The following is a glossary of terms that are used in connection with Town Meeting. Any time someone uses a term at Town Meeting that you do not understand, you may rise to a "point of information" and ask for an explanation or definition.

APPROPRIATION: An authorization by Town Meeting to make obligations and payments from the treasury for a specific purpose.

ASSESSED VALUATION: The value set on real or personal property by the Board of Assessors as basis for setting the tax rate of the Town.

CAPITAL BUDGET: A multi-year plan of spending for large capital items requested by Town Departments. Most of these items are voted on individually as warrant articles.

CHERRY SHEET: A form from the Mass. Department of Revenue showing all the State and County charges and reimbursements to the Town as certified for the following year.

DEBT SERVICE: Payment of interest and principal to holders of the Town's debt instruments such as bonds.

FISCAL YEAR: A 12 month period, commencing July 1, to which the Annual Budget applies. The monies appropriated at the May Town Meeting are for the next "fiscal year" starting July 1st.

FREE CASH: Free cash is neither free nor cash. This is a dollar value, usually certified by the State in late summer, that represents unspent and unencumbered income and receivables from the previous year. Once certified, this money may be spent at a Town Meeting.

GENERAL FUND: The major Town fund created with town receipts and tax revenues from which the majority of Town expenses are met.

GROWTH REVENUE: The amount of property tax revenue that the Town can add to its allowable tax levy as a result of new construction in the Town. Tax dollars added to the tax base.

OVERLAY ACCOUNT: An amount of property tax revenue that the Town can add to its allowable tax levy as a result of new construction in the Town. Tax dollars added to the tax base.

RESERVE FUND: A fund appropriated each year to be used by the Finance Committee to meet "extraordinary or unforeseen expenditures: that do not warrant the calling of a Special Town Meeting".

REVOLVING FUND: Monies, usually derived from fees, that may be used without formal appropriation for special use.

STABILIZATION FUND: A "rainy day" fund set aside to meet future capital expenses in the Town (example: a fire engine). It must be appropriated at a town meeting by a majority vote and can only be spent after a 2/3 vote.

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