Municipal Financial Management Training and Resources

Training materials and resources for people interested in municipal finance and financial management.

Municipal Finance for New Officials

Are you a newly-elected or appointed municipal official? Start here.

• An Introduction to Free Cash (Video) 
• Capital Planning: Concepts and Process Overview (Video) 
• Enterprise Funds: Overview and Best Practices (Video)
• Introduction to Forecasting (Video) 
• Overview: Statutory Treatment of Municipal Revenue (PDF) 
• Preparing the Budget Document (Video) 
• Stabilization Funds: Overview and Best Practices (Video)
• The Annual Budget Process Specific to Cities (PDF) 
• The Annual Budget Process Specific to Towns (PDF) 
• The Financial Management Team (PDF) 
• The Importance of Formal Budget and Municipal Calendars (PDF) 
• The Importance of Free Cash (PDF) 
• The Importance of Reserve Policies (PDF) 
• The Importance of Revenue & Expenditure Forecasting (PDF) 
• The Role of the Finance Committee (Video)
• Understanding Municipal Debt (PDF)  
• Webinar: Meet DLS – Who we are and how we can help (Video)
  In this presentation, Division of Local Services’ bureau chiefs shared our mission and what information and resources we offer to cities and towns across the Commonwealth. The slides from this presentation can also be found here (PDF).
• What is "Home Rule?" (PDF) 

Municipal Finance Concepts

General Concepts

• The Financial Management Team (PDF) 
• What is "Home Rule?" (PDF) 

Budgeting and Planning

• Capital Planning: Concepts and Process Overview (Video)
• Introduction to Forecasting (Video)
• Overview of the Municipal Budget Process and Key Concepts (PDF)
• Overview of the Municipal Budget Process and Key Concepts (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) 
• The Importance of Free Cash (PDF) 
• The Importance of Reserve Policies (PDF) 
• The Importance of Revenue & Expenditure Forecasting (PDF) 

Revenue and Municipal Funds

• Enterprise Funds (PDF)

• Enterprise Funds: Overview and Best Practices (Video)
• Overview: Statutory Treatment of Municipal Revenue (PDF) 
• Overview: Tax Exempt Lease Purchases (TELPs) (Video)
• Revenue and Appropriation Deficits (PDF) 
• Revolving Fund Chart: School Department Revenue (PDF) 
• Revolving Funds Chart: Non-School Department Revenue (PDF) 
• Stabilization Funds: Overview and Best Practices (Video)
• The Overlay Reserve Account: Allowances for Abatements and Exemptions (Video)
• Understanding Municipal Debt (PDF) 

Capital Planning

• Capital Improvements Planning Guide (PDF) 

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

Forecasting

• Cash Flow Forecasting and Short-Term Borrowing (PDF) 

• Introduction to Forecasting (Video) 
• The Importance of Revenue & Expenditure Forecasting (PDF) 
• Webinar: Next Steps in Financial Forecasting
  This DLS-hosted webinar highlighted how a forecast enables the user to play “What If”, examine and project revenue streams, use varying assumptions, analyze the potential cost implications in the current and following years, and develop reasonable budget options in the best interest of the community.

Guidance from DLS

• Departmental Revolving Funds (BUL2017-1B (PDF) 
• Guidelines: Appropriation Transfers (IGR2017-13 (PDF)  
  This Informational Guideline Release (IGR) informs local officials of changes made by the Municipal Modernization Act to the alternative end-of-year budget transfer procedure.
• 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.
• Other Post-Employment Benefits (OPEB) Liability Trust Frequently Asked Questions (FAQ) (PDF) 
• Other Post-Employment Benefits (OPEB) Liability Trust Fund (IGR2019-10 (PDF)  
  This Informational Guideline Release (IGR) explains the municipal finance provisions of the Other Post-employment Benefits Liability Trust Fund (OPEB Fund) under G.L. c. 32B, § 20 and 20A, as amended by Sections 15 and 238 of the Municipal Modernization Act.
• Stabilization Funds (IGR2017-20 (PDF)
  These guidelines inform local officials about amendments made to G.L. c. 40, § 5B, which establishes city, town and district stabilization funds, by the Municipal Modernization Act.
• Transportation Network Company Per-Ride Assessment Distribution (LFO2018-1 (PDF)

Best Practices in Municipal Finance

• City, Town and District Reserve Funds (PDF) 
• Enterprise Funds: Overview and Best Practices (Video) 
• Overview: Tax Exempt Lease Purchases (TELPs) (Video)
• Preparing the Budget Document (Video)  
  This video describes the process for creating a municipal budget document, including the key components and suggested format.
• Reconciling Cash and Receivables (PDF) 
• Revenue and Appropriation Deficits (PDF) 
• Stabilization Funds: Overview and Best Practices (Video)
• The Importance of Annual Municipal Audits (PDF) 
• The Importance of the Treasurer's Cash Book (PDF) 
• The Overlay Reserve Account: Allowances for Abatements and Exemptions (Video)
• Transitioning Government Positions From Elected to Appointed (Video) 
• Understanding Municipal Debt (PDF) 
• What is "Home Rule?" (PDF) 

Using Financial Indicators to Analyze Fiscal Health

View the videos below to learn how local financial and demographic data can be used to indicate the status of a municipality’s fiscal health. This analysis can be helpful during the budget preparation process to build a clearer picture of financial trends and how your community arrived at its present financial condition.

• Debt Service
• Introduction: Financial Indicators
• Long-Term Debt
• Net Operating Revenue
• Operating Expenditures
• Pension Liability
• Personnel Costs
• Population & Enrollment
• Property Tax Revenue
• Reserves
• Revenues Related to Economic Growth
• State Aid as a Percentage of Operating Revenue
• Uncollected Property Taxes as a Percentage of Tax Levy

Download the companion workbook, Financial Indicators Template (Excel), to analyze your own community's data.

Videos

• An Introduction to Free Cash (Video)
• Capital Planning: Components of a Capital Plan (Video)
• Capital Planning: Concepts and Process Overview (Video)
• Enterprise Funds: Overview and Best Practices (Video)
• Everything you ever wanted to know about cherry sheets (Video) In this presentation, DLS staff provided detailed information about the annual cherry sheet process and answered questions from local officials. The slides from the presentation can be found here.
• Funding the Capital Plan (Video)
• Introduction to Forecasting (Video)
• Overview: Tax Exempt Lease Purchases (TELPs) (Video)
• Preparing the Budget Document (Video)
• Stabilization Funds: Overview and Best Practices (Video)
• The Overlay Reserve Account: Allowances for Abatements and Exemptions (Video)
• The Role of the Finance Committee (Video)
• Transitioning Government Positions From Elected to Appointed

Tools and Templates

• Budget and Tax Rate Planning Tool (Excel)
• Capital Projects Request Form (Word)
• Capital Targets Template (Excel)
• Indirect Costs Template (Excel)

Date published:	July 30, 2020
Last updated:	February 18, 2021