluation Policy document designed to provide a rational
and consistent intake evaluation of TIF requests. The new approach allows the Town to quantify and
better evaluate any request to reduce taxes for a business seeking to locate or expand. Also, the Town
launched a Payment in Lieu of Taxes Program (PILOT) that encourages non-taxable property owners to
voluntarily participate in the support of public services.
Several years ago, the Town completed construction of the downtown revitalization project commonly
referred to as the Streetscape Improvement Project. This work was funded as a result of a $2.6 million
dollar Commonwealth grant received due to the Town’s Smart Growth efforts and re-zoning of the
Downtown.
In addition, the Town
completed safety and
efficiency improvement
work on two key
intersections ($2.2 million-
dollar Commonwealth
grant) located in the heart of
the Route 138 business
district. These intersections
are located at the Randolph
and Washington Street
Intersections with Route
138. These projects have
improved both the safety
and efficiency of this commercial roadway. The Select Board has also designated a multi-disciplined
group of volunteers who have completed a visioning process which has led to a variety of re-zoning
recommendations with a goal of improving the business climate and enhance zoning flexibility to spur
additional economic development potential along this vital commercial roadway.
Town of Canton, Massachusetts Page 5 of 127 Annual Comprehensive Financial ReportSource page 14
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. The State initiative would provide rail
service from Boston to Fall River/New Bedford via a route now determined by the State, known as the
Stoughton Alternative, which will include impacts in Canton.
A few years ago the Town received a MORE grant in the amount of $850,000 and completed
infrastructure improvements along Dan Road, an important commercial area of Town. After much effort,
the Town secured the commitment of Organogenesis, a bio tech firm, now located on Dan Road, which
was contemplating relocation. The Company’s commitment to stay in Canton and expand was an
important part of the Town’s success in obtaining this new funding.
Canton’s Master Plan Initiative required
a careful review and analysis of existing
conditions balanced with a vision for the
future. The work program is designed to
enlist public interest and participation in
shaping the Town’s future. Workshops,
neighborhood meetings, leadership
interviews and community surveys were
conducted. The Town has conducted an
extensive public outreach campaign to
better assure good attendance at
workshops and neighborhood focus
groups.
Existing planning, engineering reports
and documents have been reviewed and a written report, which summarizes their major issues and
relevant recommendations were prepared and remains available. The overall objective of the Master Plan
initiative was to develop a sustainable residential and business development strategy for the Town.
Brightview Canton is a community of 160 apartment homes for seniors which includes independent
living, dedicated assisted living and a specialized program and environment for people living with
Alzheimer’s and other forms of dementia.
This added to existing residential developments such as Windsor Woods, Indian Woods, Pequit View and
Blue Hill Commons; and provide a nice compliment to commercial developments such as Dunkin Brands
with their worldwide corporate headquarters along with other top Canton companies such as Meditech,
Boston Mutual, Computershare, LoJack and Pepsi.
Town of Canton, Massachusetts Page 6 of 127 Annual Comprehensive Financial ReportSource page 15
There has been increased activity on the development side in the last two years. This includes
the sale and redevelopment of the old Reebok site. In the fall of 2017, Reebok moved to Boston
from its’ decades old home in Canton. Spear Street Capital, an
owner and operator of distinctive office properties, became the
new owner. In 2020 the property was sold to the newly formed
entity of Tufts Associated Health Maintenance Organization,
Inc. (TAHMO). This new company is the result of a merger
between Tufts Health and Harvard Pilgrim Health. TAHMO is
consolidating all of its offices from three other towns to its new
corporate headquarters in Canton. TAHMO is a tax-exempt
entity in the healthcare field. However, the Town negotiated a
30-year payment in lieu of tax (PILOT) agreement with
TAHMO that provided for a $1.6 million PILOT in fiscal year 2022, increasing 3% annually. TAHMO
was attracted to this world-class campus that includes a 518,000 square foot main building along with
three support buildings, two parking structures, a childcare center and a host of fitness amenities,
including an Olympic track, basketball courts, tennis courts and a softball field. Approximately 2,500
employees are anticipated to be headquartered at the new TAHMO corporate home in Canton.
In addition, the following private developments were completed in recent years, or are nearing
completion:
Development projects recently completed or near completion
Name Description Completion Amount
Royall Development Hotel/restaurant Completed 19,200,000
Cardinal's Corner Residential Development Completed 4,131,000
Connor's Wayside Residential Development Completed 4,115,000
Indian Way Residential Development Completed 2,250,000
Stillwater Estates Residential Development On-going 17,100,000
Paul Revere Heritage Site I Residential Development On-going 8,225,000
Paul Revere Heritage Site II Residential Development On-going 8,524,000
Paul Revere Heritage Site III Residential Development On-going 15,000,000
Yorkshire Estates Residential Development On-going 6,949,000
Top Golf Commercial/restaurant On-going 8,200,000
$ 93,694,000
In 2012 the Town entered into a long-term lease of its capped landfill to be used by a private entity to
install solar panels on fifteen acres of the site at no cost to Canton. The lease provides the Town with
guaranteed payments of $20,000 per acre, per year, increasing annually by 2.5%, while allowing the
Town the ability to purchase all the electricity generated by this 5.6-megawatt facility at a substantial
savings.
The Pine Street Solar Facility went online August 15, 2012 (one of the largest in the Northeast) and has
produced the following financial benefits:
• The 62.1 million kwh of solar electricity produced by this facility since its inception have resulted
in $12.8 million of net metering credits which exceeded the $11.5 million paid for generating this
solar power.
• The Town has received lease payments totaling $3.33 million over the last 10 years.
Town of Canton, Massachusetts Page 7 of 127 Annual Comprehensive Financial ReportSource page 16
• Overall, the Town has received an annual financial benefit from this solar facility which has
helped in balancing the Town’s budget along with increasing free cash reserves; total savings
through fiscal year 2022 are over $4.6 million and currently exceed $417,000 per year.
In summary, Town leaders recognize the importance of maintaining a stable tax situation for its residents.
Development on the commercial side helps accomplish this goal and the Town continues to seek out the
means to maintain vigilance in this area.
Property Taxes The growth of the Town’s main source of revenues, property taxes, is capped by
Proposition 2 ½ and can only be overridden through a ballot by the voters. While revenue increases have
been limited in recent years, fixed costs, including health insurance and pension costs, have increased
more proportionally. As a result, balancing the annual budget is a challenge. The Town attempts to
mitigate this impact by conservatively forecasting revenues thus creating free cash in the subsequent year
and keeping expenditures in check.
In March 2021, the Federal Government passed the American Plan Rescue Act (ARPA) which provides
stimulus payments to State and local government to assist recovery from the pandemic. The Town
expects to receive almost $7.0 million from this program by the end of fiscal 2023. The grant proceeds
are required to be obligated by December 31, 2024 and spent by December 31, 2026.
The Town’s available reserves on a
GAAP basis represent the amount in
unassigned fund balance. As discussed
previously, the Town’s reserves have
been increasing on an annual basis since
the stabilization of the great recession in
2011.
These strong reserve levels, when
combined with the Town’s strong
management practices, desirable location
in a strong metropolitan statistical area,
assessed valuations and strong wealth factors directly contributed to an upgrade in the Town’s bond rating
to ‘AAA’. This is the highest investment grade possible. The override and the resulting revenue
flexibility to restore lost services and stabilize budgets in future fiscal years were cited as prominent
factors in the upgrade. The Town is committed to maintaining its reserves at a level expected from
communities that engender the highest bond rating.
Town of Canton, Massachusetts Page 8 of 127 Annual Comprehensive Financial ReportSource page 17
Long-term Financial Planning
Several years ago, the Town implemented a policy of preparing rolling projections. The Town believes
this will provide better insight when preparing annual budgets and will also alert the Town to any
potential budgeting issues far ahead of when these situations become real issues.
The following represents the Town’s summarized budgets for each of the next five years:
2023 2024 2025 2026 2027
Revenues and Other Sources
Real Estate and Personal Property Taxes $ 90,361,116 $ 93,520,061 $ 96,666,400 $ 100,247,188 $ 104,024,469
State Aid 10,697,742 10,767,848 10,873,271 10,979,748 11,087,288
Local Receipts 8,800,000 8,950,000 9,170,000 9,170,000 9,170,000
Transfers and Other Sources 5,848,617 2,907,180 2,859,771 2,699,590 2,447,664
Total Revenues 115,707,475 116,145,089 119,569,442 123,096,526 126,729,421
Expenditures and Other Uses
Education Budget 50,658,405 52,178,157 53,743,502 55,355,807 57,016,481
Municipal Budget 25,025,058 25,775,810 26,549,084 27,345,557 28,165,923
Fixed Costs 33,568,679 34,575,739 35,613,012 36,681,402 37,781,844
State and County Charges 1,568,333 1,615,383 1,663,844 1,713,760 1,765,173
Capital costs and special appropriations 4,887,000 2,000,000 2,000,000 2,000,000 2,000,000
Total Expenditures 115,707,475 116,145,089 119,569,442 123,096,526 126,729,421
Surplus/(Deficit) $ - $ - $ - $ - $ -
Capital Improvements and Financing
The Town continues to invest in infrastructure improvements such as roads, sewers, and water supply
facilities, as well as various municipal and school facility upgrades. These include: Town Hall, Library,
Public Safety facilities, Public Works, Recreational facilities and School building improvement projects.
Recently, the Town completed construction on a proposed $11 million ice rink as well as $6 million in
renovations to the Town pool.
In addition, the Town has completed the construction of two new water filtration plants. These water
filtration plants will provide state of the art water filtration capabilities and allow for the use of local
source water to reduce operating costs, improve water availability (including redundancy) and filtrate
water for customers with the most technologically advanced system available today.
The Town also completed renovations of a former Knights of Columbus Hall and turned it into the new
Senior Center located at 500 Pleasant Street to address the growing, aging population in need of expanded
and updated senior services.
In addition, the Town completed repairs to Shepard Pond dam which was classified by the state as being a
Significant Hazard Dam in poor condition. To help fund this repair project, the Town received a grant
award of $665,000 from the Commonwealth and a $335,000 low interest loan from the Executive Office
of Environmental Affairs.
Town of Canton, Massachusetts Page 9 of 127 Annual Comprehensive Financial ReportSource page 18
Construction of an eight-classroom addition to the Lt. Peter M. Hansen Elementary School was also
completed recently. This addition has alleviated increasing enrollment concerns while enabling more
children to attend an elementary school in their neighborhood.
As part of the annual budget process, the Capital Planning Committee (CPC) recommends the capital
budget for the upcoming year and prepares a five-year plan to address the long-term capital needs of the
Town. The capital spending plan for the next five-year years is over $35 million. This is funded from
bond issuances and estimated revenues.
The Town’s target set aside to finance its capital plan is 5% of recurring revenues. A portion of its annual
capital plan funds smaller capital projects on a pay-as-you-go basis through recurring revenues while
larger capital projects are financed through borrowing.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a
Certificate of Achievement for Excellence in Financial Reporting. This is a very prestigious award and
in order to be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
The GFOA awarded this Certificate of Achievement for Excellence in Financial Reporting to the Town of
Canton for its annual comprehensive financial report for the fiscal year ended June 30, 2021. This was the
sixteenth year that the Town has achieved this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report will meet the Certificate of Achievement Program’s requirements, and we
are submitting it to the GFOA to determine its eligibility for this certificate.
The publication of this annual comprehensive financial report represents an important achievement in the
ability of the Town of Canton to provide enhanced financial information and accountability to its citizens,
elected and appointed officials, and investors. The preparation of this report would not have been
possible without the efficient and dedicated services of the entire staff of the Finance Office.
Special thanks also goes to the certified public accounting firm of Roselli, Clark and Associates for their
advice and assistance in the preparation of this report.
Respectfully submitted,
Charles E. Doody
Town Administrator
William “Randy” Scollins
Finance Director
Town of Canton, Massachusetts Page 10 of 127 Annual Comprehensive Financial ReportSource page 19
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Canton
Massachusetts
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
Town of Canton, Massachusetts Page 11 of 127 Annual Comprehensive Financial ReportSource page 20
TOWN OF CANTON, MASSACHUSETTS
ORGANIZATIONAL CHART
Blue Hills Town
Town Board Planning Select Board Housing Board of Library Select Board
Regional School Clerks
Board Trustees Appointed Bodies
Meeting of Health Board of Assessors Authority
District Office
Town Canton Director Town Town Town Director of Executive Library
Director -Affordable Housing Trust
Moderator Representative Public Health Planner Clerk Administrator Assessing Director -Revere & Son Heritage Trust Corporation
-Registrars of Voters
Finance -Commission on Disability
Executive -Zoning Board of Appeals
Committee
Town Counsel -Water/Sewer Rate Policy Commission
Assistant -Youth Commission
Building -Historical Commission
Renovations -Fair Housing Committee
Town Planner Administrative
Committee Secretary -Cable Advisory Committee
Sealer of Weights -Beautification Committee
-Conservation Commission
Capital
and Measures Secretary -Council on Aging
Planning
Committee -Industrial Development
Financing Authority
-Local Emergency Planning
Committee
-Traffic Study Committee
-Industrial Development Commission
Veteran’s Fire Superintendent Elder and Parks & Conservation
Building Police Human Resource Finance
of Human Services Recreation Commission
Commissioner Director Chief Chief Director Director Director Agent
Public Works Director
Building and Human Elder and
Veteran’s Police Fire Department of Department of Parks &
Zoning Resource Recreation
Office Department. Department Public Works Department Finance Human Services
Department
Building
Animal Control
Maintenance
Department
Department
Town of Canton, Massachusetts Page 12 of 127 Annual Comprehensive Financial ReportSource page 21
CANTON PUBLIC SCHOOLS
CANTON SCHOOL COMMITTEE
ADMINISTRATIVE ASSISTANT TO THE
SUPERINTENDENT/SCHOOL COMMITTEE
SUPERINTENDENT OF SCHOOLS
DIRECTOR .OF CURRICULUM SCHOOL DIRECTOR
BUILDING PRINCIPALS DIRECTOR OF
and INSTRUCTION of FINANCE
STUDENT SERVICES
WIDE AREA EDUCATIONAL SCHOOL
NETWORK TECHNOLOGY SECRETARIES ASSISTANT
SCHOOL COUNCIL SECRETARIES
ADM. ADM.. PRINCIPALS ADMINISTRATIVE ASST.
CAPT.
SPED
K-5 READING PARENT GROUPS
PARENT
BUILDING SPECIALISTS SPECIAL EDUCATION, ADVISORY
TECHNOLOGY DISTRICT ACCOUNTS
FACULTY BUILDING 504, ALT. ED. COUNCIL PAYROLL
SPECIALISTS DEPARTMENT PAYABLE
AND STAFF DEPARTMENT STUDENT SERVICES
COORDINATORS
COORDINATORS FACULTY AND STAFF
COMPUTER PROFESSIONAL
DIRECTOR OF
TEACHERS DEVELOPMENT
CHARMSS FOOD SERVICES
COMMITTEE
CUSTODIANS COLLABORATIVE
FACILITIES
PRIVATE SCHOOLS
DIRECTOR
CAFETERIA
MANAGERS/
CUSTODIANS/ WORKERS
MAINTENANCE
TRANSPORTATION
COORDINATOR
HEALTH
SERVICES
Town of Canton, Massachusetts Page 13 of 127 Annual Comprehensive Financial ReportSource page 22
PRINCIPAL TOWN OFFICIALS
Elected Officials
Select Board John J. Connolly, Chair
Lisa R. Lopez, Vice-Chair
Thomas W, Theodore, Clerk
Christopher J. Connolly, Member
Michael C. Loughran, Member
School Committee Kristian Merenda, Chairperson
Kendall O’ Halloran, Vice-Chair
Maureen Moran, Clerk
Nichola Gallagher, Member
Laura Arbodola, Member
Principal Executive Officers
Town Administrator Charles E. Doody
Finance Director William R. “Randy” Scollins III
Town Accountant Kathy Dooley Butters
Superintendent of Schools Derek Folan
School Director of Finance Stephen Marshall
Police Chief Helena Rafferty
Fire Chief Wendell Robery
DPW Superintendent Michael T. Trotta
Town of Canton, Massachusetts Page 14 of 127 Annual Comprehensive Financial ReportSource page 23
FINANCIAL SECTION
Purchased in 2022, and recently delivered, above is the Fire Department’s new EMS vehicle. At
a cost of $173,000, it was purchased from the Town’s ARPA earmark.
Town of Canton, Massachusetts Page 15 of 127 Annual Comprehensive Financial ReportSource page 24
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INDEPENDENT AUDITOR’S REPORT
Honorable Select Board
Town of Canton, Massachusetts
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Canton,
Massachusetts, (the “Town”) as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Town as of June 30, 2022, and the respective changes in financial
position and cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Town and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Town of Canton, Massachusetts Page 17 of 127 Annual Comprehensive Financial ReportSource page 26
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
▪ Exercise professional judgment and maintain professional skepticism throughout the audit.
▪ Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
▪ Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
▪ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
▪ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and the schedules listed under the required supplementary information section in the
accompanying table of contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Town of Canton, Massachusetts Page 18 of 127 Annual Comprehensive Financial ReportSource page 27
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion of any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16,
2022 on our consideration of the Town’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contract, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Town’s internal control over
financial reporting and compliance.
Roselli, Clark & Associates
Certified Public Accountants
Woburn, Massachusetts
December 16, 2022
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Management’s Discussion and Analysis Town of Canton, Massachusetts Page 21 of 127 Annual Comprehensive Financial Report
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As the management of the Town, we offer readers of the accompanying financial statements this narrative
overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2022.
Financial Highlights
▪ The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows at the close
of the most recent fiscal year by almost $60.9 million (total net position).
▪ The government’s total net position increased by over $10.9 million. This consisted primarily of an
increase in governmental activities’ net position by almost $8.6 million and an increase in Business -
type activities’ net position of over $2.3 million. Details of these changes are discussed in later
sections of the Management Discussion and Analysis.
▪ The Town’s Unassigned Fund Balance reported in the General Fund was almost $22.8 million
(20.5%of General Fund expenditures). Total Fund Balance in the General Fund was almost $30.1
million
(27.1% of General Fund expenditures).
▪ The Town reported a restricted fund balance in its Capital Project Fund of almost $3.5 million. The
Town reported total fund balances of almost $16.2 million in the Combined Nonmajor Governmental
Funds. Almost $16.3 million in Restricted Fund Balances, combined with almost $0.6 million in
Nonspendable Fund Balances which were offset by deficits categorized as unassigned in the amount
of over $0.7 million made up this amount.
▪ The Town’s total debt increased by nearly $9.8 million during the fiscal year. Detail of this net
increase is discussed in the debt section of this Management Discussion and Analysis.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements.
The Town’s basic financial statements comprise three components:
1) government-wide financial statements,
2) fund financial statements, and
3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Town of Canton, Massachusetts Page 23 of 127 Annual Comprehensive Financial ReportSource page 32
The layout and relationship of the financial statements and supplementary information is visually
illustrated as follows:
Required Supplementary Management Discussion and Analysis
Information
Government-wide Financial Statements
Governmental Fund Financial Statements
Basic Proprietary Fund Financial Statements
Financial Statements
Fiduciary Fund Financial Statements
Notes to the Basic Financial Statements
Required Supplementary
Information – Budgetary Reporting with Notes, Pension and
Other than MD&A Other Postemployment Benefits
Other Supplementary
Combining Fund Financial Statements/Schedules
Information
Government-wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. The statement of position presents information on all of the Town’s assets, deferred outflows,
liabilities and deferred inflows, with the net result reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Town is
improving or deteriorating. The statement of activities presents information showing how the
government’s net position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave.)
The government-wide financial statements consist of two classifications; (1) those whose activities are
principally supported by taxes and intergovernmental revenue (governmental activities), and (2) those
whose activities are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities).
The governmental activities of the Town include general government, public safety, highways and streets,
sanitation, education, economic development, debt service, fringe benefits and culture and recreation.
The business-type activities of the Town are comprised of water, sewer and rink enterprise funds.
Town of Canton, Massachusetts Page 24 of 127 Annual Comprehensive Financial ReportSource page 33
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Town, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Accounting guidelines distinguish fund balance between amounts that are considered nonspendable, such
as fund balance associated with inventories, and other amounts that are classified based on the relative
strength of the constraints that control the purposes for which specific amounts can be spent. Beginning
with the most binding constraints, fund balance amounts will be reported in the following classifications:
• Restricted—amounts constrained by external parties, constitutional provision, or enabling
legislation
• Committed—amounts constrained by a government using its highest level of decision-making
authority
• Assigned—amounts a government intends to use for a particular purpose
• Unassigned—amounts that are not constrained at all will be reported in the general fund or in
other major funds if negative
Governmental funds – Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions.
The Town maintains numerous individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund and Capital Projects Fund, which are considered to be
major funds. Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these Nonmajor governmental funds is provided in the
form of combining statements.
The Town adopts an annual appropriated budget for its general fund and its enterprise fund. A budgetary
comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds – The Town maintains two types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses an enterprise fund to account for its water, sewer and rink enterprise funds.
Internal service funds are used to report activities that service all other Town Departments. The Town
uses internal service funds to account for self-insured health insurance claims.
Town of Canton, Massachusetts Page 25 of 127 Annual Comprehensive Financial ReportSource page 34
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because
the resources of those funds are not available to support the Town’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information which includes the schedules of the Town’s
proportionate share of the net pension liability, contributions to the pension plan, the Commonwealth’s
share of the net pension liability of the Massachusetts Teacher’s Retirement System, the funding progress
and contribution funding of its obligation to provide other postemployment benefits to its employees as
well as the Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
General Fund and notes to this schedule.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets exceeded liabilities by almost $60.9 million at the close of the
most recent fiscal year.
Condensed net position data is presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30,
2022 2021 2022 2021 2022 2021
Assets
Currrent and other assets $ 84,704,369 $ 67,454,948 $ 19,454,667 $ 13,307,215 $ 104,159,036 $ 80,762,163
Capital assets, net 112,444,700 111,743,898 57,918,329 54,817,089 170,363,029 166,560,987
Total assets 197,149,069 179,198,846 77,372,996 68,124,304 274,522,065 247,323,150
Deferred outflows of resources 13,605,787 9,168,457 572,501 393,871 14,178,288 9,562,328
Liabilities
Long-term liabilities 146,322,196 144,436,272 33,853,236 27,615,437 180,175,432 172,051,709
Other liabilities 21,712,609 16,544,439 3,954,660 3,401,484 25,667,269 19,945,923
Total liabilities 168,034,805 160,980,711 37,807,896 31,016,921 205,842,701 191,997,632
Deferred inflows of resources 21,069,004 14,317,383 906,845 612,794 21,975,849 14,930,177
Net Position
Net investment in capital assets 86,070,110 85,708,813 31,934,615 31,437,878 118,004,725 117,146,691
Restricted 9,983,304 11,044,088 - - 9,983,304 11,044,088
Unrestricted (74,402,367) (83,683,692) 7,296,141 5,450,585 (67,106,226) (78,233,107)
Total Net Position $ 21,651,047 $ 13,069,209 $ 39,230,756 $ 36,888,463 $ 60,881,803 $ 49,957,672
By far, the largest portion (about $118.0 million) of the Town’s net position reflects its investment in
capital assets (e.g. land, buildings, infrastructure, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The Town uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town’s
investment in its capital assets is reported net of related debt, the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
Town of Canton, Massachusetts Page 26 of 127 Annual Comprehensive Financial ReportSource page 35
An additional portion (almost $10.0 million) of the Town’s net position represents resources that are
subject to external restrictions on how they may be used. Unrestricted net position is reported as a deficit
of over $67.1 million due directly to the recognition of net pension and other postemployment liabilities
that continue to be significant.
Condensed changes in net position data are presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30,
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:
Charges for services $ 7,508,382 $ 6,642,517 $ 15,183,450 $ 15,021,100 $ 22,691,832 $ 21,663,617
Operating grants and contributions 22,498,270 29,450,495 - 150,000 22,498,270 29,600,495
Capital grants and contributions 1,434,480 1,694,958 1,235,807 204,450 2,670,287 1,899,408
General revenues:
Property taxes and tax liens 85,661,392 83,971,060 - - 85,661,392 83,971,060
Unrestricted grants and contributions 2,401,522 2,316,820 - - 2,401,522 2,316,820
Other 8,413,105 7,770,032 42,565 50,776 8,455,670 7,820,808
Total Revenues 127,917,151 131,845,882 16,461,822 15,426,326 144,378,973 147,272,208
Expenses
General government 6,554,007 9,078,637 - - 6,554,007 9,078,637
Public safety 19,436,666 19,806,196 - - 19,436,666 19,806,196
Education 78,799,564 79,983,691 - - 78,799,564 79,983,691
Public works 8,388,727 8,580,554 - - 8,388,727 8,580,554
Health and human services 1,775,067 1,622,066 - - 1,775,067 1,622,066
Culture and recreation 4,212,611 3,503,774 - - 4,212,611 3,503,774
Debt service 582,509 660,193 - - 582,509 660,193
Water - - 6,361,192 6,323,100 6,361,192 6,323,100
Sewer - - 6,782,774 6,652,823 6,782,774 6,652,823
Rink - - 561,725 301,885 561,725 301,885
Total Expenses 119,749,151 123,235,111 13,705,691 13,277,808 133,454,842 136,512,919
Change in net position before transfers 8,168,000 8,610,771 2,756,131 2,148,518 10,924,131 10,759,289
Transfers 413,838 (690,607) (413,838) 690,607 - -
Change in net position 8,581,838 7,920,164 2,342,293 2,839,125 10,924,131 10,759,289
Net position, beginning of year 13,069,209 5,038,592 36,888,463 34,049,338 49,957,672 39,087,930
Restatement for agency funds - 110,453 - - - 110,453
Net position, beginning of year,
as restated 13,069,209 5,149,045 36,888,463 34,049,338 49,957,672 39,198,383
Net position, end of year $ 21,651,047 $ 13,069,209 $ 39,230,756 $ 36,888,463 $ 60,881,803 $ 49,957,672
Town of Canton, Massachusetts Page 27 of 127 Annual Comprehensive Financial ReportSource page 36
Governmental Activities – The governmental activities increased net position by about $8.6 million.
Revenues were about $3.9 million less than the previous year while expenses were about $3.5 million less
than the previous year.
Revenues
Major fluctuations in revenues were from:
1. Property taxes, which at 67% of total revenues represents the largest revenue. The increase over
the prior year of about $1.7 million is due to the levy limit being assessed within the legally
allowable limit under
proposition 2 ½
combined with modest
new growth in
developmental activity.
2. Operating grants and
contributions which
represent 17.6% of total
revenues decreased by
over $7.0 million over the
prior year. The majority of
this was due to a non-cash
decrease in the State special funding situation for schoolteachers under GASB 68, as a result of a
new actuarial valuation. Which caused on behalf revenues and correlative expenses to be $6.1
million lower than the prior year.
3. Total other revenues were less than 10% of total revenues and were individually minor in amount
or consistent with the prior year.
Town of Canton, Massachusetts Page 28 of 127 Annual Comprehensive Financial ReportSource page 37
Expenses
Major fluctuations in expenses were from:
1. Education which represented 65.8% of total expenses and is by far the largest expense category
decreased almost $1.2 million. As discussed under revenue, the Town experienced a non-cash
decrease in its special funding
arrangement for teacher’s pensions
with the State, and the correlative
impact of expense per the new
actuarial study of $6.1 million.
This was offset by increases in
education funded by taxation, to
meet mandatory net school
spending requirements.
2. Public safety costs represent about
16.2% of expenses and were
consistent with the prior year.
3. Other expenses were less than 10% and were individually minor in amount or consistent with the
prior year.
Business-type Activities – Net position of the business-type activities increased over $2.3 million over
the prior year. This was primarily due to an increase in consumption in water and sewer activities and
continued increases in user charges associated with the re-opening of the rink in the previous year with
increased activity due to the easing of social distancing of the pandemic. In addition, the Town received
some one-time State grants.
Fund-wide Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds – The focus of the Town’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Town of Canton, Massachusetts Page 29 of 127 Annual Comprehensive Financial ReportSource page 38
Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
a government’s net resources available for spending at the end of the fiscal year.
As of the close of the current fiscal year, the Town’s governmental funds balance sheet reported a
combined ending fund balance of almost $43.9 million, an increase of almost $5.1 million over the prior
year.
The following is a discussion of the more significant areas:
General Fund
The General Fund ended the year with an unassigned fund balance of almost $22.8 million and a total
fund balance of about $30.1 million. Both increased modestly over prior year amounts.
The Town’s revenues were approximately $3.5 million greater than the prior year. This was primarily
due to statutory increases in property taxes ($2.0 million) allowed to be assessed under Massachusetts
General Laws combined with a new payment in lieu of tax ($1.6 million) assessed to a facility owned by
Tufts. This was offset by increase in expenditures that were appropriated by the Town to match
anticipated revenues. Notably, education expenditures increased by $2.0 million to meet net state
education spending requirements and public safety expenses increased by $1.2 million due to salary
increases, overtime and equipment purchases.
Since revenues and expenditures were consistent in amount the primary increase in the overall fund
balance was due to transfers from other funds appropriated at Town Meeting.
Capital Projects
The Capital projects fund ended the year with almost $3.5 million in restricted fund balances. This
reflected an increase of over $2.4 million over the prior year. This was primarily due to the timing of
bond issuances exceeding capital expenditures.
Combined Nonmajor Funds
The remainder of governmental fund balances are included as Combined Nonmajor Fund Balances and
are classified as either (1) non-spendable, due to being the corpus of an endowment in the amount of
almost $0.6 million; (2) restricted due to constraints placed externally by third-parties of almost $16.3
million and (3) unassigned amounts that are in a deficit position of over $0.7 million.
Revenues and expenditures in this category of funds are typically designed to offset, however, due to the
timing of receipts and disbursements, specifically in school grants, fund balances increased by about $1.4
million.
Proprietary funds – The Town’s proprietary funds are made up of (1) the Water, Sewer and Rink
Enterprise Funds which provides the same type of information found in the government-wide financial
statements under business-type activities and discussed in that section but in more detail; and (2) the
Town’s Internal Service Fund which accounts for the Town’s Health Claims Fund.
The Health Claims Fund has a Net Position balance about $10.6 million. This was an increase of about
$1.5 million. This was due to less claim activity, as health visits continued to be restricted to essential
situations only for part of the year.
Town of Canton, Massachusetts Page 30 of 127 Annual Comprehensive Financial ReportSource page 39
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were not significant (less than 1%)
as aggregate revisions were about $600,000 on a budget in excess of $114 million. These revisions were
spread ratably across all expenditure line items.
Major budget to actual differences on the revenue side included property taxes, which were $1.4 million
over forecast. Collections were robust and the Town continued to aggressively pursue delinquent
accounts through tax title and foreclosure. In addition, excise (motor vehicle, meals and hotel) were $1.1
million over forecast. This was primarily due to the opening up of the economy after the pandemic
against the lowered forecasts by the Town.
On the expenditure side, numerous net minor favorable variances which in total approximated $2.6
million existed. This was primarily a result of increased monitoring of expenditures.
Further detail of budget to actual comparisons may be reviewed as part of the Required Supplementary
Information following the footnotes to the report.
Capital Asset and Debt Administration
Capital Assets – The Town’s investment in capital assets for its governmental and business type
activities as of June 30, 2022, amounts to approximately $170.4 million (net of accumulated depreciation)
an increase from the previous year’s balance of approximately $3.8 million as current year additions
exceeded the annual depreciation provision.
Additional information on the Town’s capital assets can be found in Note II subsection D.
Long-term Debt – State statutes limit the amount of general obligation debt a governmental entity may
issue to 5.0 % of its total assessed valuation. The current debt limitation for the Town is approximately
$283.2 million, which is significantly in excess of the Issuances of debt
Town’s outstanding general obligation debt classified Governmental Activities $ 6,265,500
as inside the debt limit.
Business-Type Activities 9,240,088
At the end of the current fiscal year, the Town had total Debt payments:
debt outstanding including premiums of about $61.8 Governmental Activities (3,892,822)
million. The entire amount comprises debt backed by
Business-Type Activities (2,583,630)
the full faith and credit of the government.
Premium from issuance debt:
The Town’s total debt increased by over $9.8 million
Governmental Activities 584,771
during the fiscal year as detailed in the table on the
Business-Type Activities 846,294
right.
The Town’s most recent credit evaluation resulted in Amortization of premium:
the Town maintaining its “AAA” rating from Standard Governmental Activities (381,749)
and Poor‘s Investment Services for its general Business-Type Activities (286,558)
obligation debt. This is the highest investment grade $ 9,791,894
given by this agency.
Town of Canton, Massachusetts Page 31 of 127 Annual Comprehensive Financial ReportSource page 40
The Town also holds a proportionate share of debt of other governmental units that provide services
within the Town’s boundaries. The debt service from such arrangements is assessed annually to the
Town.
Additional information on the Town’s short-term and long-term debt can be found in Note II under
subsections F and G.
Economic Factors and Next Year’s Budgets and Rates
▪ The Town’s property tax base is made up predominantly of residential real estate taxes, which
comprise about 61% of the Town’s property tax base. The Town also relies heavily on its
commercial and industrial property tax base, which in aggregate comprise about 39% of the Town’s
property tax base. The Town uses a split rate in assessing taxes, thus commercial, industrial and
personal property tax rates are just over double the residential rate. In addition, Chapter 580 of the
Acts of 1980, more commonly referred to as Proposition 2 ½, limits the Town’s ability to increase
taxes in any one year by more than two and one-half percent (2 ½%) of the previous year tax levy.
▪ The Town’s housing market has been very strong for the past several years. This has been bolstered
by mortgage rates at historic lows. Current actions by the Federal Open Market Committee to soften
the economy due to inflation have caused mortgage rates to spike during fiscal year 2023. Such
trends may have an adverse effect on the housing market, and the Town is monitoring this.
▪ Inflation is peaking near 40-year historic highs. This is having adverse impacts on the Town. Wage
inflation cannot guarantee that the Town will be able to maintain employees without increasing
wages. Energy inflation is causing a spike in energy costs. Price inflation is causing a spike in the
price of the delivery and cost of goods and services. The construction building index is nearing
historic highs which may cause the estimates of major capital projects to increase, in addition to the
financing costs of these projects. The Town continues to monitor this situation
All of the above items were considered when the Town developed its budget for fiscal year 2023. The
budget was adopted in May 2022 and the Town’s tax rate was certified in December 2022.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Office of the Finance
Director, 801 Washington Street, Canton, Massachusetts 02021.
Town of Canton, Massachusetts Page 32 of 127 Annual Comprehensive Financial Report