Understanding and managing municipal debt
Borrowing: Purposes and Procedures (IGR2017-21, PDF) This Informational Guideline Release (IGR) explains the authorization and issuance of debt by cities, towns, improvement districts and regional school districts, including amendments made by the Municipal Modernization Act in borrowing procedures.
Premiums and Surplus Proceeds for Proposition 2½ Excluded Debt (IGR2017-22, PDF) This Informational Guideline Release (IGR) explains to local officials the adjustments made to a Proposition 2½ debt exclusion when premiums are received and surplus loan proceeds remain after the project or purpose of the borrowing is completed.
Guidelines: Municipal Finance Provisions of the Community Preservation Act (CPA) (IGR2019-14, PDF) This Informational Guideline Release (IGR) explains to local officials the procedures and requirements for establishing and administering a special fund that may be appropriated and spent for certain open space, recreational, historic resource and affordable housing purposes.
Tools for managing debt
Debt Service Calculator (Excel) This Excel file can be used as a guide for projecting debt service.
Municipal bond ratings
Video series: A Deeper Dive Into Municipal Debt
This series of videos provides an extensive review of municipal debt and how Massachusetts’ cities and towns can issue it. Please note that additional requirements may exist for regional school districts and special purpose districts seeking to issue debt. In all cases, please consult with your municipal and bond counsels when contemplating the issuance of debt. For the Department of Revenue’s official guidance on municipal borrowing and debt, see Informational Guideline Releases 17-21 and 17-22.
View the full video (26 minutes)
View individual segments:
- Introduction and overview
- Municipal borrowing authority
- Voting to borrow
- Borrowings subject to debt exclusion approval
- Issuance roles and responsibilities
- Credit rating agencies
- Long-term debt
- Short-term debt
- Emergency spending
- Accounting for debt and surplus proceeds/abandoned projects
- DLS oversight/Conclusion
|Date published:||July 30, 2020|
|Last updated:||December 29, 2020|