City of Somerville header
File #: 212055    Version: 1
Type: Mayor's Request Status: Approved
File created: 6/9/2021 In control: City Council
On agenda: 6/10/2021 Final action: 6/24/2021
Enactment date: 6/10/2021 Enactment #: 212055
Title: Requesting approval to create the Sewer Capital Stabilization Fund.
Code sections: Stabilization Fund -
Attachments: 1. Powers & Sullivan Audit Comment on Water-Sewer Stabilization

  Agenda Text

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Requesting approval to create the Sewer Capital Stabilization Fund.

 

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Official Text

To the Honorable City Council:

 

I hereby request, subject to the approval of your Honorable Council, the establishment of a Sewer Capital Stabilization Fund under the provisions of Chapter 40, Section 5B of the Massachusetts General Laws, effective July 1, 2021.

 

The Sewer Capital Projects Stabilization Fund is a capital reserve account. The purpose of the fund is to finance water infrastructure capital projects for which debt would ordinarily be incurred under M,G.L. Chapter 44, Sections 7 and 8.

 

The City's External Auditing Firm, Powers & Sullivan, CPAs, recommends that the existing Water/Sewer Capital Stabilization Fund be separated into two distinct funds. The Powers & Sullivan Management Comment is attached.

 

The Balance of the Water/Sewer Capital Stabilization will be apportioned between the new Water Capital 

Stabilization Fund and the new Sewer Capital Stabilization Fund.  Transfer requests will be presented to your Honorable Council.

 

Thank you for your consideration.

 

Joseph A. Curtatone

Mayor