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04-2019 Latest Bond Issuance Report (PDF)

Budgets & Finance · Record year 2019 · Record 93d6909e8fd776f920

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Saved text from 213 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.

Source page 81

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.

       Many of the Town’s lakes, ponds and wetlands have been protected and preserved for present enjoyment
       and future generations. Among the protected areas are the Eleanor Cabot Bradley Reservation, an 82 acre
       estate that blends open fields, woodlands and gardens in the shadow of Great Blue Hill and Pequitside
       Farm, a town-owned 38 acre conservation and recreation area which offers playing fields, picnicking,
       hiking and cross country skiing.

       The Town offers a full range of traditional municipal services including police and fire protection,
       ambulance and rescue services, education, maintenance of streets and infrastructure, solid waste
       collection and disposal, health and human services, cultural and recreational, administrative and financial
       services. The Town is a member community of the Massachusetts Water Resources Authority (MWRA)
       for its water and sewer services.

       Canton prides itself on its quality school system. Canton students consistently perform well on national
       and state tests and over 90% of students
       graduating from the high school go on to
       higher education. The Town is the location
       of the Blue Hills Regional Technical School
       which provides expanded vocational
       education opportunities for high school
       students of Canton and eight other area
       communities. Canton is also home to one
       of the two campuses of Massasoit
       Community College. The campus is a
       multi-level facility with specialized labs and
       art studios that support the technical and
       visual arts programs of the College. The
       campus also includes the Milton Art
       Museum, Akillian Gallery and the College’s Professional Development Center.

       An elected, five-member School Committee appoints a School Superintendent who administers the public
       school system of the Town. School Committee members, like the Selectmen, are elected at-large to three-
       year staggered terms.




Town of Canton, Massachusetts                              B-3                 Comprehensive Annual Financial Report

Source page 82

Almost a decade ago, the Town reached its 10% affordable housing requirement mandated by the
       Commonwealth of Massachusetts (Commonwealth), which is an important milestone as communities
       under the 10% threshold are subject to an appeals process that can overturn local zoning board decisions.
       This has allowed the Town to maintain its commitment to developing much needed affordable housing
       units in areas of the Town that can accommodate the growth.

       The Town operates under the Selectmen, Town Administrator, and Open Town Meeting form of
       government. The five elected Selectmen make policy
       decisions, and the Town Administrator is responsible
       for carrying out the policies of the Selectmen and for
       managing the day-to-day operations of the Town.
       The policies and procedures of the Board of
       Selectmen are detailed in the administrative code that
       will continue to evolve and be created over time to
       best serve the community.

       An annual operating budget is approved by Town
       Meeting two months prior to the start of the fiscal
       year. This annual budget serves as the foundation for
       the Town’s financial planning and control. The
       budget is prepared by fund, function (e.g. general government) and department (e.g. finance) allowing the
       department heads to allocate resources within the department as they see fit. Transfers between
       departments, however, need special approval by Town Meeting unless specifically exempted by state
       statute.

                                       Factors Affecting Economic Condition

       Canton continues to take a pro-active approach encouraging well planned economic development. The
       Town fully appreciates the significance of commercial and industrial growth and development (and
       redevelopment) especially in terms of long term fiscal stability. The Town continues its focus on future
       growth, which is sustainable and “complimentary” for economic development including employment
       opportunities for our residents.

       Municipal officials continue to work closely with and receive valuable support from the State Office of
       Business Development as well as regional planning support from the Metropolitan Area Planning Council
       (MAPC). In addition business advocacy organizations, such as Canton Association of Business and
       Industry (CABI) play a vital role. The Town strives to take full advantage of the latest initiatives and
       incentives made available to it notably under Chapter 43D for expedited permit approvals and Tax
       Incremental Financing (TIF).

       The Town’s Economic Development Committee (EDC) is also a special resource. The Town regularly
       takes advantage of local talent from the community who specialize in finance, banking, development and
       real estate.

       The Town continues to update and publish an economic development recruitment guide which includes
       pertinent information sought by private company CEO’s when making siting and expansion decisions.
       Recently, the Board of Selectmen published a new business and community guide and has made that
       information available online as well.

       As previously discussed, the Town surpassed its required 10% affordable housing goal as required by
       State regulation. The Town has incorporated a continued affordable housing unit goal, within the Housing




Town of Canton, Massachusetts                             B-4                 Comprehensive Annual Financial Report

Source page 83

Action Plan, to ensure the Town keeps pace with any new market rate unit starts. Recently the
       construction by Avalon Development of additional affordable housing on Randolph Street has further
       increased the Town’s 40B compliance.

       The Town’s commitment to sound economic development is further demonstrated by creating
       partnerships with MAPC 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 to Canton.

       The Town has instituted a Google-based web search device, which identifies Canton as a business
       friendly community. The web product highlights, via a series of videos, the Town of Canton as a solid
       and desirable business and family destination. The Town’s continued status as a 43D Expedited
       Permitting Community has benefitted the Town greatly and has led to the actual designation of many new
       priority development sites. This 43D designation, which was granted to the Town in 2008, came with a
       $150,000 grant to hire a permit specialist who has completed the administrative and organizational work
       necessary to implement the issuance of permits via an integrated and automated town wide permit system
       which better serves the public and the Town in terms of real time tracking of permits.

       The Town has available a permit guidebook, which lays out the Town’s permitting requirements in an
       easy to use format. The goal is to identify key requirements and improve communications, saving
       applicants time and money. The Permit Advisory Committee has been a successful endeavor by bringing
       together key permit granting agency representatives to counsel and guide any proponent of a proposed
       commercial endeavor. Participation and results continue to be overwhelmingly positive. The Town has
       also published a Tax Incremental Financing Evaluation Policy document designed to provide a rational
       and consistent intake evaluation of TIF requests. The new approach allows the Town to quantify and
       better evaluate any request to reduce taxes for a business seeking to locate or expand. Also, the Town
       launched a Payment in Lieu of Taxes Program (PILOT) that encourages non-taxable property owners to
       voluntarily participate in the support of public services.

       The Town has completed
       construction of the
       downtown revitalization
       project commonly referred
       to as the Streetscape
       Improvement Project. This
       work was funded as a result
       of a $2.6 million dollar
       Commonwealth grant
       received due to the Town’s
       Smart Growth efforts and
       rezoning of the Downtown.

       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 Board of Selectmen has also empanelled a multi-disciplined
       group of volunteers who have completed a visioning process which has led to a variety of re-zoning




Town of Canton, Massachusetts                            B-5                Comprehensive Annual Financial Report

Source page 84

recommendations with a goal of improving the business climate and enhance zoning flexibility to spur
       additional economic development potential along this vital commercial roadway.

       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.

       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 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 recently opened its 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                             B-6                Comprehensive Annual Financial Report

Source page 85

There has been increased activity on the development side in the last twelve months. 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.

                                                       The world-class campus 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.



       In addition, the following private developments were completed during fiscal year 2018 or nearing
       completion:

                               Development projects recently completed or near completion
                          Name                  Description             Completion        Amount
                   Reiser Corporation Food equipment manufacturer Fall 2017          $      5,134,000
                   Grimes Crossing     Residential development         Winter 2017          2,726,000
                   Royall Development Hotel/restaurant                 Fall 2019           19,200,000
                   Plymouth Rubber     Residential development         On-going             5,400,000

                                                                                       $    32,460,000

       In 2012 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 have resulted
               in $7.1 million of net metering credits which exceeded the $6.2 million paid for generating this
               solar power.

           •   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 reserves as follows:

                 Fiscal Year 2013 - $303,519
                 Fiscal Year 2014 - $413,585
                 Fiscal Year 2015 - $498,069
                 Fiscal Year 2016 - $556,205
                 Fiscal Year 2017 - $461,428
                 Fiscal Year 2018 - $507,845




Town of Canton, Massachusetts                              B-7                 Comprehensive Annual Financial Report

Source page 86

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 without an appropriation
       from free cash. The Town attempts to mitigate this impact by conservatively forecasting revenues thus
       creating free cash in the subsequent year.

       Several years ago, the Town’s management made the difficult choice to cut services and raise fees in
       order to balance the budget. With more cuts looming in future years, the Town’s voters approved a $4.5
       million Proposition 2 ½ tax override for fiscal year 2009 that allowed for the restoration of most of the
       budget cuts from the prior years. The tax override was planned to be phased in over a three year period
       with an annual cost to the average residential homeowner of $450.

       In addition, effective fiscal year 2013, the Town negotiated changes to its health insurance plans that
       required higher out of pocket costs from its employees and retirees but stabilized rates. These initiatives
       have allowed the Town to maintain a consistent level of reserves from year to year and continue to make
       contributions to its OPEB Trust Fund.

       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 recession in
       2011. This has been a direct
       result of the initiatives
       implemented by management
       as discussed in the previous
       paragraph.

       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.

       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.




Town of Canton, Massachusetts                               B-8                 Comprehensive Annual Financial Report

Source page 87

The following represents the Town’s summarized budgets for each of the next five years:

                                                  2019              2020                2021               2022               2023
    Revenues and Other Sources
    Real Estate and Personal Property Taxes   $    76,404,693   $    78,991,929   $     81,678,565   $     84,421,375   $     87,104,368
    State Aid                                       9,151,607         9,151,607          9,151,607          8,729,575          8,729,575
    Local Receipts                                  6,944,311         6,778,804          6,785,025          6,791,400          6,797,935
    Transfers and Other Sources                     2,626,374         2,579,728          2,608,438          2,583,175          2,616,629
        Total Revenues                            95,126,985        97,502,068        100,223,635        102,525,525        105,248,507

    Expenditures and Other Uses
    Education Budget                               42,396,405        43,658,964         45,179,915         46,837,132         48,614,414
    Municipal Budget                               20,876,402        21,465,259         22,213,045         23,027,829         23,901,643
    Fixed Costs                                    28,860,936        29,689,768         30,112,895         29,812,340         29,753,022
    State and County Charges                        1,182,721         1,188,077          1,217,780          1,248,224          1,279,428
    Capital costs                                   2,654,000         1,500,000          1,500,000          1,600,000          1,700,000
       Total Expenditures                         95,970,464        97,502,068        100,223,635        102,525,525        105,248,507

                  Surplus/(Deficit)           $     (843,479)   $          -      $            -     $            -     $            -



       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.

       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.

       Recently the Town 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.

       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 five-year period from fiscal year 2019 through fiscal year 2023
       has an estimated cost of $26.2 million, with $9.3 million to be funded from estimated revenues with the
       remainder to be funded from the issuance of bonds. The CPC’s capital plan has allocated $6.9 million
       for municipal departments, $7.1 million for the school department, $8.4 million for the water enterprise
       fund, and $3.8 million for the sewer enterprise fund.




Town of Canton, Massachusetts                                        B-9                       Comprehensive Annual Financial Report

Source page 88

The Town’s target set aside to finance its capital plan is 5% to 6% 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 comprehensive annual 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 comprehensive annual financial report for the fiscal year ended June 30,
       2017. This was the twelfth 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
       comprehensive annual 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 CAFR 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 go 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 J. Aspinwall
       Town Administrator




       James R. Murgia
       Finance Director




Town of Canton, Massachusetts                              B-10                 Comprehensive Annual Financial Report

Source page 89

Government Finance Officers Association


                                       Certificate of
                                        Achievement
                                       for Excellence
                                        in Financial
                                         Reporting
                                              Presented to

                                        Town of Canton
                       Text38:
                                         Massachusetts
                                      For its Comprehensive Annual
                                              Financial Report
                                        for the Fiscal Year Ended


                                            June 30, 2017



                                          Executive Director/CEO




Town of Canton, Massachusetts                      B-11            Comprehensive Annual Financial Report

Source page 90

TOWN OF CANTON, MASSACHUSETTS
ORGANIZATIONAL CHART

Z            Town
Board         Planning         Cletks            Board
of Health            Board             Office           of Selectmen

Board of Library
Trustees

Board of Selectmen
Appointed Multiple

Member Bodies

Moderator

Personnel
Adv. Board

Building
[Renovations

Committee

Building &
Zoning
Department
Building
Commissioner

Canton             Director
Representative || Public Health

Veteran's
Office

Veteran's

Director

Building

id                  ;               Fire            Dept. of
Maintenance       D —     ;                                         ee
Department        epartment | [Department | | Public Works

Town                Town                   Town
Planner              Clerk            Administrator

Town Planner

Sealer of Weights
and Measures

Human
Resource
Department

Executive

Assistant

Administrative
Secretary

Secretary

Resource

Department         Council
of Finance               i
on Aging

Register of Voters
Comm. on Disability
-Zoning Board.of Appeals
-Water/Sewer Rate Policy
Commission
-Youth Commission
-Historical Commission
-Fair Housing Committee
Cable Advisory Committee
Beautification Committee
-Conservation Commission
Council on Aging
-Industrial Develop.
Financing Authority
-Local Emergency Planning
Committee
-Traffic Study Committee
-Industrial Development
Commission

Recreation            Conservation
Commission           Commission

Conservation
Commission

 ae    =
:             ;             of                            :                             :
Chief            Chief        Public Works | | Administrator       Director          Director          Director                Agent

Town of Canton, Massachusetts

Comprehensive Annual Financial Report

[Original embedded text, retained for comparison]
Town of Canton, Massachusetts   B-12   Comprehensive Annual Financial Report

Source page 91

CANTON PUBLIC SCHOOLS



                                                               CANTON SCHOOL COMMITTEE
                                                                                                        ADMINISTRATIVE ASSISTANT TO THE
                                                                                                       SUPERINTENDENT/SCHOOL COMMITTEE
                                                              SUPERINTENDENT OF SCHOOLS




                                 DIRECTOR .OF CURRICULUM                                                                                                SCHOOL BUSINESS
                                                                     BUILDING PRINCIPALS                           DIRECTOR OF
                                      and INSTRUCTION                                                                                                    ADMINISTRATOR
                                                                                                                 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                                                  B-13                                     Comprehensive Annual Financial Report

Source page 92

PRINCIPAL TOWN OFFICIALS



       Elected Officials

              Board of Selectmen                     Mark J. Porter, Chairman
                                                     Christopher J. Connolly, Vice Chairman
                                                     Thomas W. Theodore, Clerk
                                                     John J. Connolly, Member
                                                     Vacancy, Member

              School Committee                       Kristin Mirliani, Chairperson
                                                     Michael Loughran, Vice Chairperson
                                                     Meg Gannon, Secretary
                                                     Nichola Gallagher, Member
                                                     Reuki Schutt, Member

       Principal Executive Officers

              Town Administrator                     Charles J. Aspinwall
              Finance Director                       James R. Murgia
              Town Accountant                        Kathy Dooley Butters
              Superintendent of Schools              Jennifer Fischer-Mueller
              School Business Administrator          Barry Nectow
              Police Chief                           Kenneth N. Berkowitz
              Fire Chief                             Charles E. Doody
              DPW Superintendent                     Michael T. Trotta




Town of Canton, Massachusetts                 B-14             Comprehensive Annual Financial Report

Source page 93

Financial Section




   Architectural rendering courtesy of Group One Partners




   A new hotel is being constructed on Royall Street which will provide the Town increased revenues from
   property taxes along with hotel and meals taxes.




Town of Canton, Massachusetts                               B-15      Comprehensive Annual Financial Report

Source page 94

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Town of Canton, Massachusetts                 B-16                    Comprehensive Annual Financial Report

Source page 95

INDEPENDENT AUDITOR’S REPORT

       Honorable Board of Selectmen
       Town of Canton, Massachusetts


       Report on the Financial Statements

       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, 2018, and the related notes to the
       financial statements, which collectively comprise the Town’s basic financial statements as listed in the
       table of contents.

       Management’s Responsibility for the Financial Statements

       Management is responsible for the preparation and fair presentation of these financial statements in
       accordance with accounting principles generally accepted in the United States of America; this includes
       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.

       Auditor’s Responsibility

       Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to
       obtain reasonable assurance about whether the financial statements are free of material misstatement.

       An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in
       the financial statements. The procedures selected depend on the auditor’s judgment, including the
       assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
       In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
       and fair presentation of the financial statements 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 entity’s
       internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
       appropriateness of accounting policies used and the reasonableness of significant accounting estimates
       made by management, as well as evaluating the overall presentation of the financial statements.

       We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
       our audit opinions.




Town of Canton, Massachusetts                              B-17                 Comprehensive Annual Financial Report

Source page 96

Town of Canton
       Page Two

       Opinions

       In our opinion, the financial statements referred to above present fairly, in all material respects, the
       respective financial position of the governmental activities, the business-type activities, each major fund
       and the aggregate remaining fund information of the Town, as of June 30, 2018, and the respective
       changes in financial position and, where applicable, cash flows thereof for the year then ended in
       accordance with accounting principles generally accepted in the United States of America.

       Restatement of Prior Year Ending Balances

       As more fully described in Note IV, a restatement of prior year ending net position balances was made
       to the Town’s governmental activities, business-type activities and each Enterprise Fund. Our opinion
       was not modified with respect to this matter.

       Other Matters

       Required Supplementary Information

       Accounting principles generally accepted in the United States of America require that the management’s
       discussion and analysis, 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, 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.

       Other 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 introductory section, combining and individual
       nonmajor fund financial statements, and statistical section are presented for purposes of additional
       analysis and are not a required part of the basic financial statements. The combining and individual
       nonmajor fund financial statements are the responsibility of management and were derived from and
       relate directly to the underlying accounting and other records used to prepare the basic financial
       statements. Such 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. The introductory and statistical sections have not
       been subjected to the auditing procedures applied in the audit of the basic financial statements and,
       accordingly, we do not express an opinion or provide any assurance on them.


Town of Canton, Massachusetts                              B-18                 Comprehensive Annual Financial Report

Source page 97

Town of Canton
       Page Three

       Other Reporting Required By Government Auditing Standards

       In accordance with Government Auditing Standards, we have also issued a report dated November 21,
       2018, on our consideration of the Town of Canton, Massachusetts’ internal control over financial
       reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, 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 the internal control over financial reporting or on compliance. That report is an integral part
       of an audit performed in accordance with Government Auditing Standards and should be considered in
       assessing the results of our audit.




       Roselli, Clark and Associates
       Certified Public Accountants
       Woburn, Massachusetts 01801
       November 21, 2018




Town of Canton, Massachusetts                             B-19                 Comprehensive Annual Financial Report

Source page 98

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Town of Canton, Massachusetts                 B-20                    Comprehensive Annual Financial Report

Source page 99

Management’s Discussion and Analysis




Town of Canton, Massachusetts        B-21     Comprehensive Annual Financial Report

Source page 100

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, 2018.


       Financial Highlights

          During the year ended June 30, 2018 The Town adopted GASB Statement No. 75, Accounting and
           Financial Reporting for Postemployment Benefits Other Than Pensions. Previously, OPEB was
           accounted for under GASB Statement No. 45, Accounting and Financial Reporting by Employers for
           Postemployment Benefits Other Than Pensions. The result of the adoption of GASB Statement No.
           75 was to record a prior period restatement to eliminate the net OPEB obligation recorded in the prior
           year Town financial statements and record the net OPEB liability as of end of the prior year.

           All changes in net position discussions that follow have removed the impact of these adjustments
           from their analysis. The adjustments can be reviewed in more detail in Note IV to the financial
           statements.

          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 $34.1 million (total net position).

          The government’s total net position increased by over $4.1 million. This consisted primarily of an
           increase in governmental activities’ net position by almost $2.6 million and an increase in Business -
           type activities’ net position of over $1.5 million.

          The Town’s Unassigned Fund Balance reported in the General Fund was over $17.2 million (17.5%
           of General Fund expenditures). Total Fund Balance in the General Fund was almost $19.9 million
           (20.2% of General Fund expenditures). The Town reported total fund balances of over $13.4 million
           in the Combined Nonmajor Governmental Funds. Almost $12.9 million in Restricted Fund Balances,
           combined with over $0.5 million in Nonspendable Fund Balances made up this amount.

          The Town’s total debt decreased by almost $5.0 million during the fiscal year. Detail of this net
           decrease 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, 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                              B-22                 Comprehensive Annual Financial Report

Source page 101

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                              B-23                 Comprehensive Annual Financial Report

Source page 102

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                             B-24                 Comprehensive Annual Financial Report

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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 $34.1 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,      June 30,        June 30,           June 30,
                                               2018          2017              2018          2017            2018               2017

                        Assets
       Currrent and other assets           $ 51,592,851    $ 48,529,907    $ 13,322,720   $ 13,275,605   $ 64,915,571     $ 61,805,512
       Capital assets, net                  106,723,246     106,848,112      45,556,757     46,628,168    152,280,003      153,476,280
          Total assets                      158,316,097     155,378,019      58,879,477     59,903,773    217,195,574      215,281,792

       Deferred outflows of resources        12,068,807       4,210,154         591,772        284,992     12,660,579           4,495,146

                         Liabilities
       Long-term liabilities                146,883,727     111,846,584      27,974,324     29,269,298    174,858,051         141,115,882
       Other liabilities                     11,682,048      12,899,411       3,055,097      3,059,084     14,737,145          15,958,495
          Total liabilities                 158,565,775     124,745,995      31,029,421     32,328,382    189,595,196         157,074,377

       Deferred inflows of resources          5,800,278       2,502,961         391,682        169,430      6,191,960           2,672,391

                    Net Position
       Net investment in capital assets      81,317,923      78,738,423      20,603,290     18,785,822    101,921,213       97,524,245
       Restricted                            10,880,921      10,642,548               -              -     10,880,921       10,642,548
       Unrestricted                         (86,179,993)    (57,041,754)      7,446,856      8,905,131    (78,733,137)     (48,136,623)
          Total Net Position               $ 6,018,851     $ 32,339,217    $ 28,050,146   $ 27,690,953   $ 34,068,997     $ 60,030,170


       By far, the largest portion (over $101.9 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




Town of Canton, Massachusetts                               B-25                    Comprehensive Annual Financial Report

Source page 104

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.

       An additional portion (almost $10.9 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 $78.7 million due to the recognition of net pension liabilities of approximately $41.4 million and
       net other postemployment benefits liability of approximately $87.5 million.

       Condensed changes in net position data is presented as follows:


                                                     Governmental Activities           Business-Type Activities                    Total
                                                     June 30,      June 30,             June 30,      June 30,          June 30,           June 30,
                                                       2018          2017                 2018          2017              2018               2017
                      Revenues
       Program revenues:
         Charges for services                    $     7,521,265    $     6,500,012   $ 14,330,135    $ 13,489,826    $ 21,851,400     $ 19,989,838
         Operating grants and contributions           19,405,225         18,253,254              -          80,960      19,405,225       18,334,214
         Capital grants and contributions              2,293,126            922,822          5,625               -       2,298,751          922,822

       General revenues:
        Property taxes and tax liens                  74,151,256         72,087,049              -               -      74,151,256          72,087,049
        Unrestricted grants and contributions          2,180,123          2,099,870              -               -       2,180,123           2,099,870
        Other                                          6,735,302          6,300,054         98,038          50,296       6,833,340           6,350,350
          Total Revenues                             112,286,297        106,163,061     14,433,798      13,621,082     126,720,095         119,784,143

                      Expenses
       General government                              5,578,489          5,965,196              -               -       5,578,489           5,965,196
       Public safety                                  19,250,042         17,532,705              -               -      19,250,042          17,532,705
       Education                                      70,396,176         68,325,037              -               -      70,396,176          68,325,037
       Public works                                    7,911,117          7,658,668              -               -       7,911,117           7,658,668
       Health and human services                       1,635,120          1,684,833              -               -       1,635,120           1,684,833
       Culture and recreation                          3,768,025          3,683,115              -               -       3,768,025           3,683,115
       Debt service                                      659,834            636,035              -               -         659,834             636,035
       Water                                                   -                  -      7,105,456       6,141,278       7,105,456           6,141,278
       Sewer                                                   -                  -      6,275,549       6,191,663       6,275,549           6,191,663
       Rink                                                    -                  -         13,498          61,792          13,498              61,792
           Total Expenses                            109,198,803        105,485,589     13,394,503      12,394,733     122,593,306         117,880,322

       Change in net position before transfers         3,087,494           677,472       1,039,295       1,226,349       4,126,789           1,903,821

       Transfers                                        (500,000)           34,042         500,000         (34,042)                -                  -

       Change in net position                          2,587,494           711,514       1,539,295       1,192,307       4,126,789           1,903,821

       Net position, beginning of year                32,339,217        31,627,703      27,690,953      26,498,646      60,030,170          58,126,349

       Restatement for net OPEB liability            (28,907,860)                 -     (1,180,102)               -    (30,087,962)                   -

       Net position, beginning of year,
         as restated                                   3,431,357         31,627,703     26,510,851      26,498,646      29,942,208          58,126,349

       Net position, end of year                 $     6,018,851    $ 32,339,217      $ 28,050,146    $ 27,690,953    $ 34,068,997     $ 60,030,170




Town of Canton, Massachusetts                                                B-26                     Comprehensive Annual Financial Report

Source page 105

Governmental Activities – The governmental activities increased net position by almost $2.6 million as
       all revenue categories increased over the prior year directly contributing to over a $6.1 million increase in
       revenues which more than offset the $3.7 million increase in expenses.


       Fiscal Year 2018 Expenses and Program Revenues – governmental activities are graphically presented as
       follows:




       Major revenue sources of governmental activities consist of revenue from; (1) Operating grants and
       contributions which comprised approximately 17.3% of the total governmental activity revenues and
       represented an increase of almost $1.1 million over the prior year. This was mostly a result of an increase
       of almost $0.8 million due to nonemployee special funding payments from the Commonwealth reported
       in a manner required under GASB 68; (2) Property taxes which represented 66.0% of total revenues and
       represented an increase over the prior year by $2.1 million this was comprised of the legally allowed
       amount under proposition 2
       1/2% after factoring in the
       increase in assessment and new
       growth and a reduction in the
       allowance for abatements due to
       cases settled favorably in favor
       of the Town; and (3) Capital
       Grants and other capital
       contributions which although
       were not a significant portion of
       total revenue, about 2.0%, were
       still greater than the prior year
       by almost $1.4 million due to a
       large insurance recovery and a
       Public Works grant for dam renovation. No other revenue sources exceeded 10% of total revenues in
       either fiscal 2018 or 2017.




Town of Canton, Massachusetts                              B-27                 Comprehensive Annual Financial Report

Source page 106

Major operating expenses in total increased by approximately $3.7 million. This was primarily due to an
       increase in employee benefit related costs. Direct benefits consisting primarily of other postemployment
       benefit costs, health insurance and pension costs were over $1.4 million greater than the prior year. An
       additional $0.8 million was due to
       the expense side of the special
       funding situation described above
       under revenue. These costs were
       spread across all functions that
       included payroll with the most
       modest increases in public safety and
       education which are the Town’s two
       most labor-intensive functions. The
       remaining increases of $1.5 million
       were due to additional costs spread
       in minor amounts across all
       functions with the largest increases
       associated with depreciation.

       Business-type Activities – Net position of the business-type activities increased almost $1.5 million over
       the prior year. This was primarily due to a water rate increase of 4% and a sewer rate increase of 6%.




Town of Canton, Massachusetts                             B-28                Comprehensive Annual Financial Report

Source page 107

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’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 $34.8 million, an increase of approximately $3.3 million over
       the prior year. Over $1.9 million of this increase was primarily the result of revenues exceeding
       expenditures in the general fund due to higher than expected motor vehicle excise, building permit and
       other local revenues. This positive situation was a direct result of the continued economic expansion; this
       was positively compounded by an increase of the timing of revenues which exceeded expenditures in the
       special revenue funds of $1.2 million. Since these funds are typically revenue in and expenditure out, it
       was mostly a timing situation that caused this increase.

       Unassigned fund balance in the general fund was approximately $17.2 million or 17.5% of general fund
       expenditures. This is available for spending at the government’s discretion. Assigned fund balance, as a
       result of encumbrances and amounts budgeted for next fiscal year of almost $1.6 million and committed
       fund balance for carryover articles over $1.0 million bring total fund balance in the general fund to almost
       $19.9 million or 20.2% of general fund expenditures.

       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
       approximately $0.5 million; (2) restricted due to constraints placed externally by third-parties over $14.5
       million; (3) amounts restricted for capital projects over $1.6 million, or (4) unassigned as they reflect
       negative balances due to capital deficits of over $0.1 million. These are expected to be funded in future
       years from government grants.

       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 over $6.3 million. This was an increase of over $1.2
       million as revenues exceed claims. About $0.5 million of these revenues were stop loss reimbursements
       received from insured claims.


       General Fund Budgetary Highlights

       Differences between the original budget and the final amended budget included revisions to the following
       line items:

       ▪   Approximately $0.4 million in increases allocated to public safety.

       ▪   Approximately $0.5 million in decreases allocated to general government.




Town of Canton, Massachusetts                             B-29                   Comprehensive Annual Financial Report

Source page 108

▪   Approximately $0.2 million in increases allocated to public works.

       ▪   Approximately $0.1 million in increases to benefits.

       ▪   Approximately $0.1 million in increases to education

       All of the amendments were between operating line items in the original budget and were for operating
       purposes. The overall bottom line final budget increased $0.3 million from the original budget.

       Major budget to actual differences on the revenue side included property tax and excise, which exceeded
       budget by approximately $1.2 million, licenses and permits which exceeded budget by $0.4 million and
       departmental revenues which exceeded budget by $0.4 million.

       On the expenditure side, numerous net minor favorable variances which in total approximated $0.7
       million existed.

       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, 2018 amounts to approximately $152.3 million (net of accumulated depreciation)
       a decrease from the previous year’s balance of approximately $1.2 million as the annual depreciation
       provision exceeded additions.

       Major capital asset additions included, roadway improvements and water infrastructure.

       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
       $230.8 million, which is significantly in excess of the Town’s outstanding general obligation debt
       classified as inside the debt limit.

       At the end of the current fiscal year, the Town had total debt outstanding of almost $49.5 million. The
       entire amount comprises debt backed by the full faith and credit of the government.

       The Town’s total debt decreased by almost $5.0 million during the fiscal year detailed as follows:




Town of Canton, Massachusetts                             B-30                  Comprehensive Annual Financial Report

Source page 109

The Town’s most recent credit evaluation resulted in the Town maintaining its “AAA” rating from
       Standard and Poor‘s Investment Services for general obligation debt. This is the highest investment grade
       given by this agency.

       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

       ▪   Consistent with both State and National work force trends, the Town’s unemployment rates improved
           dramatically and are now exceeding historical unemployment rate data dating back almost 40 years.

       ▪   The Town’s property tax base is made up predominantly of residential real estate taxes, which
           comprise nearly 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 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.

       ▪   Consistent with both State and National indices, the Town’s housing market experienced a downward
           trend from 2005 – 2010. Housing prices began to stabilize during fiscal year 2011 and in recent years
           are in an upward trend. During 2018, houses in the Town continued selling at greater than their
           assessed values, as a result, the Town expects its housing market to continue to maintain or slightly
           outpace National indices. In addition, The Town has residential developments in various stages of
           completion. These are expected to be completed in the near future.

       ▪   The Town has responded well to the recent economic challenges. Reductions in local revenue,
           primarily interest income and other reductions in revenue have caused the Town to aggressively seek
           other revenue producing initiatives in order to maintain appropriations in ways that preserved local
           service levels. The Town has been very successful in that regard.

       All of the above items were considered when the Town developed its budget for fiscal year 2019. The
       budget was adopted in May 2018 and the Town’s tax rate will be certified in December 2018.

       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.




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Source page 110

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Town of Canton, Massachusetts                 B-32                    Comprehensive Annual Financial Report

Source page 111

Basic Financial Statements




Town of Canton, Massachusetts              B-33      Comprehensive Annual Financial Report

Source page 112

TOWN OF CANTON, MASSACHUSETTS

                                                               STATEMENT OF NET POSITION
                                                                     JUNE 30, 2018




                                                                                               Primary Government

                                                                              Governmental          Business-Type
                                                                               Activities             Activities          Total

                                           Assets
                Cash and cash equivalents                                 $      32,953,370     $        9,532,919   $    42,486,289
                Investments                                                      12,864,099                      -        12,864,099
                Receivables, net:
                  Property taxes                                                    353,772                      -           353,772
                  Tax liens and foreclosures                                      1,315,092                 51,377         1,366,469
                  User fees                                                               -              3,738,424         3,738,424
                  Departmental and other                                          1,097,650                      -         1,097,650
                  Intergovernmental                                               2,889,730                      -         2,889,730
                Prepaid items                                                        57,338                      -            57,338
                Deposit held by third party                                          61,800                      -            61,800
                Capital assets not being depreciated                             11,263,835                710,787        11,974,622
                Capital assets, net of accumulated depreciation                  95,459,411             44,845,970       140,305,381

                   Total Assets                                                 158,316,097             58,879,477       217,195,574

                            Deferred Outflows of Resources
                Related to net pension liability                                  8,261,963               559,266          8,821,229
                Related to net other postemployment benefits liability            3,806,844                32,506          3,839,350

                    Total Deferred Outflows of Resources                         12,068,807               591,772         12,660,579


                                        Liabilities Warrants
                and accounts payable                                              1,661,186               112,353          1,773,539
                Accrued payroll and withholdings                                  3,850,627                19,764          3,870,391
                Tax refunds payable                                                 470,796                     -            470,796
                Health claims incurred but not reported                             878,641                     -            878,641
                Accrued interest                                                    218,469               189,111            407,580
                Other liabilities                                                    44,589                 8,597             53,186
                Noncurrent liabilities:
                   Due within one year                                            4,557,740              2,725,272         7,283,012
                   Due in more than one year                                    146,883,727             27,974,324       174,858,051

                   Total Liabilities                                            158,565,775             31,029,421       189,595,196

                            Deferred Inflows of Resources
               Related to net pension liability                                   5,769,639               390,557          6,160,196
               Related to net other postemployment benefits liability                30,639                 1,125             31,764

                         Total Deferred Inflows of Resources                      5,800,278               391,682          6,191,960

                                      Net Position
                Net investment in capital assets                                 81,317,923             20,603,290       101,921,213
                Restricted for:
                  Nonexpendable permanent funds                                     526,561                      -           526,561
                  Expendable permanent funds                                        743,771                      -           743,771
                  Debt service                                                    1,341,647                      -         1,341,647
                  Federal and State grants                                        1,424,390                      -         1,424,390
                  Community preservation                                          2,420,189                      -         2,420,189
                  Gift funds                                                      2,347,412                      -         2,347,412
                  Other specific purposes                                         2,076,951                      -         2,076,951
                Unrestricted                                                    (86,179,993)             7,446,856       (78,733,137)

                   Total Net Position                                     $       6,018,851     $       28,050,146   $    34,068,997

                See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                            B-34                          Comprehensive Annual Financial Report

Source page 113

TOWN OF CANTON, MASSACHUSETTS

                                                                                             STATEMENT OF ACTIVITIES
                                                                                          FISCAL YEAR ENDED JUNE 30, 2018


                                                                                                             Program Revenues                              Net (Expenses) Revenues and Changes in Net Position

                                                                                                                Operating              Capital
                                                                                             Charges for        Grants and            Grants and          Governmental          Business-Type
                                Functions/Programs                         Expenses           Services         Contributions         Contributions         Activities             Activities            Total

               Primary government:
                 Governmental activities:
                  General government                                   $     5,578,489   $        629,653     $      191,369        $            -    $       (4,757,467)                           $    (4,757,467)
                  Public safety                                             19,250,042          3,575,574            194,967               240,497           (15,239,004)                               (15,239,004)
                  Education                                                 70,396,176          2,463,638         18,505,916               600,762           (48,825,860)                               (48,825,860)
                  Public works                                               7,911,117            308,449             22,000               857,196            (6,723,472)                                (6,723,472)
                  Health and human services                                  1,635,120            107,678            396,063                     -            (1,131,379)                                (1,131,379)
                  Culture and recreation                                     3,768,025            436,273             37,074               594,671            (2,700,007)                                (2,700,007)
                  Interest expense                                             659,834                  -             57,836                     -              (601,998)                                  (601,998)

                     Total governmental activities                         109,198,803          7,521,265         19,405,225              2,293,126         (79,979,187)                                (79,979,187)

                Business-type activities:
                 Water                                                       7,105,456          7,186,664                      -                 -                          $          81,208               81,208
                 Sewer                                                       6,275,549          7,143,471                      -                 -                                    867,922              867,922
                 Rink                                                           13,498                  -                      -             5,625                                     (7,873)              (7,873)

                     Total business-type activities                         13,394,503         14,330,135                      -             5,625                                    941,257              941,257

               Total Primary Government                                $ 122,593,306     $     21,851,400     $   19,405,225        $     2,298,751          (79,979,187)             941,257           (79,037,930)

                                                                                         General Revenues:
                                                                                           Property taxes                                                    74,151,256                         -       74,151,256
                                                                                           Tax liens                                                            301,286                         -          301,286
                                                                                           Motor vehicle and other excise                                     4,707,385                         -        4,707,385
                                                                                           Hotel and meals taxes                                                603,821                         -          603,821
                                                                                           Payments in lieu of taxes                                            236,816                         -          236,816
                                                                                           Grants and contributions not restricted
                                                                                             to specific programs                                             2,180,123                     -            2,180,123
                                                                                           Penalties and interest on taxes                                      364,795                     -              364,795
                                                                                           Unrestricted investment income                                       521,199                98,038              619,237

                                                                                         Transfers (net)                                                       (500,000)              500,000                     -

                                                                                             Total general revenues and transfers                            82,566,681               598,038           83,164,719

                                                                                                 Change in Net Position                                       2,587,494              1,539,295           4,126,789

                                                                                         Net Position:
                                                                                           Beginning of year, as restated (see Note IV)                       3,431,357             26,510,851          29,942,208

                                                                                             End of year                                              $       6,018,851     $       28,050,146      $   34,068,997

               See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                                                               B-35                                                            Comprehensive Annual Financial Report

Source page 114

TOWN OF CANTON, MASSACHUSETTS

                                                                   BALANCE SHEET
                                                                GOVERNMENTAL FUNDS
                                                                     JUNE 30, 2018


                                                                                                            Nonmajor           Total
                                                                          General           Capital        Governmental     Governmental
                                                                           Fund             Projects          Funds            Funds
                                   Assets
        Cash and cash equivalents                                     $ 17,212,144      $    1,499,239     $ 11,424,733     $ 30,136,116
        Investments                                                      7,150,877                   -        1,519,301        8,670,178
        Receivables, net of allowance for uncollectibles:
          Property taxes                                                     350,494                   -            3,278          353,772
          Tax liens and foreclosures                                       1,311,710                   -            3,382        1,315,092
          Motor vehicle excise                                               379,470                   -                -          379,470
          Intergovernmental                                                1,341,647                   -        1,548,083        2,889,730
          Departmental and other                                                   -                   -          490,286          490,286
        Prepaid items                                                         15,376                   -                -           15,376
        Due from other funds                                                 854,784                   -                -          854,784

        Total Assets                                                      28,616,502         1,499,239         14,989,063       45,104,804

        Deferred Outflows of Resources                                              -                  -                -                -

        Total Assets and Deferred Outflows of Resources               $ 28,616,502      $    1,499,239     $ 14,989,063     $ 45,104,804



                               Liabilities
         Warrants and accounts payable                                $    1,334,850    $              -   $     178,902    $    1,513,752
         Accrued payroll and withholdings                                  3,709,311                   -         141,316         3,850,627
         Tax refunds payable                                                 470,796                   -               -           470,796
         Other liabilities                                                    39,489                   -           5,100            44,589
         Due to other funds                                                        -                   -         854,784           854,784

        Total Liabilities                                                  5,554,446                   -        1,180,102        6,734,548

                    Deferred Inflows of Resources
         Unavailable revenues - property taxes                             1,459,388                   -           6,660         1,466,048
         Unavailable revenues - excise taxes                                 379,470                   -               -           379,470
         Unavailable revenues - intergovernmental                          1,341,647                   -               -         1,341,647
         Unavailable revenues - other                                              -                   -         398,056           398,056

        Total Deferred Inflows of Resources                                3,180,505                   -         404,716         3,585,221

                              Fund Balances
         Nonspendable                                                         15,376                 -            511,185          526,561
         Restricted                                                           15,918         1,616,995         12,893,060       14,525,973
         Committed                                                         1,026,447                 -                  -        1,026,447
         Assigned                                                          1,599,273                 -                  -        1,599,273
         Unassigned                                                       17,224,537          (117,756)                 -       17,106,781

        Total Fund Balances                                               19,881,551         1,499,239         13,404,245       34,785,035

        Total Liabilities, Deferred Inflows of Resources,
         and Fund Balances                                            $ 28,616,502      $    1,499,239     $ 14,989,063     $ 45,104,804

        See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                             B-36                     Comprehensive Annual Financial Report

Source page 115

TOWN OF CANTON, MASSACHUSETTS

                                RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
                                  TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
                                                       JUNE 30, 2018


       Total Governmental Fund Balances                                                                                          $ 34,785,035


          Capital assets used in governmental activities are not financial resources and therefore are
           not reported in the funds.                                                                                                106,723,246

          Other long-term assets are unavailable to pay current-period expenditures                                                    3,585,221

          Deferred outflows and inflows of resources to be recognized in future fiscal years
           are not available resources and, therefore, are not reported in the funds:
                Deferred outflows related to pensions                                                               8,261,963
                Deferred outflows related to other postemployment benefits                                          3,806,844
                Deferred inflows related to pensions                                                               (5,769,639)
                Deferred inflows related to other postemployment benefits                                             (30,639)

                     Net effect of reporting deferred outflows and inflows of resources                                                6,268,529

          Assets, deferred outflows of resources and liabilities and deferred inflows of resources of the
           Town's internal service funds are included in the Statement of Net Position, but are not
           reported in the governmental funds.                                                                                         6,316,756

          In the Statement of Activities, interest is accrued on outstanding long-term debt
            whereas in the governmental funds interest is not reported until due.                                                       (218,469)

          Long-term liabilities are not due and payable in the current period and therefore are not
           reported in the government funds:
                Bonds and notes payable                                                                           (25,114,243)
                Unamortized premiums on bonds                                                                      (1,046,816)
                Capital leases payable                                                                                (42,986)
                Compensated absences                                                                               (1,916,862)
                Net pension liability                                                                             (38,809,535)
                Net other postemployment benefits liability                                                       (84,511,025)

                 Net effect of reporting long-term liabilities                                                                   (151,441,467)

       Net Position of Governmental Activities                                                                                   $     6,018,851

       See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                             B-37                           Comprehensive Annual Financial Report

Source page 116

TOWN OF CANTON, MASSACHUSETTS

                                  STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
                                                       GOVERNMENTAL FUNDS
                                                   FISCAL YEAR ENDED JUNE 30, 2018


                                                                                                             Nonmajor            Total
                                                                         General             Capital        Governmental      Governmental
                                                                          Fund               Projects          Funds             Funds
       Revenues:
        Property taxes                                                 $ 73,672,276      $           -      $      583,486    $ 74,255,762
        Tax liens                                                           297,266                  -                   -         297,266
        Intergovernmental                                                18,164,492            600,762           4,528,779      23,294,033
        Motor vehicle and other excises                                   4,703,198                  -                   -       4,703,198
        Hotel and meals taxes                                               603,821                  -                   -         603,821
        Licenses and permits                                              1,235,156                  -                   -       1,235,156
        Penalties and interest on taxes                                     364,795                  -                   -         364,795
        Payments in lieu of taxes                                           236,816                  -                   -         236,816
        Fines and forfeitures                                               114,905                  -                   -         114,905
        Charges for services                                                      -                  -           2,108,925       2,108,925
        Departmental and other revenue                                    1,086,208                  -           3,337,398       4,423,606
        Investment income                                                   402,448                  -              53,754         456,202
        Contributions and donations                                               -                  -             482,910         482,910

             Total Revenues                                             100,881,381            600,762          11,095,252     112,577,395

       Expenditures:
       Current:
         General government                                               4,080,517               6,505            208,467       4,295,489
         Public safety                                                   11,446,294             172,709          1,270,513      12,889,516
         Education                                                       42,052,042           1,536,849          6,009,765      49,598,656
         Public works                                                     5,706,081           1,212,293            841,935       7,760,309
         Health and human services                                          967,045                   -            137,999       1,105,044
         Culture and recreation                                           2,045,345                   -            596,642       2,641,987
         Pension benefits                                                13,538,094                   -                  -      13,538,094
         Employee benefits                                               12,964,428                   -             97,410      13,061,838
       State and county assessments                                       1,015,303                   -                  -       1,015,303
       Debt service:
         Principal                                                        3,871,933                     -                -       3,871,933
         Interest                                                           995,903                     -                -         995,903

             Total Expenditures                                          98,682,985           2,928,356          9,162,731     110,774,072

       Excess (Deficiency) of Revenues Over (Under) Expenditures          2,198,396          (2,327,594)         1,932,521       1,803,323

       Other Financing Sources (Uses):
        Issuance of bonds and notes                                                -          1,792,000                  -        1,792,000
        Premiums from bonds and notes                                         38,192            145,000             63,679          246,871
        Issuance of refunding bonds                                          414,000                  -                  -          414,000
        Payments on refunding bonds                                         (446,000)                 -                  -         (446,000)
        Transfers in                                                       1,285,690            553,042            991,146        2,829,878
        Transfers out                                                     (1,544,188)                 -         (1,785,690)      (3,329,878)

             Total Other Financing Sources (Uses)                            (252,306)        2,490,042           (730,865)      1,506,871

       Net Change in Fund Balances                                        1,946,090            162,448           1,201,656       3,310,194

       FUND BALANCES - Beginning of year                                 17,935,461           1,336,791         12,202,589      31,474,841

       FUND BALANCES - End of year                                     $ 19,881,551      $    1,499,239     $ 13,404,245      $ 34,785,035

       See acompanying notes to basic financial statements.




Town of Canton, Massachusetts                                         B-38                       Comprehensive Annual Financial Report

Source page 117

TOWN OF CANTON, MASSACHUSETTS

                                RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
                                IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
                                                     FISCAL YEAR ENDED JUNE 30, 2018


                Net Change in Fund Balances - Total Governmental Fund Balances                                                           $   3,310,194

                   Governmental funds report capital outlays as expenditures. However, in the Statement of
                    Activities the cost of those assets is allocated over their estimated useful lives and
                    reported as depreciation expense. The net amounts are reflected here as reconciling items:
                       Capital outlays                                                                                      5,138,643
                       Disposal of capital assets                                                                             (86,103)
                       Depreciation expense                                                                                (5,177,406)

                          Net effect of reporting capital assets                                                                              (124,866)

                   In the Statement of Activities, Internal Service Funds established to administer the Town's
                     health insurance and worker's compensation activities are included within the Statement of
                     activities whereas these activities are not presented in the Statement of Revenues,
                     Expenditures and Changes in Fund Balances.                                                                              1,203,099

                   The issuance of long-term debt provides current financial resources to governmental funds,
                    while the repayment of the principal of long-term debt consumes the financial resources of
                    governmental funds. Neither has any effect on net position. Also governmental funds report
                    the effect of issuance costs, premiums, discounts, and similar items when debt is first issued,
                    whereas these amounts are amortized in the Statement of Activities. The net amounts are
                    reflected here as reconciling items:
                        Issuance of general obligation bonds and notes                                                     (1,792,000)
                        Premiums from bonds and notes                                                                        (246,871)
                        Issuance of refunding bonds                                                                          (414,000)
                        Payments on refunding bonds                                                                           446,000
                        Amortization of premiums on bonds and notes payable                                                   281,532
                        Payments on capital leases                                                                             20,841
                        Repayments of debt                                                                                  3,871,933

                          Net effect of reporting long-term debt                                                                             2,167,435

                  Revenues in the Statement of Activities that do not provide current financial resources are
                    unavailable in the Statement of Revenues, Expenditures and Changes in Fund Balances.
                    Therefore, the recognition of revenue for various types of accounts receivable differ between
                    the two statements. The amount presented represents the difference in unavailable revenue.                                (356,095)

                   In the Statement of Activities, interest is accrued on outstanding long-term debt;
                    whereas in governmental funds interest is not reported until due. The net
                    amount presented here as a reconciling item represents the difference in
                    accruals between this year and the prior year.                                                                              54,537

                   Some expenses reported in the Statement of Activities do not require the use of current
                    financial resources and therefore are not reported as expenditures in the governmental funds:
                        Landfill closure                                                                                       26,000
                        Compensated absences                                                                                 (212,844)
                        Pension benefits                                                                                     (616,157)
                        Other postemployment benefits                                                                      (2,863,809)

                          Net effect of reporting long-term liabilities                                                                      (3,666,810)

                Change in Net Position of Governmental Activities                                                                        $   2,587,494

                See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                                      B-39                               Comprehensive Annual Financial Report

Source page 118

TOWN OF CANTON, MASSACHUSETTS

                                                                   STATEMENT OF NET POSITION
                                                                      PROPRIETARY FUNDS
                                                                         JUNE 30, 2018

                                                                                                                                       Governmental
                                                                                     Business-Type Activities                           Activities
                                                                                                                           Total         Internal
                                                                                                                         Enterprise      Service
                                                                    Water           Sewer               Rink              Funds           Funds
                                Assets
           Current assets:
            Cash and cash equivalents                          $    3,239,375   $    3,575,626     $    2,717,918    $     9,532,919   $   2,817,254
            Investments                                                     -                -                  -                  -       4,193,921
            Receivables (net):
              User charges                                          1,982,920        1,755,504                   -         3,738,424              -
              Tax liens                                                25,078           26,299                   -            51,377              -
              Departmental and other                                        -                -                   -                 -        227,894
            Prepaid items                                                   -                -                   -                 -         41,962
            Deposit held by third party                                     -                -                   -                 -         61,800

                 Total current assets                               5,247,373        5,357,429          2,717,918        13,322,720        7,342,831

           Noncurrent assets:
            Nondepreciable capital assets                             624,852                -             85,935           710,787                -
            Capital assets (net of depreciation)                   30,923,524       13,922,446                  -        44,845,970                -

                       Total noncurrent assets                     31,548,376       13,922,446             85,935        45,556,757                -

           Total Assets                                            36,795,749       19,279,875          2,803,853        58,879,477        7,342,831

                 Deferred Outflows of Resources
           Related to net pension liability                          283,161           225,824             50,281           559,266                -
           Related to net OPEB liability                              19,921            11,035              1,550            32,506                -

                   Total Deferred Outflows of Resources              303,082           236,859             51,831           591,772                -

                                Liabilities
           Current liabilities:
            Warrants and accounts payable                              51,978            3,985             56,390            112,353        147,434
            Accrued payroll and withholdings                           14,343            5,421                  -             19,764              -
            Health claims incurred but not reported                         -                -                  -                  -        878,641
            Accrued interest                                          134,967           54,144                  -            189,111              -
            Other liabilities                                           8,597                -                  -              8,597              -
            Compensated absences                                       24,426            1,761                  -             26,187              -
            Bonds and notes payable                                 1,751,634          941,451              6,000          2,699,085              -

                 Total current liabilities                          1,985,945        1,006,762             62,390          3,055,097       1,026,075

           Noncurrent liabilities:
            Compensated absences                                       73,279            5,283                 -             78,562                -
            Net OPEB liability                                      2,079,249          799,616           135,434          3,014,299                -
            Net pension liability                                   1,330,115        1,060,777           236,189          2,627,081                -
            Bonds and notes payable                                17,021,246        5,233,136                 -         22,254,382                -

                    Total noncurrent liabilities                   20,503,889        7,098,812           371,623         27,974,324                -

           Total Liabilities                                       22,489,834        8,105,574           434,013         31,029,421        1,026,075

                  Deferred Inflows of Resources
           Related to net pension liability                          197,742           157,702             35,113           390,557                -
           Related to net OPEB liability                                 772               304                 49             1,125                -

                    Total Deferred Outflows of Resources             198,514           158,006             35,162           391,682                -

                            Net Position
           Net investment in capital assets                        12,775,496        7,747,859             79,935        20,603,290                -
           Unrestricted                                             1,634,987        3,505,295          2,306,574         7,446,856        6,316,756

           Total Net Position                                  $ 14,410,483     $ 11,253,154       $    2,386,509    $ 28,050,146      $   6,316,756

           See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                                   B-40                            Comprehensive Annual Financial Report

Source page 119

TOWN OF CANTON, MASSACHUSETTS

                                          STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
                                                              PROPRIETARY FUNDS
                                                         FISCAL YEAR ENDED JUNE 30, 2018

                                                                                                                                         Governmental
                                                                                         Business-Type Activities                         Activities
                                                                                                                            Total          Internal
                                                                                                                          Enterprise       Service
                                                                      Water             Sewer               Rink            Funds           Funds

       Operating Revenues:
        Charges for services                                      $    7,186,664    $    7,143,471     $            -    $ 14,330,135    $            -
        Employee contributions                                                 -                 -                  -               -         4,099,038
        Employer contributions                                                 -                 -                  -               -        11,384,001
        Stop loss reimbursements                                               -                 -                  -               -           530,671

             Total Operating Revenues                                  7,186,664         7,143,471                  -      14,330,135        16,013,710

       Operating Expenses:
        Operating costs                                                2,744,435         1,239,856             13,209       3,997,500                 -
        Massachusetts Water Resources Authority assessment             2,551,203         4,252,646                  -       6,803,849                 -
        Depreciation                                                   1,233,434           627,322                  -       1,860,756                 -
        Employee benefits                                                      -                 -                  -               -        14,875,608

             Total Operating Expenses                                  6,529,072         6,119,824             13,209      12,662,105        14,875,608

       Operating Income (Loss)                                          657,592          1,023,647            (13,209)      1,668,030         1,138,102

       Nonoperating Revenues (Expenses):
        Investment income                                                 40,268            34,044             23,726          98,038           64,997
        Interest expense                                                (576,384)         (155,725)              (289)       (732,398)               -

             Total Nonoperating Revenues (Expenses)                     (536,116)         (121,681)            23,437        (634,360)          64,997

       Income Before Capital Contributions
          and Transfers                                                 121,476           901,966              10,228       1,033,670         1,203,099

       Capital contributions                                                   -                 -             5,625            5,625                 -
       Transfers in                                                            -                 -           500,000          500,000                 -

              Total Capital Contributions and Transfers                        -                 -           505,625          505,625                 -

       Change in Net Position                                           121,476           901,966            515,853        1,539,295         1,203,099

       Total Net Position - Beginning of the Year,
         as restated (see Note IV)                                    14,289,007        10,351,188          1,870,656      26,510,851         5,113,657

       Total Net Position - End of the Year                       $ 14,410,483      $ 11,253,154       $    2,386,509    $ 28,050,146    $    6,316,756

       See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                                   B-41                       Comprehensive Annual Financial Report

Source page 120

TOWN OF CANTON, MASSACHUSETTS

                                                                         STATEMENT OF CASH FLOWS
                                                                            PROPRIETARY FUNDS
                                                                       FISCAL YEAR ENDED JUNE 30, 2018

                                                                                                                                                    Governmental
                                                                                                Business-Type Activities                             Activities
                                                                                                                                       Total          Internal
                                                                                                                                     Enterprise       Service
                                                                          Water                Sewer                Rink              Funds            Funds
          Cash Flows from Operating Activities:
            Receipts from users                                       $    7,325,539      $     7,389,895     $             -    $    14,715,434    $             -
            Receipts from interfund services provided                              -                    -                   -                  -         15,848,242
            Payments to employees                                           (884,896)            (309,042)                  -         (1,193,938)                 -
            Payments to vendors                                           (4,334,089)          (5,174,686)             (4,786)        (9,513,561)                 -
            Payments for interfund services used                                   -                    -                   -                  -        (15,076,191)

               Net Cash Provided by (Used in) Operating
                Activities                                                2,106,554            1,906,167               (4,786)         4,007,935           772,051

          Cash Flows from Noncapital Financing Activities:
            Transfers in                                                           -                    -             500,000            500,000                  -

          Net Cash Provided by Noncapital
                Financing Activities                                               -                    -             500,000            500,000                  -

          Cash Flows from Capital and Related Financing Activities:
            Proceeds from capital grants                                           -                   -                5,625              5,625                  -
            Proceeds from the issuance of refunding bonds                  2,504,000                   -                    -          2,504,000                  -
            Premiums from the issuance of bonds and notes                    231,000                   -                    -            231,000                  -
            Payments of refunded bonds                                    (2,694,000)                  -                    -         (2,694,000)                 -
            Acquisition and construction of capital assets                  (355,565)           (347,845)             (30,608)          (734,018)                 -
            Principal payments on bonds and notes                         (1,704,800)           (942,367)              (7,000)        (2,654,167)                 -
            Interest payments on bonds and notes                            (647,419)           (184,291)                (289)          (831,999)                 -

               Net Cash Used in Capital and Related
                Financing Activities                                      (2,666,784)          (1,474,503)            (32,272)        (4,173,559)                 -

          Cash Flows from Investing Activities:
            Investment income                                                40,268               34,044               23,726             98,038             64,997
            Investment of operating cash                                          -                    -                    -                  -            (91,887)

               Net Cash Provided by (Used in) Investing Activities           40,268               34,044               23,726             98,038            (26,890)

          Net Change in Cash and Cash Equivalents                          (519,962)             465,708              486,668            432,414           745,161

          Cash and Cash Equivalents:
            Beginning of the year                                         3,759,337            3,109,918            2,231,250          9,100,505         2,072,093

             End of the year                                          $   3,239,375       $    3,575,626      $     2,717,918    $     9,532,919    $    2,817,254

          Reconciliation of Operating Income (Loss) to Net Cash
           Provided by (Used in) Operating Activities:

           Operating Income (Loss)                                    $     657,592       $    1,023,647      $       (13,209)   $     1,668,030    $    1,138,102

           Adjustments to reconcile operating income (loss) to net
             cash provided by (used in) operating activities:
               Depreciation                                               1,233,434              627,322                    -          1,860,756                  -
               Changes in assets, deferred outflows of resources,
                 liabilities and deferred inflows of
                  resources: Receivables                                    138,875              246,424                    -            385,299          (165,468)
                  Prepaid items                                                   -                    -                    -                  -           (41,962)
                  Deferred outflows of resources                           (140,627)            (114,953)             (25,016)          (280,596)                -
                  Accounts payable and accrued expenses                         278               (6,874)                  83             (6,513)         (158,621)
                  Other liabilities                                              75                    -                    -                 75                 -
                  Net Other postemployment liability                         56,171                2,707                4,899             63,777                 -
                  Net pension liability                                      48,026               38,301                8,528             94,855                 -
                  Deferred inflows of resources                             112,730               89,593               19,929            222,252                 -

                  Net Cash Provided by (Used in) Operating
                   Activities                                         $   2,106,554       $    1,906,167      $        (4,786)   $     4,007,935    $      772,051

          Noncash capital and related financing activities:
             Amortization of bond premium                             $      55,641       $       22,219      $             -    $        77,860    $             -

          See accompanying notes to basic financial statements.




Town of Canton, Massachusetts                                                           B-42                          Comprehensive Annual Financial Report