ENDING CASH BALANCE
AS OF JUNE 30, 2018:
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:
Eliminated banking service charges for all associated accounts, saving the Town money.
Increased interest earnings on all associated accounts, making the Town money.
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
Cash Reconciliation to Accounting System:
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.
Credit Rating Increase: S&P AA+
S&P Global raised its long-term rating and underlying rating (SPUR) on Provincetown, Mass.' general obligation (GO) debt one notch to 'AA+' from 'AA'.
"The upgrade reflects the town’s conservative budgeting practices leading to a long history of positive financial operations in five of the last six years. Furthermore, we believe Provincetown’s prudent reserve levels insulates it from the cyclical nature of its seasonal economy." -S&P Global Ratings
Outstanding Debt as of June 30, 2018:
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:
DEBT INTEREST PAID IN FISCAL YEAR 2018:
Statement of Indebtedness as Reported to the Commonwealth of Massachusetts:
New Debt Authorized in 2018:
Replacement Fire Vehicles
Fire Department Boiler
New Long Term Debt Issued in 2018:
Harbor Hill Acquisition General Obligation Bond
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.