Agenda Text
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Requesting the acceptance of the provisions of MGL c40, ss 22A, 22B and 22C relative to Parking Meter Revenues.
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Official Text
To the Honorable Board:
I hereby request that this Board accept the provisions of MGL Chapter 40, Sections 22A, 22B, and 22C relative to parking meter revenues for the purpose of segregating such revenues in a special revenue fund.
Before the Municipal Modernization Act, parking meter or other parking receipts had to be reserved for appropriation under MGL c. 40, secs. 22A, 22B and 22C. As of the November 7, 2016 effective date of the Act, however, those receipts are unrestricted and unreserved general fund revenue unless the city or town accepts provisions in those statutes in order to credit them to a “receipts reserved for appropriation” special revenue fund. Any revenue received before November 7, 2016 remains in the receipts reserved special revenue fund to be appropriated accordingly.
If a city or town wants to continue treating parking revenues as “receipts reserved for appropriation,” its legislative body must accept the provisions in the statutes. It has long been the practice in Somerville to apply parking meter receipts as estimated receipts when setting its fiscal year tax rate. Parking Meter Receipts are used to reduce the tax levy by providing an offset to Traffic & Parking expenses. The City wishes to continue this practice. The FY2018 Proposed Budget assumes that $2.4 million in Parking Meter Receipts will be used to reduce the FY2018 Tax Levy.
Acceptance of these statutes will allow the City to apply Parking Meter Receipts received on or after November 7, 2016 to the reduction of the FY2018 Tax Levy. Acceptance must be voted by June 30, 2017 to be in effect by FY2018.
Respectully Submitted,
Joseph A. Curtatone, Mayor