CITY RELEASES FIRST-EVER COMPREHENSIVE ANNUAL FINANCIAL REPORT
Report details all City financial and investment accounts and comparisons; Provides greater transparency, in line with Mayor’s goals of open government
SOMERVILLE - Mayor Joseph A. Curtatone announced today the newest addition to the City of Somerville's open
government and cost-saving initiatives. The City has compiled its first-ever Comprehensive Annual Financial Report (CAFR), which presents a complete
accounting of all government funds, investments, and operating activities. The CAFR complements the annual City budget by providing more detailed demographic
and statistical information, as well as annual budget comparisons to help the reader better understand the financial condition of the City. The CAFR also has
the potential to improve the City's bond rating, which would reduce the cost of interest payments for the City over time.
The development of the CAFR is a significant continuation of Mayor Curtatone's ongoing efforts to maintain open, transparent
government. It contains information on real property and other fixed assets, long-term obligations, and investments held outside the government treasury.
The CAFR also provides information that is used by investment companies such as Moody's Investors Services and Standard and Poor's Corporation to determine the
City's fiscal integrity and set bond rates. By developing a CAFR, the potential for the City to improve its already high bond rating will increase. Currently,
Somerville's bond rating as determined by Moody's is Aa2, the third highest rating. Moving to a higher bond rating would reduce borrowing costs for the
City, which would eventually create savings on interest payments.
The 120-page City document, available at www.somervillema.gov/departments/finance, includes three sections: (1) Introduction, including a summary and transmittal
letter; (2) Financial, including an independent auditor's report, management discussion and analysis, financial statements and notes; and (3) Statistical,
including additional financial, economic, and demographic information.
"We need more transparency and accountability in government so that people know how their money is being spent," said Mayor
Curtatone. "The CAFR is a thorough accounting to the citizens of Somerville on the use of public resources and funds. It assists
users in assessing the level of services the government can provide and its ability to meet its obligations. At the same time, I've made smart cost savings
and efficient delivery of services a central goal of my administration, and if an open government initiative also has the potential to reduce costs, this is a
true win-win for the City."
The CAFR also highlights interesting trends within City finances, displaying increases in the City's fund equity, as well as
detailing debt financing. The City's fund equity, the difference between the City's assets and liabilities, has been increasing dramatically over the last
decade, going from just over $10 million in 2002 to over $40 million in 2013. This is the key indicator that financial and lending institutions measure when determining the financial strength of a City.
The CAFR was prepared by the City's Finance Department Staff.
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