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HomeMy Public PortalAbout2018-03-12 Special Town Meeting Final Warrant and Summary Town of Brewster SPECIAL TOWN MEETING WARRANT for MARCH 12, 2018 at 7:00 PM STONY BROOK ELEMENTARY SCHOOL 384 UNDERPASS ROAD Please bring this copy of the warrant to Town Meeting Large print copies of the warrant are available at the Brewster Town Offices March 2018 1 TOWN OF BREWSTER SPECIAL TOWN MEETING WARRANT MARCH 12, 2018 TABLE OF CONTENTS A INDEX 2 B RECREATIONAL MARIJUANA FAQ’S 3 C 2018 SPECIAL TOWN MEETING WARRANT ARTICLES 5 ARTICLE DESCRIPTION SPONSOR PAGE 1 Zoning Bylaw Amendment/Recreational Marijuana Establishments Planning Board 5 2 Zoning Bylaw Amendment/Table of Use Regulations Planning Board 8 3 Local Tax Option/Recreational Marijuana Tax Board of Selectmen 10 4 Town Code Amendment/Recreational Marijuana Retailers Board of Selectmen 10 5 Other Business Board of Selectmen 11 D TOWN MODERATOR’S RULES 13 E GLOSSARY OF FINANCIAL TERMS 15 March 2018 2 Frequently Asked Questions - Recreational Marijuana Q1: When did recreational marijuana become legal in Massachusetts? The Massachusetts Marijuana Legalization Initiative, also known as Question 4, was on the November 8, 2016, ballot in Massachusetts. It was approved. Out of 7,389 registered Brewster voters, 6,687 votes were cast on Question 4, resulting in a 51.8% to 48.2% vote against the Massachusetts Marijuana Legalization Initiative in Brewster . Q2: What were Articles 10 & 11 on the November 2017 Brewster Town Meeting warrant? As authorized by MGL Chapter 94G Section 3(a)(2), Article 10 proposed to ban recreational marijuana establishments in Brewster. Article 11 proposed a temporary moratorium on these uses until December 31, 2018. Both articles failed to receive the required 2/3 majority vote of Town Meeting. Q3: What is a Recreational Marijuana Establishment? Recreational Marijuana Establishments, as defined by MGL Chapter 94G Section 1, include: Marijuana Cultivator, Marijuana Product Manufacturer, Independent Testing Laboratory, Marijuana Retailer, and any other licensed Recreational Marijuana Establishmen t. Q4: Who is the Cannabis Control Commission (CCC)? The CCC is a 5-member state regulatory and licensing board created to oversee marijuana legalization and issue licenses to firms that seek to sell marijuana products. Q5: What is the Brewster Planning Board’s role with Recreational Marijuana? The Planning Board is developing zoning regulations for these uses in advance of the Cannabis Control Commission’s scheduled April 1, 2018 date for license applications. Zoning regulations will identify the zoning district(s) where these uses may be permitted, how they will be permitted, and reasonable standards of review. Q6: What is a “Special Permit”? MGL Chapter 40A, Section 9 defines special permits as follows: “Zoning ordinances or by-laws shall provide for specific types of uses which shall only be permitted in specified districts upon the issuance of a special permit. Special permits may be issued only for uses which are in harmony with the general purpose and intent of the ordinance or by-law, and shall be subject to general or specific provisions set forth therein; and such permits may also impose conditions, safeguards and limitations on time or use.” Uses regulated by special permit in Brewster include, but are not limited to; restaurants, hotels and motels, drive-through’s and medical marijuana dispensaries. Q7: When will sales of recreational marijuana begin? Question 4 set the date for licensing cannabis shops to begin on January 1, 2018. However, Massachusetts state legislators voted to move the date to July 1, 2018. The Cannabis Control Commission was schedule to begin accepting licenses October 1, 2017, but moved that date to March 2018 3 April 1, 2018. Recreational sales are expected to begin sometime after July 1, 2018 for license holders that have completed their local permitting. Timeline of Events May 5, 2014: Medical Marijuana Dispensaries Adopted in Brewster (ATM, Article 22) November 8, 2016: Massachusetts Marijuana Legalization (State Ballot Question 4) November 13, 2017: Brewster Town Meeting Vote on Articles 10 (Ban) & 11 (Moratorium) December 20, 2017: Planning Board Special Meeting January 10, 17, 24, 2018: Planning Board Public Meetings February 14, 2018: Planning Board Public Hearing on Recreational Marijuana Zoning Bylaws March 12, 2018: Special Town Meeting – Vote on Brewster Zoning & General Bylaws for Recreational Marijuana Establishments April 1, 2018: Cannabis Control Commission schedule to begin accepting licenses for Marijuana Establishments July 1, 2018: Recreational sales for approved license holders may begin March 12, 2018: Special Town Meeting – Vote on Brewster Zoning & General Bylaws for Recreational Marijuana Establishments April 1, 2018: Cannabis Control Commission schedule to begin accepting licenses for Marijuana Establishments July 1, 2018: Recreational sales for approved license holders may begin March 2018 4 TOWN OF BREWSTER SPECIAL TOWN MEETING MARCH 12, 2018 Barnstable, ss To: Roland W. Bassett, Jr. Constable of the Town of Brewster Greetings: In the name of the Commonwealth of Massachusetts, you are hereby directed to notify and inform the Town of Brewster inhabitants qualified to vote in Town affairs to meet in the Cafeterium at the Stony Brook Elementary School, 384 Underpass Road, on Monday, March 12, 2018, next, at 7:00 p.m. o’clock in the evening, then and there to act upon the following articles: ZONING BYLAW AMENDMENT/Recreational Marijuana Establishments ARTICLE NO. 1: To see if the Town will vote to amend Chapter 179, Zoning Article IX, Special Regulations of the Brewster Town Code to include Recreational Marijuana Establishments. § 179-38.2 Recreational Marijuana Establishments a. Recreational Marijuana Establishments (RME) shall conform to 935 CMR 500.000: Adult Use of Marijuana, and shall only be permitted pursuant to this Section and the requirements stated herein. b. The special permit granting authority for RMEs shall be the Planning Board. c. A special permit granted under this section shall have a term limited to the duration of the applicant’s ownership or lease of the premises for an RME, as licensed by the Massachusetts licensing authority. Any new license for an existing RME location or transfer of an existing license to a new owner of an RME shall require a new special permit pursuant to Section 179-51 and site plan review pursuant to Section 179-64 of the Brewster zoning bylaws. § 179-38.3 Applicability of Regulations a. The cultivation, production, processing, manufacturing, assembly, packaging, retail or wholesale sale, trade, distribution or dispensing of marijuana is prohibited unless licensed by all applicable Massachusetts licensing authorities and permitted as a RME under this section. b. Pursuant to MGL c.94G, §3(a)(2), the number of recreational Marijuana Retailers shall be limited to one (1) establishment in Brewster which is fewer than 20 per cent of the March 2018 5 number of licenses issued within the Town for the retail sale of alcoholic beverages not to be drunk on the premises where sold under MGL c.138 §15 (package store licenses). Any Medical Marijuana Dispensary, licensed or registered not later than July 1, 2017 engaged in retail sale of marijuana or marijuana products, shall be exempt from this limitation for purposes of converting from a Medical Marijuana Dispensary to a recreational Marijuana Retailer. c. The number of any type of RMEs, except recreational Marijuana Retailers, shall be limited to not more than two (2) of the same type of RME in Brewster. d. On-site consumption of recreational marijuana products at RMEs shall be prohibited unless permitted by a local ballot initiative process, as allowed by MGL 94G §3(b). e. RMEs are commercial uses and shall be located in stand-alone structures, not connected to any other building or use. f. Hours of operation for recreational Marijuana Retailers shall not exceed the Alcoholic Beverages Control Commission (ABCC) maximum hours of operation for liquor licenses not to be drunk on premises pursuant to MGL 138 §15 but may be limited by conditions of the special permit. § 179-38.4 Definitions Any term not specifically defined herein shall have the meaning as defined in MGL c.94G, §1 and the Cannabis Control Commission Regulations 935 CMR 500.00 governing Adult Use Marijuana. a. ''Recreational Marijuana Establishment'' shall mean a marijuana cultivator, marijuana testing facility, marijuana product manufacturer, marijuana retailer or any other type of licensed marijuana-related business as defined in MGL c.94G, §1 or the Cannabis Control Commission Regulations 935 CMR 500.00. b. Marijuana Retailer - an entity licensed by the Cannabis Control Commission to purchase and deliver recreational marijuana and marijuana products from marijuana establishments and to deliver, sell or otherwise transfer recreational marijuana and marijuana products to marijuana establishments and to consumers, as defined in MGL c.94G, §1 and the Cannabis Control Commission Regulations 935 CMR 500.00 governing Adult Use Marijuana. c. “Medical Marijuana Dispensary” - an entity registered by the Department of Public Health or the Cannabis Control Commission that acquires, cultivates, possesses, processes, transfers, transports, sells, distributes, dispenses, or administers medical use marijuana, products containing medical use marijuana, related supplies, or educational materials to registered qualifying patients or their personal caregivers. March 2018 6 § 179-38.5 General Requirements a. No RME shall be located within 500 feet, as measured from each lot line of the subject lot, of the following pre-existing uses: a K-12 educational use; childcare center; public park; playground; or children’s camp. b. Applicants for an RME shall provide the licensing agent’s approved security plan to the Police Chief and Fire Chief prior to the granting of a Special Permit. c. An approved Host Community Agreement shall be required prior to the granting of a Special Permit for a RME. § 179-(XX)(Reserved) Or take any other action relative thereto. (Planning Board) (Two Thirds Vote Required) Motion: Move to approve as printed in the warrant. COMMENT At the November 13, 2017 Special Town Meeting, Brewster voters were presented with two zoning articles for recreational marijuana establishments. Article 10 proposed to prohibit (or “ban”) marijuana establishments in Brewster. Article 10 did not receive the required 2/3 majority vote to pass. Article 11 proposed a temporary moratorium on marijuana establishments until December 31, 2018. Article 11 did not receive the required 2/3 majority vote to pass. The Massachusetts Cannabis Control Commission will begin accepting applications for marijuana establishments, including: cultivators, retailers, product manufacturers, independent testing laboratories, and any other licensed marijuana establishment on April 1, 2018. The Town does not have the ability to ban these uses and must now adopt local zoning regulations in order to exert local control over the time, place, and manner in which these uses will be permitted in Brewster. Further, Massachusetts General Law Ch. 94G, Section 3 allows Towns to impose certain limitations on the number of establishments that may be permitted. The zoning articles developed by the Planning Board recognize these uses under the bylaw, identifies the zoning districts where they may be allowed by special permit, and imposes limitations on the number of establishments that may be allowed. Absent local zoning to regulate these uses, there would be no local limitation on the number of these uses permitted in Brewster, and the time, place and manner in which they may be permitted is u ncertain. Selectmen: Yes 4, No 0, Abs 0 Finance Committee: Yes 5, No 0, Abs 0 Planning Board Yes 6, No 0, Abs 0 March 2018 7 ZONING BYLAW AMENDMENT/Table of Use Regulations ARTICLE NO. 2: To see if the Town will vote to amend Chapter 179-11 Table of Use Regulations, subsection B (Table 1) to add and/or amend the following uses to the Village Business (VB), Commercial High Density (C-H) and Industrial (I) zoning districts to the Brewster Town Code. R-R R-L R-M C-H V-B I MRD PWS-CF Marijuana Cultivator - - - S - S - - Marijuana Product Manufacturer - - - S - S - - Independent Testing Laboratory - - - S - S - - Marijuana Retailer - - - S S - - - Any Other Licensed Recreational Marijuana Establishment - - - S - S - - Medical Marijuana Dispensary (MMD) - - - S S - - - Or to take any other action relative thereto. (Planning Board) (Two Thirds Vote Required) Motion: Move to approve as printed in the warrant. COMMENT The purpose of this zoning bylaw amendment is to:  Add Recreational Marijuana Establishments in the Brewster Zoning Bylaw, Chapter 179- 11, Table of Use Regulations  Prohibit Medical Marijuana Dispensaries in the Industrial District Selectmen: Yes 4, No 0, Abs 0 Finance Committee: Yes 5, No 0, Abs 0 Planning Board Yes 6, No 0, Abs 0 March 2018 8 March 20189 LOCAL TAX OPTION/Recreational Marijuana Tax ARTICLE NO. 3: To see if the Town will vote to accept the provisions of M.G.L. Chapter 64N, Section 3 to impose a local sales tax upon the sale or transfer of marijuana or marijuana products by a marijuana retailer operating within the Town to anyone other than a marijuana establishment at a rate of three percent (3%) of the total sales price received by the marijuana retailer as consideration for the sale of marijuana or marijuana products. A marijuana retailer shall pay a local sales tax imposed under this section to the commissioner of revenue at the same time and in the same manner as the sales tax due to the Commonwealth . Or take any other action relative thereto. (Board of Selectmen) (Majority Vote Required) Motion: Move to approve as printed in the warrant. COMMENT This article establishes a local sales tax of 3% upon the sale or transfer of marijuana or marijuana products by a marijuana retailer as permitted under MGL c.64N, §4(4). Selectmen: Yes 4, No 0, Abs 0 Finance Committee: Yes 5, No 0, Abs 0 TOWN CODE AMENDMENT/Recreational Marijuana Retailers ARTICLE NO. 4: To see if the Town will vote to amend the Brewster Town Code by adding Chapter 59, Recreational Marijuana Retailers, as follows: §59-1 Definitions a. Marijuana Retailer - an entity licensed by the Cannabis Control Commission to purchase and deliver recreational marijuana and marijuana products from marijuana establishments and to deliver, sell or otherwise transfer recreational marijuana and marijuana products to marijuana establishments and to consumers, as defined in MGL c.94G, §1 and the Cannabis Control Commission Regulations 935 CMR 500.00 governing Adult Use Marijuana. b. “Medical Marijuana Dispensary” - an entity registered by the Department of Public Health or the Cannabis Control Commission that acquires, cultivates, possesses, processes, transfers, transports, sells, distributes, dispenses, or administers medical use marijuana, products containing medical use marijuana, related supplies, or educational materials to registered qualifying patients or their personal caregivers. §59-2 Number of Recreational Marijuana Retailers Pursuant to MGL c.94G, §3(a)(2), the number of recreational Marijuana Retailers shall be limited to one (1) establishment in Brewster which is fewer than 20 per cent of the number of March 2018 10 licenses issued within the Town for the retail sale of alcoholic beverages not to be drunk on the premises where sold under MGL c.138 §15 (package store licenses). Any Medical Marijuana Dispensary, licensed or registered not later than July 1, 2017 engaged in retail sale of marijuana or marijuana products, shall be exempt from this limitation for purposes of converting from a Medical Marijuana Dispensary to a recreational Marijuana Retailer. Or to take any other action relative thereto. (Board of Selectmen) (Majority Vote Required) Motion: Move to approve as printed in the warrant. COMMENT This article establishes a Town bylaw pursuant to MGL c.94G, §3(a) (2) limiting the number of Recreational Marijuana retailers to one (1) establishment in Brewster, which is fewer than the 20% of the number of licenses issued within the Town for the retail sale of alcohol beverages not to be consumed on premises where sold under MGL c. 138 §15 (package store licenses). Any Medical Marijuana Dispensary, licensed or registered not later than July 1, 2017 engaged in retail sale of marijuana or marijuana products, shall be exempt from this limitation for purposes of converting from a Medical Marijuana Dispensary to a recreational Marijuana Retailer. Selectmen: Yes 4, No 0, Abs 0 Finance Committee: Yes 5, No 0, Abs 0 OTHER BUSINESS ARTICLE NO. 5: To act upon any other business that may legally come before this meeting; or to take any other action relative thereto. (Board of Selectmen) (Majority Vote Required) Motion: Motion to be provided at the Special Town Meeting. And you are hereby directed to serve this Warrant with your doings thereon to the Town Clerk at the time and place of said meeting as aforesaid. Given under our hand and Seal of the Town of Brewster affixed this __th day of February 2018. March 2018 11 ___________________________________ Peter G. Norton, Chair ___________________________________ Cynthia A. Bingham, Vice-Chair ___________________________________ David C. Whitney, Clerk ___________________________________ James W. Foley ___________________________________ John T. Dickson I, Roland W. Bassett Jr, duly qualified Constable for the Town of Brewster, hereby certify that I served the Warrant for the Special Town Meeting of March 12, 2018 by posting attested copies thereof, in the following locations in the Town on the __th day of February, 2018. Brewster Town Offices Café Alfresco Brewster Ladies Library Brewster Pizza House The Brewster General Store Millstone Liquors U. S. Post Office _________________________________ Roland W. Bassett, Jr. Constable March 2018 12 MODERATOR’S RULES REGARDING TOWN MEETING Priority shall be given to registered voters of the town for admission to all town meetings, whether annual or special meetings. Therefore, the following rules shall apply: 1. Prior to admission to the hall, persons desiring admission shall check in with the Registrars of Voters, who will be present at the main entrance with voter registration lists. 2. Non-voters, who desire to be present, will be seated in the area designated as the non - voter section. If voters present need seating, then the non-voters will have to leave the meeting hall. 3. Non-voters will not address the town meeting without the unanimous consent of all voters present and will not participate in voting. TOWN MEETING PROCEDURE THE MODERATOR has absolute control of the town meeting. GENERAL LAWS CHAPTER 39 SECTION 15: The Moderator shall preside and regulate the proceedings, decide all questions of order, and make public declaration of all votes. The Moderator recognizes speakers from the floor, and while t hey are speaking allows no interruptions except when a point of order is raised. WHEN A VOTER WISHES TO SPEAK he may rise, say, "Mr. Moderator," and wait for recognition. Then, with the microphone, please give your name. The voter may continue with due reg ard to reasonable brevity, as long as he speaks directly to the question under discussion. THERE WILL BE NO SMOKING OR STANDING in the meeting hall. ANYTIME THE MOTION TO BE VOTED ON IS UNCLEAR, ask the Moderator before voting. VOTERS WILL PLEASE HOLD THEIR BREWSTER VOTER TAG in their right hand, so that the tellers when counting hand votes will count them. NO PERSON IS TO INDULGE IN PERSONALITIES OR DEROGATORIES. Let us maintain decorum and reason together. MOTIONS MAIN MOTIONS are always on articles in the town warrant. They are made, seconded, and then opened for consideration. SECONDARY MOTIONS are motions which refer to main motions. Secondary motions usually amend, postpone, or limit consideration. AMENDMENTS may be offered by any voter to the motion under discussion, provided the scope of the original motion is not enlarged or altered. Amendments are seconded and discussed; they require a majority vote to carry (pass). An amendment need not be voted upon, if the proposed change is agreeable to the proponents of original motion. Voters must submit amendments in legible writing. March 2018 13 POSTPONE TO REFER TO COMMITTEE "COMMIT" if changes in a main motion are numerous, take too much time, or require additional information, it is wise to commit the article to a committee. This secondary motion should specify which board or committee. If proposing a new committee, specify how many members, how appointments are to be made and when the committee should report. POSTPONE TO A DEFINITE TIME: defers action on a main motion to a stated hour, usually during the meeting. At the hour specified, it is returned to the floor when a motion is made that the deferred article be considered. "LAY ON TABLE" intends to temporarily lay aside an article. Not debatable; two-thirds vote carries. An article not taken from table before the meeting adjourns is dead. To be considered at a subsequent meeting, it must reappear in the warrant for that meeting. "TAKE NO ACTION" "PASS OVER" "POSTPONE INDEFINITELY" are debatable motions and require majority vote. The intent is to defeat the motion. LIMIT CONSIDERATION LIMIT DEBATE. This secondary motion requests a vote to be taken at a specific time. Requires a 2/3 majority vote. "MOVE THE PREVIOUS QUESTION" demands an immediate vote on any motion under consideration without further debate on the motion. May not be debated or amended. Requires 2/3 vote to carry. If it carries, we vote on the main motion that we voted to end the debate on. POINT OF ORDER IF A VOTER QUESTIONS THE LEGALITY or propriety of the proceedings, he may rise, interrupt the speaker and say, "Mr. Moderator, I rise to a point of order" or "question of privilege." VOTES ON MAIN MOTIONS Usually majority of those attending carries (passes). EXCEPTIONS 2/3 MAJORITY VOTE REQUIRED borrowing of money appropriations for land purchases; land purchase for public domain; sale or abandonment of unneeded land; abandonment of projects for which money has been borrowed; appropriation for celebration of settlement o r incorporation; zoning bylaws. 4/5 USUALLY REQUIRED payment of a bill for which insufficient appropriations made in a previous year, at the annual town meeting. A 9/10 vote is required at a special town meeting. POSTPONE INDEFINITELY requires a majority vote, may be debated, and may not interrupt the speaker. March 2018 14 GLOSSARY OF FINANCIAL TERMS 1. Appropriation – An authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in amount and as to the time when it may be expended. Only town meeting can authorize money appropriated for one purpose to be used for another. Any amount that is appropriated may be encumbered (see encumbrance). Any part of an annual operating appropriation not spent or encumbered by June 30 automatically reverts to the undesignated fund balance that may result in free cash. If departments know of remaining unpaid bills at the close of the fiscal year and properly notifies the Town Accountant (MGL Ch. 41 ss. 58), the departmental appropriation is encumbered. This action extends the annual spending author ization until such time that the bill is paid or it is decided not to spend the funds. If these encumbrances are not acted on within ninety days, the Town Accountant generally notifies the department and closes them out. A special purpose appropriation, on the other hand, may carry forward from year to year until spent for the designated purpose or transferred by town meeting vote to another account. 2. Audit – An examination of systems, procedures, and financial data by a certified public accountant, reporting on the fairness of financial statements and compliance with statutes and regulations. The audit is a valuable management tool for evaluating the fiscal performance of a community. 3. Available Funds – Funds established through previous appropriations or resulting from financial operations. They may be appropriated to meet unforeseen expenses, or large non - recurring or capital expenditures. Examples include free cash, stabilization fund, overlay surplus, water surplus, and enterprise retained earnings. 4. Betterments (Special Assessments) – Whenever a limited area of a community receives benefit from a public improvement (e.g., water, road, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred. Each parcel receiving benefit from the improvement is assessed for a proportionate share of the cost of such improvements. The proportionate share may be paid in full, or the property owner may request the assessors to apportion the betterment over a period of up to 20 years. Over the lifetime of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid. 5. Bond – A written promise to pay a specified sum of money, called the face value (par value) or principal amount, at a specified date in the future, called the maturity date, together with periodic interest at a specified rate. The difference between a note and a bond is that the latter runs for a longer period of time. 6. Bond Anticipation Note (Ban) – A short-term note to provide cash for initial project costs issued in anticipation of bond proceeds. BANs may be issued for a period not to exceed five years, provided principal repayment begins after two years. Communities with approved projects on the School Building Assistance (SBA) priority list may defer principal payments up to five years (approved annually in outside sections of the budget). The final maturity date of the project borrowing, beginning from the date the short-term note was issued, may not exceed the term specified by statute. BANs are full faith and credit obligations. 7. Bond Authorized And Unissued – Bond authorized but not yet sold. Issuance is contingent only on action by the Town Treasurer and a majority of the Board of Selectmen. March 2018 15 8. Bond Counsel – An attorney or law firm engaged to review and submit an opinion on the legal aspects of a municipal bond or note issue. 9. Bond Issue – Generally represents the sale of a certain number of bonds at one time by a governmental unit. 10. Bond Rating (Municipal) – A credit rating to help investors determine the risk of losing money in a given fixed-income investment. Agencies specializing in municipal bonds assign a rating, designated by letters or a combination of letters and numerals, based on their opinion of the future ability, legal obligation, and willingness of a bond issuer to make timely debt service payments. 11. Budget – A plan of financial operation embodying an estimate of proposed revenues and expenditures for a given period and the proposed means of financing them. A budget may be “preliminary” (the financial plan presented to the town meeting), or “final” (the plan appro ved by that body). The budget should be separated into basic units, either by department, program, or service. Formatting the budget in this way helps local officials and citizens make policy decisions when allocating scarce resources. It is also import ant to include as much information as possible concerning the output or accomplishments expected of a given program or department during the year. 12. Capital Improvements Program – A comprehensive plan for planning a community’s capital expenditures. It coordinates community planning, fiscal capacity and physical development. While all of the community’s needs should be identified in the program, there is a set of criteria that prioritizes the expenditures. The capital program is a plan for capital expe nditures that usually extends at least five years beyond the capital budget. 13. Capital Outlay Expenditure Exclusion – A vote by a community at an election to exclude payments for a capital project from the levy limit. The exclusion may temporarily increase the levy above the levy ceiling. 14. Cash – Currency, coin, checks and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits. 15. Cash Management – The process of managing a local government’s money in order to ensure maximum cash availability and maximum yield on short-term investment of idle cash. 16. Cemetery Perpetual Care – Funds donated by individuals for the care of gravesites. According to MGL, funds from this account must be invested and spent as directed by perpetual care agreements. If no agreements exist, the interest (but not principal) may be used as directed by the Cemetery Commissioners for the purpose of maintaining cemeteries. 17. Chapter 90 Highway Funds – The state legislature authorizes and issues transportation capital bonds every few years. In each Transportation Bond, funds are apportioned to communities based upon a formula under the provisions of MGL Ch. 90 ss. 34, hence the terms Chapter 90 funds. The Chapter 90 highway formula is comprised of three variables: local road mileage as certified by the Massachusetts Highway Department (MHD), employment figures from the Department of Employment and Training (DET), and population estimates from the U. S. Census Bureau. Under this formula, those communities with a larger number of road miles receive proportionately more aid than those with fewer road miles. These funds are reimbursed to communities based upon certified expenditure reports submitted to MHD. 18. Cherry Sheets – Named for the cherry colored paper on which they were originally printed, the Cherry Sheets are the official notification of the next fiscal year’s state aid and assessments March 2018 16 to communities and regional school districts from the Commissioner of Reven ue. State aid to municipalities and regional school districts consist of two major types – distributions and reimbursement. Distributions provide funds based on formulas while reimbursements provide funds for costs incurred during a period for certain programs or services. In addition, communities may receive “offset items” that must be spent on specific programs. Cherry Sheet assessments are advance estimates of state assessments and charges. Local assessors are required to use these figures in settin g the local tax rate. Because these figures are estimates, it should be noted that based upon filing requirements and/or actual information, the final aid or assessment may differ. 19. Cherry Sheet Offset Items – Local aid accounts that may be spent without appropriation in the budget, but which must be spent for specific municipal and regional school district programs. Current offset items include racial equality grants, school lunch grants, and public libraries grants. 20. Collective Bargaining – The negotiations between an employer and union representative regarding wages, hours, and working conditions. 21. Conservation Fund – This fund may be expended for lawful conservation purposes as described in MGL Ch. 40 ss. 8C. It may also be expended for damages related to the taking of land by eminent domain provided that such taking has first been approved by two -thirds vote of town meeting. 22. Contingent Appropriation – An appropriation that authorizes spending for a particular purpose upon the occurrence of a later event. The grant of spending authority made by an appropriation must be certain at the time of the vote and, therefore, contingent appropriations are not generally permissible. Under MGL Ch. 59 ss. 21C(m), however, towns may make appropriations from the tax levy, available funds or borrowing, contingent upon the subsequent passage of a Proposition 2-½ override or exclusion question for the same purpose. 23. Debt Authorization – Formal approval by a two-thirds vote of town meeting to incur debt, in accordance with procedures stated in MGL Ch. 44. 24. Debt Exclusion – A vote by a municipality at an election to exclude debt service payments for a particular capital project form the levy limit. The amount necessary to cover the annual debt service payment is added to the levy limit for the life of the debt only. A debt exclusion may temporarily increase the levy above the levy ceiling. 25. Debt Limit – The maximum amount of debt that a municipality may have authorized for qualified purposes under state law. 26. Debt Service – The cost usually stated in annual terms, of the principal repayment and interest of any particular issue. 27. Deficit – The excess of expenditures over revenues during an accounting period. Also refers to the excess of the liabilities of a fund over its assets. 28. Education Reform Act Of 1993 – An act that seek to remedy educational funding inequities between local communities by providing adequate state funding over a seven year period for all local and regional school districts and by mandating equity based upon a particular community’s ability to pay. One of the Act’s major goals is to improve student achievement. 29. Eminent Domain – The power of a government to take property for public purposes by condemnation provided that fair compensation is paid to the owner. This method is frequently March 2018 17 used to obtain real property that cannot be purchased from owners by means of a voluntary transaction. 30. Encumbrance – Obligations in the form of purchase orders, contracts, or salary commitments that are chargeable to an appropriation and for which a part of the appropriations is reserved. 31. Estimated Receipts – An estimate of state and local miscellaneous receipts based upon the previous year’s receipts that assessors deduct from the gross amount to be raised in order to arrive at the tax levy. 32. Excess And Deficiency – Also called the “surplus revenue” account, this is the amount by which cash, accounts receivable, and other assets exceed a regional school district’s liabilities and reserves as certified by the Director of Accounts. The calculation is made based upon the balance sheet that is submitted by the district’s auditor, accountant, or comptroller as of June 30. The regional school committee must apply certified amounts exceeding five percent of the district’s prior year operating and capital costs to reduce the assessment on member cities and towns. 33. Excess Levy Capacity – The difference between the levy limit and the amount of real and personal property taxes actually levied in a given year. Annually, the Board of Selectmen must be informed of excess levy capacity and their acknowledgment must be submitted to t he Department of Revenue when setting the tax rate. 34. Fiscal Year – Since 1974, the Commonwealth and municipalities have operated on a budget cycle that begins July 1 and ends June 30. The designation of the fiscal year is that of the calendar year in which the fiscal year ends. For example, the 2000 fiscal year is July 1, 1999 to June 30, 2000 and is usually written as FY2000. Since 1976, the federal government has had a fiscal year that begins October 1 and ends September 30. 35. Fixed Costs – Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service or interest costs. 36. Foundation Budget – The target imposed by the Education Reform Act of 1993 for each school district, defining the spending level necessary to provide an adequate education for all students. 37. Free Cash – Unrestricted funds from operations of the previous fiscal year that are certified by the Director of Accounts as available for appropriation. Remaining funds include unexpended free cash from the previous year, receipts in excess of estimates shown on the tax recapitulation sheet, and unspent amounts in budget line-items. Unpaid property taxes and certain deficits reduce the amount that can be certified as free cash. The ca lculation of free cash is based upon the balance sheet as of June 30, which is submitted by the Town Accountant. A community should maintain a free cash balance to provide a hedge against unforeseen expenditures and to ensure there will be an adequate res erve to prevent sharp fluctuations in the tax rate. Maintenance of an adequate free cash level is not a luxury but a necessary component of sound local fiscal management. Credit rating agencies and other members of the financial community expect municipalities to maintain free cash reserves and make judgments regarding a community’s fiscal stability, in part, on the basis of free cash. 38. Fund – An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations. March 2018 18 39. Fund Accounting – Organizing the financial records of a municipality into multiple funds. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues and expenditures) are accounted for independently in accordance with specific regulations, restrictions and limitations. Examples of funds include the general fund and enterprise funds. 40. General Fund – The fund used to account for most financial resources and activities governed by the normal town meeting appropriation process. 41. General Obligation Bonds – Bonds issued by a municipality that are backed by the full faith and credit of its taxing authority. 42. Hotel/Motel Excise – A local option since 1985 that allows a community to assess a tax on room occupancy. The community may levy up to 4% of the taxable rents of hotels, motels and lodging houses in that community. 43. Indirect Cost – Costs of a service not reflected in the service’s operating budget. An example of an indirect cost of providing water service would be health insurance costs for water department employees. A determination of these costs is necessary to analyze the total cost of service delivery and a Mutual Agreement for reporting and paying indirect costs is required between the Selectboard and respective Department / Committee . 44. Interest – Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. 45. Interest Rate – The interest payable, expressed as a percentage of the principal available, for use during a specified period of time. It is always expressed in annual terms. 46. Law Enforcement Trust Fund – A revolving fund established to account for a portion of the proceeds from the sale of property seized from illegal drug-related activities. Funds may be expended to defray certain qualified law enforcement costs as outlined in MGL Ch. 94C ss. 47. Funds from this account may be expended by the Police Chief without further appropriation. 47. Levy – The amount a community raises through the property tax. The levy can be any amount up to the levy limit. 48. Levy Ceiling – The maximum levy assessed on real and personal property may not exceed 2 ½ percent of the total full and fair cash value of all taxable property (MGL Ch. 59 ss. 21C). Property taxes levied may exceed this limit only if the community passes a capital exclusion, a debt exclusion, or a special exclusion. 49. Levy Limit – The maximum amount a community can levy in a given year. The limit can grow each year by 2 ½ percent of the prior year’s levy limit plus new growth and any overrides. The levy limit can exceed the levy ceiling only if the community passes a capital expenditure exclusion, debt exclusion, or special exclusion. 50. Line-Item Budget – A budget that focuses on inputs of categories of spending, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget. 51. Local Aid – Revenue allocated by the commonwealth to cities, towns, and regional school districts. Estimates of local aid are transmitted to cities, towns, and districts annually by the “Cherry Sheets”. Most Cherry Sheet aid programs are considered revenues of the municipality’s or regional school districts’ general fund and may be spent for any purpose, subject to appropriation. 52. Local Receipts – Locally generated revenues, other than real and personal property taxes and enterprise fund revenues. Examples include motor vehicle excise, investment income, March 2018 19 hotel/motel tax, fees, rentals, and charges. Annual estimates of local receipts are shown on the tax rate recapitulation sheet. 53. Motor Vehicle Excise (Mve) – Every motor vehicle and trailer registered in the Commonwealth is subject to the MVE unless expressly exempted. MVE is imposed for the privilege of registering a motor vehicle. Registering a motor vehicle automatically triggers the assessment of the excise. 54. Municipal(S) – Municipal refers to any state or subordinate governmental unit. “Municipals” (i.e., municipal bonds) include not only the bonds of all local subdivisions, such as cities, towns, school districts, special districts, but also bonds of the state and agencies of the state. 55. Municipal Revenue Growth Factor (Mrgf) – An estimate of the percentage change in a municipality’s revenue growth for a fiscal year. It represents the combined percentage incre ase in the following revenue components; automatic 2 ½ percent increase in the levy limit, estimated new growth, the change in selected unrestricted state aid categories, and the change in selected unrestricted local receipts (Education Reform Act of 1993). 56. Net School Spending (Nss) – School budget and municipal budget amounts attributable to education, excluding long-term debt service, student transportation, school lunches and certain other specified school expenditures. A community’s NSS funding must equal or exceed the NSS Requirement established annually by the Department of Education (DOE) (Education Reform Act of 1993). 57. New Growth – The taxing capacity added by new construction and other increases in the property tax base. New growth is calculated by multiplying all increases in value which are not the result of revaluation by the tax rate of the previous fiscal year, for example, FY2000 new growth is determined by multiplying the value on January 1, 1999 by the FY1999 tax rate. Assessors must submit documentation of new growth to the BLA annually before setting the tax rate. Documentation should be retained for five years in the event of a BLA audit. 58. Operating Budget – A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year. 59. Overlay – (Overlay Reserve or Allowance for Abatements and Exemptions). An account established annually to fund anticipated property tax abatements, exemptions and uncollected taxes in that year. The overlay reserve is not established by the normal appropriation process, but rather is raised on the tax rate recapitulation sheet. 60. Overlay Surplus – Any balance in the overlay account in excess of the amount remaining to be collected or abated can be transferred into this account. Within ten days of a written request by the chief executive officer of a city or town, the Board of Assessors must provide a certification of the excess amount of overlay available to transfer. Overlay surplus may be appropriated for any lawful purpose. At the end of each fiscal year , unused overlay surplus is “closed” to surplus revenue. 61. Override – A vote by a community at an election to permanently increase the levy limit. An override vote may increase the levy limit no higher than the levy ceiling. The override question on the election ballot must state a purpose for the override and the dollar amount). 62. Override Capacity – The difference between a community’s levy ceiling and its levy limit. It is the maximum amount by which a community may override its levy limit. March 2018 20 63. Payments In Lieu Of Taxes – An agreement between a municipality and an entity not subject to taxation, such as charitable or educational organizations, in which the payer agrees to make a voluntary payment to the municipality. By law, a city or town must make such payment to any other community in which it owns land used for public purposes. 64. Receipts Reserved – Proceeds that are earmarked by law and placed in separate accounts for appropriation for particular purposes. For example, parking meter proceeds may be appropriated to offset certain expenses for parking meters and the regulation of parking and other traffic activities. 65. Reserve Fund – An amount set aside annually within the budget of a city (not to exceed 3% of the tax levy for the preceding year) or town (not to exceed 5% of the tax levy for the preceding year) to provide a funding source for extraordinary or unforeseen expenditures. In a town, the Finance Committee can authorize transfers from this fund for “extraordinary or unforeseen” expenditures. Other uses of the fund require budgetary transfers by town meeting. 66. Revenue Anticipation Borrowing – Cities, towns and districts may issue temporary notes in anticipation of taxes (TAN’s) or other revenue (RAN’s). The amount of this type o f borrowing is limited to the total of the prior year’s tax levy, the net amount collected in motor vehicle and trailer excise in the prior year and payments made by the Commonwealth in lieu of taxes in the prior year. According to MGL Ch. 44 ss. 4, cities, towns and districts may borrow for up to one year in anticipation of such revenue. 67. Revenue Anticipation Note (Ran) – A short-term loan issued to be paid off by revenues, such as tax collections and state aid. RANs are full faith and credit obligations. 68. Revenue Bond – A bond payable from and secured solely by specific revenues and thereby not a full faith and credit obligation. 69. Revolving Fund – Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service. For departmental revolving funds, MGL Ch 44 ss. 52E ½ requires each revolving fund must be established by ordinance or charter and stipulates that each fund must be re-authorized each year at annual town meeting action, and that a limit on the total amount that may be spent form each fund must be established at that time. The aggregate of all revolving funds may not exceed ten percent of the amount raised by taxation by the town in the most recent fiscal year, and not more t han one percent of the amount raised by taxation may be administered by a single fund. Wages and salaries for full-time employees may be paid from the revolving fund only if the fund is also charged for all associated fringe benefits. Revolving funds for other programs as provided by statute are still allowed, and a departmental revolving fund may be implemented in addition to or in conjunction with other existing statutory revolving funds, provided that the departmental revolving fund does not conflict with provisions of other revolving funds. 70. Sale Of Cemetery Lots Fund – A fund established to account for proceeds of the sale of cemetery lots. The proceeds may only be appropriated to pay for the cost of the land, its care and improvement or the enlargement of the cemetery under provisions of MGL Ch. 144 ss. 15. 71. Stabilization Fund – A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose. Communities may appropriate into this fund in any year an amountand any interest shall be added to and become March 2018 21 a part of the fund. A two-thirds vote of town meeting is required to appropriate money from the Stabilization Fund. 72. State Aid Anticipation Note (Saan) – A short-term loan issued in anticipation of a state grant or aid (MGL Ch. 44 ss. 6A). 73. State House Notes – Debt instruments for cities, towns, counties and districts certified by the Director of Accounts. State House Notes, payable annually, are usually limited to maturities of five years. The notes are generally less costly and easier to issue than conventional issues for borrowing. They are commonly used for temporary loans and smaller long-term issues. 74. Tax Rate – The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property. 75. TAX RATE RECAPITULATION SHEET (Also Recap Sheet) – A document submitted by a city or town to the Department of Revenue in order to set a property tax rate. The recap sheet shows all estimated revenues and actual appropriations that affect the property tax rate. The recap sheet should be submitted to the Department of Revenue by September 1 (in order to issue the first-half semiannual property tax bills before October) or by December 1 (in order to issue the third quarterly property tax bills before January 1). 76. Five Year Valuation Certification – The Commissioner of Revenue is required to review local assessments every five years and to certify that they represent FFCV. The Bureau of Local Assessments is responsible for this process. 77. Trust Fund – In general, a fund held for the specific purpose stipulated by a trust agreement. The Town Treasurer acts as a custodian of trust funds and invests and expends such funds as stipulated by trust agreements or as directed by the Commissioners of Trust Funds or by town meeting. Both principal and interest may be used if the trust is established as an expendable trust. For non-expendable trust funds, interest but not principal may be expended as directed. 78. Underride – A vote by a community to permanently decrease the tax levy limit. As such, it is the exact opposite of an override. 79. Unfunded Pension Liability – Unfunded pension liability is the difference between the value assigned to the retirement benefits already earned by a municipality’s employees and the assets the local retirement system will have on hand to meet these obligations. The dollar value of the unfunded pension liability is driven by assumptions about interest rates at which a retirement system’s assets will grow and the rate of future costs of living increases to pensioners. 80. Uniform Municipal Accounting System (UMAS) – The Department of Revenue regards UMAS as the professional standard for municipal account system that conforms to Generally Accepted Accounting Principles modern municipal accounting in Massachusetts. Among the benefits of conversion to UMAS is increased consistency in reporting and record keeping and enhanced comparability of data among cities and towns. 81. Unreserved Fund Balance (Surplus Revenue Account) – The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a “stockholders’ equity” account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as “accounts receivable” may be taxes receivable and uncollected. March 2018 22 82. Warrant – An authorization for an action. For example, a town meeting warrant establishes the matters that may be acted upon by that town meeting. A treasury warrant authorizes the treasurer to pay specific bills. The assessors’ warrant authorizes the tax collector to collect taxes in the amount and from the persons listed, respectively. 83. Water Surplus – For water departments operating under MGL Ch. 41 ss. 69B, any revenues in excess of estimated water receipts or unspent water appropriations closeout to a water surplus account. Water surplus may be appropriated to fund water-related general and capital expenses or to reduce water rates. 84. Waterways Improvement Fund – An account into which fifty percent of the proceeds of the boat excise is deposited. Use of these proceeds is limited to certain waterway expenses as outlined in MGL Ch. 40 ss. 5G. March 2018 23