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Capital Assets – Capital assets, which include land, land improvements, buildings and
improvements, machinery and equipment, vehicles and infrastructure (e.g. roads, water and sewer
mains, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded
at the estimated fair market value at the date of donation. Interest incurred during the
construction phase of capital assets of business-type activities is included as part of the
capitalized value of the assets constructed.
All purchases and construction costs in excess of $25,000 are capitalized at the date of acquisition
or construction, respectively, with expected lives of greater than one year. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized.
Capital assets (excluding land and construction-in-process) are depreciated by the Town on a
straight-line-basis over the following estimated useful lives:
Land improvements 20-50 years
Buildings and improvements 20-50 years
Machinery and equipment 3-20 years
Vehicles 5 years
Infrastructure 40-50 years
Interfund Balances – Activity between funds that are representative of lending arrangements
outstanding at the end of the fiscal year are referred to as either due to/from other funds or
advances to/from other funds. All other outstanding balances between funds are reported as due
to/from other funds.
Any residual balances outstanding between the governmental activities and business-type
activities are reported in the government-wide financial statements as internal balances.
Interfund Transfers – During the course of its operations, resources are permanently reallocated
between and within funds. These transactions are reported as transfers in and transfers out in the
individual fund statements. Transfers between and within governmental and fiduciary funds are
eliminated from the governmental activities in the statement of activities. Any residual balances
outstanding between the governmental activities and the business–type activities are reported in
the statement of activities as transfers, net.
Investment Income – Excluding the permanent funds, investment income derived from major and
nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by
state law. Investment income of the proprietary funds is voluntarily assigned to the general fund.
Compensated Absences – It is the Town’s policy to permit employees to accumulate earned but
unused vacation and sick-pay benefits. Compensated absence liabilities related to both
governmental and business-type activities are normally paid from the funds reporting payroll and
related expenditures. Amounts related to these benefits are accrued when incurred in the
government-wide and proprietary fund financial statements. A liability for these amounts is
reported in Governmental Funds only if they have matured.
Town of Canton, Massachusetts Page 52 of 119 Comprehensive Annual Financial ReportSource page 123
Long-term Obligations – Long-term debt is reported as liabilities in the government-wide and
proprietary fund statement of net position. Bond premiums and discounts are amortized over the
life of the bonds using the effective interest method. Bond anticipation notes payable are reported
net of the applicable bond premium or discount.
In the governmental fund financial statements, the face amount of long-term debt issued is
reported as other financing sources. Premiums received on a debt issuance are reported as other
financing sources while discounts are reported as other financing uses. Issuance costs are
exclusively reported as general government expenditures regardless of whether they are withheld
from the actual proceeds.
Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial position
will sometimes report a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources
(expense/expenditure) until then. The government only has one item that qualifies for reporting
in this category. It is the prepaid expenses reported in the government-wide statement of net
position and governmental funds balance sheet.
In addition to liabilities, the statement of financial position will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s) and
so will not be recognized as an inflow of resources (revenue) until that time. The Town has only
one type of item, which arises only under a modified accrual basis of accounting, which qualifies
for reporting in this category. Accordingly, the item unavailable revenue is reported only in the
governmental funds balance sheet. The governmental funds report unavailable revenues from
four sources: property taxes, excise taxes, Massachusetts School Building Authority grants and
other. These amounts are deferred and recognized as an inflow of resources in the period that the
amounts become available.
Net Position – In the government-wide financial statements, net position reported as “net
investment in capital assets” includes capital assets, net of accumulated depreciation, less the
principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital
related debt are not considered to be capital related debt.
Net position is reported as restricted when amounts are not available for appropriation or are
legally restricted by outside parties for a specific use. Net position has been restricted for the
following:
Nonexpendable permanent funds represent the endowment portion of donor restricted trusts
that support governmental programs.
Federal and State grants represent assets that have restrictions placed on them from federal
and state granting agencies.
Massachusetts School Building Authority grant represents a capital grant to fund a portion of
the debt service on outstanding school construction debt that will be amortized over the life of
the bonds in accordance with state law.
Other purposes represent assets that are restricted by donors for specific governmental
programs and uses.
Town of Canton, Massachusetts Page 53 of 119 Comprehensive Annual Financial ReportSource page 124
Fund Equity – In the fund financial statements, fund balance for governmental funds is reported
in classifications that comprise a hierarchy based primarily on the extent in which the Town is
required to honor constraints on the specific purpose for which amounts in the funds can be spent.
Fund balance is reported in five components – non-spendable, restricted, committed, assigned,
and unassigned as described below:
Non-spendable represents amounts that cannot be spent because they are either (a) not in
spendable form (i.e. inventory or prepaid) or (b) legally or contractually required to be
maintained intact such as the corpus of an endowment.
Restricted represents amounts that have constraints placed either externally by third-parties
(creditors, grantors, contributors, or laws or regulations of other governments) or by law
through constitutional provisions or enabling legislation. Enabling legislation authorizes the
Town to assess, levy, charge or otherwise mandate payment of resources (from external
resource providers) and includes a legally enforceable requirement (compelled by external
parties) that those resources be used only for the specific purposes stipulated in the
legislation.
Committed represents amounts that can only be used for specific purposes pursuant to
formal action of the Town Meeting through Town Meeting Articles, which represent the
most binding constraint that give rise to committed fund balance. Those committed amounts
cannot be used for any other purpose unless the Town Meeting removes or changes the
specified use by taking the same type of action (through Town Meeting Articles) it
employed previously to commit those amounts.
Assigned represents amounts that are constrained by the Town’s intent to be used for
specific purposes, but are neither restricted nor committed. The Board of Selectmen has by
ordinance authorized the Finance Director to assign fund balance. The Town Meeting may
also assign fund balance as it does when appropriating fund balance to cover a gap between
estimated revenue and appropriations in the subsequent year’s appropriated budget.
Unassigned represents amounts that have not been restricted, committed or assigned to
specific purposes within the general fund. The general fund is the only fund that reports a
positive unassigned fund balance amount. Other governmental funds besides the general
fund can only report a negative unassigned fund balance amount.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to
use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as
they are needed. When unrestricted resources (committed, assigned and unassigned) are available
for use it is the Town’s policy to use committed resources first, then assigned, and then
unassigned as they are needed.
The Town has not established financial policies with respect to maintaining minimum fund
balance amounts.
Stabilization Funds – The Town maintains a general stabilization fund which may be used for any
municipal purpose upon a two-thirds vote of the Town Meeting. The balance of the fund totals
$5,074,180 at June 30, 2014 and is reported as unassigned fund balance in the General Fund.
Town of Canton, Massachusetts Page 54 of 119 Comprehensive Annual Financial ReportSource page 125
Encumbrances – The Town’s encumbrance policy regarding the general fund is to (1) classify
encumbrances that arise from the issuance of purchase orders resulting from normal purchasing
activity approved by the Finance Department as assigned, and (2) classify encumbrances that
result from an action of the Town Meeting as committed. Encumbrances of funds already
restricted, or committed are included within the classification of those fund balances and not
reported separately. The Town reports $92,993 of encumbrances from normal purchasing activity
in the general fund as assigned. There are no encumbrances reported in any other fund.
The following table reflects the Town’s fund equity categorizations:
Nonmajor
Governmental
General Funds Total
Nonspendable:
Nonexpendable trust funds $ - $ 432,785 $ 432,785
Restricted:
General government - 3,131,683 3,131,683
Public safety - 2,529,579 2,529,579
Education - 2,178,108 2,178,108
Culture and recreation - 165,919 165,919
Community preservation - 476,621 476,621
Capital outlay - 2,427,694 2,427,694
Other purposes - 634,941 634,941
Committed:
General government 81,865 - 81,865
Public works 141,715 - 141,715
Other purposes 134,568 - 134,568
Assigned:
Purchase orders 92,993 - 92,993
Subsequent years' budget 801,000 - 801,000
Unassigned 9,815,657 (1,187,828) 8,627,829
$ 11,067,798 $ 10,789,502 $ 21,857,300
E. Excess of Expenditures Over Appropriations and Deficits
During fiscal year 2014, expenditures exceeded appropriations in the General Fund for state and
county assessments, which were funded from available funds.
The Town also incurred individual fund deficits totaling $1,187,828, in two special revenue funds
and two capital projects funds that are reported in the non-major governmental funds. These
deficits will be funded through grant revenues and bond proceeds during fiscal year 2015.
F. Use of Estimates
The preparation of basic financial statements in conformity with GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure for contingent assets and liabilities at the date of the basic financial statements and the
Town of Canton, Massachusetts Page 55 of 119 Comprehensive Annual Financial ReportSource page 126
reported amounts of the revenues and expenditures/expenses during the fiscal year. Actual results
could vary from estimates that were used.
II. Detailed Notes to All Funds
A. Deposits and Investments
A cash and investment pool is maintained that is available for use by all funds. Each fund type’s
portion of this pool is displayed on the balance sheet as “cash and cash equivalents”. The
deposits and investments of trust funds are held separately from those of other funds.
State laws and regulations require the Town to invest funds only in pre-approved investment
instruments which include but are not necessarily limited to bank deposits, money markets,
certificates of deposit, U.S. obligations, repurchase agreements, and the State Treasurer’s
investment pool (the Pool). In addition, the statutes impose various limitations on the amount and
length of investments and deposits. Repurchase agreements cannot be for a period of over ninety
days, and the underlying security must be a United States obligation.
The Pool meets the criteria of an external investment pool. The Pool is administered by the
Massachusetts Municipal Depository Trust (the MMDT), which was established by the Treasurer
of the Commonwealth who serves as Trustee. The fair value of the position in the Pool is the
same as the value of the Pool shares.
Custodial Credit Risk: Deposits - In the case of deposits, this is the risk that in the event of a bank
failure, the government’s deposits may not be returned to it. The Town has adopted a policy that
no more than 25% of the Town’s cash may be comprised of unsecured bank deposits, except for a
30 day reprieve during times of heavy collections. The credit worthiness of banks will be tracked
by Veribanc, or other bank credit worthiness reporting systems, and the Treasurer will move or
collateralize deposits as a result of negative reports. At year-end, the carrying amount of the
Town's deposits was $27,656,263 and the bank balance was $28,319,663. Of the Town's bank
balance, $27,556,034 was covered by federal depository insurance or the Depositor’s Insurance
Fund; $473,186 was collateralized and the remainder was exposed to custodial credit risk because
it was uninsured and uncollateralized.
Custodial Credit Risk: Investments – In the case of investments, this is the risk that in the event of
the invested party not being able to provide required payments to investors, ceasing to exist, or
filing of bankruptcy, the Town may not be able to recover the full amount of its principal
investment and/or investment earnings. The Town has adopted a policy to review the financial
institutions financial statements and the background of each advisor. All securities not held
directly by the Town will be held in the Town’s name and tax identification number by a third
party custodian and evidenced by safekeeping receipts showing individual CUSIP numbers for
each security. The investments in MMDT are not exposed to custodial credit risk as their
existence is not evidenced by securities that exist in physical or book form. The Town’s
$2,760,000 investment in a repurchase agreement is held by a counterparty, but not in the Town’s
name. The repurchase agreement is fully collateralized with U.S. government securities.
Interest Rate Risk – The Town limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The Town’s policy limits investments
of operating funds to one year or less.
Town of Canton, Massachusetts Page 56 of 119 Comprehensive Annual Financial ReportSource page 127
Concentration of Credit Risk – The Town has adopted a policy to limit the amount of investments
that may be invested in a single issuer to 10% of the Town’s investments, except for U.S
government obligations, investments fully collateralized with U.S. government obligations and
the Pool (MMDT). At June 30, 2014, Town has 26% of its investments in repurchase agreements
collateralized with United States government backed securities and 44% in MMDT.
Credit Risk – The Town has adopted a policy to only purchase investment grade securities with a
high concentration in securities rated ‘A’ or better.
At June 30, 2014 the credit quality ratings of investments were as follows:
Corporate U.S. Government
Quality Ratings Fixed Agencies & Certificates
(Moody's) Income Treasuries of Deposit Totals
AAA $ - $ 3,739,575 $ - $ 3,739,575
AA2 51,081 - - 51,081
A2 108,500 - - 108,500
A3 275,687 - - 275,687
BAA2 53,474 - - 53,474
Not rated - - 4,434,401 4,434,401
Totals - All $ 488,742 $ 3,739,575 $ 4,434,401 $ 8,662,718
At June 30, 2014 the Town had the following investments and maturities:
Time Until Maturity (Years)
Fair Less More
Investment Type Value Than 1 1-5 6-10 Than 10
Corporate fixed income securities $ 488,742 $ - $ 488,742 $ - $ -
U.S. government obligations 3,739,575 177,914 3,486,497 75,164 -
Certificates of deposit 4,434,401 2,591,122 1,843,279 - -
Total Town investments with maturities 8,662,718 $ 2,769,036 $ 5,818,518 $ 75,164 $ -
Other Investments:
Equities $ 1,298,903
Mutual funds 1,169,605
Repurchase agreements 2,760,000
External investment pool (MMDT) 4,189,317
Total Town investments $ 18,080,543
Town of Canton, Massachusetts Page 57 of 119 Comprehensive Annual Financial ReportSource page 128
B. Receivables
Receivables as of year-end for the Town's individual major and non-major governmental funds
in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes $ 496,947 $ (45,036) $ 451,911
Tax liens and foreclosures 1,343,188 - 1,343,188
Community preservation surcharges 3,485 - 3,485
Motor vehicle and other excise taxes 457,846 (245,158) 212,688
Ambulance fees 448,200 (187,128) 261,072
Public safety details 123,509 (6,393) 117,116
Intergovernmental 3,553,660 - 3,553,660
Total $ 6,426,835 $ (483,715) $ 5,943,120
Receivables as of year-end for Town's proprietary funds are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Water user charges $ 1,832,166 $ - $ 1,832,166
Water liens 21,026 - 21,026
Sewer user charges 1,646,307 - 1,646,307
Sewer liens 24,410 - 24,410
Rink user charges 3,197 - 3,197
Stop loss receivables 64,885 - 64,885
Total $ 3,591,991 $ - $ 3,591,991
Governmental funds report deferred inflows of resources in connection with receivables for revenues
that are not considered to be available to liquidate liabilities of the current period. The following
identifies the components of deferred inflows of resources in the governmental funds:
Other
General Governmental
Fund Funds Total
Receivable type:
Real estate and personal property taxes $ 210,428 $ - $ 210,428
Tax liens and foreclosures 1,341,202 1,986 1,343,188
Motor vehicle and other excise taxes 212,688 - 212,688
Community preservation surcharges - 3,485 3,485
Ambulance fees - 261,072 261,072
Public safety details - 117,116 117,116
Intergovernmental 2,860,353 - 2,860,353
Total $ 4,624,671 $ 383,659 $ 5,008,330
Town of Canton, Massachusetts Page 58 of 119 Comprehensive Annual Financial ReportSource page 129
School Building Assistance Reimbursement – As of June 30, 2014, the Town expects to receive
the balance of grants from the Commonwealth of Massachusetts under various construction
reimbursement regulations totaling approximately $3.2 million applicable to approved school
construction costs which includes both principal and interest. Approximately $2.9 million of
such costs are reimbursed to the Town in equal installments over the life of the related bond
issues and are subject to appropriation only by the State Legislature. Approximately $0.3 million
is due in a lump sum during fiscal year 2015. In the Governmental funds, a receivable of
approximately $3.2 million under the caption Intergovernmental; has been recorded. This
includes the reimbursable portion of the principal balance and the lump sum payout as of June 30,
2014.
C. Interfund Receivables, Payables and Transfers
The composition of interfund balances at June 30, 2014 is as follows:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds - $ 39,618
Roadway Improvements
The outstanding balances between funds result mainly from the timing difference between the
dates that reimbursable expenditures occur, the intergovernmental reimbursements are received
and the payments to the general fund are made.
The composition of interfund transfers for the fiscal year ended June 30, 2014 is as follows:
Transfers In
Nonmajor
General Governmental
Transfers Out Fund Funds Total
General Fund $ - $ 1,022,902 $ 1,022,902 (1)
Nonmajor Governmental Funds 1,444,745 288,468 1,733,213 (2)
Water Enterprise Fund 756,170 - 756,170 (3)
Sewer Enterprise Fund 394,399 - 394,399 (3)
Rink Enterprise Fund 82,015 - 82,015 (3)
Total $ 2,677,329 $ 1,311,370 $ 3,988,699
(1) Transfers to nonmajor governmental funds to for capital projects ($1,231,370) and
retirement buyback reserves ($80,000).
(2) Transfers to general fund to supplement operating budgets and transfers between
nonmajor governmental funds for various capital projects.
(3) Transfers to general fund for indirect costs.
Town of Canton, Massachusetts Page 59 of 119 Comprehensive Annual Financial ReportSource page 130
D. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2014, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land $ 11,158,868 $ - $ - $ 11,158,868
Construction in process 474,770 530,961 - 1,005,731
Total capital assets not being depreciated 11,633,638 530,961 - 12,164,599
Capital assets being depreciated:
Land improvements 2,765,111 - - 2,765,111
Buildings 77,555,239 - - 77,555,239
Building improvements 23,679,870 825,998 - 24,505,868
Machinery and equipment 6,429,607 406,569 - 6,836,176
Vehicles 4,795,440 433,702 (131,812) 5,097,330
Infrastructure 19,131,062 442,571 - 19,573,633
Total capital assets being depreciated 134,356,329 2,108,840 (131,812) 136,333,357
Less accumulated depreciation for:
Land improvements (1,154,368) (167,343) - (1,321,711)
Buildings (21,246,639) (1,745,924) - (22,992,563)
Building improvements (9,897,988) (923,469) - (10,821,457)
Machinery and equipment (3,379,124) (240,703) - (3,619,827)
Vehicles (4,173,519) (531,428) 97,232 (4,607,715)
Infrastructure (4,243,339) (483,809) - (4,727,148)
Total accumulated depreciation (44,094,977) (4,092,676) 97,232 (48,090,421)
Total capital assets being depreciated, net 90,261,352 (1,983,836) (34,580) 88,242,936
Total governmental activities capital assets, net $ 101,894,990 $ (1,452,875) $ (34,580) $ 100,407,535
Capital asset activity for business-type activities for the year ended June 30, 2014, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Business-Type Activities:
Capital assets not being depreciated:
Land $ 624,852 $ - $ - $ 624,852
Capital assets being depreciated:
Buildings 18,758,743 - - 18,758,743
Building improvements 167,425 - - 167,425
Machinery and equipment 1,447,226 886,536 - 2,333,762
Vehicles 916,240 - (35,000) 881,240
Infrastructure 53,016,890 2,181,928 - 55,198,818
Total capital assets being depreciated 74,306,524 3,068,464 (35,000) 77,339,988
Less accumulated depreciation for:
Buildings (3,025,411) (438,653) - (3,464,064)
Building improvements (62,293) (8,621) - (70,914)
Machinery and equipment (729,341) (181,433) - (910,774)
Vehicles (740,510) (59,634) 35,000 (765,144)
Infrastructure (24,384,393) (1,046,999) - (25,431,392)
Total accumulated depreciation (28,941,948) (1,735,340) 35,000 (30,642,288)
Total capital assets being depreciated, net 45,364,576 1,333,124 - 46,697,700
Total business-type activities capital assets, net $ 45,989,428 $ 1,333,124 $ - $ 47,322,552
Town of Canton, Massachusetts Page 60 of 119 Comprehensive Annual Financial ReportSource page 131
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities: Water
Capital assets not being depreciated:
Land $ 624,852 $ - $ - $ 624,852
Capital assets being depreciated:
Buildings 17,495,139 - - 17,495,139
Building improvements 27,465 - - 27,465
Machinery and equipment 924,732 508,242 - 1,432,974
Vehicles 576,364 - (35,000) 541,364
Infrastructure 24,182,780 1,292,868 - 25,475,648
Total capital assets being depreciated 43,206,480 1,801,110 (35,000) 44,972,590
Less accumulated depreciation for:
Buildings (2,709,427) (408,530) - (3,117,957)
Building improvements (2,060) (1,373) - (3,433)
Machinery and equipment (448,791) (117,885) - (566,676)
Vehicles (429,233) (44,612) 35,000 (438,845)
Infrastructure (9,364,635) (485,793) - (9,850,428)
Total accumulated depreciation (12,954,146) (1,058,193) 35,000 (13,977,339)
Total capital assets being depreciated, net 30,252,334 742,917 - 30,995,251
Total Water capital assets, net $ 30,877,186 $ 742,917 $ - $ 31,620,103
Business-type Activities: Sewer
Capital assets being depreciated:
Buildings $ 1,263,604 $ - $ - $ 1,263,604
Machinery and equipment 264,697 378,294 - 642,991
Vehicles 310,716 - - 310,716
Infrastructure 28,834,110 889,060 - 29,723,170
Total capital assets being depreciated 30,673,127 1,267,354 - 31,940,481
Less accumulated depreciation for:
Buildings (315,984) (30,123) - (346,107)
Machinery and equipment (119,114) (45,384) - (164,498)
Vehicles (282,117) (15,022) - (297,139)
Infrastructure (15,019,758) (561,206) - (15,580,964)
Total accumulated depreciation (15,736,973) (651,735) - (16,388,708)
Total capital assets being depreciated, net 14,936,154 615,619 - 15,551,773
Total Sewer capital assets, net $ 14,936,154 $ 615,619 $ - $ 15,551,773
Town of Canton, Massachusetts Page 61 of 119 Comprehensive Annual Financial ReportSource page 132
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities: Rink
Capital assets being depreciated:
Building improvements $ 139,960 $ - $ - $ 139,960
Machinery and equipment 257,797 - - 257,797
Vehicles 29,160 - - 29,160
Total capital assets being depreciated 426,917 - - 426,917
Less accumulated depreciation for:
Building improvements (60,233) (7,248) - (67,481)
Machinery and equipment (161,436) (18,164) - (179,600)
Vehicles (29,160) - - (29,160)
Total accumulated depreciation (250,829) (25,412) - (276,241)
Total capital assets being depreciated, net 176,088 (25,412) - 150,676
Total Rink capital assets, net $ 176,088 $ (25,412) $ - $ 150,676
Depreciation expense was charged to functions/programs as follows:
Governmental Activities: Business-Type Activities:
General government $ 162,655 Water $ 1,058,193
Public safety 528,352 Sewer 651,735
Education 2,304,019 Rink 25,412
Public works 738,534 $ 1,735,340
Health and human services 14,928
Culture and recreation 344,188
$ 4,092,676
E. Leases
In a prior year, the Town entered into a non-cancelable lease for the purchase of a school bus.
This lease qualifies as a capital lease for accounting purposes and, therefore, has been recorded at
the present value of the future minimum lease payments as of the inception date.
Assets acquired through capital leases are as follows:
Amount
Asset:
School bus $ 77,711
Less: accumulated depreciation (54,397)
Total $ 23,314
Town of Canton, Massachusetts Page 62 of 119 Comprehensive Annual Financial ReportSource page 133
The future minimum lease payments and the present value of the minimum lease
payments at June 30, 2014, are as follows:
Fiscal Year Ended June 30, Amount
2015 $ 13,445
Total minimum lease payments 13,445
Less: amounts representing interest (423)
Present value of minimum lease payments $ 13,022
`
F. Temporary Debt
The Town is authorized to borrow on a temporary basis to fund the following:
Current Operating Costs – Prior to collection of revenues, expenditures may be financed through
the issuance of revenue or tax anticipation notes (RANS or TANS).
Capital Projects and Other Approved Costs – Projects may be temporarily funded through the
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). In certain cases,
prior to the issuance of these temporary notes, the governing body must take the necessary legal
steps to authorize the issuance of the general obligation bonds. Temporary notes may not exceed
the aggregate amount of bonds authorized or the grant award amount.
Temporary notes are general obligations of the Town and carry maturity dates that are limited by
state law. Interest expenditures and expenses for temporary borrowings are accounted for in the
general fund and enterprise funds, respectively. Temporary notes outstanding at June 30, 2014,
are payable as follows:
Interest Maturity July 1, June 30,
Type Rate Date 2013 Additions Retirements 2014
BAN 1.25% Matured $ 334,800 $ - $ (334,800) $ -
BAN 1.50% 3/27/15 - 1,985,950 - 1,985,950
Total Governmental Notes 334,800 1,985,950 (334,800) 1,985,950
BAN 1.25% Matured 1,875,000 - (1,875,000) -
BAN 1.50% 3/27/15 - 930,000 - 930,000
Total Business-Type Notes 1,875,000 930,000 (1,875,000) 930,000
Total Notes Payable $ 2,209,800 $ 2,915,950 $ (2,209,800) $ 2,915,950
Short-term (BANs) issued for nonmajor governmental funds were issued for a fire truck
($800,000), departmental equipment ($190,000) and school building improvements ($995,950).
Those issued for business-type funds were issued for water projects ($530,000) and sewer
projects ($400,000).
Town of Canton, Massachusetts Page 63 of 119 Comprehensive Annual Financial ReportSource page 134
G. Long–Term Obligations
The Town issues general obligation bonds and notes to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds and notes have been issued for
both governmental and business-type activities. Additionally, the Town incurs various other
long-term obligations relative to associated personnel costs.
State law permits the Town, under the provisions of Chapter 44, Section 10, to authorize
indebtedness up to a limit of 5.0 percent of its equalized valuation. Debt issued in accordance
with this section of the law is designated as being “inside the debt limit.” In addition, the Town
may authorize debt in excess of that limit for specific purposes. Such debt, when issued, is
designated as being “outside the debt limit”.
On August 22, 2013, the Town received $1,030,000 from the Massachusetts Water Resources
Authority, of which $463,500 was in the form of a grant and $566,500 was issued as an interest
free loan payable in equal installments over five years. The proceeds will be used to fund sewer
inflow and infiltration improvements. Also, on August 22, 2013, the Town issued a $1,090,000
interest free loan with the Massachusetts Water Resources authority, payable in equal installment
over ten years. The proceeds will be used to fund a water tank repair project.
On November 13, 2013, the Town issued general obligation refunding bonds of $2,870,000 (par
value) with variable interest rates of 3.0% to 4.0%. The debt proceeds, along with $240,397 of
premium, were used to retire $2,950,000 of callable bonds. As a result of the current refunding,
the Town reduced its total debt service requirements by $184,260, which resulted in an economic
gain (difference between the present value of the debt service payments on the old and new debt)
of $179,565.
Also on November 13, 2013, the Town issued general obligation refunding bonds of $4,665,000
(par value) with variable interest rates of 2.0% to 5.0%. The debt proceeds, along with $304,148
of premium, were used to retire $4,885,000 of callable bonds. As a result of the current
refunding, the Town reduced its total debt service requirements by $517,037, which resulted in an
economic gain of $462,424.
On March 15, 2014, the Town issued general obligation refunding bonds of $10,975,000 (par
value) with variable interest rates of 2.5% to 5.0%. The debt proceeds, along with $1,674,870 of
premium and $4,856,532 of available Town funds, were used to retire $17,125,000 of callable
bonds. As a result of the current refunding, the Town reduced its total debt service requirements
by $2,738,354 (inclusive of the impact of the portion funded by the Town), which resulted in an
economic gain of $2,057,748.
Also on March 15, 2014, the Town issued $2,350,000 of general obligation bonds with variable
interest rates of 2.5% to 5.0%. $2,050,000 of the proceeds, along with $47,800 of available
funds, was used to retire BANS maturing on March 27, 2014. Funds were used for the purchase
of public works equipment ($175,000), water system improvements ($1,875,000) and sewer
system improvements ($300,000).
Town of Canton, Massachusetts Page 64 of 119 Comprehensive Annual Financial ReportSource page 135
The following reflects the current year activity in the long-term liability accounts:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Governmental Activities:
Bond and note indebtedness $ 39,784,084 $ 15,360,400 $ (26,005,084) $ 29,139,400 $ 3,819,900
Unamortized bond premium 226,766 1,927,123 (253,399) 1,900,490 414,813
Unamortized deferred charge on refiunding (67,627) - 67,627 - -
Capital leases 25,634 - (12,612) 13,022 13,022
Landfill closure 131,000 - (27,000) 104,000 27,000
Compensated absences 1,496,537 459,865 (374,134) 1,582,268 395,567
Other postemployment benefits 34,877,722 12,616,370 (5,154,839) 42,339,253 -
Total Governmental Activities $ 76,474,116 $ 30,363,758 $ (31,759,441) $ 75,078,433 $ 4,670,302
Business-Type Activities - Water:
Bond and note debt $ 20,524,105 $ 4,307,300 $ (2,860,105) $ 21,971,300 $ 1,642,500
Unamortized bond premium - 354,792 (2,392) 352,400 59,950
Unamortized deferred charge on refunding (8,151) - 8,151 - -
Compensated absences 128,890 27,623 (32,223) 124,290 31,073
Other postemployment benefits 639,924 192,004 (19,431) 812,497 -
Total Water 21,284,768 4,881,719 (2,906,000) 23,260,487 1,733,523
Business-Type Activities - Sewer:
Bond and note debt 8,594,655 2,758,800 (2,709,900) 8,643,555 816,265
Unamortized bond premium - 196,174 (16,735) 179,439 41,547
Unamortized deferred charge on refunding (59,222) - 59,222 - -
Compensated absences 35,080 45,496 (8,770) 71,806 17,952
Other postemployment benefits 290,316 87,088 (5,426) 371,978 -
Total Sewer 8,860,829 3,087,558 (2,681,609) 9,266,778 875,764
Business-Type Activities - Rink:
Bond and note debt 42,000 - (8,000) 34,000 8,000
Compensated absences 16,883 3,340 (4,221) 16,002 4,001
Other postemployment benefits 184,518 40,499 (176) 224,841 -
Total Rink 243,401 43,839 (12,397) 274,843 12,001
Total Business-Type Activities $ 30,388,998 $ 8,013,116 $ (5,600,006) $ 32,802,108 $ 2,621,288
The governmental activities liabilities will be liquidated by the general fund. The business-type
liabilities will be liquidated by the enterprise fund reporting the liabilities.
Town of Canton, Massachusetts Page 65 of 119 Comprehensive Annual Financial ReportSource page 136
The following is a summary of outstanding long-term debt obligations as of June 30, 2014:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Governmental Activities:
General Obligation Bonds 2.00 - 5.00% $ 33,397,159 $ 175,000 $(23,449,159) $ 10,123,000
Refunding Bonds 2.00 - 4.00% 6,386,925 15,185,400 (2,555,925) 19,016,400
Total Governmental Activities 39,784,084 15,360,400 (26,005,084) 29,139,400
Add: Unamortized bond premium 226,766 1,927,123 (253,399) 1,900,490
Less: Unamortized deferred charge on refunding (67,627) - 67,627 -
Total Governmental Activities, net $ 39,943,223 $ 17,287,523 $ (26,190,856) $ 31,039,890
Business-Type Activities - Water:
General Obligation Bonds 2.00 - 5.00% $ 19,336,800 $ 1,875,000 $ (2,502,800) $ 18,709,000
Refunding Bonds 3.25 - 4.00% 409,305 1,342,300 (266,305) 1,485,300
Massachusetts Water Resource Authority 0.00% 778,000 1,090,000 (91,000) 1,777,000
Total Water 20,524,105 4,307,300 (2,860,105) 21,971,300
Add: Unamortized bond premium - 354,792 (2,392) 352,400
Less: Unamortized deferred charge on refunding (8,151) - 8,151 -
Total Water, net 20,515,954 4,662,092 (2,854,346) 22,323,700
Business-Type Activities - Sewer:
General Obligation Bonds 2.00 - 5.00% 3,079,000 300,000 (960,000) 2,419,000
Refunding Bonds 3.25 - 4.00% 2,080,770 1,892,300 (1,589,770) 2,383,300
Massachusetts Water Resource Authority 0.00% - 566,500 - 566,500
Massachusetts Water Pollution Abatement Trust 2.00% 3,434,885 - (160,130) 3,274,755
Total Sewer 8,594,655 2,758,800 (2,709,900) 8,643,555
Add: Unamortized bond premium - 196,174 (16,735) 179,439
Less: Unamortized deferred charge on refunding (59,222) - 59,222 -
Total Sewer, net 8,535,433 2,954,974 (2,667,413) 8,822,994
Business-Type Activities - Rink:
General Obligation Bonds 2.00 - 4.25% 42,000 - (8,000) 34,000
Total Rink 42,000 - (8,000) 34,000
Total Business-Type Activities, net $ 29,093,387 $ 7,617,066 $ (5,529,759) $ 31,180,694
The following represents authorized and unissued debt as of June 30, 2014:
Project Amount
Governmental:
School building improvements $ 2,041,458
Other capital projects 1,588,986
Business-type:
Water projects 421,250
Sewer system improvements 1,974,095
Sewer other capital projects 276,750
Rink compressor 245,000
Total Authorized and Unissued $ 6,547,539
Town of Canton, Massachusetts Page 66 of 119 Comprehensive Annual Financial ReportSource page 137
Payments on outstanding bond balances due in future years consist of the following:
Governmental Activities
Year Ending Principal Interest
June 30, Balance Balance Total
2015 $ 3,819,900 $ 1,132,879 $ 4,952,779
2016 3,677,700 972,437 4,650,137
2017 3,383,800 838,851 4,222,651
2018 3,015,600 713,119 3,728,719
2019 2,762,800 593,953 3,356,753
2020 - 2024 9,862,200 1,445,188 11,307,388
2025 - 2029 2,135,400 273,221 2,408,621
2030 - 2032 482,000 29,675 511,675
Total $ 29,139,400 $ 5,999,323 $ 35,138,723
Business-Type Activities: Water
Year Ending Principal Interest
June 30, Balance Balance Total
2015 $ 1,642,500 $ 700,620 $ 2,343,120
2016 1,637,500 647,761 2,285,261
2017 1,593,400 599,868 2,193,268
2018 1,502,800 535,978 2,038,778
2019 1,497,700 491,718 1,989,418
2020 - 2024 6,985,500 1,814,196 8,799,696
2025 - 2029 5,208,900 873,477 6,082,377
2030 - 2033 1,903,000 123,935 2,026,935
Total $ 21,971,300 $ 5,787,553 $ 27,758,853
Business-Type Activities: Sewer
Year Ending Principal Interest
June 30, Balance Balance Total
2015 $ 816,265 $ 226,022 $ 1,042,287
2016 816,765 202,722 1,019,487
2017 810,132 181,880 992,012
2018 802,367 160,763 963,130
2019 793,771 138,289 932,060
2020 - 2024 2,264,250 439,567 2,703,817
2025 - 2029 1,594,508 194,292 1,788,800
2030 - 2032 745,497 28,830 774,327
Total $ 8,643,555 $ 1,572,365 $ 10,215,920
Business-Type Activities: Rink
Year Ending Principal Interest
June 30, Balance Balance Total
2015 $ 8,000 $ 980 $ 8,980
2016 8,000 780 8,780
2017 6,000 540 6,540
2018 6,000 360 6,360
2019 6,000 180 6,180
Total $ 34,000 $ 2,840 $ 36,840
Town of Canton, Massachusetts Page 67 of 119 Comprehensive Annual Financial ReportSource page 138
III. Other Information
A. Retirement System
Retirement System Description – The Town contributes to the Norfolk County Retirement System
(the “System”), a multiple-employer defined benefit pension plan established under Chapter 32 of
the Commonwealth of Massachusetts General Laws (MGL) and is administered by Norfolk
County Retirement Board (the “Board”).
The System provides retirement, disability and death benefits to plan members and beneficiaries.
Chapter 32 of the MGL assigns authority to establish and amend benefit provisions of the plan.
Cost-of-living adjustments granted between 1981 and 1997 and any increase in other benefits
imposed by the Commonwealth’s state law during those years are borne by the Commonwealth
and are deposited into the pension fund directly. Cost-of-living adjustments granted after 1997
must be approved by the Board and are borne by the System. The System issues a publicly
available unaudited financial report in accordance with guidelines established by the
Commonwealth of Massachusetts’ Public Employee Retirement Administration Commission
(PERAC) that includes financial statements and required supplementary information. The report
may be obtained by writing to the Norfolk County Retirement System, 480 Neponset Street,
Canton, MA 02021.
Funding Policy – Plan members are required to contribute to the System at rates ranging from 5%
to 11% of annual covered compensation. The Town is required to pay into the System for its
share of the system-wide actuarial determined contribution that is apportioned among the
employers based on active current payroll. The contributions of plan members and the Town are
governed by Chapter 32 of the MGL. The Town’s contributions to the System for the fiscal years
ended June 30, 2014, 2013, and 2012 were $3,169,146, $3,041,784, and $2,957,615 respectively,
which equaled its required contribution for each year. Schedules of funding progress and
contribution funding are included as required supplementary information.
B. Massachusetts Teachers’ Retirement System
Teachers and certain administrative employees of the School Department participate in a
contributory retirement system administered by the Massachusetts Teachers Retirement Board.
Contributions to that system totaled $8,712,743 for the fiscal year and were made entirely by the
Commonwealth of Massachusetts, on behalf of the Town, which does not contribute directly to
this system.
C. Other Postemployment Benefits (OPEB)
Plan Description – The Town administers a single-employer defined benefit healthcare plan (the
“Plan”). The Plan provides health and life insurance benefits to current and future retirees, their
dependents and beneficiaries in accordance with Massachusetts General Law Chapter 32B.
Specific benefit provisions and contribution rates are established by collective bargaining
agreements, state law, and Town ordinance. All benefits are provided through the Town’s self-
funded insurance program described previously. The Plan does not issue a stand–alone financial
report. The number of participants in the Plan consists of 630 active employees and 569 retired
employees for a total of 1,199.
Funding Policy – The contribution requirements of Plan members and the Town are established
and may be amended by the Town, through negotiation with the Town employee unions.
Town of Canton, Massachusetts Page 68 of 119 Comprehensive Annual Financial ReportSource page 139
Retirees contribute 25 percent of the calculated contribution through pension benefit deductions.
The remainder of the cost is funded by the Town. The Town currently contributes enough money
to the Plan to satisfy current obligations on a pay-as-you-go basis. The costs of administering the
Plan are paid by the Town.
Annual OPEB Cost and Net OPEB Obligation – The Town’s annual OPEB cost is calculated
based on the annual required contribution “ARC” of the employer, an actuarially determined
amount that is calculated in accordance with GASB Statement number 45. The ARC represents
a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year
and amortize any unfunded liabilities over a period not to exceed thirty years. The following
table reflects the activity regarding the Town’s OPEB obligation:
Annual required contribution (ARC) $ 13,072,909
Interest on net OPEB obligation 1,511,684
Adjustment to ARC (1,648,632)
Annual OPEB cost 12,935,961
Contributions made $ (5,179,872)
Increase in net OPEB obligation 7,756,089
Net OPEB obligation at beginning of year 35,992,480
Net OPEB obligation at end of year $ 43,748,569
Trend information regarding annual OPEB cost, the percentage of the annual OPEB cost
contributed and the net OPEB obligation is as follows:
Annual OPEB Percentage of
Fiscal Year Cost AOPEBC Net OPEB
Ending (AOPEBC) Contributed Obligation
June 30, 2012 $ 12,639,000 35% $ 28,323,000
June 30, 2013 $ 12,195,272 37% $ 35,992,480
June 30, 2014 $ 12,935,961* 40% $ 43,748,569
* Reflected in the Statement of Activities as follows:
The AOPEBC at June 30, 2014 was charged to the following functional programs: General
Government $528,049; Public Safety $2,582,237; Education $8,391,845; Public Works $564,212;
Health and Human Services $164,395; Culture and Recreation $385,632; Water $192,004; Sewer
$87,088; and Rink $40,499.
Funding Status and Funding Progress – The funded status of the Plan at June 30, 2014, based on
the most recent actuarial valuation performed as of January 1, 2013, was as follows (in millions):
Town of Canton, Massachusetts Page 69 of 119 Comprehensive Annual Financial ReportSource page 140
Actuarial
Accrued
Liability UAAL as a
Actuarial (AAL) Entry Unfunded Percentage
Value of Age Normal AAL Funded Covered of Covered
Assets Cost (UAAL) Ratio Payroll Payroll
(A) (B) (B – A) (A/B) (C) ((B-A)/C)
$ 0.1 $142.8 $142.7 0.07% $36.5 391%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events into the future. Amounts determined
regarding the funded status of the Plan and the ARC of the employer are subject to continual
revision as estimates are compared to actual results and past expectations. The schedules of
funding progress, presented as required supplementary information (RSI) following the notes to
the financial statements, present multi-year trend information about whether the actuarial values
of plan assets are increasing or decreasing over time relative to the AAL for benefits.
Methods and Assumptions – Projections of benefits for financial reporting purposes are based on
the substantive Plan and include the types of benefits provided at the time of each valuation and
the historical pattern of sharing of benefit costs between the employer and the Plan members to
that point. The actuarial methods and assumptions used include techniques that are designed to
reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations. The significant methods and
assumptions as of the latest valuation are as follows:
Valuation date: January 1, 2013
Actuarial cost method Projected Unit Credit
Amortization method Level percent of pay, 3% increasing
Remaining amortization period: 26 years as of January 1, 2013 (closed)
Interest discount rate: 4.2 percent
Inflation rate: 3.0 percent
Healthcare/Medical cost trend rate: 9 percent grading down to 5 percent in year 2020 and
thereafter
D. Risk Financing
The Town is exposed to various risks of loss related to torts: theft of, damage to and destruction
of assets; errors and omissions; and natural disasters for which the Town carries commercial
insurance. The amount of claim settlements has not exceeded insurance coverage in any of the
previous three years.
Group Health Insurance Plan – The Town maintains a "reinsured cost reimbursement program"
which covers the group health and dental insurance requirements of the Town employees. The
Plan is essentially a self-insurance program and employee claims in excess of $100,000 are
reinsured by the Plan. The Plan allows employees to participate in a Health Maintenance
Organization (HMO) or Preferred Provider Organization (PPO). The Town reimburses the costs
of the HMO and PPO 75 percent. The Town accrues an amount representing claims incurred but
not reported (IBNR), which is based on historical claims paid averages for the twelve months
prior to fiscal year end. At June 30, 2014, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $938,586. This liability is the best estimate based on
Town of Canton, Massachusetts Page 70 of 119 Comprehensive Annual Financial ReportSource page 141
available information. In the fund-wide financial statements, the Town reports the activities of
the Group Insurance Health Plan in the Internal Service Fund where revenues are recorded when
earned and expenses are recorded when the liability is incurred. Changes in the reported liability
since July 1, 2012, are as follows:
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2014 $ 912,916 $ 14,753,120 $(14,727,450) $ 938,586 $ 938,586
Fiscal Year 2013 684,000 14,435,304 (14,206,388) 912,916 912,916
Workers’ Compensation – The Town is also self-insured for their workers’ compensation
activities which are accounted for in the Internal Service Fund. Workers’ compensation claims
are administered by a third-party and are funded on a pay-as-you-go basis from annual
appropriations. The Town is premium based for all claims after July 1, 2008. The Town
purchases individual stop loss insurance in excess of the coverage provided in the amount of
$300,000. The estimated future workers’ compensation liability is not material at June 30, 2014,
and is therefore not reported.
E. Commitments
The Town has entered or is planning to enter into contracts for various projects for which it has
authorized approximately $7.0 million in debt.
F. Contingencies
The Town is party to other certain legal claims, which are subject to many uncertainties, and the
outcome of individual litigation matters in these situations cannot be reasonably estimated.
Although the amount of liability, if any, in these situations at June 30, 2014, cannot be
ascertained, management believes that the resulting liability, if any, should not materially affect
the basic financial statements of the Town at June 30, 2014. Other amounts received or
receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the Town
expects such amounts, if any, to be immaterial.
The Town is subject to certain Federal arbitrage laws in accordance with long-term borrowing
agreements. Failure to comply with the rules could result in the payment of penalties. The Town
does not believe it has failed to comply with any of these agreements.
G. Landfill Closure and Post-Closure Care Costs
The Town’s landfill is closed and a final cover has been installed in accordance with Federal and
State laws and regulations. Those laws and regulations also require the Town to perform certain
maintenance and monitoring functions (“post-closure care”) at the site for 30 years after the
landfill cover is installed. In accordance with generally accepted accounting principles, the
estimated remaining cost of monitoring; $104,000 has been recorded as a governmental activities
liability; actual costs may be higher due to inflation, changes in technology, or changes in
regulations.
Town of Canton, Massachusetts Page 71 of 119 Comprehensive Annual Financial ReportSource page 142
H. Implementation of GASB pronouncements
Current Year Implementations –
In March 2012, the GASB issued GASB Statement No. 65, Items Previously Reported as Assets
and Liabilities. This Statement establishes accounting and financial reporting standards that
reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that
were previously reported as assets and liabilities and recognizes, as outflows of resources or
inflows of resources, certain items that were previously reported as assets and liabilities. This
Statement also provides other financial reporting guidance related to the impact of the financial
statement elements deferred outflows of resources and deferred inflows of resources, such as
changes in the determination of the major fund calculations and limiting the use of the term
deferred in financial statement presentations. The provisions of GASB 65 became effective for
the Town in fiscal year 2014 and did not have a material effect on its financial statements.
In March 2012, the GASB issued GASB Statement No. 66, an amendment of GASB Statements
No. 10 and No. 62. The objective of this Statement is to improve accounting and financial
reporting for a governmental financial reporting entity by resolving conflicting guidance that
resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting
and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
The provisions of GASB 66 became effective for the Town in fiscal year 2014 and did not have a
material effect on its financial statements.
In April 2013, the GASB issued GASB Statement No. 70, Accounting and Financial Reporting
for Nonexchange Financial Guarantees. The objective of GASB 70 is to improve accounting and
financial reporting by governments that extend and receive nonexchange financial guarantees.
The provisions of GASB 70 became effective for the Town in fiscal year 2014 and did not have a
material effect on its financial statements.
Future Implementations –
In June 2012, the GASB issued GASB Statement No. 67, Financial Reporting for Pension Plans.
This Statement replaces the requirements of Statement No. 25, Financial Reporting for Defined
Benefit Pension Plans and Note Disclosures for Defined Contribution Plans and Statement 50 as
they relate to pension plans that are administered through trusts or similar arrangements meeting
certain criteria. This Statement builds upon the existing framework for financial reports of
defined benefit pension plans, which includes a statement of fiduciary net position (the amount
held in a trust for paying retirement benefits) and a statement of changes in fiduciary net position.
Statement 67 enhances note disclosures and RSI for both defined benefit and defined contribution
pension plans. Statement 67 also requires the presentation of new information about annual
money-weighted rates of return in the notes to the financial statements and in 10-year RSI
schedules. The provisions of GASB 67 become effective for the Norfolk County Retirement
System as of December 31, 2014 and the correlative impact will be reflected by the Town in
fiscal year 2015 through GASB 68 (see below). The Town believes the adoption of this statement
will have a material effect on the financial statements.
In June 2012, the GASB issued GASB Statement No. 68, Accounting and Financial Reporting
for Pensions — an amendment of GASB Statement No. 27. Statement 68 replaces the
requirements of Statement No. 27, Accounting for Pensions by State and Local Governmental
Town of Canton, Massachusetts Page 72 of 119 Comprehensive Annual Financial ReportSource page 143
Employers and Statement No. 50, Pension Disclosures, as they relate to governments that provide
pensions through pension plans administered as trusts or similar arrangements that meet certain
criteria. Statement 68 requires governments providing defined benefit pensions to recognize their
long-term obligation for pension benefits as a liability for the first time, and to more
comprehensively and comparably measure the annual costs of pension benefits. The Statement
also enhances accountability and transparency through revised and new note disclosures and
required supplementary information. The provisions of this Statement are effective for financial
statements for periods beginning after June 15, 2014 (fiscal year 2015). The Town believes the
adoption of this statement will have a material impact on the financial statements.
In January 2013, the GASB issued GASB Statement No. 69, Government Combinations and
Disposals of Government Operations. GASB 69 established accounting and financial reporting
standards to government combinations and disposals of government operations. The provisions
of this Statement are effective for financial reporting periods beginning after December 15, 2013
(fiscal year 2015). The Town is currently evaluating whether adoption will have a material
impact on the financial statements.
In November 2013, the GASB issued GASB Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement
No. 68. The objective of GASB 71 is to address an issue regarding application of the transition
provisions of GASB 68. The issue relates to amounts associated with contributions, if any, made
by a state or local government employer or nonemployer contributing entity to a defined pension
plan after the measurement date of the government’s beginning net pension liability. The
provisions of this Statement are effective for financial statements for periods beginning after June
15, 2014 (fiscal year 2015). The Town is currently evaluating whether adoption will have a
material impact on the financial statements.
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Required Supplementary Information Town of Canton, Massachusetts Page 75 of 119 Comprehensive Annual Financial Report
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TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2014
SCHEDULES OF FUNDING PROGRESS
Pension System - Norfolk County Contributory Retirement System
UAAL as a
Actuarial Actuarial Actuarial Unfunded Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (AAL) (UAAL) Ratio Payroll Payroll
(a) (b) (b-a) (a/b) (c) ((b-a)/c)
1/1/2014 $ 696,682,779 $ 1,247,596,772 $ 550,913,993 55.8% $ 246,722,941 223.3%
1/1/2012 608,235,096 1,128,960,288 520,725,192 53.9% 229,095,409 227.3%
1/1/2010 600,790,835 1,001,881,055 401,090,220 60.0% 223,332,595 179.6%
1/1/2008 596,157,147 907,719,124 311,561,977 65.7% 223,814,977 139.2%
1/1/2007 533,077,948 855,677,413 322,599,465 62.3% 219,620,865 146.9%
1/1/2005 467,186,566 762,900,650 295,714,084 61.2% 196,639,163 150.4%
Other Postemployment Benefits
UAAL as a
Actuarial Actuarial Actuarial Unfunded Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (AAL) (UAAL) Ratio Payroll Payroll
(a) (b) (b-a) (a/b) (c) ((b-a)/c)
1/1/2013 $ 100,000 $ 142,752,366 142,652,366 0.07% $ 36,479,000 391.1%
1/1/2011 - 130,885,254 130,885,254 0% 34,416,000 380.3%
1/1/2009 - 138,978,486 138,978,486 0% 32,236,000 431.1%
SCHEDULES OF CONTRIBUTION FUNDING
Pension System
Norfolk County Contributory Retirement System Town
Annual Town's Percentage
Year Ended Required Actual Percentage Actual of System-Wide
June 30, Contributions Contributions Contributed Contribution Actual Contributions
(a) (b) (b/a)
2014 $ 44,800,000 $ 44,800,000 100% $ 3,169,146 7.07%
2013 42,714,639 42,714,639 100% 3,041,784 7.12%
2012 41,206,587 41,206,587 100% 2,957,615 7.18%
2011 39,749,857 39,749,857 100% 2,992,977 7.53%
2010 41,242,373 41,242,373 100% 2,826,638 6.85%
2009 38,920,499 38,920,499 100% 2,672,418 6.87%
Other Postemployment Benefits
Annual
Year Ended OPEB Actual Percentage
June 30, Cost Contributions Contributed
2014 $ 12,935,961 $ 5,179,872 40%
2013 12,195,572 4,526,092 37%
2012 12,639,000 4,457,000 35%
2011 11,610,000 4,262,000 37%
2010 11,431,000 4,842,000 42%
2009 10,717,000 4,413,000 41%
The Town implemented GASB Statement No. 45 for the fiscal year ending June 30, 2009. Information from prior years is unavailable.
See accompanying independent auditors' report.
Town of Canton, Massachusetts Page 77 of 119 Comprehensive Annual Financial ReportSource page 148
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 60,697,486 $ 60,697,486 $ 61,389,516 61,389,516 692,030
Tax title - - 782,539 782,539 782,539
Payments in lieu of taxes 214,543 214,543 214,543 214,543 -
Motor vehicle excise 3,000,000 3,000,000 3,714,753 3,714,753 714,753
Meals taxes 250,000 250,000 322,256 322,256 72,256
Room occupancy excise 200,000 200,000 246,061 246,061 46,061
64,362,029 64,362,029 66,669,668 - 66,669,668 2,307,639
Intergovernmental:
State aid - chapter 70 4,751,687 4,751,687 4,751,687 4,751,687 -
State aid - charter school 16,066 16,066 36,456 36,456 20,390
State aid - unrestricted 1,856,687 1,856,687 1,856,687 1,856,687 -
State aid - veterans 123,322 123,322 129,968 129,968 6,646
State aid - exemptions 152,121 152,121 232,205 232,205 80,084
State aid - state owned land 152,912 152,912 152,912 152,912 -
State aid - other 250,000 250,000 301,333 301,333 51,333
Federal disaster aid - - 251,643 251,643 251,643
MSBA school construction reimbursement 456,305 456,305 456,305 456,305 -
7,759,100 7,759,100 8,169,196 - 8,169,196 410,096
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 34,650 - 34,650 (5,350)
Public safety detail fees 30,000 30,000 38,014 - 38,014 8,014
Other departmental fees 80,000 80,000 105,004 - 105,004 25,004
Rental of municipal property 200,000 200,000 218,135 - 218,135 18,135
Conservation department revenues 35,000 35,000 45,371 - 45,371 10,371
Solar revenues 150,000 150,000 413,585 - 413,585 263,585
Other departmental revenues 40,000 40,000 96,108 - 96,108 56,108
575,000 575,000 950,867 - 950,867 375,867
Licenses and permits:
Alcohol licenses 65,000 65,000 72,915 - 72,915 7,915
Other licenses 70,000 70,000 94,133 - 94,133 24,133
Building permits 425,000 425,000 485,673 - 485,673 60,673
Other permits 100,000 100,000 165,108 - 165,108 65,108
660,000 660,000 817,829 - 817,829 157,829
Fines and forfeitures:
Motor vehicle fines 80,000 80,000 126,455 - 126,455 46,455
Other fines 20,000 20,000 14,856 - 14,856 (5,144)
100,000 100,000 141,311 - 141,311 41,311
Penalties and interest on taxes 250,000 250,000 344,012 - 344,012 94,012
Interest and investment income 75,000 75,000 91,250 - 91,250 16,250
Total Revenues 73,781,129 73,781,129 77,184,133 - 77,184,133 3,403,004
Town of Canton, Massachusetts Page 78 of 119 Comprehensive Annual Financial ReportSource page 149
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,253,162 1,318,162 1,315,742 2,271 1,318,013 149
Executive Branch articles 76,238 16,438 327 16,111 16,438 -
Commitees and Commissions 33,038 33,038 18,651 - 18,651 14,387
Reserve Fund 500,000 287,000 - - - 287,000
Finance Department 969,536 969,536 904,213 65,133 969,346 190
Fianance Department Articles 187,000 187,000 163,404 23,254 186,658 342
Assessors 225,801 225,801 225,640 - 225,640 161
Assessors Articles 120,000 120,000 120,000 - 120,000 -
Town Clerk & Elections 210,537 210,537 198,974 1,600 200,574 9,963
Town Clerk & Elections articles 42,500 42,500 - 42,500 42,500 -
Conservation Commission 89,068 89,068 88,653 - 88,653 415
Planning Board 59,125 59,125 52,676 4,800 57,476 1,649
Town Insurance 877,950 924,950 910,457 - 910,457 14,493
Total General Government 4,643,955 4,483,155 3,998,737 155,669 4,154,406 328,749
Public Safety
Fire Department 4,764,368 4,917,844 4,916,136 1,200 4,917,336 508
Fire Department articles 45,000 45,000 42,646 2,354 45,000 -
Police Department 4,331,128 4,361,128 4,360,271 496 4,360,767 361
Police Department articles 178,911 238,711 99,350 139,361 238,711 -
Building & Zoning 337,923 337,924 326,348 - 326,348 11,576
Total Public Safety 9,657,330 9,900,607 9,744,751 143,411 9,888,162 12,445
Education:
School 33,385,589 33,462,609 33,461,659 950 33,462,609 -
School Articles 482,751 482,751 412,354 69,277 481,631 1,120
Blue Hill Regional 1,059,042 1,059,042 1,059,042 - 1,059,042 -
Norfolk County Agricultural HS 10,000 10,000 8,589 - 8,589 1,411
Total Education 34,937,382 35,014,402 34,941,644 70,227 35,011,871 2,531
Public Works:
Public Works 2,068,193 2,080,192 2,073,536 6,003 2,079,539 653
Public Works Articles 159,623 159,623 145,859 12,431 158,290 1,333
Street Lighting 159,137 159,137 106,204 3,074 109,278 49,859
Snow & Ice 364,735 850,329 839,895 - 839,895 10,434
Trash Collection 1,455,117 1,490,789 1,483,863 6,875 1,490,738 51
Total Public Works 4,206,805 4,740,070 4,649,357 28,383 4,677,740 62,330
Health and Human Services:
Health Department 331,760 331,760 314,635 - 314,635 17,125
Health Department Articles - - - - - -
Council on Aging 217,870 217,870 217,509 - 217,509 361
Veteran's Services 218,930 262,256 261,593 - 261,593 663
Total Health and Human Services 768,560 811,886 793,737 - 793,737 18,149
(continued)
Town of Canton, Massachusetts Page 79 of 119 Comprehensive Annual Financial ReportSource page 150
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2014
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 467,277 492,277 491,383 591 491,974 303
Recreation & Playground Articles 79,973 114,973 100,564 14,248 114,812 161
Public Library 1,111,874 1,111,874 1,085,902 - 1,085,902 25,972
Public Library Articles 64,612 64,612 24,771 38,612 63,383 1,229
Total Culture and Recreation 1,723,736 1,783,736 1,702,620 53,451 1,756,071 27,665
Pension Benefits: 3,212,846 3,212,846 3,202,606 - 3,202,606 10,240
Employee Benefits:
Unemployment Compensation 150,000 150,000 150,000 - 150,000 -
Employer Share- Health 10,498,160 10,498,160 10,473,152 - 10,473,152 25,008
Employer Share- Life 60,000 60,000 58,289 - 58,289 1,711
Employer Share- OPEB 400,000 400,000 400,000 - 400,000 -
Total Employee Benefits 11,108,160 11,108,160 11,081,441 - 11,081,441 26,719
State and County Charges: 945,652 958,652 959,868 - 959,868 (1,216)
Debt Service: 6,050,134 6,140,398 6,140,398 - 6,140,398 -
Total Expenditures 77,254,560 78,153,912 77,215,159 451,141 77,666,300 487,612
Other Financing Sources (Uses)
Premium from debt issurance - - 351,317 351,317 351,317
Transfers in 2,223,581 2,452,057 2,458,532 2,458,532 6,475
Transfers out (127,800) (1,507,902) (1,507,902) (1,507,902) -
Total Other Financing Sources (Uses) 2,095,781 944,155 1,301,947 $ 1,301,947 357,792
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (1,377,650) (3,428,628) $ 1,270,921 $ 4,248,408
Other Budgetary Items
Use of unassigned fund balance $ 35,000 $ 2,085,978
Amortization of MSBA excess 550,537 550,537
Prior year encumbrances 796,643 796,643
Other amounts (4,530) (4,530)
Total Other Budgetary Items 1,377,650 3,428,628
Net budget and actual $ - $ -
(Concluded)
The notes to the financial statements are an integral part of this statement.
The notes to the required supplementary information are and integral part of this statement.
Town of Canton, Massachusetts Page 80 of 119 Comprehensive Annual Financial ReportSource page 151
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2014
I. Budgetary Basis of Accounting
Budgetary Information – An annual budget is legally adopted for the General Fund and the Enterprise
Fund. The budget is recommended by the Finance Committee and approved by Town Meeting at the
Town’s annual meeting in May. Changes subsequent to the approved Town Meeting budget require
majority Town Meeting approval at a Special Town Meeting. Expenditures may not legally exceed
appropriations at the department level. Department heads may transfer, without Town Meeting
approval, appropriation balances from one account to another within their department or budget, and
within the categories of salaries and expenses. At the close of each fiscal year, unencumbered
appropriation balances lapse and revert to unassigned fund balance.
The Town adopts an annual budget for the general fund in conformity with the guidelines described
above. During fiscal year 2014, Town Meeting approved various supplemental budgetary
appropriations which resulted in a net increase of approximately $2,300,000 from the original voted
budget. These appropriations were utilized for public safety ($200,000), snow and ice removal costs
($500,000), increased stabilization reserves ($500,000) and dam repairs ($900,000).
The Town Accountant has the responsibility to ensure that budgetary control is maintained in the
manner in which the appropriations were voted by Town Meeting. Budgetary control is exercised
through the Town’s accounting system.
Budgetary-to-GAAP Reconciliation – The Town’s general fund is prepared on a basis of accounting
other than GAAP. A reconciliation of the budgetary-basis to GAAP-basis results for the General Fund
for the fiscal year ended June 30, 2014, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 77,184,133
Stabilization revenue $ - $ 53,886 53,886
Change in accruing revenues to GAAP basis (3,109) - (3,109)
Change in recording tax refunds payable (323,000) - (323,000)
On behalf payments 8,712,743 - 8,712,743
Revenues on a GAAP basis $ 8,712,743 $ - $ 85,624,653
Expenditures on a budgetary basis $ 77,215,159
Costs from refunding transactions $ 256,777 $ - 256,777
On behalf payments 8,712,743 - 8,712,743
Expenditures on a GAAP basis $ 8,712,743 $ - $ 86,184,679
Other financing sources (uses) on a budgetary basis $ 1,301,947
Refunding transactions $ (4,352,926) $ - (4,352,926)
Stabilization transfers - 410,000 410,000
Other financing sources (uses) on a GAAP basis $ - $ 410,000 $ (2,640,979)
Appropriation Deficits – During fiscal year 2014, expenditures exceeded appropriations in the General
Fund for state and county assessments, which were funded from available funds.
Town of Canton, Massachusetts Page 81 of 119 Comprehensive Annual Financial ReportSource page 152
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Source page 153
Combining Statements Town of Canton, Massachusetts Page 83 of 119 Comprehensive Annual Financial Report
Source page 154
Nonmajor Governmental Funds
Narrative
Special Revenue Funds –
Special revenue funds are used to account for certain revenue generating activities that are legally and/or
programmatically restricted to expenditures for a specific purpose. From the Town’s financial ledgers,
these activities can be distinctly categorized into the following groupings:
School Lunch – This segregated revolving fund accounts for the activities of the child nutrition programs;
amounts collected from services include federal and state meal reimbursements and meal charges.
Private Grants – This fund accounts for grant funds received from private organizations that are to be
used to fund various governmental programs.
Town Revolving – This fund accounts for the non-school related activity within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes.
School Revolving – This fund accounts for educational-based activities within revolving funds established
in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71.
Recreation – This fund accounts for self-supporting recreation programs and activities.
Ambulance – This fund accounts for the fees generated by the operations of the fire department’s
ambulance service that are used to fund specific operating costs of the department.
Community Preservation – This fund accounts for assets that are restricted by state law for the purposes
of acquiring or developing open space and recreational facilities, historic resources and affordable
housing.
Town Grants – This fund accounts for non-school grant programs received either directly from federal
and state agencies or indirectly through pass-through entities.
School Grants – This fund accounts for educational-based grant programs received either directly from
federal and state agencies or indirectly through pass-through entities.
Roadway Improvements – This fund accounts for certain roadway improvement projects which are fully
reimbursed by the Commonwealth of Massachusetts.
Other Departmental – This fund accounts for activity of donated funds, public safety details, and other
restricted funds used to support governmental programs.
Town of Canton, Massachusetts Page 84 of 119 Comprehensive Annual Financial ReportSource page 155
Capital Projects Funds –
Capital project funds are used to account for the overall financial activities related to the acquisition,
renovation, or construction of significant capital assets, excluding those associated with business-type
funds. Significant project activities can be categorized as:
Building Improvements – This fund accounts for specific building acquisition and construction activities.
Public Works Improvements – This funds accounts for specific roadway, drainage and landfill
improvements that are not funded by the Commonwealth.
Equipment – This funds accounts for equipment acquisitions for various Town activities.
High School Construction – This fund accounts for the residual funds of the new Canton High School
construction project.
Permanent Funds –
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support governmental programs.
Cemetery Trust Funds – This fund accounts for contributions earmarked for the perpetual care and
maintenance of cemetery facilities and property.
Library Trust Funds – This fund accounts for contributions earmarked for the support of the Town’s
library.
Other Municipal Trust Funds – This fund accounts for all contributions including: gifts, donations and
bequests for which only earnings on the original trust corpus may be expended to benefit government
approved programs, other than those associated with cemetery and library activities.
Town of Canton, Massachusetts Page 85 of 119 Comprehensive Annual Financial ReportSource page 156
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2014
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 305,917 $ 1,848,195 $ 428,566 $ 1,264,616 $ 139,871
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 26,195 - - - -
Total Assets $ 332,112 $ 1,848,195 $ 428,566 $ 1,264,616 $ 139,871
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 34,183 $ 820 $ 8,115 $ 1,314 $ 6,634
Accrued payroll and withholdings 32,390 - 231 21,696 3,900
Retainage payable - - - - -
Due to other funds - - - - -
Bond anticipation notes payable - - - - -
Total Liabilities 66,573 820 8,346 23,010 10,534
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 265,539 1,847,375 420,220 1,241,606 129,337
Unassigned - - - - -
Total Fund Balances 265,539 1,847,375 420,220 1,241,606 129,337
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 332,112 $ 1,848,195 $ 428,566 $ 1,264,616 $ 139,871
Town of Canton, Massachusetts Page 86 of 119 Comprehensive Annual Financial ReportSource page 157
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ 1,098,829 $ 476,812 $ 969,190 $ 358,892 $ - $ 1,544,765 $ 8,435,653
- - - - - - -
- 3,485 - - - - 3,485
- 1,986 - - - - 1,986
261,071 - - - - 117,117 378,188
- - 9,319 274,830 55,860 - 366,204
$ 1,359,900 $ 482,283 $ 978,509 $ 633,722 $ 55,860 $ 1,661,882 $ 9,185,516
$ - $ - $ 17,317 $ 14,795 $ 8,694 $ 9,779 $ 101,651
- 191 918 96,437 5,428 18,641 179,832
- - - - - - -
- - - - 39,618 - 39,618
- - - - - - -
- 191 18,235 111,232 53,740 28,420 321,101
- 5,471 - - - - 5,471
261,071 - - - - 117,117 378,188
261,071 5,471 - - - 117,117 383,659
- - - - - - -
1,098,829 476,621 1,120,411 522,490 2,120 1,654,851 8,779,399
- - (160,137) - - (138,506) (298,643)
1,098,829 476,621 960,274 522,490 2,120 1,516,345 8,480,756
$ 1,359,900 $ 482,283 $ 978,509 $ 633,722 $ 55,860 $ 1,661,882 $ 9,185,516
(Continued)
Town of Canton, Massachusetts Page 87 of 119 Comprehensive Annual Financial ReportSource page 158
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2014
Capital Project Funds
Public High Sub-total
Building Works School Capital Project
Improvements Improvements Equipment Construction Funds
Assets:
Cash and cash equivalents $ 1,892,937 $ 961,731 $ 828,448 $ 2 $ 3,683,118
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 327,103 - - - 327,103
Total Assets $ 2,220,040 $ 961,731 $ 828,448 $ 2 $ 4,010,221
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 460,864 $ - $ 1,999 $ - $ 462,863
Accrued payroll and withholdings 120 - - - 120
Retainage payable 22,779 - - - 22,779
Due to other funds - - - - -
Bond anticipation notes payable 995,950 190,000 800,000 - 1,985,950
Total Liabilities 1,479,713 190,000 801,999 - 2,471,712
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 1,629,512 771,731 26,449 2 2,427,694
Unassigned (889,185) - - - (889,185)
Total Fund Balances 740,327 771,731 26,449 2 1,538,509
Total Liabilities and Fund Balances $ 2,220,040 $ 961,731 $ 828,448 $ 2 $ 4,010,221
Town of Canton, Massachusetts Page 88 of 119 Comprehensive Annual Financial ReportSource page 159
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
$ 18,987 $ 180,962 $ 25,754 $ 225,703 $ 12,344,474
403,356 - 141,178 544,534 544,534
- - - - 3,485
- - - - 1,986
- - - - 378,188
- - - - 693,307
$ 422,343 $ 180,962 $ 166,932 $ 770,237 $ 13,965,974
$ - $ - $ - $ - $ 564,514
- - - - 179,952
- - - - 22,779
- - - - 39,618
- - - - 1,985,950
- - - - 2,792,813
- - - - 5,471
- - - - 378,188
- - - - 383,659
398,997 21,553 12,235 432,785 432,785
23,346 159,409 154,697 337,452 11,544,545
- - - - (1,187,828)
422,343 180,962 166,932 770,237 10,789,502
$ 422,343 $ 180,962 $ 166,932 $ 770,237 $ 13,965,974
(Concluded)
Town of Canton, Massachusetts Page 89 of 119 Comprehensive Annual Financial ReportSource page 160
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2014
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Revenues:
Property taxes $ - $ - $ - $ - $ -
Intergovernmental 276,940 - 17,455 - -
Charges for services 722,340 - - - -
Departmental and other - - 202,102 1,763,917 285,957
Investment income 896 - - - 228
Contributions and donations - 1,350,000 16,716 - -
Total Revenues 1,000,176 1,350,000 236,273 1,763,917 286,185
Expenditures:
Current:
General government - 108,548 690 - -
Public safety - - 8,779 - -
Education 916,105 - - 1,463,596 -
Public works - - - - -
Health and human services - - 57,275 - -
Culture and recreation - - 35,950 - 247,600
Employee benefits - - - - -
Total Expenditures 916,105 108,548 102,694 1,463,596 247,600
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 84,071 1,241,452 133,579 300,321 38,585
Other Financing Sources (Uses):
Proceeds from bonds and notes - - - - -
Transfers in - - - - -
Transfers out (102,224) - (40,000) (707) -
Total Other Financing Sources (Uses) (102,224) - (40,000) (707) -
Net Change in Fund Balances (18,153) 1,241,452 93,579 299,614 38,585
Fund Balances - Beginning of Year 283,692 605,923 326,641 941,992 90,752
Fund Balances - End of Year $ 265,539 $ 1,847,375 $ 420,220 $ 1,241,606 $ 129,337
Town of Canton, Massachusetts Page 90 of 119 Comprehensive Annual Financial ReportSource page 161
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ - $ 480,994 $ - $ - $ - $ - $ 480,994
- - 406,334 2,097,757 396,387 - 3,194,873
858,589 - - - - - 1,580,929
- 364 - - - 870,263 3,122,603
- 514 9,092 - - 1,471 12,201
- - - - - 735,270 2,101,986
858,589 481,872 415,426 2,097,757 396,387 1,607,004 10,493,586
- 5,251 1,800 - - 18,477 134,766
- - 211,775 - - 806,875 1,027,429
- - - 2,288,002 - 220,736 4,888,439
- - - - 396,387 - 396,387
- - 41,591 - - - 98,866
- - 12,302 - - - 295,852
- - - - - 71,267 71,267
- 5,251 267,468 2,288,002 396,387 1,117,355 6,913,006
858,589 476,621 147,958 (190,245) - 489,649 3,580,580
- - - - - - -
- - - - - 80,000 80,000
(935,456) - - (5,768) - (606,499) (1,690,654)
(935,456) - - (5,768) - (526,499) (1,610,654)
(76,867) 476,621 147,958 (196,013) - (36,850) 1,969,926
1,175,696 - 812,316 718,503 2,120 1,553,195 6,510,830
$ 1,098,829 $ 476,621 $ 960,274 $ 522,490 $ 2,120 $ 1,516,345 $ 8,480,756
(Continued)
Town of Canton, Massachusetts Page 91 of 119 Comprehensive Annual Financial Report