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04-2019 Latest Bond Issuance Report (PDF)
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Source page 41
VALUATIONS (1)
The following shows the assessed and equalized valuations for the current and most recent fiscal years:
Fiscal Year (000)
2019 2018 2017 2016 2015
Real Property (2) $4,808,033 $4,571,818 $4,326,618 $4,160,245 $3,917,103
Personal Property (2) 181,040 177,246 171,787 160,467 152,768
Total $4,989,073 $4,749,065 $4,498,405 $4,320,712 $4,069,872
Equalized Value (3) $5,111,199 $4,615,563 $4,615,563 $4,083,658 $4,083,658
Percent of Total Assessed
to Equalized Valuation 102.4% 102.9% 97.5% 105.8% 99.7%
____________________
(1) Source: Massachusetts Department of Revenue.
(2) As of January 1, of the prior fiscal year.
(3) The equalized valuations in effect for each year.
The following table shows the breakdown of the total assessed valuation for fiscal years 2017 through 2019 by
classification:
(000s)
Fiscal 2019 % of Total Fiscal 2018 % of Total Fiscal 2017 % of Total
Assessed Assessed Assessed Assessed Assessed Assessed
Class Valuation Valuation Valuation Valuation Valuation Valuation
Residential $3,824,234 76.7% $3,633,566 76.5% $3,508,577 78.0%
Commercial 557,406 11.2 536,026 11.3 459,186 10.2
Industrial 426,393 8.5 402,226 8.5 358,855 8.0
Personal 181,040 3.6 177,246 3.7 171,787 3.8
Total $4,989,073 100.0% $4,749,065 100.0% $4,498,405 100.0%
TAX RATES
Tax Rates Per $1,000 (1)
For Fiscal Year
Type of Property 2019 2018 2017 2016 2015
Residential $12.40 $12.42 $12.79 $12.79 $12.82
Open Space 12.40 12.42 12.79 12.79 12.82
Commercial 25.77 25.86 26.34 26.36 26.36
Industrial 25.77 25.86 26.34 26.36 26.36
Personal 25.77 25.86 26.34 26.36 26.36
Average Tax Rate $15.52 $15.58 $15.77 $15.78 $15.88
Full Value Tax Rate (2) $16.78 $16.03 $15.37 $16.70 $15.83
_________________________
(1) Source: Massachusetts Department of Revenue.
(2) Based on the equalized valuation in effect for each year.
23Source page 42
LARGEST TAXPAYERS
The following shows the ten largest taxpayers for fiscal 2019 (1):
Fiscal 2019 % of Total
Nature of Assessed Amount Tax
Name Business Valuation of Tax Levy
Eversource Utility $ 64,128,330 $1,652,587 2.13%
Spear Street Capital Offices 60,053,600 1,563,006 2.02
Medical Information Tech, Inc. Office 57,169,800 1,472,520 1.90
BAC Canton Holdings LLC Offices 49,754,400 1,294,967 1.67
Hines Global 250 Royall Offices 39,120,900 1,022,218 1.32
Boston Mutual Offices 34,460,650 896,880 1.16
Canton Village Shoppes Retail 30,079,300 792,032 1.02
Randolph Properties Housing 53,626,400 671,605 0.87
Spirit Canton LLC Offices 22,969,700 597,823 0.77
Columbia Gas Utility 21,574,800 555,983 0.72
Total $432,936,880 $10,519,621 13.58%
_______________
(1) All of the largest taxpayers set forth above are current on their real estate and personal property taxes.
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 43
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 $7,352,990 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.
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
25Source page 44
(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
2019 2018 2017 2016 2015
Gross Amount to be Raised:
Appropriations $112,396 $108,158 $103,563 $97,191 $93,964
Other Local Expenditures 44 28 31 27 42
State and County Charges 1,183 1,057 1,002 955 951
Overlay Reserve 984 1,000 1,487 2,001 1,499
Total Gross Amount to be Raised $114,606 $110,244 $106,083 $100,174 $96,456
Less Estimated Receipts and Other Revenue:
Estimated Receipts from State 9,180 9,016 8,251 7,919 7,686
Estimated Receipts - Local 22,003 23,300 21,097 20,118 19,451
Available Funds Appropriated:
Free Cash 3,257 1,665 2,418 2,190 2,852
Other Available Funds 2,728 2,287 3,370 1,751 1,836
Free Cash and Other Revenue Used to
Reduce the Tax Rate 0 0 0 0 0
Total Estimated Receipts and Revenue 37,168 36,268 35,136 31,977 31,826
Net Amount To Be Raised (Tax Levy) $77,438 $73,976 $70,947 $68,196 $64,630
26Source page 45
The following shows the calculation of levy limits for the current and most recent fiscal years:
(000 omitted)
For Fiscal Year
2019 2018 2017 2016 2015
Primary Levy Limit (1) $124,727 $118,727 $112,460 $108,018 $101,747
Prior Fiscal Year Levy Limit 73,841 70,349 67,067 64,150 61,056
2.5% Levy Growth 1,837 1,759 1,677 1,604 1,526
New Growth (2) 915 1,373 1,605 1,313 1,568
Overrides 0 0 0 0 0
Growth Levy Limit 76,233 73,481 70,349 67,067 64,150
Debt Exclusions 1,322 1,605 1,559 1,706 1,643
Capital Expenditure Overrides 0 0 0 0 0
Tax Levy Limit 77,556 75,086 71,908 68,774 65,794
Tax Levy 77,438 73,976 70,947 68,196 64,630
Unused Levy Capacity (3) $ 117 $ 1,110 $ 962 $ 577 $ 1,164
Unused Primary Levy Capacity (4) $48,493 $45,245 $42,111 $40,951 $37,596
__________________
(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 46
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
2019 2018 2017 2016 2015
Total Tax Levy $77,438,400 $73,975,682 $70,946,770 $68,196,330 $64,629,621
Overlay Reserve for Abatements 983,745 1,000,350 1,486,566 2,001,198 1,498,711
Net Tax Levy (1) $76,454,654 $72,975,332 $69,460,204 $66,195,132 $63,130,910
Amount Collected During
Fiscal Year Payable (2) n/a $72,812,949 69,940,712 $66,960,493 $63,380,847
Percent of Net Tax Levy n/a 99.8% 100.7% 101.2% 100.4%
Amount Collected Through
2/1/19 (2) $57,371,753 $73,265,536 $70,501,958 $67,485,221 $63,848,077
Percent of Net Tax Levy 75.0% 100.4% 101.5% 101.9% 101.1%
_________________
(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
2019 2018 2017 2016 2015
Tax Levy $77,438,400 $73,975,682 $70,946,770 $68,196,330 $64,629,621
Overlay Reserve for Abatements $983,746 $1,000,350 $1,486,566 $2,001,198 1,498,711
Percent of Tax Levy 1.3% 1.4% 2.1% 2.9% 2.3%
Abatements Granted
During Fiscal Year of Levy n/a $697,692 $451,549 $624,151 $643,897
Through 2/1/19 $224,537 $705,320 $530,697 $722,579 $749,742
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 47
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 48
Budget Comparison
The following table sets forth the actual budgets for fiscal years 2015-2019:
Category 2019 2018 2017 2016 2015
Property Taxes $76,420,611 $73,073,334 $69,583,040 $66,219,139 $63,173,500
State Aid 9,073,243 8,868,080 8,052,320 7,865,547 7,599,730
Local Receipts 6,772,736 6,468,816 6,263,040 5,907,405 5,834,907
Interfund Transfers 5,280,374 2,795,524 3,580,003 3,088,119 3,071,348
Total Available Revenue $97,546,964 $91,205,754 $87,478,403 $83,080,210 $79,679,485
Appropriations
General Government Services $3,991,167 $3,862,242 $ 3,642,520 $ 3,440,639 $ 3,342,838
Public Safety Services 11,521,775 11,017,712 10,434,714 9,798,064 9,583,290
Educational Services 42,396,405 40,221,559 38,572,710 36,259,994 34,548,305
Public Works Service 2,339,283 2,301,790 2,249,215 2,227,728 2,109,896
Public Works Fixed Services 2,646,619 2,656,619 2,524,740 2,416,500 2,106,500
Human Services 1,064,869 1,080,512 1,019,570 938,166 867,151
Cultural/Recreational Services 2,108,854 2,016,108 1,935,546 1,771,942 1,698,049
Debt Service 4,639,138 4,486,603 4,883,206 4,991,133 4,880,575
Regional Schools 1,234,066 1,184,066 1,205,356 1,130,445 1,108,642
State and County Charges 1,070,314 1,034,849 956,905 951,976 948,532
Employee Benefits 18,358,856 17,182,776 16,071,936 15,542,282 15,249,366
Miscellaneous 2,021,618 2,205,918 1,854,985 1,735,341 1,486,341
Subtotal 93,392,964 89,550,754 85,351,403 81,204,210 77,929,485
Capital/Articles 4,154,000 1,655,000 2,127,000 1,876,000 1,750,000
Total Appropriations $97,546,964 $91,205,754 $87,478,403 $83,080,210 $79,679,485
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.
The following table sets forth the amount of state aid to the Town in recent years as well as the amount budgeted for 2019:
Fiscal Total
Year State Aid (1)
2019 (budgeted) $20,000,000
2018 23,294,033
2017 20,785,945
2016 19,102,008
2015 17,771,093
2014 20,403,915
____________________
(1) Includes all funds, not just General Funds.
30Source page 49
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.
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.
31Source page 50
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 2019:
Fiscal Motor
Year Excise Taxes
2019 (budgeted) $4,000,000
2018 4,703,198
2017 4,505,384
2016 4,555,904
2015 4,119,643
2014 3,714,753
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 2019:
Meals
Fiscal Occupancy Excise
Year Tax Tax
2019 (budgeted) $200,000 $350,000
2018 230,326 373,495
2017 231,306 361,770
2016 251,517 349,710
2015 249,855 331,766
2014 246,061 322,256
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.
32Source page 51
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 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, 2018 was $2,413,529.
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
33Source page 52
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
2018 $17,224,537 $4,383,423
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
Free cash amounts certified for the enterprise funds of the Town as of July 1, 2018 (and not included in the above) are as
follows:
Water $1,615,054
Sewer 2,028,086
Skating Rink 73,022
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)
2018 $7,692,837
2017 7,067,308
2016 6,426,120
2015 5,754,735
2014 5,074,180
____________________
(1) Included in the Stabilization Fund Balance are funds set aside for the solar facility The Stabilization Fund is included in the
“Unassigned” General Fund Balance.
34Source page 53
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 735
full and part-time employees, of which approximately 87% belong to unions or other collective bargaining groups as
follows:
Number of Contract
Union Department People Expires
AFSCME, AFL-CIO State DPW, Library, 77 6/30/19
Council 93, Local 362 Planning Board, Secretaries
and Custodians
Administrative Employees Assoc. Various 6 6/30/21
IAFF, AFL-CIO, Local 1580 Fire 54 6/30/21
Canton Police Association, IBPO Police 39 6/30/21
Canton Police Superior Officers Association Police 3 6/30/21
Canton Teachers Association School 296 8/31/19
Canton School Maintenance and
Custodians Association School 24 6/30/21
Canton School Secretaries Association School 20 6/30/21
Cafeteria Personnel School 25 6/30/21
Educational Support Personnel Association School 94 8/31/21
638
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 and by the City of Boston.
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.
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.
35Source page 54
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.
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.
36Source page 55
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 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 Road., 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 Road. Fresenius Kabi is seeking the STA for an $8.5 million
dollar construction project at an existing site on Dan Road. 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
37Source page 56
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, 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:
The 37 million kWh of solar electricity produced by this facility since its inception has resulted in $7.1 million of
net metering credits which exceeded the $6.2 million paid for generating this solar power.
In addition, the Town has received lease payments totaling $1.9 million over the last 6 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 free cash reserve as follows:
FY 13 - $303,519
FY 14 - $413,585
FY 15 - $498,069
FY 16 - $556,205
FY 17 - $461,428
FY 18 - $507,845
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. Spear Street Capital, an owner of distinctive
office properties, purchased Reebok’s former headquarters in March, 2018.
38Source page 57
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
Acorn Estates Residential Development Spring 2018 $4,275,000
Future/In-Progress Developments
Name Description Anticipated Completion Anticipated Costs
Royall Development Hotel/Restaurant Summer 2020 $19,200,000
Paul Revere Heritage Site Residential Development On-going 8,225,000
TOTAL $27,425,000
Principal Employers
The following are the principal employers, other than the Town itself, located in the Town:
Nature of Approximate
Company Business Current Employees
Dunkin Brands, Inc. Food and Beverages (1) 633
Computershare Operations Center/Transfer Agents 540
Meditech Hospital Software 504
Destination XL Group Retail/Wholesale 446
FIS Global Financial Services 350
Stoneridge Control Devices Automotive Engineering 255
Boston Mutual Insurance Insurance Sales and Service 229
Pappas Rehabilitation Hospital Pediatric Hospital 220
Gray, Gray and Gray LLP Accounting 107
Bank of Canton Banking 104
__________________
Source: The individual corporations as of February 2019.
(1) Corporate Headquarters.
39Source page 58
Principal Industries (1)
Calendar Year Average
Employment by Industry 2017 2016 2015 2014 2013
Construction & Natural Resources 3,012 3,088 2,644 2,519 2,395
Manufacturing 1,930 1,828 1,753 1,668 1,672
Trade, Transportation & Utilities 4,143 4,435 4,349 4,347 4,293
Financial Activities 2,083 2,157 2,198 1,960 1,937
Professional & Business Services 5,394 5,359 5,182 5,743 5,985
Education & Health Services 2,842 2,670 2,560 2,587 2,669
Leisure & Hospitality 1,278 1,251 1,249 1,178 1,212
Information & Other Services 1,582 1,471 1,556 1,665 1,715
Public Administration 470 477 489 500 498
Total Employment 22,735 22,746 21,981 22,174 22,378
Number of Establishments 1,101 1,093 1,077 1,062 1,036
Total Annual Wage (000) $1,746,057 $1,723,686 $1,644,378 $1,562,834 $1,550,248
Average Weekly Wage $1,477 $1,457 $1,439 $1,355 $1,332
_________________________
(1) Source: Massachusetts Executive Office of Labor & Workforce Development.
Building Permits
Calendar
Year Number Estimated Value
2018 1,196 $138,008,575 (1)
2017 1,093 81,930,003
2016 1,271 61,956,390
2015 1,514 75,556,729
2014 1,132 48,949,775
2013 882 48,014,121
________________
(1) Includes $74,892,177 for the Blue Hills Regional School Project.
OTHER DATA
Employment (1)
Unemployment Rate
Calendar Year (2) Labor Force Employment Town County State US
2018 (December) 12,850 12,527 2.5 2.4 2.7 3.7
2017 12,227 11,797 3.5 3.3 3.7 4.4
2016 12,004 11,601 3.4 3.4 3.9 4.9
2015 11,707 11,220 4.2 4.2 4.8 5.3
2014 11,575 10,976 5.2 5.0 5.7 6.2
_________________________
(1) Source: Massachusetts Executive Office of Labor & Workforce Development.
(2) Full year averages except for 2018 which is for the month indicated.
40Source page 59
Population (1)
Canton Norfolk County Massachusetts
Year Number % Change Number % Change Number % Change
2017 estimate 23,444 8.7 700,322 4.4 6,859,819 4.8
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
Year Number Density (2) Number Density Number Density
2017 estimate 23,444 1,237.9 700,322 1,752.5 6,859,819 875.2
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.
Population Composition By Age (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Age Number (%) Number (%) Number (%)
Under 5 Years 1,259 5.5 37,428 5.4 362,855 5.3
5 Years to 19 Years 4,348 19.0 129,588 18.7 1,229,762 18.1
20 Years to 64 Years 13,221 57.9 416,500 60.0 4,146,951 61.1
65 Years and Over 4,001 17.5 110,873 16.0 1,049,751 15.5
Total 22,829 100.0 694,389 100.0 6,789,319 100.0
Median Age 41.1 41.0 39.4
Median Age (2000) 39.8 38.1 36.5
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates.
41Source page 60
Per Capita Income Levels (1)
Canton Norfolk County Massachusetts
% %
Year Amount % Change Amount Change Amount Change
2017 5-year estimates $50,869 51.8 $49,816 53.4 $39,913 53.8
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 (2017 5-
year estimates) 6.0% 6.5% 11.1%
_________________________
(1) Source: U.S. Department of Commerce.
Family Income Distribution (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Income for Families Families (%) Families (%) Families (%)
Less than $10,000 131 2.2 3,308 1.9 56,902 3.5
10,000 - 24,999 198 3.3 7,344 4.2 118,641 7.2
25,000 - 49,999 354 6.0 16,407 9.4 241,405 14.7
50,000 - 74,999 724 12.2 20,286 11.7 236,935 14.4
75,000 - 99,999 742 12.5 21,357 12.3 218,799 13.3
100,000 - 149,999 1,308 22.1 39,643 22.8 344,327 20.9
150,000 or more 2,460 41.6 65,442 37.7 430,610 26.1
Total 5,917 100.0 173,787 100.0 1,647,619 100.0
Median Income $126,623 $120,087 $94,110
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates.
Household Income Distribution (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Income for Households Households (%) Households (%) Households (%)
Less than $10,000 363 4.0 10,363 4.0 148,170 5.7
10,000 - 24,999 759 8.4 23,552 9.0 324,816 12.6
25,000 - 49,999 959 10.6 35,231 13.4 442,384 17.1
50,000 - 74,999 1,470 16.3 35,483 13.5 390,219 15.1
75,000 - 99,999 1,023 11.3 31,670 12.1 317,494 12.3
100,000 - 149,999 1,680 18.6 51,412 19.6 451,683 17.5
150,000 or more 2,772 30.7 74,613 28.4 510,949 19.8
Total 9,026 100.0 262,324 100.0 2,585,715 100.0
Median Income $96,583 $95,668 $74,167
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates.
42Source page 61
Value Distribution Of Specified Owner-Occupied Housing Units (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Units Number (%) Number (%) Number (%)
Less than $100,000 194 2.8 4,490 2.5 63,524 3.9
100,000 - 199,999 303 4.3 6,746 3.7 205,591 12.8
200,000 - 299,999 685 9.8 27,002 14.8 354,531 22.0
300,000 - 499,999 2,908 41.7 74,472 40.9 572,911 35.5
500,000 - 999,999 2,659 38.1 53,518 29.4 340,606 21.1
1,000,000 or more 229 3.3 15,653 8.6 75,166 4.7
Total 6,978 100.0 181,881 100.0 1,612,329 100.0
Median Value $460,200 $433,000 $352,600
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates.
Age Distribution Of Housing Units (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Year Built Number (%) Number (%) Number (%)
2000 or later 1,116 12.1 27,211 9.9 266,492 9.3
1980 to 1999 2,223 24.0 50,572 18.3 530,038 18.5
1940 to 1979 4,134 44.7 123,547 44.8 1,113,226 38.9
1939 or Earlier 1,784 19.3 74,595 27.0 955,233 33.3
Total 9,257 100.0 275,925 100.0 2,864,989 100.0
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates.
Housing Unit Inventory (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Units in Structure Number (%) Number (%) Number (%)
1, Detached 5,786 62.5 161,550 58.5 1,496,092 52.2
1, Attached 604 6.5 14,273 5.2 151,949 5.3
2 to 4 639 6.9 35,273 12.8 596,427 20.8
5 to 9 682 7.4 14,331 5.2 166,765 5.8
10 to 19 769 8.3 12,138 4.4 122,890 4.3
20 or More 767 8.3 37,383 13.5 306,265 10.7
Mobile Home, Trailer, Other 10 0.1 977 0.4 24,601 0.9
Total 9,257 100.0 275,925 100.0 2,864,989 100.0
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates.
43Source page 62
Educational Attainment (1)
Canton Norfolk County Massachusetts
Percent Percent Percent
Years of School Completed Number (%) Number (%) Number (%)
Less than 9th Grade 189 1.2 13,045 2.7 216,649 4.6
9th to 12th Grade, No Diploma 293 1.8 16,704 3.4 241,431 5.1
High School Graduate 2,897 17.8 97,264 20.0 1,162,683 24.7
Some College, No Degree 2,427 14.9 67,495 13.9 741,582 15.8
Associate's Degree 1,300 8.0 35,935 7.4 363,330 7.7
Bachelor's Degree 5,159 31.7 138,379 28.5 1,101,605 23.4
Graduate or Professional Degree 4,021 24.7 116,394 24.0 879,256 18.7
Total 16,286 100.0 485,216 100.0 4,706,536 100.0
High School Graduate or Higher 15,804 97.0 455,467 93.9 4,248,456 90.3
Bachelor's Degree or Higher 9,180 56.4 254,773 52.5 1,980,861 42.1
_________________________
(1) Source: U.S. Department of Commerce. 2017 5-year estimates
Public School Enrollments (1)
Actual Projected
2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Pre K – 4 1,328 1,308 1,347 1,321 1,291 1,287
Grades 5 - 8 1,086 1,065 1,027 1,055 1,015 1,026
Grades 9 - 12 914 943 954 982 971 982
982Ungraded 57 59 51 45 52 50
Total 3,385 3,375 3,379 3,353 3,329 3,345
___________________
(1) Source: Massachusetts Dept. of Education - As of October 1, each school year.
School Facilities
School Capacity Oct. 2018 Enrollment
Canton High School 1,000 971
Galvin Middle School 800 726
Hansen Elementary 544 484
Kennedy Elementary 528 521
Luce Elementary 584 487
Rodman Pre-School 80 88
3,536 3,277
The Town is currently conducting studies to assess capacity needs.
44Source page 63
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: April 8, 2019
45Source page 64
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APPENDIX A
The following Balance Sheets for fiscal years ending June 30, 2015 through 2018, and the Comparative Statements of
Revenues, Expenditures and Changes in Fund Balances for fiscal years ending June 30, 2015 through 2018, 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, 2015 through 2018. The June 30, 2018 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, 2017. 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 66
TOWN OF CANTON
MASSACHUSETTS
GENERAL FUND
Balance Sheet (1)
June 30,
2018 2017 2016 2015
Assets
Cash and Cash Equivalents $17,212,144 $17,575,183 $16,304,708 $14,516,851
Investments 7,150,877 6,402,782 3,982,225 2,960,871
Receivables, net of uncollectibles:
Real Estate and Personal Property Taxes 350,494 498,497 546,198 541,545
Tax Liens and Foreclosures 1,311,710 1,307,690 1,260,489 1,203,433
Motor Vehicle Excise Taxes 379,470 375,283 299,187 478,923
Intergovernmental 1,341,647 1,740,116 2,125,785 2,499,064
Departmental and other -- -- 11,239 --
Due from Other Funds 854,784 -- 699,024 293,589
Other Assets 15,376 7,252 1,715,366 1,213,076
Total Assets $28,616,502 $27,906,803 $26,944,221 $23,707,352
Liabilities and Fund Balances
Liabilities
Warrants Payable $ 1,334,850 $ 1,384,589 $ 1,322,313 $ 957,884
Accrued Payroll and Withholdings 3,709,311 3,701,991 3,531,574 3,849,178
Tax Refunds Payable 470,796 1,170,000 2,550,000 1,925,000
Other Liabilities 39,489 39,489 39,489 41,894
Deferred Revenues -- -- -- 4,344,867
Total Liabilities 5,554,446 6,296,069 7,443,376 11,118,823
Deferred Inflows of Resources
Unavailable Revenues – Property Taxes 1,459,388 1,559,874 1,369,195 --
Unavailable Revenues – Motor Vehicle Excise 379,470 375,283 299,187 --
Unavailable Revenues – Intergovernmental 1,341,647 1,740,116 2,125,785 --
Unavailable Revenues – Other -- -- 11,239 --
Total Deferred Inflows of Resources 3,180,505 3,675,273 3,805,406 --
Fund Balances
Nonspendable 15,376 7,252 -- --
Restricted 15,918 -- -- --
Committed 1,026,447 923,152 886,722 364,246
Assigned 1,599,273 876,862 1,846,942 793,408
Unassigned 17,224,537 16,128,195 12,961,771 11,430,875
Total Fund Balances 19,881,551 17,935,461 15,695,439 12,588,529
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances $28,616,502 $27,906,803 $26,944,221 $23,707,352
_____________________
(1) Excerpts from audited financial statements prepared by Roselli, Clark & Associates, Certified Public Accountants.
A-2Source page 67
TOWN OF CANTON
MASSACHUSETTS
Combined Statement of Revenues, Expenditures and Changes in Fund Balances (1)
General Fund
(000 omitted)
Revenues 2018 2017 2016 2015 2014
Property Taxes $73,672 $71,397 $66,702 $63,274 $61,063
Payment in Lieu of Taxes 237 231 225 222 215
Tax Liens 297 173 147 352 783
Excises 4,703 4,505 4,556 4,120 3,715
Hotel and Meals Taxes 604 593 601 582 568
Penalties and Interest 365 315 254 311 344
Departmental and Other 1,086 973 1,240 1,102 951
Licenses and Permits 1,235 1,142 1,035 1,282 818
Intergovernmental - State 18,164 16,703 14,192 11,910 16,882
Fines and Forfeits 115 93 120 113 141
Earnings on Investments 402 268 168 142 145
MSBA Capital Grant 0 0 0 0 0
Total Revenues 100,881 96,394 89,240 83,410 85,625
Expenditures
General Government 4,081 3,832 3,979 3,806 4,256
Public Safety 11,446 10,799 10,352 10,038 9,745
Education 42,052 40,294 37,781 36,052 34,942
Public Works 5,706 5,965 4,809 5,024 4,649
Human Services 967 1,146 1,003 826 794
Culture and Recreation 2,045 1,987 1,918 1,698 1,703
Debt Service 4,868 4,792 4,993 4,986 6,140
Intergovernmental Charges 1,015 996 927 945 960
Employee Benefits 12,964 12,017 11,384 11,500 11,081
Pension Benefits 13,538 12,480 9,802 7,321 11,915
Total Expenditures 98,683 94,308 86,949 82,196 86,185
Excess (Deficiency) of Revenues
Over Expenditures 2,198 2,086 2,292 1,215 (560)
Other Financing Sources (Uses)
Premium from Issuance of Debt 38 44 11 109 2,259
Proceeds from Refunding Bonds 414 1,596 515 0 15,185
Payments of Refunded Bonds (446) (1,619) (526) 0 (21,740)
Operating Transfers - In 1,286 1,077 1,648 1,026 2,677
Operating Transfers - Out (1,544) (944) (833) (830) (1,023)
Total Other Financing Sources (252) 154 815 305 (2,641)
(Uses)
Net Change in Fund Balance 1,946 2,240 3,107 1,520 (3,201)
Fund Balance – Beginning 17,935 15,695 12,589 11,068 14,269
Fund Balance - Ending $ 19,882 $17,935 $15,695 $12,589 $11,068
____________________
(1) Excerpts from audited financial statements of the Town. Totals may not add due to rounding.
A-3Source page 68
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APPENDIX B There follows in this Appendix the audited financial statements of the Town of Canton, Massachusetts, as of June 30, 2018 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.
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APPENDIX B
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2018Source page 72
On the cover and below: The Town honored former Selectwoman Avril Elkort with a dedication of a new veranda located at the front entrance to Memorial Hall. After serving on the Finance Committee from 1979 to 1987, Avril Elkort was a Selectwoman from 1988 to 2015. Photos taken by Matt Carlton and Linda Sacramona
Source page 73
Town of Canton, Massachusetts
Comprehensive Annual Financial Report
For the Fiscal Year
July 1, 2017 through June 30, 2018
Prepared by the Finance DepartmentSource page 74
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hhtroductory Section EDWARD J. BEATTY AMERICAN LEGION POST #24 THIS HALLOW < IS DEDICATED TO THE MEN AND WOMEN OF OU sf E VED IN ALL BRANCH WHERE THEIR FI ® ® ® f- TO HONOR TE ETERA > THEIR LOVEL ‘ TO OUR MEMORY LONG TER THEY HAVE LEFT Us TOWN OF CANTON 2017 Pe —— OEE ee CE ARE NOT FORS™ Photo taken by Jennifer T rethew ey, C anton V eterans D eparim ent A monument to honor the Edward J. Beatty American Legion Post #24 was dedicated at Canton Corner Cemetery. The monument serves as a remembrance of the sacrifices made by Canton residents in defense of the United States and a sign of gratitude to all veterans. [Original embedded text, retained for comparison] Introductory Section Photo taken by Jennifer Trethewey, Canton Veterans Department A monument to honor the Edward J. Beatty American Legion Post #24 was dedicated at Canton Corner Cemetery. The monument serves as a remembrance of the sacrifices made by Canton residents in defense of the United States and a sign of gratitude to all veterans.
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TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page(s)
INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................ B1-10
Certificate of Achievement For Excellence in Financial Reporting.................................................. B-11
Organizational Chart Town ............................................................................................................... B-12
Organizational Chart Schools ............................................................................................................ B-13
Principal Town Officials ................................................................................................................... B-14
FINANCIAL SECTION
Independent Auditor’s Report ....................................................................................................... B17-19
Management’s Discussion and Analysis ....................................................................................... B 21-31
Basic Financial Statements:
Statement of Net Position ............................................................................................................ B-34
Statement of Activities ................................................................................................................. B-35
Balance Sheet – Governmental Funds ........................................................................................B-36
Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances to
the Statement of Net Position ............................................................................................. B-37
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds ................................................................................................................... B-38
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ..................................... B-39
Statement of Net Position – Proprietary Funds...........................................................................B-40
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds............... B-41
Statement of Cash Flows – Proprietary Funds ............................................................................ B-42
Statement of Fiduciary Net Position ............................................................................................ B-43
Statement of Changes in Fiduciary Net Position ........................................................................B-44
Notes to Basic Financial Statements ....................................................................................... B45-78
Required Supplementary Information:
Schedule of the Town’s Proportionate Share of the Net Pension Liability ................................ B-80
Schedule of the Town’s Contribution to Pension Plan ............................................................... B-80
Schedule of the Commonwealth’s Collective Share of Net Pension Liability –
Massachusetts Teachers’ Retirement System....................................................................... B-81
Schedule of Changes in Net OPEB Liability and Related Ratios………………………….….B-82
Schedule of Contributions to OPEB Plan………………………………………………….….B-83
Schedule of Investment returns – OPEB Plan…………………………………………….…..B-83
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and
Actual – General Fund .................................................................................................. B84-86
Notes to Required Supplementary Information ........................................................................ B-87
B-iSource page 78
TOWN OF CANTON, MASSACHUSETTS
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2018
TABLE OF CONTENTS
Page(s)
Combining Statements:
Nonmajor Governmental Funds ............................................................................................ B90-91
Combining Balance Sheet – Nonmajor Governmental Funds ........................................ B92-94
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances – Nonmajor Governmental Funds ........................................................... B96-98
Internal Service Funds ............................................................................................................B-100
Combining Statement of Net Position – Internal Service Funds ......................................B-101
Combining Statement of Revenues, Expenses and Changes in Net Position –
Internal Service Funds ...................................................................................................B-102
Combining Statement of Cash Flows – Internal Service Funds .......................................B-103
Fiduciary Funds ..................................................................................................................... .B-104
Statement of Changes in Assets and Liabilities – Agency Fund ..................................... B-105
STATISTICAL SECTION
Narrative ...................................................................................................................................... B-110
Net Position by Component – Last Ten Fiscal Years.......................................................................B-111
Changes in Net Position – Last Ten Fiscal Years ..................................................................... B112-113
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................... B-114
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................... B-115
Assessed Value and Estimated Actual Value of Taxable Property By Classification
and Tax Rates – Last Ten Fiscal Years............................................................................. B-116
Principal Taxpayers – Current Year and Nine Years Ago .............................................................. B-117
Property Tax Levies and Collections – Last Ten Fiscal Years........................................................ B-118
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................B-119
Ratios of General Bonded Debt Outstanding .................................................................................. B-120
Computation of Legal Debt Margin – Last Ten Fiscal Years ......................................................... B-121
Direct and Overlapping Governmental Activities Debt .................................................................. B-122
Demographic and Economic Statistics – Last Ten Fiscal Years ..................................................... B-123
Principal Employers (Excluding Town) – Current Year and Nine Years Ago ............................... B-124
Full-time Equivalent Town Employees by Functions – Last Ten Fiscal Years .............................. B-125
Operating Indicators by Function/Program – Last Ten Fiscal Years .............................................. B-126
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .......................................... B-127
B-iiSource page 79
Letter of Transmittal
November 21, 2018
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 thirteenth Comprehensive Annual
Financial Report (CAFR). The report is for the fiscal year ended June 30, 2018, 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 B-1 Comprehensive Annual Financial ReportSource page 80
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, 2018 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 B-2 Comprehensive Annual Financial Report