Canton, Massachusetts · Saved source text
Final Offical Statement dated January 23, 2023
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Source page 1
NEW ISSUE S&P Global Ratings: AAA (stable)
(See “Rating”)
FINAL OFFICIAL STATEMENT DATED JANUARY 23, 2023
In the opinion of Locke Lord LLP, Bond Counsel, based upon an analysis of existing law and assuming, among other
matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax
purposes under the Internal Revenue Code of 1986, as amended (the “Code”). Interest on the Bonds will not be included
in computing the alternative minimum taxable income of individuals. For tax years beginning after December 31, 2022,
however, interest on the Notes will be included in the “adjusted financial statement income” of certain corporations that are
subject to the alternative minimum tax under Section 55 of the Code. Under existing law, interest on the Bonds is exempt
from Massachusetts personal income taxes, and the Bonds are exempt from Massachusetts personal property taxes. Bond
Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual
or receipt of interest on, the Bonds. See “Tax Exemption” herein. The Bonds will not be designated as “qualified tax-
exempt obligations” for purposes of Section 265(b)(3) of the Code.
$10,920,000
TOWN OF CANTON
Massachusetts
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS
Dated: February 8, 2023 Due: February 1, 2024-2043
MATURITIES
Principal Interest Price/ CUSIP Principal Interest Price/ CUSIP
Year Amount Rate Yield 138267 Year Amount Rate Yield 138267
2024 $655,000 5.000% 2.260% R84 2034 $480,000 4.000% 2.420% T25
2025 675,000 5.000 2.090 R92 2035 480,000 4.000 2.570 T33
2026 675,000 5.000 2.030 S26 2036 475,000 4.000 2.780 T41
2027 680,000 5.000 2.000 S34 2037 475,000 4.000 3.000 T58
2028 680,000 5.000 2.000 S42 2038 475,000 4.000 3.150 T66
2029 565,000 5.000 2.030 S59 2039 475,000 4.000 3.250 T74
2030 565,000 5.000 2.040 S67 2040 475,000 4.000 3.330 T82
2031 565,000 5.000 2.050 S75 2041 475,000 4.000 3.400 T90
2032 560,000 5.000 2.090 S83 2042 475,000 4.000 3.450 U23
2033 545,000 5.000 2.170 S91 2043 470,000 4.000 3.500 U31
Principal of the Bonds will be payable on February 1 of the years in which the Bonds mature. Interest from the date of the
Bonds will be payable on August 1, 2023, and semi-annually thereafter on each February 1 and August 1 until maturity or
redemption prior to maturity. The Bonds are subject to redemption prior to their stated dates of maturity as described herein.
The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in the name of
Cede & Co., as Bondowner and nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will
act as securities depository for the Bonds. Purchases of the Bonds will be made in book-entry form, in the denomination of
$5,000 or any integral multiple thereof. (See “Book-Entry Transfer System” herein.)
The legality of the Bonds will be approved by Locke Lord LLP, Boston, Massachusetts, Bond Counsel to the Town.
UniBank Fiscal Advisory Services, Inc., Whitinsville, Massachusetts, serves as Municipal Advisor to the Town. It is
expected that the Bonds, in definitive form, will be delivered to DTC, or the offices of its custodial agent, on or about
February 8, 2023, against payment in Federal Reserve funds.
RAYMOND JAMES & ASSOCIATES, INC.Source page 2
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TABLE OF CONTENTS
Page Page
Issue Summary Statement .................................... ii Other Post-Employment Benefits ........................ 22
Notice of Sale ....................................................... iii Property Taxation ................................................ 23
Official Statement ................................................ 1 Tax Rate and Valuation - General ....................... 23
Valuations ............................................................ 24
Introduction .......................................................... 1 Tax Rates ............................................................. 24
Part I. The Bonds ................................................. 2 Largest Taxpayers................................................ 25
Description of the Bonds ............................... 2 Tax Levies ........................................................... 25
Record Date ................................................... 2 Levy General ..................................................... 25
Book-Entry Transfer System ......................... 3 Taxation to Meet Deficits .................................. 25
DTC Practices................................................ 4 Tax Limitations.................................................. 26
Authorization and Use of Proceeds ............... 4 Pledged Taxes .................................................... 27
Optional Redemption..................................... 5 Initiative Petitions .............................................. 27
Mandatory Redemption ................................. 5 Calculation of Tax Levies and Levy Limits ...... 27
Notice of Redemption.................................... 5 Tax Collections and Abatements ......................... 28
Securities and Remedies ................................ 5 Town Finances ..................................................... 30
Opinion of Bond Counsel .............................. 7 Budget Comparison ........................................... 31
Tax Exemption. ............................................. 7 State Aid .............................................................. 31
Risk of Future Legislative Change ................ 8 State School Building Assistance Program ......... 32
Rating ............................................................ 9 Motor Vehicle Excise .......................................... 32
Continuing Disclosure ................................... 9 Other Taxes.......................................................... 33
Community Preservation Act .............................. 33
Part II. The Town ................................................. 10 Investments .......................................................... 34
Constitutional Status and Form of Unassigned General Fund Balance
Government ............................................... 10 and Free Cash .................................................... 35
Governing Bodies and Officers ..................... 11 Stabilization Fund ................................................ 35
Services ......................................................... 11 Collective Bargaining .......................................... 36
COVID-19 ..................................................... 11 Physical and Economic Characteristics ............... 36
Authorization of General Economic Development ...................................... 36
Obligation Bonds and Notes ........................ 13 Principal Employers ............................................ 41
Debt Limits .................................................... 13 Employment by Industry ..................................... 41
Types of Obligations ..................................... 13 Building Permits .................................................. 41
Debt ............................................................... 15 Other Data............................................................ 42
Revenue Anticipation Borrowing ................. 15 Public School Enrollments .................................. 45
Authorized Unissued Debt Litigation ............................................................. 45
and Prospective Financing ......................... 16
Capital Expenditure Projections .................... 16 Appendix A. Summary Financial Statements ..... A-1
Five Years Outstanding Debt ........................ 17
Appendix B. Fiscal 2022 Audit for the Town
Bonded Debt vs. Population,
Of Canton ........................................................ B-1
Valuations and Income .............................. 17
Annual Debt Service...................................... 18 Appendix C. Proposed Form of
Contracts ........................................................ 18 Legal Opinion of Bond Counsel ..................... C-1
Overlapping Debt .......................................... 19
Retirement Plan ............................................. 21 Appendix D. Proposed Form of
Continuing Disclosure Certificate .................. D-1
The information set forth herein has been obtained from the Town and from other sources which are believed to be reliable
but it is not guaranteed as to accuracy or completeness. Any statements made in this Official Statement involving matters
of opinion, whether or not expressly stated, are intended merely as opinion and not as representations of fact. The
information and expressions of opinion in this Official Statement are subject to change without notice. Neither the delivery
of this Official Statement nor any sale of the Bonds shall, under any circumstances, create any implication that there has
been no material change in the affairs of the Town since the date of this Official Statement.Source page 4
ISSUE SUMMARY STATEMENT
Issuer: Town of Canton, Massachusetts.
Date of Sale: Monday, January 23, 2023, until 12:00 Noon (Eastern Standard Time).
Method of Sale: Electronic Bids via Parity.
Location of Sale: UniBank Fiscal Advisory Services, Inc., 49 Church Street, Whitinsville, MA.
Issue: $10,920,000 GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS,
Book-Entry Only (See “Book-Entry Transfer System”, herein).
Purpose: Funding of various capital projects (See “Authorization and Use of Proceeds” herein).
Minimum Bid: Par plus a premium of $82,000.
Dated Date of Bonds: Date of delivery (on or about February 8, 2023).
Maturity Date of Bonds: Serially on February 1, 2024 through 2043, as detailed herein.
Interest Payable: February 1 and August 1, commencing August 1, 2023.
Redemption: The Bonds are subject to redemption prior to their stated dates of maturity as described herein.
Credit Rating: S&P Global Ratings has assigned a rating of AAA to the Bonds.
Security: The Bonds are valid general obligations of the Town of Canton, Massachusetts and the principal
of and interest on the Bonds are payable from taxes which may be levied upon all taxable
property within the territorial limits of the Town, without limitation as to rate or amount, except
as provided under Chapter 44, Section 20 of the General Laws, with respect to that portion of
the principal and interest payments that the Town has voted to exempt from the limit imposed
by Chapter 59, Section 21C of the General Laws, and subject to the limit imposed by Chapter
59, Section 21C of the General Laws with respect to that portion of the principal and interest
payments that the Town has not voted to exempt from that limit; provided that taxes levied on
certain taxable property located within a development district established by the Town pursuant
to Chapter 40Q of the Massachusetts General Laws may be restricted and unavailable to pay
the principal of and interest on the Bonds.
Tax Exemption: Refer to “Tax Exemption” and Appendix C – “Proposed Form of Legal Opinion” herein.
Continuing Disclosure: Refer to “Continuing Disclosure” and Appendix D – “Proposed Form of Continuing Disclosure
Certificate” herein.
Bank Qualification: The Bonds will not be designated as “qualified tax-exempt obligations” for purposes of Section
265(b)(3) of the Internal Revenue Code of 1986, as amended.
Paying and Escrow Agent: U.S. Bank Trust Company, National Association, Boston, Massachusetts
Legal Opinion: Locke Lord LLP, Boston, Massachusetts
Delivery and Payment: It is expected that the Bonds will be delivered to DTC, or to the offices of its custodial agent,
against payment to the account of the Town in Federal Reserve funds on or about February 8,
2023.
Issue Contacts: William R. Scollins, III, Finance Director/Treasurer, Town of Canton, Massachusetts
Telephone # (781) 575-6612
Brianne Susel, Vice President, UniBank Fiscal Advisory Services, Inc.,
Telephone # (508) 849-4228
Richard A. Manley, Jr., Esq., Locke Lord LLP,
Telephone # (617) 239-0384
Additional Information: Refer to the Preliminary Official Statement herein dated January 13, 2023.
iiSource page 5
NOTICE OF SALE
TOWN OF CANTON
Massachusetts
$11,935,000*
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS
The Town of Canton, Massachusetts, will receive electronic proposals until 12:00 noon (Eastern Standard Time), on
Monday, January 23, 2023
at UniBank Fiscal Advisory Services, Inc., Whitinsville, Massachusetts, for the purchase of the following described Bonds:
$11,935,000* GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS, payable February 1 of
the years and in the amounts as follows:
Due Principal Due Principal
February 1 Amount* February 1 Amount*
2024 $745,000 2034 $525,000
2025 735,000 2035 525,000
2026 730,000 2036 525,000
2027 730,000 2037 525,000
2028 725,000 2038 525,000
2029 605,000 2039 525,000
2030 605,000 2040 525,000
2031 605,000 2041 525,000
2032 605,000 2042 525,000
2033 605,000 2043 520,000
___________________
* Preliminary, subject to change.
Details of the Bonds
The Bonds will be dated their date of delivery. Interest from the date of the Bonds will be payable on August 1, 2023, and
semi-annually thereafter on each February 1 and August 1 until maturity or redemption prior to maturity. Principal of and
interest on the Bonds will be paid as described below.
The Bonds will be issued by means of a book-entry system with no physical distribution of the Bonds made to the public.
One certificate for each maturity of the Bonds will be issued to The Depository Trust Company, New York, New York
(DTC), and immobilized in their custody. A book-entry system will be employed, evidencing ownership of the Bonds in
principal amounts of $5,000 or any integral multiple thereof, with transfers of ownership effected on the records of DTC
and its participants pursuant to rules and procedures adopted by DTC and its participants. The winning bidder, as a condition
to delivery of the Bonds, shall be required to deposit the Bonds with DTC, registered in the name of Cede & Co. Principal
of and interest on the Bonds will be payable to DTC or its nominee as registered owner of the Bonds. Transfer of principal
and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments
to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial
owners. Neither the Town nor the Paying Agent will be responsible or liable for maintaining, supervising or reviewing the
records maintained by DTC, its participants or persons acting through such participants.
iiiSource page 6
Bank Qualification
The Bonds will not be designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended.
Redemption of the Bonds
The Bonds maturing in the years 2024 through 2031, inclusive, are not subject to redemption prior to their stated dates of
maturity. The Bonds maturing on and after February 1, 2032, are subject to redemption prior to their stated dates of maturity,
at the option of the Town, on and after February 1, 2031, either in whole or in part at any time, and if in part, by lot within
a maturity, at par plus accrued interest to the date set for redemption.
Term Bonds
For Bonds maturing after February 1, 2031, bidders may specify that all of the principal amount of such Bonds having two
or more consecutive maturities, may in lieu of having separate maturity dates, be combined to comprise one or more term
bonds, and shall be subject to mandatory redemption or mature at par as described above, in each of the years and in the
principal amounts specified in the foregoing maturity schedule (which schedule is subject to change as described herein).
Each mandatory redemption shall be allocated to the payment of the term bond having the earliest subsequent maturity date.
Term bonds, if any, shall be subject to mandatory redemption on February 1 in the earliest year prior to the stated maturity
of such term bond (the particular Bonds of such maturity to be redeemed to be selected by lot), as indicated in the foregoing
maturity schedule (which schedule is subject to change as described herein) at the principal amount thereof plus accrued
interest to the redemption date, without premium.
Form of Bid and Basis of Award
Bids must be submitted electronically. Electronic proposals will be submitted through i-Deal®. If any provisions in this
Notice of Sale conflict with information provided by i-Deal®, this Notice of Sale shall control. Further information about
i-Deal®, including any fees charged, may be obtained from i-Deal® at (212) 849-5000. The Town assumes no responsibility
or liability for bids submitted through i-Deal®. An electronic bid made in accordance with this Notice of Sale shall be
deemed an irrevocable offer to purchase the Bonds in accordance with the terms provided in this Notice of Sale and shall
be binding upon the bidder as if made by a signed and sealed written bid delivered to the Town.
Bidders shall state the rate or rates of interest per annum which the Bonds are to bear in a multiple of 1/8th or 1/20th of 1%
but shall not state (a) more than one interest rate for any Bonds having a like maturity, and (b) any interest rate which
exceeds the interest rate stated for any other Bonds by more than 3%.
The minimum bid on the bonds is par plus a premium of $82,000.
A good faith deposit is not required.
As between proposals which comply with this Notice of Sale, the award will be to the bidder who offers to purchase all the
Bonds at the lowest net effective interest rate to the Town. Such interest rate shall be determined on a true interest cost
(TIC) basis, which shall mean that rate which, as of February 8, 2023, discounts semi-annually all future payments on
account of principal and interest to the price bid, not including interest accrued to the date of delivery, if any, which accrued
interest shall be paid by the successful bidder. The award of the Bonds to the winning bidder will not be effective until the
bid has been approved by the Select Board and Treasurer of the Town. In the event that two or more bidders submit a bid
with the same lowest net effective interest rate, the winning bidder shall be determined by the Town Treasurer, by lot, from
among such bidders.
ivSource page 7
Bond Insurance
The Town has not contracted for the issuance of any policy of municipal bond insurance for the Bonds. If the Bonds qualify
for issuance of any such policy or commitment therefor, any purchase of such insurance or commitment shall be at the sole
option and expense of the bidder. Proposals shall not be conditioned upon the issuance of any such policy or commitment.
Any failure of the Bonds to be so insured or of any such policy or commitment to be issued shall not in any way relieve the
purchaser of the contractual obligations arising from the acceptance of a proposal for the purchase of the Bonds. Should
the successful bidder purchase municipal bond insurance, all expenses associated with such policy or commitment will be
borne by the bidder, except for the fee paid to S&P Global Ratings for the rating of the Bonds. Any such fee paid to S&P
Global Ratings would be borne by the Town.
Par Amount Subject to Change
Within the limits set forth herein, the Town reserves the right to adjust the aggregate principal amount of the Bonds, and to
adjust the principal amount of individual maturities of the Bonds, even if the aggregate principal amount is unchanged. The
purpose of such adjustments, if any, will be to size the issue such that proceeds, including premium, will fund the projects
and issuance costs with a minimum of excess funds, and to satisfy the amortization constraints of the General Laws.
Immediately following the opening of the bids, the Town, acting through its Muncipal Advisor, will contact the apparent
successful bidder by telephone to obtain the initial reoffering prices of each maturity of the Bonds, the premium to be paid
on account of bond insurance, if any, and other information relevant to the sale of the Bonds. The apparent successful
bidder shall then immediately deliver to the Town written confirmation by facsimile transmission as to such reoffering
prices and bond insurance premium, if any. Upon being supplied with such initial reoffering prices and bond insurance
premiums, if any, the Town will determine the need to otherwise re-allocate the principal maturities of the Bonds. The
Town expects to advise the successful bidder as soon as possible, but no later than 3:00 p.m., Eastern Standard Time, on
the date of the sale of the amount, if any, of any changes in either the aggregate principal amount (which changes will be
allocated among several maturities of the Bonds in a manner to be specified by the Town) or individual maturities (assuming
no changes in the aggregate principal amount of the Bonds).
Any adjustment in either the aggregate principal amount or the individual maturities of the Bonds will be in an amount of
$5,000 or an integral multiple thereof and will be made only as necessary to comply with the amortization requirements
imposed by state law and to achieve a final issue price to fund project costs and cost of issuance for the projects without an
over issuance of bonds.
Bidders are advised that bidding with a large premium could result in a reduction in the par amount of the Bonds.
The dollar amount bid by the successful bidder will be adjusted to reflect any adjustment in the aggregate principal amount
of the Bonds to be issued. The adjusted bid price will reflect changes in the dollar amount of the underwriter’s discount
and original issue discount/premium, if any, but will not change the per-bond underwriter’s discount as calculated from the
bid and reoffering prices required to be delivered to the Town as stated herein. The successful bidder may not withdraw its
bid or change the interest rates bid or initial reoffering prices as a result of any changes made to the principal amounts within
these limits.
Establishment of Issue Price
The successful bidder shall assist the Town in establishing the issue price of the Bonds and shall execute and deliver to the
Town on the Closing Date an “issue price” or similar certificate, in the applicable form set forth in Exhibit 1 to this Notice
of Sale, setting forth the reasonably expected initial offering prices to the public or the sales price of the Bonds together
with the supporting pricing wires or equivalent communications, or, if applicable, the amount bid, with such modifications
as may be appropriate or necessary, in the reasonable judgment of the successful bidder, the Town and Bond Counsel. All
actions to be taken by the Town under this Notice of Sale to establish the issue price of the Bonds may be taken on behalf
of the Town by UniBank Fiscal Advisory Services, Inc. (the “Muncipal Advisor”) and any notice or report to be provided
to the Town may be provided to the Muncipal Advisor.
vSource page 8
Competitive Sale Requirements. If the competitive sale requirements (“competitive sale requirements”) set forth in
Treasury Regulation § 1.148-1(f)(3)(i) (defining “competitive sale” for purposes of establishing the issue price of the Bonds)
have been satisfied, the Town will furnish to the successful bidder on the Closing Date a certificate of the Muncipal Advisor,
which will certify each of the following conditions to be true:
1. the Town has disseminated this Notice of Sale to potential underwriters in a manner that is
reasonably designed to reach potential underwriters;
2. all bidders had an equal opportunity to bid;
3. the Town received bids from at least three underwriters of municipal bonds who have established
industry reputations for underwriting new issuances of municipal bonds; and
4. the Town awarded the sale of the Bonds to the bidder who submitted a firm offer to purchase the
Bonds at the highest price (or lowest interest cost), as set forth in this Notice of Sale.
Any bid submitted pursuant to this Notice of Sale shall be considered a firm offer for the purchase of the Bonds, as specified
in the bid. Unless a bidder notifies the Town or the Muncipal Advisor (brianne.susel@unibank.com), that it will not be an
“underwriter” (as defined below) of the Bonds, by submitting its bid, each bidder shall be deemed to confirm that it has an
established industry reputation for underwriting new issuances of municipal bonds. Unless the bidder has notified the Town
that it will not be an “underwriter” (as defined below) of the Bonds, in submitting a bid, each bidder is deemed to
acknowledge that it is an “underwriter” that intends to reoffer the Bonds to the public.
In the event that the competitive sale requirements are not satisfied, the Town shall so advise the successful bidder.
Failure to Meet the Competitive Sale Requirements – Option A – The Successful Bidder Intends to Reoffer the Bonds
to the Public and the 10% Test is Used. If the competitive sale requirements are not satisfied and the successful bidder
intends to reoffer the Bonds to the public, the Issuer may, at its option, use the first price at which 10% of a maturity of the
Bonds (the “10% test”) is sold to the public as the issue price of that maturity, applied on a maturity-by-maturity basis, of
the Bonds. The successful bidder shall advise the Muncipal Advisor if any maturity of the Bonds satisfies the 10% test as
of the date and time of the award of the Bonds. Under this option, the Town will not require bidders to comply with the
“hold-the-offering-price rule” set forth in the applicable Treasury Regulations and therefore does not intend to use the initial
offering price to the public as of the Sale Date of any maturity of the Bonds as the issue price of that maturity, if the
competitive sale requirements are not met.
If the competitive sale requirements are not satisfied, then until the 10% test has been satisfied as to each maturity of the
Bonds or all of the Bonds are sold to the public, the successful bidder agrees to promptly report to the Muncipal Advisor
the prices at which the unsold Bonds of each maturity have been sold to the public, which reporting obligation shall continue,
whether or not the Closing Date has occurred, until the 10% test has been satisfied for each maturity of the Bonds or until
all the Bonds of a maturity have been sold. The successful bidder shall be obligated to report each sale of Bonds to the
Muncipal Advisor until notified in writing by the Town or the Muncipal Advisor that it no longer needs to do so.
By submitting a bid and if the competitive sale requirements are not met, each bidder confirms that: (i) any agreement
among underwriters, any selling group agreement and each third-party distribution agreement (to which the bidder is a
party) relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain
language obligating each underwriter, each dealer who is a member of the selling group, and each broker-dealer that is a
party to such third-party distribution agreement, as applicable, to report the prices at which it sells to the public the unsold
Bonds of each maturity allotted to it until it is notified by the successful bidder that either the 10% test has been satisfied as
to the Bonds of that maturity or all Bonds of that maturity have been sold to the public, if and for so long as directed by the
successful bidder and as set forth in the related pricing wires and (ii) any agreement among underwriters relating to the
initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating
each underwriter that is a party to a third-party distribution agreement to be employed in connection with the initial sale of
the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to report the
prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the successful
bidder or such underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that
viSource page 9
maturity have been sold to the public if and for so long as directed by the successful bidder or such underwriter and as set
forth in the related pricing wires.
Sales of any Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for purposes
of this Notice of Sale. Further, for purposes of this Notice of Sale:
“public” means any person other than an underwriter or a related party,
“underwriter” means (A) any person, including the successful bidder, that agrees pursuant to a written
contract with the Town (or with the lead underwriter to form an underwriting syndicate) to participate in
the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to
the public (including a member of a selling group or a party to a third-party distribution agreement
participating in the initial sale of the Bonds to the public), and
“related party” – a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter
and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting
power or the total value of their stock, if both entities are corporations (including direct ownership by one
corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests,
if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more
than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests
or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a
partnership (including direct ownership of the applicable stock or interests by one entity of the other).
Failure to Meet the Competitive Sale Requirements – Option B – The Successful Bidder Intends to Reoffer the Bonds
to the Public and the Hold the Price Rule is Used. The successful bidder may, at its option, notify the Muncipal Advisor
in writing, which may be by email (the “Hold the Price Notice”), not later than 4:00 p.m. on the Sale Date, that it has not
sold 10% of the maturities of the Bonds listed in the Hold the Price Notice (the “Unsold Maturities”) and that the successful
bidder will not offer the Unsold Maturities to any person at a price that is higher than the initial offering price to the public
during the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale
Date or (ii) the date on which the successful bidder has sold at least 10% of the applicable Unsold Maturity to the public at
a price that is no higher than the initial offering price to the public. If the successful bidder delivers a Hold the Price Notice
to the Muncipal advisor, the successful bidder must provide to the Issuer on or before the Closing Date, in addition to the
certification described in Option A above, evidence that each underwriter of the Bonds, including underwriters in an
underwriting syndicate or selling group, has agreed in writing to hold the price of the Unsold Maturities in the manner
described in the preceding sentence.
Failure to Meet the Competitive Sale Requirements and/or The Successful Bidder Does Not Intend to Reoffer the
Bonds to the Public – Option C. If the successful bidder has purchased the Bonds for its own account and will not
distribute or resell the Bonds to the public, then, whether or not the competitive sale requirements were met, the reoffering
price certificate will recite such facts and identify the price or prices at which the purchase of the Bonds was made.
Legal Opinion
The legality of the Bonds will be approved by Locke Lord LLP, Boston, Massachusetts, whose opinion will be furnished to
the purchaser without charge. The scope of engagement of Bond Counsel does not extend to passing upon or assuming
responsibility for the accuracy or adequacy of any statements made in the Official Statement other than matters expressly
set forth as their opinion, and they make no representation that they have independently verified the same.
Documents to be Delivered at Closing
It shall be a condition to the obligation of the successful bidder to accept delivery of and pay for the Bonds that the bidder
shall be furnished, without cost, with (a) the approving opinion of the firm of Locke Lord LLP, Boston, Massachusetts,
substantially in the form of Appendix C of the Preliminary Official Statement dated January 13, 2023, included herein, (b)
a certificate in form satisfactory to said firm dated as of February 8, 2023, the delivery date of the Bonds and receipt of
viiSource page 10
payment therefor, to the effect that there is no litigation pending or, to the knowledge of the signers thereof, threatened
affecting the validity of the Bonds or the power of the Town to levy and collect taxes to pay them, (c) a certificate of the
Town Treasurer to the effect that, to the best of his knowledge and belief, the Preliminary Official Statement did not, as of
its date and the date of sale, and the Final Official Statement referred to below, did not as of its date and does not as of the
date of delivery of the Bonds, contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements made therein, in the light of the circumstances under which they were made, not misleading; and (d) a
Continuing Disclosure Certificate substantially in the form of Appendix D of the Preliminary Official Statement dated
January 13, 2023, included herein.
CUSIP Identification Numbers
It is anticipated that CUSIP identification numbers will be printed on the Bonds, but neither the failure to print such numbers
on any Bond, nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to
accept delivery of and pay for the Bonds. The Town assumes no responsibility for any CUSIP Service Bureau or other
charge that may be imposed for the assignment of such numbers.
Continuing Disclosure
In order to assist bidders in complying with Rule 15c2-12(b)(5) promulgated by the Securities and Exchange Commission,
the Town will undertake to provide annual reports and notices of certain significant events. A description of this undertaking
is set forth in the Preliminary Official Statement.
Delivery
The Bonds, in definitive form, will be delivered to the purchaser at DTC, or the offices of its custodial agent, on or about
February 8, 2023, against payment in Federal Reserve funds.
Additional Information and Copies of the Official Statement
Additional information concerning the Town and the Bonds is contained in the Preliminary Official Statement dated January
13, 2023, to which prospective bidders are directed. The Preliminary Official Statement is provided for informational
purposes only and is not a part of this Notice of Sale. Such Preliminary Official Statement is deemed final by the Town as
of its date for purposes of SEC Rule 15c2-12(b)(1).
Copies of the Preliminary Official Statement for the Bonds may be obtained from Brianne M. Susel, Vice President,
UniBank Fiscal Advisory Services, Inc., 49 Church Street, Whitinsville, Massachusetts 01588, telephone (508) 849-4228.
Within seven (7) business days following the award of the Bonds in accordance herewith, up to ten (10) copies of a Final
Official Statement will be furnished to the successful bidder. Additional copies may be obtained at the purchaser's expense.
The right is reserved to reject any or all bids and to reject any bid not complying with this Notice of Sale and, so far as
permitted by law, to waive any irregularity with respect to any proposal.
TOWN OF CANTON
Massachusetts
/s/ William R. Scollins, III
Finance Director/Treasurer
Dated: January 13, 2023
viiiSource page 11
EXHIBIT 1
EXHIBIT TO THE NOTICE OF SALE
Issue Price Certificate for Use If the Competitive
Sale Requirements Are Met
$11,935,000i
TOWN OF CANTON, MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS
Dated February 8, 2023
ISSUE PRICE CERTIFICATE AND RECEIPT
The undersigned, on behalf of [NAME OF SUCCESSFUL BIDDER] (the “Successful Bidder”),
hereby certifies as set forth below with respect to the sale of the above-captioned obligations (the “Bonds”) of the Town of
Canton, Massachusetts (the “Issuer”).
1. Reasonably Expected Initial Offering Prices.
As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by the Successful
Bidder are the prices listed in Schedule A (the “Expected Offering Prices”). The Expected Offering Prices are the prices for
the Maturities of the Bonds used by the Successful Bidder in formulating its bid to purchase the Bonds. Attached as Schedule
B is a true and correct copy of the bid provided by the Successful Bidder to purchase the Bonds.
The Successful Bidder was not given the opportunity to review other bids prior to submitting its bid.
The bid submitted by the Successful Bidder constituted a firm offer to purchase the Bonds.
2. Defined Terms.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds
with the same maturity date but different stated interest rates, are treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation)
other than an Successful Bidder or a related party to an Successful Bidder. The term “related party” for purposes of this
certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or
indirectly.
“Sale Date” means the first day on which there is a binding contract in writing for the sale of a Maturity of the
Bonds. The Sale Date of the Bonds is January 23, 2023.
“Underwriter” means (i) any person, including the Successful Bidder, that agrees pursuant to a written contract with
the Issuer (or with the lead Successful Bidder to form an underwriting syndicate) to participate in the initial sale of the
Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person
described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a
selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the Public).
3. Receipt. The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents the Successful Bidder’s interpretation of any laws, including specifically Sections 103 and 148 of the
Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that
the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax
i Preliminary, subject to change as described in Notice of Sale.
ixSource page 12
Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Locke Lord LLP
in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income
tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may
give to the Issuer from time to time relating to the Bonds.
Dated: __________, 2023 [SUCCESSFUL BIDDER]
By:
Name:
Title:
______________________________________
MODEL ISSUE PRICE DOCUMENTATION REPORT
Schedule A – Expected Reoffering Prices (to be attached)
Schedule B – Copy of Successful Bidder’s Bid (to be attached)
xSource page 13
OPTION A
Issue Price Certificate for Use If the Competitive Sale Requirements Are
Not Met and the 10% Test is Used
$11,935,000ii
TOWN OF CANTON, MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS
Dated February 8, 2023
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of ______________________ (the (“Successful Bidder”)[, on behalf of itself and
[NAMES OF OTHER UNDERWRITERS] hereby certifies as set forth below with respect to the sale and issuance of the
above-captioned obligations (the “Bonds”).
1. Sale of the Bonds.
As of the date of this certificate, [except as set forth in paragraph 2 below,] for each Maturity of the Bonds, the first
price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule
A.
[Only use the next paragraph if the 10% test has not been met or all of the Bonds have not been sold for one or more
Maturities of Bonds as of the Closing Date.]
For each Maturity of the Bonds as to which no price is listed in Schedule A, as set forth in the Notice of Sale for
the Bonds, until the 10% test has been satisfied as to each Maturity of the Bonds or all of the Bonds are sold to the Public,
the Successful Bidder agrees to promptly report to the Town of Canton’s Muncipal Advisor, UniBank Fiscal Advisory
Services, Inc. (the “Muncipal Advisor”) the prices at which the unsold Bonds of each Maturity have been sold to the Public,
which reporting obligation shall continue after the date hereof until the 10% test has been satisfied for each Maturity of the
Bonds or until all the Bonds of a Maturity have been sold. The Successful Bidder shall continue to report each sale of Bonds
to the Muncipal Advisor until notified by email or in writing by the Issuer or the Muncipal Advisor that it no longer needs
to do so.
2. Defined Terms.
“Issuer” means the Town of Canton.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds
with the same maturity date but different stated interest rates, are treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation)
other than an Successful Bidder or a related party to an Successful Bidder. The term “related party” for purposes of this
certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or
indirectly.
“Underwriter” means (i) any person, including the Successful Bidder, that agrees pursuant to a written contract with
the Issuer (or with the lead Successful Bidder to form an underwriting syndicate) to participate in the initial sale of the
Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person
described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a
selling group or a party to a third-party distribution agreement participating in the initial sale of the Bonds to the Public).
ii Preliminary, subject to change as described in Notice of Sale.
xiSource page 14
3. Receipt.The [Successful Bidder][Representative] hereby acknowledges receipt from the Issuer of the Bonds and further
acknowledges receipt of all certificates, opinion and other documents required to be delivered to the [Successful
Bidder][Representative], before or simultaneously with the delivery of the Bonds, which certificates, opinions and other documents are
satisfactory to the [Successful Bidder][Representative].
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the
Successful Bidder’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code
of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information
will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect
to compliance with the federal income tax rules affecting the Bonds, and by Locke Lord LLP in connection with rendering
its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of
the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to
time relating to the Bonds.
Dated: _________, 2023 [SUCCESSFUL BIDDER]
By: ________________________________
Name:
Title:
Schedule A – Sale Prices (to be attached)
xiiSource page 15
OPTION B
Issue Price Certificate for Use If the Competitive Sale Requirements Are
Not Met and the Hold the Price Rule Is Used
$11,935,000iiiTOWN OF CANTON, MASSACHUSETTS
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS
DATED February 8, 2023
ISSUE PRICE CERTIFICATE AND RECEIPT
The undersigned, on behalf of ______________________ (the (“[Successful Bidder][Representative]”), on behalf of itself [and
[NAMES OF OTHER UNDERWRITERS] ]hereby certifies as set forth below with respect to the sale and issuance of the above-
captioned obligations (the “Bonds”) of the Town of Canton, Massachusetts (the “Issuer”).
1. Sale of the Bonds.
As of the date of this certificate, [except as set forth in paragraph 2 below,] for each Maturity of the Bonds, the first price at
which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A.
[Only use the next paragraph if the 10% test has not been met as of the Sale Date.]
[For each Maturity of the Bonds as to which no price is listed in Schedule A (the “Unsold Maturities”), as set forth in the Notice
of Sale for the Bonds, the [Successful Bidder][Representative] and any other Underwriter did not reoffer the Unsold Maturities to any
person at a price higher than the initial offering price to the public until the earlier of (i) __________, 2023 or (ii) the date on which the
[Successful Bidder][Representative] or any other Underwriter sold at least 10% of each Unsold Maturity at a price that is no higher than
the initial offering price to the Public.]
2. Defined Terms.
“Maturity” means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same
maturity date but different stated interest rates, are treated as separate Maturities.
“Public” means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than
an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or
more persons who have greater than 50 percent common ownership, directly or indirectly.
“Underwriter” means (i) any person, including the [Successful Bidder][Representative], that agrees pursuant to a written
contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to
the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this
paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a third-party
distribution agreement participating in the initial sale of the Bonds to the Public).
3. Receipt.
The [Successful Bidder][Representative] hereby acknowledges receipt from the Issuer of the Bonds and further acknowledges
receipt of all certificates, opinion and other documents required to be delivered to the [Successful Bidder][Representative], before or
simultaneously with the delivery of the Bonds, which certificates, opinions and other documents are satisfactory to the [Successful
Bidder][Representative].
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the
[Successful Bidder’s][Representative’s] interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue
Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will
iii Preliminary, subject to change as described in Notice of Sale.
xiiiSource page 16
be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance
with the federal income tax rules affecting the Bonds, and by Locke Lord LLP in connection with rendering its opinion that the interest
on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form
8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds. The [Successful
Bidder][Representative] hereby acknowledges receipt from the Issuer of the bonds if the Issue and further acknowledges receipt of all
certificates, opinion and other documents required to be delivered to the [Successful Bidder][Representative], before or simultaneously
with the delivery of such bonds of the Issue, which certificates, opinions and other documents are satisfactory to the [Successful
Bidder][Representative].
Dated: ___________, 2023 [SUCCESSFUL BIDDER][REPRESENTATIVE]
By:_______________________________
Name:
Title:
_________________________________
Schedule A – Sale Prices (to be attached)
xivSource page 17
OFFICIAL STATEMENT
TOWN OF CANTON
MASSACHUSETTS
$10,920,000
GENERAL OBLIGATION MUNICIPAL PURPOSE LOAN OF 2023 BONDS
INTRODUCTION
This Official Statement is provided for the purpose of presenting certain information relating to the Town of Canton,
Massachusetts (the “Town”) in connection with the sale of $10,920,000 General Obligation Municipal Purpose Loan of
2023 Bonds, dated their date of delivery (February 8, 2023) (the “Bonds”) of the Town.
The Bonds are being offered for sale at public bidding and a Notice of Sale dated January 13, 2023, has been furnished to
prospective bidders. Reference is hereby made to the Notice of Sale for the terms and conditions of bidding.
The Bonds will be general obligations of the Town for which its full faith and credit are pledged. They are not guaranteed
by The Commonwealth of Massachusetts (the “Commonwealth”) or any other entity. The security for the Bonds is more
fully described under the caption “Security and Remedies” herein. See also the caption “Opinion of Bond Counsel”.
Questions regarding information contained in this Official Statement or other matters should be directed to the following:
William R. Scollins, III, Finance Director/Treasurer, Town of Canton, (781) 575-6612; Brianne Susel, Vice President,
UniBank Fiscal Advisory Services, Inc., (508) 849-4228; or Richard A. Manley, Jr., Esq., Locke Lord LLP, (617) 239-
0684.
The information contained herein has been obtained from the sources indicated or from the Town.
1Source page 18
PART I
THE BONDS
DESCRIPTION OF THE BONDS
The Bonds will be dated their date of delivery and will mature on February 1 of the years and in the principal amounts as
follows:
Due Principal Due Principal
February 1 Amount February 1 Amount
2024 $655,000 2034 $480,000
2025 675,000 2035 480,000
2026 675,000 2036 475,000
2027 680,000 2037 475,000
2028 680,000 2038 475,000
2029 565,000 2039 475,000
2030 565,000 2040 475,000
2031 565,000 2041 475,000
2032 560,000 2042 475,000
2033 545,000 2043 470,000
The Bonds will bear interest at the rate or rates per annum specified by the successful bidder.
Principal and semi-annual interest will be paid by U.S. Bank Trust Company, National Association, Boston, Massachusetts,
or its successor acting as paying agent (the “Paying Agent”) for the Town. Interest from the date of the Bonds will be
payable on August 1, 2023, and semi-annually thereafter on each February 1 and August 1 until maturity or redemption
prior to maturity. So long as The Depository Trust Company, New York, New York (“DTC”) or its nominee, Cede & Co.,
is the Bondowner, such payments of principal of and interest on the Bonds will be made directly to such Bondowner.
Disbursement of such payments to the DTC Participants is the responsibility of DTC and disbursement of such payments
to the Beneficial Owners is the responsibility of the DTC Participants and Indirect Participants, as more fully described
herein.
The Bonds are issuable only in fully registered form without coupons, and, when issued, will be registered in the name of
Cede & Co., as Bondowner and nominee for DTC. DTC will act as securities depository for the Bonds. Purchases of the
Bonds will be made in book-entry form, in the denomination of $5,000 or any integral multiple thereof. Purchasers will not
receive certificates representing their interests in Bonds purchased. So long as Cede & Co. is the Bondowner, as nominee
of DTC, references herein to the Bondowners or registered owner shall mean Cede & Co., as aforesaid, and shall not mean
the Beneficial Owners (as defined herein) of the Bonds.
RECORD DATE
The record date for each payment of interest on the Bonds (the “Record Date”) is the fifteenth day of the month preceding
the interest payment date, provided that, if such date is not a business day, the Record Date shall be the next succeeding
business day. Under certain circumstances, the Paying Agent may establish a special record date. The special record date
may not be more than twenty (20) days before the date set for payment. The Paying Agent will mail notice of a special
record date to the bondholders at least ten (10) days before the special record date.
2Source page 19
BOOK-ENTRY TRANSFER SYSTEM
The Depository Trust Company, New York, New York (“DTC”) will act as securities depository for the Bonds. The Bonds
will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other
name as may be requested by an authorized representative of DTC. One-fully registered Bond certificate will be issued for
each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York Banking
Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System,
a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered
pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing
for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market
instruments (from over 100 countries) that DTC's participants (“Direct Participants”) deposit with DTC. DTC also facilitates
the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through
electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need
for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and
dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary
of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities
Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is
owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and
non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P
Global Ratings rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
Purchases of securities deposited with DTC must be made by or through Direct Participants, which will receive a credit for
such securities on DTC's records. The ownership interest of each actual purchaser of each security deposited with
(“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not
receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect
Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in securities
held by DTC are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of
Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in securities held
by DTC, except in the event that use of the book-entry system for such securities is discontinued.
To facilitate subsequent transfers, all securities deposited by Direct Participants with DTC are registered in the name of
DTC's partnership nominee, Cede & Co., or such other name as requested by an authorized representative of DTC. The
deposit of securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect
any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the securities held by it;
DTC's records reflect only the identity of the Direct Participants to whose accounts such securities are credited, which may
or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of
their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Redemption notices for the Bonds shall be sent to DTC. If less than all of a maturity is being redeemed, DTC’s practice is
to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent to vote with respect to securities held by DTC
unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC
mails an Omnibus Proxy to an issuer of securities as soon as possible after the record date. The Omnibus Proxy assigns
Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts such securities are credited on the
record date (identified in a listing attached to the Omnibus Proxy).
3Source page 20
Principal and interest payments on securities held by DTC will be made to Cede & Co., or such other nominee as may be
requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's
receipt of funds and corresponding detail information from the issuer of such securities or its paying agent, on the payable
date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners
will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC
(nor its nominee), the issuer of such securities or its paying agent, subject to any statutory or regulatory requirements as
may be in effect from time to time. Payment of principal and interest to Cede & Co. (or such other nominee as may be
requested by an authorized representative of DTC) is the responsibility of the issuer of such securities or its paying agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments
to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice
to the Town or its paying agent. Under such circumstances, in the event that a successor depository is not obtained, physical
certificates are required to be printed and delivered.
The Town may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities
depository). In that event, physical certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the
Town believes to be reliable, but the Town takes no responsibility for the accuracy thereof.
DTC PRACTICES
The Town can make no assurances that DTC, Direct Participants, Indirect Participants or other nominees of the Beneficial
Owners of the Bonds will act in a manner described in this Official Statement. DTC is required to act according to rules
and procedures established by DTC and its participants which are on file with the Securities and Exchange Commission.
AUTHORIZATION AND USE OF PROCEEDS
The Bonds are authorized as outlined in the table below:
Statutory
Reference
(MGL Ch. 44
unless
Original otherwise Date of Article
Purpose Bonds Authorization noted) Authorization #
District Improvements $ 6,044,000 $8,597,000 Ch. 40Q 5/11/2015 4
Water Main Replacements 456,500 5,900,000 8(5) 6/22/2020 12-9
Water Program Storage 244,000 3,200,000 8(4)(5) 5/22/2021 11-11
Network Switch Replacements 219,000 235,000 7(1) 5/9/2022 15-4
Rubber Roof Replacements 293,000 320,000 7(1) 5/9/2022 15-5
Sidewalk Tractor 243,000 274,000 7(1) 5/9/2022 15-6
10-Wheel Truck/Plow 273,000 307,000 7(1) 5/9/2022 15-7
Water Main Replacements 2,840,000 3,100,000 8(5) 5/9/2022 15-8
JFK Ventilators 232,500 250,000 7(1) 5/9/2022 15-9
St Gerard’s Property Acquisition 75,000 3,305,000 7(1) 12/1/2021 2
$10,920,000
Debt service on the water projects is expected to be paid, in the first instance, by water revenues. Debt service on the St.
Gerard’s property acquisition is excluded from Proposition 2 ½.
4Source page 21
OPTIONAL REDEMPTION
Bonds maturing in the years 2024 through 2031, inclusive, are not subject to redemption prior to their stated dates of maturity.
Bonds maturing on and after February 1, 2032, are subject to redemption prior to maturity, at the option of the Town, on and
after February 1, 2031, either in whole or in part at any time, and if in part, by lot within a maturity, at par plus accrued interest
to the date set for redemption.
MANDATORY REDEMPTION
If the successful bidder designates principal amounts of the Bonds to be combined into term bonds which may be done only for
principal amounts in consecutive years and only for the years after 2031, such term bonds will be subject to mandatory
redemption on February 1 in the earliest year prior to the stated maturity of each such term bond (the particular Bonds of such
maturity to be redeemed to be selected by lot) as indicated on the cover page of the Preliminary Official Statement at the principal
amount thereof (which amount is subject to change as described in the Official Notice of Sale prepared in connection with the
Bonds) plus accrued interest to the redemption date.
NOTICE OF REDEMPTION
So long as DTC is the registered owner of the Bonds, notice of any redemption of Bonds, prior to their maturities, specifying
the Bonds (or portions thereof) to be redeemed shall be mailed, or sent in such other manner acceptable to DTC, to DTC
not more than 60 days nor less than 30 days prior to the redemption date. Any failure on the part of DTC to notify the DTC
Participants of the redemption or failure on the part of the DTC Participants or of a nominee of a Beneficial Owner (having
received notice from a DTC Participant or otherwise) to notify the Beneficial Owner shall not affect the validity of the
redemption. If moneys for the redemption are held by the Paying Agent on the redemption date and if notice of the
redemption shall have been duly mailed, then from and after the redemption date interest on the Bonds (or portions thereof)
called for redemption shall cease to accrue.
SECURITY AND REMEDIES
Full Faith and Credit. General obligation bonds and notes of a Massachusetts city or town constitute a pledge of its full
faith and credit. To the extent not paid from other sources, the principal of and interest on the Bonds are payable from taxes
which may be levied upon all taxable property within the territorial limits of the Town and taxable by it, without limitation
as to rate or amount, except as provided under Chapter 44, Section 20 of the General Laws, with respect to that portion of
the principal and interest payments that the Town has voted to exempt from the limit imposed by Chapter 59, Section 21C
of the General Laws, and subject to the limit imposed by Chapter 59, Section 21C of the General Laws with respect to that
portion of the principal and interest payments that the Town has not voted to exempt from that limit; provided that taxes
levied on certain taxable property located within a development district established by the Town pursuant to Chapter 40Q
of the Massachusetts General Laws may be restricted and unavailable to pay the principal of and interest on the Bonds.
Payment is not limited to a particular fund or revenue source. Except for “qualified bonds” (see “Serial Bonds and Notes”
herein) and setoffs of state distributions (see “State Distributions” herein), no provision is made by the Massachusetts
statutes for priorities among bonds and notes and other general obligations, although the use of certain moneys may be
restricted.
Tax Levy. The Massachusetts statutes direct the municipal assessors to include annually in the tax levy for the next fiscal
year “all debt and interest charges matured and maturing during the next fiscal year and not otherwise provided for (and)
all amounts necessary to satisfy final judgments”. Specific provision is also made for including in the next tax levy payments
of rebate amounts not otherwise provided for and payment of notes in anticipation of federal or state aid if the aid is no
longer forthcoming.
The total amount of a tax levy is limited by statute. However, the voters in each municipality may vote to exclude from the
limitation any amounts required to pay debt service on indebtedness incurred before November 4, 1980. Local voters may
also vote to exempt specific subsequent bond issues from the limitation (see “Tax Limitations” herein). In addition,
obligations incurred before November 4, 1980 may be constitutionally entitled to payment from taxes in excess of the
statutory limit.
5Source page 22
The Town voted to exclude the debt service on $75,000 principal amount of the Bonds and $11,457,500 principal amount
of currently outstanding bonds from the limitations of Proposition 2½, as described under “Tax Limitations” herein.
Lien. Except for taxes on the increased value of certain property in designated development districts which may be pledged
for the payment of debt service on bonds issued to finance economic development projects within such districts, no provision
is made for a lien on any portion of the tax levy or any other funds of the Town to secure particular bonds or notes or bonds
and notes generally (or judgments on bonds or any notes) in priority to other claims. Provision is made, however, for
borrowing to pay judgments, subject to the General Debt Limit (see “Debt Limits” herein). Subject to the approval of the
State Director of Accounts for judgments above $10,000, judgments may also be paid from available funds without
appropriation and included in the next tax levy unless other provision is made.
Court Proceedings. Massachusetts cities and towns are subject to suit on their general obligation bonds and notes and
courts of competent jurisdiction have power in appropriate proceedings to order payment of a judgment on the bonds or
notes from lawfully available funds or, if necessary, to order the city or town to take lawful action to obtain the required
money, including the raising of it in the next annual tax levy, within the limits prescribed by law (see “Tax Limitations”
herein). In exercising their discretion as to whether to enter such an order, the courts could take into account all relevant
factors including the current operating needs of the city or town and the availability and adequacy of other remedies. The
Massachusetts Supreme Judicial Court has stated in the past that a judgment against a municipality can be enforced by the
taking and sale of the property of any inhabitant. However, there has been no judicial determination as to whether this
remedy is constitutional under current due process and equal protection standards.
Restricted Funds. Massachusetts statutes also provide that certain water, gas and electric, community antenna television
system, telecommunications, sewer, parking meter and passenger ferry fee, community preservation and affordable housing
receipts may be used only for water, gas and electric, community antenna television system, telecommunications, sewer, parking,
mitigation of ferry service impacts, community preservation and affordable housing purposes, respectively; accordingly, moneys
derived from these sources may be unavailable to pay general obligation bonds and notes issued for other purposes. A city or
town that accepts certain other statutory provisions may establish an enterprise fund for a utility, health care, solid waste,
recreational or transportation facility and for police or fire services; under those provisions any surplus in the fund is restricted
to use for capital expenditures or reduction of user charges for such activity. In addition, subject to certain limits, a city or town
may annually authorize the establishment of one or more revolving funds in connection with use of certain revenues for programs
that produce those revenues; interest earned on a revolving fund is treated as general fund revenue. A city or town may also
establish an energy revolving loan fund to provide loans to owners of privately-held property in the city or town for certain
energy conservation and renewable energy projects, and may borrow to establish such a fund. The loan repayments and interest
earned on the investment of amounts in the fund shall be credited to the fund. Also, the annual allowance for depreciation of a
gas and electric plant or a community antenna television and telecommunications system is restricted to use for plant or system
renewals and improvements, for nuclear decommissioning costs, and costs of contractual commitments, or, with the approval
of the State Department of Telecommunications and Energy, to pay debt incurred for plant or system reconstruction or renewals.
Revenue bonds and notes issued in anticipation of them may be secured by a prior lien on specific revenues. Receipts from
industrial users in connection with industrial revenue financings are also not available for general municipal purposes.
State Distributions. State grants and distributions may in some circumstances be unavailable to pay general obligation
bonds and notes of a city or town in that the State Treasurer is empowered to deduct from such grants and distributions the
amount of any debt service paid on “qualified bonds” (see “Serial Bonds and Notes” herein) and any other sums due and
payable by the city or town to the Commonwealth, or certain other public entities, including any unpaid assessments for
costs of any public transportation authority such as the Massachusetts Bay Transportation Authority (the “MBTA”) or a
regional transit authority of which it is a member or for costs of the Massachusetts Water Resources Authority (the
“MWRA”) if the city or town is within the territory served by the Authority, for any debt service due on obligations issued
to the Massachusetts School Building Authority, or for charges necessary to meet obligations under the Commonwealth’s
Clean Water or Drinking Water Revolving Loan Programs, including such charges imposed by another local governmental
unit that provides wastewater collection or treatment services or drinking water treatment services to the city or town.
6Source page 23
If a city or town is (or is likely to be) unable to pay principal or interest on its bonds or notes when due, it is required to
notify the State Commissioner of Revenue. The Commissioner shall in turn, after verifying the inability, certify the inability
to the State Treasurer. The State Treasurer shall pay the due or overdue amount to the paying agent for the bonds or notes,
in trust, within three days after the certification or one business day prior to the due date (whichever is later). This payment
is limited, however, to the estimated amount otherwise distributable by the Commonwealth to the city or town during the
remainder of the fiscal year (after the deductions mentioned in the foregoing paragraph). If for any reason any portion of
the certified sum has not been paid at the end of the fiscal year, the State Treasurer shall pay it as soon as practicable in the
next fiscal year to the extent of the estimated distributions for that fiscal year. The sums so paid shall be charged (with
interest and administrative costs) against the distributions to the city or town.
The foregoing does not constitute a pledge of the faith and credit of the Commonwealth. The Commonwealth has not agreed
to maintain existing levels of state distributions, and the direction to use estimated distributions to pay debt service may be
subject to repeal by future legislation. Moreover, adoption of the annual appropriation act has sometimes been delayed
beyond the beginning of the fiscal year and estimated distributions which are subject to appropriation may be unavailable
to pay local debt service until they are appropriated.
Bankruptcy. Enforcement of a claim for payment of principal or interest on general obligation bonds or notes would be subject
to the applicable provisions of Federal bankruptcy laws and to the provisions of other statutes, if any, hereafter enacted by the
Congress or the State legislature extending the time for payment or imposing other constraints upon enforcement insofar as the
same may be constitutionally applied. Massachusetts municipalities are not currently authorized by the Massachusetts General
Laws to file a petition for bankruptcy under Federal bankruptcy laws. In cases involving significant financial difficulties faced
by a single city, town or regional school district, however, the Commonwealth has enacted special legislation to permit the
appointment of a fiscal overseer, finance control board or, in the most extreme cases, a state receiver. In a limited number of
these situations, such special legislation has also authorized the filing of federal bankruptcy proceedings, with the prior approval
of the Commonwealth. In each case where such authority was granted, it expired at the termination of the Commonwealth’s
oversight of the financially distressed city, town or regional school district. To date, no such filings have been approved or
made.
OPINION OF BOND COUNSEL
A copy of the legal opinion of the firm of Locke Lord LLP, of Boston, Massachusetts, Bond Counsel to the Town, (see
Appendix C) will be furnished to the successful bidder. The opinion will be dated and given on and will speak only as of
the date of original delivery of the Bonds. The scope of engagement of Bond Counsel does not extend to passing upon or
assuming responsibility for the accuracy or adequacy of any statements made in this Official Statement other than matters
expressly set forth as their opinion and they make no representation that they have independently verified the same.
TAX EXEMPTION
In the opinion of Locke Lord LLP, Bond Counsel to the Town (“Bond Counsel”), based upon an analysis of existing laws,
regulations, rulings, and court decisions, and assuming, among other matters, compliance with certain covenants, interest
on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue
Code of 1986, as amended (the “Code”). Bond Counsel is of the further opinion that interest on the Bonds will not be
included in computing the alternative minimum taxable income of Bondholders who are individuals. For tax years beginning
after December 31, 2022, however, interest on the Notes will be included in the “adjusted financial statement income” of
certain corporations that are subject to the alternative minimum tax under Section 55 of the Code. Bond Counsel expresses
no opinion regarding any other federal tax consequences arising with respect to the ownership or disposition of, or the
accrual or receipt of interest on the Bonds. The Bonds will not be designated as “qualified tax-exempt obligations” for
purposes of Section 265(b)(3) of the Code.
The Code imposes various requirements relating to the exclusion from gross income for federal income tax purposes of
interest on obligations such as the Bonds. Failure to comply with these requirements may result in interest on the Bonds
being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Bonds.
The Town has covenanted to comply with such requirements to ensure that interest on the Bonds will not be included in
federal gross income. The opinion of Bond Counsel assumes compliance with these requirements.
7Source page 24
Bond Counsel is also of the opinion that, under existing law, interest on the Bonds is exempt from Massachusetts personal
income taxes, and the Bonds are exempt from Massachusetts personal property taxes. Bond Counsel has not opined as to
other Massachusetts tax consequences arising with respect to the Bonds. Prospective Bondholders should be aware,
however, that the Bonds are included in the measure of Massachusetts estate and inheritance taxes, and the Bonds and the
interest thereon are included in the measure of certain Massachusetts corporate excise and franchise taxes. Bond Counsel
expresses no opinion as to the taxability of the Bonds or the income therefrom or any other tax consequences arising with
respect to the Bonds under the laws of any state other than Massachusetts. A complete copy of the proposed form of opinion
of Bond Counsel is set forth in Appendix C hereto.
To the extent the issue price of any maturity of the Bonds is less than the amount to be paid at maturity of such Bonds
(excluding amounts stated to be interest and payable at least annually over the term of such Bonds), the difference constitutes
“original issue discount,” the accrual of which, to the extent properly allocable to each owner thereof, is treated as interest
on the Bonds which is excluded from gross income for federal income tax purposes and is exempt from Massachusetts
personal income taxes. For this purpose, the issue price of a particular maturity of the Bonds is either the reasonably
expected initial offering price to the public or the first price at which a substantial amount of such maturity of the Bonds is
sold to the public, as applicable. The original issue discount with respect to any maturity of the Bonds accrues daily over
the term to maturity of such Bonds on the basis of a constant interest rate compounded semiannually (with straight-line
interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such
Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such
Bonds. Bondholders should consult their own tax advisors with respect to the tax consequences of ownership of Bonds
with original issue discount, including the treatment of purchasers who do not purchase such Bonds in the original offering
to the public at the reasonably expected initial offering price or, if applicable, the first price at which a substantial amount
of such Bonds is sold to the public.
Bonds purchased, whether at original issuance or otherwise, for an amount greater than the stated principal amount to be
paid at maturity of such Bonds, or, in some cases, at the earlier redemption date of such Bonds (“Premium Bonds”), will be
treated as having amortizable bond premium for federal income tax purposes and Massachusetts personal income tax
purposes. No deduction is allowable for the amortizable bond premium in the case of obligations, such as the Premium
Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, a Bondholder’s
basis in a Premium Bond will be reduced by the amount of amortizable bond premium properly allocable to such
Bondholder. Holders of Premium Bonds should consult their own tax advisors with respect to the proper treatment of
amortizable bond premium in their particular circumstances.
Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events
occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the value of, or the tax status of
interest on, the Bonds.
Although Bond Counsel is of the opinion that interest on the Bonds is excluded from gross income for federal income tax
purposes and is exempt from Massachusetts personal income taxes, the ownership or disposition of, or the accrual or receipt
of interest on, the Bonds may otherwise affect the federal or state tax liability of a Bondholder. Among other possible
consequences of ownership or disposition of, or the accrual or receipt of interest on, the Bonds, the Code requires recipients
of certain social security and certain railroad retirement benefits to take into account receipts or accruals of interest on the
Bonds in determining the portion of such benefits that are included in gross income. The nature and extent of all such other
tax consequences will depend upon the particular tax status of the Bondholder or the Bondholder’s other items of income,
deduction, or exclusion. Bond Counsel expresses no opinion regarding any such other tax consequences, and Bondholders
should consult with their own tax advisors with respect to such consequences.
Risk of Future Legislative Changes and/or Court Decisions
Legislation affecting tax-exempt obligations is regularly considered by the United States Congress and may also be
considered by the Massachusetts legislature. Court proceedings may also be filed, the outcome of which could modify the
tax treatment of obligations such as the Bonds. There can be no assurance that legislation enacted or proposed, or actions
by a court, after the date of issuance of the Bonds will not have an adverse effect on the tax status of interest on the Bonds
or the market value or marketability of the Bonds. These adverse effects could result, for example, from changes to federal
or state income tax rates, changes in the structure of federal or state income taxes (including replacement with another type
8Source page 25
of tax), or repeal (or reduction in the benefit) of the exclusion of interest on the Bonds from gross income for federal or state
income tax purposes for all or certain taxpayers. Additionally, Bondholders should be aware that future legislative actions
(including federal income tax reform) may retroactively change the treatment of all or a portion of the interest on the Bonds
for federal income tax purposes for all or certain taxpayers. In all such events, the market value of the Bonds may be affected
and the ability of Bondholders to sell their Bonds in the secondary market may be reduced. The Bonds are not subject to
special mandatory redemption, and the interest rates on the Bonds are not subject to adjustment, in the event of any such
change in the tax treatment of interest on the Bonds.
Investors should consult their own financial and tax advisors to analyze the importance of these risks.
RATING
S&P Global Ratings has assigned a rating of AAA to the Bonds. Such rating reflects only the view of the rating agency and
will be subject to revision or withdrawal, which could affect the market price of the Bonds.
CONTINUING DISCLOSURE
In order to assist the successful bidder in complying with Rule 15c2-12(b)(5) promulgated by the Securities and Exchange
Commission (the “Rule”), the Town will covenant for the benefit of owners of the Bonds to provide certain financial
information and operating data relating to the Town by not later than 270 days after the end of each fiscal year (the “Annual
Report”), and to provide notices of the occurrence of certain significant events. The covenants will be contained in a
Continuing Disclosure Certificate, the proposed form of which is provided in Appendix D. The Certificate will be executed
by the signers of the Bonds, and incorporated by reference in the Bonds. The Town is the only “obligated person” with
respect to the Bonds within the meaning of the Rule.
The Town believes that, in the last five years, it has complied, in all material respects, with its previous undertakings to
provide financial information or notices of significant events in accordance with the Rule, except ass noted below.
On August 24, 2020, the Town issued an interim loan note with the Massachusetts Water Resource Authority. A notice of
the obligation was filed on September 21, 2020 along with a late filing notice.
9Source page 26
PART II
THE TOWN
The Town of Canton, settled in 1650 and incorporated in 1797, is located in Norfolk County approximately 18 miles south
of downtown Boston. The Town covers an area of approximately 18 square miles and is bordered by the Towns of Milton,
Randolph, Stoughton, Sharon, Norwood, Westwood and Dedham.
CONSTITUTIONAL STATUS AND FORM OF GOVERNMENT
Massachusetts cities and towns are subject to the plenary legislative power of the Commonwealth. As stated by the Supreme
Judicial Court:
A town is not an independent sovereignty. It is merely a subordinate agency of State government. It is a creature
of the Commonwealth, from which are derived all its powers and those of its voters and officers.
Cities and towns provide general governmental services at the local level. Municipalities were traditionally authorized to
exercise only those powers granted by the State legislature, but Massachusetts adopted a Home Rule Amendment to its
Constitution in 1966, under which a city or town may exercise by ordinance or by-law any power which the State legislature
could confer upon it, provided that the ordinance or by-law is consistent with the laws enacted by the State legislature.
Certain powers are excluded from home rule and may still be exercised only when authorized by State law; these powers
include the power to levy taxes, the power to borrow money, and the power to enact private or civil laws governing civil
relationships except as an incident to the exercise of an independent municipal power. Under the Home Rule Amendment
the State legislature may enact general laws relating to a class of two or more municipalities but (except in limited
circumstances) may enact a special law relating to a particular city or town only on request of the city or town or on
recommendation of the governor and passage by a two-thirds vote of both houses of the legislature.
An amendment to the State Constitution provides that any law imposing additional costs on two or more cities or towns by
regulating aspects of municipal employment will not be effective within a city or town until the city council or town meeting
accepts the law. Local acceptance is not required if the legislature has either passed the law by a two-thirds vote or provided
that the additional costs would be assumed by the State.
Cities and towns may change their form of government by adopting home rule charters or amending existing charters. A
town of less than 12,000 population may not change to a city form of government and a town of less than 6,000 inhabitants
may not change from the open town meeting form of government to a limited or representative town meeting form.
Cities are generally governed by a city council and an elected mayor who has the power to veto council actions; the council
may override a mayoral veto by a two-thirds vote of the councilors. Some cities are governed by a city council and an
appointed city manager who has no power to veto council actions; some municipalities, although still called “towns”, have
adopted a similar form of government with a town council and town manager or administrator. Provision is often made for
a referendum on council actions, and for initiation of measures, upon petition of a sufficient number of voters.
Most towns are governed by open town meetings in which any voter may participate. Others have an elected representative
town meeting, often with public officers serving as ex officio members of the town meeting. Provision is usually made for
a referendum on actions of the representative town meeting upon petition of a sufficient number of voters. Administrative
affairs are generally managed by a board of three or more selectmen, sometimes with the assistance of a town manager or
executive secretary.
School affairs of cities and towns are administered by an elected school committee, except in those towns whose educational
functions are carried out entirely through a regional school district.
10Source page 27
GOVERNING BODIES AND OFFICERS
Local legislative decisions are made by an open town meeting consisting of all registered voters in the Town. Subject to
the legislative decisions made by Town Meeting, the affairs of the Town are generally administered by a Select Board of
five members, elected for staggered three-year terms on an at-large basis. Local taxes are assessed by a board of three
assessors elected for staggered three-year terms. The affairs of the schools are generally administered by a School
Committee of five members, elected for staggered three-year terms on an at-large basis.
The following are the principal executive officers:
Manner of Selection Term
Office Name and Term Expires
Select Board John J. Connolly, Chairman Elected/3 years 2025
Lisa R. Lopez, Vice Chair Elected/3 years 2023
Thomas Theodore, Clerk Elected/3 years 2024
Michael C. Loughran Elected/3 years 2024
Christopher J. Connolly Elected/3 years 2023
Town Administrator Charles E. Doody Appointed/3 years 2025
Finance Director/
Treasurer/Collector William R. Scollins, III Appointed/3 years 2024
Accountant Kathleen Dooley Butters Appointed/3 years 2024
Town Clerk Tracy Kenney Elected/3 years 2024
Town Counsel Paul DeRensis Appointed/1 year 2023
SERVICES
The Town provides general governmental services for the territory within its boundaries, including police and fire
protection, public education in grades K though 12, water and sewer, streets, parks and recreation. The principal services
provided by Norfolk County are space for courts, a jail and house of correction and registry of deeds. The MBTA provides
bus service to the Town and commuter rail at two central locations within the Town. The Blue Hills Regional Vocational
High School provides vocational technical education in grades nine through twelve. The Canton Housing Authority
provides housing for eligible low income families, elderly and handicapped persons.
COVID 19
COVID-19 is respiratory disease caused by a novel coronavirus that has not previously been seen in humans. On March 10,
2020, the Governor of The Commonwealth of Massachusetts declared a state of emergency to support the Commonwealth’s
response to the outbreak of the virus. On March 11, 2020 the World Health Organization declared COVID-19 a pandemic.
On March 13, 2020, the President declared a national emergency due to the outbreak, which enabled disaster funds to be
made available to states to fight the pandemic. The State of Emergency in the Commonwealth ended on June 15, 2021.
In response to the COVID-19 pandemic, federal and state legislation was signed into law that provides various forms of
financial assistance and other relief to state and local governments. The federal Coronavirus Aid, Relief, and Economic
Security Act (the “CARES Act”) and the American Rescue Plan Act of 2021 (“ARPA”), both provided significant financial
relief to state and local governments dealing with impacts of the COVID-19 pandemic. The Town was eligible to receive
up to $3,544,135 in CARES Act funding and received reimbursement of $3,544,135. The Town expects to receive
$6,976,762.00 in ARPA Funds and has received $3,941,635 to date. It is fully expected that these Coronavirus Relief Funds
will be sufficient to meet the necessary COVID-19 expenditure requirements of the Town without the need for deficit
spending.
11Source page 28
The Town established a formal and public vetting process for requests to access its ARPA funds. The Town is following
the evolving rules The United States Treasury Department has been issuing in order to remain compliant with their funding
choices. Further, there are additional major federal spending programs that are providing substantial funding in the area of
infrastructure, among others. The Town is monitoring how the Commonwealth plans to share these resources, as well as
the State’s ARPA funds, with towns in the Commonwealth so that the Town is able to maximize its use of ARPA funds.
The virus and the resulting actions by national, state and local governments has altered and continues to alter the behavior
of businesses and people in a manner that may have negative impacts on global and local economies. There can be no
assurances regarding the extent to which COVID-19, or any other national health crisis or pandemic, will impact the national
and state economies and, accordingly, how it will adversely impact municipalities, including the Town. These negative
impacts could include reduced collections of property taxes and other revenues, including room occupancy taxes and local
meals tax revenue, motor vehicle excise taxes and other fees and charges collected by the Town. The Town may also be
affected by any reductions in state aid resulting from reduced revenues at the State level. In addition, stock markets in the
United States and globally could see significant instability attributable to the coronavirus pandemic or any other national
health crisis or pandemic and such instability could adversely affect the funding status of the Town’s pension funds and
resulting funding schedules. The Town cannot quantify these effects at this time.
The Town’s FY 2021 budget was developed during the peak of the COVID 19 pandemic. Accordingly, the Town was even
more conservative than usual with its revenue budget forecast in order to maintain service levels with uncertainty around
its recurring revenue streams. However, FY 2021 turned out to be a strong revenue year for the Town. FY 2021 revenue
performance was much improved by a variety of factors impacting the three major revenue categories, Property Taxes,
Local Receipts and State Aid, despite the COVID-19 pandemic still raging for most of the fiscal year. The Town’s general
fund realized a revenue surplus vs. budget of over $3.8 million. Local Receipts (excise taxes, bldg. permits, misc. revenues,
etc.) provided a $1.6 million positive variance to budget. Building Permits exceeded budget by $1.04 million. Motor
Vehicle Excise Tax was the other category that rebounded and surpassed budget by $600,000. Property Tax revenue also
came in $1.05 million better than plan with new tax growth contributing $475,000 to this result. The collection rate of
99.35% on FY 2021 property taxes in FY 2021 was 1.25% better than FY 2020. The collection rate is typically over 99%
in the year taxed. State Aid was $870,000 better than plan. The Governor and the legislature decided to use CARES Act
funds to commit to what the Governor had originally proposed in January of 2020 for the FY 2021 State Aid budget.
However, that decision wasn’t made until six months into FY 2021. In lieu of a firm commitment on State Aid, many
municipalities revised their State Aid budget estimates downward by 10%, which is exactly what Canton did when the
Town’s budget was finally set in June of 2020. All other general fund revenues came in approximately $290,000 better
than plan.
FY 2022 continued the positive revenue trend for the Town. FY 2022 revenue performance was again quite strong in all
three major revenue categories, Property Taxes, Local Receipts and State Aid. The Town’s general fund realized a revenue
surplus vs. budget of over $3.5 million. Local Receipts (excise taxes, bldg. permits, misc. revenues, etc.) provided a $1.96
million positive variance to budget with most line items exceeding budgeted levels. Motor Vehicle Excise tax exceeded
budget by $709,000. Building Permits exceeded budget by $428,000. Meals and Hotel Excise tax also had their best year
ever surpassing budget by a combined $406,000. Property Tax revenue came in $1.2 million better than plan with new tax
growth contributing the entirety of this result. The collection rate of 98.57% on FY 2022 property taxes in FY 2022 was
0.78% less than FY2021. The collection rate is typically over 99%. As of this writing the FY 2022 property tax collection
rate is 99.02%. State Aid also exceeded budgeted by $235,000.
The Town identified several uses for its ARPA funds across each of the allowable spending categories, including Public
Health, Negative Economic Impacts, Services to Disproportionately Impacted Communities, Infrastructure and Revenue
Replacement. Requests have been funded from the Public Health, Infrastructure and Revenue Replacement categories to
date. The Town anticipates putting the ARPA funds to uses to meet the needs of the community over the allowable spending
timeline.
12Source page 29
AUTHORIZATION OF GENERAL OBLIGATION BOND AND NOTES
Serial bonds and notes are authorized by vote of two-thirds of all the members of the city council (subject to the mayor’s
veto where the mayor has a veto power) or a two-thirds vote of the town meeting. Provision is made in some cities and
towns for a referendum on the borrowing authorization if there is a timely filing of a petition bearing the requisite number
of signatures. Refunding bonds and notes are authorized by the city council or the selectmen. Borrowings for some purposes
require State administrative approval.
When serial bonds or notes have been authorized, bond anticipation notes may be issued by the officers authorized to issue
the serial bonds or notes. Temporary debt in anticipation of the revenue of the fiscal year in which the debt is incurred or
in anticipation of authorized federal and state aid generally may be incurred by the treasurer with the approval of the
selectmen, mayor or city manager as the case may be.
DEBT LIMITS
General Debt Limit. The General Debt Limit of the Town consists of a Normal Debt Limit and a Double Debt Limit. The
Normal Debt Limit is 5 percent of the valuation of taxable property as last equalized by the State Department of Revenue.
The Town can authorize debt up to this amount without state approval. It can authorize debt up to twice this amount (the
Double Debt Limit) with the approval of the State Municipal Finance Oversight Board composed of the State Treasurer, the
State Auditor, the Attorney General and the Director of Accounts.
There are many categories of general obligation debt which are exempt from and do not count against the General Debt Limit
if such debt is authorized by a two-thirds vote of the city or town and such debt is payable within the periods so specified
in Mass. Gen. Laws. c. 44, §8. Among others, these exempt categories include revenue anticipation notes and grant anticipation
notes; emergency loans; loans exempted by special laws; certain school bonds, certain sewer bonds, bonds for water, gas, electric
and telecommunications systems, solid waste disposal facility bonds and economic development bonds supported by tax
increment financing; bonds for water, housing, urban renewal and economic development (subject to various debt limits).
Revenue bonds are not subject to these debt limits. The General Debt Limit applies at the time the debt is authorized. The
special debt limits generally apply at the time the debt is incurred.
Revenue Anticipation Notes. The amount borrowed in each fiscal year by the issue of revenue anticipation notes is limited
to the tax levy of the prior fiscal year, together with the net receipts in the prior fiscal year from the motor vehicle excise
and certain payments made by the Commonwealth in lieu of taxes. The fiscal year ends on June 30. Notes may mature in
the following fiscal year, and notes may be refunded into the following fiscal year to the extent of the uncollected, unabated
current tax levy and certain other items, including revenue deficits, overlay deficits, final judgments and lawful
unappropriated expenditures, which are to be added to the next tax levy, but excluding deficits arising from a failure to
collect taxes of earlier years (see “Taxation to Meet Deficits” herein). In any event, the period from an original borrowing
to its final maturity cannot exceed one year.
TYPES OF OBLIGATIONS
General Obligations. Massachusetts cities and towns are authorized to issue general obligation indebtedness of these
types:
Serial Bonds and Notes. These are generally required to be payable in annual principal amounts beginning no later than
the end of the next fiscal year commencing after the date of issue and ending within the terms permitted by law. A level
debt service schedule, or a schedule that provides for a more rapid amortization of principal than level debt service, is
permitted. The principal amounts of certain economic development bonds supported by tax increment financing may be
payable in equal, diminishing or increasing amounts beginning within 5 years after the date of issue. The maximum terms
vary from one year to forty years, depending on the purpose of the issue. The maximum terms permitted are set forth in the
statutes. In addition, for many projects, the maximum term may be determined in accordance with useful life guidelines
promulgated by the State Department of Revenue (“DOR”). Serial bonds and notes may be issued for the purposes set forth
in the statutes. In addition, serial bonds and notes may be issued for any other public work improvement or asset not
specifically listed in the Statutes that has a useful life of at least 5 years. Bonds or notes may be made callable and redeemed
13Source page 30
prior to their maturity, and a redemption premium may be paid. Refunding bonds or notes may be issued subject to the
maximum applicable term measured from the date of the original bonds or notes, and must produce present value savings
over the debt service of the refunded bonds. Generally, the first required annual payment of principal of the refunding bonds
cannot be later than the end of the fiscal year in which the first principal payment of any of the bonds or notes being refunded
thereby is payable, however, principal payments made before the first principal payment of any of the bonds or notes being
refunded thereby may be in any amount.
Serial bonds may be issued as “qualified bonds” with the approval of the State Municipal Finance Oversight Board
composed of the State Treasurer, the State Auditor, the Attorney General and the Director of Accounts, subject to such
conditions and limitations (including restriction on future indebtedness) as may be required by the Board. Qualified bonds
may mature not less than 10 nor more than 30 years from their dates and are not subject to the amortization requirements
described above. The State Treasurer is required to pay the debt service on qualified bonds and thereafter to withhold the
amount of the debt service paid by the State from state aid or other state payments; administrative costs and any loss of
interest income to the State are to be assessed upon the city or town.
Tax Credit Bonds or Notes. Subject to certain provisions and conditions, the officers authorized to issue bonds or notes
may designate any duly authorized issue of bonds or notes as “tax credit bonds” to the extent such bonds and notes are
otherwise permitted to be issued with federal tax credits or other similar subsidies for all or a portion of the borrowing costs.
Tax credit bonds may be made payable without regard to the annual installments required by any other law, and a sinking
fund may be established for the payment of such bonds. Any investment that is part of such a sinking fund may mature not
later than the date fixed for payment or redemption of the applicable bonds.
Bond Anticipation Notes. These must generally mature within two years of their original dates of issuance, but may be
refunded from time to time for a period not to exceed ten years from their original date of issuance, provided that for each
year that the notes are refunded beyond the second year they must be paid in part from revenue funds in an amount at least
equal to the minimum annual payment that would have been required if the bonds had been issued at the end of the second
year. The maximum term of bonds issued to refund bond anticipation notes is measured from the date of the original issue
of the notes.
Revenue Anticipation Notes. These are issued to meet current expenses in anticipation of taxes and other revenues. They
must mature within one year but, if payable in less than one year, may under statute be refunded from time to time up to
one year from the original date of issue.
Grant Anticipation Notes. These are issued for temporary financing in anticipation of federal grants and state and county
reimbursements for any purpose for which the city or town may incur debt that may be payable over a term of five years or
longer. Generally, they must mature within two years but may be refunded from time to time as long as the municipality
remains entitled to the grant or reimbursement.
Revenue Bonds. Cities and towns may issue revenue bonds for solid waste disposal facilities and for projects financed
under the Commonwealth's Clean Water or Drinking Water Revolving Loan Programs and for certain economic
development projects supported by tax increment financing. In addition, cities and towns which are members of the New
England Power Pool may issue electric revenue bonds, and notes in anticipation of such bonds subject to the approval of
the Department of Public Utilities. The Town does not have an electric department.
14Source page 31
DEBT (1)
The following shows the direct debt outstanding as of February 8, 2023, including the Bonds:
General Obligation Bonds:
Within General Debt Limit (2)
Sewers and Drains (3) $ 427,552
Land Acquisition 4,318,400
Schools (4) 9,313,200
Other Building 2,561,100
Departmental Equipment 2,243,000
Athletic and Recreational Facilities 7,567,000
Streets, Sidewalks & Parking 744,000
Other Inside General 36,000
Architectural and Engineering Services 741,000
The Bonds 1,335,500
$29,417,222
Outside General Debt Limit:
The Bonds $10,920,000
Schools (4) 138,000
Sewers (3) 2,975,489
Water (3) 23,564,500
Other Outside General 1,639,694
$38,786,683
Total General Obligation Bonds $68,203,935 (5)
Temporary Loans in Anticipation of:
Revenue $ 0
Bonds 0
Grants 0
Total Temporary Loans 0
Total Direct Debt $68,203,935
___________________
(1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability, other
post-employment benefits liability.
(2) At the present time, the normal general debt limit is $283,239,230 and the double general debt limit is $566,478,460.
(3) Water and sewer debt is self-supporting through water and sewer revenues, respectively.
(4) The Massachusetts School Building Authority pays a grant for 61% of approved construction and interest costs of the Luce School
project to be payable in equal installments over the life of the bonds.
(5) Debt service on the principal amount of $11,457,500 of outstanding bonds has been excluded from the provisions of Proposition
2 ½.
Revenue Anticipation Borrowing
The Town has not borrowed in anticipation of revenue since fiscal 1991, and has no plans to do so at the present time.
15Source page 32
Authorized Unissued Debt and Prospective Financing
After the issuance of the Bonds, the Town will have the following authorized and unissued debt:
Date of Total Amount Expected
Authorization Authorized Remaining Issuance Expected Repayment
Sewer Infiltration and Inflows 5/1/2000 $2,576,000 $ 402,603 various User fee supported (1)
Sewer Equipment 4/30/2008 560,000 145,000 various User fee supported (1)
Revere Street 5/11/2015 8,597,000 2,000,000 unknown Development District/Levy
Land Acquisition 5/9/2016 250,000 250,000 unknown Levy
Water Bonds 6/22/2020 5,900,000 1,440,000 2023 Water Enterprise (1)
Water Mains 5/22/2021 4,350,000 734,000 2023 Water Enterprise (1)
$4,971,603
___________________
(1) While all debt issued by the Town is general obligation debt, it is anticipated that the debt service on these project will be supported
by water and sewer revenues, respectively.
Capital Expenditures Projection
The Town's By-Laws established a Capital Planning Committee which is required to prepare annually a capital needs
analysis which is submitted to the Annual Town Meeting. The Finance Department’s five-year plan earmarks 5% to 6% of
the projected general fund revenues each year for capital purposes. The table below summarizes the Town Meeting
appropriations for fiscal year 2023 and a current capital needs analysis and Finance Committee recommendation for fiscal
2024 through 2028. This analysis is updated and revised annually.
(000 omitted)
2023 2024 2025 2026 2027 2028
Police $ 217 $ 586 $ 240 $ 240 $ 240 $ 240
Fire/Ambulance 239 628 1,156 1,210 750 600
DPW 1,001 1,209 2,095 1,976 1,687 1,000
Schools 1,194 2,479 1,526 1,604 2,000 2,000
Library 366 235 15 100 100 100
Parks & Recreation 47 106 18 50 50 50
Elder & Human Services 0 182 0 0 0 0
Finance Dept./MIS 421 204 249 51 100 100
Property Maintenance 43 1,768 20 395 500 500
Total 3,528 7,397 5,319 5,626 5,427 4,590
Enterprise Funds (1):
Water 3,180 1,609 1,600 1,100 1,100 1,100
Sewer 415 1,600 920 900 1,250 1,200
Skating Rink 0 0 0 0 0 0
Total 3,595 3,209 2,520 2,000 2,350 2,300
Total Capital Expenditures $7,123 $10,606 $7,839 $7,626 $7,777 $6,890
___________________
(1) Capital expenditures are expected to be paid from user fees and enterprise fund surplus.
16Source page 33
Five Years Outstanding Debt (1)
As of June 30
2022 2021 2020 2019 2018
Long-Term Indebtedness
Within the General Debt Limit:
Sewers & Drains $ 459,522 $ 503,050 $ 607,400 $ 933,000 $ 1,460,700
Land Acquisition 4,318,400 1,484,400 1,673,900 1,863,800 50,100
Schools 9,435,400 10,241,500 12,041,900 11,599,500 13,021,400
Other Building 2,782,700 2,608,500 3,597,100 4,576,200 5,639,400
Streets Sidewalks & Parking 744,000 322,000 168,000 189,000 0
Departmental Equipment 2,293,000 2,870,000 2,894,000 3,077,412 3,383,898
Architectural & Engineering Services 741,000 689,000 888,000 180,000 225,000
Athletic & Recreational Facilities 7,567,000 7,020,000 7,347,000 15,000 20,000
Other Inside General 46,000 73,000 101,000 128,000 155,000
Total Within the General Debt Limit $28,387,022 $25,811,450 $29,318,300 $22,561,912 $23,955,498
Outside the General Debt Limit:
Sewers $ 3,254,100 $ 3,701,415 $ 4,278,209 $ 4,730,655 $ 5,184,826
Schools 173,000 244,000 737,000 1,236,600 1,800,000
Other Outside General 1,655,370 1,738,092 1,820,306 1,903,221 352,843
Water 24,147,400 17,092,800 15,815,200 16,322,088 18,236,202
Total Outside the General Debt Limit $29,229,870 $22,776,307 $22,650,715 $24,192,564 $25,573,871
Total Long-Term Indebtedness $57,616,892 $48,587,757 $51,969,015 $46,754,476 $49,529,369
Short-Term Indebtedness
Revenue Anticipation Notes 0 0 0 0 0
Grant Anticipation Notes 0 0 0 0 0
Bond Anticipation Notes 0 0 0 2,500,000 0
Total Short-Term Indebtedness 0 0 0 2,500,000 0
Total Outstanding Indebtedness $57,616,892 $48,587,757 $51,969,015 $49,254,476 $49,529,369
_________________________
(1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt and unfunded pension liability.
Bonded Debt vs. Population, Valuations and Income
As of June 30
2022 2021 2020 2019 2018
Amount (1) $57,616,892 $48,587,757 $51,969,015 $46,754,476 $49,529,369
Per Capita (2) $2,355 $2,022 $2,163 $1,964 $2,096
Percent of Assessed Valuation (3) 0.94 0.87 0.99 0.94 1.04
Percent of Equalized Valuation (4) 1.02 0.86 0.92 0.91 1.07
Per Capita as a percent of
Personal Income (2) per capita 4.17 3.52 3.83 3.48 3.71
_________________________
(1) Principal amount only. Excludes lease and installment purchase obligations, overlapping debt, unfunded pension liability and
other post employment benefit liability.
(2) Source: U.S. Department of Commerce, Bureau of the Census - Latest applicable actuals or estimates.
(3) Source: Board of Assessors - Assessed valuation as of the prior January 1.
(4) Source: Massachusetts Department of Revenue - Equalized valuation in effect for that fiscal year (equalized valuations are
established for January 1 of each even-numbered year)
17Source page 34
Annual Debt Service (1)
Outstanding as of Percent
Fiscal February 8, 2023 The Bonds (3) Total Debt Principal
Year Principal (2) Interest (2) Principal Interest Service Retired (4)
2023 $ 5,821,274 $ 929,642 - - 6,750,916 8.7%
2024 6,563,449 1,668,654 655,000 488,758 9,375,861 19.4%
2025 5,648,721 1,431,956 675,000 465,700 8,221,377 28.8%
2026 5,133,080 1,215,897 675,000 431,950 7,455,927 37.5%
2027 4,787,527 1,029,350 680,000 398,200 6,895,077 45.6%
2028 4,372,064 841,951 680,000 364,200 6,258,215 53.1%
2029 4,101,692 689,198 565,000 330,200 5,686,090 60.1%
2030 3,516,414 532,451 565,000 301,950 4,915,815 66.1%
2031 3,141,231 424,984 565,000 273,700 4,404,915 71.7%
2032 2,324,809 344,565 560,000 245,450 3,474,824 76.0%
2033 1,449,128 275,138 545,000 217,450 2,486,716 78.9%
2034 1,319,512 240,598 480,000 190,200 2,230,310 81.6%
2035 1,319,904 208,894 480,000 171,000 2,179,798 84.3%
2036 1,310,102 176,681 475,000 151,800 2,113,583 86.9%
2037 1,295,000 143,655 475,000 132,800 2,046,455 89.6%
2038 960,000 110,336 475,000 113,800 1,659,136 91.7%
2039 960,000 86,355 475,000 94,800 1,616,155 93.8%
2040 865,000 60,742 475,000 75,800 1,476,542 95.8%
2041 540,000 38,005 475,000 56,800 1,109,805 97.3%
2042 540,000 23,051 475,000 37,800 1,075,851 98.9%
2043 100,000 7,875 470,000 18,800 596,675 99.7%
2044 100,000 5,250 - - 105,250 99.9%
2045 100,000 2,625 - - 102,625 100.0%
$ 56,268,907 $ 10,487,853 $ 10,920,000 $ 4,561,158 $ 82,237,918
___________________
(1) Excludes revenue anticipation notes, grant anticipation notes, bond anticipation notes, lease and installment purchase obligations,
overlapping debt, unfunded pension liability, other post-employment benefits liabilities.
(2) Principal totaling $11,457,500 and interest totaling $2,813,122 has been excluded from the provisions of Proposition 2 ½.
Principal totaling $27,585,412 and interest totaling $4,644,922 is self-supporting.
(3) True Interest Cost on the bonds is 3.0654225%.
(4) Includes the Bonds.
CONTRACTS
Municipal contracts are generally limited to currently available appropriations. A city or town generally has authority to
enter into contracts for the exercise of any of its corporate powers for any period of time deemed to serve its best interests,
but generally only when funds are available for the first fiscal year; obligations for succeeding fiscal years generally are
expressly subject to availability and appropriation of funds. Municipalities have specific authority in relatively few cases
to enter into long-term contractual obligations that are not subject to annual appropriation, including contracts for refuse
disposal and sewage treatment and disposal. Municipalities may also enter into long-term contracts in aid of housing and
renewal projects. There may be implied authority to make other long-term contracts required to carry out authorized
municipal functions, such as contracts to purchase water from private water companies
18Source page 35
Municipal contracts relating to solid waste disposal facilities may contain provisions requiring the delivery of minimum
amounts of waste and payments based thereon and requiring payments in certain circumstances without regard to the
operational status of the facilities.
Municipal electric departments have statutory power to enter into long-term contracts for joint ownership and operation of
generating and transmission facilities and for the purchase or sale of capacity including contracts requiring payments without
regard to the operational status of the facilities. The Town does not have an electric light department.
Cities and towns are authorized to lease (as lessee) off-street parking facilities, school buildings, hospital equipment, data
process equipment, energy conservation equipment and educational equipment for periods ranging up to 10 years. They
may also lease equipment, with the option to purchase, for a period up to 10 years. Contracts may also be made for the
installment purchase of energy conservation equipment over a period up to 10 years. Cities and towns may also lease
various properties as lessor. The Town has not entered into any lease or installment purchase contracts of a substantial
nature.
Pursuant to the Home Rule Amendment to the Massachusetts Constitution, cities and towns may also be empowered to
make other contracts and leases.
The Town has contracted with Republic Services for waste collection and disposal. This contract expires on June 30, 2024.
The current cost for disposal is $88.40 per ton. The total cost for collection, transportation and disposal for fiscal 2022 was
$2,296,448 and the amount budgeted for fiscal year 2023 is $2,442,500.
The projected fiscal 2023 cost for the Solid Waste Program is shown below:
Category Vendor Fiscal 2023 Appropriations
Rubbish
Collection and Transportation Republic Services $1,515,000
Disposal Republic Services 701,000
Landfill Monitoring Woodard & Curran 37,500
Yard Waste
Collection, Transportation American Earth
and Disposal Products 158,000
Hazardous Waste
CRT Recycling Clean Harbors 31,000
Total $2,442,500
OVERLAPPING DEBT
Counties
County expenses including debt service on county bonds are assessed upon the cities and towns within the county in
proportion to their taxable valuation as last equalized by the State Commissioner of Revenue. Legislation enacted in 1997
abolished the county governments of Franklin and Middlesex Counties as of July 1, 1997, with their assets, functions, debts
and other obligations being assumed by the Commonwealth. The abolishment of the Middlesex County government was
in part response to a default by the county in the payment of general obligation notes of the county. The legislation also
abolished the county governments of Hampden and Worcester Counties as of July 1, 1998. Legislation enacted in 1998
abolished the county governments of Hampshire, Essex and Berkshire counties as of January 1, 1999, July 1, 1999 and July
1, 2000, respectively. The legislation also requires the state secretary for administration and finance to establish a plan to
recover the Commonwealth’s expenditures for the liabilities and other debts assumed and paid by the Commonwealth on
behalf of an abolished county. Unless these provisions are changed by further legislation, the state treasurer shall assess
upon each city and town within the jurisdiction of an abolished county an amount not exceeding or equal to the county tax
paid by each such city and town for the fiscal year immediately prior to the abolishment of the county (or two years prior
in the case of Essex County) until such expenditures by the Commonwealth are recovered. It is possible that similar
legislation will be sought to provide for the abolishment of county government in other counties.
19Source page 36
Massachusetts Water Resources Authority
The Massachusetts Water Resources Authority (the “MWRA”) provides wholesale drinking water services andwastewater
collection and treatment services to 43 cities, towns and special purpose entities. Under its enabling legislation, as amended,
the aggregate principal amount of all bonds issued by the MWRA for its corporate purposes may not exceed $6.1 billion
outstanding at any time. Its obligations are secured by revenues of the MWRA. The MWRA assesses member cities, towns and
special purpose entities, which continue to provide direct retail water and sewer services to users. The cities, towns and other
entities collect fees from the users to pay all or part of the assessments; some municipalities levy property taxes to pay part of
the amounts assessed upon them.
Massachusetts Bay Transportation Authority
The MBTA was created in 1964 to finance and operate mass transportation facilities within the greater Boston metropolitan
area. Under its enabling act, the MBTA is authorized to issue bonds for capital purposes, other than refunding bonds, and
for certain specified purposes to an outstanding amount, which does not exceed the aggregate principal amount of
$3,556,300,000. In addition, pursuant to certain of the Commonwealth’s transportation bond bills, the MBTA is authorized to
issue additional bonds for particular capital projects. The MBTA also is authorized to issue bonds of the purpose of refunding
bonds. Under the MBTA’s enabling act debt service, as well as other operating expenses of the MBTA, are to be financed by a
dedicated revenue stream consisting of the amounts assessed on the cities and towns of the MBTA and a dedicated portion of
the statewide sales tax. The amount assessed to each city and town is based on its weighted percentage of the total population
of the authority as provided in the enabling act. The aggregate amount of such assessments is generally not permitted to increase
by more than 2.5 percent per year. (See “Tax Limitations” under “TAX LEVIES” herein.)
The following table sets forth the portion of overlapping debt relating to the Town (1):
Assessments for
Operations and Debt
Service
Outstanding Authorized Unissued Fiscal Year 2023
Norfolk County (2) $15,315,000 $0 $230,341
Blue Hills Regional Vocational Technical
School District (3) $34,265,000 $0 (3) $1,603,337
Massachusetts Resource Water $2,022,211
Authority (4) $24,770,000 (See Paragraph Above) Sewer $4,901,007
Massachusetts Bay Transportation
Authority (5) N/A (See Paragraph Above) $562,758
___________________
(1) Principal amount only. Excludes temporary loans in anticipation of revenue. Omits debt of the Commonwealth.
(2) Source: Treasurer, Norfolk County. Debt is as of February 8, 2023. Authorized debt includes debt authorized by the County
Commissioners under general laws and debt permitted by special enabling acts whether or not yet voted by County Commissioners.
County expenses including debt service on county bonds are assessed upon the cities and towns within the county in proportion to their
taxable valuation as last equalized by the State Commissioner of Revenue. Amount shown here is based on most recent equalized
valuations.
(3) Source: Blue Hills Regional Vocational Technical School District. Debt is as of February 8, 2023. Towns may organize regional
school districts to carry out general or specialized educational functions. The operating expenses and debt service of regional school
districts are apportioned among the member municipalities in accordance with the agreements establishing the districts subject to the
provisions of the Education Reform Act of 1993. The other members of the District are the Towns of Avon, Braintree, Dedham,
Holbrook, Milton, Norwood, Randolph and Westwood. On September 19, 2017 the District School Committee approved a $84.9 million
borrowing to remodel and reconstruct the District high school; this amount is expected to be reduced by a Massachusettts School
Building Authority grant of approximately $43.4 million.
(4) The Town’s share is supported by Water and Sewer Enterprise Funds.
(5) Under forward funding legislation, which began in fiscal 2001, member communities are no longer responsible for overlapping
debt, but only for the municipal assessment.
20Source page 37
RETIREMENT PLAN
The Massachusetts General Laws provide for the establishment of contributory retirement systems for state employees, for
teachers and for county, city and town employees other than teachers. Teachers are assigned to a separate statewide teachers’
system and not to the city and town systems. For all employees other than teachers, this law is subject to acceptance in each
city and town. Substantially all employees of an accepting city or town are covered. If a town has a population of less than
10,000 when it accepts the statute, its non-teacher employees participate through the county system and its share of the county
cost is proportionate to the aggregate annual rate of regular compensation of its covered employees. In addition to the
contributory systems, cities and towns provide non-contributory pensions to a limited number of employees, primarily persons
who entered service prior to July 1, 1937 and their dependents. The Public Employee Retirement Administration Commission
(“PERAC”) provides oversight and guidance for and regulates all state and local retirement systems.
The obligations of a city or town, whether direct or through a county system, are contractual legal obligations and are required
to be included in the annual tax levy. If a city or town, or the county system of which it is a member, has not established a
retirement system funding schedule as described below, the city or town is required to provide for the payment of the portion of
its current pension obligations which is not otherwise covered by employee contributions and investment income. “Excess
earnings,” or earnings on individual employees’ retirement accounts in excess of a predetermined rate, are required to be set
aside in a pension reserve fund for future, not current, pension liabilities. Cities and towns may voluntarily appropriate to their
system’s pension reserve fund in any given year up to five percent of the preceding year’s tax levy. The aggregate amount in
the fund may not exceed ten percent of the equalized valuation of the city or town.
If a city or town, or each member city and town of a county retirement system, has accepted the applicable law, it is required to
annually appropriate an amount sufficient to pay not only its current pension obligations, but also a portion of its future pension
liability. The portion of each such annual payment allocable to future pension obligations is required to be deposited in the
pension reserve fund. The amount of the annual city or town appropriation for each such system is prescribed by a retirement
system funding schedule which is periodically reviewed and approved by PERAC. A system (other than the state employees’
retirement system and the teachers’ retirement system) which conducts an actuarial valuation as of January 1, 2009, or later,
may establish a revised schedule which reduces the unfunded actuarial liability to zero by not later than June 30, 2040, subject
to certain conditions. If the schedule is so extended under such provisions and a later updated valuation allows for the
development of a revised schedule with reduced payments, the revised schedule shall be adjusted to provide that the
appropriation for each year shall not be less than that for such year under the prior schedule, thus providing for a shorter schedule
rather than reduced payments.
The Town participates in the Norfolk County Retirement System (the “System”). The System’s last actuarial study, as of January
1, 2020, indicates that the system is expected to be fully funded by June 30, 2031.
City, town and county systems may choose to participate in the Pension Reserves Investment Trust Fund (the “PRIT Fund”),
which receives additional state funds to offset future pension costs of participating state and local systems. If a local system
participates in the PRIT Fund, it must transfer ownership and control of all assets of its system to the Pension Reserves
Investment Management Board, which manages the investment and reinvestment of the PRIT Fund. Cities and towns with
systems participating in the PRIT Fund continue to be obligated to fund their pension obligations in the manner described above.
The additional state appropriations to offset future pension liabilities of state and local systems participating in the PRIT Fund
are required to total at least 1.3 percent of state payroll. Such additional state appropriations are deposited in the PRIT Fund and
shared by all participating systems in proportion to their interests in the assets of the PRIT Fund as of July 1 for each fiscal year.
Cost-of-living increases for each local retirement system may be granted and funded only by the local system, and only if it has
established a funding schedule. Those statutory provisions are subject to acceptance by the local retirement board and approval
by the local legislative body, which acceptance may not be revoked.
21Source page 38
The annual contributions of the Town to the System for the most recent fiscal years and the amount budgeted for fiscal 2023
are as follows:
Fiscal Year Amount
2023 (budgeted) $6,929,184
2022 6,445,520
2021 6,035,583
2020 5,635,051
2019 5,245,794
2018 4,796,247
As of January 1, 2022 (the most recent date available), the System had assets valued at $1,424,456,980 using an 7.75% rate
of return to support an actuarial accrued liability of $1,793,000,074, leaving an estimated unfunded actuarial liability in the
amount of $368,453,094. The Town’s share of this liability is approximately 7.54% or $27,788,518. Additional information
regarding the System can be found at:
https://www.norfolkcountyretirement.org/sites/default/files/fileattachments/general/page/621/norfolk21_accounting_v3.pdf
The actuarial appropriation forecast for the Norfolk County Retirement system can be seen below.
The foregoing data do not include the retirement system costs or liabilities attributable to employees of the county or the
retirement system costs or liabilities of any other entity of which the Town is a constituent part.
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
In addition to pension benefits, cities and towns may provide retired employees with health care and life insurance benefits. The
portion of the cost of such benefits paid by cities or towns is generally provided on a pay-as-you-go basis.
22Source page 39
The costs paid by the Town for OPEB for the most recent fiscal years and the amount projected for fiscal 2023 are as
follows:
Fiscal Year Amount
2023 (projected) $5,447,460
2022 5,108,281
2021 5,033,198
2020 4,905,429
2019 4,523,578
2018 4,179,556
The Governmental Accounting Standards Board (“GASB”) Statement No. 75, “Accounting and Financial Reporting for Post-
Employment Benefits Other Than Pensions”, replaces the requirements of Statement No. 45, “Accounting and Financial
Reporting by Employers for Post-Employment Benefits other Than Pensions”. Statement 75 introduces a new actuarial cost
method and discount rate as well as new disclosure and methodologies for reporting plan liability and OPEB expenses. It
establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources,
and expense/expenditures. GASB Statement No. 75 requires the net OPEB liability to be measured as of the OPEB Plan’s
most recent fiscal year-end. Accordingly, for the Town, the net OPEB liability was measured as of July 1, 2020. Using a
6.25% discount rate, the Town has determined the net OPEB Liability for other post-employment benefits for active and
retired employees following the GASB Statement 75 (including health care and life insurance) was $86,868,871.
At the Town’s 2013 Annual Town Meeting an OPEB Trust Fund was established pursuant M.G.L Chapter 32B, Section 20.
The audited balance in the fund as of June 30, 2022 was $8,620,248. The Town contributed an additional $914,000 from the
fiscal 2021 budget, $1,050,000 into the account in fiscal 2022 and appropriated $1,150,000 into the account in fiscal 2023. (See
Appendix B for more information on “Other Post-Employment Benefits”.)
PROPERTY TAXATION AND VALUATION
Tax Rate and Valuation-General. Property is classified for the purpose of taxation according to its use. The legislature has
in substance created four classes of taxable property: (1) residential real property, (2) open space land, (3) commercial, and (4)
industrial and personal property). Within limits, cities and towns are given the option of determining the share of the annual
levy to be borne by each of the three categories. The share required to be borne by residential real property is at least 50 percent
of its share of the total taxable valuation; the effective rate for open space must be at least 75 percent of the effective rate for
residential real property; and the share of commercial, industrial and personal property must not exceed 175 percent of their
share of the total valuation. A city or town may also exempt up to 35 percent of the valuation of residential real property (where
used as the taxpayer’s principal residence) and up to 10 percent of the valuation of commercial real property (where occupied
by certain small businesses). Property may not be classified in a city or town until the State Commissioner of Revenue certifies
that all property in the city or town has been assessed at its fair cash value. Such certification must take place every five years
or pursuant to a revised schedule as may be issued by the Commissioner.
Related statutes provide that certain agricultural or horticultural land (assessed at the value it has for these purposes) and
recreational land (assessed on the basis of its use at a maximum of 25 percent of its fair cash value) are all to be taxed at the
rate applicable to commercial property.
In order to determine appropriate relative values for the purposes of certain distributions to and assessments upon cities and
towns, the Commissioner of Revenue biennially makes a redetermination of the fair cash value of the taxable property in
each municipality. This is known as the “equalized valuation”. See “Debt Limits” herein.
23Source page 40
VALUATIONS (1)
The following shows the assessed and equalized valuations for the current and most recent fiscal years:
For Fiscal Year (000)
2023 2022 2021 2020 2019
Real Property (2) $6,642,929 $5,890,054 $5,356,952 $5,047,745 $4,808,033
Personal Property (2) 249,980 234,720 238,049 188,409 181,040
Total $6,892,909 $6,124,774 $5,595,001 $5,236,155 $4,989,073
Equalized Value (3) $5,664,785 $5,664,785 $5,664,785 $5,111,199 $5,111,199
Percent of Total Assessed
to Equalized Valuation 121.7% 108.1% 98.8% 102.4% 97.6%
_________________________
(1) Source: Massachusetts Department of Revenue.
(2) As of January 1 of the prior fiscal year.
(3) The equalized valuations in effect for each year.
The following table shows the breakdown of the total assessed valuation for fiscal years 2021 through 2023 by classification:
For Fiscal Year (000)(1)
Type of Property 2023 % of Total 2022 % of Total 2021 % of Total
Residential $5,224,524 75.8 $4,713,073 77.0 $4,215,107 75.3
Commercial 661,495 9.6 615,527 10.0 633,577 11.3
Industrial 756,910 11.0 561,454 9.2 508,268 9.1
Personal 249,980 3.6 234,720 3.8 238,049 4.1
Total $6,892,909 100.0 $6,124,774 100.0 $5,595,001 100.0
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(1) Source: Massachusetts Department of Revenue.
TAX RATES
Tax Rates Per $1,000 (1)
For Fiscal Year
Type of Property 2023 2022 2021 2020 2019
Residential $10.57 $11.35 $12.20 $12.23 $12.40
Open Space 10.57 11.35 12.20 12.23 12.40
Commercial 21.57 24.18 24.29 25.42 25.77
Industrial 21.57 24.18 24.29 25.42 25.77
Personal 21.57 24.18 24.29 25.42 25.77
Average Tax Rate $13.23 $14.31 $15.18 $15.31 $15.52
Full Value Tax Rate (2) $16.10 $15.47 $14.99 $15.68 $15.15
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(1) Source: Massachusetts Department of Revenue.
(2) Based on the equalized valuation in effect for each year.
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