TREASURY MANAGEMENT: FY 2018


ENDING CASH BALANCE

AS OF JUNE 30, 2018:



$ 45,145,987.67

Cash Management Changes in 2018

Over the last fiscal year, the Town of Provincetown moved all of its operational (deposit, payroll, accounts payable) accounts from TD Bank to both Cape Cod Five Cents Savings Bank and Seamen's Bank.


This change accomplished three tasks:


  1. Eliminated banking service charges for all associated accounts, saving the Town money.

  2. Increased interest earnings on all associated accounts, making the Town money.

  3. Promoted the local economy by banking with Cape Cod-based financial institutions.


As of June 30, 2018, the Town of Provincetown banks with seven financial institutions, all of which are headquartered in Massachusetts.


Hingham Savings Bank - Investment Account

State Retirement Board - OPEB Trust Fund

Cape Cod Five - Land Bank Account

Cape Cod Five - Gift/Agency/Trust Accounts

Seamen's Bank - Community Preservation Act

Hingham Savings Bank - Stabilization Fund

Bartholomew & Co. - JA Francis Scholarship Fund

Seamen's Bank - Parking Deposit Account

Cape Cod Five - Main Deposit Account

Cape Cod Five - Pier Corp. Operating Account

Bartholomew & Co. - Capt. Oliver Scholarship Fund

Bartholomew & Co. - JA Henry Trust Fund

Cape Cod Five - Affordable Housing Trust

Century Bank - Admin. Consent Order Accounts

Cape Cod Five - Vendor/AP Account

Bartholomew & Co. - Cemetery Perpetual Care

Cape Cod Five - Library Gift/Trust Accounts

Cape Cod Five - Pier Corp. Savings Account

Cape Cod Five - Payroll Account

Cape Cod Five - Deposit Account (Deputy Coll.)

Cape Cod Five - Law Enforcement Trust Fund

Century Bank - Deposit Account (Online/Lockbox)

Unibank - Fundraising/Recreation Account


$ 29,603,684.99

$ 3,237,709.65

$ 2,749,047.73

$ 1,391,356.81

$ 1,381,182.28

$ 1,152,628.62

$ 1,123,374.21

$ 674,310.75

$ 565,353.09

$ 505,832.01

$ 490,374.62

$ 449,748.26

$ 445,032.25

$ 359,548.20

$ 343,461.25

$ 279,048.59

$ 216,119.61

$ 79,579.96

$ 46,043.90

$ 19,397.60

$ 13,994.79

$ 13,927.62

$ 5,230.88


Cash Reconciliation to Accounting System:

General Fund Interest Earnings: Fiscal Years 2014-2018

Interest Earnings - General Fund

All operational funds held by the Town of Provincetown that are considered in excess of what is immediately needed to pay current expenses are invested in liquid money market accounts. The Town currently yields 1.9% and only deposits excess operational funds into fully-insured Massachusetts-based banks, who subsequently lend money back out into the community.


Total General Fund interest earnings for fiscal year 2018 were $151,846.61, an increase of 619.88% over the last fiscal year.

Safety, Liquidity, and Yield (in that order) are our top priorities.

Taxes & Fees Collected in Fiscal Year 2018:

Watch to Learn About Your Real Estate Tax Bill:

Tax-Title Collections (Back-Taxes)

If a real estate tax bill remains unpaid for an extended period of time, the Collector will place a lien on the property. The interest rate for the tax bill then increases to 16%, and the Town may foreclose on the property if the bill is not paid off.


The Town of Provincetown was owed $ 828,500.00 at the end of fiscal year 2017. That amount was reduced to $585,500.00 at the end of fiscal year 2018, a reduction of 29%.


Including interest, $564,288.65 was received for back-taxes in 2018.

Outstanding Debt as of June 30, 2018:

$55,098,421.38

The Commonwealth of Massachusetts sets the debt limit for municipalities at 5% of the valuation of the Town, meaning the total assessed value of its properties. For January 1, 2018, the valuation of Provincetown was $3,183,634,130.00.


This means that our debt limit is $159,181,706.50.


Certain borrowing purposes are considered "outside of the debt limit" due to their specific nature (such as Water Systems and School Buildings). Of our $55,098,421.38 in total debt, $13,611,433.46 is considered "outside of the debt limit."


With the remaining $41,486,987.92 inside of our debt limit, we have issued 26% of our allowable long-term debt.


DEBT PRINCIPAL PAID/RETIRED IN FISCAL YEAR 2018:

$4,453,718.26

DEBT INTEREST PAID IN FISCAL YEAR 2018:

$1,176,968.48

Statement of Indebtedness as Reported to the Commonwealth of Massachusetts:

New Debt Authorized in 2018:

  • Shoreline Protection

    • $200,000.00

  • Replacement Fire Vehicles

    • $1,000,000.00

  • Fire Department Boiler

    • $105,513.00


New Long Term Debt Issued in 2018:

  • Harbor Hill Acquisition General Obligation Bond

    • $10,555,000.00


The Town also issued $1,015,000.00 in short-term debt (bond anticipation notes) for Water, School Building, and Police Station. These notes will eventually be issued as long-term debt or paid off to reduce the interest expense to the Town.


Questions/Comments?

Treasurer's Office

260 Commercial Street

Provincetown, MA 02657

(508) 487-7000 x521

AWilliams@Provincetown-MA.gov

Hours:

Monday through Thursday, 8:00am to 5:00pm

Friday, 8:00am to 12:00pm