Budgeting and Long-range Financial Planning

Local officials should use short- and long-term fiscal context to guide decision making.

An annual budget document should include financial information, goals and objectives, lay out prospective revenues and expenditures, and explain program changes in detail. In addition, financial policies, capital planning, and forecasting provide structure, context, and insight into a community’s needs, fiscal condition, and ability to provide services now and into the future. These tools and guides can assist your community with its long-term financial planning efforts.

Roles and responsibilities

• The Role of the Finance Director
• The Financial Management Team
• The Role of the Finance Committee (Video)

Forecasting

• Cash Flow Forecasting and Short-Term Borrowing
• Introduction to Forecasting (Video)
• The Importance of Revenue & Expenditure Forecasting (PDF)
• Webinar: Next Steps in Financial Forecasting (Video)

Proposition 2 1/2

• A Detailed Look at Proposition 2 ½ for assessors Handbook (PDF)
• Calculating the Levy Limit (Video)
• Fiscal Year 2022 Guidelines for Determining the Annual Levy Limit Increase for New Growth
• How Can a Community Exceed Its Levy Limit or Ceiling? (Video)
• Levy Limits: A Primer on Proposition 2 ½ (PDF)
• New Growth in the Tax Base Under Proposition 2 1/2 (Video)
• Proposition 2 ½ Ballot Questions – Requirement and Procedures (PDF)
• What is a Levy Ceiling? (Video)
• What is a Levy Limit? (Video)
• What is a Proposition 2 1/2 Exclusion? (Video)
• What is a Proposition 2 1/2 Override or Underride? (Video)
• What is Excess Levy Capacity? (Video)
• What is New Growth? (Video)
• What is Proposition 2 1/2? (Video)
• What's the Difference Between an Override and an Exclusion? (Video)

Budget process

• Overview of the Municipal Budget Process and Key Concepts Webinar Recording (Video)
• Preparing the Budget Document (Video)
• The Annual Budget Process Specific to Cities (PDF)
• The Annual Budget Process Specific to Towns
• The Importance of Formal Budget and Municipal Calendars

Capital planning

• Capital Improvement Planning Guide (PDF)
• Capital Planning: Components of a Capital Plan (Video)
• Capital Planning: Concepts and Process Overview (Video)
• Funding the Capital Plan (Video)
• Capital Projects Request Form (DOCX)
• Presenting and Funding Major Capital Projects

Reserves

• An Introduction to Free Cash (Video)
• City, Town and District Reserve Funds
• IGR 2024-12 Stabilization Funds
• Determining Property Values
• Stabilization Funds: Overview and Best Practices (Video)
• The Importance of Free Cash
• The Importance of Reserve Policies

Debt and borrowing

• A Deeper Dive Into Municipal Debt - Full (video) (Video)
• Borrowing Guidelines: Asset Useful Life Schedules and Maximum Borrowing Terms (PDF)
• Explanation of Moody's Bond Ratings (PDF)
• Explanation of Standard and Poor's Bond Ratings (PDF)
• Introduction to Municipal Debt (Video)
• Report: Trends in Municipal Bond Ratings (Databank report)
• Understanding Municipal Debt

Enterprise funds

• IGR 2022-16 Enterprise Funds (PDF)
• Enterprise Funds
• Enterprise Funds: Overview and Best Practices (Video)

Annual audit

• Audit Firms (PDF)
• Municipal Audits: FAQs (PDF)
• Overview of Municipal Audits Webinar Recording (Video)
• Overview of Municipal Audits Webinar Slides (PDF)
• The Importance of Annual Municipal Audits

OPEB

• Other Post-Employment Benefits (OPEB) Liability Trust Frequently Asked Questions (FAQ) (PDF)
• Other Post-Employment Benefits (OPEB) Liability Trust Fund (IGR2019-10)

Tools

• Capital Targets Template (PDF)
• Debt Service Calculator (PDF)
• Debt Service Schedule (PDF)
• Financial Indicators Template (PDF)
• Tax Impact Calculator (Databank report)
  Impact of Proposition 2 1/2 referendum on property tax bills

Other

• Departmental Revolving Funds (BUL2017-1B) (PDF)
• Guidelines: Municipal Finance Provisions of the Community Preservation Act (CPA) (IGR2019-14)
• Lease Purchase Finance Agreements (IGR2019-9)
• Overview of Statutory Treatment of Municipal Funds (PDF)
• Overview: Tax Exempt Lease Purchases (TELPs) (Video)
• Revenue and Appropriation Deficits
• Revolving Fund Chart: School Department Revenue (PDF)
• Revolving Funds Chart: Non-School Department Revenue (PDF)
• Webinar: Yarmouth Tax Rate Recap Process Webinar Recording (Video)
• Webinar: Yarmouth Tax Rate Recap Process Webinar Slides (PDF)