Canton, Massachusetts · Saved source text
Final Offical Statement dated January 23, 2023
Saved text from 211 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 81
The Town’s commitment to sound economic development is further demonstrated by creating
partnerships with MAPC and the Neponset Valley Chamber of Commerce to ensure that the coordination
and resource allocation on key planning issues facing the Town. The Town reactivated the Economic
Development Committee and created, with Town Meeting, the Permit Advisory Committee both of which
provide technical assistance to new businesses in Canton.
The Town has instituted a Google-based web search device, which identifies Canton as a business-
friendly community. The web product highlights, via a series of videos, the Town of Canton as a solid
and desirable business and family destination. The Town’s continued status as a 43D Expedited
Permitting Community has benefitted the Town greatly and has led to the actual designation of many new
priority development sites. This 43D designation, which was granted to the Town in 2008, came with a
$150,000 grant to hire a permit specialist who has completed the administrative and organizational work
necessary to implement the issuance of permits via an integrated and automated town-wide permit system
which better serves the public and the Town in terms of real time tracking of permits.
The Town has available a permit guidebook, which lays out the Town’s permitting requirements in an
easy-to-use format. The goal is to identify key requirements and improve communications, saving
applicants time and money. The Permit Advisory Committee has been a successful endeavor by bringing
together key permit granting agency representatives to counsel and guide any proponent of a proposed
commercial endeavor. Participation and results continue to be overwhelmingly positive. The Town has
also published a Tax Incremental Financing Evaluation Policy document designed to provide a rational
and consistent intake evaluation of TIF requests. The new approach allows the Town to quantify and
better evaluate any request to reduce taxes for a business seeking to locate or expand. Also, the Town
launched a Payment in Lieu of Taxes Program (PILOT) that encourages non-taxable property owners to
voluntarily participate in the support of public services.
Several years ago, the Town completed construction of the downtown revitalization project commonly
referred to as the Streetscape Improvement Project. This work was funded as a result of a $2.6 million
dollar Commonwealth grant received due to the Town’s Smart Growth efforts and re-zoning of the
Downtown.
In addition, the Town
completed safety and
efficiency improvement
work on two key
intersections ($2.2 million-
dollar Commonwealth
grant) located in the heart of
the Route 138 business
district. These intersections
are located at the Randolph
and Washington Street
Intersections with Route
138. These projects have
improved both the safety
and efficiency of this commercial roadway. The Select Board has also designated a multi-disciplined
group of volunteers who have completed a visioning process which has led to a variety of re-zoning
recommendations with a goal of improving the business climate and enhance zoning flexibility to spur
additional economic development potential along this vital commercial roadway.
Town of Canton, Massachusetts B-5 Annual Comprehensive Financial ReportSource page 82
The Town was also a participant in a regional planning study to evaluate the effects of new growth in
both residential and commercial construction. The study’s focus was to identify growth related problems
such as transportation, infrastructure, environmental, and economic development issues. In addition, a
build-out analysis was completed to assist and improve public policy decision-making with regard to
growth and development related to educational planning. These studies have been coordinated with other
immediate area communities.
The Town is in the process of evaluating the opportunities and or impacts of the South Coast Rail Project
which is advancing through preliminary and environmental design. The State initiative would provide rail
service from Boston to Fall River/New Bedford via a route now determined by the State, known as the
Stoughton Alternative, which will include impacts in Canton.
A few years ago the Town received a MORE grant in the amount of $850,000 and completed
infrastructure improvements along Dan Road, an important commercial area of Town. After much effort,
the Town secured the commitment of Organogenesis, a bio tech firm, now located on Dan Road, which
was contemplating relocation. The Company’s commitment to stay in Canton and expand was an
important part of the Town’s success in obtaining this new funding.
Canton’s Master Plan Initiative required
a careful review and analysis of existing
conditions balanced with a vision for the
future. The work program is designed to
enlist public interest and participation in
shaping the Town’s future. Workshops,
neighborhood meetings, leadership
interviews and community surveys were
conducted. The Town has conducted an
extensive public outreach campaign to
better assure good attendance at
workshops and neighborhood focus
groups.
Existing planning, engineering reports
and documents have been reviewed and a written report, which summarizes their major issues and
relevant recommendations were prepared and remains available. The overall objective of the Master Plan
initiative was to develop a sustainable residential and business development strategy for the Town.
Brightview Canton is a community of 160 apartment homes for seniors which includes independent
living, dedicated assisted living and a specialized program and environment for people living with
Alzheimer’s and other forms of dementia.
This added to existing residential developments such as Windsor Woods, Indian Woods, Pequit View and
Blue Hill Commons; and provide a nice compliment to commercial developments such as Dunkin Brands
with their worldwide corporate headquarters along with other top Canton companies such as Meditech,
Boston Mutual, Computershare, LoJack and Pepsi.
Town of Canton, Massachusetts B-6 Annual Comprehensive Financial ReportSource page 83
There has been increased activity on the development side in the last two years. This includes
the sale and redevelopment of the old Reebok site. In the fall of 2017, Reebok moved to Boston
from its’ decades old home in Canton. Spear Street Capital, an
owner and operator of distinctive office properties, became the
new owner. In 2020 the property was sold to the newly formed
entity of Tufts Associated Health Maintenance Organization,
Inc. (TAHMO). This new company is the result of a merger
between Tufts Health and Harvard Pilgrim Health. TAHMO is
consolidating all of its offices from three other towns to its new
corporate headquarters in Canton. TAHMO is a tax-exempt
entity in the healthcare field. However, the Town negotiated a
30-year payment in lieu of tax (PILOT) agreement with
TAHMO that provided for a $1.6 million PILOT in fiscal year 2022, increasing 3% annually. TAHMO
was attracted to this world-class campus that includes a 518,000 square foot main building along with
three support buildings, two parking structures, a childcare center and a host of fitness amenities,
including an Olympic track, basketball courts, tennis courts and a softball field. Approximately 2,500
employees are anticipated to be headquartered at the new TAHMO corporate home in Canton.
In addition, the following private developments were completed in recent years, or are nearing
completion:
Development projects recently completed or near completion
Name Description Completion Amount
Royall Development Hotel/restaurant Completed 19,200,000
Cardinal's Corner Residential Development Completed 4,131,000
Connor's Wayside Residential Development Completed 4,115,000
Indian Way Residential Development Completed 2,250,000
Stillwater Estates Residential Development On-going 17,100,000
Paul Revere Heritage Site I Residential Development On-going 8,225,000
Paul Revere Heritage Site II Residential Development On-going 8,524,000
Paul Revere Heritage Site III Residential Development On-going 15,000,000
Yorkshire Estates Residential Development On-going 6,949,000
Top Golf Commercial/restaurant On-going 8,200,000
$ 93,694,000
In 2012 the Town entered into a long-term lease of its capped landfill to be used by a private entity to
install solar panels on fifteen acres of the site at no cost to Canton. The lease provides the Town with
guaranteed payments of $20,000 per acre, per year, increasing annually by 2.5%, while allowing the
Town the ability to purchase all the electricity generated by this 5.6-megawatt facility at a substantial
savings.
The Pine Street Solar Facility went online August 15, 2012 (one of the largest in the Northeast) and has
produced the following financial benefits:
x The 62.1 million kwh of solar electricity produced by this facility since its inception have resulted
in $12.8 million of net metering credits which exceeded the $11.5 million paid for generating this
solar power.
x The Town has received lease payments totaling $3.33 million over the last 10 years.
Town of Canton, Massachusetts B-7 Annual Comprehensive Financial ReportSource page 84
x Overall, the Town has received an annual financial benefit from this solar facility which has
helped in balancing the Town’s budget along with increasing free cash reserves; total savings
through fiscal year 2022 are over $4million and currently exceed $ per year.
In summary, Town leaders recognize the importance of maintaining a stable tax situation for its residents.
Development on the commercial side helps accomplish this goal and the Town continues to seek out the
means to maintain vigilance in this area.
Property Taxes The growth of the Town’s main source of revenues, property taxes, is capped by
Proposition 2 ½ and can only be overridden through a ballot by the voters. While revenue increases have
been limited in recent years, fixed costs, including health insurance and pension costs, have increased
more proportionally. As a result, balancing the annual budget is a challenge The Town attempts to
mitigate this impact by conservatively forecasting revenues thus creating free cash in the subsequent year
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In March 2021, the Federal Government passed the American Plan Rescue Act (ARPA) which provides
stimulus payments to State and local government to assist recovery from the pandemic. The Town
expects to receive almost $7. million from this program by the end of fiscal 2023. The grant proceeds
are required to be obligated by December 31, 2024 and spent by December 31, 2026.
The Town’s available reserves on a
GAAP basis represent the amount in
unassigned fund balance. As discussed
previously, the Town’s reserves have
been increasing on an annual basis since
the stabilization of the great recession in
2011.
These strong reserve levels, when
combined with the Town’s strong
management practices, desirable location
in a strong metropolitan statistical area,
assessed valuations and strong wealth factors directly contributed to an upgrade in the Town’s bond rating
to ‘AAA’. This is the highest investment grade possible. The override and the resulting revenue
flexibility to restore lost services and stabilize budgets in future fiscal years were cited as prominent
factors in the upgrade. The Town is committed to maintaining its reserves at a level expected from
communities that engender the highest bond rating.
Town of Canton, Massachusetts B-8 Annual Comprehensive Financial ReportSource page 85
Long-term Financial Planning
Several years ago, the Town implemented a policy of preparing rolling projections. The Town believes
this will provide better insight when preparing annual budgets and will also alert the Town to any
potential budgeting issues far ahead of when these situations become real issues.
The following represents the Town’s summarized budgets for each of the next five years:
2023 2024 2025 2026 2027
Revenues and Other Sources
Real Estate and Personal Property Taxes $ 90,361,116 $ 93,520,061 $ 96,666,400 $ 100,247,188 $ 104,024,469
State Aid 10,697,742 10,767,848 10,873,271 10,979,748 11,087,288
Local Receipts 8,800,000 8,950,000 9,170,000 9,170,000 9,170,000
Transfers and Other Sources 5,848,617 2,907,180 2,859,771 2,699,590 2,447,664
Total Revenues 115,707,475 116,145,089 119,569,442 123,096,526 126,729,421
Expenditures and Other Uses
Education Budget 50,658,405 52,178,157 53,743,502 55,355,807 57,016,481
Municipal Budget 25,025,058 25,775,810 26,549,084 27,345,557 28,165,923
Fixed Costs 33,568,679 34,575,739 35,613,012 36,681,402 37,781,844
State and County Charges 1,568,333 1,615,383 1,663,844 1,713,760 1,765,173
Capital costs and special appropriations 4,887,000 2,000,000 2,000,000 2,000,000 2,000,000
Total Expenditures 115,707,475 116,145,089 119,569,442 123,096,526 126,729,421
Surplus/(Deficit) $ - $ - $ - $ - $ -
Capital Improvements and Financing
The Town continues to invest in infrastructure improvements such as roads, sewers, and water supply
facilities, as well as various municipal and school facility upgrades. These include: Town Hall, Library,
Public Safety facilities, Public Works, Recreational facilities and School building improvement projects.
Recently, the Town completed construction on a proposed $11 million ice rink as well as $6 million in
renovations to the Town pool.
In addition, the Town has completed the construction of two new water filtration plants. These water
filtration plants will provide state of the art water filtration capabilities and allow for the use of local
source water to reduce operating costs, improve water availability (including redundancy) and filtrate
water for customers with the most technologically advanced system available today.
The Town also completed renovations of a former Knights of Columbus Hall and turned it into the new
Senior Center located at 500 Pleasant Street to address the growing, aging population in need of expanded
and updated senior services.
In addition, the Town completed repairs to Shepard Pond dam which was classified by the state as being a
Significant Hazard Dam in poor condition. To help fund this repair project, the Town received a grant
award of $665,000 from the Commonwealth and a $335,000 low interest loan from the Executive Office
of Environmental Affairs.
Town of Canton, Massachusetts B-9 Annual Comprehensive Financial ReportSource page 86
Construction of an eight-classroom addition to the Lt. Peter M. Hansen Elementary School was also
completed recently. This addition has alleviated increasing enrollment concerns while enabling more
children to attend an elementary school in their neighborhood.
As part of the annual budget process, the Capital Planning Committee (CPC) recommends the capital
budget for the upcoming year and prepares a five-year plan to address the long-term capital needs of the
Town. The capital spending plan for the next five-year years is over $35 million. This is funded from
bond issuances and estimated revenues.
The Town’s target set aside to finance its capital plan is 5% of recurring revenues. A portion of its annual
capital plan funds smaller capital projects on a pay-as-you-go basis through recurring revenues while
larger capital projects are financed through borrowing.
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards a
Certificate of Achievement for Excellence in Financial Reporting. This is a very prestigious award and
in order to be awarded a Certificate of Achievement, a government must publish an easily readable and
efficiently organized annual comprehensive financial report. This report must satisfy both generally
accepted accounting principles and applicable legal requirements.
The GFOA awarded this Certificate of Achievement for Excellence in Financial Reporting to the Town of
Canton for its annual comprehensive financial report for the fiscal year ended June 30, 2021. This was the
sixteenth year that the Town has achieved this prestigious award.
A Certificate of Achievement is valid for a period of one year only. We believe that our current annual
comprehensive financial report will meet the Certificate of Achievement Program’s requirements, and we
are submitting it to the GFOA to determine its eligibility for this certificate.
The publication of this annual comprehensive financial report represents an important achievement in the
ability of the Town of Canton to provide enhanced financial information and accountability to its citizens,
elected and appointed officials, and investors. The preparation of this report would not have been
possible without the efficient and dedicated services of the entire staff of the Finance Office.
Special thanks also goes to the certified public accounting firm of Roselli, Clark and Associates for their
advice and assistance in the preparation of this report.
Respectfully submitted,
Charles E. Doody
Town Administrator
William “Randy” Scollins
Finance Director
Town of Canton, Massachusetts B-10 Annual Comprehensive Financial ReportSource page 87
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Canton
Massachusetts
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
Town of Canton, Massachusetts B-11 Annual Comprehensive Financial ReportSource page 88
TOWN OF CANTON, MASSACHUSETTS
ORGANIZATIONAL CHART
Blue Hills Town
Town Board Planning Select Board Housing Board of Library Select Board
Regional School Clerks
Board Trustees Appointed Bodies
Meeting of Health Board of Assessors Authority
District Office
Town Canton Director Town Town Town Director of Executive Library
Director -Affordable Housing Trust
Moderator Representative Public Health Planner Clerk Administrator Assessing Director -Revere & Son Heritage Trust Corporation
-Registrars of Voters
Finance -CommLVVLRQ on Disability
Executive -Zoning Board of Appeals
Committee
Town Counsel -Water/Sewer Rate Policy Commission
Assistant -Youth Commission
Building -Historical Commission
Renovations -Fair Housing Committee
Town Planner Administrative
Committee Secretary -Cable Advisory Committee
Sealer of Weights -Beautification Committee
-Conservation Commission
Capital
and Measures Secretary -Council on Aging
Planning
Committee -Industrial Development
Financing Authority
-Local Emergency Planning
Committee
-Traffic Study Committee
-Industrial Development Commission
Veteran’s Fire Superintendent Elder and Parks & Conservation
Building Police Human Resource Finance
of Human Services Recreation Commission
Commissioner Director Chief Chief Director Director Director Agent
Public Works Director
Building and Human Elder and Parks &
Veteran’s Police Fire Department of Department of
Zoning Resource Recreation
Office Department. Department Public Works Department Finance Human Services
Department
Building
Animal Control
Maintenance
Department
Department
Town of Canton, Massachusetts B-12 Annual Comprehensive Financial ReportSource page 89
CANTON PUBLIC SCHOOLS
CANTON SCHOOL COMMITTEE
ADMINISTRATIVE ASSISTANT TO THE
SUPERINTENDENT/SCHOOL COMMITTEE
SUPERINTENDENT OF SCHOOLS
DIRECTOR .OF CURRICULUM SCHOOL DIRECTOR
BUILDING PRINCIPALS DIRECTOR OF
and INSTRUCTION of FINANCE
STUDENT SERVICES
WIDE AREA EDUCATIONAL SCHOOL
NETWORK TECHNOLOGY SECRETARIES ASSISTANT
SCHOOL COUNCIL SECRETARIES
ADM. ADM.. PRINCIPALS ADMINISTRATIVE ASST.
CAPT.
SPED
K-5 READING PARENT GROUPS
PARENT
BUILDING SPECIALISTS SPECIAL EDUCATION, ADVISORY
TECHNOLOGY DISTRICT ACCOUNTS
FACULTY BUILDING 504, ALT. ED. COUNCIL PAYROLL
SPECIALISTS DEPARTMENT PAYABLE
AND STAFF DEPARTMENT STUDENT SERVICES
COORDINATORS
COORDINATORS FACULTY AND STAFF
COMPUTER PROFESSIONAL
DIRECTOR OF
TEACHERS DEVELOPMENT
CHARMSS FOOD SERVICES
COMMITTEE
CUSTODIANS COLLABORATIVE
FACILITIES
PRIVATE SCHOOLS
DIRECTOR
CAFETERIA
MANAGERS/
CUSTODIANS/ WORKERS
MAINTENANCE
TRANSPORTATION
COORDINATOR
HEALTH
SERVICES
Town of Canton, Massachusetts B-13 Annual Comprehensive Financial ReportSource page 90
PRINCIPAL TOWN OFFICIALS
Elected Officials
Select Board John J. Connolly, Chair
Lisa R. Lopez, Vice-Chair
Thomas W, Theodore, Clerk
Christopher J. Connolly, Member
Michael C. Loughran, Member
School Committee Kristian Merenda, Chairperson
Kendall O’ Halloran, Vice-Chair
Maureen Moran, Clerk
Nichola Gallagher, Member
Laura Arbodola, Member
Principal Executive Officers
Town Administrator Charles E. Doody
Finance Director William R. “Randy” Scollins III
Town Accountant Kathy Dooley Butters
Superintendent of Schools Derek Folan
School Director of Finance Stephen Marshall
Police Chief +HOHQD5DIIHUW\
Fire Chief :HQGHOO5REHU\
DPW Superintendent Michael T. Trotta
Town of Canton, Massachusetts B-14 Annual Comprehensive Financial ReportSource page 91
FINANCIAL SECTION
Purchased in 2022, and recently delivered, above is the Fire Department’s new EMS vehicle. At
a cost of $173,000, it was purchased from the Town’s ARPA earmark.
Town of Canton, Massachusetts B-15 Annual Comprehensive Financial ReportSource page 92
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INDEPENDENT AUDITOR’S REPORT
Honorable Select Board
Town of Canton, Massachusetts
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Canton,
Massachusetts, (the “Town”) as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the Town’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the Town as of June 30, 2022, and the respective changes in financial
position and cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Town and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Town of Canton, Massachusetts B-17 Annual Comprehensive Financial ReportSource page 94
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and the schedules listed under the required supplementary information section in the
accompanying table of contents be presented to supplement the basic financial statements. Such
information is the responsibility of management and, although not part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements,
and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Town of Canton, Massachusetts B-18 Annual Comprehensive Financial ReportSource page 95
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Town’s basic financial statements. The combining and individual nonmajor fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion of any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated 'HFHPEHU
on our consideration of the Town’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contract, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Town’s internal control over
financial reporting and compliance.
Roselli, Clark & Associates
Certified Public Accountants
Woburn, Massachusetts
'HFHPEHU
Town of Canton, Massachusetts B-19 Annual Comprehensive Financial ReportSource page 96
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Management’s Discussion and Analysis Town of Canton, Massachusetts B-21 Annual Comprehensive Financial Report
Source page 98
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As the management of the Town, we offer readers of the accompanying financial statements this narrative
overview and analysis of the financial activities of the Town for the fiscal year ended June 30, 2022.
Financial Highlights
The assets and deferred outflows of the Town exceeded its liabilities and deferred inflows at the close
of the most recent fiscal year by almost $60.9 million (total net position).
The government’s total net position increased by over $10.9 million. This consisted primarily of an
increase in governmental activities’ net position by almost $8.6 million and an increase in Business -
type activities’ net position of over $2.3 million. Details of these changes are discussed in later
sections of the Management Discussion and Analysis.
The Town’s Unassigned Fund Balance reported in the General Fund was almost $22.8 million
(20.5%of General Fund expenditures). Total Fund Balance in the General Fund was almost $30.1
million
(27.1% of General Fund expenditures).
The Town reported a restricted fund balance in its Capital Project Fund of almost $3.5 million. The
Town reported total fund balances of almost $16.2 million in the Combined Nonmajor Governmental
Funds. Almost $16.3 million in Restricted Fund Balances, combined with almost $0.6 million in
Nonspendable Fund Balances which were offset by deficits categorized as unassigned in the amount
of over $0.7 million made up this amount.
The Town’s total debt increased by nearly $9.8 million during the fiscal year. Detail of this net
LQcrease is discussed in the debt section of this Management Discussion and Analysis.
Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the Town’s basic financial
statements.
The Town’s basic financial statements comprise three components:
1) government-wide financial statements,
2) fund financial statements, and
3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Town of Canton, Massachusetts B-23 Annual Comprehensive Financial ReportSource page 100
The layout and relationship of the financial statements and supplementary information is visually
illustrated as follows:
Required Supplementary Management Discussion and Analysis
Information
Government-wide Financial Statements
Governmental Fund Financial Statements
Basic Proprietary Fund Financial Statements
Financial Statements
Fiduciary Fund Financial Statements
Notes to the Basic Financial Statements
Required Supplementary
Information – Budgetary Reporting with Notes, Pension and
Other than MD&A Other Postemployment Benefits
Other Supplementary
Combining Fund Financial Statements/Schedules
Information
Government-wide Financial Statements – The government-wide financial statements are designed to
provide readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. The statement of position presents information on all of the Town’s assets, deferred outflows,
liabilities and deferred inflows, with the net result reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the Town is
improving or deteriorating. The statement of activities presents information showing how the
government’s net position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation
leave.)
The government-wide financial statements consist of two classifications; (1) those whose activities are
principally supported by taxes and intergovernmental revenue (governmental activities), and (2) those
whose activities are intended to recover all or a significant portion of their costs through user fees and
charges (business-type activities).
The governmental activities of the Town include general government, public safety, highways and streets,
sanitation, education, economic development, debt service, fringe benefits and culture and recreation.
The business-type activities of the Town are comprised of water, sewer and rink enterprise funds.
Town of Canton, Massachusetts B-24 Annual Comprehensive Financial ReportSource page 101
Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The Town, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the Town can be divided into three categories: governmental
funds, proprietary funds, and fiduciary funds.
Accounting guidelines distinguish fund balance between amounts that are considered nonspendable, such
as fund balance associated with inventories, and other amounts that are classified based on the relative
strength of the constraints that control the purposes for which specific amounts can be spent. Beginning
with the most binding constraints, fund balance amounts will be reported in the following classifications:
• Restricted—amounts constrained by external parties, constitutional provision, or enabling
legislation
• Committed—amounts constrained by a government using its highest level of decision-making
authority
• Assigned—amounts a government intends to use for a particular purpose
• Unassigned—amounts that are not constrained at all will be reported in the general fund or in
other major funds if negative
Governmental funds – Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government’s near-term financing
decisions.
The Town maintains numerous individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the General Fund and Capital Projects Fund, which are considered to be
major funds. Data from the other governmental funds are combined into a single, aggregated
presentation. Individual fund data for each of these Nonmajor governmental funds is provided in the
form of combining statements.
The Town adopts an annual appropriated budget for its general fund and its enterprise fund. A budgetary
comparison schedule has been provided for the general fund to demonstrate compliance with this budget.
Proprietary funds – The Town maintains two types of proprietary funds. Enterprise funds are used to
report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses an enterprise fund to account for its water, sewer and rink enterprise funds.
Internal service funds are used to report activities that service all other Town Departments. The Town
uses internal service funds to account for self-insured health insurance claims.
Town of Canton, Massachusetts B-25 Annual Comprehensive Financial ReportSource page 102
Fiduciary funds – Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statement because
the resources of those funds are not available to support the Town’s own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds.
Notes to the Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Information - In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information which includes the schedules of the Town’s
proportionate share of the net pension liability, contributions to the pension plan, the Commonwealth’s
share of the net pension liability of the Massachusetts Teacher’s Retirement System, the funding progress
and contribution funding of its obligation to provide other postemployment benefits to its employees as
well as the Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual –
General Fund and notes to this schedule.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the Town, assets exceeded liabilities by almost $60.9 million at the close of the
most recent fiscal year.
Condensed net position data is presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30,
2022 2021 2022 2021 2022 2021
Assets
Currrent and other assets $ 84,704,369 $ 67,454,948 $ 19,454,667 $ 13,307,215 $ 104,159,036 $ 80,762,163
Capital assets, net 112,444,700 111,743,898 57,918,329 54,817,089 170,363,029 166,560,987
Total assets 197,149,069 179,198,846 77,372,996 68,124,304 274,522,065 247,323,150
Deferred outflows of resources 13,605,787 9,168,457 572,501 393,871 14,178,288 9,562,328
Liabilities
Long-term liabilities 146,322,196 144,436,272 33,853,236 27,615,437 180,175,432 172,051,709
Other liabilities 21,712,609 16,544,439 3,954,660 3,401,484 25,667,269 19,945,923
Total liabilities 168,034,805 160,980,711 37,807,896 31,016,921 205,842,701 191,997,632
Deferred inflows of resources 21,069,004 14,317,383 906,845 612,794 21,975,849 14,930,177
Net Position
Net investment in capital assets 86,070,110 85,708,813 31,934,615 31,437,878 118,004,725 117,146,691
Restricted 9,983,304 11,044,088 - - 9,983,304 11,044,088
Unrestricted (74,402,367) (83,683,692) 7,296,141 5,450,585 (67,106,226) (78,233,107)
Total Net Position $ 21,651,047 $ 13,069,209 $ 39,230,756 $ 36,888,463 $ 60,881,803 $ 49,957,672
By far, the largest portion (about $118.0 million) of the Town’s net position reflects its investment in
capital assets (e.g. land, buildings, infrastructure, machinery, and equipment) less any related debt used to
acquire those assets that is still outstanding. The Town uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town’s
investment in its capital assets is reported net of related debt, the resources needed to repay this debt must
be provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities.
Town of Canton, Massachusetts B-26 Annual Comprehensive Financial ReportSource page 103
An additional portion (almost $10.0 million) of the Town’s net position represents resources that are
subject to external restrictions on how they may be used. Unrestricted net position is reported as a deficit
of over $67.1 million due directly to the recognition of net pension and other postemployment liabilities
that continue to be significant.
Condensed changes in net position data are presented as follows:
Governmental Activities Business-Type Activities Total
June 30, June 30, June 30,
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:
Charges for services $ 7,508,382 $ 6,642,517 $ 15,183,450 $ 15,021,100 $ 22,691,832 $ 21,663,617
Operating grants and contributions 22,498,270 29,450,495 - 150,000 22,498,270 29,600,495
Capital grants and contributions 1,434,480 1,694,958 1,235,807 204,450 2,670,287 1,899,408
General revenues:
Property taxes and tax liens 85,661,392 83,971,060 - - 85,661,392 83,971,060
Unrestricted grants and contributions 2,401,522 2,316,820 - - 2,401,522 2,316,820
Other 8,413,105 7,770,032 42,565 50,776 8,455,670 7,820,808
Total Revenues 127,917,151 131,845,882 16,461,822 15,426,326 144,378,973 147,272,208
Expenses
General government 6,554,007 9,078,637 - - 6,554,007 9,078,637
Public safety 19,436,666 19,806,196 - - 19,436,666 19,806,196
Education 78,799,564 79,983,691 - - 78,799,564 79,983,691
Public works 8,388,727 8,580,554 - - 8,388,727 8,580,554
Health and human services 1,775,067 1,622,066 - - 1,775,067 1,622,066
Culture and recreation 4,212,611 3,503,774 - - 4,212,611 3,503,774
Debt service 582,509 660,193 - - 582,509 660,193
Water - - 6,361,192 6,323,100 6,361,192 6,323,100
Sewer - - 6,782,774 6,652,823 6,782,774 6,652,823
Rink - - 561,725 301,885 561,725 301,885
Total Expenses 119,749,151 123,235,111 13,705,691 13,277,808 133,454,842 136,512,919
Change in net position before transfers 8,168,000 8,610,771 2,756,131 2,148,518 10,924,131 10,759,289
Transfers 413,838 (690,607) (413,838) 690,607 - -
Change in net position 8,581,838 7,920,164 2,342,293 2,839,125 10,924,131 10,759,289
Net position, beginning of year 13,069,209 5,038,592 36,888,463 34,049,338 49,957,672 39,087,930
Restatement for agency funds - 110,453 - - - 110,453
Net position, beginning of year,
as restated 13,069,209 5,149,045 36,888,463 34,049,338 49,957,672 39,198,383
Net position, end of year $ 21,651,047 $ 13,069,209 $ 39,230,756 $ 36,888,463 $ 60,881,803 $ 49,957,672
Town of Canton, Massachusetts B-27 Annual Comprehensive Financial ReportSource page 104
Governmental Activities – The governmental activities increased net position by about $8.6 million.
Revenues were about $3.9 million less than the previous year while expenses were about $3.5 million less
than the previous year.
Revenues
Major fluctuations in revenues were from:
Property taxes, which at 67% of total revenues represents the largest revenue. The increase over
the prior year of about $1.7 million is due to the levy limit being assessed ZLWKLQthe legally
allowablelimit under
proposition 2 ½
combined with modest
new growth in
developmental activity.
Operating grants and
contributions which
represent 17.6% of total
revenues decreased by
over $7.0 million over the
prior year. The majority of
this was due to a non-cash
decrease in the State special funding situation for schoolteachers under GASB 68, as a result of a
new actuarial valuation. Which caused on behalf revenues and correlative expenses to be $6.1
million lower than the prior year.
Total other revenues were less than 10% of total revenues and were individually minor in amount
or consistent with the prior year.
Town of Canton, Massachusetts B-28 Annual Comprehensive Financial ReportSource page 105
Expenses
Major fluctuations in expenses were from:
1. Education which represented 65.8% of total expenses and is by far the largest expense category
decreased almost $1.2 million. As discussed under revenue, the Town experienced a non-cash
decrease in its special funding
arrangement for teacher’s pensions
with the State, and the correlative
impact of expense per the new
actuarial study of $6.1 million.
This was offset by increases in
education funded by taxation, to
meet mandatory net school
spending requirements.
2. Public safety costs represent about
16.2% of expenses and were
consistent with the prior year.
3. Other expenses were less than 10% and were individually minor in amount or consistent with the
prior year.
Business-type Activities – Net position of the business-type activities increased over $2.3 million over
the prior year. This was primarily due to an increase in consumption in water and sewer activities and
continued increases in user charges associated with the re-opening of the rink in the previous year with
increased activity due to the easing of social distancing of the pandemic. In addition, the Town received
some one-time State grants.
Fund-wide Financial Analysis of the Government’s Funds
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds – The focus of the Town’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
Town of Canton, Massachusetts B-29 Annual Comprehensive Financial ReportSource page 106
Town’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of
a government’s net resources available for spending at the end of the fiscal year.
As of the close of the current fiscal year, the Town’s governmental funds balance sheet reported a
combined ending fund balance of almost $43.9 million, an increase of almost $5.1 million over the prior
year.
The following is a discussion of the more significant areas:
General Fund
The General Fund ended the year with an unassigned fund balance of almost $22.8 million and a total
fund balance of about $30.1 million. Both increased modestly over prior year amounts.
The Town’s revenues were approximately $3.5 million greater than the prior year. This was primarily
due to statutory increases in property taxes ($2.0 million) allowed to be assessed under Massachusetts
General Laws combined with a new payment in lieu of tax ($1.6 million) assessed to a facility owned by
Tufts. This was offset by increase in expenditures that were appropriated by the Town to match
anticipated revenues. Notably, education expenditures increased by $2.0 million to meet net state
education spending requirements and public safety expenses increased by $1.2 million due to salary
increases, overtime and equipment purchases.
Since revenues and expenditures were consistent in amount the primary increase in the overall fund
balance was due to transfers from other funds appropriated at Town Meeting.
Capital Projects
The Capital projects fund ended the year with almost $3.5 million in restricted fund balances. This
reflected an increase of over $2.4 million over the prior year. This was primarily due to the timing of
bond issuances exceeding capital expenditures.
Combined Nonmajor Funds
The remainder of governmental fund balances are included as Combined Nonmajor Fund Balances and
are classified as either (1) non-spendable, due to being the corpus of an endowment in the amount of
almost $0.6 million; (2) restricted due to constraints placed externally by third-parties of almost $16.3
million and (3) unassigned amounts that are in a deficit position of over $0.7 million.
Revenues and expenditures in this category of funds are typically designed to offset, however, due to the
timing of receipts and disbursements, specifically in school grants, fund balances increased by about $1.4
million.
Proprietary funds – The Town’s proprietary funds are made up of (1) the Water, Sewer and Rink
Enterprise Funds which provides the same type of information found in the government-wide financial
statements under business-type activities and discussed in that section but in more detail; and (2) the
Town’s Internal Service Fund which accounts for the Town’s Health Claims Fund.
The Health Claims Fund has a Net Position balance about $10.6 million. This was an increase of about
$1.5 million. This was due to less claim activity, as health visits continued to be restricted to essential
situations only for part of the year.
Town of Canton, Massachusetts B-30 Annual Comprehensive Financial ReportSource page 107
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget were not significant (less than 1%)
as aggregate revisions were about $600,000 on a budget in excess of $114 million. These revisions were
spread ratably across all expenditure line items.
Major budget to actual differences on the revenue side included property taxes, which were $1.4 million
over forecast. Collections were robust and the Town continued to aggressively pursue delinquent
accounts through tax title and foreclosure. In addition, excise (motor vehicle, meals and hotel) were $1.1
million over forecast. This was primarily due to the opening up of the economy after the pandemic
against the lowered forecasts by the Town.
On the expenditure side, numerous net minor favorable variances which in total approximated $2.6
million existed. This was primarily a result of increased monitoring of expenditures.
Further detail of budget to actual comparisons may be reviewed as part of the Required Supplementary
Information following the footnotes to the report.
Capital Asset and Debt Administration
Capital Assets – The Town’s investment in capital assets for its governmental and business type
activities as of June 30, 2022, amounts to approximately $170.4 million (net of accumulated depreciation)
an increase from the previous year’s balance of approximately $3.8 million as current year additions
exceeded the annual depreciation provision.
Additional information on the Town’s capital assets can be found in Note II subsection D.
Long-term Debt – State statutes limit the amount of general obligation debt a governmental entity may
issue to 5.0 % of its total assessed valuation. The current debt limitation for the Town is approximately
$283.2 million, which is significantly in excess of the Issuances of debt
Town’s outstanding general obligation debt classified Governmental Activities $ 6,265,500
as inside the debt limit.
Business-Type Activities 9,240,088
At the end of the current fiscal year, the Town had total Debt payments:
debt outstanding including premiums of about $61.8 Governmental Activities (3,892,822)
million. The entire amount comprises debt backed by
Business-Type Activities (2,583,630)
the full faith and credit of the government.
Premium from issuance debt:
The Town’s total debt increased by over $9.8 million
Governmental Activities 584,771
during the fiscal year as detailed in the table on the
Business-Type Activities 846,294
right.
The Town’s most recent credit evaluation resulted in Amortization of premium:
the Town maintaining its “AAA” rating from Standard Governmental Activities (381,749)
and Poor‘s Investment Services for its general Business-Type Activities (286,558)
obligation debt. This is the highest investment grade $ 9,791,894
given by this agency.
Town of Canton, Massachusetts B-31 Annual Comprehensive Financial ReportSource page 108
The Town also holds a proportionate share of debt of other governmental units that provide services
within the Town’s boundaries. The debt service from such arrangements is assessed annually to the
Town.
Additional information on the Town’s short-term and long-term debt can be found in Note II under
subsections F and G.
Economic Factors and Next Year’s Budgets and Rates
The Town’s property tax base is made up predominantly of residential real estate taxes, which
comprise about 61% of the Town’s property tax base. The Town also relies heavily on its
commercial and industrial property tax base, which in aggregate comprise about 39% of the Town’s
property tax base. The Town uses a split rate in assessing taxes, thus commercial, industrial and
personal property tax rates are just over double the residential rate. In addition, Chapter 580 of the
Acts of 1980, more commonly referred to as Proposition 2 ½, limits the Town’s ability to increase
taxes in any one year by more than two and one-half percent (2 ½%) of the previous year tax levy.
The Town’s housing market has been very strong for the past several years. This has been bolstered
by mortgage rates at historic lows. Current actions by the Federal Open Market Committee to soften
the economy due to inflation have caused mortgage rates to spike during fiscal year 2023. Such
trends may have an adverse effect on the housing market, and the Town is monitoring this.
Inflation is peaking near 40-year historic highs. This is having adverse impacts on the Town. Wage
inflation cannot guarantee that the Town will be able to maintain employees without increasing
wages. Energy inflation is causing a spike in energy costs. Price inflation is causing a spike in the
price of the delivery and cost of goods and services. The construction building index is nearing
historic highs which may cause the estimates of major capital projects to increase, in addition to the
financing costs of these projects. The Town continues to monitor this situation
All of the above items were considered when the Town developed its budget for fiscal year 2023. The
budget was adopted in May 2022 and the Town’s tax rate was certified in December 2022.
Requests for Information
This financial report is designed to provide a general overview of the Town’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or request for additional financial information should be addressed to the Office of the Finance
Director, 801 Washington Street, Canton, Massachusetts 02021.
Town of Canton, Massachusetts B-32 Annual Comprehensive Financial ReportSource page 109
Basic Financial Statements Town of Canton, Massachusetts B-33 Annual Comprehensive Financial Report
Source page 110
This page intentionally left blank. Town of Canton, Massachusetts B-34 Annual Comprehensive Financial Report
Source page 111
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF NET POSITION
JUNE 30, 2022
Primary Government
Governmental Business-Type
Activities Activities Total
Assets
Cash and cash equivalents $ 56,743,801 $ 14,799,790 $ 71,543,591
Investments 17,262,742 - 17,262,742
Receivables, net:
Property taxes 652,826 - 652,826
Tax liens 1,652,697 110,900 1,763,597
User fees - 4,543,977 4,543,977
Departmental and other 1,773,163 - 1,773,163
Leases 4,290,283 - 4,290,283
Intergovernmental 1,559,876 - 1,559,876
Prepaid items 707,181 - 707,181
Deposit held by third party 61,800 - 61,800
Capital assets not being depreciated 15,357,580 6,537,297 21,894,877
Capital assets, net of accumulated depreciation 97,087,120 51,381,032 148,468,152
Total Assets 197,149,069 77,372,996 274,522,065
Deferred Outflows of Resources
Related to net pension liability 2,723,423 184,353 2,907,776
Related to net other postemployment benefits liability 10,882,364 388,148 11,270,512
Total Deferred Outflows of Resources 13,605,787 572,501 14,178,288
Liabilities
Warrants and accounts payable 2,649,340 141,451 2,790,791
Accrued payroll and withholdings 7,508,508 50,544 7,559,052
Tax refunds payable 2,984,763 - 2,984,763
Health claims incurred but not reported 993,078 - 993,078
Accrued interest 182,231 178,515 360,746
Unearned revenue 1,176,243 - 1,176,243
Other liabilities 1,258,141 10,597 1,268,738
Noncurrent liabilities:
Due within one year 4,960,305 3,573,553 8,533,858
Due in more than one year 146,322,196 33,853,236 180,175,432
Total Liabilities 168,034,805 37,807,896 205,842,701
Deferred Inflows of Resources
Related to leased assets 4,290,283 - 4,290,283
Related to net pension liability 9,629,945 651,866 10,281,811
Related to net other postemployment benfits liability 7,148,776 254,979 7,403,755
Total Deferred Inflows of Resources 21,069,004 906,845 21,975,849
Net Position
Net investment in capital assets 86,070,110 31,934,615 118,004,725
Restricted for:
Nonexpendable permanent funds 592,385 - 592,385
Expendable permanent funds 843,035 - 843,035
Federal and State grants 2,106,686 - 2,106,686
Community preservation 2,605,425 - 2,605,425
Gift funds 3,215,272 - 3,215,272
Other specific purposes 620,501 - 620,501
Unrestricted (74,402,367) 7,296,141 (67,106,226)
Total Net Position $ 21,651,047 $ 39,230,756 $ 60,881,803
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-35 Annual Comprehensive Financial ReportSource page 112
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2022
Program Revenues Net (Expenses) Revenues and Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-Type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Primary government:
Governmental activities:
General government $ 6,554,007 $ 583,866 $ 734,471 $ - $ (5,235,670) $ (5,235,670)
Public safety 19,436,666 4,168,858 529,122 101,182 (14,637,504) (14,637,504)
Education 78,799,564 1,745,173 20,522,123 - (56,532,268) (56,532,268)
Public works 8,388,727 305,621 34,115 789,076 (7,259,915) (7,259,915)
Health and human services 1,775,067 122,012 527,573 - (1,125,482) (1,125,482)
Culture and recreation 4,212,611 582,852 148,623 544,222 (2,936,914) (2,936,914)
Interest expense 582,509 - 2,243 - (580,266) (580,266)
Total governmental activities 119,749,151 7,508,382 22,498,270 1,434,480 (88,308,019) (88,308,019)
Business-type activities:
Water 6,361,192 7,712,653 - - $ 1,351,461 1,351,461
Sewer 6,782,774 7,105,979 B-70 - 483,763 806,968 806,968
Rink 561,725 364,818 - 752,044 555,137 555,137
Total business-type activities 13,705,691 15,183,450 - 1,235,807 2,713,566 2,713,566
Total Primary Government $ 133,454,842 $ 22,691,832 $ 22,498,270 $ 2,670,287 (88,308,019) 2,713,566 (85,594,453)
General Revenues:
Property taxes 85,661,392 - 85,661,392
Tax liens 264,810 - 264,810
Motor vehicle and other excise 4,935,611 - 4,935,611
Hotel and meals taxes 718,256 - 718,256
Payments in lieu of taxes 1,882,844 - 1,882,844
Grants and contributions not restricted
to specific programs 2,401,522 - 2,401,522
Penalties and interest on taxes 284,510 - 284,510
Unrestricted investment income 327,074 42,565 369,639
Transfers (net) 413,838 (413,838) -
Total general revenues and transfers 96,889,857 (371,273) 96,518,584
Change in Net Position 8,581,838 2,342,293 10,924,131
Net Position:
Beginning of year 13,069,209 36,888,463 49,957,672
End of year $ 21,651,047 $ 39,230,756 $ 60,881,803
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-36 Annual Comprehensive Financial ReportSource page 113
TOWN OF CANTON, MASSACHUSETTS
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022
Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Assets
Cash and cash equivalents $ 32,328,672 $ 3,766,129 $ 15,638,534 $ 51,733,335
Investments 9,940,112 - 1,442,414 11,382,526
Receivables, net of allowance for uncollectibles:
Property taxes 645,984 - 6,842 652,826
Tax liens 1,645,968 - 6,729 1,652,697
Motor vehicle excise 530,998 - - 530,998
Intergovernmental 33,089 - 1,526,787 1,559,876
Departmental and other - - 1,117,823 1,117,823
Leases 4,290,283 - - 4,290,283
Due from other funds 976,550 - - 976,550
Total Assets 50,391,656 3,766,129 19,739,129 73,896,914
Deferred Outflows of Resources - - - -
Total Assets and Deferred Outflows of Resources $ 50,391,656 $ 3,766,129 $ 19,739,129 $ 73,896,914
Liabilities
Warrants and accounts payable $ 1,638,317 $ 278,728 $ 528,178 $ 2,445,223
Accrued payroll and withholdings 7,386,764 2,503 119,241 7,508,508
Tax refunds payable 2,984,763 - - 2,984,763
Unearned revenue - - 1,176,243 1,176,243
Other liabilities 1,257,816 - 325 1,258,141
Due to other funds - - 976,550 976,550
Total Liabilities 13,267,660 281,231 2,800,537 16,349,428
Deferred Inflows of Resources
Unavailable revenues - property taxes 2,172,332 - 13,571 2,185,903
Unavailable revenues - excise taxes 530,998 - - 530,998
Unavailable revenues - intergovernmental 33,089 - - 33,089
Unavailable revenues - other - - 753,574 753,574
Unavailable revenues - leases 4,290,283 - - 4,290,283
Total Deferred Inflows of Resources 7,026,702 - 767,145 7,793,847
Fund Balances
Nonspendable - - 592,385 592,385
Restricted - 3,484,898 16,304,328 19,789,226
Committed 3,628,842 - - 3,628,842
Assigned 3,688,869 - - 3,688,869
Unassigned 22,779,583 - (725,266) 22,054,317
Total Fund Balances 30,097,294 3,484,898 16,171,447 49,753,639
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $ 50,391,656 $ 3,766,129 $ 19,739,129 $ 73,896,914
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-37 Annual Comprehensive Financial ReportSource page 114
TOWN OF CANTON, MASSACHUSETTS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TOTAL FUND BALANCES TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Total Governmental Fund Balances $ 49,753,639
Capital assets used in governmental activities are not financial resources and therefore are
not reported in the funds. 112,444,700
Other long-term assets that are unavailable to pay current-period expenditures 3,503,564
Deferred outflows and inflows of resources to be recognized in future fiscal years
are not available resources and, therefore, are not reported in the funds:
Deferred outflows related to net pension liability 2,723,423
Deferred outflows related to net other postemployment benefits liability 10,882,364
Deferred inflows related to net pension liability (9,629,945)
Deferred inflows related to other net postemployment benefits liability (7,148,776)
Net effect of reporting deferred outflows and inflows of resources (3,172,934)
Assets, deferred outflows of resources and liabilities and deferred inflows of resources of the
Town's internal service funds are included in the Statement of Net Position, but are not
reported in the governmental funds. 10,586,810
In the Statement of Activities, interest is accrued on outstanding long-term debt
whereas in the governmental funds interest is not reported until due. (182,231)
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the government funds:
Bonds and notes payable (27,546,569)
Unamortized premiums on bonds (2,104,152)
Compensated absences (2,283,931)
Net pension liability (26,026,726)
Net other postemployment benefits liability (93,321,123)
Net effect of reporting long-term liabilities (151,282,501)
Net Position of Governmental Activities $ 21,651,047
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-38 Annual Comprehensive Financial ReportSource page 115
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
Nonmajor Total
General Capital Governmental Governmental
Fund Projects Funds Funds
Revenues:
Property taxes $ 84,527,456 $ - $ 712,977 $ 85,240,433
Tax liens 148,855 - - 148,855
Intergovernmental 16,884,799 - 8,694,467 25,579,266
Motor vehicle and other excises 5,014,394 - - 5,014,394
Hotel and meals taxes 718,256 - - 718,256
Licenses and permits 1,609,982 - - 1,609,982
Penalties and interest on taxes 284,510 - - 284,510
Payments in lieu of taxes 1,882,844 - - 1,882,844
Fines and forfeitures 39,461 - - 39,461
Charges for services - - 1,606,246 1,606,246
Departmental and other revenue 1,008,914 - 3,321,048 4,329,962
Investment income 214,221 - 22,094 236,315
Contributions and donations - - 541,992 541,992
Total Revenues 112,333,692 - 14,898,824 127,232,516
Expenditures:
Current:
General government 4,149,307 3,433,844 718,037 8,301,188
Public safety 13,611,024 94,714 1,347,939 15,053,677
Education 50,499,937 403,702 7,970,323 58,873,962
Public works 6,402,156 629,025 867,503 7,898,684
Health and human services 1,089,876 - 445,070 1,534,946
Culture and recreation 2,558,165 103,959 990,928 3,653,052
Pension benefits 13,094,149 - - 13,094,149
Employee benefits 13,729,535 - 243,240 13,972,775
State and county assessments 1,461,597 - - 1,461,597
Debt service:
Principal 3,707,822 - 185,000 3,892,822
Interest 860,510 - 66,490 927,000
Total Expenditures 111,164,078 4,665,244 12,834,530 128,663,852
Excess (Deficiency) of Revenues Over (Under) Expenditures 1,169,614 (4,665,244) 2,064,294 (1,431,336)
Other Financing Sources (Uses):
Issuance of bonds and notes - 6,265,500 - 6,265,500
Premiums from bonds and notes - 529,915 54,856 584,771
Transfers in 1,878,161 760,026 858,562 3,496,749
Transfers out (1,010,954) (504,000) (1,567,957) (3,082,911)
Total Other Financing Sources (Uses) 867,207 7,051,441 (654,539) 7,264,109
Net Change in Fund Balances 2,036,821 2,386,197 1,409,755 5,832,773
FUND BALANCES - Beginning of year 28,060,473 1,098,701 14,761,692 43,920,866
FUND BALANCES - End of year $ 30,097,294 $ 3,484,898 $ 16,171,447 $ 49,753,639
See acompanying notes to basic financial statements.
Town of Canton, Massachusetts B-39 Annual Comprehensive Financial ReportSource page 116
TOWN OF CANTON, MASSACHUSETTS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FISCAL YEAR ENDED JUNE 30, 2022
Net Change in Fund Balances - Total Governmental Fund Balances $ 5,832,773
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense. The net amounts are reflected here as reconciling items:
Capital outlays 6,478,828
Depreciation expense (5,778,026)
Net effect of reporting capital assets 700,802
In the Statement of Activities, Internal Service Funds established to administer the Town's
health insurance and worker's compensation activities are included within the Statement of
activities whereas these activities are not presented in the Statement of Revenues,
Expenditures and Changes in Fund Balances. 1,499,928
The issuance of long-term debt provides current financial resources to governmental funds,
while the repayment of the principal of long-term debt consumes the financial resources of
governmental funds. Neither has any effect on net position. Also governmental funds report
the effect of issuance costs, premiums, discounts, and similar items when debt is first issued,
whereas these amounts are amortized in the Statement of Activities. The net amounts are
reflected here as reconciling items:
Issuance of general obligation bonds and notes (6,265,500)
Premiums from bonds and notes (584,771)
Amortization of premiums on bonds and notes payable 381,749
Repayments of debt 3,892,822
Net effect of reporting long-term debt (2,575,700)
Revenues in the Statement of Activities that do not provide current financial resources are
unavailable in the Statement of Revenues, Expenditures and Changes in Fund Balances.
Therefore, the recognition of revenue for various types of accounts receivable differ between
the two statements. The amount presented represents the difference in unavailable revenue. 593,876
In the Statement of Activities, interest is accrued on outstanding long-term debt;
whereas in governmental funds interest is not reported until due. The net
amount presented here as a reconciling item represents the difference in
accruals between this year and the prior year. (37,258)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in the governmental funds:
Compensated absences 34,409
Pension benefits 4,195,906
Other postemployment benefits (1,662,898)
Net effect of reporting long-term liabilities 2,567,417
Change in Net Position of Governmental Activities $ 8,581,838
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-40 Annual Comprehensive Financial ReportSource page 117
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
Governmental
Business-Type Activities Activities
Total Internal
Enterprise Service
Water Sewer Rink Funds Funds
Assets
Current assets:
Cash and cash equivalents $ 8,412,400 $ 5,324,381 $ 1,063,009 $ 14,799,790 $ 5,010,466
Investments - - - - 5,880,216
Receivables (net):
User charges 2,527,583 2,016,394 - 4,543,977 -
Tax liens 54,219 56,681 - 110,900 -
Departmental and other - - - - 124,342
Prepaid items - - - - 707,181
Deposit held by third party - - - - 61,800
Total current assets 10,994,202 7,397,456 1,063,009 19,454,667 11,784,005
Noncurrent assets:
Capital assets not being depreciated 6,537,297 - - 6,537,297 -
Capital assets, net of accumulated depreciation 29,115,301 11,914,418 10,351,313 51,381,032 -
Total noncurrent assets 35,652,598 11,914,418 10,351,313 57,918,329 -
Total Assets 46,646,800 19,311,874 11,414,322 77,372,996 11,784,005
Deferred Outflows of Resources
Related to net pension liability 93,340 74,439 16,574 184,353 -
Related to net other postemployment benefit liability 267,743 102,965 17,440 388,148 -
Total Deferred Outflows of Resources 361,083 177,404 34,014 572,501 -
Liabilities
Current liabilities:
Warrants and accounts payable 109,446 30,750 1,255 141,451 204,117
Accrued payroll and withholdings 32,961 17,271 312 50,544 -
Health claims incurred but not reported - - - - 993,078
Accrued interest 151,544 26,971 - 178,515 -
Other liabilities 10,597 - - 10,597 -
Compensated absences 35,050 7,884 - 42,934 -
Bonds and notes payable 2,966,069 505,501 59,049 3,530,619 -
Total current liabilities 3,305,667 588,377 60,616 3,954,660 1,197,195
Noncurrent liabilities:
Compensated absences 105,151 23,652 - 128,803 -
Net other postemployment benefit liability 2,296,006 882,974 149,553 3,328,533 -
Net pension liability 892,011 711,386 158,396 1,761,793 -
Bonds and notes payable 23,748,275 3,033,044 1,852,788 28,634,107 -
Total noncurrent liabilities 27,041,443 4,651,056 2,160,737 33,853,236 -
Total Liabilities 30,347,110 5,239,433 2,221,353 37,807,896 1,197,195
Deferred Inflows of Resources
Related to net pension liability 330,046 263,215 58,605 651,866 -
Related to net other postemployment benefit liability 175,884 67,639 11,456 254,979 -
Total Deferred Inflows of Resources 505,930 330,854 70,061 906,845 -
Net Position
Net investment in capital assets 15,119,266 8,375,873 8,439,476 31,934,615 -
Unrestricted 1,035,577 5,543,118 717,446 7,296,141 10,586,810
Total Net Position $ 16,154,843 $ 13,918,991 $ 9,156,922 $ 39,230,756 $ 10,586,810
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-41 Annual Comprehensive Financial ReportSource page 118
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
Governmental
Business-Type Activities Activities
Total Internal
Enterprise Service
Water Sewer Rink Funds Funds
Operating Revenues:
Charges for services $ 7,712,653 $ 7,105,979 $ 364,818 $ 15,183,450 $ -
Employee contributions - - - - 4,053,927
Employer contributions - - - - 11,875,693
Stop loss reimbursements - - - - 192,694
Total Operating Revenues 7,712,653 7,105,979 364,818 15,183,450 16,122,314
Operating Expenses:
Operating costs 3,212,179 1,321,271 230,122 4,763,572 -
Massachusetts Water Resources Authority assessment 1,518,359 4,804,153 - 6,322,512 -
Depreciation 1,189,461 593,495 282,202 2,065,158 -
Employee benefits - - - - 14,713,145
Total Operating Expenses 5,919,999 6,718,919 512,324 13,151,242 14,713,145
Operating Income (Loss) 1,792,654 387,060 (147,506) 2,032,208 1,409,169
Nonoperating Revenues (Expenses):
Intergovernmental - - - - -
Investment income 21,852 19,172 1,541 42,565 90,759
Interest expense (441,193) (63,855) (49,401) (554,449) -
Total Nonoperating Revenues (Expenses) (419,341) (44,683) (47,860) (511,884) 90,759
Income Before Capital Contributions
and Transfers 1,373,313 342,377 (195,366) 1,520,324 1,499,928
Capital contributions - 483,763 752,044 1,235,807 -
Transfers in 1,035 1,356 204,000 206,391 -
Transfers out (610,025) (10,204) - (620,229) -
Total Capital Contributions and Transfers (608,990) 474,915 956,044 821,969 -
Change in Net Position 764,323 817,292 760,678 2,342,293 1,499,928
Total Net Position - Beginning of the Year 15,390,520 13,101,699 8,396,244 36,888,463 9,086,882
Total Net Position - End of the Year $ 16,154,843 $ 13,918,991 $ 9,156,922 $ 39,230,756 $ 10,586,810
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-42 Annual Comprehensive Financial ReportSource page 119
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FISCAL YEAR ENDED JUNE 30, 2022
Governmental
Business-Type Activities Activities
Total Internal
Enterprise Service
Water Sewer Rink Funds Funds
Cash Flows from Operating Activities:
Receipts from users $ 7,127,792 $ 6,834,749 $ 364,818 $ 14,327,359 $ -
Receipts from interfund services provided - - - - 16,190,919
Payments to employees (1,054,069) (478,192) (35,946) (1,568,207) -
Payments to vendors (3,880,613) (5,722,659) (301,149) (9,904,421) -
Payments for interfund services used - - - - (15,296,310)
Net Cash Provided by (Used in) Operating
Activities 2,193,110 633,898 27,723 2,854,731 894,609
Cash Flows from Noncapital Financing Activities:
Intergovernmental operating grants - - - - -
Transfers in 1,035 1,356 204,000 206,391 -
Transfers out (610,025) (10,204) - (620,229) -
Net Cash Provided by 8VHGLQ Noncapital
Financing Activities (608,990) (8,848) 204,000 (413,838) -
Cash Flows from Capital and Related Financing Activities:
Proceeds from capital contributions - 483,763 752,044 1,235,807 -
Proceeds from the issuance of bonds and notes 9,195,500 44,588 - 9,240,088 -
Premiums from the issuance of bonds and notes 846,294 - - 846,294 -
Acquisition and construction of capital assets (4,895,760) (270,638) - (5,166,398) -
Principal payments on bonds and notes (2,044,900) (488,730) (50,000) (2,583,630) -
Interest payments on bonds and notes (606,191) (99,216) (58,851) (764,258) -
Net Cash 3URYLGHGE\ Used in Capital and Related
Financing Activities 2,494,943 (330,233) 643,193 2,807,903 -
Cash Flows from Investing Activities:
Investment income 21,852 19,172 1,541 42,565 90,759
Investment of operating cash - - - - (1,090,315)
Net Cash Provided by (Used in) Investing Activities 21,852 19,172 1,541 42,565 (999,556)
Net Change in Cash and Cash Equivalents 4,100,915 313,989 876,457 5,291,361 (104,947)
Cash and Cash Equivalents:
Beginning of the year 4,311,485 5,010,392 186,552 9,508,429 5,115,413
End of the year $ 8,412,400 $ 5,324,381 $ 1,063,009 $ 14,799,790 $ 5,010,466
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating Income (Loss) $ 1,792,654 $ 387,060 $ (147,506) $ 2,032,208 $ 1,409,169
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Depreciation 1,189,461 593,495 282,202 2,065,158 -
Changes in assets, deferred outflows of resources,
liabilities and deferred inflows of resources:
Receivables (584,861) (271,230) - (856,091) 68,605
Prepaid items - - - - (523,261)
Deferred outflows of resources (115,322) (53,347) (9,961) (178,630) -
Accounts payable and accrued expenses (101,251) 23,525 (84,103) (161,829) 74,881
Health claims incurred but not reported - - - - (134,785)
Net other postemployment liability 232,352 89,355 15,135 336,842 -
Net pension liability (342,762) (273,355) (60,864) (676,981) -
Deferred inflows of resources 122,839 138,395 32,820 294,054 -
Net Cash Provided by (Used in) Operating
Activities $ 2,193,110 $ 633,898 $ 27,723 $ 2,854,731 $ 894,609
Noncash capital and related financing activities:
Amortization of bond premium $ 246,043 $ 31,065 $ 9,450 $ 286,558 $ -
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-43 Annual Comprehensive Financial ReportSource page 120
TOWN OF CANTON, MASSACHUSETTS
STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
Other Private
Postemployment Purpose
Benefits Trust Fund Trust Funds
Assets
Cash and cash equivalents $ 45,512 $ 58,077
Investments:
Equity mutual funds 6,031,168 -
Bond mutual funds 2,543,568 -
Total Assets 8,620,248 58,077
Liabilities
Warrants payable - -
Total Liabilities - -
Net Position
Restricted for other postemployment benefits 8,620,248 -
Held in trust for private purposes - 58,077
Total Net Position $ 8,620,248 $ 58,077
See accompanying notes to basic financial statements.
Town of Canton, Massachusetts B-44 Annual Comprehensive Financial Report