Canton, Massachusetts · Saved source text
Fiscal Year 2018 Comprehensive Annual Financial Report
Saved text from 136 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
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, 2018:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at June 30, 2017 $ 86,413,049 $ 2,008,350 $ 84,404,699
Changes for the year:
Service cost 2,515,860 - 2,515,860
Interest 4,590,666 - 4,590,666
Net investment income - 202,021 (202,021)
Employer contributions - 3,783,880 (3,783,880)
Benefit payments withdrawn from trust - (3,013,880) 3,013,880
Benefit payments (3,013,880) - (3,013,880)
Net changes 4,092,646 972,021 3,120,625
Balances at June 30, 2018 $ 90,505,695 $ 2,980,371 $ 87,525,324
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year
ended June 30, 3018, the Town recognized OPEB expense of $6,936,269. Deferred outflows of
resources and deferred inflows of resources related to OPEB at June 30, 2018 were reported as
follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to the measurement date $ 3,839,350 $ -
Differences between expected and actual earnings - 31,764
$ 3,839,350 $ 31,764
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
2019 $ 3,831,409
2020 (7,941)
2021 (7,941)
2022 (7,941)
2023 -
$ 3,807,586
Contributions made subsequent to the measurement date are amortized to expense in one year.
Town of Canton, Massachusetts Page 73 of 128 Comprehensive Annual Financial ReportSource page 82
GASB Statement No. 74
OPEB Plan disclosures that impact the Town’s net OPEB liability using a Plan year-end date of
June 30, 2018 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,
International Equity, Domestic Fixed Income, International Fixed Income and Alternative
Investments with target allocations of 30%, 15%, 25%, 10% and 20% respectively.
Investment Rate of Return – For the year ended June 30, 2018 the annual money-weighted rate of
return on investments, net of investment expense, was 5.05%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
Sensitivity Analyses – The following presents the Town’s net OPEB liability as well as what the
Town’s net OPEB liability would be if it were calculated using a discount rate that is 1% lower or
1% higher than the current discount rate as well as if the healthcare cost trend rates are 1% lower
or higher than the current healthcare cost trend rates:
Discount Rate
1% Decrease (4.25%) Trend Rate (5.25%) 1% Increase (6.25%)
Net OPEB Liability $ 105,687,175 $ 90,655,716 $ 78,540,401
Service Cost 3,507,682 2,675,741 2,064,839
Health Care Rate
1% Decrease (4%) Current (5%) 1% Increase (6%)
Net OPEB Liability $ 73,375,866 $ 90,655,716 $ 112,677,281
Service Cost 1,872,752 2,675,741 3,770,986
Actuarial Assumptions – Actuarial assumptions are identical to those under GASB 75 except the
Municipal Bond Rate is 3.45%.
Town of Canton, Massachusetts Page 74 of 128 Comprehensive Annual Financial ReportSource page 83
Net OPEB Liability – The Town’s net OPEB liability was measured as of June 30, 2018 using an
actuarial valuation as of July 1, 2016. The components of the net OPEB liability of the Town at
June 30, 2018 were as follows:
Total OPEB Liability $ 94,811,510
Plan fiduciary net position (4,155,794)
Net OPEB liability $ 90,655,716
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, 2018, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $878,641. 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. Changes in the reported liability
since July 1, 2016, are as follows:
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2018 $ 878,641 $ 12,690,057 $(12,690,057) $ 878,641 $ 878,641
Fiscal Year 2017 740,988 13,255,882 (13,118,229) 878,641 878,641
Workers’ Compensation – The Town is also self-insured for their workers’ compensation
activities which are accounted for in the Internal Service Fund. Workers’ compensation claims
are administered by a third-party and are funded on a pay-as-you-go basis from annual
appropriations. The Town is premium based for all claims after July 1, 2008. The Town
purchases individual stop loss insurance in excess of the coverage provided in the amount of
$300,000. The estimated future workers’ compensation liability is not material at June 30, 2018
and is therefore not reported.
Town of Canton, Massachusetts Page 75 of 128 Comprehensive Annual Financial ReportSource page 84
E. Commitments
The Town has entered or is planning to enter into contracts for various projects for which it has
authorized approximately $20.0 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, 2018, 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, 2018. 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. Tax Abatements
The Town enters into property tax abatements with local businesses as an incentive for economic
growth, including expansion of current facilities and job opportunities for local residents. The
agreements are commonly referred to as tax increment financing, or TIF, agreements. Under
Massachusetts General Law Chapter 40, Section 59, property owners may be granted property tax
abatements of up to 100% of the value of a tax increment for a maximum term of twenty years
provided the property is located in a TIF zone. TIF zones are approved by the Massachusetts
Economic Assistance Coordinating Council. Furthermore, the Town Meeting must approve all
TIF agreements.
The Town has three such agreements for which the assessed value of the related properties have
been reduced by a percentage between 20 and 70 percent of the incremental assessed value. For
the fiscal year ended June 30, 2018, the Town’s total tax revenues were reduced by approximately
$1.1 million as a result of these tax abatement agreements.
H. Implementation of GASB pronouncements
Current Year Implementations –
In June 2015, the GASB issued GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pension Plans. GASB 75 established new accounting
and financial reporting requirements for governments whose employees are provided with OPEB,
as well as for certain nonemployer governments that have a legal obligation to provide financial
support for OPEB provided to the employees of other entities. The provisions of this Statement
became effective in fiscal year 2018. The adoption of GASB No. 75 resulted in a reduction in
beginning net position of approximately $28.9 million and $1.2 million in the Town’s
governmental and business-type activities, respectively. Refer to Note IV.
Town of Canton, Massachusetts Page 76 of 128 Comprehensive Annual Financial ReportSource page 85
In March 2016, the GASB issued GASB Statement No. 81, Irrevocable Split-Interest
Agreements. The objective of the Statement was to improve accounting and financial reporting
for irrevocable split-interest agreements by providing recognition and measurement guidance for
situations in which a government is a beneficiary of the agreement. The provisions of this
Statement became effective in fiscal year 2018 and did not have a material impact on the Town’s
financial statements.
In May 2017, the GASB issued GASB Statement No. 86, Certain Debt Extinguishment Issues.
The objective of the Statement was to improve consistency in accounting and financial reporting
for in-substance defeasance of debt. The provisions of this Statement became effective in fiscal
year 2018 and did not have a material impact on the Town’s financial statements.
Future Implementations –
In November 2016, the GASB issued GASB Statement No. 83, Certain Asset Retirement
Obligations. The objective of the Statement is to address accounting and financial reporting for
certain asset retirement obligations that have legally enforceable liability associated with the
retirement of a tangible capital asset. The provisions of this Statement are effective for financial
reporting periods beginning after June 15, 2018 (fiscal year 2019). The Town is currently
evaluating whether adoption will have a material impact on the financial statements.
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. The
provisions of this Statement are effective for financial reporting periods beginning after
December 15, 2018 (fiscal year 2020). 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. 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 April 2018, the GASB issued GASB Statement No. 88, Certain Disclosures Related to Debt,
Including Direct Borrowings and Direct Placements. The objective of this Statement is to
improve the information that is disclosed in notes to government financial statements related to
debt, including direct borrowings and direct placements. It also clarifies which liabilities
governments should include when disclosing information related to debt. The provisions of this
Statement are effective for financial reporting periods beginning after June 15, 2018 (fiscal year
2019). 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. 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.
Town of Canton, Massachusetts Page 77 of 128 Comprehensive Annual Financial ReportSource page 86
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. The provisions of this Statement are effective for financial reporting
periods beginning after December 15, 2018 (fiscal year 2020). The Town is currently evaluating
whether adoption will have a material impact on the financial statements.
IV. Prior Period Restatements
The Town adopted GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions, in fiscal year 2018. Previously, OPEB was
accounted for under GASB Statement No. 45, Accounting and Financial Reporting by Employers
for Postemployment Benefits Other Than Pensions. The result of the adoption of GASB
Statement No. 75 was to eliminate the net OPEB obligation recorded in the Town financial
statements and record the net OPEB liability at June 30, 2017.
The impact is illustrated in the table below:
Proprietary Funds
Governmental Business Type Water Sewer Rink
Net position at June 30, 2017, as reported $ 32,339,217 $ 27,690,953 $ 15,277,729 $ 10,684,319 $ 1,728,905
Eliminate previously recorded OPEB obligation 48,963,151 1,744,236 1,016,195 456,947 271,094
Contribution after measurement date 3,583,166 26,184 18,161 6,831 1,192
Record net OPEB liability (81,454,177) (2,950,522) (2,023,078) (796,909) (130,535)
Net position at June 30, 2017, as restated $ 3,431,357 $ 26,510,851 $ 14,289,007 $ 10,351,188 $ 1,870,656
Town of Canton, Massachusetts Page 78 of 128 Comprehensive Annual Financial ReportSource page 87
Required Supplementary Information Town of Canton, Massachusetts Page 79 of 128 Comprehensive Annual Financial Report
Source page 88
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2018
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
(dollar amounts are in thousands)
Year Ended June 30,
2018 2017 2016 2015
Town's proportion of the net pension
liability (asset) 7.49% 7.65% 7.65% 7.56%
Town's proportionate share of the net
pension liability (asset) $ 41,437 $ 39,940 $ 41,562 $ 39,227
Town's covered payroll $ 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 188.2% 191.8% 204.9% 204.9%
Plan fiduciary net position as a percentage
of the total pension liability 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,
2018 2017 2016 2015
Actuarially determined contribution $ 4,796 $ 4,394 $ 3,991 $ 3,571
Contributions in relation to the
actuarially determined contribution 4,796 4,394 3,991 3,571
Contribution deficiency (excess) $ - $ - $ - $ -
Town's covered payroll $ 22,021 $ 20,827 $ 20,288 $ 19,140
Contributions as a percentage of
covered payroll 21.8% 21.1% 19.7% 18.7%
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 128 Comprehensive Annual Financial ReportSource page 89
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2018
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,
2017 2016 2015 2014
Commonwealth's proportion of the
collective net pension liability (asset) 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%
Commonwealth's proportionate share of
the net pension liability (asset) $ 22,885,391 $ 22,357,928 $ 20,489,643 $ 15,896,354
Commonwealth's actuarially
determined contribution $ 1,235,515 $ 1,124,583 $ 1,021,930 $ 937,379
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 128 Comprehensive Annual Financial ReportSource page 90
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2018
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Year Ended June 30,
2018 2017
Total OPEB liability:
Service cost $ 2,675,741 $ 2,515,860
Interest 4,809,630 4,590,666
Benefit payments (3,179,556) (3,013,880)
Net change in total OPEB liability 4,305,815 4,092,646
Total OPEB liability - beginning of year 90,505,695 86,413,049
Total OPEB liability - end of year (a) $ 94,811,510 $ 90,505,695
Plan fiduciary net position:
Contributions - employer $ 4,179,556 $ 3,783,880
Net investment income 175,423 202,021
Benefit payments (3,179,556) (3,013,880)
Net change in Plan fiduciary net position 1,175,423 972,021
Plan fiduciary net position - beginning of year 2,980,371 2,008,350
Plan fiduciary net position - end of year (b) $ 4,155,794 $ 2,980,371
Net OPEB liability - end of year (a) - (b) $ 90,655,716 $ 87,525,324
Plan fiduciary net position as a percentage of the total
OPEB liability 4.38% 3.29%
Covered payroll $ 45,486,461 $ 44,161,613
Net OPEB liability as a percentage of covered payroll 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.
Note: This schedule is presented using the optional format of combining the required schedules
in paragraph 36a and 36b of GASB 74.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 82 of 128 Comprehensive Annual Financial ReportSource page 91
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2018
SCHEDULE OF CONTRIBUTIONS
Year Ended June 30,
2018 2017
Actuarially-determined contribution $ 8,240,517 $ 7,882,229
Contributions in relation to the actuarially-
determined contribution (4,179,556) (3,783,880)
Contribution deficiency (excess) $ 4,060,961 $ 4,098,349
Covered payroll $ 45,486,461 $ 44,161,613
Contribution as a percentage of covered payroll 9.19% 8.57%
Valuation Date July 1, 2016 July 1, 2016
Amortization Period 30 years 30 years
Investment rate of return 6.80% 6.97%
Municipal bond rate 3.45% 3.13%
Single equivalent discount rate 5.25% 5.25%
Inflation 2.75% 2.75%
Healthcare cost trend rates 5.00% 5.00%
Salary increases 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,
2018 2017
Annual money-weighted rate of return, net of
investment expense 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 128 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, 2018
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 72,975,332 $ 72,975,332 $ 73,016,569 73,016,569 41,237
Tax title - - 297,266 297,266 297,266
Payments in lieu of taxes 236,816 236,816 236,816 236,816 -
Motor vehicle excise 3,865,000 3,865,000 4,703,198 4,703,198 838,198
Meals taxes 325,000 325,000 373,495 373,495 48,495
Room occupancy excise 225,000 225,000 230,326 230,326 5,326
77,627,148 77,627,148 78,857,670 - 78,857,670 1,230,522
Intergovernmental:
State aid - chapter 70 6,027,495 6,027,495 6,027,495 6,027,495 -
State aid - charter school 41,960 41,960 29,849 29,849 (12,111)
State aid - unrestricted 2,142,288 2,142,288 2,142,288 2,142,288 -
State aid - veterans 139,982 139,982 142,565 142,565 2,583
State aid - exemptions 142,601 142,601 138,774 138,774 (3,827)
State aid - state owned land 37,835 37,835 37,835 37,835 -
State aid - other 100,000 100,000 255,523 255,523 155,523
MSBA school construction reimbursement 456,305 456,305 456,305 456,305 -
9,088,466 9,088,466 9,230,634 - 9,230,634 142,168
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 38,500 - 38,500 (1,500)
Town clerk fees 30,000 30,000 36,370 - 36,370 6,370
Public safety detail fees 30,000 30,000 40,121 - 40,121 10,121
Other departmental fees 50,000 50,000 35,470 - 35,470 (14,530)
Rental of municipal property 200,000 200,000 200,528 - 200,528 528
Conservation department revenues 32,000 32,000 55,585 - 55,585 23,585
Grave openings and care 30,000 30,000 46,439 - 46,439 16,439
Solar revenues 331,144 331,144 507,845 - 507,845 176,701
Other departmental revenues 25,000 25,000 125,350 - 125,350 100,350
768,144 768,144 1,086,208 - 1,086,208 318,064
Licenses and permits:
Alcohol licenses 70,000 70,000 85,525 - 85,525 15,525
Other licenses 80,000 80,000 84,858 - 84,858 4,858
Building permits 640,000 640,000 1,037,673 - 1,037,673 397,673
Other permits 10,000 10,000 27,100 - 27,100 17,100
800,000 800,000 1,235,156 - 1,235,156 435,156
Fines and forfeitures:
Motor vehicle fines 75,000 75,000 107,859 - 107,859 32,859
Other fines 5,000 5,000 7,046 - 7,046 2,046
80,000 80,000 114,905 - 114,905 34,905
Penalties and interest on taxes 300,000 300,000 364,795 - 364,795 64,795
Interest and investment income 100,000 100,000 265,773 - 265,773 165,773
Total Revenues 88,763,758 88,763,758 91,155,141 - 91,155,141 2,391,383
Town of Canton, Massachusetts Page 84 of 128 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, 2018
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,045,529 1,045,529 974,162 7,546 981,708 63,821
Executive Branch Articles 205,000 205,000 176,140 28,860 205,000 -
Commitees and Commissions 35,768 35,768 24,068 - 24,068 11,700
Reserve Fund 500,000 - - - - -
Finance Department 1,111,130 1,111,130 1,017,856 80,586 1,098,442 12,688
Finance Department Articles 199,948 199,948 195,273 4,675 199,948 -
Assessors 358,942 358,942 301,612 52,500 354,112 4,830
Town Clerk & Elections 238,292 238,292 233,369 - 233,369 4,923
Town Clerk & Elections Articles 48,956 48,956 42,802 5,756 48,558 398
Conservation Commission 140,734 140,734 128,440 630 129,070 11,664
Conservation Commission Articles 37,479 37,479 14,044 23,435 37,479 -
Planning Board 67,587 67,587 63,266 2,771 66,037 1,550
Planning Board Articles 150,000 150,000 8,239 141,761 150,000 -
Town Insurance 1,215,918 1,215,918 1,076,813 4,015 1,080,828 135,090
Total General Government 5,355,283 4,855,283 4,256,084 352,535 4,608,619 246,664
Public Safety
Fire Department 5,780,859 6,130,859 6,064,291 9,370 6,073,661 57,198
Police Department 5,019,621 5,019,621 4,963,632 49,362 5,012,994 6,627
Police Department Articles 209,621 209,621 77,306 132,315 209,621 -
Building & Zoning 387,591 387,591 341,065 9,478 350,543 37,048
Total Public Safety 11,397,692 11,747,692 11,446,294 200,525 11,646,819 100,873
Education:
School 42,761,509 42,761,509 39,963,730 2,797,779 42,761,509 -
School Articles 938,524 1,038,524 809,802 207,781 1,017,583 20,941
Blue Hill Regional 1,164,066 1,164,066 1,160,586 - 1,160,586 3,480
Norfolk County Agricultural HS 20,000 20,000 14,696 - 14,696 5,304
Total Education 44,884,099 44,984,099 41,948,814 3,005,560 44,954,374 29,725
Public Works:
Public Works 2,938,117 2,938,117 2,866,687 70,992 2,937,679 438
Public Works Articles 643,815 673,815 248,946 421,215 670,161 3,654
Street Lighting 101,401 101,401 88,745 10,966 99,711 1,690
Snow & Ice 600,500 775,500 774,115 - 774,115 1,385
Trash Collection 1,961,119 1,961,119 1,895,014 47,775 1,942,789 18,330
Total Public Works 6,244,952 6,449,952 5,873,507 550,948 6,424,455 25,497
Health and Human Services:
Health Department 373,622 373,622 334,471 - 334,471 39,151
Council on Aging 397,207 397,207 381,610 1,191 382,801 14,406
Veteran's Services 292,909 292,909 250,964 - 250,964 41,945
Total Health and Human Services 1,063,738 1,063,738 967,045 1,191 968,236 95,502
(continued)
Town of Canton, Massachusetts Page 85 of 128 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, 2018
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 722,200 722,200 658,724 1,690 660,414 61,786
Recreation & Playground Articles 130,635 165,635 113,139 52,309 165,448 187
Public Library 1,296,802 1,296,802 1,267,648 19,453 1,287,101 9,701
Public Library Articles 14,174 14,174 5,834 8,340 14,174 -
Walk, Bike and Hike Committee 1,000 1,000 - - - 1,000
Total Culture and Recreation 2,164,811 2,199,811 2,045,345 81,792 2,127,137 72,674
Pension Benefits: 4,799,947 4,799,947 4,799,914 - 4,799,914 33
Employee Benefits:
Unemployment Compensation 100,000 100,000 100,000 - 100,000 -
Employer Share- Health 12,090,467 12,200,467 12,133,261 - 12,133,261 67,206
Employer Share- Life 60,000 60,000 59,994 - 59,994 6
Employer Share- OPEB 1,000,000 1,000,000 1,000,000 - 1,000,000 -
Total Employee Benefits 13,250,467 13,360,467 13,293,255 - 13,293,255 67,212
State and County Charges: 1,057,233 1,057,233 1,015,303 - 1,015,303 41,930
Debt Service: 4,892,533 4,892,533 4,867,836 - 4,867,836 24,697
Total Expenditures 95,110,755 95,410,755 90,513,397 4,192,551 94,705,948 704,807
Other Financing Sources (Uses)
Transfers in 2,009,380 2,159,380 2,159,380 2,159,380 -
Transfers out (80,000) (2,033,042) (2,033,042) (2,033,042) -
Total Other Financing Sources (Uses) 1,929,380 126,338 126,338 $ 126,338 -
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (4,417,617) (6,520,659) $ 768,082 $ 3,096,190
Other Budgetary Items
Use of unassigned fund balance $ 455,000 $ 2,558,042
Prior year encumbrances 3,962,617 3,962,617
Total Other Budgetary Items 4,417,617 6,520,659
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 128 Comprehensive Annual Financial ReportSource page 95
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2018
I. Budgetary Basis of Accounting
Budgetary Information – An annual budget is legally adopted for the General Fund and the Enterprise
Fund. The budget is recommended by the Finance Committee and approved by Town Meeting at the
Town’s annual meeting in May. Changes subsequent to the approved Town Meeting budget require
majority Town Meeting approval at a Special Town Meeting. Expenditures may not legally exceed
appropriations at the department level. Department heads may transfer, without Town Meeting
approval, appropriation balances from one account to another within their department or budget, and
within the categories of salaries and expenses. At the close of each fiscal year, unencumbered
appropriation balances lapse and revert to unassigned fund balance.
The Town adopts an annual budget for the general fund in conformity with the guidelines described
above. During fiscal year 2018, Town Meeting approved various supplemental budgetary
appropriations which resulted in a net increase of approximately $2.2 million from the original voted
budget. These appropriations were primarily utilized for snow and ice removal ($175,000), capital
funding ($553,042) and increased stabilization and other reserves ($1,200,000).
The Town Accountant has the responsibility to ensure that budgetary control is maintained in the
manner in which the appropriations were voted by Town Meeting. Budgetary control is exercised
through the Town’s accounting system.
Budgetary-to-GAAP Reconciliation – The Town’s general fund is prepared on a basis of accounting
other than GAAP. A reconciliation of the budgetary-basis to GAAP-basis results for the General Fund
for the fiscal year ended June 30, 2018, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 91,155,141
Stabilization revenue $ - $ 136,675 136,675
Change in accruing tax revenues (43,497) - (43,497)
Change in recording tax refunds payable 699,204 - 699,204
On behalf payments 8,933,858 - 8,933,858
Revenues on a GAAP basis $ 9,589,565 $ 136,675 $ 100,881,381
Expenditures on a budgetary basis $ 90,513,397
Reclass of enterprise indirects cost to expenditures $ (873,690) $ - (873,690)
Change in accruing payroll expenditures 103,228 - 103,228
Refunding transactions 6,192 - 6,192
On behalf payments 8,933,858 - 8,933,858
Expenditures on a GAAP basis $ 8,169,588 $ - $ 98,682,985
Other financing sources (uses) on a budgetary basis $ 126,338
Reclass of enterprise indirects cost to expenditures $ (873,690) $ - (873,690)
Refunding transactions 6,192 - 6,192
Stabilization transfers - 488,854 488,854
Other financing sources (uses) on a GAAP basis $ (867,498) $ 488,854 $ (252,306)
Town of Canton, Massachusetts Page 87 of 128 Comprehensive Annual Financial ReportSource page 96
This page intentionally left blank. Town of Canton, Massachusetts Page 88 of 128 Comprehensive Annual Financial Report
Source page 97
Combining Statements Town of Canton, Massachusetts Page 89 of 128 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 128 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 128 Comprehensive Annual Financial ReportSource page 100
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2018
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 310,104 $ 919,477 $ 699,514 $ 1,717,259 $ 302,833
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 29,141 - - - -
Total Assets $ 339,245 $ 919,477 $ 699,514 $ 1,717,259 $ 302,833
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 3,217 $ 5,068 $ 37,652 $ 21,285 $ 12,355
Accrued payroll and withholdings 7,261 - 39 26,776 3,953
Other liabilities - - 5,100 - -
Due to other funds - - - - -
Total Liabilities 10,478 5,068 42,791 48,061 16,308
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 328,767 914,409 656,723 1,669,198 286,525
Total Fund Balances 328,767 914,409 656,723 1,669,198 286,525
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 339,245 $ 919,477 $ 699,514 $ 1,717,259 $ 302,833
Town of Canton, Massachusetts Page 92 of 128 Comprehensive Annual Financial ReportSource page 101
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ 1,862,791 $ 2,425,009 $ 57,494 $ 213,932 $ - $ 2,626,985 $ 11,135,398
- - 553,263 - - - 553,263
- 3,278 - - - - 3,278
- 3,382 - - - - 3,382
398,056 - - - - 92,230 490,286
- - 41,540 620,352 857,050 - 1,548,083
$ 2,260,847 $ 2,431,669 $ 652,297 $ 834,284 $ 857,050 $ 2,719,215 $ 13,733,690
$ - $ 11,480 $ 28,105 $ 19,130 $ - $ 40,193 $ 178,485
- - 1,970 74,686 - 26,631 141,316
- - - - - - 5,100
- - - - 854,784 - 854,784
- 11,480 30,075 93,816 854,784 66,824 1,179,685
- 6,660 - - - - 6,660
398,056 - - - - - 398,056
398,056 6,660 - - - - 404,716
- - - - - - -
1,862,791 2,413,529 622,222 740,468 2,266 2,652,391 12,149,289
1,862,791 2,413,529 622,222 740,468 2,266 2,652,391 12,149,289
$ 2,260,847 $ 2,431,669 $ 652,297 $ 834,284 $ 857,050 $ 2,719,215 $ 13,733,690
Town of Canton, Massachusetts Page 93 of 128 Comprehensive Annual Financial ReportSource page 102
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2018
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 $ 77,377 $ 187,812 $ 24,146 $ 289,335 $ 11,424,733
Investments 425,955 390,999 149,084 966,038 1,519,301
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 3,278
Tax liens and foreclosures - - - - 3,382
Departmental and other - - - - 490,286
Intergovernmental - - - - 1,548,083
Total Assets $ 503,332 $ 578,811 $ 173,230 $ 1,255,373 $ 14,989,063
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ - $ 417 $ - $ 417 $ 178,902
Accrued payroll and withholdings - - - - 141,316
Other liabilities - - - - 5,100
Due to other funds - - - - 854,784
Total Liabilities - 417 - 417 1,180,102
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - 6,660
Unavailable revenues - other - - - - 398,056
Total Deferred Inflows of Resources - - - - 404,716
Fund Balances:
Nonspendable 477,397 21,553 12,235 511,185 511,185
Restricted 25,935 556,841 160,995 743,771 12,893,060
Total Fund Balances 503,332 578,394 173,230 1,254,956 13,404,245
Total Liabilities and Fund Balances $ 503,332 $ 578,811 $ 173,230 $ 1,255,373 $ 14,989,063
(Concluded)
Town of Canton, Massachusetts Page 94 of 128 Comprehensive Annual Financial ReportSource page 103
This page intentionally left blank. Town of Canton, Massachusetts Page 95 of 128 Comprehensive Annual Financial Report
Source page 104
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2018
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Revenues:
Property taxes $ - $ - $ - $ - $ -
Intergovernmental 365,250 - 19,660 - -
Charges for services 800,645 - - - -
Departmental and other - - 215,992 1,478,100 337,687
Investment income 2,694 - - - -
Contributions and donations - - 65,170 - -
Total Revenues 1,168,589 - 300,822 1,478,100 337,687
Expenditures:
Current:
General government - - 7,848 - -
Public safety - - 6,708 - -
Education 989,061 - - 2,147,349 -
Public works - 22,025 - - -
Health and human services - - 90,110 - -
Culture and recreation - - 71,575 - 293,713
Employee benefits - - - - -
Total Expenditures 989,061 22,025 176,241 2,147,349 293,713
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 179,528 (22,025) 124,581 (669,249) 43,974
Other Financing Sources (Uses):
Premium from bonds and notes - - - - -
Transfers in - 200,000 - 711,146 -
Transfers out (160,500) - (35,000) - -
Total Other Financing Sources (Uses) (160,500) 200,000 (35,000) 711,146 -
Net Change in Fund Balances 19,028 177,975 89,581 41,897 43,974
Fund Balances - Beginning of Year 309,739 736,434 567,142 1,627,301 242,551
Fund Balances - End of Year $ 328,767 $ 914,409 $ 656,723 $ 1,669,198 $ 286,525
Town of Canton, Massachusetts Page 96 of 128 Comprehensive Annual Financial ReportSource page 105
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ - $ 583,486 $ - $ - $ - $ - $ 583,486
- 94,671 584,719 2,644,423 820,056 - 4,528,779
1,308,280 - - - - - 2,108,925
- 2,192 - - - 1,303,427 3,337,398
- 22,270 10,610 - - 940 36,514
- - - - - 391,364 456,534
1,308,280 702,619 595,329 2,644,423 820,056 1,695,731 11,051,636
- - 79,067 - - 121,552 208,467
- - 535,267 - - 728,538 1,270,513
- - - 2,597,226 - 276,129 6,009,765
- - - - 819,910 - 841,935
- - 47,889 - - - 137,999
- 208,939 19,484 - - - 593,711
- - - - - 97,410 97,410
- 208,939 681,707 2,597,226 819,910 1,223,629 9,159,800
1,308,280 493,680 (86,378) 47,197 146 472,102 1,891,836
- - - - - 63,679 63,679
- - - - - 80,000 991,146
(1,075,190) - - - - (510,000) (1,780,690)
(1,075,190) - - - - (366,321) (725,865)
233,090 493,680 (86,378) 47,197 146 105,781 1,165,971
1,629,701 1,919,849 708,600 693,271 2,120 2,546,610 10,983,318
$ 1,862,791 $ 2,413,529 $ 622,222 $ 740,468 $ 2,266 $ 2,652,391 $ 12,149,289
(Continued)
Town of Canton, Massachusetts Page 97 of 128 Comprehensive Annual Financial ReportSource page 106
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2018
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Revenues:
Property taxes $ - $ - $ - $ - $ 583,486
Intergovernmental - - - - 4,528,779
Charges for services - - - - 2,108,925
Departmental and other - - - - 3,337,398
Investment income 6,092 8,695 2,453 17,240 53,754
Contributions and donations 22,000 4,376 - 26,376 482,910
Total Revenues 28,092 13,071 2,453 43,616 11,095,252
Expenditures:
Current:
General government - - - - 208,467
Public safety - - - - 1,270,513
Education - - - - 6,009,765
Public works - - - - 841,935
Health and human services - - - - 137,999
Culture and recreation - 2,931 - 2,931 596,642
Employee benefits - - - - 97,410
Total Expenditures - 2,931 - 2,931 9,162,731
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 28,092 10,140 2,453 40,685 1,932,521
Other Financing Sources (Uses):
Premium from bonds and notes - - - - 63,679
Transfers in - - - - 991,146
Transfers out (5,000) - - (5,000) (1,785,690)
Total Other Financing Sources (Uses) (5,000) - - (5,000) (730,865)
Net Change in Fund Balances 23,092 10,140 2,453 35,685 1,201,656
Fund Balances - Beginning of Year 480,240 568,254 170,777 1,219,271 12,202,589
Fund Balances - End of Year $ 503,332 $ 578,394 $ 173,230 $ 1,254,956 $ 13,404,245
(Concluded)
Town of Canton, Massachusetts Page 98 of 128 Comprehensive Annual Financial ReportSource page 107
This page intentionally left blank. Town of Canton, Massachusetts Page 99 of 128 Comprehensive Annual Financial Report
Source page 108
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 128 Comprehensive Annual Financial ReportSource page 109
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2018
Total
Health Workers' Unemployment Building Internal
Claims Compensation Claims Insurance Service Funds
Assets:
Current assets:
Cash and cash equivalents $ 2,545,710 $ 8,260 $ 261,290 $ 1,994 $ 2,817,254
Investments 3,729,654 - - 464,267 4,193,921
Receivables, net of allowance for uncollectibles:
Departmental and other 227,894 - - - 227,894
Prepaid items 41,962 - - - 41,962
Deposit held by third party 61,800 - - - 61,800
Total Current Assets 6,607,020 8,260 261,290 466,261 7,342,831
Liabilities:
Current liabilities:
Warrants and accounts payable 147,084 - 350 - 147,434
Health claims incurred but not reported 878,641 - - - 878,641
Total Current Liabilities 1,025,725 - 350 - 1,026,075
Net Position:
Unrestricted 5,581,295 8,260 260,940 466,261 6,316,756
TOTAL NET POSITION $ 5,581,295 $ 8,260 $ 260,940 $ 466,261 $ 6,316,756
Town of Canton, Massachusetts Page 101 of 128 Comprehensive Annual Financial ReportSource page 110
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2018
Total
Health Workers' Unemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Operating Revenues:
Employee contributions $ 4,099,038 $ - $ - $ - $ 4,099,038
Employer contributions 11,284,001 - 100,000 - 11,384,001
Stop loss reimbursements 530,671 - - - 530,671
Total Operating Revenues 15,913,710 - 100,000 - 16,013,710
Operating Expenditures:
Employee benefits 14,781,880 15,808 77,920 - 14,875,608
Total Operating Expenditures 14,781,880 15,808 77,920 - 14,875,608
Operating Income (Loss) 1,131,830 (15,808) 22,080 - 1,138,102
Nonoperating Revenues (Expenses):
Investment Income 54,129 387 3,842 6,639 64,997
Income (Loss) Before Transfers 1,185,959 (15,421) 25,922 6,639 1,203,099
Change in Net Position 1,185,959 (15,421) 25,922 6,639 1,203,099
Fund Balances - Beginning of Year 4,395,336 23,681 235,018 459,622 5,113,657
Fund Balances - End of Year $ 5,581,295 $ 8,260 $ 260,940 $ 466,261 $ 6,316,756
Town of Canton, Massachusetts Page 102 of 128 Comprehensive Annual Financial ReportSource page 111
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2018
Total
Health Workers' Umemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Cash Flows From Operating Activities:
Receipts from interfund services provided $ 15,748,242 $ - $ 100,000 $ - $ 15,848,242
Payments for interfund services used (14,982,813) (15,808) (77,570) - (15,076,191)
Net Cash Provided by (Used in) Operating Activities 765,429 (15,808) 22,430 - 772,051
Cash Flows From Investing Activities:
Investment income 54,129 387 3,842 6,639 64,997
Investment of operating cash (85,248) - - (6,639) (91,887)
Net Cash Provided By Investing Activities (31,119) 387 3,842 - (26,890)
Net Change in Cash and Cash Equivalents 734,310 (15,421) 26,272 - 745,161
Cash and Cash Equivalents:
Beginning of the Year 1,811,400 23,681 235,018 1,994 2,072,093
End of the Year $ 2,545,710 $ 8,260 $ 261,290 $ 1,994 $ 2,817,254
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss) 1,131,830 (15,808) 22,080 - 1,138,102
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables (165,468) - - - (165,468)
Prepaid items (41,962) - - - (41,962)
Accounts payable and accrued expenses (158,971) - 350 - (158,621)
Net Cash Provided by (Used in) Operating Activities $ 765,429 $ (15,808) $ 22,430 $ - $ 772,051
Town of Canton, Massachusetts Page 103 of 128 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 128 Comprehensive Annual Financial ReportSource page 113
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2018
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents $ 1,309,785 $ 625,619 $ (655,696) $ 1,279,708
Liabilities
Current liabilities:
Warrants payable $ 27,177 $ 588,492 $ (603,816) $ 11,853
Agency liabilities 1,282,608 584,586 (599,339) 1,267,855
Total Liabilities $ 1,309,785 $ 1,173,078 $ (1,203,155) $ 1,279,708
Town of Canton, Massachusetts Page 105 of 128 Comprehensive Annual Financial ReportSource page 114
This page intentionally left blank. Town of Canton, Massachusetts Page 106 of 128 Comprehensive Annual Financial Report
Source page 115
Statistical Section Statistical tables differ from financial statements since they usually cover more than one fiscal year and present non- accounting data. The following tables reflect social and economic data, financials trends, and fiscal capacity. Photo courtesy of Spear Street Capital LLC Spear Street Capital, an owner and operator of distinctive office properties, recently purchased Reebok’s former headquarters. The world-class campus includes a 518,000 square foot main building along with three support buildings, two parking structures, childcare center and a host of fitness amenities, including an Olympic track, basketball courts, tennis courts and a softball field. Town of Canton, Massachusetts Page 107 of 128 Comprehensive Annual Financial Report
Source page 116
This page intentionally left blank. Town of Canton, Massachusetts Page 108 of 128 Comprehensive Annual Financial Report
Source page 117
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.
Town of Canton, Massachusetts Page 109 of 128 Comprehensive Annual Financial ReportSource page 118
This page intentionally left blank. Town of Canton, Massachusetts Page 110 of 128 Comprehensive Annual Financial Report
Source page 119
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
2009 2010 2011 2012 (1) 2013 2014 2015 (2) 2016 2017 2018 (3)
Governmental activities:
Net investment in capital assets…………………………….
$ 54,948,512 $ $ 57,942,064 $ $ 62,056,797 $ 63,962,326 $ 61,957,511 $ 70,116,230 $ 76,109,604 $ 78,591,436 $ 78,738,423 $ 81,317,923
Restricted………………………………………………………………………….. 8,844,047 7,781,249 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548 10,880,921
Unrestricted……………………………………………………………… 14,125,826 6,141,042 (3,861,890) (8,796,940) (14,921,000) (23,682,247) (57,308,073) (55,970,281) (57,041,754) (86,179,993)
Total governmental activities net position………………………………………..
$ 77,918,385 $ 71,864,355 $ 65,652,451 $ 61,940,036 $ 57,805,364 $ 55,346,471 $ 27,995,047 $ 31,627,703 $ 32,339,217 $ 6,018,851
Business-type activities:
Net investment in capital assets…………………………….
$ 14,483,253 $ 15,188,472 $ 17,195,414 $ 16,033,950 $ 16,381,614 $ 15,743,697 $ 16,386,618 $ 17,457,708 $ 18,785,822 $ 20,603,290
Unrestricted………………………………………………………………. 3,934,247 3,836,227 2,796,789 4,362,212 4,030,576 6,399,642 6,342,679 9,040,938 8,905,131 7,446,856
Total business-type activities net position…………………………….
$ 18,417,500 $ 19,024,699 $ 19,992,203 $ 20,396,162 $ 20,412,190 $ 22,143,339 $ 22,729,297 $ 26,498,646 $ 27,690,953 $ 28,050,146
Primary government:
Net investment in capital assets…………………………….
$ 69,431,765 $ 73,130,536 $ 79,252,211 $ 79,996,276 $ 78,339,125 $ 85,859,927 $ 92,496,222 $ 96,049,144 $ 97,524,245 $ 101,921,213
Restricted………………………………………………………………………. 8,844,047 7,781,249 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548 10,880,921
Unrestricted…………………………………………………………… 18,060,073 9,977,269 (1,065,101) (4,434,728) (10,890,424) (17,282,605) (50,965,394) (46,929,343) (48,136,623) (78,733,137)
Total primary government net position………………………………………………….
$ 96,335,885 $ 90,889,054 $ 85,644,654 $ 82,336,198 $ 78,217,554 $ 77,489,810 $ 50,724,344 $ 58,126,349 $ 60,030,170 $ 34,068,997
(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 OPEB 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 128 Comprehensive Annual Financial ReportSource page 120
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
2009 2010 2011 2012 2013 2014 2015 2016 (1) 2017 (1) 2018 (1)
Expenses -
Governmental activities:
General government…...…………………………………………………… $ 6,440,728 $ $ 5,856,721 $ $ 6,012,221 $ 5,898,196 $ 5,809,111 $ 6,231,894 $ 5,683,805 $ 5,764,062 $ 5,965,196 $ 5,578,489
Public safety…..……………………………………………………………… 14,102,861 14,815,007 14,845,911 15,490,670 16,060,024 16,660,306 15,312,760 16,584,359 17,532,705 19,250,042
Education……..…………………………………………………………………. 52,111,533 56,105,191 57,174,814 58,649,480 61,782,205 64,153,101 54,772,830 60,963,021 68,325,037 70,396,176
Public works……...………………………………………………………………. 5,035,008 5,725,429 5,964,437 5,703,015 6,286,770 6,419,350 7,227,459 7,581,355 7,658,668 7,911,117
Health and human services……………...…………………………………………………………….
983,217 1,094,171 1,133,985 1,221,862 1,314,086 1,346,871 1,609,060 1,536,513 1,684,833 1,635,120
Culture and recreation………...…………………………………………………………..
2,715,016 2,762,453 2,882,803 2,944,861 2,985,722 3,123,867 3,006,143 3,698,331 3,683,115 3,768,025
Interest…………………………………………………………………… 1,996,528 1,919,708 1,797,797 1,664,859 1,668,538 1,557,660 722,667 672,768 636,035 659,834
Total government activities expenses…………………………………….. 83,384,891 88,278,680 89,811,968 91,572,943 95,906,456 99,493,049 88,334,724 96,800,409 105,485,589 109,198,803
Business-type activities:
Water…………………………………………………………………… 4,562,904 4,644,182 4,968,675 5,456,431 5,853,408 5,225,383 5,253,139 5,692,320 6,141,278 7,105,456
Sewer…………………………………………………………………… 4,462,173 4,575,414 4,819,406 5,084,191 5,173,053 5,366,166 5,416,303 5,925,780 6,191,663 6,275,549
Rink…………………………………………………………………… 458,269 486,775 504,265 496,394 390,072 353,666 405,752 79,670 61,792 13,498
Total business-type activities expenses…………………………………….. 9,483,346 9,706,371 10,292,346 11,037,016 11,416,533 10,945,215 11,075,194 11,697,770 12,394,733 13,394,503
Total primary government expenses………………………………………. $ 92,868,237 $ 97,985,051 $ 100,104,314 $ 102,609,959 $ 107,322,989 $ 110,438,264 $ 99,409,918 $ 108,498,179 $ 117,880,322 $ 122,593,306
Program Revenues -
Governmental activities:
Charges for services:
General government………………………………………………… $ 400,721 $ $ 919,070 $ $ 385,778 $ 325,814 $ 554,773 $ 978,216 $ 881,979 $ 776,450 $ 563,303 $ 629,653
Public safety……………………………………………………………….. 1,867,319 2,076,797 2,036,855 2,292,477 2,790,608 2,595,617 2,908,421 3,123,869 2,778,390 3,575,574
Education………………………………………………………………. 1,975,650 2,105,396 2,143,729 2,155,031 2,253,878 2,632,798 2,640,969 2,788,752 2,328,949 2,463,638
Public works………………………………………………………………. 69,082 129,056 92,920 125,694 210,642 227,108 281,025 316,164 267,218 308,449
Human services………………………………………………………………. 42,354 41,527 46,661 66,462 85,978 91,484 151,953 97,633 101,977 107,678
Culture and recreation……………………………………………………… 377,306 379,669 346,254 528,937 396,771 359,497 399,396 468,374 460,175 436,273
Operating grants and contributions…………………………………… 14,389,625 14,937,773 15,381,360 16,776,734 16,961,153 18,811,622 13,609,976 15,841,950 18,253,254 19,405,225
Capital grants and contributions………………………………………….. 3,291,089 1,170,098 162,497 1,659,561 550,999 611,930 2,832,069 1,562,827 922,822 2,293,126
Total government activities program revenues...…………………………….. 22,413,146 21,759,386 20,596,054 23,930,710 23,804,802 26,308,272 23,705,788 24,976,019 25,676,088 29,219,616
Business-type activities:
Charges for services - Water…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
4,727,025 5,693,293 6,965,364 6,672,927 6,702,942 6,943,731 7,011,223 7,084,917 6,929,539 7,186,664
Charges for services - Sewer…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
4,747,421 4,772,693 4,965,133 5,227,905 5,344,425 6,045,829 6,559,894 6,517,066 6,560,287 7,143,471
Charges for services - Rink…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….
391,991 404,449 430,878 446,111 431,671 429,555 367,098 - - -
Capital grant and contributions…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
2,362 497,305 - - - 463,500 - - - 5,625
Operating grants and contributions……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..
- - - - - 6,250 37,338 2,093 80,960 -
Total business-type activities program revenues……………………………………..
9,868,799 11,367,740 12,361,375 12,346,943 12,479,038 13,888,865 13,975,553 13,604,076 13,570,786 14,335,760
Total primary government program revenues……………………………………….
$ 32,281,945 $ 33,127,126 $ 32,957,429 $ 36,277,653 $ 36,283,840 $ 40,197,137 $ 37,681,341 $ 38,580,095 $ 39,246,874 $ 43,555,376
Net (Expense)/Program Revenue
Governmental activities……………………....……………………………..
$ (60,971,745) $ (66,519,294) $ (69,215,914) $ (67,642,233) $ (72,101,654) $ (73,184,777) $ (64,628,936) $ (71,824,390) $ (79,809,501) $ (79,979,187)
Business-type activities……………………....…………………………….. 385,453 1,661,369 2,069,029 1,309,927 1,062,505 2,943,650 2,900,359 1,906,306 1,176,053 941,257
Total primary government net (expense)/program revenue……………………………………….
$ (60,586,292) $ (64,857,925) $ (67,146,885) $ (66,332,306) $ (71,039,149) $ (70,241,127) $ (61,728,577) $ (69,918,084) $ (78,633,448) $ (79,037,930)
(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 128 Comprehensive Annual Financial Report