Author: Financial Management Resource Bureau
Adopting financial policies is a best practice essential to sound, long-term budgeting for municipalities. A comprehensive financial policy manual provides high-level fiscal planning and guidance that promotes consistency in financial management. By setting clear and reasonable policies, a municipality can establish a roadmap for both short- and long-term budget decisions, as well as for day-to-day operations. Because these policies also reinforce internal controls, formalized policy documents are viewed favorably by bond rating agencies, including Moody’s, Standard & Poor’s, and Fitch.
The Financial Management Resource Bureau (FMRB) recommends that cities and towns adopt a set of core financial policies. These policies fall into two categories: financial planning and financial operations, as outlined below.
FMRB has developed more than 30 financial policy manuals for cities and towns across the Commonwealth. Sample financial policies are available on the Division of Local Services website by clicking here.
To further support municipalities, FMRB offers an in-person workshop that focuses on these core planning and operational policies. Through guided discussions, local officials learn how to draft and implement policies tailored to their community’s needs. Municipalities interested in participating in a future workshop may submit a request through the Division of Local Services website through this link.
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Editor: Dan Bertrand
Editorial Board: Tracy Callahan, Sean Cronin, Janie Dretler, Jessica Ferry, Christopher Ketchen, Paula King, Jen McAllister, Brianna Ortiz, and Tony Rassias
| Date published: | October 16, 2025 |
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