Financial Policies & Documents
State and local governments often engage one or more credit rating agencies with respect to the issuance of debt. A rating reflects the independent opinion of a particular agency on the credit worthiness of the issuer to make timely payments of principal and interest on the debt. If engaged, a credit rating agency will assign its rating to a particular debt issue and also to all the outstanding debt issued under the same security or credit pledge. The Town of Danvers currently maintains a AAA rating from S&P Global Ratings.
Launched in 2016, the Town’s Financial Summit is held annually as a way to step back and look at overall trends in the areas of revenue, expenditures, reserves, and liabilities. It allows major boards and stakeholders to view historical and comparative data as a means of assessing the past, present, and future financial picture of the town.
Financial policies are central to a strategic, long‐term approach to financial management. Some of the most powerful arguments in favor of adopting formal, written financial policies include their ability to help governments, institutionalize best practices, clarify strategic intent, define boundaries, support bond ratings, support long‐term thinking, and manage risks.
In 2016, Danvers adopted several policies encompassing various areas of finance, including reserves, fund balances, debt, and enterprise funds. In 2019, Danvers also adopted a Financial Policy Guideline document. The document was intended to establish a set of written financial management guidelines and not the procedures that identify specific methods and actions necessary to carry out these policies. Topics included key financial areas such as budgeting, debt, and risk management.