CITY EARNS BUDGET AWARD FOR MEETING HIGHEST PRINCIPLES OF GOVERNMENTAL BUDGETING

SOMERVILLE
–Somerville’s commitment to the highest principles of governmental budgeting
has been recognized in the City earning the Distinguished Budget Presentation
Award, a “significant achievement” according to awarding nonprofit Government Finance Officers Association of the
United States and Canada (GFOA).

In
earning the award, the City of Somerville met nationally recognized guidelines
for effective budget presentation. The GFOA reviewers evaluated the City’s FY14
budget, available on
the City Finance Department’s webpage, on 27 specific criteria to assess
how well the budget serves as a policy document, financial plan, operations
guide and communications device.

Earning
the Distinguished Budget Presentation Award—the only national awards program in
governmental budgeting—requires that the budget is rated as either proficient
or outstanding for all four of those categories, as well as for 14 of the 27
criteria identified as mandatory, including a coherent statement of city-wide
long-term financial policies and a budget message that articulates priorities
and issues for the upcoming year, among other criteria.

When
Mayor Joseph A. Curtatone took office, the City’s annual budget document was a
138-page document listing departmental line items with goals and objectives,
but no revenue accounts. Today, the City’s budget presentation is a 291-page
document that includes a narrative explanation of cost drivers; budgetary
changes; a historical spending analysis; detailed revenue and organizational
charts; enterprise and revolving funds; and performance metrics, among other
details that shape the budget and the City’s long-term financial planning.

“This award recognizes our commitment to transparency,
accountability and open government, and to a long-term vision that demonstrates
careful financial planning on behalf of Somerville’s taxpayers,” said Mayor
Curtatone. “Ten years ago, our budget lacked all the necessary details to form
a clear picture of where the city has been, where it is and where it is going.
We had no detailed capital budget. Today, we put forth a budget that holds us
accountable for our performance and details all the factors that go into our
financial planning, and we have a five-year capital budget that specifies how
we will pay for those improvements and purchases. Taxpayers deserve to know exactly
how their money is being managed by the City, how City Hall is operating and
how we are planning for the future. Our budget provides that clear and
transparent picture to all taxpayers, and the GFOA has recognized it.”

The
City of Somerville previously earned the highest form of recognition in
governmental accounting and financial reporting from the GFOA in October 2013 for
its comprehensive annual financial report (CAFR), which demonstrated a spirit
of full disclosure and motivated people to read the report. The nonprofit
awarded the City the Certificate
of Achievement for Excellence in Financial Reporting, its highest
recognition, after an impartial panel judged the City’s CAFR as meeting the
high standards of the program, specifically the spirit of transparency and full
disclosure that is a core value of City Hall under Mayor Curtatone.

The
GOFA is a nonprofit professional association serving over 17,800 government
finance professionals throughout North America and established the
Distinguished Budget Presentation Awards Program in 1984, to encourage and
assist state and local governments to prepare budget documents of the highest
quality, reflecting national guidelines and best practices. According to the most
recent award recipients listed on the GFOA website, in 2012 there were 16
Massachusetts agencies including 12 municipalities that received the award. For
budgets including FY 2013, approximately 1,340 entities from across the U.S.
and Canada are expected to receive the budget presentation award.