[Amended 8-14-2006; 12-7-2010]
The underlying purposes of these procedures are:
A. 
To develop effective financial management within the Town;
B. 
To simplify, clarify, and modernize the financial systems of the Town of Barnstable;
C. 
To permit continued development of financial management policies and practices;
D. 
To provide for increased public confidence in the procedures followed in public financial management;
E. 
To provide increased economy and financial performance and to maximize to the fullest extent practicable the use of public funds of the Town of Barnstable; and
F. 
To provide safeguards to ensure quality and integrity of the financial systems.
This policy applies to every revenue source and expenditure of public funds irrespective of their source, including federal and state assistance monies.
The words defined in this section have the meanings set forth below whenever they appear in this policy:
ADVANCE REFUNDING
The issuer of bonds may sell new bonds at lower rates to replace a prior issue.
ARBITRAGE
Using existing debt proceeds and investing at a higher rate so as to generate a profit.
BASIS POINT
1/100 of 1%.
BETTERMENT
A special and local imposition upon the property in the immediate vicinity of municipal improvements, which is necessary to pay for the improvement, and is laid with reference to the special benefit which the property is supposed to have derived therefrom.
BOND ANTICIPATION NOTES (BANS)
Short-term interest-bearing notes issued by the Town in anticipation of bonds to be issued at a later date. The notes are retired from proceeds of the bond issue to which they are related.
BOND COUNSEL
An attorney retained by the Town to give a legal opinion that the issuer is authorized to issue proposed bonds, has met all legal requirements necessary for issuance, and that interest on the bonds is, or is not, exempt from federal and state income taxation.
CALL PROVISIONS
Permitting the issuer of bonds to repurchase the bonds before maturity at a predetermined price.
CAPITAL APPRECIATION BONDS (CAB)
Long-term securities on which the investment return is reinvested at a state compound rate until maturity. The investor receives a single payment at maturity representing both the principal and investment return.
CAPITAL BUDGET
Outlays for equipment, for construction or for purchase of land or a facility that provides services over an extended period of time.
CERTIFICATES OF PARTICIPATION
Documents, in fully registered form, that act like bonds. However, security for the certificates is the government's intent to make annual appropriations during the term of a lease agreement. No pledge of full faith and credit of the government is made. Consequently, the obligation of the government to make basic rental payments does not constitute an indebtedness of the government.
DEBT SERVICE
The sum of all interest payments in a period plus the dollar amount of any principal due that same period.
DOUBLE-BARRELED BONDS (COMBINATION BONDS)
Those that are payable from the revenues of a governmental enterprise and are also backed by the full faith and credit of the Town.
ENCUMBRANCE ACCOUNTING
Recording expenditures that intend to purchase a particular object, even prior to incurring a definite liability.
EXCISE TAX
Those levied by local government on a wide variety of individual products and services, but the major taxes are those on automobiles, boats and the rental of hotel/motel rooms.
FREE CASH or BUDGETARY FUND BALANCE
The amount of municipal funds not obligated for any expense or surplus funds.
GAAP
Generally accepted account principles established by the Federal Accounting Standards Board (FASB).
GENERAL OBLIGATION BONDS
Those whose payments are financed by all taxpayers and are secured by the full faith, credit, and taxing power of the issuer.
OPERATING BUDGET
A financial document setting forth expenditures for personnel, services, materials, supplies, contractual services, utilities, and other resources necessary to provide public services for the fiscal year.
PAR VALUE
The bond principal payable at maturity.
PROGRAM BUDGET
A format where government activities are organized in a series of services and activities that have clearly defined goals and objectives.
PUT BOND
A bond in which the bondholder has the right to sell the bond back to the issuer or a third party at a fixed price.
RATINGS
Evaluations of the credit quality of notes and bonds, usually made by independent rating services, which generally measure the probability of the timely repayment of principal and interest on municipal bonds.
REFUNDING BONDS
Those issued to retire bonds already outstanding.
REVENUE BONDS
Those whose payments are financed by the users of projects which benefit a specific group.
SECURITIES
Those available for local government investment such as Treasury securities, government agency securities, repurchase agreements, and negotiable certificates of deposit.
SPREAD
The difference between the underwriter's bid on a bond issue and the resale price; includes bid preparation expenses, selling commission, underwriter's fee, management fee, and profit.
TAX ANTICIPATION NOTES (REVENUE ANTICIPATION NOTES)
Notes issued in anticipation of collection of taxes, usually retireable only from tax collections, and frequently only from proceeds of the tax levy whose collection they anticipate.
USER FEES/CHARGES
Prices charged for voluntarily purchased, publicly provided services that benefit specific individuals or groups.
Financial information is public information to the extent provided in the Massachusetts General Statutes and Section 8-9, Open Meeting of the Voters, of the Town Charter and shall be available to the public as provided in these statutes and Charter.
A. 
Appointment, tenure, and removal of the Finance Director. The Town Manager shall appoint the Finance Director. The Finance Director should be a person with demonstrated executive and organizational ability. The Finance Director shall be a full-time employee of the Town and can be removed by the Town Manager only upon showing of just cause.
B. 
Functions.
(1) 
Chief Financial Officer of the Town. Financial services shall include accounting, assessments, treasury, procurement, risk management and budgeting. The Finance Director supervises and coordinates the administration of these services, and also serves as an advisor on fiscal policy and other related concerns such as debt and investment management.
(2) 
Power to adopt operational procedures. Consistent with the provisions of this policy, the Finance Director may adopt operational procedures governing the internal functions of the Finance Department.
(3) 
Service area. The Finance Director shall oversee a consolidated financial operation that includes the Barnstable Public Schools as approved by the School Committee and Town Council
C. 
Delegation of authority. The Director of Finance may delegate authority to designees as he or she sees fit.
A. 
Short-term forecasts. The Finance Department shall use short-range forecasts (up to one year) to principally prepare the annual budget and to project cash flow.
B. 
Long-term forecasts. Consistent with the Town Charter, the Finance Department shall annually prepare and recommend to the Town Manager a ten-year financial forecast of Town revenue, expenditures, and general financial condition of the Town. The long-term forecast shall also include:
(1) 
Identification of factors which impact financial condition;
(2) 
Revenue and expenditure trends;
(3) 
Potential sources of new or expanded revenue; and
(4) 
Actions necessary to enhance the financial condition of the Town.
C. 
Operating budget. The operating budget serves the role of harnessing financial and organizational resources of the Town in order to attain its goals and objectives. The operating budget may consist of the following funds (Their definitions are included in the accounting section below.):
(1) 
The general fund.
(2) 
Special revenue funds.
(3) 
Special assessment funds.
(4) 
Capital project funds.
(5) 
Enterprise funds.
(6) 
Fiduciary funds.
D. 
Budget cycle. The budget cycle for a fiscal year shall have four phases and operate as follows:
(1) 
Preparation of estimated expenditures and projected revenues;
(2) 
Adoption;
(3) 
Implementation or execution throughout the fiscal year; and
(4) 
Evaluation and assessment of attainment of goals and objectives and performance which includes monthly reports to the Town Manager and quarterly reports to the Town Council.
E. 
Budget approaches. Several approaches may be used in the operating budget. Their usefulness varies dependent on the goals to be achieved. These approaches consist of line-item, programmatic, performance, total quality management, and zero-based budgeting (ZBB). It is the current policy of the Town Manager to use the programmatic budget format.
F. 
Capital budgeting. A "capital expenditure" is defined as an outlay for the construction or purchase of a facility that is expected to provide services over a considerable period of time. Capital expenditures usually are large compared with expenditures for items in the operating budget. The Capital Improvements Plan (CIP) and the Capital Improvements Budget should be developed through the following steps: selection of projects, forecasting of resources, and determining the financing method.
(1) 
Determining worthwhile projects. A public investment is desirable when the present value of its estimated flow of benefits, discounted at the community's cost of capital, exceeds or equals its cost. A public investment is also desirable when the project rates highly with community values. The latter criteria may include, but not limited to:
(a) 
Preservation of capital;
(b) 
Legal conformance;
(c) 
Town goals and objectives;
(d) 
Health, safety, general welfare;
(e) 
Cost effectiveness;
(f) 
Environmental quality;
(g) 
Quality of life;
(h) 
Economic development;
(i) 
Financial leverage; and
(j) 
Special needs of the community.
(2) 
Forecasting fiscal resources. These resources should be projected in terms of normally anticipated sources of revenues, normal expenditures, and existing debt service obligations. Future revenues may be projected by studying past data on existing revenue sources. Projections should be based on existing tax rates and applied to a forecast of the growth of the existing tax base. As with expenditure trends, questions should be posed about significant deviations from past trends to learn whether special factors are likely to affect expenditure patterns in the future. Then, the capital improvements budget should be formulated by detailing the costs of the selected projects for the next five years, and should be summarized in a table including the following:
(a) 
A complete list of major capital improvements;
(b) 
Estimates of the total cost of each improvement;
(c) 
Outside sources of financing, such as state or federal grants and private gifts; and
(d) 
The scheduling of construction starts and annual expenditures.
(3) 
Determine financing method. The next step in capital budget preparation is to develop a financial plan and its effects on the tax structure. The plan should outline financing needs and recommended sources (e.g., bonding, fees, grants, etc.)
These policies and procedures are based on the premise that good accounting provides timely information as to when expenses will exceed budget plans, when capital funds are diverted to operations, when expenditures are outpacing revenues, and when the local government is incurring financial obligations beyond its fiscal capacity.
A. 
Accounting standards. Standards for accounting are guided by GAAP and are described by a subcommittee of the FASB as follows: Generally accepted accounting principles are primarily conventional in nature. They are the result of decisions; they represent the consensus at any time as to how the financial accounting process should operate and how financial statements should be prepared from the information made available through the financial accounting process. Inasmuch as generally accepted accounting principles embody a consensus, they depend heavily on notions such as "general acceptance" and "substantial authoritative support," which have not been and probably cannot be precisely defined. There is concurrence, however, that the notions of "general acceptance" and "substantial authoritative support" relate to the propriety of practices, as viewed by informed, intelligent, and experienced accountants in the light of the purposes and limitations of financial accounting process.
B. 
Fund basis of accounting. The various types of funds for accounting are as follows:
(1) 
General fund: for resources not devoted to specific activities and finances many of the basic municipal functions;
(2) 
Special revenue funds: account for the receipts from revenue sources that have been earmarked for specific activities;
(3) 
Special assessment fund: financing and construction of public improvements that benefit a specific group of properties;
(4) 
Enterprise fund: business-type activities supported by user fees;
(5) 
Internal service funds: similar to enterprise funds, but the services are rendered to other departments within the Town; and
(6) 
Trust and agency funds: assets held for others or nontax resources under trust instructions.
C. 
Encumbrance accounting. This accounting technique shall be used with the purpose of ensuring conformance with budget specifications.
(1) 
The steps for encumbrance accounting as part of the Town's purchase order system are:
(a) 
Submission of a purchase order by the requesting department; all information must be completed by the requesting department.
(b) 
Purchase order signed by the appropriate department manager.
(c) 
Verification of funds availability by the Town Accountant's office.
(d) 
Entry of data into the accounting system by the Town Accountant's office staff; funds are encumbered at this point.
(2) 
These first four steps open an account for future purchases; actual purchases are made through requisitions from the requesting department or invoices from vendors, which will draw down on the account opened by the purchase order.
D. 
Financial reporting. This activity shall consist of three types:
(1) 
General purpose financial statements that provide an overview of the financial position and the results of operations of all fund types (Reporting format should be similar to that of budget and conducted on a monthly basis.);
(2) 
Comprehensive annual financial reports that contain the general purpose financial statements, an introductory section, management's discussion and analysis, supporting statements, and a statistical section; and
(a) 
Annual audit report as described in Subsection D(2) above. It shall also contain the significant accounting policies of the Town summarized as "notes to financial statements," statistical information; current liabilities; and the arbitrage rebate amount due to the federal government.
(b) 
Annual long-term debt report (ALTDR), which shall contain specific details of all long-term debt of the Town, including refunding. The ALTDR shall include, but not be limited to, a schedule of changes in bonds, notes and loans payable; annual principal and interest payments due until maturity; total debt outstanding by purpose; annual charter bond limitations and issues; debt issue call provisions; and the legal debt margin.
(c) 
Annual fiscal indicators and financial forecast (See § 401-27B.), which should summarize the Town's financial condition by describing the necessary economic indicators, financial trends and credit ratios for the past 12 months. The information for this section should include, but not be limited to, assessed value of real property; ratio of net bonded debt to assessed value; net bonded debt per capita; bond coverage ratios current fund balance; ratio of annual debt service expenditures to general government expenditures; per capita income; population; revenue and expenditures trends; rapidity of principal repayment; and other financial and economic graphs and narrative.
(d) 
The Capital Improvements Plan (CIP) as described in § 401-27F. The current version of the CIP should be included in the AFIR.
A. 
Objectives. Administration of the property tax shall have the following objectives:
(1) 
Fairness. A tax should reflect the ability to pay of those who bear its burden, or the tax burden should be matched by the benefits taxpayers receive.
(2) 
Certainty. The rules of taxation should be clearly stated and evenly applied (i.e., reflect market value without bias).
(3) 
Convenience. The tax should be convenient to pay.
(4) 
Efficiency. Administration and collection costs should not be out of proportion to the revenues, and the tax should be neither easy to avoid nor too costly to enforce.
(5) 
Productivity. A tax should produce sufficient, stable revenue.
(6) 
Neutrality. A tax should not distort the way a community would ordinarily use its resources unless it is overtly desired.
B. 
Administration. Fundamental to the task of property tax administration is the establishment of a highly qualified staff and organization and efficient systems. The property tax administration process should consist of the following steps:
(1) 
Discovery;
(2) 
Inventory;
(3) 
Appraisal and assessment;
(4) 
Periodic assessment;
(5) 
Evaluating the assessment; and
(6) 
Applying exemptions where allowable.
C. 
Determining the levy. This step is conducted by subtracting the forecasted amounts of local revenues (sources other than the property tax) from the total estimated expenditures. The property tax rate is then obtained by dividing the required levy by the total value of property assessments and adjusting for anticipated delinquencies and estimated tax collections from past delinquencies. The resulting tax rate is expressed in mills per dollar (tax dollars per thousand dollars) of assessed value.
D. 
Collection. Tax collections may be performed through quarterly installments. The Tax Collection Office shall also levy penalties and interest charges for late payments.
User fees and special assessment districts shall be designed to relieve burdens on the general revenue system by extracting greater contributions from service beneficiaries by resembling an enterprise pricing system. User fees and special districts shall be based on several principles which include:
A. 
Total costs. These costs include direct costs (personnel and benefits, expenses) and indirect costs (general administration and facility costs).
B. 
Comparability. Prices for services should be competitive and/or consistent with the market for the particular service.
C. 
Consistency with community priorities. Prices for services should reflect the priorities of the Town of Barnstable.
D. 
Conscientious subsidy policy. Subsidies should be established in an overt manner and directed only to the targeted services or users.
E. 
Periodic review. A periodic review shall be conducted in order to assess whether user fees are in line with adopted policy.
A. 
The recommended changes in the usage rates are:
Current Block Structure Per Month
Current Monthly Rate per 100
Cubic Feet or 748 Gallons
(Barnstable Water Co. rates)
Proposed Monthly Rate per 100
Cubic Feet or 748 Gallons
(Hyannis Water System)
0 to 10,000 cubic feet
0 to 74,800 gallons
$1.45
$1.45
10,001 to 30,000 cubic feet 74,801 to 224,000 gallons
$1.36
$1.45
Over 30,000 cubic feet
Over 224,401 gallons
$1.08
$1.45
B. 
Rates are effective for water used September 1, 2006, forward.
C. 
For those billed monthly, the rates will be first shown on the bill on or after October 1, 2006.
D. 
For those billed quarterly, the rates will first be shown on the bill on or after December 1, 2006.
A. 
Debt management. The Town faces continuing capital infrastructure requirements to meet the increasing needs of its citizens and visitors. The purpose of this policy is to provide a functional tool for debt management and capital planning, as well as to enhance the Town's reputation for managing its debt in a conservative fashion. In the following section, the Town shall pursue the following goals:
(1) 
The Town shall endeavor to attain the highest possible credit rating for each debt issue.
(2) 
The Town shall take all practical precautions to avoid any financial decision which will negatively impact current credit ratings on existing or future debt issues.
(3) 
Effectively utilize debt capacity in relation to Town growth and tax burden to meet long-term capital requirements.
(4) 
When planning for issuance of new debt, the Town shall consider the impact of such new debt on overlapping debt and the financing plans of taxing entities which overlap, or underlie, the Town.
(5) 
When issuing debt, the Town shall assess financial alternatives to include new and innovative financing approaches, including whenever feasible, categorical grants, revolving loans or other state/federal aid.
(6) 
Minimize debt interest costs.
(7) 
The Town's financial management policies shall seek to improve the overall well-being of the citizens, maintain and improve essential municipal services, and enhance the financial capability of the Town.
B. 
Debt issuance in general. The laws of the Commonwealth of Massachusetts authorize the issuance of debt by the Town Treasurer. The law (MGL c. 44, §§ 1 through 28C) confers upon municipalities the power and authority to contract debt, borrow money, and issue bonds for public improvement projects as defined therein. Under these provisions, the Town may contract debt to pay for the cost of acquiring, constructing, reconstructing, improving, extending, enlarging, and equipping such projects or to refund bonds. The Town Charter authorizes the Town Council to establish by ordinance reasonable standards relating to the management of financial systems and practices.
C. 
Financing strategy. A financing strategy shall be adopted and periodically reviewed for appropriateness given the economic and fiscal environments. These strategies may consist of:
(1) 
Pay-as-you-go. This includes expenditures, typically out of operating expenditures, made over a short period of time, even for benefits that may accrue over a longer period.
(2) 
Pay-as-you-use. This strategy allows payment over a period of time that is approximately the same as the benefits. This strategy may include bonding which should proceed with the following steps:
(a) 
Obtain legal opinion in order to see if statutory permission exists to borrow for the intended purpose.
(b) 
Determine the cost of the intended project.
(3) 
Bond issuance.
(a) 
Determine the type and amount of bonds to be issued, period of time for maturity, and intention to sell or float the bonds. This analysis should include:
[1] 
Economic factors;
[2] 
Financial factors;
[3] 
Debt factors;
[4] 
Project risk;
[5] 
Management risk; and
[6] 
Structuring risk.
(b) 
Insurance should be obtained in order that in the event of a default by the issuer, the insurance company pays the investors.
(c) 
About one month before the scheduled sale of the bonds, the issuer should publish a prospectus describing the provisions of the bond issue and providing information that will permit investors to price the bonds properly.
(d) 
Determine the role of an underwriter, either through a competitive sale or negotiated sale. Awards made with a competitive sale should be consistent with the process outlined in the Town's Procurement Policy.[1]
[1]
Editor's Note: See Art. IX, Procurement Policy and Procedures.
D. 
Types of debt issued.
(1) 
Short-term. The Town may issue short-term debt which would include grant anticipation notes, tax anticipation notes, special assessment anticipation notes and bond anticipation notes. Such instruments will allow the Town to meet its cash flow requirements or provide increased flexibility in its financing programs.
(2) 
Long-term. The Town may only issue long-term debt general obligation bonds. The Town may also enter into long-term leases for public facilities, property, and equipment with a useful life greater than five years.
(3) 
Variable rate. The Town may issue debt that has variable interest rates in order to achieve interest savings. Periodically, the Director of Finance and Treasurer shall analyze each outstanding variable rate issue to determine if the issue should be converted to fixed rate debt.
E. 
Capital Improvements Plan. The Capital Improvements Plan (CIP), prepared by the Town Manager and reviewed by the Comprehensive Finance Advisory Committee (CFAC), shall determine the Town's capital needs. The program shall be a five-year plan for acquisition, development and/or improvement of the Town's facilities. Projects included in the CIP shall be prioritized, and the means for financing each shall be identified. The first year of the program shall be the Capital Budget, which shall become the basis for debt issuance. The CIP shall be revised and supplemented each year keeping with the Town's stated policies on debt management. The planning aspects of CIP development are found in § 401-27F, Capital budgeting.
F. 
Useful life. The CIP shall specify the period of usefulness for each project or capital asset to be acquired, built, and/or improved, and financed with bonds or other debt securities. The useful or reasonable life shall be computed from the anticipated date of the bonds, and this period shall not exceed the guidelines specified by state law. The Town shall not authorize the issuance of bonds or other long-term debt obligations for any improvements or capital purpose with a useful life of less than five years.
G. 
Structure of debt issues. The duration of a debt issue shall not exceed the economic or useful life of the improvement or asset that the issue is financing. The Town shall design the financing schedule and repayment of debt so as to take best advantage of market conditions and, as practical, to recapture or maximize its credit capacity for future use. In keeping with the stated goals of this debt management policy, the Town shall structure each general obligation issue (except refunding and minibond issues) to comply with the rapidity of debt repayment provisions in § 401-32F following.
H. 
Sale of securities. All debt issues shall be sold through a competitive bidding process based upon the lowest offered net interest cost (NIC), unless the Treasurer deems a negotiated sale the most advantageous to the Town.
I. 
Markets. The Town shall make use of both domestic and international capital markets as the products and conditions of each best fits the Town's financing needs. When practical in its financing program, the Town shall consider local or regional markets.
J. 
Credit enhancements. The Town may enter into agreements with commercial banks or other financial entities for the purpose of acquiring letters of credit, municipal bond insurance, or other credit enhancements that will provide the Town with access to credit under terms and conditions as specified in such agreements when their use is judged cost effective or otherwise advantageous.
A. 
State law: General Laws of Massachusetts, Chapter 44, Sections 1 through 28C et seq. The short title is "Municipal Finance."
B. 
Authority for debt. The Town may incur indebtedness or borrow money, and authorize the issuance of negotiable obligations, including refunding bonds, for any capital improvement or property, or any other lawful purpose except current expenses and permanent obligation.
C. 
Debt limitation. No bond issue shall be authorized that will cause the percentage of indebtedness to exceed 2 1/2% of the equalized valuation. The Town may authorize indebtedness in excess of 2 1/2%, but not in excess of 5% of the equalized valuation, provided that the Town gains approval from the Municipal Finance Oversight Board, which approval may be given either before or after such authorization. All authorized debts, except those expressly authorized by law to be incurred outside the debt limit, shall be considered in determining the limit of indebtedness under this section.
D. 
Certification. An annual debt statement shall be filed with the Director of Accounts in the Department of Revenue. The annual debt statement certifies the amount of gross debt, deductions from gross debt, net debt, equalized valuation and net debt expressed as a percentage of the equalized valuation as of the end of the previous fiscal year.
E. 
Debt issued to finance operating costs. The Town shall not finance general operating costs as a portion of a debt issue having maturities greater than one year. General operating costs include, but may not be limited to, those items normally funded in the Town's annual operating budget and having a useful life of less than one year.
F. 
Credit implications. Each annual version of the CIP shall be included in an annual fiscal indicators report (AFIR) that computes the absolute amounts of key economic indicators and the year-to-year trends for important financial ratios, including Moody's Selected Indicators of Municipal Performance ("medians") or other recognized industry standards. When issuing new debt, the Town should endeavor to neither cause a major deterioration in these key financial trends nor exceed credit industry benchmarks where applicable. Therefore, the following factors should be considered in developing debt issuance plans:
(1) 
Ratio of net bonded debt to estimated full value. The formula for this computation is net bonded debt, which is the total outstanding debt divided by the current estimated full value as determined by the Director of Accounts in the State Department of Revenue.
(2) 
Net bonded debt per capita. The formula for this computation is net bonded debt divided by the current population as determined by the Director of Planning.
(3) 
Ratio of net bonded debt to equalized value. The formula for this computation is net bonded debt, which is the total outstanding debt divided by the current assessed value as determined by the Directing of Assessing.
(4) 
Ratio of annual debt service to general government expenditures. The formula for this computation is annual debt service expenditures divided by general government (i.e., general and special revenue funds) expenditures.
(5) 
Rapidity of debt service repayment. Exclusive of refunding and minibond issues, the Town's general obligation general improvement bond issues shall be structured whereby at least 25% of the principal and interest for each issue is repaid in five years and 50% in 10 years.
(6) 
General fund balance. The Town shall maintain a minimum general fund budgetary fund balance (free cash) equal to 4% of total annual appropriations, exclusive of inter-fund transfers.
(7) 
Coverage ratios. The Town shall maintain legal and adequate debt service coverage ratios for any double-barreled bonds in each applicable fiscal year. The maintenance of the coverage ratios shall be consistent with preserving the credit rating for each particular issue while conducting ongoing cost of service studies to determine adequate user rate charges.
A. 
Financial disclosures. The Town shall prepare appropriate disclosures by the Securities and Exchange Commission, the federal government, the Commonwealth of Massachusetts, rating agencies, underwriters, investors, agencies, taxpayers, and other appropriate entities and persons to ensure compliance with applicable laws, regulations, and Table III herein (Credit implications).[1] These disclosures shall be reported in appropriate financial documents as enumerated in Appendices B and C.[2]
[1]
Editor's Note: See § 401-32F, Credit implications.
[2]
Editor's Note: Appendices B and C are included at the end of this chapter.
B. 
Review of financing proposals. All capital financing proposals involving a pledge of the Town's credit through the sale of securities, execution of loans or lease agreements or otherwise involving directly the lending or pledging of the Town's credit shall be referred to the Director of Finance who shall determine the financial feasibility of such proposal and make recommendations accordingly to the Town Manager.
C. 
Establishing financing priorities. The Directors of Finance and Treasury shall administer and coordinate the Town's debt issuance program and activities, including timing of issuance, method of sale, structuring the issue, and marketing strategies. The Directors of Finance and Treasury along with the Town's financial advisor shall meet, as appropriate, with the Town Manager regarding the status of the current year's program and to make specific recommendations.
D. 
Rating agency relations. The Town shall endeavor to maintain effective relations with the rating agencies. The Director of Finance and Treasurer, with the Town's financial advisor, shall meet with, make presentations to, or otherwise communicate with the rating agencies on a consistent and regular basis in order to keep the agencies informed concerning the Town's capital plans, debt issuance program, and other appropriate financial information.
E. 
Investment community relations. The Town shall endeavor to maintain a positive relationship with the investment community. The Director of Finance and Treasurer, and the Town's financial advisor shall, as necessary, prepare reports and other forms of communications regarding the Town's indebtedness, as well as its future financing plans. This includes information presented to the press and other media.
F. 
Refunding policy. The Town shall consider refunding outstanding debt when legally permissible and financially advantageous. A net present value debt service savings of at least 3% or greater must be achieved. As required by law, the refunding plan will be submitted to the Director of Accounts in the Department of Revenue for its positive findings.
G. 
Investment of borrowed proceeds. The Town acknowledges its ongoing fiduciary responsibilities to actively manage the proceeds of debt issued for public purposes in a manner that is consistent with Massachusetts statutes governing the investment of public funds and with the permitted securities covenants of related bond documents executed by the Town. The management of public funds shall enable the Town to respond to changes in markets or changes in payment or construction schedules so as to optimize returns, insure liquidity, and minimize risk.
H. 
Federal arbitrage rebate requirement. The Town shall maintain or cause to be maintained an appropriate system of accounting to calculate bond investment arbitrage earnings in accordance with the Tax Reform Act of 1986, as amended or supplemented, and applicable United States Treasury regulations related thereto. Such amounts shall be computed annually and transferred from the general fund (interest earnings revenue account) to a federal arbitrage rebate agency fund, or other appropriate account, for eventual payment to the United States Treasury.
A. 
A self-insurance reserve fund will be established and maintained to cover workers' compensation as authorized by Chapter 40, § 13A, of the Massachusetts General Laws and property losses as authorized by Chapter 40, § 13, of the Massachusetts General Laws.
B. 
In order to cover losses arising out this fund, an amount will be appropriated to cover the stop-loss premium and a sum to establish the fund for future losses.
C. 
It is the intention of this fund to cover all losses arising out of employment injury, fire, vandalism, burglary, theft and repairs. A stop-loss insurance through an insurance carrier will be provided for catastrophic losses.