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Latest Bond Issuance Report March 2017
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Source page 121
When both restricted and unrestricted resources are available for use, it is the Town’s policy to
use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as
they are needed. When unrestricted resources (committed, assigned and unassigned) are available
for use it is the Town’s policy to use committed resources first, then assigned, and then
unassigned as they are needed.
The Town has not established financial policies with respect to maintaining minimum fund
balance amounts.
Stabilization Funds – The Town maintains a general stabilization fund which may be used for any
municipal purpose upon a two-thirds vote of the Town Meeting. The balance of the fund totals
$6,426,119 at June 30, 2016 and is reported as unassigned fund balance in the General Fund.
Encumbrances – The Town’s encumbrance policy regarding the general fund is to (1) classify
encumbrances that arise from the issuance of purchase orders resulting from normal purchasing
activity approved by the Finance Department as assigned, and (2) classify encumbrances that
result from an action of the Town Meeting as committed. Encumbrances of funds already
restricted, or committed are included within the classification of those fund balances and not
reported separately. The Town reports $514,942 of encumbrances from normal purchasing
activity in the general fund as assigned and $886,722 of encumbrances from Town Meeting
Articles in the general fund as committed. There are no encumbrances reported in any other fund.
Town of Canton, Massachusetts Page 53 of 123 Comprehensive Annual Financial ReportSource page 122
The following table reflects the Town’s fund equity categorizations:
Capital Nonmajor
General Projects Governmental Total
Nonspendable:
Nonexpendable trust funds $ - $ - $ 471,585 $ 471,585
Restricted:
Recreation revolving - - 200,444 200,444
Parking revolving - - 126,602 126,602
Animal control revolving - - 86,912 86,912
Other Town revolving - - 317,501 317,501
School revolving - - 1,876,446 1,876,446
General municipal private grants - - 760,048 760,048
Ambulance receipts reserved - - 1,134,112 1,134,112
Community preservation - - 1,388,178 1,388,178
Police grants - - 756,692 756,692
Other Town grants - - 88,732 88,732
School grants - - 501,894 501,894
General municipal donations - - 1,704,438 1,704,438
School donations - - 179,087 179,087
Police donations - - 78,210 78,210
Insurance recoveries - - 502,573 502,573
Roadway improvements - 118,454 - 118,454
Other capital outlay - 44,700 - 44,700
Library trust funds - - 161,476 161,476
Conservation trust funds - - 149,049 149,049
Other trust funds - - 31,228 31,228
Other purposes - - 377,997 377,997
Committed:
Police 105,475 - - 105,475
Education 107,648 - - 107,648
Streetlights 356,000 - - 356,000
Public buildings 154,955 - - 154,955
Other purposes 162,644 - - 162,644
Assigned:
Purchase orders 514,942 - - 514,942
Subsequent years' budget 1,332,000 - - 1,332,000
Unassigned 12,961,775 (2,440,707) (234,048) 10,287,020
$ 15,695,439 $ (2,277,553) $ 10,659,156 $ 24,077,042
Town of Canton, Massachusetts Page 54 of 123 Comprehensive Annual Financial ReportSource page 123
E. Excess of Expenditures Over Appropriations and Deficits
During fiscal year 2016, no expenditures exceeded appropriations in the General Fund.
The Town incurred individual fund deficits totaling $2,440,707 in the Capital Projects major
fund. The Town also incurred individual fund deficits totaling $234,048 in three special revenue
funds that are reported in the non-major governmental funds. These deficits will be funded
through grant revenues, departmental revenues and bond proceeds during fiscal year 2017.
F. Use of Estimates
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.
II. Detailed Notes to All Funds
A. Deposits 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 trust funds are held separately from those of other funds.
State laws and regulations require the Town to invest funds only in pre-approved investment
instruments which include but are not necessarily limited to bank deposits, money markets,
certificates of deposit, U.S. obligations, repurchase agreements, and the State Treasurer’s
investment pool (the Pool). In addition, the statutes impose various limitations on the amount and
length of investments and deposits. Repurchase agreements cannot be for a period of over ninety
days, and the underlying security must be a United States obligation.
The Pool meets the criteria of an external investment pool. The Pool is administered by the
Massachusetts Municipal Depository Trust (the 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 government’s deposits may not be returned to it. The Town has adopted a policy that
no more than 25% of the Town’s cash may be comprised of unsecured bank deposits, except for a
30 day reprieve during times of heavy collections. The credit worthiness of banks will be tracked
by Veribanc, or other bank credit worthiness reporting systems, and the Treasurer will move or
collateralize deposits as a result of negative reports. At year-end, the carrying amount of the
Town's deposits was $38,568,972 and the bank balance was $40,271,189. Of the Town's bank
balance, $38,449,647 was covered by federal depository insurance or the Depositor’s Insurance
Fund; $1,605,342 was collateralized and the remainder was exposed to custodial credit risk
because it was uninsured and uncollateralized. The carrying amount of cash includes $4,659,138
of non-negotiable certificates of deposit with maturities of less than one year that are considered
cash and cash equivalents.
Town of Canton, Massachusetts Page 55 of 123 Comprehensive Annual Financial ReportSource page 124
Custodial Credit Risk: Investments – In the case of investments, this is the risk that in the event of
the invested party not being able to provide required payments to investors, ceasing to exist, or
filing of bankruptcy, the Town may not be able to recover the full amount of its principal
investment and/or investment earnings. The Town has adopted a policy to review the financial
institutions financial statements and the background of each advisor. All securities not held
directly by the Town will be held in the Town’s name and tax identification number by a third
party custodian and evidenced by safekeeping receipts showing individual CUSIP numbers for
each security. The investments in the MMDT are not exposed to custodial credit risk as their
existence is not evidenced by securities that exist in physical or book form. The Town’s
investment in a repurchase agreement is held by a counterparty, but not in the Town’s name. The
repurchase agreement is fully collateralized with U.S. government securities. The Town’s
investments in negotiable certificates of deposit are fully covered by federal depository insurance.
Fair Value of Investments – The Town reports its investments at fair value. The Town
categorizes its fair value measurements within the fair value hierarchy established by GAAP.
This hierarchy is based on valuation inputs used to measure the fair value of the asset or liability.
The three levels of the hierarchy are as follows:
Level 1 – Inputs are quoted prices in active markets for identical investments at the
measurement date.
Level 2 – Inputs (other than quoted prices included in Level 1) are either directly or
indirectly observable for the investment through correlation with market data at the
measurement date and for the duration of the instrument’s anticipated life.
Level 3 – Inputs reflect the Town’s best estimate of what market participants would use
in pricing the investment at the measurement date.
The following table presents the Town’s investments carried at fair value on a recurring basis in
the statement of net position at June 30, 2016:
Fair Value Measurements Using
6/30/16 Level 1 Level 2 Level 3
Investments by fair value level
Debt securities:
Corporate fixed income securities $ 1,116,209 1,116,209 - -
U.S. government obligations 4,297,567 4,297,567 - -
Negotiable certificates of deposit 1,623,163 - 1,623,163 -
Bond mutual funds 1,047,335 - 1,047,335 -
Repurchase agreements 1,200,000 - 1,200,000 -
State investment pool 354,994 - 354,994 -
Total debt securities 9,639,268 5,413,776 4,225,492 -
Equity securities:
Common stock 1,473,730 1,473,730 - -
Equity mutual funds 1,222,836 - 1,222,836 -
Total equity securities 2,696,566 1,473,730 1,222,836 -
Total investments by fair value level $ 12,335,834 $ 6,887,506 $ 5,448,328 $ -
Town of Canton, Massachusetts Page 56 of 123 Comprehensive Annual Financial ReportSource page 125
Debt and equity securities classified in Level 1 are valued using prices quoted in active markets
for those securities. Negotiable certificates of deposit and repurchase agreements are valued
using matrix pricing based on the securities’ relationship to benchmark quoted prices. Bond and
equity mutual funds are valued based on the published fair value per share (unit) for each fund.
The State Treasurer’s investment pool (MMDT) is valued based on the composition and fair
value of the underlying investments contained within this pool, which can be determined using
inputs other than quoted prices that are observable either directly or indirectly.
Interest Rate Risk – The Town limits investment maturities as a means of managing its exposure
to fair value losses arising from increasing interest rates. The Town’s policy limits investments
of operating funds to one year or less.
At June 30, 2016, the Town had the following investments with maturities:
Maturities in Years
Investments 6/30/16 Less than 1 1-5 6 - 10
Corporate fixed income securities $ 1,116,209 $ - $ 1,065,741 $ 50,468
U.S. government obligations 4,297,567 - 2,355,482 1,942,085
Negotiable certificates of deposit 1,623,163 - 1,623,163 -
Repurchase agreements 1,200,000 1,200,000 - -
State investment pool 354,994 354,994 - -
Total investments with maturities $ 8,591,933 $ 1,554,994 $ 5,044,386 $ 1,992,553
Concentration of Credit Risk – The Town has adopted a policy to limit the amount of investments
that may be invested in a single issuer to 10% of the Town’s investments, except for U.S
government obligations, investments fully collateralized with U.S. government obligations and
the Pool (MMDT). At June 30, 2016, Town has 35% of its investments in U.S. government
obligations and 10% of its investments in repurchase agreements collateralized with United States
government backed securities.
Credit Risk – The Town has adopted a policy to only purchase investment grade securities with a
high concentration in securities rated ‘A’ or better.
Town of Canton, Massachusetts Page 57 of 123 Comprehensive Annual Financial ReportSource page 126
At June 30, 2016 the credit quality ratings of investments were as follows:
Corporate U.S. Government Negotiable State
Quality Ratings Fixed Agencies & Certificates Repurchase Investment
(Moody's) Income Treasuries of Deposit Agreements Pool Totals
AAA $ - $ 4,297,567 $ - $ - $ - $ 4,297,567
AA 50,238 - - - - 50,238
A 104,887 - - - - 104,887
A1 160,000 - - - - 160,000
A2 89,775 - - - - 89,775
BAA 102,610 - - - - 102,610
BAA1 425,271 - - - - 425,271
BAA2 183,428 - - - - 183,428
Not rated - - 1,623,163 1,200,000 354,994 3,178,157
Totals - All $ 1,116,209 $ 4,297,567 $ 1,623,163 $ 1,200,000 $ 354,994 $ 8,591,933
B. Receivables
Receivables as of year-end for the Town’s individual and non-major governmental funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Real estate and personal property taxes $ 598,178 $ (51,980) $ 546,198
Tax liens and foreclosures 1,262,801 - 1,262,801
Community preservation surcharges 4,935 - 4,935
Motor vehicle and other excise taxes 561,285 (262,098) 299,187
Ambulance fees 670,712 (237,256) 433,456
Public safety details 99,033 - 99,033
Other 11,239 - 11,239
Intergovernmental 3,148,597 - 3,148,597
Total $ 6,356,780 $ (551,334) $ 5,805,446
Town of Canton, Massachusetts Page 58 of 123 Comprehensive Annual Financial ReportSource page 127
Receivables as of year-end for the Town’s proprietary funds are as follows:
Gross Allowance for Net
Amount Uncollectibles Amount
Receivables:
Water user charges $ 2,207,256 $ - $ 2,207,256
Water liens 13,820 - 13,820
Sewer user charges 1,842,450 - 1,842,450
Sewer liens 16,330 - 16,330
Rink user charges 19,710 (19,710) -
Stop loss receivables 191,375 - 191,375
Total $ 4,290,941 $ (19,710) $ 4,271,231
Governmental funds report deferred inflows of resources in connection with receivables for
revenues that are not considered to be available to liquidate liabilities of the current period. The
following identifies the components of deferred inflows of resources in the governmental funds:
Other
General Governmental
Fund Funds Total
Receivable type:
Real estate and personal property taxes $ 108,706 $ - $ 108,706
Tax liens and foreclosures 1,260,489 2,312 1,262,801
Motor vehicle and other excise taxes 299,187 - 299,187
Community preservation surcharges - 4,935 4,935
Ambulance fees - 433,456 433,456
Public safety details - 99,033 99,033
Other 11,239 - 11,239
Intergovernmental 2,125,785 - 2,125,785
Total $ 3,805,406 $ 539,736 $ 4,345,142
School Building Assistance Reimbursement – As of June 30, 2016, the Town expects to receive
the balance of grants from the Commonwealth of Massachusetts under various construction
reimbursement regulations totaling approximately $2.4 million applicable to approved school
construction costs which includes both principal and interest. Approximately $2.3 million of
such costs are reimbursed to the Town in equal installments over the life of the related bond
issues and are subject to appropriation only by the State Legislature. Approximately $0.1 million
is due in a lump sum during fiscal year 2017. In the Governmental funds, a receivable of
approximately $2.2 million under the caption Intergovernmental has been recorded. This includes
the reimbursable portion of the principal balance and the lump sum payout as of June 30, 2016.
Town of Canton, Massachusetts Page 59 of 123 Comprehensive Annual Financial ReportSource page 128
C. Interfund Receivables, Payables and Transfers
The composition of interfund balances at June 30, 2016 is as follows:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds - $ 598,667
Roadway Improvements
General Fund Nonmajor Governmental Funds -
Town Grants 100,357
$ 699,024
The outstanding balances between funds result mainly from the timing difference between the
dates that reimbursable expenditures occur, the intergovernmental reimbursements are received
and the payments to the general fund are made.
The composition of interfund transfers for the fiscal year ended June 30, 2016 is as follows:
Transfers In
Capital Nonmajor Water Rink
General Projects Governmental Enterprise Enterprise
Transfers Out Fund Fund Funds Fund Fund Total
General Fund $ - $ 402,786 $ 80,000 $ 350,000 $ - $ 832,786 (1)
Nonmajor Governmental Funds 1,297,854 164,106 - 37,695 1,787,052 3,286,707 (2)
Water Enterprise Fund 350,000 - - - - 350,000 (3)
Total $ 1,647,854 $ 566,892 $ 80,000 $ 387,695 $ 1,787,052 $ 4,469,493
(1) Transfers to capital projects fund for various capital purposes, transfer to nonmajor governmental funds for
retirement buyback reserves and transfer to water enterprise fund for capital purposes.
(2) Transfers to general fund to supplement operating budgets, transfer to capital projects fund for roadway
improvements, transfers to water and rink enterprise funds for insurance recoveries.
(3) Transfer to general fund to reimburse for capital funding transfer earlier in year.
Town of Canton, Massachusetts Page 60 of 123 Comprehensive Annual Financial ReportSource page 129
D. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2016, 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 process - 2,579,774 - 2,579,774
Total capital assets not being depreciated 11,158,868 2,579,774 - 13,738,642
Capital assets being depreciated:
Land improvements 2,765,111 - - 2,765,111
Buildings 79,576,179 420,003 - 79,996,182
Building improvements 26,305,147 622,100 - 26,927,247
Machinery and equipment 7,697,905 869,751 (258,140) 8,309,516
Vehicles 5,639,427 783,379 (784,358) 5,638,448
Infrastructure 23,210,853 1,569,634 - 24,780,487
Total capital assets being depreciated 145,194,622 4,264,867 (1,042,498) 148,416,991
Less accumulated depreciation for:
Land improvements (1,487,750) (166,039) - (1,653,789)
Buildings (24,792,517) (1,801,698) - (26,594,215)
Building improvements (11,810,557) (1,049,635) - (12,860,192)
Machinery and equipment (4,463,589) (566,247) 216,140 (4,813,696)
Vehicles (4,085,227) (530,531) 762,043 (3,853,715)
Infrastructure (5,261,955) (599,891) - (5,861,846)
Total accumulated depreciation (51,901,595) (4,714,041) 978,183 (55,637,453)
Total capital assets being depreciated, net 93,293,027 (449,174) (64,315) 92,779,538
Total governmental activities capital assets, net $ 104,451,895 $ 2,130,600 $ (64,315) $ 106,518,180
Capital asset activity for business-type activities for the year ended June 30, 2016, was as follows:
Beginning Ending
Balance Increases Decreases Balance
Business-Type Activities:
Capital assets not being depreciated:
Land $ 624,852 $ - $ - $ 624,852
Capital assets being depreciated:
Buildings 18,758,743 - - 18,758,743
Building improvements 167,425 178,485 - 345,910
Machinery and equipment 2,877,839 109,231 - 2,987,070
Vehicles 927,140 - - 927,140
Infrastructure 55,477,473 1,761,817 - 57,239,290
Total capital assets being depreciated 78,208,620 2,049,533 - 80,258,153
Less accumulated depreciation for:
Buildings (3,902,717) (438,652) - (4,341,369)
Building improvements (79,535) (13,084) - (92,619)
Machinery and equipment (1,163,738) (285,630) - (1,449,368)
Vehicles (813,742) (44,912) - (858,654)
Infrastructure (26,490,938) (1,064,563) - (27,555,501)
Total accumulated depreciation (32,450,670) (1,846,841) - (34,297,511)
Total capital assets being depreciated, net 45,757,950 202,692 - 45,960,642
Total business-type activities capital assets, net $ 46,382,802 $ 202,692 $ - $ 46,585,494
Town of Canton, Massachusetts Page 61 of 123 Comprehensive Annual Financial ReportSource page 130
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities: Water
Capital assets not being depreciated:
Land $ 624,852 $ - $ - $ 624,852
Capital assets being depreciated:
Buildings 17,495,139 - - 17,495,139
Building improvements 27,465 178,485 - 205,950
Machinery and equipment 1,977,051 109,231 - 2,086,282
Vehicles 541,364 - - 541,364
Infrastructure 25,590,270 1,358,704 - 26,948,974
Total capital assets being depreciated 45,631,289 1,646,420 - 47,277,709
Less accumulated depreciation for:
Buildings (3,526,487) (408,530) - (3,935,017)
Building improvements (4,806) (5,836) - (10,642)
Machinery and equipment (737,177) (203,167) - (940,344)
Vehicles (473,802) (31,206) - (505,008)
Infrastructure (10,348,072) (512,662) - (10,860,734)
Total accumulated depreciation (15,090,344) (1,161,401) - (16,251,745)
Total capital assets being depreciated, net 30,540,945 485,019 - 31,025,964
Total Water capital assets, net $ 31,165,797 $ 485,019 $ - $ 31,650,816
Business-type Activities: Sewer
Capital assets being depreciated:
Buildings $ 1,263,604 $ - $ - $ 1,263,604
Machinery and equipment 642,991 - - 642,991
Vehicles 356,616 - - 356,616
Infrastructure 29,887,203 403,113 - 30,290,316
Total capital assets being depreciated 32,150,414 403,113 - 32,553,527
Less accumulated depreciation for:
Buildings (376,230) (30,122) - (406,352)
Machinery and equipment (228,797) (64,299) - (293,096)
Vehicles (310,780) (13,706) - (324,486)
Infrastructure (16,142,866) (551,901) - (16,694,767)
Total accumulated depreciation (17,058,673) (660,028) - (17,718,701)
Total capital assets being depreciated, net 15,091,741 (256,915) - 14,834,826
Total Sewer capital assets, net $ 15,091,741 $ (256,915) $ - $ 14,834,826
Town of Canton, Massachusetts Page 62 of 123 Comprehensive Annual Financial ReportSource page 131
Beginning Ending
Balance Increases Decreases Balance
Business-type Activities: Rink
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 (74,729) (7,248) - (81,977)
Machinery and equipment (197,764) (18,164) - (215,928)
Vehicles (29,160) - - (29,160)
Total accumulated depreciation (301,653) (25,412) - (327,065)
Total capital assets being depreciated, net 125,264 (25,412) - 99,852
Total Rink capital assets, net $ 125,264 $ (25,412) $ - $ 99,852
Depreciation expense was charged to functions/programs as follows:
Governmental Activities: Business-Type Activities:
General government $ 172,511 Water $ 1,161,401
Public safety 705,770 Sewer 660,028
Education 2,466,538 Rink 25,412
Public works 945,183 $ 1,846,841
Health and human services 71,279
Culture and recreation 352,760
$ 4,714,041
Capital Asset Impairment – During the prior fiscal year, a portion of the roof of the ice rink used
in the Rink Enterprise Fund operations collapsed due to the significant snowfall in the area. The
ice rink is leased from the Commonwealth and, therefore, the building is not a capital asset of the
Rink Enterprise Fund. Capital assets of the Rink Enterprise Fund with a carrying value of
$99,852 were idle at year-end and are considered temporarily impaired due to the ice rink being
closed until repairs can be completed. The Rink Enterprise Fund has not recorded a provision for
this damage as all repairs from this event are expected to be funded by the Commonwealth and
insurance recoveries. The rink is expected to be operational during fiscal year 2018.
E. Leases
The Town entered into a non-cancelable lease for the purchase of a school bus. This lease
qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payments as of the inception date.
Assets acquired through capital leases are as follows:
Amount
Asset:
School bus $ 104,250
Less: accumulated depreciation (20,850)
Total $ 83,400
Town of Canton, Massachusetts Page 63 of 123 Comprehensive Annual Financial ReportSource page 132
The future minimum lease payments and the present value of the minimum lease payments at
June 30, 2016, are as follows:
Fiscal Year Ended June 30, Amount
2017 $ 21,713
2018 21,713
2019 21,713
2020 21,713
Total minimum lease payments 86,852
Less: amounts representing interest (2,606)
Present value of minimum lease payments $ 84,246
`F. Temporary Debt
The Town is authorized to borrow on a temporary basis to fund the following:
Current Operating Costs – Prior to collection of revenues, expenditures may be financed through
the issuance of revenue or tax anticipation notes (RANS or TANS).
Capital Projects and Other Approved Costs – Projects may be temporarily funded through the
issuance of bond anticipation notes (BANS) or grant anticipation notes (GANS). In certain cases,
prior to the issuance of these temporary notes, the governing body must take the necessary legal
steps to authorize the issuance of the general obligation bonds. Temporary notes may not exceed
the aggregate amount of bonds authorized or the grant award amount.
Temporary notes are general obligations of the Town and carry maturity dates that are limited by
state law. Interest expenditures and expenses for temporary borrowings are accounted for in the
general fund and enterprise funds, respectively.
Temporary notes outstanding at June 30, 2016, are payable as follows:
Interest Maturity July 1, June 30,
Type Rate Date 2015 Additions Retirements 2016
BAN 0.50% Matured $ 797,786 $ - $ (797,786) $ -
BAN 2.00% 03/24/17 - 2,385,000 - 2,385,000
Total Governmental Notes 797,786 2,385,000 (797,786) 2,385,000
BAN 2.00% 03/24/17 - 1,300,000 - 1,300,000
Total Business-Type Notes - 1,300,000 - 1,300,000
Total Notes Payable $ 797,786 $ 3,685,000 $ (797,786) $ 3,685,000
Short-term (BANs) were issued for Town building improvements ($110,000), dam repairs
($75,000), school building improvements ($2,200,000) and water mains ($1,300,000).
Town of Canton, Massachusetts Page 64 of 123 Comprehensive Annual Financial ReportSource page 133
G. Long–Term Obligations
The Town issues general obligation bonds and notes to provide funds for the acquisition and
construction of major capital facilities. General obligation bonds and notes have been issued for
both governmental and business-type activities. Additionally, the Town incurs various other
long-term obligations relative to associated personnel costs.
State law permits the Town, under the provisions of Chapter 44, Section 10, to authorize
indebtedness up to a limit of 5.0 percent of its equalized valuation. Debt issued in accordance
with this section of the law is designated as being “inside the debt limit.” In addition, the Town
may authorize debt in excess of that limit for specific purposes. Such debt, when issued, is
designated as being “outside the debt limit”.
The following reflects the current year activity in the long-term liability accounts:
Beginning Ending Due within
Balance Additions Deletions Balance one year
Governmental Activities:
Bond and note indebtedness $ 28,180,650 $ 1,882,000 $ (4,446,624) $ 25,616,026 $ 3,821,850
Unamortized bond premium 1,485,677 - (353,697) 1,131,980 299,135
Capital leases 104,250 - (20,004) 84,246 20,419
Landfill closure 78,000 - (26,000) 52,000 26,000
Compensated absences 1,584,469 345,489 (396,117) 1,533,841 383,460
Net pension liability 36,739,917 9,398,277 (7,211,547) 38,926,647 -
Other postemployment benefits 42,889,765 5,059,321 (3,824,852) 44,124,234 -
Total Governmental Activities $ 111,062,728 $ 16,685,087 $ (16,278,841) $ 111,468,974 $ 4,550,864
Business-Type Activities - Water:
Bond and note debt $ 20,960,050 $ 585,000 $ (2,293,750) $ 19,251,300 $ 1,671,400
Unamortized bond premium 292,451 - (53,310) 239,141 47,592
Compensated absences 110,344 6,353 (27,586) 89,111 22,278
Net pension liability 1,259,184 322,106 (247,160) 1,334,130 -
Other postemployment benefits 862,376 62,843 (9,452) 915,767 -
Total Water 23,484,405 976,302 (2,631,258) 21,829,449 1,741,270
Business-Type Activities - Sewer:
Bond and note debt 8,359,040 611,000 (949,515) 8,020,525 956,132
Unamortized bond premium 137,891 - (35,123) 102,768 35,123
Compensated absences 13,404 4,882 (3,351) 14,935 3,734
Net pension liability 1,004,209 256,882 (197,113) 1,063,978 -
Other postemployment benefits 390,865 28,571 (7,648) 411,788 -
Total Sewer 9,905,409 901,335 (1,192,750) 9,613,994 994,989
Business-Type Activities - Rink:
Bond and note debt 26,000 - (8,000) 18,000 6,000
Compensated absences 17,586 2,467 (4,396) 15,657 3,914
Net pension liability 223,593 57,196 (43,888) 236,901 -
Other postemployment benefits 234,300 11,090 (1,088) 244,302 -
Total Rink 501,479 70,753 (57,372) 514,860 9,914
Total Business-Type Activities $ 33,891,293 $ 1,948,390 $ (3,881,380) $ 31,958,303 $ 2,746,173
The governmental activities liabilities will be liquidated by the general fund. The business-type
liabilities will be liquidated by the enterprise fund reporting the liabilities.
Town of Canton, Massachusetts Page 65 of 123 Comprehensive Annual Financial ReportSource page 134
The following is a summary of outstanding long-term debt obligations as of June 30, 2016:
Interest Beginning Ending
Description of Issue Rate Balance Additions Maturities Balance
Governmental Activities:
General Obligation Bonds 2.00 - 5.00% $11,906,150 $ 1,367,000 $ (1,765,924) $11,507,226
Refunding Bonds 2.00 - 4.00% 16,274,500 515,000 (2,680,700) 14,108,800
Total Governmental Activities 28,180,650 1,882,000 (4,446,624) 25,616,026
Add: Unamortized bond premium 1,485,677 - (353,697) 1,131,980
Total Governmental Activities, net $ 29,666,327 $ 1,882,000 $ (4,800,321) $ 26,748,006
Business-Type Activities - Water:
General Obligation Bonds 2.00 - 5.00% $18,093,250 $ - $ (1,901,250) $16,192,000
Refunding Bonds 3.25 - 4.00% 1,289,800 585,000 (192,500) 1,682,300
Massachusetts Water Resource Authority 0.00% 1,577,000 - (200,000) 1,377,000
Total Water 20,960,050 585,000 (2,293,750) 19,251,300
Add: Unamortized bond premium 292,451 - (53,310) 239,141
Total Water, net 21,252,501 585,000 (2,347,060) 19,490,441
Business-Type Activities - Sewer:
General Obligation Bonds 2.00 - 5.00% 2,770,750 561,000 (310,750) 3,021,000
Refunding Bonds 3.25 - 4.00% 2,023,700 50,000 (358,800) 1,714,900
Massachusetts Water Resource Authority 0.00% 453,200 - (113,300) 339,900
Massachusetts Clean Water Trust 2.00% 3,111,390 - (166,665) 2,944,725
Total Sewer 8,359,040 611,000 (949,515) 8,020,525
Add: Unamortized bond premium 137,891 - (35,123) 102,768
Total Sewer, net 8,496,931 611,000 (984,638) 8,123,293
Business-Type Activities - Rink:
General Obligation Bonds 2.00 - 4.25% 26,000 - (8,000) 18,000
Total Rink 26,000 - (8,000) 18,000
Total Business-Type Activities, net $ 29,775,432 $ 1,196,000 $ (3,339,698) $ 27,631,734
The following represents authorized and unissued debt as of June 30, 2016:
Project Amount
Governmental:
Infrastructure $ 8,847,000
School building improvements 1,900,000
Land purchase 1,740,000
Fire equipment and vehicles 984,000
Other capital projects 2,299,005
Business-type:
Water projects 1,330,000
Sewer projects 864,790
Rink compressor 245,000
Total Authorized and Unissued $ 18,209,795
Town of Canton, Massachusetts Page 66 of 123 Comprehensive Annual Financial ReportSource page 135
Payments on outstanding bond balances due in future years consist of the following:
Governmental Activities
Year Ending Principal Interest
June 30, Balance Balance Total
2017 $ 3,821,850 $ 914,012 $ 4,735,862
2018 3,443,933 787,676 4,231,609
2019 3,183,421 659,171 3,842,592
2020 2,985,516 536,696 3,522,212
2021 2,923,415 426,954 3,350,369
2022 - 2026 7,374,588 859,812 8,234,400
2027 - 2031 1,666,237 160,138 1,826,375
2032 - 2036 217,066 8,004 225,070
Total $ 25,616,026 $ 4,352,463 $ 29,968,489
Business-Type Activities: Water
Year Ending Principal Interest
June 30, Balance Balance Total
2017 $ 1,671,400 $ 603,857 $ 2,275,257
2018 1,574,800 559,878 2,134,678
2019 1,569,700 512,368 2,082,068
2020 1,558,200 463,740 2,021,940
2021 1,506,400 419,798 1,926,198
2022 - 2026 6,436,800 1,444,367 7,881,167
2027 - 2031 4,443,000 523,126 4,966,126
2032 - 2036 491,000 19,942 510,942
Total $ 19,251,300 $ 4,547,076 $ 23,798,376
Business-Type Activities: Sewer
Year Ending Principal Interest
June 30, Balance Balance Total
2017 $ 956,132 $ 203,311 $ 1,159,443
2018 941,367 180,633 1,122,000
2019 925,771 154,666 1,080,437
2020 731,746 128,319 860,065
2021 549,594 110,493 660,087
2022 - 2026 2,234,711 347,212 2,581,923
2027 - 2031 1,581,204 119,425 1,700,629
2032 - 2036 100,000 3,375 103,375
Total $ 8,020,525 $ 1,247,434 $ 9,267,959
Business-Type Activities: Rink
Year Ending Principal Interest
June 30, Balance Balance Total
2017 $ 6,000 $ 540 $ 6,540
2018 6,000 360 6,360
2019 6,000 180 6,180
Total $ 18,000 $ 1,080 $ 19,080
Town of Canton, Massachusetts Page 67 of 123 Comprehensive Annual Financial ReportSource page 136
Current Refunding – On March 17, 2016, the Town issued general obligation refunding bonds of
$1,150,000, paying interest at 2.0% per annum, that were used to retire $1,150,000 of general
obligation bonds. As a result of the current refunding, the Town reduced its total debt service
requirements by $111,041, which resulted in an economic gain (difference between the present
value of the debt service payments on the old and new debt) of $102,524.
III. Other Information
A. Retirement System
Retirement System Description – The Town contributes to the Norfolk County Retirement System
(the “System”), a cost-sharing multiple-employer defined benefit pension plan. The System was
established under Chapter 32 of the Commonwealth of Massachusetts General Laws (MGL) and
is administered by Norfolk County Retirement Board (the “Board”). Standalone financial
statements for the year ended December 31, 2015 were issued and are available at the Norfolk
County Retirement System, 480 Neponset Street, Canton, MA 02021.
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 during those years are borne by the Commonwealth
and are deposited into the pension fund directly. Cost-of-living adjustments granted after 1997
must be approved by the Board and are borne by the System.
Contributions Requirements – The System has elected provisions of Chapter 32, Section 22D (as
amended) of Massachusetts General Laws, which require that a funding schedule be established
to fully fund the pension plan by June 30, 2040. Under provisions of this law, participating
employers are assessed their share of the total retirement cost based on the entry age, normal
actuarial cost method. The Town contributed $3,990,657 to the System in fiscal year 2016,
which equaled the actuarially-determined contribution requirement for the fiscal year.
Net Pension Liability – At June 30, 2016, the Town reported a liability of $41,561,656 for its
proportionate share of the net pension liability. The net pension liability was measured as of
December 31, 2015 and the total pension liability used to calculate the net pension liability was
determined by an actuarial valuation as of January 1, 2016. There were no material changes to
the System’s benefit terms since the previous actuarial valuation.
The Town’s proportion of the net pension liability is based on a projection of the Town’s long-
term share of contributions to the System relative to the projected contributions of all employers.
The Town’s proportion was approximately 7.65% at December 31, 2015, which was consistent
with the proportion measured at January 1, 2016.
Fiduciary Net Position –The System’s fiduciary net position was determined using the accrual
basis of accounting. The System’s accounting records are maintained on a calendar-year basis in
accordance with the standards and procedures established by PERAC. Contributions from
employers and employees are recognized in the period in which they become due pursuant to
formal commitments, statutory or contractual requirements. Benefit payments (including refunds
of employee contributions) are recorded when incurred, regardless of the timing of payment.
Investments are reported at fair value; fair value is determined as the price one would receive in
an orderly transaction between market participants at a measurement date.
Town of Canton, Massachusetts Page 68 of 123 Comprehensive Annual Financial ReportSource page 137
Pension Expense – The Town recognized $4,737,359 in pension expense in the statement of
activities in fiscal year 2016; which was allocated to all functional expenses that applied.
Deferred Outflows of Resources and Deferred Inflows of Resources – At June 30, 2016, the
Town reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources (dollar amounts are in thousands):
Deferred Outflows Deferred Inflows
of Resources of Resources
Net differences between projected and
actual earnings on pension plan investments $ 5,574 $ -
Differences between expected and
actual experience 842 -
Changes in assumptions - 3,503
Changes in proportion and differences
between Town contributions and
proportionate share of contributions 295 -
Total $ 6,711 $ 3,503
The deferred outflows of resources and deferred inflows of resources are expected to be
recognized in the Town’s pension expense as follows (dollar amounts are in thousands):
Year ended June 30,
2017 $ 868
2018 868
2019 868
2020 604
Total $ 3,208
Actuarial Valuation – The measurement of the System’s total pension liability is developed by an
independent actuary. The latest actuarial valuation was performed as of January 1, 2016. The
significant actuarial assumptions used in the January 1, 2016 actuarial valuation included:
Actuarial cost method: Individual entry age normal
Amortization method: 4.0% increasing payments
Remaining amortization period: 13 years
Investment rate of return: 8.0%
Projected salary increases: Year 1 - 5.5%, Year 2 - 5.0%, Years 3 & 4 - 4.5%,
Year 5 - 4.0%, Thereafter - 3.5%
Asset valuation method: Market value
Town of Canton, Massachusetts Page 69 of 123 Comprehensive Annual Financial ReportSource page 138
Cost of living adjustments: 3.0% on the first $15,000 of benefits
Inflation rate: 4.0%
Mortality rates: Pre-retirement and post-retirement rates reflect the
RP-2014 Blue Collar Mortality with Scale MP-2014,
fully generational
The investment rate of return assumption is a long-term assumption and is based on capital
market expectations by asset class, historical returns and professional judgment. The market
expectations analysis used a building-block approach, which included expected returns by asset
class and the target asset allocation. The target allocation and best estimates of arithmetic real
returns for each major asset class are summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Domestic Equity 32.0% 9.4%
International Equity 17.5% 9.7%
Fixed Income 19.0% 3.4%
Real Estate 9.0% 7.7%
Private Equity 8.5% 13.6%
Hedge Fund 9.0% 7.9%
Real Assets 5.0% 7.9%
Total 100.0%
The System’s investment policy’s total, blended expected rate of return seeks to meet or exceed
the assumed actuarial rate of return.
Discount Rate – The discount rate used to measure the total pension liability in the January 1,
2016 actuarial valuation report was 8.0%. The projection of cash flows used to determine the
discount rate assumed plan member contributions were made at the current contribution rate and
that employer contributions will be made at rates equal to the actuarially-determined contribution
rates and the member rate. Based on those assumptions, the System’s fiduciary net position was
projected to be available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity Analysis – The following presents the Town’s proportionate share of the net pension
liability calculated using the discount rate of 8.0% as well as the Town’s proportionate share of
the net pension liability using a discount rate that is one percentage point lower (7.0%) or one
percentage point higher (9.0%) than the current rate (dollar amounts are in thousands):
Current
1% Decrease Discount 1% Increase
(7.0%) (8.0%) (9.0%)
Town’s proportionate share of
the net pension liability $ 52,124 $ 41,562 $ 32,547
Town of Canton, Massachusetts Page 70 of 123 Comprehensive Annual Financial ReportSource page 139
B. Massachusetts Teachers’ Retirement System
Teachers and certain administrative employees of the School Department participate in the
Massachusetts Teachers’ Retirement System (“MTRS”), a cost-sharing multiple employer
defined benefit pension plan. The MTRS is managed by the Commonwealth on behalf of
municipal teachers and municipal teacher retirees. Like the System, MTRS was established
under Chapter 32 of Massachusetts General Laws. The Commonwealth’s legislature has the
authority to amend or modify the MTRS’s funding policies.
The Commonwealth is a nonemployer contributor to the MTRS and is legally responsible by
statute for all actuarially determined employer contributions and future benefit requirements of
the MTRS. Therefore, the Town is considered to be in a special funding situation as defined by
GASB Statement No. 68, Accounting and Financial Reporting for Pensions.
For the year ended June 30, 2016, the Commonwealth contributed $3,712,983 to the MTRS on
behalf of the Town. The Town’s proportionate share of the collective MTRS net pension liability
at this reporting date was 0.36333%, which was based on the actual, actuarially determined
contribution made by the Commonwealth on behalf of the Town as a percentage of the total
annual contribution made by the Commonwealth on behalf of all employers.
The table below presents the Town’s proportionate share of the following:
Paid (or assumed)
Commonwealth On Behalf Town
Portion of the Town Portion
Net pension liability $ 74,445,117 $ (74,445,117) $ —
Pension expense 6,038,162 (6,038,162) —
The Town has recognized intergovernmental revenue and pension expense of $6,038,162
associated with this arrangement.
C. Other Postemployment Benefits (OPEB)
Plan Description – The Town administers a single-employer defined benefit healthcare plan (the
“Plan”). The Plan provides health and life insurance benefits to current and future retirees, their
dependents and beneficiaries in accordance with Massachusetts General Law Chapter 32B.
Specific benefit provisions and contribution rates are established by collective bargaining
agreements, state law, and Town ordinance. All benefits are provided through the Town’s self-
funded insurance program described previously. The Plan does not issue a stand–alone financial
report. The number of participants in the Plan consists of 671 active employees and 453 retired
employees for a total of 1,124.
Funding Policy – The contribution requirements of Plan members and the Town are established
and may be amended by the Town, through negotiation with the Town employee unions.
Retirees contribute 25 percent of the calculated contribution through pension benefit deductions.
The remainder of the cost is funded by the Town. The Town currently contributes enough money
to the Plan to satisfy current obligations on a pay-as-you-go basis. The costs of administering the
Plan are paid by the Town.
Town of Canton, Massachusetts Page 71 of 123 Comprehensive Annual Financial ReportSource page 140
Annual OPEB Cost and Net OPEB Obligation – The Town’s annual OPEB cost is calculated
based on the annual required contribution “ARC” of the employer, an actuarially determined
amount that is calculated in accordance with GASB Statement 45. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize
any unfunded liabilities over a period not to exceed thirty years.
The following table reflects the activity regarding the Town’s OPEB obligation:
Annual required contribution (ARC) $ 8,349,722
Interest on net OPEB obligation 1,863,847
Adjustment to ARC (5,051,744)
Annual OPEB cost 5,161,825
Contributions made $ (3,843,040)
Increase in net OPEB obligation 1,318,785
Net OPEB obligation at beginning of year 44,377,306
Net OPEB obligation at end of year $ 45,696,091
Trend information regarding annual OPEB cost, the percentage of the annual OPEB cost
contributed and the net OPEB obligation is as follows:
Annual OPEB Percentage of
Fiscal Year Cost AOPEBC Net OPEB
Ending (AOPEBC) Contributed Obligation
June 30, 2016 $ 5,161,825* 74% $ 45,696,091
June 30, 2015 $ 4,975,024 87% $ 44,377,306
June 30, 2014 $ 12,935,961 40% $ 43,748,569
* Reflected in the Statement of Activities as follows:
The AOPEBC at June 30, 2016 was charged to the following functional programs: General
Government $211,754; Public Safety $1,035,509; Education $3,365,235; Public Works $226,256;
Health and Human Services $65,924; Culture and Recreation $154,643; Water $62,843; Sewer
$28,571; and Rink $11,090.
Funding Status and Funding Progress – The funded status of the Plan at June 30, 2016, based on
the most recent actuarial valuation performed as of July 1, 2014, was as follows (in millions):
Actuarial
Accrued
Liability UAAL as a
Actuarial (AAL) Entry Unfunded Percentage
Value of Age Normal AAL Funded Covered of Covered
Assets Cost (UAAL) Ratio Payroll Payroll
(A) (B) (B – A) (A/B) (C) ((B-A)/C)
$ 0.6 $ 90.2 $ 89.6 0.64% N/A N/A
Town of Canton, Massachusetts Page 72 of 123 Comprehensive Annual Financial ReportSource page 141
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events into the future. Amounts determined
regarding the funded status of the Plan and the ARC of the employer are subject to continual
revision as estimates are compared to actual results and past expectations. The schedules of
funding progress, presented as required supplementary information (RSI) following the notes to
the financial statements, present multi-year trend information about whether the actuarial values
of plan assets are increasing or decreasing over time relative to the AAL for benefits.
Methods and Assumptions – Projections of benefits for financial reporting purposes are based on
the substantive Plan 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 the Plan members to
that point. The actuarial methods and assumptions used include techniques that are designed to
reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations. The significant methods and
assumptions as of the latest valuation are as follows:
Valuation date: July 1, 2014
Actuarial cost method Projected Unit Credit
Amortization method Level dollar
Remaining amortization period: 30 years as of July 1, 2014 (open)
Interest discount rate: 4.2 percent
Inflation rate: Not disclosed by actuary
Healthcare/Medical cost trend rate: 9 percent grading down to 5 percent in year 2025 and
thereafter
D. Risk Financing
The Town is exposed to various risks of loss related to torts: theft of, damage to and destruction
of assets; errors and omissions; and natural disasters for which the Town carries commercial
insurance. The amount of claim settlements has not exceeded insurance coverage in any of the
previous three years.
Group Health Insurance Plan – The Town maintains a "reinsured cost reimbursement program"
which covers the group health and dental insurance requirements of the Town employees. The
Plan is essentially a self-insurance program and employee claims in excess of $150,000 are
reinsured by the Plan. The Plan allows employees to participate in a Health Maintenance
Organization (HMO) or Preferred Provider Organization (PPO). The Town reimburses the costs
of the HMO and PPO 75 percent. The Town accrues an amount representing claims incurred but
not reported (IBNR), which is based on historical claims paid averages for the twelve months
prior to fiscal year end. At June 30, 2016, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $740,988. This liability is the best estimate based on
available information. In the fund-wide financial statements, the Town reports the activities of
the Group Insurance Health Plan in the Internal Service Fund where revenues are recorded when
earned and expenses are recorded when the liability is incurred. Changes in the reported liability
since July 1, 2014, are as follows:
Town of Canton, Massachusetts Page 73 of 123 Comprehensive Annual Financial ReportSource page 142
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2016 $ 496,023 $ 12,792,812 $(12,547,090) $ 740,988 $ 740,988
Fiscal Year 2015 938,586 12,846,357 (13,289,677) 496,023 496,023
Workers’ Compensation – The Town is also self-insured for their workers’ compensation
activities which are accounted for in the Internal Service Fund. Workers’ compensation claims
are administered by a third-party and are funded on a pay-as-you-go basis from annual
appropriations. The Town is premium based for all claims after July 1, 2008. The Town
purchases individual stop loss insurance in excess of the coverage provided in the amount of
$300,000. The estimated future workers’ compensation liability is not material at June 30, 2016,
and is therefore not reported.
E. Commitments
The Town has entered or is planning to enter into contracts for various projects for which it
has authorized approximately $18.0 million in debt.
F. Contingencies
The Town is party to other certain legal claims, which are subject to many uncertainties, and the
outcome of individual litigation matters in these situations cannot be reasonably estimated.
Although the amount of liability, if any, in these situations at June 30, 2016, cannot be
ascertained, management believes that the resulting liability, if any, should not materially affect
the basic financial statements of the Town at June 30, 2016. Other amounts received or
receivable from grantor agencies are subject to audit and adjustment by grantor agencies,
principally the federal and state governments. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the Town
expects such amounts, if any, to be immaterial.
The Town is subject to certain Federal arbitrage laws in accordance with long-term borrowing
agreements. Failure to comply with the rules could result in the payment of penalties. The Town
does not believe it has failed to comply with any of these agreements.
G. Landfill Closure and Post-Closure Care Costs
The Town’s landfill is closed and a final cover has been installed in accordance with Federal and
State laws and regulations. Those laws and regulations also require the Town to perform certain
maintenance and monitoring functions (“post-closure care”) at the site for 30 years after the
landfill cover is installed. In accordance with generally accepted accounting principles, the
estimated remaining cost of monitoring; $52,000 has been recorded as a governmental activities
liability; actual costs may be higher due to inflation, changes in technology, or changes in
regulations.
Town of Canton, Massachusetts Page 74 of 123 Comprehensive Annual Financial ReportSource page 143
H. Implementation of GASB pronouncements
Current Year Implementations –
In February 2015, the GASB issued GASB Statement No. 72, Fair Value Measurement and
Application. GASB 72 addressed accounting and financial reporting issues relating to fair value
measurements by providing guidance for determining a fair value measurement for financial
reporting purposes. The provisions of this Statement became effective for the Town in fiscal year
2016 and did not have a material effect on its financial statements.
In June 2015, the GASB issued GASB Statement No. 73, Accounting and Financial Reporting
for Pension and Related Assets That Are Not within the Scope of GASB Statement No. 68 and
Amendments to Certain Provision of GASB Statement No. 67 and No. 68. The objective of
GASB 73 was to improve the usefulness of information about pensions included in the general
purpose external financial reports of state and local governments for making decisions and
assessing accountability. This Statement established requirements for defined benefit pensions
that are not within the scope of Statement 68, as well as for the assets accumulated for purposes
of providing those pensions. In addition, it established requirements for defined contribution
pensions that are not within the scope of Statement 68. The provisions of this Statement were
effective for financial reporting periods beginning after June 15, 2015 (fiscal year 2016) – except
those provisions that address employers and governmental nonemployer contributing entities for
pensions that are not within the scope of GASB Statement No. 68, which are effective for fiscal
years beginning after June 15, 2016 (fiscal year 2017). The provisions of this Statement became
effective for the Town in fiscal year 2016 and did not have a material effect on its financial
statements.
In June 2015, the GASB issued GASB Statement No. 76, The Hierarchy of Generally Accepted
Accounting Principles for State and Local Governments. The objective of GASB 76 was to
identify, in the context of the current governmental financial reporting environment, the hierarchy
of generally accepted principles, or GAAP. This Statement reduced the GAAP hierarchy to two
categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative
literature in the event that the accounting treatment for a transaction or other event is not specified
within a source of authoritative GAAP. The provisions of this Statement became effective in
fiscal year 2016 and did not have a material effect on the Town’s financial statements.
In December 2015, the GASB issued GASB Statement No. 79, Certain External Investment
Pools and Pool Participants. GASB 79 established criteria for which an external investment pool
may qualify to measure its investment value at amortized cost versus fair value. The provisions
of this Statement became effective in fiscal year 2016 and did not have a material effect on the
Town’s financial statements.
Future Implementations –
In June 2015, the GASB issued GASB Statement No. 74, Financial Reporting for
Postemployment Benefit Plans Other than Pension Plans. GASB 74’s objective is to improve the
usefulness of information about postemployment benefits other than pensions included in the
general purpose external financial reports of state and local governmental OPEB plans for making
decisions and assessing accountability. The provisions of this Statement are effective for
financial reporting periods beginning after June 15, 2016 (fiscal year 2017). The Town is
currently evaluating whether adoption will have a material impact on the financial statements.
Town of Canton, Massachusetts Page 75 of 123 Comprehensive Annual Financial ReportSource page 144
In June 2015, the GASB issued GASB Statement No. 75, Accounting and Financial Reporting
for Postemployment Benefits Other Than Pension Plans. GASB 75 establishes new accounting
and financial reporting requirements for governments whose employees are provided with OPEB,
as well as for certain nonemployer governments that have a legal obligation to provide financial
support for OPEB provided to the employees of other entities. The provisions of this Statement
are effective for financial reporting periods beginning after June 15, 2017 (fiscal year 2018). The
Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In August 2015, the GASB issued GASB Statement No. 77, Tax Abatement Disclosures. GASB
77 requires the disclosure of the terms of certain tax abatement agreements entered into by a
government with individuals or entities. The provisions of this Statement are effective for
financial reporting periods beginning after June 15, 2016 (fiscal year 2017), although early
adoption is encouraged. The Town is currently evaluating whether adoption will have a material
impact on the financial statements.
In December 2015, the GASB issued GASB Statement No. 78, Pensions Provided through
Certain Multiple-Employer Defined Benefit Pension Plans. The provisions of GASB 78 are
applicable to certain government pension plans that (i) are not administered as a trust by a state or
local governmental pension plan, (ii) are shared between governmental and nongovernmental
employees, and (iii) have not predominant state of local governmental employer. The provisions
of this Statement are effective for financial reporting periods beginning after June 15, 2016 (fiscal
year 2017), although early adoption is encouraged. This Statement is not expected to have a
material effect on the Town’s financial statements.
In January 2016, the GASB issued GASB Statement No. 80, Blending Requirements for Certain
Component Units. The provisions of GASB 80 apply to component units that are organized as
not-for-profit corporations in which the primary government is the sole corporate member. Such
component units should be included in the reporting entity financial statements using the blending
method. The provisions of this Statement are effective for financial reporting periods beginning
after June 15, 2016 (fiscal year 2017), although early adoption is encouraged. The Town is
currently evaluating whether adoption will have a material impact on the financial statements.
In March 2016, the GASB issued GASB Statement No. 81, Irrevocable Split-Interest
Agreements. The objective of the Statement is to improve accounting and financial reporting for
irrevocable split-interest agreements by providing recognition and measurement guidance for
situations in which a government is a beneficiary of the agreement. The provisions of this
Statement are effective for financial reporting periods beginning after December 15, 2016 (fiscal
year 2018) and should be applied retroactively. The Town is currently evaluating whether
adoption will have a material impact on the financial statements.
In March 2016, the GASB issued GASB Statement No. 82, Pension Issues – an amendment of
GASB Statements No. 67, No. 68, and No. 73. The objective of GASB 73 was to address issued
raised with respect to previously issued statements related to pensions. Specifically, the
Statement addressed issues regarding (i) the presentation of payroll-related measures in required
supplementary information, (ii) the selection of assumptions and the treatment of deviations from
the guidance in an Actuarial Standard of Practice for financial reporting and (iii) the classification
of payments made by employers to satisfy employee (plan member) contributions requirements.
The requirements for this Statement are effective for reporting periods beginning after June 15,
2016 (fiscal year 2017), except for the requirements of this Statement for the selection of
assumptions in a circumstance in which an employer’s pension liability is measured as of a date
Town of Canton, Massachusetts Page 76 of 123 Comprehensive Annual Financial ReportSource page 145
other than the employer’s most recent fiscal year end. In that circumstance, the requirements for
the selection of assumptions are effective for that employer in the first reporting period in which
the measurement date of the pension liability is on or after June 15, 2017; earlier application is
encouraged. The Town is currently evaluating whether adoption will have a material impact on
the financial statements.
Town of Canton, Massachusetts Page 77 of 123 Comprehensive Annual Financial ReportSource page 146
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Required Supplementary Information Town of Canton, Massachusetts Page 79 of 123 Comprehensive Annual Financial Report
Source page 148
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
(dollar amounts are in thousands)
Year Ended December 31,
2015 2014
Town's proportion of the net pension
liability (asset) 7.65% 7.56%
Town's proportionate share of the net
pension liability (asset) $ 41,562 $ 39,227
Town's covered-employee payroll $ 20,288 $ 19,140
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered-employee payroll 204.9% 204.9%
Plan fiduciary net position as a percentage
of the total pension liability 58.6% 60.1%
SCHEDULE OF THE TOWN'S CONTRIBUTIONS TO PENSION PLAN
(dollar amounts are in thousands)
Year Ended December 31,
2015 2014
Actuarially determined contribution $ 3,991 $ 3,571
Contributions in relation to the
actuarially determined contribution 3,991 3,571
Contribution deficiency (excess) $ - $ -
Town's covered-employee payroll $ 20,288 $ 19,140
Contributions as a percentage of
covered-employee payroll 19.7% 18.7%
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 80 of 123 Comprehensive Annual Financial ReportSource page 149
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2016
SCHEDULE OF THE COMMONWEALTH'S COLLECTIVE SHARE OF THE NET PENSION LIABILITY
MASSACHUSETTS TEACHER'S RETIREMENT SYSTEM
(dollar amounts are in thousands)
Year Ended June 30,
2015 2014
Commonwealth's proportion of the
collective net pension liability (asset) 100.0% 100.0%
Town's proportion of the collective
net pension liability (asset) 0.0% 0.0%
Commonwealth's proportionate share of
the net pension liability (asset) $ 20,489,643 $ 15,896,354
Commonwealth's actuarially
determined contribution $ 1,021,930 $ 937,379
Contributions to MTRS are the responsibility of the Commonwealth of Massachusetts.
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 81 of 123 Comprehensive Annual Financial ReportSource page 150
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2016
SCHEDULE OF FUNDING PROGRESS
Other Postemployment Benefits
UAAL as a
Actuarial Actuarial Actuarial Unfunded Percentage
Valuation Value of Accrued AAL Funded Covered of Covered
Date Assets Liability (AAL) (UAAL) Ratio Payroll Payroll
(a) (b) (b-a) (a/b) (c) ((b-a)/c)
7/1/2014 $ 580,000 $ 90,203,731 89,623,731 0.64% N/A N/A
1/1/2013 100,000 142,752,366 142,652,366 0.07% 36,479,000 391.1%
1/1/2011 - 130,885,254 130,885,254 0% 34,416,000 380.3%
1/1/2009 - 138,978,486 138,978,486 0% 32,236,000 431.1%
SCHEDULE OF CONTRIBUTION FUNDING
Other Postemployment Benefits
Annual
Year Ended OPEB Actual Percentage
June 30, Cost Contributions Contributed
2016 $ 5,161,825 $ 3,843,040 74%
2015 4,975,024 4,346,287 87%
2014 12,935,961 5,179,872 40%
2013 12,195,572 4,526,092 37%
2012 12,639,000 4,457,000 35%
2011 11,610,000 4,262,000 37%
N/A - Information not currently available.
See accompanying independent auditors' report.
Town of Canton, Massachusetts Page 82 of 123 Comprehensive Annual Financial ReportSource page 151
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 66,195,133 $ 66,195,133 $ 67,267,824 67,267,824 1,072,691
Tax title - - 147,456 147,456 147,456
Payments in lieu of taxes 225,405 225,405 225,405 225,405 -
Motor vehicle excise 3,360,000 3,360,000 4,555,904 4,555,904 1,195,904
Meals taxes 300,000 300,000 349,710 349,710 49,710
Room occupancy excise 240,000 240,000 251,517 251,517 11,517
70,320,538 70,320,538 72,797,816 - 72,797,816 2,477,278
Intergovernmental:
State aid - chapter 70 5,126,669 5,126,669 5,126,669 5,126,669 -
State aid - charter school 5,358 5,358 3,969 3,969 (1,389)
State aid - unrestricted 1,976,870 1,976,870 1,976,870 1,976,870 -
State aid - veterans 143,237 143,237 143,180 143,180 (57)
State aid - exemptions 146,027 146,027 146,973 146,973 946
State aid - state owned land 37,903 37,903 37,903 37,903 -
State aid - other 100,000 100,000 261,549 261,549 161,549
MSBA school construction reimbursement 456,305 456,305 456,305 456,305 -
7,992,369 7,992,369 8,153,418 - 8,153,418 161,049
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 41,400 - 41,400 1,400
Public safety detail fees 30,000 30,000 41,874 - 41,874 11,874
Other departmental fees 80,000 80,000 116,549 - 116,549 36,549
Rental of municipal property 200,000 200,000 193,689 - 193,689 (6,311)
Conservation department revenues 32,000 32,000 77,276 - 77,276 45,276
Solar revenues 315,188 315,188 556,206 - 556,206 241,018
Other departmental revenues 70,000 70,000 212,876 - 212,876 142,876
767,188 767,188 1,239,870 - 1,239,870 472,682
Licenses and permits:
Alcohol licenses 70,000 70,000 77,035 - 77,035 7,035
Other licenses 80,000 80,000 84,018 - 84,018 4,018
Building permits 465,000 465,000 677,450 - 677,450 212,450
Other permits 135,000 135,000 196,567 - 196,567 61,567
750,000 750,000 1,035,070 - 1,035,070 285,070
Fines and forfeitures:
Motor vehicle fines 85,000 85,000 111,001 - 111,001 26,001
Other fines 15,000 15,000 8,539 - 8,539 (6,461)
100,000 100,000 119,540 - 119,540 19,540
Penalties and interest on taxes 300,000 300,000 254,164 - 254,164 (45,836)
Interest and investment income 80,000 80,000 96,624 - 96,624 16,624
Total Revenues 80,310,095 80,310,095 83,696,502 - 83,696,502 3,386,407
Town of Canton, Massachusetts Page 83 of 123 Comprehensive Annual Financial ReportSource page 152
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,253,070 1,086,031 978,186 94,269 1,072,455 13,576
Executive Branch Articles 59,329 50,000 48,070 - 48,070 1,930
Commitees and Commissions 26,049 26,049 12,528 - 12,528 13,521
Reserve Fund 500,000 142,000 - - - 142,000
Finance Department 1,004,333 1,014,449 912,690 82,339 995,029 19,420
Fianance Department Articles 82,428 82,428 64,907 17,516 82,423 5
Assessors 285,608 312,520 284,397 25,000 309,397 3,123
Town Clerk & Elections 223,038 224,174 224,071 - 224,071 103
Town Clerk & Elections Articles 42,500 42,500 4,544 37,956 42,500 -
Conservation Commission 125,688 127,971 121,461 562 122,023 5,948
Planning Board 63,117 63,117 52,845 3,033 55,878 7,239
Town Insurance 998,916 1,024,916 1,024,801 - 1,024,801 115
Total General Government 4,664,076 4,196,155 3,728,500 260,675 3,989,175 206,980
Public Safety
Fire Department 5,081,765 5,196,811 5,132,490 62,070 5,194,560 2,251
Fire Department Articles 326,000 326,000 325,104 - 325,104 896
Police Department 4,452,436 4,508,727 4,402,127 105,046 4,507,173 1,554
Police Department Articles 253,999 253,999 147,870 105,475 253,345 654
Building & Zoning 343,770 347,958 319,977 2,990 322,967 24,991
Building & Zoning Articles 25,000 25,000 24,792 - 24,792 208
Total Public Safety 10,482,970 10,658,495 10,352,360 275,581 10,627,941 30,554
Education:
School 36,129,577 36,129,577 36,108,374 17,309 36,125,683 3,894
School Articles 600,703 665,703 545,654 107,648 653,302 12,401
Blue Hill Regional 1,120,445 1,120,445 1,117,954 - 1,117,954 2,491
Norfolk County Agricultural HS 10,000 10,000 9,340 - 9,340 660
Total Education 37,860,725 37,925,725 37,781,322 124,957 37,906,279 19,446
Public Works:
Public Works 2,655,027 2,663,598 2,565,448 97,124 2,662,572 1,026
Public Works Articles 332,144 697,473 152,584 542,279 694,863 2,610
Street Lighting 144,900 144,900 141,082 570 141,652 3,248
Snow & Ice 555,240 723,240 721,663 767 722,430 810
Trash Collection 1,778,860 1,814,860 1,814,787 - 1,814,787 73
Total Public Works 5,466,171 6,044,071 5,395,564 640,740 6,036,304 7,767
Health and Human Services:
Health Department 339,403 345,076 344,884 - 344,884 192
Council on Aging 349,754 352,972 322,381 9,603 331,984 20,988
Council on Aging Articles 63,000 63,000 58,274 - 58,274 4,726
Veteran's Services 261,342 278,498 277,648 - 277,648 850
Total Health and Human Services 1,013,499 1,039,546 1,003,187 9,603 1,012,790 26,756
(continued)
Town of Canton, Massachusetts Page 84 of 123 Comprehensive Annual Financial ReportSource page 153
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2016
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 559,609 637,123 637,051 - 637,051 72
Recreation & Playground Articles 75,983 105,984 60,530 45,454 105,984 -
Public Library 1,189,999 1,191,933 1,166,188 12,760 1,178,948 12,985
Public Library Articles 84,159 84,159 53,765 30,394 84,159 -
Total Culture and Recreation 1,909,750 2,019,199 1,917,534 88,608 2,006,142 13,057
Pension Benefits: 4,024,357 4,024,357 3,994,324 - 3,994,324 30,033
Employee Benefits:
Unemployment Compensation 100,000 100,000 100,000 - 100,000 -
Employer Share- Health 10,932,738 10,932,738 10,922,842 1,500 10,924,342 8,396
Employer Share- Life 60,000 60,000 58,637 - 58,637 1,363
Employer Share- OPEB 750,000 750,000 750,000 - 750,000 -
Total Employee Benefits 11,842,738 11,842,738 11,831,479 1,500 11,832,979 9,759
State and County Charges: 954,663 954,663 927,338 - 927,338 27,325
Debt Service: 5,033,817 5,033,817 4,992,666 - 4,992,666 41,151
Total Expenditures 83,252,766 83,738,766 81,924,274 1,401,664 83,325,938 412,828
Other Financing Sources (Uses)
Transfers in 2,267,931 2,617,931 2,661,690 2,661,690 43,759
Transfers out (482,786) (1,432,786) (1,432,786) (1,432,786) -
Total Other Financing Sources (Uses) 1,785,145 1,185,145 1,228,904 $ 1,228,904 43,759
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (1,157,526) (2,243,526) $ 3,001,132 $ 3,842,994
Other Budgetary Items
Use of unassigned fund balance $ 505,000 $ 1,591,000
Prior year encumbrances 652,654 652,654
Other amounts (128) (128)
Total Other Budgetary Items 1,157,526 2,243,526
Net budget and actual $ - $ -
(Concluded)
The notes to the financial statements are an integral part of this statement.
The notes to the required supplementary information are and integral part of this statement.
Town of Canton, Massachusetts Page 85 of 123 Comprehensive Annual Financial ReportSource page 154
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2016
I. Budgetary Basis of Accounting
Budgetary Information – An annual budget is legally adopted for the General Fund and the Enterprise
Fund. The budget is recommended by the Finance Committee and approved by Town Meeting at the
Town’s annual meeting in May. Changes subsequent to the approved Town Meeting budget require
majority Town Meeting approval at a Special Town Meeting. Expenditures may not legally exceed
appropriations at the department level. Department heads may transfer, without Town Meeting
approval, appropriation balances from one account to another within their department or budget, and
within the categories of salaries and expenses. At the close of each fiscal year, unencumbered
appropriation balances lapse and revert to unassigned fund balance.
The Town adopts an annual budget for the general fund in conformity with the guidelines described
above. During fiscal year 2016, Town Meeting approved various supplemental budgetary
appropriations which resulted in a net increase of approximately $1,400,000 from the original voted
budget. These appropriations were utilized for streetlights ($356,000), culture and recreation
($105,000), assessing ($25,000), water capital funding ($350,000) and increased stabilization reserves
($600,000).
The Town Accountant has the responsibility to ensure that budgetary control is maintained in the
manner in which the appropriations were voted by Town Meeting. Budgetary control is exercised
through the Town’s accounting system.
Budgetary-to-GAAP Reconciliation – The Town’s general fund is prepared on a basis of accounting
other than GAAP. A reconciliation of the budgetary-basis to GAAP-basis results for the General Fund
for the fiscal year ended June 30, 2016, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 83,696,502
Stabilization revenue $ - $ 71,384 71,384
Change in accruing tax revenues 59,394 - 59,394
Change in recording tax refunds payable (625,000) - (625,000)
On behalf payments 6,038,162 - 6,038,162
Revenues on a GAAP basis $ 5,472,556 $ 71,384 $ 89,240,442
Expenditures on a budgetary basis $ 81,924,274
Reclass of enterprise indirects cost to expenditures $ (1,013,836) $ - (1,013,836)
On behalf payments 6,038,162 - 6,038,162
Expenditures on a GAAP basis $ 5,024,326 $ - $ 86,948,600
Other financing sources (uses) on a budgetary basis $ 1,228,904
Reclass of enterprise indirects cost to expenditures $ (1,013,836) $ - (1,013,836)
Stabilization transfers - 600,000 600,000
Other financing sources (uses) on a GAAP basis $ (1,013,836) $ 600,000 $ 815,068
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Nonmajor Governmental Funds
Narrative
Special Revenue Funds –
Special revenue funds are used to account for certain revenue generating activities that are legally and/or
programmatically restricted to expenditures for a specific purpose. From the Town’s financial ledgers,
these activities can be distinctly categorized into the following groupings:
School Lunch – This segregated revolving fund accounts for the activities of the child nutrition programs;
amounts collected from services include federal and state meal reimbursements and meal charges.
Private Grants – This fund accounts for grant funds received from private organizations that are to be
used to fund various governmental programs.
Town Revolving – This fund accounts for the non-school related activity within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes.
School Revolving – This fund accounts for educational-based activities within revolving funds established
in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71.
Recreation – This fund accounts for self-supporting recreation programs and activities.
Ambulance – This fund accounts for the fees generated by the operations of the fire department’s
ambulance service that are used to fund specific operating costs of the department.
Community Preservation – This fund accounts for assets that are restricted by state law for the purposes
of acquiring or developing open space and recreational facilities, historic resources and affordable
housing.
Town Grants – This fund accounts for non-school grant programs received either directly from federal
and state agencies or indirectly through pass-through entities.
School Grants – This fund accounts for educational-based grant programs received either directly from
federal and state agencies or indirectly through pass-through entities.
Roadway Improvements – This fund accounts for certain roadway improvement projects which are fully
reimbursed by the Commonwealth of Massachusetts.
Other Departmental – This fund accounts for activity of donated funds, public safety details, and other
restricted funds used to support governmental programs.
Town of Canton, Massachusetts Page 89 of 123 Comprehensive Annual Financial ReportSource page 158
Permanent Funds –
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support governmental programs.
Cemetery Trust Funds – This fund accounts for contributions earmarked for the perpetual care and
maintenance of cemetery facilities and property.
Library Trust Funds – This fund accounts for contributions earmarked for the support of the Town’s
library.
Other Municipal Trust Funds – This fund accounts for all contributions including: gifts, donations and
bequests for which only earnings on the original trust corpus may be expended to benefit government
approved programs, other than those associated with cemetery and library activities.
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2016
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 347,755 $ 763,162 $ 541,354 $ 1,593,272 $ 233,227
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 24,908 - - - -
Total Assets $ 372,663 $ 763,162 $ 541,354 $ 1,593,272 $ 233,227
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 513 $ 3,114 $ 10,000 $ 12,125 $ 18,560
Accrued payroll and withholdings 52,927 - 339 23,924 14,223
Due to other funds - - - - -
Total Liabilities 53,440 3,114 10,339 36,049 32,783
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 319,223 760,048 531,015 1,557,223 200,444
Unassigned - - - - -
Total Fund Balances 319,223 760,048 531,015 1,557,223 200,444
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 372,663 $ 763,162 $ 541,354 $ 1,593,272 $ 233,227
Town of Canton, Massachusetts Page 92 of 123 Comprehensive Annual Financial Report