The Board of Selectmen held an information session at Town Hall Wednesday evening, beginning at 7 p.m. At the session, two handouts were provided: one to explain funding sources, and one to explain the union and non-union employee compensation and benefits settlements that are to be funded at next week’s Special Town Meeting. The information provided is summarized below. For more details, as well as the questions and answers that were covered in the session, see related article Q&A with Selectmen draws few questions.
Funding Sources
Under our form of government there are choices to be made on how to fund certain expenditures or unanticipated costs. Generally the various methods allowed under Massachusetts General Law include the following:
- Increasing taxes, which may require an Override. Overrides require a majority vote of both Town Meeting and the electorate, and the amount is permanenently added to the tax base.
- Appropriating funds from certified Free Cash. This is considered a one-time funding source that requires a majority vote of Town Meeting.
- Appropriating funds from the Stabilization Fund. A two-thirds vote of Town Meeting is required to appropriate money from the Stabilization Fund.
- Making a Reserve Fund Transfer for unexpected and unforeseen circumstances. This fund is used to balance departmental budgets when they experience extraordinary or unforeseen circumstances that cause their budget to go into the negative.
Employee Contracts
Union and non-union settlements are summarized as to insurance split percentage, paid time off, insurance offset dollars, cost-of-living adjustments for each of the three years, and annual other costs.
