About the Finance Department
Notice to all Holders of City of Somerville Minibonds Regarding Neighborly Securities (“Neighborly”) Customer Accounts – December 11, 2019 Update
Notice to all Holders of City of Somerville Minibonds Regarding Neighborly Securities (“Neighborly”) Customer Accounts – November 19, 2019 Update
The City of Somerville was made aware that Neighborly Securities is going out of business and in an attempt to notify its customers, sent the following e-mail message to account holders on November 12, 2019. The City of Somerville is actively working to identify additional information to provide to Somerville Minibond Holders. Updates will be added to this page as they become available.
There will be no interruption of payments by the City of principal and interest on the minibonds. Funds are being held in customer accounts by Pershing LLC for the benefit of the minibond owners and the minibond owner accounts are insured through the Securities Investor Protection Corporation (“SIPC”) for up to $500,000 per account.
Though there will be no interruption of payments by the City, it is imperative that you act upon the following Neighborly e-mail immediately to avoid your account being orphaned and subsequently incurring unnecessary fees.
Should you require assistance or have questions or concerns, please contact City Treasurer Linda Dubuque at her direct line (617) 625-6600 x-3510 or by e-mail [email protected]. Please also feel free to stop by the treasury department in City Hall.
Due to a recent change in circumstances, paperwork has been filed to close Neighborly Securities.
During this transition, your accounts continue to be fully held and custodied at Pershing, LLC ("Pershing"). However, you need to transfer your holdings to an external brokerage by December 27th.
The transfer process is known as an ACAT (Automated Customer Account Transfer). To complete this transfer, you should reach out to the new firm, (many have a specific ACAT department), send them the account information they request, and then they will complete the process on their end.
If you complete this process in 30 calendar days (by December 12th), any ACAT/transfer fees will be waived. If you do not complete the transfer within this timeframe, a $65 transfer fee may apply. If you do not transfer your account to a new brokerage, the account will become "orphaned"—this means Pershing will provide liquidation only services to assist in closing your account, and your account may be subject to additional fees.
If you don’t already have another brokerage account, you can check in with your local bank to see if they support securities holdings.
We’re grateful for your support and hope that you continue to make investments in the places you live and care about.
We are committed to ensuring a seamless transition for our clients and are available to answer any questions you have regarding this process.
For access to your monthly/quarterly statements, you can continue to log in at neighborly.com and sign into your account with your credentials.
For any account or servicing related inquiries, please contact [email protected] and someone will promptly respond back, or you may call 866-432-1170.
Securities offered through Neighborly Securities, Member FINRA, SIPC and registered with MSRB. Always consider your investment objectives before investing. Learn more at https://neighborly.com/terms. You received this email as a registered user of Neighborly. If you'd no longer like to receive emails from us, click here.
2019 Neighborly Corporation
Neighborly FAQs and Helpful Information
How do I contact Neighborly?
Neighborly contact information:
email [email protected]
telephone (866) 432-1170
I got an email from Neighborly – what does it mean?
If you received an email from Neighborly, you likely have purchased Somerville Minibonds with a Neighborly account that you created at the time of purchase. (Residents could purchase Minibonds by either opening a Neighborly account or by using their own non-Neighborly broker-dealer.) Neighborly is going out of business. Neighborly is informing you that you’ll need to transfer your Neighborly account to another broker-dealer by December 12, 2019. The last day to transfer your Neighborly account is December 27, 2019.
Is my money safe?
Yes, your money is safe. There will be no interruption of payments by the City of principal and interest on the Minibonds. These funds are being held in customer accounts by Pershing LLC, a custodian, for the benefit of the Minibond owners. Also, Minibond owner accounts are insured through the Securities Investor Protection Corporation (“SIPC”) for up to $500,000 per account.
Does it cost money to transfer my Neighborly account?
Neighborly tells us that if you transfer by December 12, 2019, there is no charge. After December 12, 2019 a $65.00 fee will be charged (this is an ACA/Transfer fee). The City is trying to have these fees reduced or removed, but please note that there is no guarantee that these charges will be changed.
What if I purchased Somerville Minibonds with my own brokerage account?
Residents had the option of buying Somerville Minibonds by either opening a Neighborly account or by using their own non-Neighborly broker-dealer. If you do not have a Neighborly account, then your account is not affected by Neighborly going out of business and you do not need to take any action.
How do I transfer my Minibond account from Neighborly?
Fortunately, we have heard from other Minibond holders that transferring your Minibond account can be done relatively easily. The first step is to identify a new broker-dealer. There are a number of broker-dealers in Somerville and the surrounding area, and the bank where you have your checking or savings accounts may be able to provide broker-dealer services or otherwise assist you. We have been told that many broker-dealers charge no fee to set up an account and have no minimum dollar amount for deposit.
Neighborly has informed us that once you set up an account with your new broker-dealer, you should tell your new broker-dealer that you wish to transfer your Neighborly account to your new account. Have your Neighborly monthly statement or Neighborly account number available and bring a photo ID. It may be helpful to bring the Neighborly email notice as well. This transfer process is called ACAT (Automated Customer Account Transfer).
Can the City recommend a broker-dealer?
No, the City is not legally allowed to give any sort of financial advice. There are a number of broker-dealers in Somerville and the surrounding area, and the bank where you have your checking or savings account may be able to provide broker-dealer services or otherwise assist you.
I can’t find my statements – what do I do?
For access to your monthly statements, until December 27, 2019, you can continue to login at www.neighborly.com and sign into your account with your credentials. Your monthly statement from Neighborly includes helpful information about your account.
What happens if I don’t transfer my Neighborly account by December 27, 2019?
After December 27, 2019, Neighborly will no longer exist and your account will be held by Pershing LLC, a custodial agent, as an “orphaned” account. This means that the only service Pershing is able to provide is to sell your Minibonds or transfer them to another broker-dealer if you call and instruct them to do so. At this time, it hasn’t been decided what fees, if any, might apply to an orphaned account, and the City is working to have any potential fees reduced or removed for a period after December 27, 2019 (a grace period). Please note that there is no guarantee that these charges will be changed. Pershing’s telephone number is (201) 413-3333.
Can I sell my Minibonds?
Yes, you can sell your Minibonds before December 27, 2019 by contacting Neighborly and telling them that you want to sell your Minibonds. Neighborly will be able to further assist you with any questions you may have regarding selling and/or pricing your Minibonds. Neighborly can be reached by email at [email protected] or by telephone at (866) 432-1170. After December 27, 2019 you can sell your Minibonds by contacting Pershing at (201) 413-3333.
How long will it take to transfer my Minibonds to another broker-dealer?
Neighborly tells us that the new broker is required to initiate and submit the transfer and that once the transfer is submitted it takes up to 3 business days for the process to be completed.
Is there someone at the City that I can speak with?
Yes, you can call Linda Dubuque at (617) 625-6600 x3510 or email her at [email protected].
- Neighborly is not affiliated with the City of Somerville in any way, other than as the broker-dealer for the sale of Somerville Minibonds.
- The information that we are providing comes from Neighborly or Pershing.
- The City wants to be as helpful as possible to its resident Minibond holders, but the City cannot legally recommend any financial institutions or give any financial advice. If you don’t have a financial advisor, the bank where you have your checking or savings accounts may be able to help you. Some banks also have a broker-dealer division.
The Finance Department is responsible for the planning, oversight, and reporting of the City's operating and capital finances. These functions are carried out by the Department's five divisions:
Budgets & Appropriations
Capital Investments & Projects
Ratings, Reports & Statements
Visual Budget Explorer
Budgets & Appropriations
Year to Date (YTD) Budget Reports (PDF)
- YTD Expense Budget Report
- YTD Revenue Budget Report
- YTD School Budget Report
- YTD Sewer Budget Report
- YTD Water Budget Report
- YTD Dilboy Field Budget Report
- YTD Kennedy Pool Budget Report
- YTD Veterans Memorial Ice Rink Budget Report
Fiscal Year Budgets (PDF)
- 2020 (Proposed)
School Department Budgets (PDF)
Capital Investments & Projects
Capital Investment Plan (CIP) Project Lists
- Capital Investment Plan June 2019 Project List
- Capital Investment Plan June 2019 Summary Memo
- Water and Sewer Capital Investment Plan March 2019
Ratings, Reports & Statements
- Comprehensive Annual Finance Report (CAFR)
- Official Bond Statement
- Bond Rating: Standard & Poor's - May 2019
- Bond Rating: Moody's - May 2018
- Bond Rating: Standard & Poor's - November 2017
- Bond Rating: Moody's - July 2017
- Bond Rating: Standard & Poor's - September 2016
- Bond Rating: Standard & Poor's - May 2016