Local officials should use short- and long-term fiscal context to guide decision making.
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Budgeting and long-range financial planning
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.
Table of Contents
Roles and responsibilities
Forecasting
Proposition 2 1/2
- A Detailed Look at Proposition 2 ½ for assessors Handbook (PDF)
- Calculating the Levy Limit (Video)
- Calculating the Levy Limit (Video)
- Fiscal Year 2022 Guidelines for Determining the Annual Levy Limit Increase for New Growth (PDF)
- 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 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)
- Overview of the Municipal Budget Process and Key Concepts Webinar Slides (PDF)
- Preparing the Budget Document (Video)
- The Annual Budget Process Specific to Cities (PDF)
- The Annual Budget Process Specific to Towns (PDF)
- The Importance of Formal Budget and Municipal Calendars (PDF)
Capital planning
Reserves
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 (PDF)
Enterprise funds
- Enterprise Fund manual (PDF)
- Enterprise Funds (PDF)
- Enterprise Funds: Overview and Best Practices (Video)
Annual audit
OPEB
Tools
- Capital Targets Template (PDF)
- Debt Service Calculator (PDF)
- Debt Service Schedule (PDF)
- Financial Forecasting Template - Instructions (PDF)
- Financial Forecasting Template (PDF)
- Financial Indicators Template (PDF)
- Indirect Cost Template (PDF)
- Tax Impact Calculator (Databank report)
Impact of Proposition 2 1/2 referendum on property tax bills
Other
- Guidelines: Municipal Finance Provisions of the Community Preservation Act (CPA) (IGR2019-14) (PDF)
- Lease Purchase Finance Agreements (IGR2019-9) (PDF)
- Overview of Statutory Treatment of Municipal Funds (PDF)
- Overview: Tax Exempt Lease Purchases (TELPs) (Video)
- Revenue and Appropriation Deficits (PDF)
- Revenue Deficits: An Overview (PDF)
- 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)