Canton, Massachusetts · Saved source text
Fiscal Year 2019 Comprehensive Annual Financial Report
Saved text from 138 source pages. Transcription and OCR may contain errors; verify figures and wording against the original. Retrieved 2026-10-15.
Source page 81
The target allocation and best estimates of arithmetic real rates of return were as reflected in the
following table:
Expected
Target Investment Rate
Asset Class Allocation of Return
Domestic Equity - Large Cap 23.33% 4.00%
Domestic Equity - Small/Mid Cap 11.67% 6.00%
Interntional Equity - Developed Market 13.33% 4.50%
Interntional Equity - Emerging Market 6.67% 7.00%
Domestic Fixed Income 20.00% 2.00%
International Fixed Income 5.00% 3.00%
Alternatives 20.00% 6.50%
Cash 0.00% 0.00%
100.00%
Real rate of return 4.55%
Inflation assumption 2.75%
Total nominal rate of return 7.30%
Investment expense -0.25%
Net investment return 7.05%
Sensitivity Analyses – The following presents the Town’s net OPEB liability as well as what the
Town’s net OPEB liability would be if it were calculated using a discount rate that is 1% lower or
1% higher than the current discount rate as well as if the healthcare cost trend rates are 1% lower
or higher than the current healthcare cost trend rates:
Discount Rate
1% Decrease (4.75%) Trend Rate (5.75%) 1% Increase (6.75%)
Net OPEB Liability $ 95,718,380 $ 83,468,615 $ 73,702,982
Health Care Rate
1% Decrease (3.5%) Current (4.5%) 1% Increase (5.5%)
Net OPEB Liability $ 72,612,791 $ 83,468,615 $ 96,870,548
Town of Canton, Massachusetts Page 73 of 130 Comprehensive Annual Financial ReportSource page 82
Changes in the Net OPEB Liability – The following table summarizes the changes in the net
OPEB liability for the year ended June 30, 2019:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a) - (b)
Balances at June 30, 2018 $ 90,505,695 $ 2,980,371 $ 87,525,324
Changes for the year:
Service cost 2,040,579 - 2,040,579
Interest 5,463,438 - 5,463,438
Other 4,305,815 1,175,423 3,130,392
Changes of assumptions (3,907,488) - (3,907,488)
Difference between expected
and actual experience (5,996,352) - (5,996,352)
Net investment income - 263,700 (263,700)
Employer contributions - 4,523,578 (4,523,578)
Benefit payments withdrawn from trust - (3,723,578) 3,723,578
Benefit payments (3,723,578) - (3,723,578)
Net changes (1,817,586) 2,239,123 (4,056,709)
Balances at June 30, 2019 $ 88,688,109 $ 5,219,494 $ 83,468,615
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB – For the year
ended June 30, 2019, the Town recognized OPEB expense of $5,369,556. Deferred outflows of
resources and deferred inflows of resources related to OPEB at June 30, 2019 were reported as
follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual earnings $ 21,779 $ -
Changes of assumptions - 3,190,518
Differences between expected and actual experience - 4,896,104
$ 21,779 $ 8,086,622
Town of Canton, Massachusetts Page 74 of 130 Comprehensive Annual Financial ReportSource page 83
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense (benefit) as follows:
June 30
2020 $ (1,813,758)
2021 (1,813,758)
2022 (1,813,758)
2023 (1,805,819)
2024 (817,750)
$ (8,064,843)
GASB Statement No. 74
OPEB Plan disclosures that impact the Town’s net OPEB liability using a measurement date of
June 30, 2019 are summarized in this section except disclosures under GASB 74 that are identical
to GASB 75 are not repeated.
Investment Custody – In accordance with Massachusetts General Laws, the Town Treasurer is the
custodian of the OPEB Plan and since the Town has not designated a Board of Trustees, the
Town Treasurer is also the Trustee and as such is responsible for the general supervision of the
management, investment and reinvestment of the OPEB Plan assets. OPEB Plan assets may be
invested and reinvested by the custodian consistent with the prudent investor rule established in
Chapter 203C and may, with the approval of the State Retiree Benefits Trust Fund Board of
Trustees, be invested in the State Retiree Benefits Trust Fund established in Section 24 of Chapter
32A. OPEB Plan assets must be segregated from other funds and not be subject to the claims of
any general creditor of the Town.
Investment Policy – The OPEB Plan has a formal investment policy to invest in Domestic Equity,
Domestic Fixed Income, International Equity, International Fixed Income, Alternative
Investments and Cash Equivalents with target allocations highlighted previously under the
caption long-term expected rate of return.
Investment Rate of Return – For the year ended June 30, 2019 the annual money-weighted rate of
return on investments, net of investment expense, was 5.55%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
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
Town of Canton, Massachusetts Page 75 of 130 Comprehensive Annual Financial ReportSource page 84
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, 2019, the amount of the liability for incurred but not reported
(IBNR) health insurance claims totaled $884,633. 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, 2017, are as follows:
Balance at Claims and
Beginning Changes in Claims Balance at Current
of Year Estimates Payments End of Year Portion
Fiscal Year 2019 $ 878,641 $ 17,608,427 $(17,602,435) $ 884,633 $ 884,633
Fiscal Year 2018 878,641 12,690,057 (12,690,057) 878,641 878,641
Workers’ Compensation – The Town is also self-insured for their workers’ compensation
activities which are accounted for in the Internal Service Fund. Workers’ compensation claims
are administered by a third-party and are funded on a pay-as-you-go basis from annual
appropriations. The Town is premium based for all claims after July 1, 2009. 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, 2019
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 $27.0 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, 2019, 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, 2019. 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.
Town of Canton, Massachusetts Page 76 of 130 Comprehensive Annual Financial ReportSource page 85
G. Tax Abatements
The Town enters into property tax abatements with local businesses as an incentive for economic
growth, including expansion of current facilities and job opportunities for local residents. The
agreements are commonly referred to as tax increment financing, or TIF, agreements. Under
Massachusetts General Law Chapter 40, Section 59, property owners may be granted property tax
abatements of up to 100% of the value of a tax increment for a maximum term of twenty years
provided the property is located in a TIF zone. TIF zones are approved by the Massachusetts
Economic Assistance Coordinating Council. Furthermore, the Town Meeting must approve all
TIF agreements.
The Town has four such agreements for which the assessed value of the related properties have
been reduced by a percentage between 20 and 70 percent of the incremental assessed value. For
the fiscal year ended June 30, 2019, the Town’s total tax revenues were reduced by
approximately $1.3 million as a result of these tax abatement agreements.
H. Implementation of GASB pronouncements
Current Year Implementations –
In November 2016, the GASB issued GASB Statement No. 83, Certain Asset Retirement
Obligations. The objective of the Statement was to address accounting and financial reporting for
certain asset retirement obligations that have legally enforceable liability associated with the
retirement of a tangible capital asset. The provisions of this Statement became effective in fiscal
year 2019 and did not have a material impact on the Town’s financial statements.
In April 2018, the GASB issued GASB Statement No. 88, Certain Disclosures Related to Debt,
Including Direct Borrowings and Direct Placements. The objective of this Statement was to
improve the information that is disclosed in notes to government financial statements related to
debt, including direct borrowings and direct placements. It also clarified which liabilities
governments should include when disclosing information related to debt. The provisions of this
Statement became effective in fiscal year 2019 and did not have a material impact on the Town’s
financial statements.
Future Implementations –
In January 2017, the GASB issued GASB Statement No. 84, Fiduciary Activities. The objective
of the Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how these activities should be reported. The
provisions of this Statement are effective for financial reporting periods beginning after
December 15, 2018 (fiscal year 2020). The Town is currently evaluating whether adoption will
have a material impact on the financial statements.
In June 2017, the GASB issued GASB Statement No. 87, Leases. This Statement redefines the
manner in which long-term leases are accounted and reported. The provisions of this Statement
are effective for financial reporting periods beginning after December 15, 2019 (fiscal year 2021).
The Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In June 2018, the GASB issued GASB Statement No. 89, Accounting for Interest Cost Incurred
Before the End of a Construction Period. This statement establishes accounting requirements for
Town of Canton, Massachusetts Page 77 of 130 Comprehensive Annual Financial ReportSource page 86
interest costs incurred before the end of a construction period. The provisions of this Statement
are effective for financial reporting periods beginning after December 15, 2019 (fiscal year 2021).
The Town is currently evaluating whether adoption will have a material impact on the financial
statements.
In August 2018, the GASB issued GASB Statement No. 90, Majority Equity Interest – An
Amendment of GASB Statements No. 14 and No. 61. The objective of this Statement is to
improve the consistency and comparability of reporting a government’s majority equity interest in
a legally separate organization and to improve the relevance of financial statement information
for certain component units. The provisions of this Statement are effective for financial reporting
periods beginning after December 15, 2018 (fiscal year 2020). The Town is currently evaluating
whether adoption will have a material impact on the financial statements.
In May 2019, the GASB issued GASB Statement No. 91, Conduit Debt Obligations. The
objective of this Statement is to standardize the reporting of conduit debt obligations by issuers
by clarifying the existing definition of conduit debt obligation, among other matters. The
provisions of this Statement are effective for financial reporting periods beginning after
December 15, 2020 (fiscal year 2022). The Town is currently evaluating whether adoption will
have a material impact on the financial statements.
IV. Prior Period Restatements
As a result of the Town completing its most recent actuarial valuation of its net OPEB liability, a
prior period restatement was required to properly reflect the net OPEB liability as of June 30,
2018.
The impact is illustrated in the table below:
Governmental Business-type
Activities Activities Water Sewer Rink
Prior year as presented $ 6,018,851 $ 28,050,146 $14,410,483 $ 11,253,154 $ 2,386,509
Restate net OPEB liability (6,829,428) (140,314) (94,286) (39,634) (6,394)
As restated $ (810,577) $ 27,909,832 $14,316,197 $ 11,213,520 $ 2,380,115
Town of Canton, Massachusetts Page 78 of 130 Comprehensive Annual Financial ReportSource page 87
Required Supplementary Information Town of Canton, Massachusetts Page 79 of 130 Comprehensive Annual Financial Report
Source page 88
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2019
SCHEDULE OF THE TOWN'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
(dollar amounts are in thousands)
Year Ended June 30,
2019 2018 2017 2016 2015
Town's proportion of the net pension
liability (asset) 7.50% 7.49% 7.65% 7.65% 7.56%
Town's proportionate share of the net
pension liability (asset) $ 48,811 $ 41,437 $ 39,940 $ 41,562 $ 39,227
Town's covered payroll $ 22,792 $ 22,021 $ 20,827 $ 20,288 $ 19,140
Town's proportionate share of the net
pension liability (asset) as a percentage
of its covered payroll 214.2% 188.2% 191.8% 204.9% 204.9%
Plan fiduciary net position as a percentage
of the total pension liability 58.3% 63.5% 61.6% 58.6% 60.1%
SCHEDULE OF THE TOWN'S CONTRIBUTIONS TO PENSION PLAN
(dollar amounts are in thousands)
Year Ended June 30,
2019 2018 2017 2016 2015
Actuarially determined contribution $ 5,246 $ 4,796 $ 4,394 $ 3,991 $ 3,571
Contributions in relation to the
actuarially determined contribution 5,246 4,796 4,394 3,991 3,571
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Town's covered payroll $ 22,391 $ 21,439 $ 20,408 $ 19,831 $ 18,924
Contributions as a percentage of
covered payroll 23.4% 22.4% 21.5% 20.1% 18.9%
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 130 Comprehensive Annual Financial ReportSource page 89
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - PENSIONS
YEAR ENDED JUNE 30, 2019
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,
2018 2017 2016 2015 2014
Commonwealth's proportion of the
collective net pension liability (asset) 100.0% 100.0% 100.0% 100.0% 100.0%
Town's proportion of the collective
net pension liability (asset) 0.0% 0.0% 0.0% 0.0% 0.0%
Commonwealth's proportionate share of
the net pension liability (asset) $ 23,711,289 $ 22,885,391 $ 22,357,928 $ 20,489,643 $ 15,896,354
Commonwealth's actuarially
determined contribution $ 1,314,783 $ 1,235,515 $ 1,124,583 $ 1,021,930 $ 937,379
Contributions to MTRS are the responsibility of the Commonwealth of Massachusetts.
This schedule is presented to illustrate the requirement to show information for ten years.
However, until a full ten-year trend is compiled, information is presented for those years
in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 81 of 130 Comprehensive Annual Financial ReportSource page 90
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2019
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
Year Ended June 30,
2019 2018 2017
Total OPEB liability:
Service cost $ 2,040,579 $ 2,675,741 $ 2,515,860
Interest 5,463,438 4,809,630 4,590,666
Difference between actual and plan experience (5,996,352) - -
Changes of assumptions (3,907,488) - -
Benefit payments (3,723,578) (3,179,556) (3,013,880)
Net change in total OPEB liability (6,123,401) 4,305,815 4,092,646
Total OPEB liability - beginning of year 94,811,510 90,505,695 86,413,049
Total OPEB liability - end of year (a) $ 88,688,109 $ 94,811,510 $ 90,505,695
Plan fiduciary net position:
Contributions - employer $ 4,523,578 $ 4,179,556 $ 3,783,880
Net investment income 263,700 175,423 202,021
Benefit payments (3,723,578) (3,179,556) (3,013,880)
Net change in Plan fiduciary net position 1,063,700 1,175,423 972,021
Plan fiduciary net position - beginning of year 4,155,794 2,980,371 2,008,350
Plan fiduciary net position - end of year (b) $ 5,219,494 $ 4,155,794 $ 2,980,371
Net OPEB liability - end of year (a) - (b) $ 83,468,615 $ 90,655,716 $ 87,525,324
Plan fiduciary net position as a percentage of the total
OPEB liability 5.89% 4.38% 3.29%
Covered payroll $ 46,591,956 $ 45,486,461 $ 44,161,613
Net OPEB liability as a percentage of covered payroll 179.15% 199.30% 198.19%
Note: This schedule is presented to illustrate the requirement to show information for 10 years.
However, until a full 10-year trend is compiled, information is presented for those years
in which information is available.
Note: This schedule is presented using the optional format of combining the required schedules
in paragraph 36a and 36b of GASB 74.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 82 of 130 Comprehensive Annual Financial ReportSource page 91
TOWN OF CANTON, MASSACHUSETTS
REQUIRED SUPPLEMENTARY INFORMATION - OPEB
YEAR ENDED JUNE 30, 2019
SCHEDULE OF CONTRIBUTIONS
Year Ended June 30,
2019 2018 2017
Actuarially-determined contribution $ 7,622,221 $ 8,240,517 $ 7,882,229
Contributions in relation to the actuarially-
determined contribution (4,523,578) (4,179,556) (3,783,880)
Contribution deficiency (excess) $ 3,098,643 $ 4,060,961 $ 4,098,349
Covered payroll $ 46,591,956 $ 45,486,461 $ 44,161,613
Contribution as a percentage of covered payroll 9.71% 9.19% 8.57%
Valuation Date July 1, 2018 July 1, 2016 July 1, 2016
Amortization Period 30 years 30 years 30 years
Investment rate of return 7.05% 6.80% 6.97%
Municipal bond rate 2.79% 3.45% 3.13%
Single equivalent discount rate 5.75% 5.25% 5.25%
Inflation 2.75% 2.75% 2.75%
Healthcare cost trend rates 4.50% 5.00% 5.00%
Salary increases 3.00% 3.00% 3.00%
Actuarial Cost Method Individual Entry Age Normal (for all years presented)
Asset Valuation Method Market Value of Assets as of Reporting Date (for all years presented)
SCHEDULE OF INVESTMENT RETURNS
Year Ended June 30,
2019 2018 2017
Annual money-weighted rate of return, net of
investment expense 5.55% 5.05% 8.23%
Note: These schedules are presented to illustrate the requirement to show information for 10 years. However, until a
full 10-year trend is compiled, information is presented for those years in which information is available.
See accompanying independent auditor's report.
Town of Canton, Massachusetts Page 83 of 130 Comprehensive Annual Financial ReportSource page 92
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Revenues:
Taxes:
Real estate and personal property taxes $ 76,454,654 $ 76,454,654 $ 76,579,699 76,579,699 125,045
Tax title - - 220,536 220,536 220,536
Payments in lieu of taxes 242,736 242,736 242,736 242,736 -
Motor vehicle excise 4,000,000 4,000,000 4,903,303 4,903,303 903,303
Meals taxes 350,000 350,000 391,091 391,091 41,091
Room occupancy excise 200,000 200,000 226,657 226,657 26,657
81,247,390 81,247,390 82,564,022 - 82,564,022 1,316,632
Intergovernmental:
State aid - chapter 70 6,127,065 6,127,065 6,127,065 6,127,065 -
State aid - charter school 61,933 61,933 79,083 79,083 17,150
State aid - unrestricted 2,217,268 2,217,268 2,217,268 2,217,268 -
State aid - veterans 116,443 116,443 115,710 115,710 (733)
State aid - exemptions 134,758 134,758 138,518 138,518 3,760
State aid - state owned land 37,835 37,835 37,835 37,835 -
State aid - other 100,000 100,000 213,409 213,409 113,409
MSBA school construction reimbursement 456,305 456,305 456,305 456,305 -
9,251,607 9,251,607 9,385,193 - 9,385,193 133,586
Departmental fees, charges, and other:
Municipal lien fees 40,000 40,000 36,350 - 36,350 (3,650)
Town clerk fees 30,000 30,000 35,895 - 35,895 5,895
Public safety detail fees 30,000 30,000 62,390 - 62,390 32,390
Other departmental fees 50,000 50,000 50,256 - 50,256 256
Rental of municipal property 200,000 200,000 227,884 - 227,884 27,884
Conservation department revenues 55,000 55,000 48,492 - 48,492 (6,508)
Grave openings and care 30,000 30,000 32,288 - 32,288 2,288
Solar revenues 339,422 339,422 512,303 - 512,303 172,881
Other departmental revenues 65,000 65,000 553,953 - 553,953 488,953
839,422 839,422 1,559,811 - 1,559,811 720,389
Licenses and permits:
Alcohol licenses 70,000 70,000 90,410 - 90,410 20,410
Other licenses 80,000 80,000 71,740 - 71,740 (8,260)
Building permits 740,000 740,000 1,066,041 - 1,066,041 326,041
Other permits 10,000 10,000 29,690 - 29,690 19,690
900,000 900,000 1,257,881 - 1,257,881 357,881
Fines and forfeitures:
Motor vehicle fines 85,000 85,000 79,289 - 79,289 (5,711)
Other fines 15,000 15,000 7,773 - 7,773 (7,227)
100,000 100,000 87,062 - 87,062 (12,938)
Penalties and interest on taxes 300,000 300,000 284,011 - 284,011 (15,989)
Interest and investment income 80,000 80,000 462,953 - 462,953 382,953
Total Revenues 92,718,419 92,718,419 95,600,933 - 95,600,933 2,882,514
Town of Canton, Massachusetts Page 84 of 130 Comprehensive Annual Financial ReportSource page 93
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Expenditures:
Current:
General Government:
Executive Branch 1,249,250 1,134,420 1,122,224 11,978 1,134,202 218
Executive Branch Articles 28,860 28,860 1,863 26,997 28,860 -
Commitees and Commissions 35,203 35,203 18,746 - 18,746 16,457
Reserve Fund 500,000 216,000 - - - 216,000
Finance Department 1,169,331 1,179,987 1,091,285 85,846 1,177,131 2,856
Finance Department Articles 202,675 202,675 199,459 3,178 202,637 38
Assessors 415,376 417,620 304,571 113,000 417,571 49
Town Clerk & Elections 263,983 276,196 275,884 - 275,884 312
Town Clerk & Elections Articles 5,756 5,756 - - - 5,756
Conservation Commission 141,952 144,333 122,732 11,618 134,350 9,983
Conservation Commission Articles 23,435 23,435 - 23,435 23,435 -
Planning Board 68,940 68,940 60,800 2,021 62,821 6,119
Planning Board Articles 141,762 141,762 107,259 34,503 141,762 -
Town Insurance 1,209,715 1,209,715 1,137,649 - 1,137,649 72,066
Total General Government 5,456,238 5,084,902 4,442,472 312,576 4,755,048 329,854
Public Safety
Fire Department 6,123,743 6,195,567 6,147,674 8,308 6,155,982 39,585
Fire Department Articles 155,000 155,000 154,773 - 154,773 227
Police Department 5,111,024 5,175,734 5,138,574 37,100 5,175,674 60
Police Department Articles 237,315 237,315 140,790 96,519 237,309 6
Building & Zoning 384,695 389,245 346,515 - 346,515 42,730
Total Public Safety 12,011,777 12,152,861 11,928,326 141,927 12,070,253 82,608
Education:
School 45,090,474 45,090,474 42,228,189 2,862,285 45,090,474 -
School Articles 955,561 955,561 881,382 74,163 955,545 16
Blue Hill Regional 1,214,066 1,214,066 1,207,788 - 1,207,788 6,278
Norfolk County Agricultural HS 20,000 20,000 13,755 - 13,755 6,245
Total Education 47,280,101 47,280,101 44,331,114 2,936,448 47,267,562 12,539
Public Works:
Public Works 2,989,363 3,043,069 2,841,690 192,890 3,034,580 8,489
Public Works Articles 1,007,215 1,007,215 384,393 621,942 1,006,335 880
Street Lighting 95,966 95,966 86,783 2,982 89,765 6,201
Snow & Ice 600,500 714,500 714,458 - 714,458 42
Trash Collection 2,008,894 2,008,894 1,952,943 2,000 1,954,943 53,951
Total Public Works 6,701,938 6,869,644 5,980,267 819,814 6,800,081 69,563
Health and Human Services:
Health Department 362,737 368,932 350,062 - 350,062 18,870
Council on Aging 392,510 398,479 383,690 10,814 394,504 3,975
Veteran's Services 293,913 295,231 243,682 - 243,682 51,549
Total Health and Human Services 1,049,160 1,062,642 977,434 10,814 988,248 74,394
(continued)
Town of Canton, Massachusetts Page 85 of 130 Comprehensive Annual Financial ReportSource page 94
TOWN OF CANTON, MASSACHUSETTS
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - GENERAL FUND
YEAR ENDED JUNE 30, 2019
Budgeted Amounts Actual Actual Variance
Original Final Budgetary Budgetary Positive
Budget Budget Amounts Encumbrances Adjusted (Negative)
Culture and Recreation:
Recreation & Playground 781,205 783,909 730,546 1,891 732,437 51,472
Recreation & Playground Articles 128,309 163,309 126,889 33,892 160,781 2,528
Public Library 1,318,745 1,319,105 1,304,022 - 1,304,022 15,083
Public Library Articles 92,340 92,340 30,645 61,695 92,340 -
Total Culture and Recreation 2,320,599 2,358,663 2,192,102 97,478 2,289,580 69,083
Pension Benefits: 5,249,494 5,249,494 5,249,461 - 5,249,461 33
Employee Benefits:
Unemployment Compensation 100,000 100,000 100,000 - 100,000 -
Employer Share- Health 12,596,658 12,469,658 12,419,882 8,650 12,428,532 41,126
Employer Share- Life 62,250 62,250 60,202 - 60,202 2,048
Employer Share- OPEB 800,000 800,000 800,000 - 800,000 -
Total Employee Benefits 13,558,908 13,431,908 13,380,084 8,650 13,388,734 43,174
State and County Charges: 1,182,721 1,230,721 1,230,700 - 1,230,700 21
Debt Service: 4,745,068 4,745,068 4,661,371 - 4,661,371 83,697
Total Expenditures 99,556,004 99,466,004 94,373,331 4,327,707 98,701,038 764,966
Other Financing Sources (Uses)
Transfers in 2,286,952 2,286,952 2,388,727 2,388,727 101,775
Transfers out (795,918) (3,344,727) (3,344,727) (3,344,727) -
Total Other Financing Sources (Uses) 1,491,034 (1,057,775) (956,000) $ (956,000) 101,775
Excess (Deficiency) of Revenues and Other
Financing Sources Over Expenditures/Uses
Of Prior Year Budgetary Fund Balance (5,346,551) (7,805,360) $ 271,602 $ 3,749,255
Other Budgetary Items
Use of unassigned fund balance $ 1,154,000 $ 2,112,809
Use of overlay surplus - 1,500,000
Prior year encumbrances 4,192,551 4,192,551
Total Other Budgetary Items 5,346,551 7,805,360
Net budget and actual $ - $ -
(Concluded)
The notes to the financial statements are an integral part of this statement.
The notes to the required supplementary information are and integral part of this statement.
Town of Canton, Massachusetts Page 86 of 130 Comprehensive Annual Financial ReportSource page 95
TOWN OF CANTON, MASSACHUSETTS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2019
I. Pension Plan
Pension Contributions – The Town contributes to the Norfolk County Retirement System (the
System), a cost-sharing multiple-employer contributory defined benefit pension plan established
under Chapter 32 of Massachusetts General Law Chapter 32. 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 pension appropriations are established by the Public Employee
Retirement Administration Commission (PERAC) based on a funding schedule approved by the
System.
Changes in Assumptions – None.
II. Other Postemployment Benefit Plan
The Town administers a single employer defined benefit healthcare plan that provides health, dental
and life insurance benefits (other postemployment benefits) to retirees and their
dependents/beneficiaries in accordance with Section 20 of Massachusetts General Law Chapter 32B.
The Town is not required to fully fund the actuarially determined contribution.
Methods and assumptions used to determine contribution rates are as follows:
Investment rate of return 7.05%, net of OPEB plan investment expense,
including inflation.
Muncipal bond rate 2.79% as of June 30, 2019
Discount Rate 5.75%, net of OPEB plan investment
expense including inflation.
Inflation 2.75% annually as of June 30, 2019 and for future periods
Health Care Trend Rate 4.5%
Salary Increases 3.00% annually as of June 30, 2019 and for future periods
Cost of Living Adjustment Not applicable.
Pre-Retirement Mortality RP-2000 Employees Mortality Table projected generationally
with scale BB and a base year 2009 for males and females
Post-Retirement Mortality RP-2000 Healthy Annuitant Table projected generationally
with scale BB and a base year 2009 for males and females
Disabled Mortality RP-2000 Healthy Annuitant Table projected generationally
with scale BB and a base year 2012 for males and females
Actuarial Cost Method Individual entry age normal
Town of Canton, Massachusetts Page 87 of 130 Comprehensive Annual Financial ReportSource page 96
Changes in Assumptions – The discount rate increased from 5.25% to 5.75% and the health care
trend rate decreased from 5.0% to 4.5%.
III. 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 2019, Town Meeting approved various supplemental budgetary
appropriations which resulted in a net increase of approximately $2.5 million from the original voted
budget. These appropriations were primarily utilized for capital outlay funding ($1.8 million) and
increased stabilization reserves ($0.6 million).
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, 2019, is as follows:
Basis of
Accounting Fund Perspective
Differences Differences Total
Revenues on a budgetary basis $ 95,600,933
Stabilization revenue $ - $ 197,444 197,444
Change in accruing tax revenues (46,541) - (46,541)
Change in recording tax refunds payable (497,951) - (497,951)
On behalf payments 9,116,524 - 9,116,524
Revenues on a GAAP basis $ 8,572,032 $ 197,444 $ 104,370,409
Expenditures on a budgetary basis $ 94,373,331
Reclass of enterprise indirects cost to expenditures $ (911,514) $ - (911,514)
Change in accruing payroll expenditures 149,570 - 149,570
On behalf payments 9,116,524 - 9,116,524
Expenditures on a GAAP basis $ 8,354,580 $ - $ 102,727,911
Other financing sources (uses) on a budgetary basis $ (956,000)
Reclass of enterprise indirects cost to expenditures $ (911,514) $ - (911,514)
Stabilization transfers - 600,000 600,000
Other financing sources (uses) on a GAAP basis $ (911,514) $ 600,000 $ (1,267,514)
Town of Canton, Massachusetts Page 88 of 130 Comprehensive Annual Financial ReportSource page 97
Combining Statements Town of Canton, Massachusetts Page 89 of 130 Comprehensive Annual Financial Report
Source page 98
Nonmajor Governmental Funds
Narrative
Special Revenue Funds –
Special revenue funds are used to account for certain revenue generating activities that are legally and/or
programmatically restricted to expenditures for a specific purpose. From the Town’s financial ledgers,
these activities can be distinctly categorized into the following groupings:
School Lunch – This segregated revolving fund accounts for the activities of the child nutrition programs;
amounts collected from services include federal and state meal reimbursements and meal charges.
Private Grants – This fund accounts for grant funds received from private organizations that are to be
used to fund various governmental programs.
Town Revolving – This fund accounts for the non-school related activity within revolving funds
established in accordance with MGL Chapter 44, Section 53E ½ and other applicable statutes.
School Revolving – This fund accounts for educational-based activities within revolving funds established
in accordance with MGL Chapter 44, Section 53E ½ and Chapter 71.
Recreation – This fund accounts for self-supporting recreation programs and activities.
Ambulance – This fund accounts for the fees generated by the operations of the fire department’s
ambulance service that are used to fund specific operating costs of the department.
Community Preservation – This fund accounts for assets that are restricted by state law for the purposes
of acquiring or developing open space and recreational facilities, historic resources and affordable
housing.
Town Grants – This fund accounts for non-school grant programs received either directly from federal
and state agencies or indirectly through pass-through entities.
School Grants – This fund accounts for educational-based grant programs received either directly from
federal and state agencies or indirectly through pass-through entities.
Roadway Improvements – This fund accounts for certain roadway improvement projects which are fully
reimbursed by the Commonwealth of Massachusetts.
Other Departmental – This fund accounts for activity of donated funds, public safety details, and other
restricted funds used to support governmental programs.
Town of Canton, Massachusetts Page 90 of 130 Comprehensive Annual Financial ReportSource page 99
Permanent Funds –
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support governmental programs.
Cemetery Trust Funds – This fund accounts for contributions earmarked for the perpetual care and
maintenance of cemetery facilities and property.
Library Trust Funds – This fund accounts for contributions earmarked for the support of the Town’s
library.
Other Municipal Trust Funds – This fund accounts for all contributions including: gifts, donations and
bequests for which only earnings on the original trust corpus may be expended to benefit government
approved programs, other than those associated with cemetery and library activities.
Town of Canton, Massachusetts Page 91 of 130 Comprehensive Annual Financial ReportSource page 100
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2019
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Assets:
Cash and cash equivalents $ 310,319 $ 687,350 $ 710,705 $ 1,489,746 $ 380,286
Investments - - - - -
Receivables, net of allowance for uncollectibles:
Property taxes - - - - -
Tax liens and foreclosures - - - - -
Departmental and other - - - - -
Intergovernmental 25,804 - - - -
Total Assets $ 336,123 $ 687,350 $ 710,705 $ 1,489,746 $ 380,286
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ 1,203 $ 9,131 $ 10,879 $ 8,519 $ 37,915
Accrued payroll and withholdings 7,251 - 65 16,565 2,063
Other liabilities - - 550 - -
Due to other funds - - - - -
Total Liabilities 8,454 9,131 11,494 25,084 39,978
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - -
Unavailable revenues - other - - - - -
Total Deferred Inflows of Resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 327,669 678,219 699,211 1,464,662 340,308
Total Fund Balances 327,669 678,219 699,211 1,464,662 340,308
Total Liabilities, Deferred Inflow of
Resources, and Fund Balances $ 336,123 $ 687,350 $ 710,705 $ 1,489,746 $ 380,286
Town of Canton, Massachusetts Page 92 of 130 Comprehensive Annual Financial ReportSource page 101
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ 1,979,720 $ 2,262,127 $ 133,883 $ 1,267,501 $ - $ 3,053,114 $ 12,274,751
- - 332,155 - - - 332,155
- 828 - - - - 828
- 3,447 - - - - 3,447
301,694 - - - - 148,087 449,781
- - 61,329 546,727 677,627 - 1,311,487
$ 2,281,414 $ 2,266,402 $ 527,367 $ 1,814,228 $ 677,627 $ 3,201,201 $ 14,372,449
$ - $ 58,413 $ 35,226 $ 5,500 $ 1,237 $ 45,433 $ 213,456
- - 1,154 11,428 - 16,176 54,702
- - - - - - 550
- - - - 668,748 - 668,748
- 58,413 36,380 16,928 669,985 61,609 937,456
- 4,275 - - - - 4,275
301,694 - - - - - 301,694
301,694 4,275 - - - - 305,969
- - - - - - -
1,979,720 2,203,714 490,987 1,797,300 7,642 3,139,592 13,129,024
1,979,720 2,203,714 490,987 1,797,300 7,642 3,139,592 13,129,024
$ 2,281,414 $ 2,266,402 $ 527,367 $ 1,814,228 $ 677,627 $ 3,201,201 $ 14,372,449
Town of Canton, Massachusetts Page 93 of 130 Comprehensive Annual Financial ReportSource page 102
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2019
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Assets:
Cash and cash equivalents $ 16,077 $ 190,126 $ 24,655 $ 230,858 $ 12,505,609
Investments 510,403 396,587 151,215 1,058,205 1,390,360
Receivables, net of allowance for uncollectibles:
Property taxes - - - - 828
Tax liens and foreclosures - - - - 3,447
Departmental and other - - - - 449,781
Intergovernmental - - - - 1,311,487
Total Assets $ 526,480 $ 586,713 $ 175,870 $ 1,289,063 $ 15,661,512
Liabilities, Deferred Inflows of Resources,
and Fund Balances:
Liabilities:
Warrants and accounts payable $ - $ - $ - $ - $ 213,456
Accrued payroll and withholdings - - - - 54,702
Other liabilities - - - - 550
Due to other funds - - - - 668,748
Total Liabilities - - - - 937,456
Deferred Inflows of Resources:
Unavailable revenues - property taxes - - - - 4,275
Unavailable revenues - other - - - - 301,694
Total Deferred Inflows of Resources - - - - 305,969
Fund Balances:
Nonspendable 498,597 21,553 12,235 532,385 532,385
Restricted 27,883 565,160 163,635 756,678 13,885,702
Total Fund Balances 526,480 586,713 175,870 1,289,063 14,418,087
Total Liabilities and Fund Balances $ 526,480 $ 586,713 $ 175,870 $ 1,289,063 $ 15,661,512
(Concluded)
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NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2019
Special Revenue Funds
School Private Town School
Lunch Grants Revolving Revolving Recreation
Revenues:
Property taxes $ - $ - $ - $ - $ -
Intergovernmental 364,623 - 13,209 - -
Charges for services 797,991 - - - -
Departmental and other - - 212,594 1,419,523 375,451
Investment income 4,388 - 122 - -
Contributions and donations - - 47,807 - -
Total Revenues 1,167,002 - 273,732 1,419,523 375,451
Expenditures:
Current:
General government - - 2,318 - -
Public safety - - 7,746 - -
Education 1,007,600 - - 2,324,059 -
Public works - - - - -
Health and human services - - 88,951 - -
Culture and recreation - 236,190 62,229 - 321,668
Employee benefits - - - - -
Total Expenditures 1,007,600 236,190 161,244 2,324,059 321,668
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 159,402 (236,190) 112,488 (904,536) 53,783
Other Financing Sources (Uses):
Proceeds from bonds and notes - - - - -
Premium from bonds and notes - - - - -
Insurance recoveries - - - - -
Transfers in - - - 700,000 -
Transfers out (160,500) - (70,000) - -
Total Other Financing Sources (Uses) (160,500) - (70,000) 700,000 -
Net Change in Fund Balances (1,098) (236,190) 42,488 (204,536) 53,783
Fund Balances - Beginning of Year 328,767 914,409 656,723 1,669,198 286,525
Fund Balances - End of Year $ 327,669 $ 678,219 $ 699,211 $ 1,464,662 $ 340,308
Town of Canton, Massachusetts Page 96 of 130 Comprehensive Annual Financial ReportSource page 105
Sub-total
Community Town School Roadway Other Special
Ambulance Preservation Grants Grants Improvements Departmental Revenue Funds
$ - $ 615,225 $ - $ - $ - $ - $ 615,225
- 110,487 662,100 3,108,111 677,627 - 4,936,157
1,236,489 - - - - - 2,034,480
- 2,252 - - - 1,057,463 3,067,283
- 28,746 9,668 - - 1,177 44,101
- - - - - 938,058 985,865
1,236,489 756,710 671,768 3,108,111 677,627 1,996,698 11,683,111
- - 209,877 - - 138,990 351,185
- - 486,218 - - 1,120,498 1,614,462
- - - 2,051,279 - 244,977 5,627,915
- - 9,400 - 678,642 - 688,042
- - 59,244 - - - 148,195
- 3,032,025 33,073 - - - 3,685,185
- - - - - 55,659 55,659
- 3,032,025 797,812 2,051,279 678,642 1,560,124 12,170,643
1,236,489 (2,275,315) (126,044) 1,056,832 (1,015) 436,574 (487,532)
- 1,849,000 - - - - 1,849,000
- 216,500 - - - 76,863 293,363
- - - - - - -
- - 1,200 - 6,391 95,918 803,509
(1,119,560) - (6,391) - - (122,154) (1,478,605)
(1,119,560) 2,065,500 (5,191) - 6,391 50,627 1,467,267
116,929 (209,815) (131,235) 1,056,832 5,376 487,201 979,735
1,862,791 2,413,529 622,222 740,468 2,266 2,652,391 12,149,289
$ 1,979,720 $ 2,203,714 $ 490,987 $ 1,797,300 $ 7,642 $ 3,139,592 $ 13,129,024
(Continued)
Town of Canton, Massachusetts Page 97 of 130 Comprehensive Annual Financial ReportSource page 106
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FISCAL YEAR ENDED JUNE 30, 2019
Permanent Funds Total
Cemetery Library Other Sub-total Nonmajor
Trust Trust Municipal Permanent Governmental
Funds Funds Trust Funds Funds Funds
Revenues:
Property taxes $ - $ - $ - $ - $ 615,225
Intergovernmental - - - - 4,936,157
Charges for services - - - - 2,034,480
Departmental and other - - - - 3,067,283
Investment income 6,948 10,375 2,640 19,963 64,064
Contributions and donations 21,200 2,300 - 23,500 1,009,365
Total Revenues 28,148 12,675 2,640 43,463 11,726,574
Expenditures:
Current:
General government - - - - 351,185
Public safety - - - - 1,614,462
Education - - - - 5,627,915
Public works - - - - 688,042
Health and human services - - - - 148,195
Culture and recreation - 4,356 - 4,356 3,689,541
Employee benefits - - - - 55,659
Total Expenditures - 4,356 - 4,356 12,174,999
Excess (Deficiency) Of Revenues
Over (Under) Expenditures 28,148 8,319 2,640 39,107 (448,425)
Other Financing Sources (Uses):
Proceeds from bonds and notes - - - - 1,849,000
Premium from bonds and notes - - - - 293,363
Transfers in - - - - 803,509
Transfers out (5,000) - - (5,000) (1,483,605)
Total Other Financing Sources (Uses) (5,000) - - (5,000) 1,462,267
Net Change in Fund Balances 23,148 8,319 2,640 34,107 1,013,842
Fund Balances - Beginning of Year 503,332 578,394 173,230 1,254,956 13,404,245
Fund Balances - End of Year $ 526,480 $ 586,713 $ 175,870 $ 1,289,063 $ 14,418,087
(Concluded)
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Internal Service Funds
Narrative
Internal service funds are used to account for the financing of services provided by one department to
other departments or governmental units. The Town’s risk financing activities accounts for in the internal
service funds can be distinctly categorized into the following groupings:
Health Claims – This fund accounts for the group health and dental insurance activity for active Town
employees and retirees.
Workers’ Compensation Claims – This fund accounts for workers’ compensation benefits, replacement
wages and medical claims expenses of employees that qualify for such benefits.
Unemployment Claims – This fund accounts for unemployment benefits for eligible employees.
Building Insurance – This fund accounts for resource accumulated to pay for damage to Town property
that is not covered by liability insurance.
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INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2019
Total
Health Workers' Unemployment Building Internal
Claims Compensation Claims Insurance Service Funds
Assets:
Current assets:
Cash and cash equivalents $ 2,239,590 $ 3,789 $ 264,011 $ 20,252 $ 2,527,642
Investments 4,297,543 - - - 4,297,543
Receivables, net of allowance for uncollectibles:
Departmental and other 224,395 - - - 224,395
Prepaid items - - - - -
Deposit held by third party 61,800 - - - 61,800
Total Current Assets 6,823,328 3,789 264,011 20,252 7,111,380
Liabilities:
Current liabilities:
Warrants and accounts payable 1,265,582 260 7,559 - 1,273,401
Health claims incurred but not reported 884,633 - - - 884,633
Total Current Liabilities 2,150,215 260 7,559 - 2,158,034
Net Position:
Unrestricted 4,673,113 3,529 256,452 20,252 4,953,346
TOTAL NET POSITION $ 4,673,113 $ 3,529 $ 256,452 $ 20,252 $ 4,953,346
Town of Canton, Massachusetts Page 102 of 130 Comprehensive Annual Financial ReportSource page 111
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FISCAL YEAR ENDED JUNE 30, 2019
Total
Health Workers' Unemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Operating Revenues:
Employee contributions $ 3,990,806 $ - $ - $ - $ 3,990,806
Employer contributions 11,550,823 - 100,000 - 11,650,823
Stop loss reimbursements 3,252,099 - - - 3,252,099
Total Operating Revenues 18,793,728 - 100,000 - 18,893,728
Operating Expenditures:
Contractual services - - - 450,000 450,000
Employee benefits 19,759,197 4,951 111,137 - 19,875,285
Total Operating Expenditures 19,759,197 4,951 111,137 450,000 20,325,285
Operating Income (Loss) (965,469) (4,951) (11,137) (450,000) (1,431,557)
Nonoperating Revenues (Expenses):
Investment Income 57,287 220 6,649 3,991 68,147
Income (Loss) Before Transfers (908,182) (4,731) (4,488) (446,009) (1,363,410)
Change in Net Position (908,182) (4,731) (4,488) (446,009) (1,363,410)
Fund Balances - Beginning of Year 5,581,295 8,260 260,940 466,261 6,316,756
Fund Balances - End of Year $ 4,673,113 $ 3,529 $ 256,452 $ 20,252 $ 4,953,346
Town of Canton, Massachusetts Page 103 of 130 Comprehensive Annual Financial ReportSource page 112
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FISCAL YEAR ENDED JUNE 30, 2019
Total
Health Workers' Umemployment Building Internal Service
Claims Compensation Claims Insurance Funds
Cash Flows From Operating Activities:
Receipts from interfund services provided $ 18,797,227 $ - $ 100,000 $ - $ 18,897,227
Payments for interfund services used (18,592,745) (4,691) (103,928) (450,000) (19,151,364)
Net Cash Provided by (Used in) Operating Activities 204,482 (4,691) (3,928) (450,000) (254,137)
Cash Flows From Investing Activities:
Investment income 57,287 220 6,649 3,991 68,147
Investment of operating cash (567,889) - - 464,267 (103,622)
Net Cash Provided By Investing Activities (510,602) 220 6,649 468,258 (35,475)
Net Change in Cash and Cash Equivalents (306,120) (4,471) 2,721 18,258 (289,612)
Cash and Cash Equivalents:
Beginning of the Year 2,545,710 8,260 261,290 1,994 2,817,254
End of the Year $ 2,239,590 $ 3,789 $ 264,011 $ 20,252 $ 2,527,642
Reconciliation of Operating Income (Loss) to Net Cash
Provided by (Used in) Operating Activities:
Operating income (loss) (965,469) (4,951) (11,137) (450,000) (1,431,557)
Adjustments to reconcile operating income (loss) to net
cash provided by (used in) operating activities:
Changes in assets and liablities:
Receivables 3,499 - - - 3,499
Prepaid items 41,962 - - - 41,962
Accounts payable and accrued expenses 1,124,490 260 7,209 - 1,131,959
Net Cash Provided by (Used in) Operating Activities $ 204,482 $ (4,691) $ (3,928) $ (450,000) $ (254,137)
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Fiduciary Funds
Agency Funds –
Agency funds are used to account for assets maintained in a custodial capacity. Such activities primarily
consist of performance bonds, other escrow deposits, school student activity deposits.
Town of Canton, Massachusetts Page 106 of 130 Comprehensive Annual Financial ReportSource page 115
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FISCAL YEAR ENDED JUNE 30, 2019
Beginning End
of Year Additions Deletions of Year
Assets
Current assets:
Cash and cash equivalents $ 1,279,708 $ 464,153 $ (719,375) $ 1,024,486
Liabilities
Current liabilities:
Warrants payable $ 11,853 $ 662,618 $ (649,086) $ 25,385
Agency liabilities 1,267,855 531,835 (800,589) 999,101
Total Liabilities $ 1,279,708 $ 1,194,453 $ (1,449,675) $ 1,024,486
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Statistical Section Statistical tables differ from financial statements since they usually cover more than one fiscal year and present non- accounting data. The following tables reflect social and economic data, financials trends, and fiscal capacity. The Town’s Council on Aging Department purchased two new twenty passenger wheelchair accessible senior citizen buses to provide transportation assistance to elderly and disabled citizens who are unable to drive on their own. Town of Canton, Massachusetts Page 109 of 130 Comprehensive Annual Financial Report
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Statistical Section
This part of the comprehensive annual financial report presents information as a context for understanding
what the information in the financial statements, note disclosures, and required supplementary
information says about the Town’s overall financial health.
Financial Trends
These schedules contain trend information to help the reader understand how the Town’s financial
performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the Town’s most significant local revenue
source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the Town’s current
levels of outstanding debt, and the Town’s ability to issue additional debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Town’s financial activities take place.
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the Town’s financial report relates to the services the Town provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the financial
statements for the relevant year.
Town of Canton, Massachusetts Page 111 of 130 Comprehensive Annual Financial ReportSource page 120
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
2010 2011 2012 (1) 2013 2014 2015 (2) 2016 2017 2018 (3) 2019
Governmental activities:
Net investment in capital assets…………………………….
$ 57,942,064 $ $ 62,056,797 $ 63,962,326 $ 61,957,511 $ 70,116,230 $ 76,109,604 $ 78,591,436 $ 78,738,423 $ 81,317,923 $ 85,225,980
Restricted………………………………………………………………………….. 7,781,249 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548 10,880,921 10,431,283
Unrestricted……………………………………………………………… 6,141,042 (3,861,890) (8,796,940) (14,921,000) (23,682,247) (57,308,073) (55,970,281) (57,041,754) (86,179,993) (97,227,078)
Total governmental activities net position………………………………………..
$ 71,864,355 $ 65,652,451 $ 61,940,036 $ 57,805,364 $ 55,346,471 $ 27,995,047 $ 31,627,703 $ 32,339,217 $ 6,018,851 $ (1,569,815)
Business-type activities:
Net investment in capital assets…………………………….
$ 15,188,472 $ 17,195,414 $ 16,033,950 $ 16,381,614 $ 15,743,697 $ 16,386,618 $ 17,457,708 $ 18,785,822 $ 20,603,290 $ 23,248,847
Unrestricted………………………………………………………………. 3,836,227 2,796,789 4,362,212 4,030,576 6,399,642 6,342,679 9,040,938 8,905,131 7,446,856 7,149,422
Total business-type activities net position…………………………….
$ 19,024,699 $ 19,992,203 $ 20,396,162 $ 20,412,190 $ 22,143,339 $ 22,729,297 $ 26,498,646 $ 27,690,953 $ 28,050,146 $ 30,398,269
Primary government:
Net investment in capital assets…………………………….
$ 73,130,536 $ 79,252,211 $ 79,996,276 $ 78,339,125 $ 85,859,927 $ 92,496,222 $ 96,049,144 $ 97,524,245 $ 101,921,213 $ 108,474,827
Restricted………………………………………………………………………. 7,781,249 7,457,544 6,774,650 10,768,853 8,912,488 9,193,516 9,006,548 10,642,548 10,880,921 10,431,283
Unrestricted…………………………………………………………… 9,977,269 (1,065,101) (4,434,728) (10,890,424) (17,282,605) (50,965,394) (46,929,343) (48,136,623) (78,733,137) (90,077,656)
Total primary government net position………………………………………………….
$ 90,889,054 $ 85,644,654 $ 82,336,198 $ 78,217,554 $ 77,489,810 $ 50,724,344 $ 58,126,349 $ 60,030,170 $ 34,068,997 $ 28,828,454
(1) In fiscal year 2012, the Town restated its liability for other post employment benefits. This resulted in a prior period restatement decreasing governmental activities beginning balance and increasing business-type
activities beginning balance by $161,000 and $262,000, respectively, as of July 1, 2011.
(2) In fiscal year 2015, the Town restated its net pension liability. This resulted in a prior period restatement decreasing governmental activities and business-type activities beginning balances by
$34,589,481 and $2,341,420, respectively, as of July 1, 2014.
(3) In fiscal year 2018, the Town restated its net other postemployment liability. This resulted in a prior period restatement decreasing governmental activities and business-type beginning balances by
$28,907,860 and $1,180,102, respectively, as of July 1, 2017.
Town of Canton, Massachusetts Page 112 of 130 Comprehensive Annual Financial Report