City of Methuen Annual Report: 2012

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C i t y o f M e t h u e n A n n u a l R e p o r t : 2 0 1 2The range of reimbursement rates for new project grant applications submitted to the Authority onor after July 1, 2007 has been reduced to between 40% and 80% of approved project costs. TheAuthority promulgated new regulations with respect to the application and approval process forprojects submitted after July 1, 2007. The Authority expects to pay grants for such projects asproject costs are incurred pursuant to project funding agreements between the Authority and themunicipalities. None of the interest expense incurred on debt issued by municipalities to financetheir portion of the costs of new projects will be included in the approved project costs eligible forreimbursement.Motor Vehicle Excise: An excise is imposed on the registration of motor vehicles (subject toexemptions) at a uniform rate of $25 per $1,000 of valuation. The excise is collected by and for thebenefit of the municipality in which the motor vehicle is customarily kept. Valuations are determinedby a statutory formula based on manufacturer's list price and year of manufacture. Bills not paidwhen due bear interest at 12 percent per annum. Provision is also made for the non-renewal ofregistration and operating license by the registrar of motor vehicles.Enterprise Funds: The City of Methuen operates a combined Enterprise Fund for its provision ofwater and sewer services. Water services are provided to approximately 95% of the City and userfees are charged on the basis of metered consumption billed quarterly. The water rate wasincreased September 2007, May 2008 and last set on July 8, 2008. There is a service charge of$15.00 to each account and a usage charge for residential users on an increasing scale from $1.62 to$3.25 per 100 metered cubic feet thereafter based on level of consumption. The commercial usagecharge is a flat rate of $3.55 per 100 metered cubic feet.Approximately 94% of Methuen's residents are served by the City's sanitary sewer system. Currentrates were set in September 2007. The quarterly bills are determined by metered waterconsumption at a rate of $2.15 per 100 cubic feet for residential users and at a rate of $2.25 forevery 100 cubic feet for commercial users.Other: Other major sources of revenue include licenses and permits and interest income.Investment of City FundsInvestments of funds of cities and towns, except for trust funds, are generally restricted byMassachusetts General Laws Chapter 44, §55. That statute permits investments of available revenuefunds and bond and note proceeds in term deposits and certificates of deposits of banks and trustcompanies, in obligations issued or unconditionally guaranteed by the federal government or anagency thereof with a maturity of not more than one year, in repurchase agreements with a maturityof not more than 90 days secured by federal or federal agency securities, in participation units in theMassachusetts Municipal Depository Trust (“MMDT”), or in shares in SEC-registered money marketfunds with the highest possible rating from at least one nationally recognized rating organization.MMDT is an investment pool created by the Commonwealth. The State Treasurer is the sole trustee,and the funds are managed under contract by an investment firm under the supervision of the StateTreasurer’s office. According to the State Treasurer the Trust’s investment policy is designed tomaintain an average weighted maturity of 90 days or less and is limited to high-quality, readily21
C i t y o f M e t h u e n A n n u a l R e p o r t : 2 0 1 2marketable fixed income instruments, including U.S. Government obligations and highly-ratedcorporate securities with maturities of one year or less.Trust funds, unless otherwise provided by the donor, may be invested in accordance with §54 ofChapter 44, which permits a broader range of investments than §55, including any bonds or notesthat are legal investments for savings banks in the Commonwealth. The restrictions imposed by§§54 and 55 do not apply to City and City retirement systems.A breakdown of current investments may be obtained from the City Treasurer.Pension funds are under the jurisdiction of the Methuen Contributory Retirement System.AuditsThe City's financial statements are audited by Melanson, Greenwood & Company, Certified PublicAccounts. Reference is made to the City's audit report and copies of previous audits are availableupon request from the City Auditor.The audit speaks only as of its date, and only to the matters expressly set forth herein. The auditorshave not been engaged to review this Annual Report or to perform audit procedures regarding thepost-audit period, nor have the auditors been requested to give their consent to the inclusion oftheir report findings here. Except as stated in their report, the auditors have not been engaged toverify the financial information set out in the annual report and are not passing upon and do notassume responsibility for the sufficiency, accuracy or completeness of the financial informationpresented herein.Financial StatementsSet forth on the following pages are Governmental Funds Balance Sheets for the fiscal years endedJune 30, 2012, and Statements of Revenues, Transfers, Expenditures and Changes in General FundBalance for fiscal years ended June 30, 2012, Said statements have been extracted from the auditedfinancial statements of the City.22
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City of Methuen Annual Report: 2012

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