Canton, Massachusetts · Saved source text
2012 Comprehensive Annual Financial Report (PDF)
Saved text from 121 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 41
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FISCAL YEAR ENDED JUNE 30, 2012
Private
OPEB Purpose
Trust Fund Trust Funds
ADDITIONS:
Employer contributions…………………………………… $ 100,000 $ -
Investment income………………………….……………… - 2,159
TOTAL ADDITIONS…………………………………… 100,000 2,159
DEDUCTIONS:
Educational scholarships………………………………… - 13,950
CHANGE IN NET ASSETS…………………………… 100,000 (11,791)
NET ASSETS AT BEGINNING OF YEAR………………… - 146,829
NET ASSETS AT END OF YEAR……………………………$ 100,000 $ 135,038
See notes to basic financial statements.
Town of Canton, Massachusetts 34 Comprehensive Annual Financial ReportSource page 42
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Notes to Basic Financial Statements The accompanying basic financial statements of the Town of Canton, Massachusetts (the Town) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The Governmental Accounting Standards Board (GASB) is the recognized standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies are described herein. A. Reporting Entity The Town is located in Norfolk County in southeastern Massachusetts approximately 15 miles south of Boston. The Town was incorporated in 1797 and is governed by an elected five member Board of Selectmen, an appointed Town Administrator, and the open town meeting form of government. For financial reporting purposes, the Town has included all funds, organizations, agencies, boards, commissions and institutions. The Town has also considered all potential component units for which it is financially accountable as well as other organizations for which the nature and significance of their relationship with the Town are such that exclusion would cause the basic financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the Town (the primary government) and its component units. It has been determined that the Town has no component units that require inclusion in these basic financial statements. The Town is a member of the Blue Hills Regional Technical School that provides educational services to nine area communities. This joint venture assesses each community its share of operating and debt service costs based on student population and other factors. In fiscal year 2012, Canton’s share of the operating and debt expenses was $1,337,865. There is no equity interest reported in these financial statements. Complete audited financial statements can be obtained directly from the District’s administrative office located at 800 Randolph Street, Canton, MA 02021. B. Government-Wide and Fund Financial Statements Government-Wide Financial Statements The government-wide financial statements (i.e., statement of net assets and the statement of changes in net assets) report information on all of the non-fiduciary activities of the primary government. Governmental activities, which are primarily supported by taxes and intergovernmental revenues, are reported separately from business- type activities, which are supported primarily by user fees and charges. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and displayed in a single column. Town of Canton, Massachusetts 35 Comprehensive Annual Financial Report
Source page 43
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Major Fund Criteria
Major funds must be reported if the following criteria are met:
If the total assets, liabilities, revenues, or expenditures/expenses of an individual governmental or
enterprise fund are at least 10 percent of the corresponding element (assets, liabilities, etc.) for all
funds of that category or type (total governmental or total enterprise funds), and
If the total assets, liabilities, revenues, or expenditures/expenses of the individual governmental
fund or enterprise fund are at least 5 percent of the corresponding element for all governmental
and enterprise funds combined.
Additionally, any other governmental or enterprise fund that management believes is particularly
significant to the basic financial statements may be reported as a major fund.
Fiduciary funds are reported by fund type.
C. Measurement Focus, Basis of Accounting and Financial Statement Presentation
Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are
recorded when the liabilities are incurred. Real estate and personal property taxes are recognized as revenues in
the fiscal year for which they are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
The statement of activities demonstrates the degree to which the direct expenses of a particular function or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include the following:
Charges to customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment.
Grants and contributions that are restricted to meeting the operational requirements of a particular
function or segment.
Grants and contributions that are restricted to meeting the capital requirements of a particular function or
segment.
Taxes and other items not identifiable as program revenues are reported as general revenues.
For the most part, the effect of interfund activity has been removed from the government-wide financial
statements. However, the effect of interfund services provided and used between functions is not eliminated as
the elimination of these charges would distort the direct costs and program revenues reported for the functions
affected.
Town of Canton, Massachusetts 36 Comprehensive Annual Financial ReportSource page 44
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 Fund Financial Statements Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., measurable and available). Measurable means the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt which is recognized when due, certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with current expendable available resources. The Town considers property tax revenues available if they are collected within 60 days after fiscal year-end. Investment income is susceptible to accrual. Other receipts and tax revenues become measurable and available when the cash is received and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria is met. Expenditure driven grants recognize revenue when the qualifying expenditures are incurred and all other grant requirements are met. The following major governmental funds are reported: The general fund is the primary operating fund. It is used to account for all financial resources, except those that are required to be accounted for in another fund. The nonmajor governmental funds consist of special revenue, other capital projects and permanent funds that are aggregated and presented in the nonmajor governmental funds column on the governmental funds financial statements. The following describes the general use of these fund types: The special revenue fund is used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than permanent funds or capital projects. The capital projects fund is used to account for and report financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets of the governmental funds. The permanent fund is used to account for and report financial resources that are legally restricted to the extent that only earnings, not principal, may be used for purposes that support the governmental programs. Proprietary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded when the liabilities are incurred. Town of Canton, Massachusetts 37 Comprehensive Annual Financial Report
Source page 45
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with the proprietary funds principal ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The following major proprietary funds are reported: The water enterprise fund is used to account for the water activities. The sewer enterprise fund is used to account for the sewer activities. The rink enterprise fund is used to account for the skating rink activities. Additionally, the following proprietary fund type is reported: Internal service funds are an accounting device used to accumulate and allocate costs internally among various functions. The Town uses internal service funds to account for health claims, workers’ compensation, unemployment claims and building insurance activities. Because these services primarily benefit governmental rather than business-type activities, they have been included within governmental activities in the government- wide financial statements. Fiduciary fund financial statements are reported using the flow of economic resources measurement focus and use the accrual basis of accounting. Fiduciary funds are used to account for assets held in a trustee capacity for others that cannot be used to support the governmental programs. The following fiduciary fund types are reported: The private-purpose trust fund is used to account for trust arrangements that exclusively benefit individuals, private organizations, or other governments. Some of these trusts have donor restrictions and trustee policies that do not allow the endowment portion and any unrealized appreciation to be spent. The restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings. The Town’s private- purpose trust fund is primarily comprised of educational scholarships. The other postemployment benefit trust fund (OPEB) accumulates resources to provide funding for future OPEB liabilities. The agency fund is used to account for assets held in a purely custodial capacity. Agency funds apply the accrual basis of accounting but do not have a measurement focus. The Town’s agency funds consist of off-duty work details, performance bonds, student activity accounts and fees collected on behalf of other governments. Government-Wide and Fund Financial Statements Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. Town of Canton, Massachusetts 38 Comprehensive Annual Financial Report
Source page 46
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 D. Cash and Investments Government-Wide and Fund Financial Statements Cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with an original maturity of three months or less from the date of acquisition. Investments are carried at fair value. E. Accounts Receivable Government-Wide and Fund Financial Statements The recognition of revenue related to accounts receivable reported in the government-wide financial statements and the proprietary funds and fiduciary funds financial statements are reported under the accrual basis of accounting. The recognition of revenue related to accounts receivable reported in the governmental funds financial statements are reported under the modified accrual basis of accounting. Real Estate, Personal Property Taxes, Tax Deferrals and Tax Liens Property taxes are levied and based on values assessed on January 1st of every year. Assessed values are established by the Board of Assessor’s for 100% of the estimated fair market value. Taxes are due on August 1st, November 1st, February 1st and May 1st and are subject to penalties and interest if they are not paid by the respective due date. Property taxes levied are recorded as receivables in the fiscal year of the levy. Tax liens are processed within the first quarter following the close of the fiscal year on delinquent properties and are recorded as receivables in the fiscal year they are processed. Real estate receivables are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Personal property taxes cannot be secured through the lien process. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Motor Vehicle Excise Taxes Motor vehicle excise taxes are assessed annually for each vehicle registered in the Town and are recorded as receivables in the fiscal year of the levy. The Commonwealth is responsible for reporting the number of vehicles registered and the fair values of those vehicles to the Town. The tax calculation is the fair value of the vehicle multiplied by $25 per $1,000 of value. The allowance for uncollectibles is estimated based on historical trends and specific account analysis. Town of Canton, Massachusetts 39 Comprehensive Annual Financial Report
Source page 47
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 User Fees Water and Sewer fees are billed quarterly based on individual meter readings and are subject to penalties and interest if they are not paid by the respective due date. Water and sewer liens are processed in June of every year and are included as a lien on the property owner’s tax bill in the following fiscal year. Water and sewer user fees, related liens, and an unbilled estimate are recorded as receivables in the fiscal year of the levy. Water and sewer user fees are secured via the tax lien process and are considered 100% collectible. Accordingly, an allowance for uncollectibles is not reported. Departmental and Other Departmental and other receivables consist primarily of ambulance fees. The allowance for uncollectibles for ambulance is estimated based on historical trends and specific account analysis. Intergovernmental Various federal and state grants for operating and capital purposes are applied for and received annually. For non-expenditure driven grants, revenue is recognized as soon as all eligibility requirements imposed by the provider have been met. For expenditure driven grants, revenue is recognized when the qualifying expenditures are incurred and all other grant requirements are met. These receivables are considered 100% collectible and therefore do not report an allowance for uncollectibles. F. Inventories Government-Wide and Fund Financial Statements Inventories are recorded as expenditures at the time of purchase. Such inventories are not material in total to the government-wide and fund financial statements, and therefore are not reported. G. Capital Assets Government-Wide and Proprietary Fund Financial Statements Capital assets, which include land, land improvements, buildings, building improvements, machinery and equipment, vehicles, and infrastructure (e.g., roads, water mains, sewer mains, and similar items), are reported in the applicable governmental or business-type activity column of the government-wide financial statements. Capital assets are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Donated capital assets are recorded at the estimated fair market value at the date of donation. Construction period interest is capitalized on constructed capital assets except for the capital assets of the governmental activities column in the government-wide financial statements. All purchases and construction costs in excess of $25,000 are capitalized at the date of acquisition or construction, respectively, with expected useful lives of greater than one year. Town of Canton, Massachusetts 40 Comprehensive Annual Financial Report
Source page 48
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Capital assets (excluding land and construction-in-process) are depreciated on a straight-line basis. The
estimated useful lives of capital assets being depreciated are as follows:
Estimated
Useful
Life
Capital Asset Type (in years)
Land improvements…………………………… 20-50
Buildings………………………………………… 20-50
Building improvements………………………… 20-50
Machinery and equipment……………………… 3-20
Vehicles………………………………………… 5
Infrastructure…………………………………… 40-50
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset
lives are not capitalized and are treated as expenses when incurred. Improvements are capitalized.
Governmental Fund Financial Statements
Capital asset costs are recorded as expenditures in the acquiring fund in the fiscal year of the purchase.
H. Interfund Receivables and Payables
During the course of its operations, transactions occur between and within individual funds that may result in
amounts owed between funds.
Government-Wide Financial Statements
Any residual balances outstanding between the governmental activities and business-type activities are reported
in the statement of net assets as “internal balances”.
Fund Financial Statements
Transactions of a buyer/seller nature between and within funds are not eliminated from the individual fund
statements. Receivables and payables resulting from these transactions are classified as “Due from other funds”
or “Due to other funds” on the balance sheet.
I. Interfund Transfers
During the course of its operations, resources are permanently reallocated between and within funds. These
transactions are reported as transfers in and transfers out.
Government-Wide Financial Statements
Transfers between and within governmental funds and fiduciary funds are eliminated from the governmental
activities in the statement of activities. Any residual balances outstanding between the governmental activities
and business-type activities are reported in the statement of activities as “Transfers, net”.
Town of Canton, Massachusetts 41 Comprehensive Annual Financial ReportSource page 49
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 Fund Financial Statements Transfers between and within funds are not eliminated from the individual fund statements and are reported as transfers in and transfers out. J. Deferred Revenue Deferred revenue at the governmental fund financial statement level represents billed receivables that do not meet the available criterion in accordance with the current financial resources measurement focus and the modified accrual basis of accounting. Deferred revenue is recognized as revenue in the conversion to the government-wide (full accrual) financial statements. K. Net Assets and Fund Equity Government-Wide Financial Statements (Net Assets) Net assets reported as “invested in capital assets, net of related debt” includes capital assets, net of accumulated depreciation, less the principal balance of outstanding debt used to acquire capital assets. Unspent proceeds of capital related debt are not considered to be capital assets. Outstanding debt related to future reimbursements from the state’s school building program is not considered to be capital related debt. Net assets are reported as restricted when amounts that are not available for appropriation or are legally restricted by outside parties for a specific future use. Net assets have been “restricted for” the following: “Permanent funds - expendable” represents the amount of realized and unrealized investment earnings of donor restricted trusts. The donor restrictions and trustee policies only allows the trustees to approve spending of the realized investment earnings that support governmental programs. “Permanent funds - nonexpendable” represents the endowment portion of donor restricted trusts that support governmental programs. “Grants and gifts” represents restrictions placed on assets from outside parties and consist primarily of gifts and federal and state grants. “MSBA Grant” represents a capital grant to fund debt service on the High School debt that will be amortized over 15 years starting in fiscal year 2010 in accordance with state governmental regulations. Fund Financial Statements (Fund Balances) Governmental fund balances are classified as nonspendable, restricted, committed, assigned, or unassigned based on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Town of Canton, Massachusetts 42 Comprehensive Annual Financial Report
Source page 50
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 The governmental fund balance classifications are as follows: “Nonspendable” fund balance includes amounts that cannot be spent because they are either not in spendable form or they are legally or contractually required to be maintained intact. “Restricted” fund balance includes amounts subject to constraints placed on the use of resources that is either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or that are imposed by law through constitutional provisions or enabling legislation. “Committed” fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority. Town meeting is the highest level of decision making authority for the government that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. “Assigned” fund balance includes amounts that are constrained by the Town’s intent to be used for specific purposes, but are neither restricted nor committed. The Board of Selectmen has by resolution authorized the Finance Director to assign fund balance. The Board may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. “Unassigned” fund balance includes the residual classification for the general fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the general fund. The Town’s spending policy is to spend restricted fund balance first, followed by committed, assigned and unassigned fund balance. Most governmental funds are designated for one purpose at the time of their creation. Therefore, any expenditure from the fund will be allocated to the applicable fund balance classifications in the order of the aforementioned spending policy. The general fund and certain other funds may have more than one purpose. L. Long-term debt Government-Wide and Proprietary Fund Financial Statements Long-term debt is reported as liabilities in the government-wide and proprietary fund statement of net assets. Material bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Governmental Fund Financial Statements The face amount of governmental funds long-term debt is reported as other financing sources. Bond premiums and discounts, as well as issuance costs, are recognized in the current period. Bond premiums are reported as other financing sources and bond discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual bond proceeds received, are reported as general government expenditures. Town of Canton, Massachusetts 43 Comprehensive Annual Financial Report
Source page 51
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 M. Investment Income Excluding the permanent funds, investment income derived from major and nonmajor governmental funds is legally assigned to the general fund unless otherwise directed by Massachusetts General Law (MGL). Investment income from the proprietary funds is retained in the respective funds. N. Compensated Absences Employees are granted vacation and sick leave in varying amounts based on collective bargaining agreements, state laws and executive policies. Government-Wide and Proprietary Fund Financial Statements Vested or accumulated vacation and sick leave are reported as liabilities and expensed as incurred. Governmental Fund Financial Statements Vested or accumulated vacation and sick leave, which will be liquidated with expendable available financial resources upon maturity of the liability, are reported as expenditures and fund liabilities. O. Fund Deficits Three Capital Projects Funds, classified as nonmajor governmental funds, had a combined deficit balance of $1,735,507 at June 30, 2012. This deficit will primarily be funded when $2.2 million in bond anticipation notes are converted into long-term debt. P. Use of Estimates Government-Wide and Fund Financial Statements The preparation of basic financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure for contingent assets and liabilities at the date of the basic financial statements and the reported amounts of the revenues and expenditures/expenses during the fiscal year. Actual results could vary from estimates that were used. Q. Total Column Government-Wide Financial Statements The total column presented on the government-wide financial statements represents consolidated financial information. Fund Financial Statements The total column on the fund financial statements is presented only to facilitate financial analysis. Data in this column is not the equivalent of consolidated financial information. Town of Canton, Massachusetts 44 Comprehensive Annual Financial Report
Source page 52
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
NOTE 2 – CASH AND INVESTMENTS
A cash and investment pool is maintained that is available for use by all funds. Each fund type's portion of this
pool is displayed on the balance sheet as "Cash and cash equivalents". The deposits and investments of the
trust funds are held separately from those of other funds.
Statutes authorize the investment in obligations of the U.S. Treasury, agencies, and instrumentalities, certificates
of deposit, repurchase agreements, money market accounts, bank deposits and the State Treasurer's Investment
Pool (the Pool). The Treasurer may also invest trust funds in securities, other than mortgages or collateral loans,
which are legal for the investment of funds of savings banks under the laws of the Commonwealth.
The Pool meets the criteria of an external investment pool. The Pool is administered by the Massachusetts
Municipal Depository Trust (MMDT), which was established by the Treasurer of the Commonwealth who serves
as Trustee. The fair value of the position in the Pool is the same as the value of the Pool shares.
Custodial Credit Risk – Deposits
In the case of deposits, this is the risk that in the event of a bank failure, the Town’s deposits may not be returned
to it. The Town does not have a deposit policy for custodial credit risk. At fiscal year-end, the carrying amount of
deposits totaled $27,889,498 and the bank balance totaled $29,243,278. Of the bank balance, $1,997,291 was
covered by Federal Depository Insurance, $26,042,957 was covered by the Depositors Insurance Fund, $492,114
was collateralized and $710,916 was exposed to custodial credit risk because it was uninsured and
uncollateralized.
Investments
As of June 30, 2012, the Town of Canton had the following investments:
Maturity
Fair Value Under 1 Year 1-5 Years 6-10 Years
Investment Type
Debt Securities:
Federal Home Loan Banks……………………$ 70,754 $ - $ 29,989 $ 40,765
Federal Home Loan Mortgage Corp………… 453,551 - 329,921 123,630
Federal Home Loan Mortgage Corp Gold….. 534 534 - -
Federal National Mortgage Association……… 205,756 - 205,756 -
Federal Farm Credit Bank…………. ………… 105,665 - 105,665 -
United States Treasury Notes………………… 903,165 274,578 628,587 -
Total Debt Securities.................................... 1,739,424 $ 275,112 $ 1,299,917 $ 164,395
Other Investments:
Equity Mutual Funds....................................... 81,826
Repurchase Agreement………………………… 1,520,000
MMDT…………………………………………… 4,261,901
Total Investments.........................................$ 7,603,151
The Town participates in MMDT, which maintains a cash portfolio and a short-term bond fund with combined
average maturities of approximately 3 months.
Town of Canton, Massachusetts 45 Comprehensive Annual Financial ReportSource page 53
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Custodial Credit Risk – Investments
For an investment, this is the risk that, in the event of a failure by the counterparty, the Town will not be able to
recover the value of its investments or collateral security that are in the possession of an outside party. The Town
has a custodial credit risk exposure of $1,739,424 because the related debt securities are uninsured, unregistered
and held by the counterparty. The investments in MMDT are not exposed to custodial credit risk because their
existence is not evidenced by securities that exist in physical or book entry form. The Town does not have an
investment policy related to custodial credit risk.
The Town’s $1,520,000 investment in a Repurchase Agreement (REPO) is held by a counterparty. The REPO is
not in the Town’s name; however, it is fully collateralized. The collateralization consists of Fannie Mae, Freddie
Mac, Ginnie Mae and Federal Home Loan Bank (FHLB) investments.
Interest Rate Risk
The Town does not have a formal investment policy that limits investment maturities as a means of managing its
exposure to fair value losses arising from increasing interest rates.
Credit Risk
The Town has not adopted a formal policy related to Credit Risk. Moody’s Investors Service rated all debt
securities as AAA and MMDT is unrated.
Concentration of Credit Risk
The Town places no limit on the amount the government may invest in any one issuer. The Town has 44% of
investments in US government backed securities and 56% in MMDT.
NOTE 3 – RECEIVABLES
At June 30, 2012, receivables for the individual major and nonmajor governmental funds in the aggregate,
including the applicable allowances for uncollectible accounts, are as follows:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes…………$ 690,344 $ (68,996) $ 621,348
Tax liens…………………………………………… 815,490 - 815,490
Motor vehicle and other excise taxes…………… 451,479 (344,639) 106,840
Departmental and other…………………………… 286,675 (72,196) 214,479
Intergovernmental………………………………… 4,075,181 - 4,075,181
Total…………………………………………………$ 6,319,169 $ (485,831) $ 5,833,338
Town of Canton, Massachusetts 46 Comprehensive Annual Financial ReportSource page 54
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
At June 30, 2012, receivables for the proprietary funds consist of the following:
Allowance
Gross for Net
Amount Uncollectibles Amount
Receivables:
Water fees……………………………………………$ 1,913,502 $ - $ 1,913,502
Sewer fees…………………………………………… 1,402,709 - 1,402,709
Rink fees……………………………………………… 21,458 - 21,458
Total…………………………………………………$ 3,337,669 $ - $ 3,337,669
Governmental funds report deferred revenue in connection with receivables and other assets for revenues that
are not considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year,
the various components of deferred revenue reported in the governmental funds were as follows:
Other
General Governmental
Fund Funds Total
Receivable and other asset type:
Real estate and personal property taxes…………$ 429,449 $ - $ 429,449
Tax Liens…………………………………………… 815,490 - 815,490
Motor vehicle excise taxes………………………… 106,840 - 106,840
Departmental and other…………………………… - 214,480 214,480
Intergovernmental………………..………………… 3,605,923 - 3,605,923
Tax foreclosures…………………………………… 514,555 - 514,555
Total…………………………………………………$ 5,472,257 $ 214,480 $ 5,686,737
Town of Canton, Massachusetts 47 Comprehensive Annual Financial ReportSource page 55
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
NOTE 4 – CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2012, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental Activities:
Capital assets not being depreciated:
Land…………………………………………………… $ 11,158,868 $ - $ - $ 11,158,868
Construction in progress…………………………… 1,078,468 - (1,078,468) -
Total capital assets not being depreciated…… 12,237,336 - (1,078,468) 11,158,868
Capital assets being depreciated:
Land improvements………………………………… 2,765,111 - - 2,765,111
Buildings……………………………………………… 77,453,569 101,670 - 77,555,239
Building improvements……………………………… 17,981,100 5,525,012 - 23,506,112
Machinery and equipment…………………………… 5,570,549 433,720 - 6,004,269
Vehicles……………………………………………… 4,268,990 147,669 (25,929) 4,390,730
Infrastructure………………………………………… 17,072,467 1,386,621 - 18,459,088
Total capital assets being depreciated………… 125,111,786 7,594,692 (25,929) 132,680,549
Less accumulated depreciation for:
Land improvements………………………………… (817,075) (168,647) - (985,722)
Buildings.……………………………………………… (17,742,146) (1,758,567) - (19,500,713)
Building improvements……………………………… (8,243,507) (756,006) - (8,999,513)
Machinery and equipment…………………………… (2,297,345) (544,200) - (2,841,545)
Vehicles……………………………………………… (3,749,744) (216,326) 25,929 (3,940,141)
Infrastructure………………………………………… (3,329,318) (444,144) - (3,773,462)
Total accumulated depreciation………………… (36,179,135) (3,887,890) 25,929 (40,041,096)
Total capital assets being depreciated, net…………… 88,932,651 3,706,802 - 92,639,453
Total governmental activities capital assets, net………$ 101,169,987 $ 3,706,802 $ (1,078,468) $ 103,798,321
Town of Canton, Massachusetts 48 Comprehensive Annual Financial ReportSource page 56
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Beginning Ending
Balance Increases Decreases Balance
Water Activities:
Capital assets not being depreciated:
Land…………………………………………………… $ 624,852 $ - $ - $ 624,852
Construction in progress…………………………… 6,140,727 - (6,140,727) -
Total capital assets not being depreciated…… 6,765,579 - (6,140,727) 624,852
Capital assets being depreciated:
Buildings.……………………………………………… 9,223,302 8,271,837 - 17,495,139
Building Improvements……………………………… - 27,465 - 27,465
Machinery and equipment…………………………… 924,732 - - 924,732
Vehicles……………………………………………… 420,336 52,260 - 472,596
Infrastructure………………………………………… 18,918,381 3,292,386 - 22,210,767
Total capital assets being depreciated………… 29,486,751 11,643,948 - 41,130,699
Less accumulated depreciation for:
Buildings.……………………………………………… (1,995,764) (305,132) - (2,300,896)
Building Improvements……………………………… - (687) - (687)
Machinery and equipment…………………………… (263,844) (92,473) - (356,317)
Vehicles……………………………………………… (362,423) (26,670) - (389,093)
Infrastructure………………………………………… (8,521,980) (391,419) - (8,913,399)
Total accumulated depreciation………………… (11,144,011) (816,381) - (11,960,392)
Total capital assets being depreciated, net…………… 18,342,740 10,827,567 - 29,170,307
Total business-type activities capital assets, net………$ 25,108,319 $ 10,827,567 $ (6,140,727) $ 29,795,159
Beginning Ending
Balance Increases Decreases Balance
Sewer Activities:
Capital assets not being depreciated:
Construction in progress…………………………… $ 5,196,285 $ - $ (5,196,285) $ -
Total capital assets not being depreciated…… 5,196,285 - (5,196,285) -
Capital assets being depreciated:
Buildings.……………………………………………… 1,263,604 - - 1,263,604
Machinery and equipment…………………………… 264,697 - - 264,697
Vehicles……………………………………………… 310,716 - - 310,716
Infrastructure………………………………………… 22,900,708 5,748,620 - 28,649,328
Total capital assets being depreciated………… 24,739,725 5,748,620 - 30,488,345
Less accumulated depreciation for:
Buildings.……………………………………………… (255,740) (30,122) - (285,862)
Machinery and equipment…………………………… (66,175) (26,470) - (92,645)
Vehicles……………………………………………… (240,130) (20,994) - (261,124)
Infrastructure………………………………………… (13,970,378) (489,129) - (14,459,507)
Total accumulated depreciation………………… (14,532,423) (566,715) - (15,099,138)
Total capital assets being depreciated, net…………… 10,207,302 5,181,905 - 15,389,207
Total business-type activities capital assets, net………$ 15,403,587 $ 5,181,905 $ (5,196,285) $ 15,389,207
Town of Canton, Massachusetts 49 Comprehensive Annual Financial ReportSource page 57
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Beginning Ending
Balance Increases Decreases Balance
Rink Activities:
Capital assets being depreciated:
Building improvements……………………………… $ 139,960 $ - $ - $ 139,960
Machinery and equipment…………………………… 257,797 - - 257,797
Vehicles……………………………………………… 29,160 - - 29,160
Total capital assets being depreciated………… 426,917 - - 426,917
Less accumulated depreciation for:
Building improvements……………………………… (45,737) (7,248) - (52,985)
Machinery and equipment…………………………… (125,109) (18,164) - (143,273)
Vehicles……………………………………………… (29,160) - - (29,160)
Total accumulated depreciation………………… (200,006) (25,412) - (225,418)
Total business-type activities capital assets, net………$ 226,911 $ (25,412) $ - $ 201,499
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government…………………………………………………… $ 141,753
Public safety…………………………………………………………… 551,759
Education………………………………………………………………… 2,213,929
Public works…………………………………………………………… 608,696
Human services………………………………………………………… 20,363
Culture and recreation………………………………………………… 351,390
Total depreciation expense - governmental activities…………………… $ 3,887,890
Business-Type Activities:
Water…………………………………………………………………… $ 816,381
Sewer…………………………………………………………………… 566,715
Rink……………………………………………………………………… 25,412
Total depreciation expense - business-type activities…………………… $ 1,408,508
Town of Canton, Massachusetts 50 Comprehensive Annual Financial ReportSource page 58
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
NOTE 5 – INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivables and payables for the fiscal year ended June 30, 2012, are summarized as follows:
Receivable Fund Payable Fund Amount
Stoughton Mitigation Fund…… Water Fund………………$ 36,200 (1)
General Fund…………………… Rink Fund……………… 11,956 (2)
Total…………………………………………………………… $ 48,156
(1) Represents a 10 year non-interest bearing loan between the Stoughton Mitigation Fund and the Water
Fund with annual payments of $36,200 through FY2013.
(2) Represents an advance to the Rink Enterprise fund to meet temporary cash flow needs.
Interfund transfers for the fiscal year ended June 30, 2012, are summarized as follows:
Transfers In:
Nonmajor
General Governmental
Transfers Out: Fund Funds Total
General Fund……………………… $ - $ 348,800 $ 348,800 (1)
Nonmajor Governmental Funds… 1,213,456 125,301 1,338,757 (2)
Water Enterprise Fund…………… 716,685 - 716,685 (3)
Sewer Enterprise Fund…………… 373,811 - 373,811 (3)
Rink Enterprise Fund……………… 76,472 - 76,472 (3)
Total…………………………………$ 2,380,424 $ 474,101 $ 2,854,525
(1) Represents budgeted transfers of $80,000 for retirement buyback reserves, $200,000 to fund the new
senior center, and $68,800 to fund other capital project funds.
(2) Represents transfers from various nonmajor governmental funds to fund general fund budgeted
expenditures, as well as various transfers to and from nonmajor governmental funds.
(3) Represents budgeted transfers from the Water, Sewer, and Rink Enterprise funds for their share of
indirect charges.
Town of Canton, Massachusetts 51 Comprehensive Annual Financial ReportSource page 59
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
NOTE 6 – SHORT-TERM FINANCING
Short-term debt may be authorized and issued to fund the following:
Current operating costs prior to the collection of revenues through issuance of revenue or tax anticipation
notes (RANS or TANS).
Capital project costs and other approved expenditures incurred prior to obtaining permanent financing through
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS).
Short-term loans are general obligations and carry maturity dates that are limited by statute. Interest
expenditures and expenses for short-term borrowings are accounted for in the General Fund and Enterprise
Funds, respectively.
Details related to the short-term debt activity for the fiscal year ended June 30, 2012, is as follows:
Balance at Balance at
Rate June 30, Renewed/ Retired/ June 30,
Type Purpose (%) Due Date 2011 Issued Redeemed 2012
BAN Capital improvements………………… 1.50% 05/25/12 $ 1,225,308 $ - $ 1,225,308 $ -
BAN Capital improvements………………… 1.75% 03/27/13 - 2,243,331 - 2,243,331
Sub-total governmental notes……… 1,225,308 2,243,331 1,225,308 2,243,331
BAN Sewer System Improvements……… 1.50% 05/25/12 100,000 - 100,000 -
BAN Water System Improvements……… 1.50% 05/25/12 500,000 - 500,000 -
BAN Sewer System Improvements……… 1.75% 03/27/13 - 200,000 - 200,000
BAN Water System Improvements……… 1.75% 03/27/13 - 2,837,000 - 2,837,000
Sub-total business-type notes……… 600,000 3,037,000 600,000 3,037,000
Total notes payable…………………… $ 1,825,308 $ 5,280,331 $ 1,825,308 $ 5,280,331
NOTE 7 – CAPITAL LEASE OBLIGATIONS
In a prior fiscal year the Town entered into a non-cancelable long-term lease for the purchase of three vehicles
utilized by the Town. In fiscal year 2012 the Town entered into a similar lease agreement for the purchase of a
school bus. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been
recorded at the present value of its future minimum lease payments as of the inception date. Assets acquired
through capital leases are as follows:
Governmental
Activities
Asset:
Vehicles………………………………………………………$ 208,106
Less: accumulated depreciation…………………………… (88,346)
Total………………………………………………………$ 119,760
Town of Canton, Massachusetts 52 Comprehensive Annual Financial ReportSource page 60
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
The following is a schedule of the future minimum lease payments under these capital leases, together with the
present value of the net minimum lease payments, as of June 30, 2012:
Fiscal Years Governmental
Ending June 30 Activities
2013………………………………………………………$ 35,611
2014……………………………………………………… 13,445
2015……………………………………………………… 13,445
Total minimum lease payments……………………… 62,501
Less: amounts representing interest………………… (3,954)
Present value of minimum lease payments………… $ 58,547
NOTE 8 – LONG-TERM DEBT
Under the provisions of Chapter 44, Section 10, Municipal Law authorizes indebtedness up to a limit of 5% of the
equalized valuation. Debt issued in accordance with this section of the law is designated as being "inside the
debt limit". In addition, however, debt may be authorized in excess of that limit for specific purposes. Such debt,
when issued, is designated as being "outside the debt limit".
In March 2012, the Town also issued $8.7 million of new general obligation bonds. The proceeds of these bonds
were used to retire $1.1 million of maturing bond anticipation notes and to provide permanent financing for several
capital projects including $3.8 million towards the water treatment facility, $2.0 million towards sewer
improvements, as well as $1.8 million for other governmental projects.
In prior fiscal years, certain general obligation bonds were defeased by placing the proceeds of bonds in an
irrevocable trust to provide for all future debt service payments on the refunded bonds. Accordingly, neither the
assets in escrow nor the liability for the defeased bonds are included in the Town’s financial statements. At June
30, 2012, $4,063,000 of bonds outstanding is considered defeased.
Town of Canton, Massachusetts 53 Comprehensive Annual Financial ReportSource page 61
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Details related to the outstanding indebtedness at June 30, 2012, and the debt service requirements are as
follows:
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Project Through Amount (%) 2011 Issued Redeemed 2012
General Obligation Bonds of 2004………………… 2024 $ 35,653,965 1.36-3.97% $ 22,464,865 $ - $ 1,939,155 $ 20,525,710
Refunding Bonds 2004…………………………… 2020 2,266,005 3.52-3.58% 1,837,550 - 264,065 1,573,485
General Obligation Bonds of 2006………………… 2025 8,001,000 3.94-4.09% 5,319,000 - 528,000 4,791,000
General Obligation Bonds of 2008………………… 2026 2,991,000 3.50-4.00% 1,965,000 - 332,000 1,633,000
General Obligation Bonds of 2009………………… 2029 3,541,000 2.00-4.25% 3,008,000 - 255,000 2,753,000
General Obligation Bonds of 2010………………… 2030 1,087,261 2.00-4.00% 982,000 - 102,000 880,000
General Obligation Bonds of 2011………………… 2031 1,964,388 2.00-4.25% 1,964,388 - 269,388 1,695,000
Refunding Bonds of 2011………………………… 2021 5,398,612 2.00-4.25% 5,398,612 - 616,612 4,782,000
General Obligation Bonds of 2012………………… 2032 2,932,908 2.50-2.88% - 2,932,908 - 2,932,908
Total governmental bonds payable……………… 42,939,415 2,932,908 4,306,220 41,566,103
Add unamortized premium………………………… 313,763 - 44,855 268,908
Less unamortized loss on bond refunding, net… (131,195) - (35,001) (96,194)
Total governmental bonds payable, net………… $ 43,121,983 $ 2,932,908 $ 4,316,074 $ 41,738,817
Debt service requirements for principal and interest for Governmental bonds payable in future fiscal years are as
follows:
Fiscal Year Principal Interest Total
2013…………… $ 4,385,178 $ 1,643,249 $ 6,028,427
2014…………… 4,294,245 1,502,508 5,796,753
2015…………… 4,121,190 1,356,618 5,477,808
2016…………… 3,987,140 1,174,875 5,162,015
2017…………… 3,723,100 1,008,712 4,731,812
2018…………… 3,396,475 859,048 4,255,523
2019…………… 3,180,000 715,611 3,895,611
2020…………… 2,998,775 588,887 3,587,662
2021…………… 2,958,000 475,186 3,433,186
2022…………… 2,448,000 360,533 2,808,533
2023…………… 2,208,000 252,318 2,460,318
2024…………… 1,744,000 154,362 1,898,362
2025…………… 584,000 80,694 664,694
2026…………… 406,000 55,804 461,804
2027…………… 370,000 41,052 411,052
2028…………… 271,000 27,584 298,584
2029…………… 201,000 17,342 218,342
2030…………… 120,000 9,904 129,904
2031…………… 95,000 5,717 100,717
2032…………… 75,000 2,530 77,530
Totals……………$ 41,566,103 $ 10,332,534 $ 51,898,637
Town of Canton, Massachusetts 54 Comprehensive Annual Financial ReportSource page 62
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Bonds and Notes Payable Schedule – Water Enterprise Fund
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Project Through Amount (%) 2011 Issued Redeemed 2012
Water Bonds of 2004……………………………… 2024 $ 1,392,000 4.10% $ 900,000 $ - $ 70,000 $ 830,000
Water Refunding Bonds of 2004………………… 2020 340,155 4.10% 282,115 - 33,135 248,980
Water Bonds of 2006……………………………… 2025 1,012,000 4.09% 740,000 - 53,000 687,000
Water Bonds of 2008……………………………… 2026 2,051,000 3.75% 1,510,000 - 178,000 1,332,000
Water Bonds of 2009……………………………… 2029 2,508,333 3.12% 1,908,000 - 228,000 1,680,000
Water Bonds of 2010……………………………… 2030 4,676,568 3.00% 4,428,000 - 248,000 4,180,000
Water Bonds of 2011……………………………… 2031 722,000 3.12% 5,170,000 - 270,000 4,900,000
Water Bonds of 2012……………………………… 2032 3,800,000 2.80% - 3,800,000 - 3,800,000
MWRA……………………………………………… 2022 910,000 0% 410,000 500,000 41,000 869,000
Total water bonds payable………………………… 15,348,115 4,300,000 1,121,135 18,526,980
Less unamortized loss on bond refunding, net… (14,641) - (3,046) (11,595)
Total water bonds payable, net……….…………… $ 15,333,474 $ 4,300,000 $ 1,118,089 $ 18,515,385
Debt service requirements for principal and interest for the water enterprise fund bonds payable in future fiscal
years are as follows:
Fiscal Year Principal Interest Total
2013…………… $ 1,291,675 $ 602,017 $ 1,893,692
2014…………… 1,224,440 573,875 1,798,315
2015…………… 1,221,960 542,384 1,764,344
2016…………… 1,220,465 515,215 1,735,680
2017…………… 1,175,735 460,726 1,636,461
2018…………… 1,087,315 424,424 1,511,739
2019…………… 1,085,000 389,662 1,474,662
2020…………… 1,084,390 354,114 1,438,504
2021…………… 1,028,000 324,584 1,352,584
2022…………… 987,000 293,937 1,280,937
2023…………… 932,000 262,203 1,194,203
2024…………… 931,000 229,446 1,160,446
2025…………… 866,000 196,115 1,062,115
2026…………… 814,000 164,954 978,954
2027…………… 760,000 135,166 895,166
2028…………… 759,000 106,546 865,546
2029…………… 759,000 77,852 836,852
2030…………… 665,000 48,918 713,918
2031…………… 445,000 23,426 468,426
2032…………… 190,000 6,412 196,412
Totals……………$ 18,526,980 $ 5,731,972 $ 24,258,952
Town of Canton, Massachusetts 55 Comprehensive Annual Financial ReportSource page 63
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Bonds and Notes Payable Schedule – Sewer Enterprise Fund
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Project Through Amount (%) 2011 Issued Redeemed 2012
Sewer Refunding of 2004………………………… 2020 $ 2,780,675 4.10% $ 2,220,470 $ - $ 258,645 $ 1,961,825
Sewer Bonds of 2006……………………………… 2025 998,000 4.10% 721,000 - 54,000 667,000
Sewer Bonds of 2008……………………………… 2026 200,200 3.70% 75,000 - 5,000 70,000
Sewer Bonds of 2009……………………………… 2019 265,000 2.50% 209,000 - 27,000 182,000
MWPAT……………………………………………… 2031 3,745,695 2.00% 3,745,695 - 153,851 3,591,844
Refunding Bonds of 2011………………………… 2031 722,000 3.10% 722,000 - 79,000 643,000
Sewer Bonds of 2012……………………………… 2032 2,000,000 2.88% - 2,000,000 - 2,000,000
Total sewer bonds payable………………………. 7,693,165 2,000,000 577,496 9,115,669
Less unamortized loss on bond refunding, net… (105,991) - (21,750) (84,241)
Total sewer bonds payable, net……….………… $ 7,587,174 $ 2,000,000 $ 555,746 $ 9,031,428
Debt service requirements for principal and interest for the sewer enterprise fund bonds payable in future fiscal
years are as follows:
Fiscal Year Principal Interest Total
2013…………… $ 671,014 $ 251,046 $ 922,060
2014…………… 669,445 234,777 904,222
2015…………… 668,215 215,930 884,145
2016…………… 667,060 194,732 861,792
2017…………… 661,197 174,240 835,437
2018…………… 659,677 154,752 814,429
2019…………… 656,971 133,301 790,272
2020…………… 618,381 110,890 729,271
2021…………… 414,194 96,356 510,550
2022…………… 357,915 84,964 442,879
2023…………… 361,711 75,164 436,875
2024…………… 365,584 65,254 430,838
2025…………… 354,535 55,241 409,776
2026…………… 308,566 45,860 354,426
2027…………… 307,679 38,547 346,226
2028…………… 311,874 31,352 343,226
2029…………… 316,154 24,072 340,226
2030…………… 320,521 16,581 337,102
2031…………… 324,976 8,876 333,852
2032…………… 100,000 3,376 103,376
Totals……………$ 9,115,669 $ 2,015,307 $ 11,130,976
Town of Canton, Massachusetts 56 Comprehensive Annual Financial ReportSource page 64
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Bonds and Notes Payable Schedule – Ice Rink Enterprise Fund
Original Interest Outstanding Outstanding
Maturities Loan Rate at June 30, at June 30,
Project Through Amount (%) 2011 Issued Redeemed 2012
Ice Rink Bonds of 2009…………………………… 2019 $ 85,000 2.50% $ 60,000 $ - $ 10,000 $ 50,000
Debt service requirements for principal and interest for the ice rink enterprise fund bonds payable in future fiscal
years are as follows:
Fiscal Year Principal Interest Total
2013…………… $ 8,000 $ 1,320 $ 9,320
2014…………… 8,000 1,160 9,160
2015…………… 8,000 980 8,980
2016…………… 8,000 780 8,780
2017…………… 6,000 540 6,540
2018…………… 6,000 360 6,360
2019…………… 6,000 180 6,180
Totals……………$ 50,000 $ 5,320 $ 55,320
In a prior fiscal period Town borrowed $3,745,695 from the MWPAT for the water infrastructure projects under a
program where there is no principal subsidy and the interest rate is set at a below market rate. Management has
estimated that the value of the imputed future interest subsidy to be minimal and therefore no adjustment has
been made to recognize the imputed interest.
The Commonwealth has approved school construction assistance to the Town. The assistance program, which is
administered by the Massachusetts School Building Authority (MSBA), provides resources for future debt service
of general obligation school bonds outstanding. During fiscal year 2012, $492,618 of such assistance was
received. The Town will receive $4,175,290 in future fiscal years. Of this amount, $569,367 represents
reimbursement of long-term interest costs, and $3,605,923 represents reimbursement of approved construction
costs. Accordingly, a $3,605,923 intergovernmental receivable and corresponding deferred revenue have been
reported in the general fund. The net change in deferred revenue has been recognized as revenue in the
conversion to the government-wide financial statements.
Town of Canton, Massachusetts 57 Comprehensive Annual Financial ReportSource page 65
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
The Town is subject to various debt limits by statute and may issue additional general obligation debt under the
normal debt limit. At June 30, 2012, the Town had the following authorized and unissued debt:
Purpose Amount
ADA Renovations……………………………………………… $ 50,000
Bolivar & Pine Street Culverts………………………………… 81,000
Capital Improvement Plan Engineering……………………… 30,000
Dedham Street Drainage……………………………………… 50,000
DPW Dump Truck……………………………………………… 175,000
DPW Pick-up Truck……………………………………………… 68,000
Elm Street Water Improvements……………………………… 500,000
Fiber Cable Network…………………………………………… 25,000
Gavin Middle School Windows………………………………… 411,950
Greenlodge Street Interceptor………………………………… 1,254,305
Hansen School Windows……………………………………… 342,000
High School Roof Repair……………………………………… 82,377
Ponkapoag Fire Station Roof Repairs………………………… 7,786
Rehab Tolman Tank…………………………………………… 1,090,000
Rodman Building Heating System…………………………… 280,000
Rodman Building Roof Repair………………………………… 212,106
Scada Upgrade & Trucks……………………………………… 145,000
School HVAC Replacements…………………………………… 134,000
Senior Center…………………………………………………… 450,000
Septic Title V…………………………………………………… 200,000
Sewer I & I / Pumping Station………………………………… 1,586,290
Valve & Hydrant Replacement………………………………… 290,000
Water System Improvements………………………………… 1,840,000
Total………………………………………………………………$ 9,304,814
Town of Canton, Massachusetts 58 Comprehensive Annual Financial ReportSource page 66
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Changes in long-term liabilities
During the fiscal year ended June 30, 2012, the following changes occurred in long-term liabilities:
Beginning Ending Current
Balance Additions Reductions Balance Portion
Governmental Activities:
Long-term bonds and notes……………………$ 42,939,415 $ 2,932,908 $ (4,306,220) $ 41,566,103 $ 4,385,178
Unamortized premium on bonds payable…… 313,763 - (44,855) 268,908 42,140
Unamortized deferred loss on refunding…… (131,195) - 35,001 (96,194) (29,551)
Other postemployment benefits……………… 19,437,000 12,331,000 (4,446,000) 27,322,000 -
Landfill closure………………………………… 184,000 - (26,000) 158,000 27,000
Capital lease obligations……………………… 61,227 51,211 (53,891) 58,547 32,913
Compensated absences……………………… 1,201,000 949,000 (808,000) 1,342,000 923,000
Total governmental activities………………… $ 64,005,210 $ 16,264,119 $ (9,649,965) $ 70,619,364 $ 5,380,680
Business-Type Activities:
Long-term bonds and notes……………………$ 23,101,280 $ 6,300,000 $ (1,708,631) $ 27,692,649 $ 1,970,689
Unamortized deferred loss on refunding…… (120,632) - 24,796 (95,836) (21,978)
Other postemployment benefits……………… 804,000 308,000 (11,000) 1,101,000 -
Compensated absences……………………… 163,000 91,000 (94,000) 160,000 100,000
Total business-type activities………………… $ 23,947,648 $ 6,699,000 $ (1,788,835) $ 28,857,813 $ 2,048,711
The governmental activities liabilities will be liquidated by the general fund. The business-type liabilities will be
liquidated by the enterprise fund reporting the liability.
NOTE 9 – GOVERNMENTAL FUND BALANCE CLASSIFICATIONS
The Town has implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions. The intention of the GASB is to provide a more structured classification of fund balance and to
improve the usefulness of fund balance reporting to the users of the Town’s financial statements. The reporting
standard establishes a hierarchy for fund balance classifications and the constraints imposed on the uses of those
resources.
At June 30, 2012, $4,129,686 has been set aside in a General Stabilization fund, and $81,146 in a Special
Education Stabilization fund; both are classified as part of the general fund unassigned fund balance in the
governmental funds financial statements. Massachusetts General Law Ch.40 §5B allows for the establishment of
Stabilization funds for one or more different purposes on an as needed basis. The creation of a fund requires a
two-thirds vote of the legislative body and must clearly define the purpose of the fund. Any change to the purpose
of the fund along with any additions to or appropriations from the fund requires a two-thirds vote of the legislative
body. The stabilization fund balance can be used for general and/or capital purposes upon approval of Town
Meeting. Additions to and withdrawals from the funds can only be made upon Town Meeting approval.
At June 30, 2012, $5.5 million is reported as restricted for MSBA Grant. This balance represents a capital grant
to fund debt service on the High School debt that will be amortized over 15 years starting in fiscal year 2010 in
accordance with state governmental regulations.
GASB 54 provides for two major types of fund balances, which are nonspendable and spendable. Nonspendable
fund balances are balances that cannot be spent because they are not expected to be converted
Town of Canton, Massachusetts 59 Comprehensive Annual Financial ReportSource page 67
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
to cash or they are legally or contractually required to remain intact. Examples of this classification are prepaid
items, inventories and principal (corpus) of an endowment fund. The Town has reported principal portions of
endowment funds as nonspendable.
In addition to the nonspendable fund balance, GASB 54 has provided a hierarchy of spendable fund balances,
based on a hierarchy of spending constraints.
Restricted: fund balances that are constrained by external parties, constitutional provisions, or enabling
legislation.
Committed: fund balances that contain self-imposed constraints of the government from its highest level
of decision making authority.
Assigned: fund balances that contain self-imposed constraints of the government to be used for a
particular purpose.
Unassigned: fund balance of the general fund that is not constrained for any particular purpose.
The Town has classified its fund balances with the following hierarchy:
GOVERNMENTAL FUNDS
Nonmajor Total
Governmental Governmental
General Funds Funds
FUND BALANCES
Nonspendable:
Cemetery trust funds……………………………$ - $ 370,997 $ 370,997
Library trust funds……………………………… - 21,553 21,553
Other municipal trust funds…………………… - 12,235 12,235
Restricted for:
MSBA grant……………………………………… 5,483,092 - 5,483,092
School lunch…………………………………… - 306,146 306,146
Private grants…………………………………… - 755,359 755,359
Town revolving………………………………… - 285,931 285,931
School revolving………………………………… - 897,330 897,330
Recreation……………………………………… - 50,799 50,799
Ambulance……………………………………… - 1,127,508 1,127,508
Town grants…………………………………… - 1,043,653 1,043,653
School grants…………………………………… - 431,027 431,027
Roadway improvements……………………… - 2,120 2,120
Other departmental…………………………… - 1,689,035 1,689,035
High school construction……………………… - 90,953 90,953
Cemetery trust funds…………………………… - 18,741 18,741
Library trust funds……………………………… - 156,087 156,087
Other municipal trust funds…………………… - 145,844 145,844
Assigned to:
General government…………………………… 180,990 - 180,990
Public safety…………………………………… 337,090 - 337,090
Education………………………………………… 169,956 - 169,956
Public works…………………………………… 67,036 - 67,036
Culture and recreation………………………… 29,819 - 29,819
Unassigned……………………………………….. 7,118,096 (1,735,507) 5,382,589
TOTAL FUND BALANCES (DEFICIT)………………$ 13,386,079 $ 5,669,811 $ 19,055,890
Town of Canton, Massachusetts 60 Comprehensive Annual Financial ReportSource page 68
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
NOTE 10 – RISK FINANCING
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors
and omissions; and natural disasters for which the Town carries commercial insurance. The amount of claim
settlements has not exceeded insurance coverage in any of the previous three years.
The Town is self-insured for its health insurance and workers’ compensation activities. These activities are
accounted for in the Town’s internal service funds where revenues are recorded when earned and expenses are
recorded when the liability is incurred.
(a) Health Insurance
The estimate of Incurred But Not Reported (IBNR) claims based on historical claims paid averages for
twelve months prior to fiscal year-end. The Town purchases individual stop loss insurance for claims in
excess of the coverage provided by the Town in the amount of $100,000. At June 30, 2012, the amount
of the liability for health insurance claims totaled $684,000. This liability is the best estimate based on
available information. Changes in the reported liability since July 1, 2010, are as follows:
Current Year
Balance at Claims and Balance at
Beginning of Changes in Claims Fiscal Current
Fiscal Year Estimate Payments Year-End Portion
Fiscal Year 2011…………$ 1,336,000 $ 11,021,686 $ 11,537,686 $ 820,000 $ 820,000
Fiscal Year 2012………… 820,000 (12,865,480) 12,729,480 684,000 684,000
(b) Workers’ Compensation
Workers’ compensation claims submitted prior to July 1, 2008 are administered by a third party
administrator and are funded on a pay-as-you-go basis from annual appropriations. The Town is
premium based for all claims after July 1, 2008. The Town purchases individual stop loss insurance in
excess of the coverage provided in the amount of $300,000. The estimated future workers’
compensation liability is not material at June 30, 2012, and is therefore not reported.
NOTE 11 – PENSION PLAN
Plan Description - The Town contributes to the System, a cost-sharing multiple-employer defined benefit
pension plan administered by the Norfolk County Retirement Board (Board). Substantially all employees are
members of the System, except for public school teachers and certain administrators who are members of the
Massachusetts Teachers Retirement System, to which the Town does not contribute. Pension benefits and
administrative expenses paid by the Teachers Retirement Board are the legal responsibility of the
Commonwealth. The amount of these on-behalf payments totaled approximately $8,383,000 for the fiscal year
ended June 30, 2012, and, accordingly, are reported in the general fund as intergovernmental revenues and
pension expenditures.
The System provides retirement, disability and death benefits to plan members and beneficiaries. Chapter 32 of
the MGL assigns authority to establish and amend benefit provisions of the plan. Cost-of-living adjustments
granted between 1981 and 1997 and any increase in other benefits imposed by the Commonwealth’s state law
Town of Canton, Massachusetts 61 Comprehensive Annual Financial ReportSource page 69
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 during those years are borne by the Commonwealth and are deposited into the pension fund. Cost-of-living adjustments granted after 1997 must be approved by the Norfolk County Retirement Board and are borne by the System. The System issues a publicly available unaudited financial report in accordance with guidelines established by the Commonwealth’s PERAC. That report may be obtained by contacting the System located at 480 Neponset Street, Building #15, P.O. Box 188, Canton, Massachusetts 02021-0188. Funding Policy - Plan members are required to contribute to the System at rates ranging from 5% to 11% of annual covered compensation. The Town is required to pay into the System its share of the system-wide actuarial determined contribution that is apportioned among the employers based on active current payroll. Administrative expenses are funded through investment earnings. Chapter 32 of the MGL governs the contributions of plan members and the Town. Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. These actuarially determined amounts are subject to continual revisions as actual results are compared to past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing relative to the actuarial accrued liability for benefits. Annual Pension Cost - The Town’s contributions to the System for the fiscal years ended June 30, 2012, 2011, and 2010, were $2,957,615, $2,992,977 and $2,826,638, respectively, which equaled its required contribution for each fiscal year. NOTE 12 – POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS Plan Description – The Town of Canton administers a single-employer defined benefit healthcare plan (“the Retiree Health Plan”). The plan provides lifetime healthcare insurance for eligible retirees and their spouses through the Town’s group health insurance plan, which covers both active and retired members. Chapter 32B of the MGL assigns authority to establish and amend benefit provisions of the plan. Benefit provisions are negotiated between the Town and the unions representing Town employees and are renegotiated each bargaining period. The Retiree Health Plan does not issue a publicly available financial report. Funding Policy – Contribution requirements are also negotiated between the Town and union representatives. The required contribution is based on a pay-as-you-go financing requirement. The Town contributes 75 percent of the cost of current-year premiums for eligible retired plan members and their spouses. Plan members receiving benefits contribute the remaining 25 percent of their premium costs. For fiscal year 2012, the Town contributed $4.5 million to the plan. Annual OPEB Cost and Net OPEB Obligation – The Town’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The components of the Town’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Town’s net OPEB obligation are summarized in the following table: Town of Canton, Massachusetts 62 Comprehensive Annual Financial Report
Source page 70
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
Annual required contribution……………………………………$ 12,626,000
Interest on net OPEB obligation……………………………… 860,000
Adjustments to annual required contribution………………… (847,000)
Annual OPEB cost (expense)……………………………… 12,639,000
Contributions made……………………………………………… (4,457,000)
Increase in net OPEB obligation……………………………… 8,182,000
Net OPEB obligation - beginning of year……………………… 20,241,000
Net OPEB obligation - end of year…………………………… $ 28,423,000
The Town’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for fiscal year 2012 and the preceding year is as follows:
Percentage of
Fiscal Year Annual Annual OPEB Net OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/2012 $ 12,639,000 35% $ 28,423,000
6/30/2011 11,610,000 37% 20,241,000
6/30/2010 11,431,000 42% 12,893,000
Funded Status and Funding Progress – As of January 1, 2011, the most recent actuarial valuation date, the
actuarial accrued liability for benefits was $130.9 million, all of which was unfunded. The covered payroll (annual
payroll of active employees covered by the plan) was $34.4 million, and the ratio of the UAAL to the covered
payroll was 380.3 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions
about the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the
plan and the annual required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future. The schedule of funding
progress, presented as required supplementary information following the notes to the financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions – Projections of benefits for financial reporting purposes are based on the
substantive plan (the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the
employer and plan members to that point. The actuarial methods and assumptions used include techniques that
are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long-term perspective of the calculations.
In the January 1, 2011 actuarial valuation, actuarial liabilities were determined using the projected unit credit cost
method. The actuarial assumptions included a 4.25% investment return assumption, which is based on the
expected yield on the assets of the Town, calculated based on the funded level of the plan at the valuation date,
and an annual medical/drug cost trend rate of 10% initially, graded to 5% over ten years and included a 3.5%
inflation assumption. The UAAL is being amortized over a 28 year period, with amortization payments increasing
Town of Canton, Massachusetts 63 Comprehensive Annual Financial ReportSource page 71
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
at 3.25% per year on a closed basis. The amortization method utilizes a level dollar amount. The remaining
amortization period at June 30, 2012 is 26 years.
NOTE 13 – LANDFILL POSTCLOSURE CARE COSTS
State and Federal laws and regulations require the Town to perform certain maintenance and monitoring
functions at the site after closure. The Town has closed the landfill and has recorded its estimated postclosure
care costs to be $158,000 which has been recorded as a governmental activity liability at June 30, 2012. Actual
costs may be higher due to inflation, changes in technology or changes in regulations.
NOTE 14 – COMMITMENTS
The Town has authorized over $9.3 million in debt to fund projects that are in various stages of completion or will
be started in the future. The Town’s Capital Planning Committee recommended capital spending plan for the five
year period from fiscal year 2013 through fiscal year 2017 has an estimated cost of $23.5 million of which $5.2
million will be funded from estimated revenues and the remainder funded with long-term debt.
NOTE 15 – CONTINGENCIES
The Town participates in a number of federal award programs. Although the grant programs have been audited
in accordance with the provisions of the Single Audit Act Amendments of 1996 through June 30, 2012, these
programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be
disallowed by the granting agencies cannot be determined at this time, although it is expected such amounts, if
any, to be immaterial.
Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome of
individual litigated matters is not always predictable. Although the amount of liability, if any, at June 30, 2012,
cannot be ascertained, management believes any resulting liability should not materially affect the financial
position at June 30, 2012.
NOTE 16 – IMPLEMENTATION OF NEW GASB PRONOUNCEMENTS
During fiscal year 2012, the following GASB pronouncements were implemented:
The GASB issued Statement #62, Codification of Accounting and Financial Reporting Guidance
Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The implementation of this
pronouncement did not impact the basic financial statements.
GASB Statement #64, Derivative Instruments: Application of Hedge Accounting Termination Provisions,
an amendment of GASB Statement No. 53. The implementation of this pronouncement did not impact the
basic financial statements.
Town of Canton, Massachusetts 64 Comprehensive Annual Financial ReportSource page 72
Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012
The following GASB pronouncements will be implemented in future fiscal years. Management is currently
assessing the impact the implementation of these pronouncements will have on the basic financial statements:
The GASB issued Statement #60, Accounting and Financial Reporting for Service Concession
Arrangements, which is required to be implemented in fiscal year 2013.
The GASB issued Statement #61, The Financial Reporting Entity: Omnibus, which is required to be
implemented in fiscal year 2013.
The GASB issued Statement #63, Financial Reporting of Deferred Outflows of Resources, Deferred
Inflows of Resources, and Net Position, which is required to be implemented in fiscal year 2013.
The GASB issued Statement #65, Items Previously Reported as Assets and Liabilities, which is required
to be implemented in fiscal year 2013.
The GASB issued Statement #66, Technical Corrections – 2012, an amendment of GASB Statements
No. 10 and No. 62, which is required to be implemented in fiscal year 2013.
The GASB issued Statement #67, Financial Reporting for Pension Plans, an amendment of GASB
Statement No. 25, which is required to be implemented in fiscal year 2014.
The GASB issued Statement #68, Accounting and Financial Reporting for Pensions, an amendment of
GASB Statement No. 27, which is required to be implemented in fiscal year 2015.
Town of Canton, Massachusetts 65 Comprehensive Annual Financial ReportSource page 73
This page intentionally left blank. Town of Canton, Massachusetts 66 Comprehensive Annual Financial Report
Source page 74
Required Supplementary Information Required Supplementary Information Town of Canton, Massachusetts 67 Comprehensive Annual Financial Report
Source page 75
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2012
Budgeted Amounts
Actual Amounts Variance
Original Final Budgetary Carried Forward to Final
Budget Budget Amounts To Next Year Budget
REVENUES:
Real estate and personal property taxes,
net of tax refunds…………………………………………… $ 57,024,589 $ 57,024,589 $ 57,020,647 $ - $ (3,942)
Tax liens………………………………………………………… - - 371,909 - 371,909
Motor vehicle and other excise taxes………………………… 3,000,000 3,000,000 3,165,288 - 165,288
Hotel/motel tax………………………………………………… - - 38,309 - 38,309
Penalties and interest on taxes……………………………… 200,000 200,000 263,511 - 63,511
Payments in lieu of taxes……………………………………… 205,391 205,391 219,205 - 13,814
Licenses and permits………………………………………… 535,000 535,000 912,233 - 377,233
Fines and forfeitures…………………………………………… 125,000 125,000 99,500 - (25,500)
Intergovernmental……………………………………………… 6,859,629 6,859,629 6,844,821 - (14,808)
Departmental and other……………………………………… 450,000 450,000 484,555 - 34,555
Investment income…………………………………………… 100,000 100,000 96,495 - (3,505)
TOTAL REVENUES……………………………………… 68,499,609 68,499,609 69,516,473 - 1,016,864
EXPENDITURES:
Current:
General Government
Executive Branch………………………………………… 1,195,889 1,195,889 1,193,581 581 1,727
Executive Branch articles………………………………… 95,195 95,195 18,690 76,238 267
Finance Committee……………………………………… 11,500 11,500 10,743 - 757
Reserve Fund……………………………………………… 400,000 326,943 - - 326,943
Finance Department……………………………………… 913,937 913,420 851,766 60,045 1,609
Finance Department articles…………………………… 61,903 61,903 61,527 376 -
Assessors………………………………………………… 248,595 248,594 248,010 - 584
Water/Sewer Rate Committee…………………………… 1,000 1,000 - - 1,000
Town Clerk & Elections…………………………………… 199,453 199,453 198,152 - 1,301
Town Clerk & Elections articles………………………… 42,500 42,500 - 42,500 -
Conservation Commission……………………………… 72,130 72,130 68,837 - 3,293
Planning Board…………………………………………… 57,363 57,363 50,856 1,250 5,257
Building Renovation Committee………………………… 3,381 3,381 609 - 2,772
Capital Outlay Committee………………………………… 2,556 2,556 85 - 2,471
Town Insurance…………………………………………… 787,950 787,950 760,491 - 27,459
Total………………………………………………………… 4,093,352 4,019,777 3,463,347 180,990 375,440
Public Safety
Fire Department…………………………………………… 4,461,983 4,461,978 4,434,592 18,216 9,170
Fire Department articles………………………………… 110,000 110,000 94,910 15,000 90
Police……………………………………………………… 3,859,734 3,859,394 3,824,280 34,680 434
Police articles……………………………………………… 344,505 359,505 102,328 257,177 -
Building & Zoning………………………………………… 326,895 326,895 304,150 12,017 10,728
Sealer of Weights & Measures………………………… 7,500 7,500 6,750 - 750
Emergency Management………………………………… 9,835 9,835 9,797 - 38
Animal Control…………………………………………… 113,730 113,729 110,109 - 3,620
Total………………………………………………………… 9,234,182 9,248,836 8,886,916 337,090 24,830
Education
School……………………………………………………… 30,745,720 30,647,244 30,507,801 139,443 -
School articles…………………………………………… 406,618 406,618 376,105 30,513 -
Blue Hills Regional………………………………………… 1,337,865 1,337,865 1,337,865 - -
Total………………………………………………………… 32,490,203 32,391,727 32,221,771 169,956 -
Public Works
Public Works……………………………………………… 1,977,880 1,977,880 1,958,745 14,570 4,565
Public Works articles……………………………………… 61,218 61,218 33,490 27,623 105
Street Lighting…………………………………………… 221,693 221,693 120,761 10,961 89,971
Snow & Ice………………………………………………… 243,220 253,727 253,727 - -
Trash Collection…………………………………………… 1,515,237 1,515,235 1,423,668 13,882 77,685
Total………………………………………………………… 4,019,248 4,029,753 3,790,391 67,036 172,326
(Continued)
Town of Canton, Massachusetts 68 Comprehensive Annual Financial ReportSource page 76
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
FISCAL YEAR ENDED JUNE 30, 2012
Budgeted Amounts
Actual Amounts Variance
Original Final Budgetary Carried Forward to Final
Budget Budget Amounts To Next Year Budget
Health and Human Services
Health Department………………………………………… 321,972 321,972 312,294 - 9,678
Council on Aging………………………………………… 208,912 208,912 204,686 - 4,226
Council on Aging articles………………………………… 53,000 53,000 48,012 - 4,988
Commission on Disability………………………………… 2,565 2,565 338 - 2,227
Veteran's Services………………………………………… 149,390 216,572 216,374 - 198
Total………………………………………………………… 735,839 803,021 781,704 - 21,317
Culture and Recreation
Recreation & Playground………………………………… 387,343 411,943 411,874 - 69
Recreation & Playground articles……………………… 36,497 36,497 26,853 9,644 -
Public Library……………………………………………… 1,003,344 1,003,344 1,001,156 1,980 208
Public Library articles…………………………………… 35,151 35,151 19,116 15,920 115
Historical Commission…………………………………… 4,394 6,669 4,310 2,275 84
Beautification Commission……………………………… 1,378 1,378 1,368 - 10
Total………………………………………………………… 1,468,107 1,494,982 1,464,677 29,819 486
Pension Benefits…………………………………………… 3,001,315 3,001,315 2,942,041 - 59,274
Employee Benefits
Unemployment Compensation………………………… 100,000 100,000 100,000 - -
Employer Share - Health………………………………… 10,503,922 10,472,409 10,146,300 - 326,109
Employer Share - Life…………………………………… 60,000 60,000 57,233 - 2,767
Total………………………………………………………… 10,663,922 10,632,409 10,303,533 - 328,876
Unpaid bills……………………………………………………… - 856 856 - -
State and county charges…………………………………… 967,186 967,186 874,821 - 92,365
Debt service…………………………………………………… 5,939,452 5,987,944 5,967,611 - 20,333
TOTAL EXPENDITURES………………………………… 72,612,806 72,577,806 70,697,668 784,891 1,095,247
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES……………………………………… (4,113,197) (4,078,197) (1,181,195) (784,891) 2,112,111
OTHER FINANCING SOURCES (USES):
Premium from issuance of bonds…………………………… - - 55,651 - 55,651
Transfers in……………………………………………………… 2,382,592 2,397,592 2,349,278 - (48,314)
Transfers out…………………………………………………… (188,800) (1,038,800) (1,038,800) - -
TOTAL OTHER FINANCING SOURCES (USES)…… 2,193,792 1,358,792 1,366,129 - 7,337
NET CHANGE IN FUND BALANCE…………………………… (1,919,405) (2,719,405) 184,934 (784,891) 2,119,448
BUDGETARY FUND BALANCE, Beginning of year…………… 10,018,415 10,018,415 10,018,415 - -
BUDGETARY FUND BALANCE, End of year………………… $ 8,099,010 $ 7,299,010 $ 10,203,349 $ (784,891) $ 2,119,448
(Concluded)
See notes to required supplementary information.
Town of Canton, Massachusetts 69 Comprehensive Annual Financial ReportSource page 77
Retirement System Schedules of Funding
Progress and Employer Contributions
The Retirement System Schedule of Funding Progress presents multiyear trend information about whether the
actuarial value of planned assets is increasing or decreasing over time relative to the actuarial accrued liability for
benefits.
The Retirement System Schedule of Employer Contributions presents multiyear trend information for required and
actual contributions relating to the cost-sharing plan as a whole, of which the Town is one participating employer,
was well as the Town’s proportionate share of the plan’s annual contributions.
Retirement System Schedules
Town of Canton, Massachusetts 70 Comprehensive Annual Financial ReportSource page 78
Norfolk County Contributory Retirement System
SCHEDULE OF FUNDING PROGRESS
JUNE 30, 2012
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability (AAL) AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (A) (B) (B-A) (A/B) (C) ((B-A)/C)
01/01/10 $ 600,790,835 $ 1,001,881,055 $ 401,090,220 60.0% $ 223,332,595 179.6%
01/01/08 596,157,147 907,719,124 311,561,977 65.7% 223,814,977 139.2%
01/01/07 533,077,948 855,677,413 322,599,465 62.3% 219,620,865 146.9%
01/01/05 467,186,566 762,900,650 295,714,084 61.2% 196,639,163 150.4%
01/01/03 415,150,776 675,275,257 260,124,481 61.5% 185,281,985 140.4%
01/01/00 371,646,793 533,959,970 162,313,177 69.6% 163,542,978 99.2%
01/01/97 258,771,070 392,463,080 133,692,010 65.9% 126,219,194 105.9%
01/01/93 151,546,609 291,472,940 139,926,331 52.0% 107,482,975 130.2%
The Town's share of the UAAL, as of January 1, 2010, is approximately 7.2%.
See notes to required supplementary information.
Town of Canton, Massachusetts 71 Comprehensive Annual Financial ReportSource page 79
Norfolk County Contributory Retirement System
SCHEDULE OF EMPLOYER CONTRIBUTIONS
FISCAL YEAR ENDED JUNE 30, 2012
System Wide Town of Canton
(B/A)
Fiscal Year Annual (A) (B) Town's Percentage
Ended Required Actual Percentage Actual of System Wide
June 30 Contributions Contributions Contributed Contributions Actual Contributions
2012 $ 41,206,587 $ 41,206,587 100% $ 2,957,615 7.18%
2011 39,749,857 39,749,857 100% 2,992,977 7.53%
2010 41,242,373 41,242,373 100% 2,826,638 6.85%
2009 38,920,499 38,920,499 100% 2,672,418 6.87%
2008 33,104,903 33,104,903 100% 2,297,249 6.94%
2007 32,877,890 32,877,890 100% 2,201,571 6.70%
2006 31,755,708 31,755,708 100% 2,017,098 6.35%
2005 28,238,996 28,238,996 100% 1,747,497 6.19%
The Town's Actual Contributions equaled 100% of its Required Contribution for each year presented.
See notes to required supplementary information.
Town of Canton, Massachusetts 72 Comprehensive Annual Financial ReportSource page 80
Other Postemployment Benefits Plan
Schedules
The Schedule of Funding progress compares, over time, the actuarial accrued liability for benefits with the
actuarial value of accumulated plan assets.
The Schedule of Employer Contributions compares, over time, the Annual Required Contributions to the Actual
Contributions made.
The Schedule of Actuarial Methods and Assumptions presents factors that significantly affect the identification of
trends in the amounts reported.
Town of Canton, Massachusetts 73 Comprehensive Annual Financial Report