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2009 Comprehensive Annual Financial Report (PDF)
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Source page 41
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30, 2009
Private
Purpose Agency
Trust Funds Fund
ASSETS
CURRENT:
Cash and cash equivalents……………………………………$ 47,159 $ 789,590
Investments…………………………………………………… 46,581 -
TOTAL ASSETS…………………………………………………… 93,740 789,590
LIABILITIES
Warrants payable……………………………………………… - 16,942
Liabilities due depositors……………………………………… - 772,648
TOTAL LIABILITIES……………………………………………… - 789,590
NET ASSETS
Held in trust..…………………………………………………… $ 93,740 $ -
See notes to basic financial statements.
Town of Canton, Massachusetts 33 Comprehensive Annual Financial ReportSource page 42
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2009
Private
Purpose
Trust Funds
ADDITIONS:
Net investment income:
Investment income………………………….…………………………………………………$ 3,121
TOTAL ADDITIONS……………………………………………………………………… 3,121
DEDUCTIONS:
Educational scholarships…………………………………………………………………… 7,800
CHANGE IN NET ASSETS……………………………………………………………… (4,679)
NET ASSETS AT BEGINNING OF YEAR…………………………………………………… 98,419
NET ASSETS AT END OF YEAR……………………………………………………………… $ 93,740
See notes to basic financial statements.
Town of Canton, Massachusetts 34 Comprehensive Annual Financial ReportSource page 43
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Notes to Basic Financial Statements The accompanying basic financial statements of the Town of Canton, Massachusetts (the Town) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described herein. A. Reporting Entity The Town is located in Norfolk County in southeastern Massachusetts approximately 15 miles south of Boston. The Town was incorporated in 1797 and is governed by an elected five member Board of Selectmen, an appointed Town Administrator, and the open town meeting form of government. For financial reporting purposes, the Town has included all funds, organizations, agencies, boards, commissions and institutions. The Town has also considered all potential component units for which it is financially accountable as well as other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the basic financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the Town (the primary government) and its component units. It has been determined that the Town has no component units that require inclusion in these basic financial statements. The Town is a member of the Blue Hills Regional Technical School that provides educational services to nine area communities. This joint venture assesses each community its share of operating and debt service costs based on student population and other factors. In fiscal year 2009, Canton’s share of the operating and debt expenses was $1,253,270. There is no equity interest reported in these financial statements. Complete audited financial statements can be obtained directly from the District’s administrative office located at 800 Randolph Street, Canton, MA 02021. B. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (i.e., statement of net assets and the statement of changes in net assets) report information on all of the non-fiduciary activities of the primary government. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which are supported primarily by user fees and charges. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and displayed in a single column. Town of Canton, Massachusetts 35 Comprehensive Annual Financial Report
Source page 44
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Major Fund Criteria
Major funds must be reported if the following criteria are met:
• If the total assets, liabilities, revenues, or expenditures/expenses of an individual governmental or
enterprise fund are at least 10 percent of the corresponding element (assets, liabilities, etc.) for all
funds of that category or type (total governmental or total enterprise funds), and
• If the total assets, liabilities, revenues, or expenditures/expenses of the individual governmental
fund or enterprise fund are at least 5 percent of the corresponding element for all governmental
and enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund.
Fiduciary funds are reported by fund type.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in
the fiscal year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
The statement of activities demonstrates the degree to which the direct expenses of a particular function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include the following:
• Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment.
• Grants and contributions that are restricted to meeting the operational requirements of a particular
function or segment.
• Grants and contributions that are restricted to meeting the capital requirements of a particular function or
segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. However, the effect of interfund services provided and used between functions is not eliminated as
the elimination of these charges would distort the direct costs and program revenues reported for the functions
affected.
Town of Canton, Massachusetts 36 Comprehensive Annual Financial ReportSource page 45
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 Fund Financial Statements Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. The Town considers property tax revenues available if they are collected within 60 days after fiscal year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The general fund is the primary operating fund. It is used to account for all financial resources, except those that are required to be accounted for in another fund. The roadway improvements fund is used to account for roadway improvements for which expenditures are reimbursed 100% by the Commonwealth. The nonmajor governmental funds consist of special revenue, other capital projects and permanent funds that are aggregated and presented in the nonmajor governmental funds column on the governmental funds financial statements. The following describes the general use of these fund types: The special revenue funds are used to account for the proceeds of specific revenue sources (other than permanent funds or capital projects funds) that are restricted by law or administrative action to expenditures for specified purposes. The capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by enterprise and trust funds). The permanent fund is used to account for financial resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. Proprietary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Town of Canton, Massachusetts 37 Comprehensive Annual Financial Report
Source page 46
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The water enterprise fund is used to account for the water activities. The sewer enterprise fund is used to account for the sewer activities. The rink enterprise fund is used to account for the skating rink activities. Additionally, the following proprietary fund type is reported: Internal service funds are an accounting device used to accumulate and allocate costs internally among various functions. The Town uses internal service funds to account for health claims, workers’ compensation, unemployment claims and building insurance activities. Because these services primarily benefit governmental rather than business-type activities, they have been included within governmental activities in the government- wide financial statements. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the governmental programs. The following fiduciary fund types are reported: The private-purpose trust fund is used to account for trust arrangements that exclusively benefit individuals, private organizations, or other governments. Some of these trusts have donor restrictions and trustee policies that do not allow the endowment portion and any unrealized appreciation to be spent. The restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings. The Town’s private- purpose trust fund is primarily comprised of educational scholarships. The agency fund is used to account for assets held in a purely custodial capacity. Agency funds apply the accrual basis of accounting but do not have a measurement focus. The Town’s agency funds consist of off-duty work details, performance bonds, student activity accounts and fees collected on behalf of other governments. Government-Wide and Fund Financial Statements Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. Town of Canton, Massachusetts 38 Comprehensive Annual Financial Report
Source page 47
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 D. Cash and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. E. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of accounting. The recognition of revenue related to accounts receivable reported in the governmental funds financial statements are reported under the modified accrual basis of accounting. Real Estate, Personal Property Taxes, Tax Deferrals and Tax Liens Property taxes are levied and based on values assessed on January 1st of every year. Assessed values are established by the Board of Assessor’s for 100% of the estimated fair market value. Taxes are due on August 1st, November 1st, February 1st and May 1st and are subject to penalties and interest if they are not paid by the respective due date. Property taxes levied are recorded as receivables in the fiscal year of the levy. Tax liens are processed within the first quarter following the close of the fiscal year on delinquent properties and are recorded as receivables in the fiscal year they are processed. Real estate receivables are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Personal property taxes cannot be secured through the lien process. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Motor Vehicle Excise Taxes Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles to the Town. The tax calculation is the fair value of the vehicle multiplied by $25 per $1,000 of value. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Town of Canton, Massachusetts 39 Comprehensive Annual Financial Report
Source page 48
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 User Fees Water and Sewer fees are billed quarterly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date. Water and sewer liens are processed in June of every year and are included as a lien on the property owner’s tax bill in the following fiscal year. Water and sewer user fees, related liens, and an unbilled estimate are recorded as receivables in the fiscal year of the levy. Water and sewer user fees are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Departmental and Other Departmental and other receivables consist primarily of ambulance fees. The allowance for uncollectibles for ambulance is estimated based on historical trends and specific account analysis. Intergovernmental Various federal and state grants for operating and capital purposes are applied for and received annually. For non-expenditure driven grants, revenue is recognized as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants, revenue is recognized when the qualifying expenditures are incurred and all other grant requirements are met. These receivables are considered 100% collectible and therefore do not report an allowance for uncollectibles. F. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the government-wide and fund financial statements, and therefore are not reported. G. Capital Assets Government-Wide and Proprietary Fund Financial Statements Capital assets, which include land, land improvements, buildings, building improvements, machinery and equipment, vehicles, and infrastructure (e.g., roads, water mains, sewer mains, and similar items), are reported in the applicable governmental or business-type activity column of the government-wide financial statements. Capital assets are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. Construction period interest is capitalized on constructed capital assets except for the capital assets of the governmental activities column in the government-wide financial statements. All purchases and construction costs in excess of $25,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Town of Canton, Massachusetts 40 Comprehensive Annual Financial Report
Source page 49
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Capital assets (excluding land and construction-in-process) are depreciated on a straight-line basis. The
estimated useful lives of capital assets being depreciated are as follows:
Estimated
Useful
Life
Capital Asset Type (in years)
Land improvements…………………………… 20-50
Buildings………………………………………… 20-50
Building improvements………………………… 20-50
Machinery and equipment……………………… 3-20
Vehicles………………………………………… 5
Infrastructure…………………………………… 40-50
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset
lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the acquiring fund in the fiscal year of the purchase.
H. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may result in
amounts owed between funds.
Government-Wide Financial Statements
Any residual balances outstanding between the governmental activities and business-type activities are reported
in the statement of net assets as “internal balances”.
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual fund
statements. Receivables and payables resulting from these transactions are classified as “Due from other funds”
or “Due to other funds” on the balance sheet.
I. 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.
Government-Wide Financial Statements
Transfers between and within governmental funds and fiduciary funds are eliminated from the governmental
activities in the statement of activities. Any residual balances outstanding between the governmental activities
and business-type activities are reported in the statement of activities as “Transfers, net”.
Town of Canton, Massachusetts 41 Comprehensive Annual Financial ReportSource page 50
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 Fund Financial Statements Transfers between and within funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. J. Deferred Revenue Deferred revenue at the governmental fund financial statement level represents billed receivables that do not meet the available criterion in accordance with the current financial resources measurement focus and the modified accrual basis of accounting. Deferred revenue is recognized as revenue in the conversion to the government-wide (full accrual) financial statements. K. Net Assets and Fund Equity Government-Wide Financial Statements (Net Assets) Net assets reported as “invested in capital assets, net of related debt” 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 assets. Outstanding debt related to future reimbursements from the state’s school building program is not considered to be capital related debt. Net assets are reported as restricted when amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Net assets have been “restricted for” the following: “Permanent funds - expendable” represents the amount of realized and unrealized investment earnings of donor restricted trusts. The donor restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings that support governmental programs. “Permanent funds - nonexpendable” represents the endowment portion of donor restricted trusts that support governmental programs. “Grants and gifts” represents restrictions placed on assets from outside parties and consists primarily of gifts and federal and state grants. “MSBA Grant” represents a capital grant to fund debt service on the High School debt that will be amortized over 15 years starting in FY2010 in accordance with state governmental regulations. Fund Financial Statements (Fund Balances) Fund balances are reserved for amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Designations of fund balance represent tentative management plans that are subject to change. Fund balances have been “reserved for” the following: “Encumbrances and continuing appropriations” represents amounts obligated under purchase orders, contracts and other commitments for expenditures that are being carried over to the ensuing fiscal year. Town of Canton, Massachusetts 42 Comprehensive Annual Financial Report
Source page 51
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 “Perpetual permanent funds” represents amounts held in trust for which only investment earnings may be expended. “MSBA Grant” represents a capital grant to fund debt service on the High School debt that will be amortized over 15 years starting in FY2010 in accordance with state governmental regulations. Fund balances have been “designated for” the following: “Subsequent year’s expenditures” represents amounts appropriated for the subsequent fiscal year’s operating budget. L. Long-term debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net assets. Material bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources. Bond premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual bond proceeds received, are reported as general government expenditures. M. 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 Massachusetts General Law (MGL). Investment income from the proprietary funds is retained in the respective funds. N. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave, which will be liquidated with expendable available financial resources upon maturity of the liability, are reported as expenditures and fund liabilities. Town of Canton, Massachusetts 43 Comprehensive Annual Financial Report
Source page 52
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 O. Fund Deficits Two Capital Projects Funds, classified as non-major governmental funds, had a combined deficit balance of $1,077,000 at June 30, 2009. This deficit will primarily be funded when $1,566,000 in bond anticipation notes are converted into long-term debt. The Workers’ Compensation Fund, classified as an internal service fund, had a deficit balance of $19,927 at June 30, 2009. This deficit will be funded from contributions or other available funds in fiscal year 2010. P. Use of Estimates Government-Wide and Fund Financial Statements 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 reported amounts of the revenues and expenditures/expenses during the fiscal year. Actual results could vary from estimates that were used. Q. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. NOTE 2 – CASH 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 the trust funds are held separately from those of other funds. Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment Pool (the Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans, which are legal for the investment of funds of savings banks under the laws of the Commonwealth. The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts Municipal Depository Trust (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. Town of Canton, Massachusetts 44 Comprehensive Annual Financial Report
Source page 53
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the Town’s deposits may not be returned
to it. The Town does not have a deposit policy for custodial credit risk. At fiscal year-end, the carrying amount of
deposits totaled $23,748,915 and the bank balance totaled $25,013,052. Of the bank balance, $3,190,698 was
covered by Federal Depository Insurance, $6,308,141 was covered by the Depositors Insurance Fund,
$7,418,758 was covered by the Share Insurance Fund, $4,688,768 was collateralized and $3,406,687 was
exposed to custodial credit risk because it was uninsured and uncollateralized.
Investments
As of June 30, 2009, the Town of Canton had the following investments:
Maturity
Fair Value Under 1 Year 1-5 Years 6-10 Years Over 10 Years
Investment Type
Debt Securities:
Federal Home Loan Banks……………………$ 339,550 $ 169,775 $ 99,021 $ 29,989 $ 40,765
Federal Home Loan Mortgage Corp………… 273,084 136,542 - 136,542 -
Federal Home Loan Mortgage Corp. Gold… 6,626 3,313 - 3,313 -
Federal National Mortgage Association……… 514,050 257,025 - 222,859 34,166
Federal Farm Credit Bank…………. ………… 211,330 105,665 - - 105,665
United States Treasury Notes………………… 817,810 408,905 106,089 199,496 103,320
Total Debt Securities................................... 2,162,450 $ 1,081,225 $ 205,110 $ 592,199 $ 283,916
Other Investments:
Repurchase Agreement………………………… 2,180,000
MMDT…………………………………………… 8,368,797
Total Investments........................................$ 12,711,247
Custodial Credit Risk – Investments
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to
recover the value of its investments or collateral security that are in the possession of an outside party. The Town
has a custodial credit risk exposure of $2,162,450 because the related debt securities are uninsured, unregistered
and held by the counterparty. The investments in MMDT are not exposed to custodial credit risk because their
existence is not evidenced by securities that exist in physical or book entry form. The Town does not have an
investment policy related to custodial credit risk.
The Town’s $2,180,000 investment in a Repurchase Agreement (REPO) is held by a counterparty. The REPO is
not in the Town’s name; however, it is fully collateralized. The collateralization consists of Fannie Mae, Freddie
Mac, Ginnie Mae and Federal Home Loan Bank (FHLB) investments.
Town of Canton, Massachusetts 45 Comprehensive Annual Financial ReportSource page 54
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Interest Rate Risk
The Town does not have a formal investment policy that limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates.
Credit Risk
The Town has not adopted a formal policy related to Credit Risk. Moody’s Investors Service rated all debt
securities as AAA and MMDT is unrated.
Concentration of Credit Risk
The Town places no limit on the amount the government may invest in any one issuer. The Town has 34% of
investments in US government backed securities and 66% in MMDT.
NOTE 3 – RECEIVABLES
At June 30, 2009, receivables for the individual major and non-major governmental funds in the aggregate,
including the applicable allowances for uncollectible accounts, are as follows:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes…………$ 746,781 $ (158,628) $ 588,153
Tax liens…………………………………………… 774,417 - 774,417
Motor vehicle and other excise taxes…………… 491,420 (319,936) 171,484
Departmental and other…………………………… 761,137 (546,882) 214,255
Intergovernmental………………………………… 8,248,877 - 8,248,877
Total…………………………………………………
$ 11,022,632 $ (1,025,446) $ 9,997,186
At June 30, 2009, receivables for the proprietary funds consist of the following:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Water fees……………………………………………$ 1,205,202 $ - $ 1,205,202
Sewer fees…………………………………………… 1,148,050 - 1,148,050
Special assessments……………………………… 18,179 - 18,179
Rink Fees…………………………………………… 740 - 740
Total…………………………………………………
$ 2,372,171 $ - $ 2,372,171
Town of Canton, Massachusetts 46 Comprehensive Annual Financial ReportSource page 55
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Governmental funds report deferred revenue in connection with receivables and other assets for revenues that
are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of deferred revenue reported in the governmental funds were as follows:
Other
General Governmental
Fund Funds Total
Receivable and other asset type:
Real estate and personal property taxes…………$ 294,782 $ - $ 294,782
Tax Liens…………………………………………… 774,417 - 774,417
Motor vehicle excise taxes………………………… 171,484 - 171,484
Departmental and other…………………………… - 214,255 214,255
Intergovernmental………………..………………… 4,791,241 339,998 5,131,239
Tax foreclosures…………………………………… 187,709 - 187,709
Total…………………………………………………$ 6,219,633 $ 554,253 $ 6,773,886
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2009, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land……………………………………………………$ 10,765,068 $ 393,800 $ - $ 11,158,868
Construction in progress…………………………… 4,771,714 4,703,880 (7,675,333) 1,800,261
Total capital assets not being depreciated…… 15,536,782 5,097,680 (7,675,333) 12,959,129
Capital assets being depreciated:
Land improvements………………………………… 2,555,735 - - 2,555,735
Buildings……………………………………………… 74,994,473 1,565,566 - 76,560,039
Building improvements……………………………… 15,544,365 1,356,947 (1,025,000) 15,876,312
Machinery and equipment…………………………… 3,948,459 782,958 (403,000) 4,328,417
Vehicles……………………………………………… 3,789,156 433,791 (199,917) 4,023,030
Infrastructure………………………………………… 9,169,410 5,734,469 - 14,903,879
Total capital assets being depreciated………… 110,001,598 9,873,731 (1,627,917) 118,247,412
Less accumulated depreciation for:
Land improvements………………………………… (393,925) (127,787) - (521,712)
Buildings.……………………………………………… (12,364,085) (1,806,451) - (14,170,536)
Building improvements……………………………… (7,143,819) (755,642) 1,025,000 (6,874,461)
Machinery and equipment…………………………… (1,514,830) (362,669) 403,000 (1,474,499)
Vehicles……………………………………………… (3,236,267) (315,167) 199,917 (3,351,517)
Infrastructure………………………………………… (2,217,419) (300,916) - (2,518,335)
Total accumulated depreciation………………… (26,870,345) (3,668,632) 1,627,917 (28,911,060)
Total capital assets being depreciated, net…………… 83,131,253 6,205,099 - 89,336,352
Total governmental activities capital assets, net………$ 98,668,035 $ 11,302,779 $ (7,675,333) $ 102,295,481
Town of Canton, Massachusetts 47 Comprehensive Annual Financial ReportSource page 56
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Beginning Ending
Balance Increases Decreases Balance
Water Activities:
Capital assets not being depreciated:
Land……………………………………………………$ 624,852 $ - $ - $ 624,852
Construction in progress…………………………… 2,233,313 4,399,771 - 6,633,084
Total capital assets not being depreciated…… 2,858,165 4,399,771 - 7,257,936
Capital assets being depreciated:
Buildings.……………………………………………… 4,139,989 - - 4,139,989
Machinery and equipment…………………………… 593,185 64,979 - 658,164
Vehicles……………………………………………… 363,782 59,042 - 422,824
Infrastructure………………………………………… 14,790,106 28,968 - 14,819,074
Total capital assets being depreciated………… 19,887,062 152,989 - 20,040,051
Less accumulated depreciation for:
Buildings.……………………………………………… (1,702,043) (77,764) - (1,779,807)
Machinery and equipment…………………………… (29,659) (62,567) - (92,226)
Vehicles……………………………………………… (331,782) (18,705) - (350,487)
Infrastructure………………………………………… (7,595,459) (294,392) - (7,889,851)
Total accumulated depreciation………………… (9,658,943) (453,428) - (10,112,371)
Total capital assets being depreciated, net…………… 10,228,119 (300,439) - 9,927,680
Total business-type activities capital assets, net………$ 13,086,284 $ 4,099,332 $ - $ 17,185,616
Beginning Ending
Balance Increases Decreases Balance
Sewer Activities:
Capital assets not being depreciated:
Construction in progress…………………………… $ 855,182 $ 126,589 $ (29,858) $ 951,913
Total capital assets not being depreciated…… 855,182 126,589 (29,858) 951,913
Capital assets being depreciated:
Buildings.……………………………………………… 1,263,604 - - 1,263,604
Machinery and equipment…………………………… - 264,697 - 264,697
Vehicles……………………………………………… 306,745 59,717 (101,000) 265,462
Infrastructure………………………………………… 22,014,163 29,858 - 22,044,021
Total capital assets being depreciated………… 23,584,512 354,272 (101,000) 23,837,784
Less accumulated depreciation for:
Buildings.……………………………………………… (162,437) (31,590) - (194,027)
Machinery and equipment…………………………… - (13,235) - (13,235)
Vehicles……………………………………………… (283,746) (15,172) 101,000 (197,918)
Infrastructure………………………………………… (12,737,452) (415,911) - (13,153,363)
Total accumulated depreciation………………… (13,183,635) (475,908) 101,000 (13,558,543)
Total capital assets being depreciated, net…………… 10,400,877 (121,636) - 10,279,241
Total business-type activities capital assets, net………$ 11,256,059 $ 4,953 $ (29,858) $ 11,231,154
Town of Canton, Massachusetts 48 Comprehensive Annual Financial ReportSource page 57
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Beginning Ending
Balance Increases Decreases Balance
Rink Activities:
Capital assets being depreciated:
Building improvements……………………………… $ 139,960 $ - $ - $ 139,960
Machinery and equipment…………………………… 241,501 84,796 (68,500) 257,797
Vehicles……………………………………………… 29,160 - - 29,160
Total capital assets being depreciated………… 410,621 84,796 (68,500) 426,917
Less accumulated depreciation for:
Building improvements……………………………… (24,493) (6,998) - (31,491)
Machinery and equipment…………………………… (145,425) (12,890) 68,500 (89,815)
Vehicles……………………………………………… (29,160) - - (29,160)
Total accumulated depreciation………………… (199,078) (19,888) 68,500 (150,466)
Total business-type activities capital assets, net………$ 211,543 $ 64,908 $ - $ 276,451
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government……………………………………………………………… $ 57,437
Public safety………………………………………………………………………… 597,821
Education…………………………………………………………………………… 2,237,748
Public works………………………………………………………………………… 433,121
Human services…………………………………………………………………… 12,936
Culture and recreation……………………………………………………………… 329,569
Total depreciation expense - governmental activities………………………………… $ 3,668,632
Business-Type Activities:
Water………………………………………………………………………………… $ 453,428
Sewer………………………………………………………………………………… 475,908
Rink…………………………………………………………………………………… 19,888
Total depreciation expense - business-type activities………………………………… $ 949,224
Town of Canton, Massachusetts 49 Comprehensive Annual Financial ReportSource page 58
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
NOTE 5 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables for the fiscal year ended June 30, 2009 relate to a 10 year non-interest
bearing loan between the Stoughton Mitigation Fund and the Water Fund with annual payments of $36,200
through FY2013.
Receivable Fund Payable Fund Amount
Stoughton Mitigation Fund Water Fund $ 144,800
Interfund transfers for the fiscal year ended June 30, 2009, are summarized as follows:
Transfers In:
Nonmajor
General Governmental
Transfers Out: Fund Funds Total
General Fund……………………… $ - $ 542,000 $ 542,000
Nonmajor Governmental Funds… 1,101,504 75,000 1,176,504
Water Enterprise Fund…………… 611,648 - 611,648
Sewer Enterprise Fund…………… 331,825 - 331,825
Rink Enterprise Fund……………… 66,456 - 66,456
Total…………………………………$ 2,111,433 $ 617,000 $ 2,728,433
The enterprise transfers to the general fund are for their share of indirect charges. The general fund transfers out
are $400,000 to fund the stabilization fund, $62,000 to fund capital projects funds and $80,000 for retirement buy
back reserves. The nonmajor funds transferred $75,000 between other nonmajor funds; and $1,101,504 to the
general fund to fund budgeted expenditures.
NOTE 6 – SHORT-TERM FINANCING
Short-term debt may be authorized and issued to fund the following:
• Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation
notes (RANS or TANS).
• Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS).
Short-term loans are general obligations and carry maturity dates that are limited by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the General Fund and Enterprise
Funds, respectively.
Town of Canton, Massachusetts 50 Comprehensive Annual Financial ReportSource page 59
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Details related to the short-term debt activity for the fiscal year ended June 30, 2009, is as follows:
Balance at Balance at
Rate June 30, Renewed/ Retired/ June 30,
Type Purpose (%) Due Date 2008 Issued Redeemed 2009
BAN Capital improvements………………… 2.5% 05/29/09 $ 2,676,000 $ - $ 2,676,000 $ -
GAN Highway……………………………… 2.6% 07/21/08 1,000,000 - 1,000,000 -
GAN Highway……………………………… 2.6% 07/21/08 1,000,000 - 1,000,000 -
BAN Capital improvements………………… 1.3% 05/28/10 - 1,751,000 - 1,751,000
GAN Highway……………………………… 1.6% 07/21/09 - 2,000,000 - 2,000,000
GAN Highway……………………………… 1.6% 07/21/09 - 1,200,000 - 1,200,000
Sub-total governmental notes……… 4,676,000 4,951,000 4,676,000 4,951,000
BAN Sewer System Improvements……… 2.5% 05/29/09 305,000 - 305,000 -
BAN Water System Improvements……… 2.5% 05/29/09 3,796,400 - 3,796,400 -
BAN Sewer System Improvements……… 1.3% 05/28/10 - 215,000 - 215,000
BAN Water System Improvements……… 1.3% 05/28/10 - 3,435,600 - 3,435,600
-
Sub-total business-type notes……… 4,101,400 3,650,600 4,101,400 3,650,600
Total notes payable…………………… $ 8,777,400 $ 8,601,600 $ 8,777,400 $ 8,601,600
The GAN’s were paid down on July 21, 2009, with available funds.
NOTE 7 – CAPITAL LEASE OBLIGATIONS
In Fiscal 2009 the Town entered into non-cancelable long-term leases for the purchase of two vehicles utilized the
Town. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been
recorded at the present value of their future minimum lease payments as of the inception date. Assets acquired
through capital leases are as follows:
Governmental
Activities
Asset:
Vehicles………………………………………………………$ 90,392
Less: accumulated depreciation………………………… (9,039)
Total………………………………………………………$ 81,353
Town of Canton, Massachusetts 51 Comprehensive Annual Financial ReportSource page 60
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
The following is a schedule of the future minimum lease payments under these capital leases, together with the
present value of the net minimum lease payments, as of June 30, 2009:
Fiscal Years Governmental
Ending June 30 Activities
2010………………………………………………………$ 22,598
2011……………………………………………………… 22,598
2012……………………………………………………… 22,598
Total minimum lease payments……………………… 67,794
Less: amounts representing interest………………… (8,030)
Present value of minimum lease payments………… $ 59,764
NOTE 8 – LONG-TERM DEBT
Under the provisions of Chapter 44, Section 10, Municipal Law authorizes indebtedness up to a limit of 5% of the
equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the
debt limit". In addition, however, debt may be authorized in excess of that limit for specific purposes. Such debt,
when issued, is designated as being "outside the debt limit".
In prior fiscal years, certain general obligation bonds were defeased by placing the proceeds of bonds in an
irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, neither the
assets in escrow nor the liability for the defeased bonds are included in the Town’s financial statements. At June
30, 2009, $5,340,000 of bonds outstanding is considered defeased.
In May 2009, the Town issued $6,399,333 of new general obligation bonds. The proceeds of these bonds, as
well as $569,467 of current revenues were used to retire $6,777,400 of maturing bond anticipation notes and to
provide permanent financing for several capital projects primarily including $2,508,333 for the Water System
Expansion project, $265,000 for Sewer System upgrades, $85,000 for Ice Rink equipment, and $3,541,000 for
other governmental projects. All water, sewer and ice rink debt is expected to be self-supporting through user
fees.
Town of Canton, Massachusetts 52 Comprehensive Annual Financial ReportSource page 61
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Details related to the outstanding indebtedness at June 30, 2009, and the debt service requirements are as
follows:
Bonds and Notes Payable - Governmental Funds
Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Land acquisition……………………………………… 4.75-5.75% $ 344,000 $ - $ 172,000 $ 172,000
Building remodeling………………………………… 4.75-5.75% 406,000 - 203,000 203,000
Data processing equipment………………………… 4.75-5.75% 235,000 - 235,000 -
Building remodeling………………………………… 3.50-5.00% 955,000 - 100,000 855,000
School project………………………………………… 3.50-5.00% 6,345,000 - 490,000 5,855,000
Drainage……………………………………………… 2.00-4.75% 180,000 - 15,000 165,000
Land acquisition……………………………………… 2.00-4.75% 1,283,465 - 28,260 1,255,205
School construction………………………………… 2.00-4.75% 16,000,000 - 1,000,000 15,000,000
Building remodeling………………………………… 2.00-4.75% 10,005,000 - 705,000 9,300,000
Energy conservation - school……………………… 2.00-4.75% 355,000 - 30,000 325,000
Departmental equipment…………………………… 2.00-4.75% 215,000 - 40,000 175,000
Refunding…………………………………………… 2.00-4.75% 2,162,600 - 27,760 2,134,840
ADA renovations…………………………………… 4.10% 1,515,000 - 92,000 1,423,000
Fire station…………………………………………… 4.10% 1,500,000 - 98,000 1,402,000
Revere fire station…………………………………… 4.10% 668,000 - 40,000 628,000
Fire engine…………………………………………… 3.90% 96,000 - 18,000 78,000
School remodeling…………………………………… 4.00% 246,000 - 17,000 229,000
Hansen school plumbing…………………………… 4.00% 123,000 - 9,000 114,000
Kennedy school boiler……………………………… 4.10% 254,000 - 16,000 238,000
School remodeling…………………………………… 4.00-4.10% 1,334,000 - 100,000 1,234,000
Highway truck………………………………………… 4.00% 116,000 - 17,000 99,000
Ladder truck………………………………………… 4.00% 480,000 - 60,000 420,000
Fire tanker truck……………………………………… 4.00% 235,000 - 30,000 205,000
Streetlights…………………………………………… 4.00% 262,000 - 33,000 229,000
Surface drain………………………………………… 4.10% 88,000 - 6,000 82,000
Land acquisition……………………………………… 3.50-4.00% 405,500 - 53,500 352,000
Building remodeling………………………………… 3.50-4.00% 455,500 - 54,500 401,000
School remodeling…………………………………… 3.50-4.00% 223,000 - 57,000 166,000
Outdoor recreational facility………………………… 3.50-3.85% 70,000 - 5,000 65,000
Departmental equipment…………………………… 3.50% 785,000 - 91,000 694,000
Building remodeling--School……………………… 3.50-4.00% 552,000 - 35,000 517,000
Dam construction…………………………………… 3.50% 350,000 - 41,000 309,000
Surface Drain………………………………………… 3.50-4.00% 150,000 - 10,000 140,000
Remodeling & Renovations………………………… 2.00-4.25% - 3,541,000 - 3,541,000
Total governmental bonds payable………………… 48,394,065 3,541,000 3,929,020 48,006,045
Add unamoritzed premium………………………… 463,400 - 52,095 411,305
Less unamortized loss on bond refunding, net…. (258,688) - (43,849) (214,839)
Total governmental bonds payable, net…………… $ 48,598,777 $ 3,541,000 $ 3,937,266 $ 48,202,511
Town of Canton, Massachusetts 53 Comprehensive Annual Financial ReportSource page 62
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Debt service requirements for principal and interest for Governmental bonds payable in future fiscal years are as
follows:
Principal Interest Total
2010…………… $ 3,947,750 $ 1,995,359 $ 5,943,109
2011…………… 3,923,880 1,827,180 5,751,060
2012…………… 3,903,220 1,688,204 5,591,424
2013…………… 3,816,270 1,548,546 5,364,816
2014…………… 3,786,245 1,404,752 5,190,997
2015…………… 3,677,190 1,256,822 4,934,012
2016…………… 3,622,140 1,090,207 4,712,347
2017…………… 3,418,100 928,064 4,346,164
2018…………… 3,104,475 778,396 3,882,871
2019…………… 2,893,000 641,699 3,534,699
2020…………… 2,743,775 523,893 3,267,668
2021…………… 2,713,000 408,030 3,121,030
2022…………… 2,183,000 292,879 2,475,879
2023…………… 1,963,000 192,733 2,155,733
2024…………… 1,504,000 102,433 1,606,433
2025…………… 344,000 36,367 380,367
2026…………… 171,000 19,250 190,250
2027…………… 135,000 12,240 147,240
2028…………… 101,000 6,672 107,672
2029…………… 56,000 2,380 58,380
Totals……………$ 48,006,045 $ 14,756,105 $ 62,762,150
Bonds and Notes Payable Schedule – Water Enterprise Fund
Water Fund Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Water………………………………………………… 4.75-5.75% $ 8,000 $ - $ 4,000 $ 4,000
Well…………………………………………………… 4.75-5.75% 19,000 - 10,000 9,000
Pumping Station……………………………………… 4.75-5.75% 36,000 - 18,000 18,000
Well…………………………………………………… 2.00-4.75% 1,110,000 - 50,000 1,060,000
Refunding…………………………………………… 2.00-4.75% 324,415 - 24,205 300,210
Water Pipe…………………………………………… 4.10% 292,000 - 18,000 274,000
Water Main Replacement…………………………… 4.10% 610,000 - 36,000 574,000
Water………………………………………………… 3.50-4.00% 228,000 - 27,000 201,000
Well Field Development…………………………… 3.50-4.00% 227,000 - 27,000 200,000
Water Departmental Equipment…………………… 3.50% 396,000 - 46,000 350,000
Water Departmental Equipment…………………… 3.50% 200,000 - 25,000 175,000
Water Mains………………………………………… 3.50-4.00% 1,000,000 - 57,000 943,000
Water Treatement Improvements………………… 2.00-4.25% - 2,508,333 - 2,508,333
Total water bonds payable………………………… 4,450,415 2,508,333 342,205 6,616,543
Less unamortized loss on bond refunding, net…. (25,235) - (3,626) (21,609)
Total water bonds payable, net……….…………… $ 4,425,180 $ 2,508,333 $ 338,579 $ 6,594,934
Town of Canton, Massachusetts 54 Comprehensive Annual Financial ReportSource page 63
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Debt service requirements for principal and interest for the water enterprise fund bonds and notes payable in
future fiscal years are as follows:
Principal Interest Total
2010…………… $ 642,828 $ 258,150 $ 900,978
2011…………… 633,600 234,592 868,192
2012…………… 562,135 211,569 773,704
2013…………… 493,675 192,813 686,488
2014…………… 426,440 175,138 601,578
2015…………… 423,960 157,787 581,747
2016…………… 423,465 154,518 577,983
2017…………… 392,735 121,209 513,944
2018…………… 304,315 103,767 408,082
2019…………… 302,000 92,315 394,315
2020…………… 301,390 81,361 382,751
2021…………… 272,000 70,381 342,381
2022…………… 272,000 59,959 331,959
2023…………… 267,000 48,767 315,767
2024…………… 266,000 37,466 303,466
2025…………… 201,000 26,184 227,184
2026…………… 149,000 17,988 166,988
2027…………… 95,000 11,910 106,910
2028…………… 94,000 7,990 101,990
2029…………… 94,000 3,996 97,996
Totals……………$ 6,616,543 $ 2,067,857 $ 8,684,400
Bonds and Notes Payable Schedule – Sewer Enterprise Fund
Sewer Fund Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Sewer………………………………………………… 4.75-5.75% $ 437,000 $ - $ 218,000 $ 219,000
Sewer………………………………………………… 3.50-5.00% 975,000 - 75,000 900,000
Sewer………………………………………………… 2.00-4.75% 295,000 - 20,000 275,000
Refunding…………………………………………… 3.25-4.00% 2,294,520 - 29,775 2,264,745
Sewer I&I……………………………………………… 4.10% 504,000 - 30,000 474,000
Estey Way Sewer…………………………………… 4.10% 190,000 - 12,000 178,000
Wardwell Sewer……………………………………… 4.10% 192,000 - 13,000 179,000
MWRA………………………………………………… 0% 120,120 - 40,040 80,080
Sewer………………………………………………… 3.50-4.00% 96,000 - 9,000 87,000
SCADA System……………………………………… 2.0-3.0% - 265,000 - 265,000
Total sewer bonds payable……………………….. 5,103,640 265,000 446,815 4,921,825
Less unamortized loss on bond refunding, net…. (180,735) - (25,523) (155,212)
Total sewer bonds payable, net……….…………… $ 4,922,905 $ 265,000 $ 421,292 $ 4,766,613
Town of Canton, Massachusetts 55 Comprehensive Annual Financial ReportSource page 64
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Debt service requirements for principal and interest for the sewer enterprise fund bonds and notes payable in
future fiscal years are as follows:
Principal Interest Total
2010…………… $ 475,795 $ 182,528 $ 658,323
2011…………… 470,560 165,767 636,327
2012…………… 419,645 151,111 570,756
2013…………… 412,055 136,656 548,711
2014…………… 409,315 121,976 531,291
2015…………… 405,850 106,564 512,414
2016…………… 401,395 91,253 492,648
2017…………… 393,165 75,898 469,063
2018…………… 390,210 60,473 450,683
2019…………… 384,000 44,616 428,616
2020…………… 344,835 28,870 373,705
2021…………… 145,000 18,274 163,274
2022…………… 70,000 11,653 81,653
2023…………… 70,000 8,649 78,649
2024…………… 70,000 5,612 75,612
2025…………… 55,000 2,550 57,550
2026…………… 5,000 200 5,200
Totals……………$ 4,921,825 $ 1,212,646 $ 6,134,471
Bonds and Notes Payable Schedule – Ice Rink Enterprise Fund
Ice Rink Fund Interest Outstanding Outstanding
Rate at June 30, at June 30,
Project (%) 2008 Issued Redeemed 2009
Zamboni……………………………………………… 2.0-3.0% $ - $ 85,000 $ - $ 85,000
Town of Canton, Massachusetts 56 Comprehensive Annual Financial ReportSource page 65
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Debt service requirements for principal and interest for the sewer enterprise fund bonds and notes payable in
future fiscal years are as follows:
Principal Interest Total
2010…………… $ 13,000 $ 2,270 $ 15,270
2011…………… 12,000 1,880 13,880
2012…………… 10,000 1,520 11,520
2013…………… 8,000 1,320 9,320
2014…………… 8,000 1,160 9,160
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
Totals……………$ 85,000 $ 10,990 $ 95,990
The Commonwealth has approved school construction assistance to the Town. The assistance program, which is
administered by the Massachusetts School Building Authority (MSBA), provides resources for future debt service
of general obligation school bonds outstanding. During fiscal year 2009, $483,915 of such assistance was
received. The Town will receive $5,875,525 in future fiscal years. Of this amount, $1,084,284 represents
reimbursement of long-term interest costs, and $4,791,241 represents reimbursement of approved construction
costs. Accordingly, a $4,791,241 intergovernmental receivable and corresponding deferred revenue have been
reported in the general fund. The net change in deferred revenue has been recognized as revenue in the
conversion to the government-wide financial statements.
The MSBA offers a construction grant program that pays the Town its share of the school construction and
therefore eliminates the need for the Town to fund the State’s share through long-term debt. The Canton High
School project is being funded by this grant program. The Town received the final MSBA grant payment of
$7,167,329 in fiscal 2009.
Town of Canton, Massachusetts 57 Comprehensive Annual Financial ReportSource page 66
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
The Town is subject to various debt limits by statute and may issue additional general obligation debt under the
normal debt limit. At June 30, 2009, the Town had the following authorized and unissued debt:
Purpose Amount
Ambulance Mangement System……………$ 20,000
Ambulance Replacement…………………… 225,000
Building A Elevator…………………………… 50,000
Dedham Street Drainage…………………..… 50,000
DPW Dump Truck…………………………… 42,000
DPW Garage…………………….…………… 150,000
Fiber Cables………………………………… 50,000
Greenlodge Street Interceptor……………… 7,004,000
Middle School Roof Replacement………… 30,000
Police Station Flooring……………………… 100,000
Ponkapoag Fire Station Roof Repairs……… 10,000
Rodman Building Asbestos Removal……… 20,000
Scada Upgrade & Trucks…………………… 295,000
School HVAC………………………………… 164,000
School Plumbing……………………………… 118,000
Senior Center ………………………………… 450,000
Senior Center Study………………………… 168,000
Septic Title V………………………………… 200,000
Sewer Infiltration & Inflow…………………… 1,586,290
Shepards Pond Dam………………………… 175,000
Washington Street Culvert Design………… 60,000
Water Mains………………………………… 150,000
Water Resource Management Plan……… 225,000
Water System Improvements……………… 5,084,000
Water Treatment Facility …………………… 9,000,000
Water Treatment Facility Design…………… 66,667
Water Trucks………………………………… 314,400
Well # 9 Supplement………………………… 40,000
Fire Department Equipment………………… 80,000
Luce School Roof Replacement…………… 310,000
School Dept Radio System………………… 36,000
GMS Acoustic Panels……………………… 41,000
Town Hall Repairs…………………………… 120,000
Total……………………………………………$ 26,434,357
Town of Canton, Massachusetts 58 Comprehensive Annual Financial ReportSource page 67
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Changes in long-term liabilities
During the fiscal year ended June 30, 2009, the following changes occurred in long-term liabilities:
Beginning Ending Current
Balance Additions Reductions Balance Portion
Governmental Activities:
Long-term bonds and notes……………………$ 48,394,065 $ 3,541,000 $ (3,929,020) $ 48,006,045 $ 3,947,750
Other postemployment benefits……………… - 3,017,000 - 3,017,000 -
Unamortized deferred loss on refunding…… (258,688) - 43,849 (214,839) (43,306)
Landfill closure………………………………… 393,000 51,000 (83,000) 361,000 78,000
Workers' compensation……………………… 215,000 45,000 (145,000) 115,000 95,000
Unamortized premium on bonds payable…… 463,400 - (52,095) 411,305 50,081
Compensated absences……………………… 1,161,000 792,000 (724,000) 1,229,000 786,000
Total governmental activities………………… $ 50,367,777 $ 7,446,000 $ (4,889,266) $ 52,924,511 $ 4,913,525
Business-Type Activities:
Long-term bonds and notes……………………$ 9,554,055 $ 2,858,333 $ (789,020) $ 11,623,368 $ 1,131,623
Other postemployment benefits……………… - 121,000 - 121,000 -
Unamortized deferred loss on refunding…… (205,970) - 29,149 (176,821) (28,793)
Compensated absences……………………… 168,000 106,000 (88,000) 186,000 102,000
Total business-type activities………………… $ 9,516,085 $ 3,085,333 $ (847,871) $ 11,753,547 $ 1,204,830
The governmental activities liabilities will be liquidated by the general fund with the exception of the workers’
compensation liability which will be liquidated by the internal service fund. The business-type liabilities will be
liquidated by the enterprise fund reporting the liability.
NOTE 9 – 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.
The Town is self-insured for its health insurance and workers’ compensation activities. These activities are
accounted for in the Town’s internal service funds where revenues are recorded when earned and expenses are
recorded when the liability is incurred.
(a) Health Insurance
The estimate of Incurred But Not Reported (IBNR) claims based on a one and a half-month claims paid
average for twelve months prior to fiscal year-end. The Town purchases individual stop loss insurance
for claims in excess of the coverage provided by the Town in the amount of $100,000. At June 30, 2009,
the amount of the liability for health insurance claims totaled $1,220,000. This liability is the best estimate
based on available information. Changes in the reported liability since July 1, 2007, are as follows:
Town of Canton, Massachusetts 59 Comprehensive Annual Financial ReportSource page 68
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal Current
Fiscal Year Estimate Payments Year-End Portion
Fiscal Year 2008……….. $ 1,151,000 $ 9,605,797 $ (9,535,797) $ 1,221,000 $ 1,221,000
Fiscal Year 2009………… 1,221,000 9,958,225 (9,959,225) 1,220,000 1,220,000
(b) Workers’ Compensation
Workers’ compensation claims submitted prior to July 1, 2007 are administered by a third party
administrator and are funded on a pay-as-you-go basis from annual appropriations. The Town is
premium based for all claims after July 1, 2007. 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 based on history and injury type.
At June 30, 2009, the amount of the liability for workers’ compensation claims totaled $115,000. This
liability is the Town’s best estimate based on available information. Changes in the reported liability since
July 1, 2007, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal Current
Fiscal Year Estimate Payments Year-End Portion
Fiscal Year 2008……….. $ 282,000 $ 31,443 $ (98,443) $ 215,000 $ 145,000
Fiscal Year 2009………… 215,000 (83,839) (16,161) 115,000 95,000
NOTE 10 – PENSION PLAN
Plan Description - The Town contributes to the System, a cost-sharing multiple-employer defined benefit
pension plan administered by the Norfolk County Retirement Board (Board). Substantially all employees are
members of the System, except for public school teachers and certain administrators who are members of the
Massachusetts Teachers Retirement System, to which the Town does not contribute. Pension benefits and
administrative expenses paid by the Teachers Retirement Board are the legal responsibility of the
Commonwealth. The amount of these on-behalf payments totaled approximately $7,222,000 for the fiscal year
ended June 30, 2009, and, accordingly, are reported in the general fund as intergovernmental revenues and
pension expenditures.
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. Cost-of-living
adjustments granted after 1997 must be approved by the Norfolk County Retirement Board and are borne by the
System. The System issues a publicly available unaudited financial report in accordance with guidelines
established by the Commonwealth’s PERAC. That report may be obtained by contacting the System located at
480 Neponset Street, Building #15, P.O. Box 188, Canton, Massachusetts 02021-0188.
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 its share of the system-wide
Town of Canton, Massachusetts 60 Comprehensive Annual Financial ReportSource page 69
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 actuarial determined contribution that is apportioned among the employers based on active current payroll. Administrative expenses are funded through investment earnings. Chapter 32 of the MGL governs the contributions of plan members and the Town. Annual Pension Cost - The Town’s contributions to the System for the fiscal years ended June 30, 2009, 2008, and 2007, were $2,672,418, $2,297,249 and $2,201,571, respectively, which equaled its required contribution for each fiscal year. Noncontributory Retirement Allowance – The Town pays the entire retirement allowance for certain retirees who are eligible for noncontributory benefits and are not members of the System. The general fund expenditure for fiscal year 2009 totaled approximately $43,508. NOTE 11 – LANDFILL POSTCLOSURE CARE COSTS State and Federal laws and regulations require the Town to perform certain maintenance and monitoring functions at the site after closure. The Town has closed the landfill and has recorded its estimated postclosure care costs to be $361,000 which has been recorded as a governmental activity liability at June 30, 2009. Actual costs may be higher due to inflation, changes in technology or changes in regulations. NOTE 12 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Fiscal year 2009 is the initial year that the Town has implemented GASB Statement 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (GASB 45). As allowed by GASB 45, the Town has established the net Other Post Employment Benefits (OPEB) obligation at zero at the beginning of the transition year and has applied the measurement and recognition requirements of GASB 45 on a prospective basis. Plan Description – The Town of Canton administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town’s group health insurance plan, which covers both active and retired members. Chapter 32B of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the Town and the unions representing Town employees and are renegotiated each bargaining period. The Retiree Health Plan does not issue a publicly available financial report. Funding Policy – Contribution requirements are also negotiated between the Town and union representatives. The required contribution is based on a pay-as-you-go financing requirement. The Town contributes 75 percent of the cost of current-year premiums for eligible retired plan members and their spouses. Plan members receiving benefits contribute the remaining 25 percent of their premium costs. For fiscal year 2009, the Town contributed $2.4 million to the plan, and member contributions totaled $962 thousand. Annual OPEB Cost and Net OPEB Obligation – The Town’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The components of the Town’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town’s net OPEB obligation are summarized in the following table: Town of Canton, Massachusetts 61 Comprehensive Annual Financial Report
Source page 70
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009
Normal cost………………………………………………………$ 2,525,000
Amortization of unfunded actuarial accrued liability………… 2,965,000
Annual OPEB cost (expense)……………………………… 5,490,000
Contributions made……………………………………………… (2,352,000)
Increase in net OPEB obligation……………………………… 3,138,000
Net OPEB obligation--beginning of year……………………… -
Net OPEB obligation--end of year………………………………$ 3,138,000
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2009 was as follows:
Percentage of
Fiscal Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/2009 $ 5,490,000 43% $ 3,138,000
Funded Status and Funding Progress – As of January 1, 2009, the most recent actuarial valuation date, the
actuarial accrued liability for benefits was $80.3 million, all of which was unfunded. The covered payroll (annual
payroll of active employees covered by the plan) was $32.2 million, and the ratio of the UAAL to the covered
payroll was 249 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the
plan and the annual required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of funding
progress, presented as required supplementary information following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions – Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) 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 plan members to that point. The actuarial methods and assumptions used include techniques that
are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2009 actuarial valuation, actuarial liabilities were determined using the projected unit credit cost
method. The actuarial assumptions included a 4.25% investment return assumption, which is based on the
expected yield on the assets of the Town, calculated based on the funded level of the plan at the valuation date,
and an annual medical/drug cost trend rate of 10% initially, graded to 5% over ten years and included a 3.5%
inflation assumption. The UAAL is being amortized over a 30 year period, with amortization payments increasing
at 3.5% per year on a closed basis. The remaining amortization period at June 30, 2009 is 29 years.
Town of Canton, Massachusetts 62 Comprehensive Annual Financial ReportSource page 71
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2009 NOTE 13 – COMMITMENTS The Town has been authorized to borrow approximately $9.1 million to cover costs associated with the design and construction of a Water Treatment Facility. As of June 30, 2009 this authorized debt has still yet to be issued. The Town expects that construction will begin on this project during the course of fiscal 2010. NOTE 14 – CONTINGENCIES The Town participates in a number of federal award programs. Although the grant programs have been audited in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30, 2009, these programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although it is expected such amounts, if any, to be immaterial. Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not always predictable. Although the amount of liability, if any, at June 30, 2009, cannot be ascertained, management believes any resulting liability should not materially affect the financial position at June 30, 2009. NOTE 15 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS During fiscal year 2009, the following GASB pronouncements were implemented: The GASB issued Statement #45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This pronouncement did significantly impact the basic financial statements. The GASB issued Statement #56, Codification of Accounting and Financial Reporting Guidance Contained in AICPA Statements on Auditing Standards. This pronouncement did not impact the basic financial statements. Other Future GASB Pronouncements: The GASB issued Statement #54, Fund Balance Reporting and Governmental Fund Type Definitions, which is required to be implemented in fiscal year 2011. Management believes this pronouncement will require additional disclosure and impact the basic financial statements. Town of Canton, Massachusetts 63 Comprehensive Annual Financial Report
Source page 72
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Required Supplementary Information Required Supplementary Information Town of Canton, Massachusetts 65 Comprehensive Annual Financial Report
Source page 74
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2009
Budgeted Amounts
Actual Amounts Variance
Original Final Budgetary Carried Forward to Final
Budget Budget Amounts To Next Year Budget
REVENUES:
Real estate and personal property taxes,
net of tax refunds…………………………………………… $ 49,754,017 $ 49,754,017 $ 49,884,691 $ - $ 130,674
Tax liens……………………………………………………… - - 187,083 - 187,083
Motor vehicle and other excise taxes……………………… 3,300,000 3,300,000 3,515,812 - 215,812
Penalties and interest on taxes……………………………… 175,000 175,000 246,950 - 71,950
Payments in lieu of taxes…………………………………… 189,423 189,423 194,559 - 5,136
Licenses and permits………………………………………… 615,000 615,000 452,758 - (162,242)
Fines and forfeitures………………………………………… 150,000 150,000 149,867 - (133)
Intergovernmental…………………………………………… 7,760,100 7,760,100 7,206,088 - (554,012)
MSBA Capital Grant………………………………………… - - 7,167,329 - 7,167,329
Departmental and other……………………………………… 400,000 400,000 490,945 - 90,945
Investment income…………………………………………… 500,000 500,000 322,535 - (177,465)
TOTAL REVENUES…………………………………… 62,843,540 62,843,540 69,818,617 - 6,975,077
EXPENDITURES:
Current:
General Government
Executive Branch………………………………………… 847,730 1,197,730 1,179,689 18,000 41
Executive Branch articles……………………………… 66,385 66,385 2,742 63,643 -
Finance Committee……………………………………… 12,703 12,703 7,817 - 4,886
Reserve Fund…………………………………………… 50,000 - - - -
Finance Department…………………………………… 914,125 914,125 829,295 82,988 1,842
Finance Department articles…………………………… 51,170 51,170 27,518 23,652 -
Assessors………………………………………………… 237,625 237,625 232,168 5,000 457
Assessors articles……………………………………… 300,000 300,000 - 300,000 -
Water/Sewer Rate Committee………………………… 1,000 1,000 407 - 593
Town Clerk & Elections………………………………… 190,791 190,791 188,285 - 2,506
Town Clerk & Elections articles………………………… 51,593 51,593 - 51,593 -
Conservation Commission……………………………… 65,738 65,738 65,591 - 147
Planning Board…………………………………………… 53,717 53,717 49,237 2,750 1,730
Building Renovation Committee……………………… 3,381 3,381 289 - 3,092
Capital Outlay Committee……………………………… 2,556 2,556 86 - 2,470
Municipal Buildings……………………………………… 394,723 394,723 392,427 2,076 220
Municipal Buildings articles…………………………… 73,003 73,003 29,187 43,549 267
Town Insurance………………………………………… 765,000 765,000 740,606 - 24,394
Total…………………………………………………………… 4,081,240 4,381,240 3,745,344 593,251 42,645
Public Safety
Fire Department………………………………………… 4,268,029 4,268,029 4,268,020 - 9
Fire Department articles………………………………… 37,071 37,071 37,042 - 29
Police……………………………………………………… 3,595,611 3,595,611 3,588,540 7,068 3
Police articles…………………………………………… 168,585 168,585 109,986 58,599 -
Building & Zoning………………………………………… 307,972 307,972 293,867 6,550 7,555
Building & Zoning articles……………………………… - - - - -
Sealer of Weights & Measures………………………… 7,500 7,500 6,750 - 750
Emergency Management……………………………… 8,335 8,335 7,522 - 813
Animal Control…………………………………………… 159,597 159,597 128,683 - 30,914
Town Emergency………………………………………… 8,875 8,875 - - 8,875
Total……………………………………………………… 8,561,575 8,561,575 8,440,410 72,217 48,948
Education
School…………………………………………………… 27,593,848 27,593,848 27,542,051 51,797 -
School articles…………………………………………… 360,050 360,050 352,723 7,327 -
Blue Hills Regional……………………………………… 1,127,712 1,264,185 1,253,270 - 10,915
Total…………………………………………………………… 29,081,610 29,218,083 29,148,044 59,124 10,915
(Continued)
Town of Canton, Massachusetts 66 Comprehensive Annual Financial ReportSource page 75
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2009
Budgeted Amounts
Actual Amounts Variance
Original Final Budgetary Carried Forward to Final
Budget Budget Amounts To Next Year Budget
Public Works
Public Works……………………………………………… 1,913,174 1,913,174 1,911,472 250 1,452
Public Works articles…………………………………… 72,709 72,709 42,427 30,282 -
Street Lighting…………………………………………… 209,288 209,288 170,287 24,000 15,001
Snow & Ice……………………………………………… 684,721 834,721 834,645 - 76
Trash Collection………………………………………… 1,573,082 1,423,082 1,313,864 5,700 103,518
Total…………………………………………………………… 4,452,974 4,452,974 4,272,695 60,232 120,047
Health and Human Services
Health Department……………………………………… 302,788 302,788 288,875 - 13,913
Council on Aging………………………………………… 209,561 209,561 206,217 3,344 -
Commission on Disability……………………………… 2,565 2,565 1,926 - 639
Veteran's Services……………………………………… 138,164 138,164 134,048 - 4,116
Total……………………………………………………… 653,078 653,078 631,066 3,344 18,668
Culture and Recreation
Recreation & Playground……………………………… 370,895 370,895 370,892 - 3
Recreation & Playground articles……………………… 28,054 28,054 20,716 7,338 -
Public Library…………………………………………… 940,705 940,705 939,878 827 -
Public Library articles…………………………………… 26,282 26,282 25,345 926 11
Historical Commission…………………………………… 3,669 3,669 3,335 - 334
Beautification Commission……………………………… 2,742 2,742 - 2,742 -
Total……………………………………………………… 1,372,347 1,372,347 1,360,166 11,833 348
Pension Benefits…………………………………………… 2,679,811 2,679,811 2,679,490 - 321
Employee Benefits
Unemployment Compensation………………………… 100,000 100,000 100,000 - -
Employer Share - Health……………………………… 8,655,001 8,518,528 8,038,327 - 480,201
Employer Share - Life…………………………………… 56,000 56,000 56,000 - -
Total……………………………………………………… 8,811,001 8,674,528 8,194,327 - 480,201
Unpaid bills…………………………………………………… - - - - -
State and county charges…………………………………… 933,943 933,943 924,550 - 9,393
Debt service…………………………………………………… 5,977,001 5,977,001 5,939,986 - 37,015
TOTAL EXPENDITURES……………………………… 66,604,580 66,904,580 65,336,078 800,001 768,501
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES……………………………………… (3,761,040) (4,061,040) 4,482,539 (800,001) 7,743,578
OTHER FINANCING SOURCES (USES):
Premium from issuance of bonds…………………………… - - 27,067 - 27,067
Transfers in…………………………………………………… 2,110,537 2,110,537 2,111,433 - 896
Transfers out………………………………………………… (542,000) (542,000) (542,000) - -
TOTAL OTHER FINANCING SOURCES (USES)…… 1,568,537 1,568,537 1,596,500 - 27,963
NET CHANGE IN FUND BALANCE…………………………… (2,192,503) (2,492,503) 6,079,039 (800,001) 7,771,541
BUDGETARY FUND BALANCE, Beginning of year………… 5,700,074 5,700,074 5,700,074 - -
BUDGETARY FUND BALANCE, End of year…………………$ 3,507,571 $ 3,207,571 $ 11,779,113 $ (800,001) $ 7,771,541
(Concluded)
See notes to required supplementary information.
Town of Canton, Massachusetts 67 Comprehensive Annual Financial ReportSource page 76
Retirement System Schedules of Funding
Progress and Employer Contributions
The Retirement System Schedule of Funding Progress presents multiyear trend information about whether the
actuarial value of planned assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
The Retirement System Schedule of Employer Contributions presents multiyear trend information for required and
actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer,
was well as the Town’s proportionate share of the plan’s annual contributions.
Retirement System Schedules
Town of Canton, Massachusetts 68 Comprehensive Annual Financial ReportSource page 77
Norfolk County Contributory Retirement System
Schedule of Funding Progress
Fiscal Year Ending June 30, 2009
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
01/01/08 $ 596,157,147 $ 907,719,124 $ 311,561,977 65.7% $ 223,814,977 139.2%
01/01/07 533,077,948 855,677,413 322,599,465 62.3% 219,620,865 146.9%
01/01/05 467,186,566 762,900,650 295,714,084 61.2% 196,639,163 150.4%
01/01/03 415,150,776 675,275,257 260,124,481 61.5% 185,281,985 140.4%
01/01/00 371,646,793 533,959,970 162,313,177 69.6% 163,542,978 99.2%
01/01/97 258,771,070 392,463,080 133,692,010 65.9% 126,219,194 105.9%
01/01/93 151,546,609 291,472,940 139,926,331 52.0% 107,482,975 130.2%
The Town's share of the UAAL, as of January 1, 2008, is approximately 6.9%.
See notes to required supplementary information.
Town of Canton, Massachusetts 69 Comprehensive Annual Financial ReportSource page 78
Norfolk County Contributory Retirement System
Schedule of Employer Contributions
Fiscal Year Ending June 30, 2009
System Wide Town of Canton
(B/A)
Fiscal Year Annual (A) (B) Town's Percentage
Ended Required Actual Percentage Actual of System Wide
June 30 Contributions Contributions Contributed Contributions Actual Contributions
2005 $ 28,238,996 $ 28,238,996 100% $ 1,747,497 6.19%
2006 31,755,708 31,755,708 100% 2,017,098 6.35%
2007 32,877,890 32,877,890 100% 2,201,571 6.70%
2008 33,104,903 33,104,903 100% 2,297,249 6.94%
2009 38,920,499 38,920,499 100% 2,672,418 6.87%
The Town's Actual Contributions equaled 100% of its Required Contribution for each year presented.
See notes to required supplementary information.
Town of Canton, Massachusetts 70 Comprehensive Annual Financial ReportSource page 79
Other Post-Employment Benefits Plan
Schedules
The Schedule of Funding progress compares, over time, the actuarial accrued liability for benefits with the
actuarial value of accumulated plan assets.
The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of
trends in the amounts reported.
Town of Canton, Massachusetts 71 Comprehensive Annual Financial ReportSource page 80
OTHER POST-EMPLOYMENT BENEFIT PLAN
SCHEDULE OF FUNDING PROGRESS
JUNE 30, 2009
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Projected Unit Credit (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
1/1/2009 $ - $ 80,263,018 $ 80,263,018 0% $ 32,236,036 249.0%
The Town implemented GASB Statement No. 45 for the fiscal year ended June 30, 2009.
Information for prior years is not available.
See notes to required supplementary information.
Town of Canton, Massachusetts 72 Comprehensive Annual Financial Report