Municipal Finance Best Practices

Recommended best practices and guidance for municipal finance officials.

Role of the Division of Local Services

Learn how DLS supports local officials in your community to achieve sound and effective fiscal management through guidance, training and oversight.

• DLS Overview
• Introduction to DLS (Video)
• State Oversight of Local Taxation: DLS's Role (Video)
• DLS Bureaus

Roles & Responsibilities of Municipal Officials

Learn how the following municipal officials contribute to the financial stability of Massachusetts communities. Are you a newly elected or appointed official? Visit our New Officials page!

• The Role of the Municipal Chief Administrative Officer (CAO) 
• The Role of the Finance Committee (Video)
• The Role of the Finance Director
• The Role and Responsibilities of an Accountant/Auditor 
• The Role and Responsibilities of an Assessor 
• The Role and Responsibilities of the City/Town Clerk 
• The Role and Responsibilities of the Collector 
• The Role and Responsibilities of the Treasurer

Assessing & Property Valuation

Learn about the best practices in property valuation. For more information and related resources, visit our Property Taxes and Prop 2 ½ page.

• Course 101 - Introduction to Assessment Administration
• Interactive Assessors Annual Calendar
• Navigating Mass Appraisal
• Preparing for Classification Hearings
• Administering Motor Vehicle Excise
• Property Sales Review
• How Assessors Use GIS
• Massachusetts Assessing Professional Designations (MAAO)
• International Association of Assessing Officers (IAAO) Education Program

Budgeting & Forecasting

Best practices relative to sound budgeting practices and financial forecasting. For more information and related resources, visit our Budget & Forecasting page.

• The Importance of Formal Budget and Municipal Calendars 
• The Annual Budget Process Specific to Cities 
• The Annual Budget Process Specific to Towns 
• Preparing the Budget Document (Video) 
• The Importance of Revenue & Expenditure Forecasting 
• Introduction to Forecasting (Video) 

Capital Planning

Best practices relative to capital planning, a key component of the annual budget process. For more information and related resources, visit our Capital Planning page.

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

Debt & Borrowing

Many communities finance capital projects through debt issuances. For more information and related resources, visit our Debt & Borrowing page.

• Understanding Municipal Debt 
• Cash Flow Forecasting and Short-Term Borrowing
• Borrowing Guidelines: Asset Useful Life Schedules and Maximum Borrowing Terms (PDF)

Free Cash & Reserves

Best practices relative to the importance of free cash and other reserves. For more information and related resources, visit our Free Cash & Reserves page.

• The Importance of Free Cash 
• The Importance of Reserve Policies 
• City, Town, and District Reserve Funds
• Special Stabilization Funds

Financial Management

Best practices relative to municipal finance and financial management. For more information and related resources, visit our Financial Management page.

• The Financial Management Team  
• Enterprise Funds 
  • Enterprise Funds: Overview and Best Practices  (Video)
  • Enterprise Fund Manual
• The Importance of Municipal Audits
• The Importance of Reconciling Cash and Receivables
• The Importance of the Treasurer's Cash Book 
• Intermunicipal Agreements
• Legal Services
• Preparing for Employee Turnover
• Transitioning Government Positions from Elected to Appointed (Video) 
• The Overlay Reserve Account: Allowances for Abatements and Exemptions (Video)
• Overview: Tax Exempt Lease Purchases (TELPs) (Video)
• Planning for Retirement
• Revenue and Appropriation Deficits
• User Fees
• What is Home Rule?

Date published:	June 17, 2026
Last updated:	May 21, 2026