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Fiscal Year 2020 Comprehensive Annual Financial Report
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Source page 81
Changes in the Net OPEB Liability – The following table summarizes the changes in the net
OPEB liability for the year ended June 30, 2020:
Balances at June 30, 2019 $ 88,688,109 $ 5,219,494 $ 83,468,615
Changes for the year:
Service cost 2,011,440 - 2,011,440
Interest 5,105,363 - 5,105,363
Changes of assumptions (2,915,959) - (2,915,959)
Difference between expected
and actual experience (61,259) - (61,259)
Net investment income - 130,887 (130,887)
Employer contributions - 4,905,429 (4,905,429)
Benefit payments withdrawn from trust - (3,875,429) 3,875,429
Benefit payments (3,875,429) - (3,875,429)
Net changes 264,156 1,160,887 (896,731)
Balances at June 30, 2020 $ 88,952,265 $ 6,380,381 $ 82,571,884
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year ended June
30, 2020, the Town recognized OPEB expense of $4,409,946. Deferred outflows of resources and deferred
inflows of resources related to OPEB as of June 30, 2020 were reported as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual earnings $ 250,135 $ 15,882
Changes of assumptions - 4,854,469
Differences between expected and actual experience - 3,845,875
$ 250,135 $ 8,716,226
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will
be recognized in OPEB expense (benefit) as follows:
June 30
2021 $ (2,306,052)
2022 (2,306,052)
2023 (2,298,113)
2024 (1,310,046)
2025 (245,828)
$ (8,466,091)
Town of Canton, Massachusetts Page 73 of 129 Comprehensive Annual Financial ReportSource page 82
GASB Statement No. 74
OPEB Plan disclosures that impact the Town’s net OPEB liability using a measurement date of
June 30, 2020 are summarized in this section except disclosures under GASB 74 that are identical
to GASB 75 are not repeated.
Investment Custody – In accordance with Massachusetts General Laws, the Town Treasurer is the
custodian of the OPEB Plan and since the Town has not designated a Board of Trustees, the
Town Treasurer is also the Trustee and as such is responsible for the general supervision of the
management, investment and reinvestment of the OPEB Plan assets. OPEB Plan assets may be
invested and reinvested by the custodian consistent with the prudent investor rule established in
Chapter 203C and may, with the approval of the State Retiree Benefits Trust Fund Board of
Trustees, be invested in the State Retiree Benefits Trust Fund established in Section 24 of Chapter
32A. OPEB Plan assets must be segregated from other funds and not be subject to the claims of
any general creditor of the Town.
Investment Policy – The OPEB Plan has a formal investment policy to invest in Domestic Equity,
Domestic Fixed Income, International Equity, International Fixed Income, Alternative
Investments and Cash Equivalents with target allocations highlighted previously under the
caption long-term expected rate of return.
Investment Rate of Return – For the year ended June 30, 2020 the annual money-weighted rate of
return on investments, net of investment expense, was 2.35%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
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 $150,000 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, 2020, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $544,440. This liability is the best estimate based on
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.
Town of Canton, Massachusetts Page 74 of 129 Comprehensive Annual Financial ReportSource page 83
Changes in the reported liability since July 1, 2018, are as follows:
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2020 $ 884,633 $ 12,743,722 $(13,083,915) $ 544,440 $ 544,440
Fiscal Year 2019 $ 878,641 $ 17,608,427 $(17,602,435) $ 884,633 $ 884,633
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, 2009. 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, 2020
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 $25.0 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, 2020, 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, 2020. 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. Implementation of GASB pronouncements
Current Year Implementations –
None.
Future Implementations –
In January 2017, the GASB issued GASB Statement No. 84, Fiduciary Activities. The objective
of the Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how these activities should be reported. As
amended, the provisions of this Statement are effective for financial reporting periods beginning
Town of Canton, Massachusetts Page 75 of 129 Comprehensive Annual Financial ReportSource page 84
after December 15, 2019 (fiscal year 2021). The Town is currently evaluating whether adoption
will have a material impact on the financial statements.
In June 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefines the
manner in which long-term leases are accounted and reported. As amended, the provisions of this
Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal year
2022). The Town is currently evaluating whether adoption will have a material impact on the
financial statements.
In June 2018, the GASB issued GASB Statement No. 89, Accounting for Interest Cost Incurred
Before the End of a Construction Period. This statement establishes accounting requirements for
interest costs incurred before the end of a construction period. As amended, the provisions of this
Statement are effective for financial reporting periods beginning after December 15, 2020 (fiscal
year 2022). The Town is currently evaluating whether adoption will have a material impact on
the financial statements.
In August 2018, the GASB issued GASB Statement No. 90, Majority Equity Interest – An
Amendment of GASB Statements No. 14 and No. 61. The objective of this Statement is to
improve the consistency and comparability of reporting a government’s majority equity interest in
a legally separate organization and to improve the relevance of financial statement information
for certain component units. As amended, the provisions of this Statement are effective for
financial reporting periods beginning after December 15, 2019 (fiscal year 2021). The Town is
currently evaluating whether adoption will have a material impact on the financial statements.
In May 2019, the GASB issued GASB Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to standardize the reporting of conduit debt obligations by issuers
by clarifying the existing definition of conduit debt obligation, among other matters. As
amended, the provisions of this Statement are effective for financial reporting periods beginning
after December 15, 2021 (fiscal year 2023). The Town is currently evaluating whether adoption
will have a material impact on the financial statements.
In March 2020, the GASB issued GASB Statement No. 93, Replacement of Interbank Offered
Rates. The objective of this Statement is to address accounting and financial reporting
implications that result from the replacement of an interbank offered rate. As amended, the
provisions of this Statement are effective for financial reporting periods beginning after June 15,
2020 (fiscal year 2021) except for the removal Libor as a benchmark which is for the reporting
periods ending after December 31, 2021 (fiscal year 2022). The Town is currently evaluating
whether adoption will have a material impact on the financial statements.
In March 2020, the GASB issued GASB Statement No. 94, Public-Private and Public-Public
Partnerships and Availability Payment Arrangements. The objective of this Statement is to
improve financial reporting by addressing issued related to public-private and public-public
partnership arrangements. The provisions of this Statement are effective for financial reporting
periods beginning after June 15, 2022 (fiscal year 2023). The Town is currently evaluating
whether adoption will have a material impact on the financial statements.
In May 2020, the GASB issued GASB Statement No. 96, Subscription-Based Information
Technology Arrangements. The objective of this Statement is to address accounting for
subscription-based information technology arrangements to government end users based on the
standards established in Statement No. 87, as amended. The provisions of this Statement are
effective for financial reporting periods beginning after June 15, 2022 (fiscal year 2023). The
Town is currently evaluating whether adoption will have a material impact on the financial
statements.
Town of Canton, Massachusetts Page 76 of 129 Comprehensive Annual Financial ReportSource page 85
In June 2020, the GASB issued GASB Statement No. 97, Certain Component Unit Criteria, and
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a
Supersession of GASB Statement No. 32. The objective of this Statement is to (1) increase
consistency and comparability related to the reporting of fiduciary component units in
circumstances in which a potential component unit does not have a governing board and the
primary government performs the duties that a governing board typically would perform; (2)
mitigate costs associated with the reporting of certain defined contribution pension plans, defined
contribution OPEB plans, and employee benefit plans other than pension plans or OPEB plans
(other employee benefit plans) as fiduciary component units in fiduciary fund financial
statements; and (3) enhance the relevance, consistency, and comparability of the accounting and
financial reporting for Internal Revenue Code Section 457 deferred compensation plans that meet
the definition of a pension plan and for benefits provided through those plans. The provisions of
this Statement are effective for financial reporting periods beginning after June 15, 2021 (fiscal
year 2023). 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 79 of 129 Comprehensive Annual Financial Report
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TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2020
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
(dollar amounts are in thousands)
Year Ended June 30,
2020 2019 2018 2017 2016 2015
Town's proportion of the net pension
liability (asset) 7.52% 7.50% 7.49% 7.65% 7.65% 7.56%
Town's proportionate share of the net
pension liability (asset) $ 44,172 $ 48,811 $ 41,437 $ 39,940 $ 41,562 $ 39,227
Town's covered payroll $ 23,863 $ 22,792 $ 22,021 $ 20,827 $ 20,288 $ 19,140
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 185.1% 214.2% 188.2% 191.8% 204.9% 204.9%
Plan fiduciary net position as a percentage
of the total pension liability 64.6% 58.3% 63.5% 61.6% 58.6% 60.1%
SCHEDULE OF THE TOWN'S CONTRIBUTIONS TO PENSION PLAN
(dollar amounts are in thousands)
Year Ended June 30,
2020 2019 2018 2017 2016 2015
Actuarially determined contribution $ 5,635 $ 5,246 $ 4,796 $ 4,394 $ 3,991 $ 3,571
Contributions in relation to the
actuarially determined contribution 5,635 5,246 4,796 4,394 3,991 3,571
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ -
Town's covered payroll $ 24,413 $ 22,391 $ 21,439 $ 20,408 $ 19,831 $ 18,924
Contributions as a percentage of
covered payroll 23.1% 23.4% 22.4% 21.5% 20.1% 18.9%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 80 of 129 Comprehensive Annual Financial ReportSource page 89
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2020
SCHEDULE OF THE COMMONWEALTH'S COLLECTIVE SHARE OF THE NET PENSION LIABILITY
MASSACHUSETTS TEACHER'S RETIREMENT SYSTEM
(dollar amounts are in thousands)
Year Ended June 30,
2019 2018 2017 2016 2015
Commonwealth's proportion of the
collective net pension liability (asset) 100.0% 100.0% 100.0% 100.0% 100.0%
Town's proportion of the collective
net pension liability (asset) 0.0% 0.0% 0.0% 0.0% 0.0%
Commonwealth's proportionate share of
the net pension liability (asset) $25,214,020 $23,711,289 $22,885,391 $22,357,928 $20,489,643
Commonwealth's actuarially
determined contribution $1,443,710 $1,314,783 $1,235,515 $1,124,583 $1,021,930
Contributions to MTRS are the responsibility of the Commonwealth of Massachusetts.
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 81 of 129 Comprehensive Annual Financial ReportSource page 90
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2020
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Year Ended June 30,
2020 2019 2018 2017
Total OPEB liability:
Service cost $ 2,011,440 $ 2,040,579 $ 2,675,741 $ 2,515,860
Interest 5,105,363 5,463,438 4,809,630 4,590,666
Difference between actual and plan experience (61,259) (5,996,352) - -
Changes of assumptions (2,915,959) (3,907,488) - -
Benefit payments (3,875,429) (3,723,578) (3,179,556) (3,013,880)
Net change in total OPEB liability 264,156 (6,123,401) 4,305,815 4,092,646
Total OPEB liability - beginning of year 88,688,109 94,811,510 90,505,695 86,413,049
Total OPEB liability - end of year (a) $ 88,952,265 $ 88,688,109 $ 94,811,510 $ 90,505,695
Plan fiduciary net position:
Contributions - employer $ 4,905,429 $ 4,523,578 $ 4,179,556 $ 3,783,880
Net investment income 130,887 263,700 175,423 221,830
Benefit payments (3,875,429) (3,723,578) (3,179,556) (3,013,880)
Net change in Plan fiduciary net position 1,160,887 1,063,700 1,175,423 991,830
Plan fiduciary net position - beginning of year 5,219,494 4,155,794 2,980,371 1,988,541
Plan fiduciary net position - end of year (b) $ 6,380,381 $ 5,219,494 $ 4,155,794 $ 2,980,371
Net OPEB liability - end of year (a) - (b) $ 82,571,884 $ 83,468,615 $ 90,655,716 $ 87,525,324
Plan fiduciary net position as a percentage of the total
OPEB liability 7.17% 5.89% 4.38% 3.29%
Covered-employee payroll $ 46,591,956 $ 46,591,956 $ 45,486,461 $ 44,161,613
Net OPEB liability as a percentage of covered-
employee payroll 177.22% 179.15% 199.30% 198.19%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
However, until a full 10-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 82 of 129 Comprehensive Annual Financial ReportSource page 91
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2020
SCHEDULE OF CONTRIBUTIONS
Year Ended June 30,
2020 2019 2018 2017
Actuarially-determined contribution $ 7,670,645 $ 7,622,221 $ 8,240,517 $ 7,882,229
Contributions in relation to the actuarially-
determined contribution (4,905,429) (4,523,578) (4,179,556) (3,783,880)
Contribution deficiency (excess) $ 2,765,216 $ 3,098,643 $ 4,060,961 $ 4,098,349
Covered-employee payroll $ 47,989,715 $ 46,591,956 $ 45,486,461 $ 44,161,613
Contribution as a percentage of covered-employee payroll 10.22% 9.71% 9.19% 8.57%
Valuation Date July 1, 2018 July 1, 2018 July 1, 2016 July 1, 2016
Amortization Period 30 years 30 years 30 years 30 years
Investment rate of return 7.00% 7.05% 6.80% 6.97%
Municipal bond rate 2.66% 2.79% 3.45% 3.13%
Single equivalent discount rate 6.00% 5.75% 5.25% 5.25%
Inflation 2.50% 2.75% 2.75% 2.75%
Healthcare cost trend rates 4.50% 4.50% 5.00% 5.00%
Salary increases 3.00% 3.00% 3.00% 3.00%
Actuarial Cost Method Individual Entry Age Normal (for all years presented)
Asset Valuation Method Market Value of Assets as of Reporting Date (for all years presented)
SCHEDULE OF INVESTMENT RETURNS
Year Ended June 30,
2020 2019 2018 2017
Annual money-weighted rate of return, net of
investment expense 2.35% 5.55% 5.05% 8.23%
Note: These schedules are presented to illustrate the requirement to show information for 10 years. However, until a
full 10-year trend is compiled, information is presented for those years in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 83 of 129 Comprehensive Annual Financial ReportSource page 92
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 79,179,777 $ 79,179,777 $ 77,420,210 $ - 77,420,210 (1,759,567)
Tax title - - 235,221 - 235,221 235,221
Payments in lieu of taxes 248,804 248,804 254,165 - 254,165 5,361
Motor vehicle excise 4,300,000 4,300,000 4,560,311 - 4,560,311 260,311
Meals taxes 325,000 325,000 319,069 - 319,069 (5,931)
Room occupancy excise 225,000 225,000 249,623 - 249,623 24,623
84,278,581 84,278,581 83,038,599 - 83,038,599 (1,239,982)
Intergovernmental:
State aid - chapter 70 6,327,312 6,327,312 6,346,813 - 6,346,813 19,501
State aid - charter school 24,738 24,738 19,891 - 19,891 (4,847)
State aid - unrestricted 2,277,134 2,277,134 2,277,134 - 2,277,134 -
State aid - veterans 116,442 116,442 131,998 - 131,998 15,556
State aid - exemptions 138,518 138,518 147,435 - 147,435 8,917
State aid - state owned land 38,584 38,584 38,584 - 38,584 -
State aid - other 200,000 200,000 254,335 - 254,335 54,335
MSBA school construction reimbursement 456,305 456,305 456,305 - 456,305 -
9,579,033 9,579,033 9,672,495 - 9,672,495 93,462
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 56,000 - 56,000 16,000
Town clerk fees 35,000 35,000 34,537 - 34,537 (463)
Public safety detail fees 40,000 40,000 26,896 - 26,896 (13,104)
Other departmental fees 35,000 35,000 30,650 - 30,650 (4,350)
Rental of municipal property 200,000 200,000 219,064 - 219,064 19,064
Conservation department revenues 55,000 55,000 38,815 - 38,815 (16,185)
Solar revenues 347,908 347,908 428,574 - 428,574 80,666
Other departmental revenues 120,000 120,000 102,452 - 102,452 (17,548)
872,908 872,908 936,988 - 936,988 64,080
Licenses and permits:
Alcohol licenses 70,000 70,000 81,825 - 81,825 11,825
Other licenses 80,000 80,000 61,541 - 61,541 (18,459)
Building permits 750,000 750,000 1,279,096 - 1,279,096 529,096
900,000 900,000 1,422,462 - 1,422,462 522,462
Fines and forfeitures:
Motor vehicle fines 70,000 70,000 49,067 - 49,067 (20,933)
Other fines 10,000 10,000 5,616 - 5,616 (4,384)
80,000 80,000 54,683 - 54,683 (25,317)
Penalties and interest on taxes 275,000 275,000 240,078 - 240,078 (34,922)
-
Interest and investment income 300,000 300,000 395,818 - 395,818 95,818
Total Revenues 96,285,522 96,285,522 95,761,123 - 95,761,123 (524,399)
Town of Canton, Massachusetts Page 84 of 129 Comprehensive Annual Financial ReportSource page 93
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,240,887 1,157,243 1,059,518 55,566 1,115,084 42,159
Executive Branch Articles 26,997 31,997 1,717 30,280 31,997 -
Commitees and Commissions 34,203 34,203 12,167 - 12,167 22,036
Reserve Fund 700,000 700,000 - - - 700,000
Finance Department 1,237,294 1,241,958 1,136,115 86,080 1,222,195 19,763
Finance Department Articles 128,178 128,178 112,740 15,202 127,942 236
Assessors 484,857 487,847 301,378 165,500 466,878 20,969
Town Clerk & Elections 271,361 272,366 259,347 52 259,399 12,967
Conservation Commission 147,619 147,619 133,640 5,040 138,680 8,939
Conservation Commission Articles 23,435 23,435 15,025 8,410 23,435 -
Planning Board 69,649 70,898 59,393 - 59,393 11,505
Planning Board Articles 34,505 34,503 33,921 582 34,503 -
Unpaid Bills - 7,450 7,450 - 7,450 -
Town Insurance 1,212,368 1,209,807 1,133,055 15,000 1,148,055 61,752
Total General Government 5,611,353 5,547,504 4,265,466 381,712 4,647,178 900,326
Public Safety
Fire Department 6,545,413 6,547,001 6,333,126 35,222 6,368,348 178,653
Fire Department Articles 510,000 510,000 466,124 43,876 510,000 -
Police Department 5,375,498 5,376,293 5,356,305 19,970 5,376,275 18
Police Department Articles 256,518 256,518 206,026 49,891 255,917 601
Building & Zoning 376,389 378,725 376,898 - 376,898 1,827
Total Public Safety 13,063,818 13,068,537 12,738,479 148,959 12,887,438 181,099
Education:
School 46,870,717 46,865,828 43,910,317 2,901,424 46,811,741 54,087
School Articles 824,163 824,163 730,293 78,117 808,410 15,753
Blue Hill Regional 1,448,406 1,448,406 1,447,694 - 1,447,694 712
Norfolk County Agricultural HS 20,000 20,000 19,460 - 19,460 540
Total Education 49,163,286 49,158,397 46,107,764 2,979,541 49,087,305 71,092
Public Works:
Public Works 3,176,830 3,171,469 3,063,890 47,626 3,111,516 59,953
Public Works Articles 1,418,942 1,418,943 507,728 890,859 1,398,587 20,356
Street Lighting 93,982 93,982 62,632 - 62,632 31,350
Snow & Ice 650,500 650,500 405,906 - 405,906 244,594
Trash Collection 2,012,000 2,056,801 2,024,995 31,806 2,056,801 -
Total Public Works 7,352,254 7,391,695 6,065,151 970,291 7,035,442 356,253
Health and Human Services:
Health Department 380,400 380,400 327,477 18,115 345,592 34,808
Council on Aging 416,442 416,442 396,739 1,218 397,957 18,485
Council on Aging Articles 48,000 48,000 47,973 - 47,973 27
Veteran's Services 288,790 288,790 234,900 - 234,900 53,890
Total Health and Human Services 1,133,632 1,133,632 1,007,089 19,333 1,026,422 107,210
(continued)
Town of Canton, Massachusetts Page 85 of 129 Comprehensive Annual Financial ReportSource page 94
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2020
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 807,456 816,773 813,973 2,175 816,148 625
Recreation & Playground Articles 44,892 44,892 36,013 8,879 44,892 -
Paul Revere Heritage Comm 1,000 1,000 2,179 - 2,179 (1,179)
Public Library 1,318,501 1,338,762 1,325,384 - 1,325,384 13,378
Public Library Articles 95,695 95,695 72,770 22,715 95,485 210
Total Culture and Recreation 2,267,544 2,297,122 2,250,319 33,769 2,284,088 13,034
Pension Benefits: 5,638,751 5,638,751 5,638,718 - 5,638,718 33
Employee Benefits:
Unemployment Compensation 100,000 100,000 100,000 - 100,000 -
Employer Share- Health 12,456,739 12,456,739 12,452,037 4,325 12,456,362 377
Employer Share- Life 62,250 62,250 59,181 - 59,181 3,069
Employer Share- OPEB 1,030,000 1,030,000 1,030,000 - 1,030,000 -
Total Employee Benefits 13,648,989 13,648,989 13,641,218 4,325 13,645,543 3,446
State and County Charges: 1,218,884 1,218,884 1,186,662 - 1,186,662 32,222
Debt Service: 4,661,063 4,661,063 4,571,497 85,125 4,656,622 4,441
Total Expenditures 103,759,574 103,764,574 97,472,363 4,623,055 102,095,418 1,669,156
Other Financing Sources (Uses)
Transfers in 2,821,230 2,821,230 2,835,977 2,835,977 14,747
Transfers out (874,885) (874,885) (874,885) (874,885) -
Total Other Financing Sources (Uses) 1,946,345 1,946,345 1,961,092 $ 1,961,092 14,747
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (5,527,707) (5,532,707) $ 249,852 $ 1,159,504
Other Budgetary Items
Use of unassigned fund balance $ 1,200,000 $ 1,205,000
Prior year encumbrances 4,327,707 4,327,707
Total Other Budgetary Items 5,527,707 5,532,707
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 86 of 129 Comprehensive Annual Financial ReportSource page 95
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2020
I. Pension Plan
Pension Contributions – The Town contributes to the Norfolk County Retirement System (the
System), a cost-sharing multiple-employer contributory defined benefit pension plan established
under Chapter 32 of Massachusetts General Law Chapter 32. Under provisions of this law,
participating employers are assessed their share of the total retirement cost based on the entry age,
normal actuarial cost method. The pension appropriations are established by the Public Employee
Retirement Administration Commission (PERAC) based on a funding schedule approved by the
System.
Changes in Assumptions – None.
II. Other Postemployment Benefit Plan
The Town administers a single employer defined benefit healthcare plan that provides health, dental
and life insurance benefits (other postemployment benefits) to retirees and their
dependents/beneficiaries in accordance with Section 20 of Massachusetts General Law Chapter 32B.
The Town is not required to fully fund the actuarially determined contribution.
Methods and assumptions used to determine contribution rates are as follows:
Investment rate of return 7.0%, net of OPEB plan investment expense,
including inflation.
Muncipal bond rate 2.66% as of June 30, 2020
Discount Rate 6.00%, net of OPEB plan investment
expense including inflation.
Inflation 2.50% annually as of June 30, 2020 and for future periods
Health Care Trend Rate 4.5%
Salary Increases 3.00% annually as of June 30, 2020 and for future periods
Cost of Living Adjustment Not applicable.
Pre-Retirement Mortality RP-2000 Employees Mortality Table projected generationally
with scale BB and a base year 2009 for males and females
Post-Retirement Mortality RP-2000 Healthy Annuitant Table projected generationally
with scale BB and a base year 2009 for males and females
Disabled Mortality RP-2000 Healthy Annuitant Table projected generationally
with scale BB and a base year 2012 for males and females
Actuarial Cost Method Individual entry age normal
Town of Canton, Massachusetts Page 87 of 129 Comprehensive Annual Financial ReportSource page 96
Changes in Assumptions – The discount rate increased from 5.75% to 6.0%.
III. 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 2020, Town Meeting approved various supplemental budgetary
appropriations which resulted in a $5,000 net increase from the original voted budget.
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, 2020, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 95,761,123
Stabilization revenue $ - $ 902,793 902,793
Change in accruing tax revenues 355,758 - 355,758
Change in recording tax refunds payable 541,974 - 541,974
On behalf payments 11,348,151 - 11,348,151
Revenues on a GAAP basis $ 12,245,883 $ 902,793 $ 108,909,799
Expenditures on a budgetary basis $ 97,472,363
Reclass of enterprise indirects cost to expenditures $ (865,752) $ - (865,752)
Change in accruing payroll expenditures 1,306 - 1,306
On behalf payments 11,348,151 - 11,348,151
Expenditures on a GAAP basis $ 10,483,705 $ - $ 107,956,068
Other financing sources (uses) on a budgetary basis $ 1,961,092
Reclass of enterprise indirects cost to expenditures $ (865,752) $ - (865,752)
Other financing sources (uses) on a GAAP basis $ (865,752) $ - $ 1,095,340
Town of Canton, Massachusetts Page 88 of 129 Comprehensive Annual Financial ReportSource page 97
Combining Statements Town of Canton, Massachusetts Page 89 of 129 Comprehensive Annual Financial Report
Source page 98
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 90 of 129 Comprehensive Annual Financial ReportSource page 99
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 91 of 129 Comprehensive Annual Financial ReportSource page 100
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2020
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 201,226 $ 571,885 $ 759,946 $ 1,591,535 $ 286,029
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 32,125 - - - -
Total Assets $ 233,351 $ 571,885 $ 759,946 $ 1,591,535 $ 286,029
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 5,554 $ - $ 26,860 $ 41,170 $ 10,588
Accrued payroll and withholdings 10,722 - - 18,484 658
Other liabilities - - 325 - -
Due to other funds - - - - -
Total Liabilities 16,276 - 27,185 59,654 11,246
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 217,075 571,885 732,761 1,531,881 274,783
Unassigned - - - - -
Total Fund Balances 217,075 571,885 732,761 1,531,881 274,783
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 233,351 $ 571,885 $ 759,946 $ 1,591,535 $ 286,029
Town of Canton, Massachusetts Page 92 of 129 Comprehensive Annual Financial ReportSource page 101
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ 1,496,530 $ 2,011,131 $ 272,810 $ 2,135,499 $ - $ 3,002,095 $ 12,328,686
- - 245,139 - - - 245,139
- 15,779 - - - - 15,779
- 2,499 - - - - 2,499
298,338 - - - - 525,877 824,215
117,888 - 61,636 145,921 1,267,288 - 1,624,858
$ 1,912,756 $ 2,029,409 $ 579,585 $ 2,281,420 $ 1,267,288 $ 3,527,972 $ 15,041,176
$ 88 $ 24,045 $ 80,438 $ 1,543 $ 45,897 $ 13,869 $ 250,052
- 549 5,060 21,272 - 67,020 123,765
- - - - - - 325
- - 477,150 - 1,210,491 - 1,687,641
88 24,594 562,648 22,815 1,256,388 80,889 2,061,783
- 18,278 - - - - 18,278
298,338 - - - - 114,076 412,414
298,338 18,278 - - - 114,076 430,692
- - - - - - -
1,614,330 1,986,537 429,392 2,258,605 10,900 3,333,007 12,961,156
- - (412,455) - - - (412,455)
1,614,330 1,986,537 16,937 2,258,605 10,900 3,333,007 12,548,701
$ 1,912,756 $ 2,029,409 $ 579,585 $ 2,281,420 $ 1,267,288 $ 3,527,972 $ 15,041,176
Town of Canton, Massachusetts Page 93 of 129 Comprehensive Annual Financial ReportSource page 102
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2020
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Assets:
Cash and cash equivalents $ 33,377 $ 192,920 $ 26,961 $ 253,258 $ 12,581,944
Investments 537,513 417,574 153,655 1,108,742 1,353,881
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 15,779
Tax liens and foreclosures - - - - 2,499
Departmental and other - - - - 824,215
Intergovernmental - - - - 1,624,858
Total Assets $ 570,890 $ 610,494 $ 180,616 $ 1,362,000 $ 16,403,176
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ - $ - $ - $ - $ 250,052
Accrued payroll and withholdings - - - - 123,765
Other liabilities - - - - 325
Due to other funds - - - - 1,687,641
Total Liabilities - - - - 2,061,783
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - 18,278
Unavailable revenues - other - - - - 412,414
Total Deferred Inflows of Resources - - - - 430,692
Fund Balances:
Nonspendable 520,997 21,553 12,235 554,785 554,785
Restricted 49,893 588,941 168,381 807,215 13,768,371
Unassigned - - - - (412,455)
Total Fund Balances 570,890 610,494 180,616 1,362,000 13,910,701
Total Liabilities and Fund Balances $ 570,890 $ 610,494 $ 180,616 $ 1,362,000 $ 16,403,176
(Concluded)
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2020
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Revenues:
Property taxes $ - $ - $ - $ - $ -
Intergovernmental 318,754 - 22,372 - -
Charges for services 538,061 - - - -
Departmental and other - - 147,313 992,000 199,455
Investment income 3,278 - 82 - -
Contributions and donations - - 51,195 - -
Total Revenues 860,093 - 220,962 992,000 199,455
Expenditures:
Current:
General government - 106,334 12,037 - -
Public safety - - 7,557 - -
Education 810,187 - - 1,624,781 -
Public works - - - - -
Health and human services - - 60,981 - -
Culture and recreation - - 36,837 - 264,980
Employee benefits - - - - -
Debt service:
Principal - - - - -
Interest - - - - -
Total Expenditures 810,187 106,334 117,412 1,624,781 264,980
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 49,906 (106,334) 103,550 (632,781) (65,525)
Other Financing Sources (Uses):
Premium from bonds and notes - - - - -
Transfers in - - - 700,000 -
Transfers out (160,500) - (70,000) - -
Total Other Financing Sources (Uses) (160,500) - (70,000) 700,000 -
Net Change in Fund Balances (110,594) (106,334) 33,550 67,219 (65,525)
Fund Balances - Beginning of Year 327,669 678,219 699,211 1,464,662 340,308
Fund Balances - End of Year $ 217,075 $ 571,885 $ 732,761 $ 1,531,881 $ 274,783
Town of Canton, Massachusetts Page 96 of 129 Comprehensive Annual Financial ReportSource page 105
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ - $ 621,465 $ - $ - $ - $ - $ 621,465
146,979 147,419 809,145 3,543,042 1,267,300 - 6,255,011
1,187,781 - - - - - 1,725,842
- 1,651 - - - 2,382,092 3,722,511
- 27,169 16,237 - - 1,111 47,877
- - - - - 346,986 398,181
1,334,760 797,704 825,382 3,543,042 1,267,300 2,730,189 12,770,887
- - 709,085 - - 153,108 980,564
- - 327,167 - - 1,401,590 1,736,314
- - - 3,081,737 - 151,797 5,668,502
- - 152,375 - 1,264,042 - 1,416,417
- - 73,596 - - - 134,577
- 743,791 37,209 - - - 1,082,817
- - - - - 133,963 133,963
- 186,000 - - - - 186,000
- 85,090 - - - - 85,090
- 1,014,881 1,299,432 3,081,737 1,264,042 1,840,458 11,424,244
1,334,760 (217,177) (474,050) 461,305 3,258 889,731 1,346,643
- - - - - 128,603 128,603
- - - - - 174,885 874,885
(1,700,150) - - - - (999,804) (2,930,454)
(1,700,150) - - - - (696,316) (1,926,966)
(365,390) (217,177) (474,050) 461,305 3,258 193,415 (580,323)
1,979,720 2,203,714 490,987 1,797,300 7,642 3,139,592 13,129,024
$ 1,614,330 $ 1,986,537 $ 16,937 $ 2,258,605 $ 10,900 $ 3,333,007 $ 12,548,701
(Continued)
Town of Canton, Massachusetts Page 97 of 129 Comprehensive Annual Financial ReportSource page 106
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2020
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Revenues:
Property taxes $ - $ - $ - $ - $ 621,465
Intergovernmental - - - - 6,255,011
Charges for services - - - - 1,725,842
Departmental and other - - - - 3,722,511
Investment income 27,010 24,160 8,344 59,514 107,391
Contributions and donations 22,400 2,080 - 24,480 422,661
Total Revenues 49,410 26,240 8,344 83,994 12,854,881
Expenditures:
Current:
General government - - 3,598 3,598 984,162
Public safety - - - - 1,736,314
Education - - - - 5,668,502
Public works - - - - 1,416,417
Health and human services - - - - 134,577
Culture and recreation - 2,459 - 2,459 1,085,276
Employee benefits - - - - 133,963
Debt service:
Principal - - - - 186,000
Interest - - - - 85,090
Total Expenditures - 2,459 3,598 6,057 11,430,301
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 49,410 23,781 4,746 77,937 1,424,580
Other Financing Sources (Uses):
Premium from bonds and notes - - - - 128,603
Transfers in - - - - 874,885
Transfers out (5,000) - - (5,000) (2,935,454)
Total Other Financing Sources (Uses) (5,000) - - (5,000) (1,931,966)
Net Change in Fund Balances 44,410 23,781 4,746 72,937 (507,386)
Fund Balances - Beginning of Year 526,480 586,713 175,870 1,289,063 14,418,087
Fund Balances - End of Year $ 570,890 $ 610,494 $ 180,616 $ 1,362,000 $ 13,910,701
(Concluded)
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Internal Service Funds
Narrative
Internal service funds are used to account for the financing of services provided by one department to
other departments or governmental units. The Town’s risk financing activities accounts for in the internal
service funds can be distinctly categorized into the following groupings:
Health Claims – This fund accounts for the group health and dental insurance activity for active Town
employees and retirees.
Workers’ Compensation Claims – This fund accounts for workers’ compensation benefits, replacement
wages and medical claims expenses of employees that qualify for such benefits.
Unemployment Claims – This fund accounts for unemployment benefits for eligible employees.
Building Insurance – This fund accounts for resource accumulated to pay for damage to Town property
that is not covered by liability insurance.
Town of Canton, Massachusetts Page 100 of 129 Comprehensive Annual Financial ReportSource page 109
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2020
Total
Health Workers' Unemployment Building Internal
Claims Compensation Claims Insurance Service Funds
Assets:
Current assets:
Cash and cash equivalents $ 3,114,544 $ 1,848 $ 296,356 $ 21,218 $ 3,433,966
Investments 4,445,886 - - - 4,445,886
Receivables, net of allowance for uncollectibles:
Departmental and other 87,500 - - - 87,500
Prepaid items 897,220 - - - 897,220
Deposit held by third party 61,800 - - - 61,800
Total Current Assets 8,606,950 1,848 296,356 21,218 8,926,372
Liabilities:
Current liabilities:
Warrants and accounts payable 234,192 350 - - 234,542
Health claims incurred but not reported 544,440 - - - 544,440
Total Current Liabilities 778,632 350 - - 778,982
Net Position:
Unrestricted 7,828,318 1,498 296,356 21,218 8,147,390
TOTAL NET POSITION $ 7,828,318 $ 1,498 $ 296,356 $ 21,218 $ 8,147,390
Town of Canton, Massachusetts Page 101 of 129 Comprehensive Annual Financial ReportSource page 110
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2020
Total
Health Workers' Unemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Operating Revenues:
Employee contributions $ 3,831,154 $ - $ - $ - $ 3,831,154
Employer contributions 11,648,194 - 100,000 - 11,748,194
Stop loss reimbursements 2,403,734 - - - 2,403,734
Total Operating Revenues 17,883,082 - 100,000 - 17,983,082
Operating Expenditures:
Employee benefits 14,957,614 2,095 64,503 - 15,024,212
Total Operating Expenditures 14,957,614 2,095 64,503 - 15,024,212
Operating Income (Loss) 2,925,468 (2,095) 35,497 - 2,958,870
Nonoperating Revenues (Expenses):
Investment Income 229,737 64 4,407 966 235,174
Income (Loss) Before Transfers 3,155,205 (2,031) 39,904 966 3,194,044
Change in Net Position 3,155,205 (2,031) 39,904 966 3,194,044
Fund Balances - Beginning of Year 4,673,113 3,529 256,452 20,252 4,953,346
Fund Balances - End of Year $ 7,828,318 $ 1,498 $ 296,356 $ 21,218 $ 8,147,390
Town of Canton, Massachusetts Page 102 of 129 Comprehensive Annual Financial ReportSource page 111
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2020
Total
Health Workers' Umemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Cash Flows From Operating Activities:
Receipts from interfund services provided $ 18,019,977 $ - $ 100,000 $ - $ 18,119,977
Payments for interfund services used (17,226,417) (2,005) (72,062) - (17,300,484)
Net Cash Provided by (Used in) Operating Activities 793,560 (2,005) 27,938 - 819,493
Cash Flows From Investing Activities:
Investment income 229,737 64 4,407 966 235,174
Investment of operating cash (148,343) - - - (148,343)
Net Cash Provided By Investing Activities 81,394 64 4,407 966 86,831
Net Change in Cash and Cash Equivalents 874,954 (1,941) 32,345 966 906,324
Cash and Cash Equivalents:
Beginning of the Year 2,239,590 3,789 264,011 20,252 2,527,642
End of the Year $ 3,114,544 $ 1,848 $ 296,356 $ 21,218 $ 3,433,966
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss) 2,925,468 (2,095) 35,497 - 2,958,870
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables 136,895 - - - 136,895
Prepaid items (897,220) - - - (897,220)
Accounts payable and accrued expenses (1,031,390) 90 (7,559) - (1,038,859)
Health claims incurred but not reported (340,193) - - - (340,193)
Net Cash Provided by (Used in) Operating Activities $ 793,560 $ (2,005) $ 27,938 $ - $ 819,493
Town of Canton, Massachusetts Page 103 of 129 Comprehensive Annual Financial ReportSource page 112
Fiduciary Funds
Agency Funds –
Agency funds are used to account for assets maintained in a custodial capacity. Such activities primarily
consist of performance bonds, other escrow deposits, school student activity deposits.
Town of Canton, Massachusetts Page 104 of 129 Comprehensive Annual Financial ReportSource page 113
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2020
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents $ 1,024,486 $ 400,192 $ (374,096) $ 1,050,582
Liabilities
Current liabilities:
Warrants payable $ 25,385 $ 381,437 $ (342,483) $ 64,339
Agency liabilities 999,101 403,555 (416,413) 986,243
Total Liabilities $ 1,024,486 $ 784,992 $ (758,896) $ 1,050,582
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STATISTICAL SECTION
In October 2020, the Fire Department was pleased to receive delivery of its brand, new ambulance. The
2020 Ford F550 4x4 Horton Type 1 ambulance features a Stryker power loading system, a Lucas chest
compression device and a LifePac 15 cardiac monitor amongst many other state-of -the-art advanced life
saving features. The purchase of the new ambulance was part of the Town’s six-year capital
improvement plan to replace vehicles and equipment of all departments.
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Statistical Section
This part of the comprehensive annual financial report presents information as a context for understanding
what the information in the financial statements, note disclosures, and required supplementary
information says about the Town’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the Town’s financial
performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the Town’s most significant local revenue
source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the Town’s current
levels of outstanding debt, and the Town’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Town’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the Town’s financial report relates to the services the Town provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the financial
statements for the relevant year.
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NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
2011 2012 (1) 2013 2014 2015 (2) 2016 2017 2018 (3) 2019 2020
Governmental activities:
Net investment in capital assets…………………………….
$ 62,056,797 $ 63,962,326 $ 61,957,511 $ 70,116,230 $ 76,109,604 $ 78,591,436 $ 78,738,423 $ 81,317,923 $ 85,225,980 $ 85,368,370
Restricted………………………………………………………………………….. 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548 10,880,921 10,431,283 12,654,553
Unrestricted……………………………………………………………… (3,861,890) (8,796,940) (14,921,000) (23,682,247) (57,308,073) (55,970,281) (57,041,754) (86,179,993) (97,227,078) (92,984,331)
Total governmental activities net position………………………………………..
$ 65,652,451 $ 61,940,036 $ 57,805,364 $ 55,346,471 $ 27,995,047 $ 31,627,703 $ 32,339,217 $ 6,018,851 $ (1,569,815) $ 5,038,592
Business-type activities:
Net investment in capital assets…………………………….
$ 17,195,414 $ 16,033,950 $ 16,381,614 $ 15,743,697 $ 16,386,618 $ 17,457,708 $ 18,785,822 $ 20,603,290 $ 23,248,847 $ 28,388,654
Unrestricted………………………………………………………………. 2,796,789 4,362,212 4,030,576 6,399,642 6,342,679 9,040,938 8,905,131 7,446,856 7,149,422 5,660,684
Total business-type activities net position…………………………….
$ 19,992,203 $ 20,396,162 $ 20,412,190 $ 22,143,339 $ 22,729,297 $ 26,498,646 $ 27,690,953 $ 28,050,146 $ 30,398,269 $ 34,049,338
Primary government:
Net investment in capital assets…………………………….
$ 79,252,211 $ 79,996,276 $ 78,339,125 $ 85,859,927 $ 92,496,222 $ 96,049,144 $ 97,524,245 $ 101,921,213 $ 108,474,827 $ 113,757,024
Restricted………………………………………………………………………. 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548 10,880,921 10,431,283 12,654,553
Unrestricted…………………………………………………………… (1,065,101) (4,434,728) (10,890,424) (17,282,605) (50,965,394) (46,929,343) (48,136,623) (78,733,137) (90,077,656) (87,323,647)
Total primary government net position………………………………………………….
$ 85,644,654 $ 82,336,198 $ 78,217,554 $ 77,489,810 $ 50,724,344 $ 58,126,349 $ 60,030,170 $ 34,068,997 $ 28,828,454 $ 39,087,930
(1) In fiscal year 2012, the Town restated its liability for other post employment benefits. This resulted in a prior period restatement decreasing governmental activities beginning balance and increasing business-type
activities beginning balance by $161,000 and $262,000, respectively, as of July 1, 2011.
(2) In fiscal year 2015, the Town restated its net pension liability. This resulted in a prior period restatement decreasing governmental activities and business-type activities beginning balances by
$34,589,481 and $2,341,420, respectively, as of July 1, 2014.
(3) In fiscal year 2018, the Town restated its net other postemployment liability. This resulted in a prior period restatement decreasing governmental activities and business-type beginning balances by
$28,907,860 and $1,180,102, respectively, as of July 1, 2017.
Town of Canton, Massachusetts Page 111 of 129 Comprehensive Annual Financial ReportSource page 120
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2011 2012 2013 2014 2015 2016 (1) 2017 (1) 2018 (1) 2019 (1) 2020 (1)
Expenses -
Governmental activities:
General government…...…………………………………………………… $ 6,012,221 $ 5,898,196 $ 5,809,111 $ 6,231,894 $ 5,683,805 $ 5,764,062 $ 5,965,196 $ 5,578,489 $ 6,597,325 $ 6,967,692
Public safety…..……………………………………………………………… 14,845,911 15,490,670 16,060,024 16,660,306 15,312,760 16,584,359 17,532,705 19,250,042 20,028,852 20,016,807
Education……..…………………………………………………………………. 57,174,814 58,649,480 61,782,205 64,153,101 54,772,830 60,963,021 68,325,037 70,396,176 72,945,712 74,489,136
Public works……...………………………………………………………………. 5,964,437 5,703,015 6,286,770 6,419,350 7,227,459 7,581,355 7,658,668 7,911,117 8,254,354 8,039,489
Health and human services……………...…………………………………………………………….
1,133,985 1,221,862 1,314,086 1,346,871 1,609,060 1,536,513 1,684,833 1,635,120 1,598,126 1,620,371
Culture and recreation………...…………………………………………………………..
2,882,803 2,944,861 2,985,722 3,123,867 3,006,143 3,698,331 3,683,115 3,768,025 4,763,997 3,868,895
Interest…………………………………………………………………… 1,797,797 1,664,859 1,668,538 1,557,660 722,667 672,768 636,035 659,834 595,390 638,638
Total government activities expenses…………………………………….. 89,811,968 91,572,943 95,906,456 99,493,049 88,334,724 96,800,409 105,485,589 109,198,803 114,783,756 115,641,028
Business-type activities:
Water…………………………………………………………………… 4,968,675 5,456,431 5,853,408 5,225,383 5,253,139 5,692,320 6,141,278 7,105,456 6,656,972 7,398,151
Sewer…………………………………………………………………… 4,819,406 5,084,191 5,173,053 5,366,166 5,416,303 5,925,780 6,191,663 6,275,549 6,415,007 6,473,346
Rink…………………………………………………………………… 504,265 496,394 390,072 353,666 405,752 79,670 61,792 13,498 15,301 47,458
Total business-type activities expenses…………………………………….. 10,292,346 11,037,016 11,416,533 10,945,215 11,075,194 11,697,770 12,394,733 13,394,503 13,087,280 13,918,955
Total primary government expenses………………………………………. $ 100,104,314 $ 102,609,959 $ 107,322,989 $ 110,438,264 $ 99,409,918 $ 108,498,179 $ 117,880,322 $ 122,593,306 $ 127,871,036 $ 129,559,983
Program Revenues -
Governmental activities:
Charges for services:
General government………………………………………………… $ 385,778 $ 325,814 $ 554,773 $ 978,216 $ 881,979 $ 776,450 $ 563,303 $ 629,653 $ 1,072,993 $ 527,241
Public safety……………………………………………………………….. 2,036,855 2,292,477 2,790,608 2,595,617 2,908,421 3,123,869 2,778,390 3,575,574 3,553,243 4,102,459
Education………………………………………………………………. 2,143,729 2,155,031 2,253,878 2,632,798 2,640,969 2,788,752 2,328,949 2,463,638 2,402,968 1,680,802
Public works………………………………………………………………. 92,920 125,694 210,642 227,108 281,025 316,164 267,218 308,449 293,344 251,233
Human services………………………………………………………………. 46,661 66,462 85,978 91,484 151,953 97,633 101,977 107,678 95,143 96,066
Culture and recreation……………………………………………………… 346,254 528,937 396,771 359,497 399,396 468,374 460,175 436,273 490,079 269,575
Operating grants and contributions…………………………………… 15,381,360 16,776,734 16,961,153 18,811,622 13,609,976 15,841,950 18,253,254 19,405,225 20,992,327 23,414,891
Capital grants and contributions………………………………………….. 162,497 1,659,561 550,999 611,930 2,832,069 1,562,827 922,822 2,293,126 795,169 2,963,184
Total government activities program revenues...…………………………….. 20,596,054 23,930,710 23,804,802 26,308,272 23,705,788 24,976,019 25,676,088 29,219,616 29,695,266 33,305,451
Business-type activities:
Charges for services - Water…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
6,965,364 6,672,927 6,702,942 6,943,731 7,011,223 7,084,917 6,929,539 7,186,664 6,631,764 7,007,031
Charges for services - Sewer…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
4,965,133 5,227,905 5,344,425 6,045,829 6,559,894 6,517,066 6,560,287 7,143,471 6,798,905 6,960,457
Charges for services - Rink…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
430,878 446,111 431,671 429,555 367,098 - - - - -
Capital grant and contributions…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
- - - 463,500 - - - 5,625 450,000 2,515,469
Operating grants and contributions……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
- - - 6,250 37,338 2,093 80,960 - - -
Total business-type activities program revenues……………………………………..
12,361,375 12,346,943 12,479,038 13,888,865 13,975,553 13,604,076 13,570,786 14,335,760 13,880,669 16,482,957
Total primary government program revenues……………………………………….
$ 32,957,429 $ 36,277,653 $ 36,283,840 $ 40,197,137 $ 37,681,341 $ 38,580,095 $ 39,246,874 $ 43,555,376 $ 43,575,935 $ 49,788,408
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..
$ (69,215,914) $ (67,642,233) $ (72,101,654) $ (73,184,777) $ (64,628,936) $ (71,824,390) $ (79,809,501) $ (79,979,187) $ (85,088,490) $ (82,335,577)
Business-type activities……………………....…………………………….. 2,069,029 1,309,927 1,062,505 2,943,650 2,900,359 1,906,306 1,176,053 941,257 793,389 2,564,002
Total primary government net (expense)/program revenue……………………………………….
$ (67,146,885) $ (66,332,306) $ (71,039,149) $ (70,241,127) $ (61,728,577) $ (69,918,084) $ (78,633,448) $ (79,037,930) $ (84,295,101) $ (79,771,575)
(1) The roof of the Rink partially collapsed due to storm damage which has temporarily suspended operations and has led to a decrease in activity in the Rink Enterprise fund. (continued)
Town of Canton, Massachusetts Page 112 of 129 Comprehensive Annual Financial Report