Finance Committee

Our minutes and fund balances are posted on the Minutes page of this website.

Office Address:
Town Hall
8 East Street
Southampton, MA 01073

Phone: 413-529-0106
Fax: 413-529-1006
Email: finance@town.southampton.ma.us


Office Hours - N/A
Regular Meeting Time - Alternate Tuesdays 7:00 p.m.
View the Calendar for meeting dates.
Our meeting location is at Edwards Public Library


June 2006 Finance Committee Annual Fiscal Message
FY 07 Finance Committee Proposed Balanced Budget
FY 07 Finance Committee Budget Recommendations Handout


MUNICIPAL FINANCE TERMS – GLOSSARY

1. Available Funds - Free cash reserves and unexpected balances from other years available for appropriation. This affects the tax rate indirectly as any money spent other than that reimbursed by the County, State or Federal government must be raised by taxes and fees.

2. Capital Outlay Expenditure Exclusion - A community can vote to assess taxes in excess of its levy limit or levy ceiling for the payment of certain capital projects, a capital outlay expenditure exclusion. The additional amount for the payment of the capital project cost is added to the levy limit for the life of the debt only. Unlike overrides, exclusions do not become part of the base upon which the levy limit is calculated for future years. A majority vote of approval by the electorate is required.

3. Cherry Sheet - Details of State and County charges and reimbursements used in determining the tax rate. Name comes from the color of paper used. 4. Debt Exclusion - A community can vote to assess taxes in excess of its levy limit or levy ceiling for the payment of specified debt service costs, a debt exclusion. The additional amount for the payment of the debt service is added to the levy limit for the life of the debt only. Unlike overrides, exclusions do not become part of the base upon which the levy limit is calculated for future years. A majority vote of approval by the electorate.

5. Enterprise Fund – An accounting mechanism which allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy. With an enterprise fund, all costs of services - direct, indirect, and capital costs are identified. This allows a community to recover total service costs through user fees if it so chooses. Enterprise accounting also enables communities to reserve the “surplus” or retained earnings generated by the operation of the enterprise rather than closing it out at year end.

6. Estimated Receipts - Estimate of miscellaneous receipts based on previous year’s receipts deducted by the assessors from the gross amount to be raised by taxation.

7. Fiscal Year – For the Commonwealth of Massachusetts and its municipalities, the fiscal year is the period of time beginning on July 1 and ending on June 30.

8. Free Cash - Surplus revenue less outstanding taxes owed from prior years.

9. Levy Ceiling – The maximum tax assessed on real and personal property may not exceed 2.5% of the total full and fair cash value of all taxable property, except if the community passes a capital outlay expenditure exclusion, a debt exclusion, or a special exclusion.

10. Levy Limit – The maximum amount a community can levy in a given year. The limit can grow by 2.5% of the prior year’s levy limit plus new growth and any overrides.

11. New Growth – The taxing capacity added by new construction and other increases in the property tax base. New growth is calculated by multiplying the value associated with new construction by the tax rate of the previous year. 12. Overlay Fund - Amount raised by the assessors by setting the tax rate, creating a fund to cover abatements granted.

13. Overlay Reserve or Surplus - Unused accumulated amount of the overlay for various years, which may be VOTED by the town for extraordinary or unforeseen purposes.

14. Override Vote - An override vote becomes a permanent increase in the levy limit (the amount the community can raise through the property tax). Override requests must be presented in dollar terms and specify the purpose. A majority vote of approval by the electorate is required.

15. Reserve Fund - Amount transferred from overlay surplus or appropriated for unforeseen or emergency purposes. Controlled exclusively by the Finance Committee.

16. Revolving Fund – Allows a community to raise revenues from a specific service and use those revenues to support the service without appropriation.

17. Stabilization Fund – An account from which amounts may be appropriated for any lawful purposes. An Act Relative to the Stabilization Fund of the Town of Southampton specifically limits the use of the Stabilization Fund for purposes for which the town would be authorized to borrow money under Massachusetts General Law, Section 7 and 8 of Chapter 44 and not for any other purpose. A two-thirds vote of town meeting is required to appropriate money from the Stabilization Fund.