Free Cash represents a community's unrestricted funds from operations of the previous fiscal year, available for appropriation after certification by the Massachusetts Department of Revenue (DOR). It is generated when actual revenue collections exceed budget estimates, and when expenditures and encumbrances are less than appropriations. Free Cash can be used for non-recurring expenditures, capital projects, or to bolster reserves. However, it cannot be expended until certified by the DOR.

Related Resources:

• Massachusetts DOR: The Importance of Free Cash
• Massachusetts DOR: Free Cash Calculations
• Massachusetts DOR: Free Cash Use

An Enterprise Fund is a separate accounting mechanism for municipal services for which a fee is charged in exchange for goods or services, such as water, sewer, or trash disposal. This allows for clear identification of the total cost of providing a service, including direct, indirect, and capital costs. Establishing an Enterprise Fund requires acceptance by a vote of town meeting or city council and ensures that the service's revenues and expenditures are segregated from other governmental activities.

Related Resources:

• Massachusetts DOR: Enterprise Funds Overview
• Massachusetts General Laws: Chapter 44, Section 53F½ - Enterprise Funds
• Massachusetts DOR: Enterprise Funds Manual

Concord issues municipal bonds to finance large capital projects such as infrastructure improvements, school buildings, and other significant public works. This process involves:

1. Authorization: Approval by a two-thirds vote at Town Meeting.
2. Issuance: Selling bonds to investors to raise the necessary capital.
3. Repayment: Paying back the principal and interest over a specified period, typically through property tax revenues.

Issuing bonds allows the town to undertake essential projects without depleting current funds, spreading the cost over time.

Related Resources:

• Massachusetts Department of Revenue: Municipal Debt
• Massachusetts Debt Management: Debt Management Overview

A bond rating assesses the creditworthiness of a municipality, indicating the risk level to investors. Ratings are assigned by agencies like Moody's and Standard & Poor's, based on factors such as financial health, economic conditions, and management practices. A higher bond rating signifies lower risk, allowing the town to borrow at lower interest rates, reducing the cost of financing capital projects.

Related Resource:

• Massachusetts DOR: Debt and Other Financial Indicators

Capital Planning involves identifying and prioritizing long-term investments in infrastructure, facilities, and equipment. It ensures that the town can maintain and improve its assets efficiently and cost-effectively. Concord maintains a rolling 5-10 year Capital Improvement Plan (CIP), reviewed annually to address the community's evolving needs.

Related Resource:

• Massachusetts Division of Local Services: Developing the Capital Plan and Managing Debt
• Massachusetts Division of Local Services: Capital Improvement Planning Guide

An annual financial audit is an independent examination of the town's financial statements and practices. It ensures accuracy, compliance with laws and regulations, and effective internal controls. The audit provides transparency and accountability, fostering public trust in the town's financial management.

Related Resources:

• Massachusetts Department of Revenue: Massachusetts DOR Audit Process
• Massachusetts Office of the Comptroller: Annual Comprehensive Financial Reports (ACFR)