Manchester-by-the-Sea

Finance Committee
ANNUAL REPORT

2014

Please be sure to attend

Town Meeting
at Memorial School
April 7, 2014 at 7:00 P.M.
and
bring this report with you.

Definitions used in discussing money articles

Apportionment
AformulausedtocomputetheamounteachtownowestotheRegionalSchoolDistrict.
Article 4
Theoperatingbudgetsforthetown.
Article 5
Most,butnotall,capitalitems.
Assessors overlay
AfundinreservefortheBoardofAssessorstocoverabatements.
Assessment
TheTownBoardofAssessor'sopinionofthevalueofyourproperty.
Available funds
FundbalancesplusamountsinotheraccountsthatarenotEnterprisefunds.
Borrowing
Loansthetowntakestopayforlargecapitalitems.
Capital budget
One-timeexpenses.TraditionallyManchesterhasincludedsomemaintenance,
includingroadrepair,newroofs,etc.ascapitalexpenditures.
Chapter 70
TheChapteroftheStatelawthatgovernsthefundingofschools.Itisalsothe
commonnameforthelargestpartofstatefundingtoschools.
Cherry sheets
Stateaidtothetown.Socalledbecausetheywereonceprintedonredpaper.
Choice
Moneythatflowsintotheschooldistrictfromthestatewhenthesystemaccepts
studentsfromoutsidethedistrict.
Enterprise fund
Anaccountseparatefromthetown'sgeneralfundfortherevenueandexpensesofa
particularfunctionofthetown.
Exclusion
AnitemthattheTownMeetingandvotersagreetofundoutsidethelimitsof
Proposition21/2.
Fund balances
Formerlyknownasfreecash,theamountofmoneyleftoverinthegeneralfundat
theendoftheyear.Mostofthefundbalancescomefromunanticipatedrevenues.
General fund
TheTownscheckingaccount.TheGeneralFundcanbeexpendedonlyfortheitems
approvedbyTownMeeting.
Hold
Therequesttodelayconsiderationofonepartofamulti-partarticle.Anyitemthata
TownMeetingmemberquestionsismarkedasaholdandwillbediscussedafterthe
unquestioneditemshavebeenvoted.
Definitions are continued on the outside back cover
2

TAX RATE ESTIMATE FOR

FISCAL YEAR ENDING JUNE 30, 2015
JULY 1, 2014 - JUNE 30, 2015
As Requested
In Warrant

As Recommended
By FinCom

Fiscal year 2015

Article 4 Department Requests
(salaries and normal operating expenses)
Article 5 Capital items requested by Departments
Article 6 Regional School Operating and Debt
Other Articles (4)
TOWN MEETING TOTAL

13,192,990

13,192,990

1,434,000
13,359,514
1,007,745
28,994,249

1,434,000
13,359,514
1,007,745
28,994,249

PLUS:
State Assessments
Assessors' Overlay
Snow Deficit
Tax Lien Purposes
GROSS AMOUNT TO BE RAISED

158,619
150,000
100,000
10,000
29,412,868

158,619
150,000
100,000
10,000
29,412,868

204,900
1,627,500
529,160
2,183,124
597,745
684,000
115,000
70,000
6,011,429

204,900
1,627,500
529,160
2,183,124
597,745
684,000
115,000
70,000
6,011,429

NET AMOUNT TO BE RAISED BY TAXATION

23,401,439

23,401,439

PERMITTED LEVY
ESTIMATED GROWTH FACTOR
PREVIOUS DEBT EXCLUSION
MAXIMUM PERMITTED LEVY

20,279,013
150,000
2,972,426
23,401,439

20,279,013
150,000
2,972,426
23,401,439

LESS:
State Aid
Estimated Receipts - Local Revenues
Off Set Receipts - Recreation And Trash Fees
Enterprise Accounts - Water & Sewer
Community Preservation Funds (CPA)
Unreserved Fund Balance ( Free Cash)
Overlay Surplus
Available Funds
Subtotal of Deductions

TOTAL ASSESSED VALUATION AS OF FY-2014

FISCAL YEAR 2014 TAX RATE
ESTIMATED FISCAL YEAR 2015 TAX RATE

2,161,963,375
10.45 PER THOUSAND
10.82 PER THOUSAND

REPORT OF THE FINANCE COMMITTEE

TO THE VOTERS OF THE TOWN

The Finance Committee has reviewed the budgets, capital items and other warrant articles that will be presented to voters at the Annual Town Meeting on April 7, 2014. We
again thank the many Town and School District employees, elected officials and volunteers
who prepared budgets, appeared before us and provided information in response to our
inquiries. In particular we appreciate the hard work and cooperation of all the department
heads who continue to show good discipline in managing their budgets.
In the course of reviewing the Towns operating and capital budgets the Finance Committee met regularly with the Town Administrator and Town Accountant and also met individually with the heads of the major Town departments. We also met with School District
leaders, attended School Committee meetings and participated in both a school budget
working group and the Districts facilities task force. In addition, we reviewed multi-year
models for both the operating budget and the capital budget. These models project the
effects that changes in this years budgets will have on future years budgets, debt levels
and reserve balances.
Through a combination of strong local receipts (which include items such as excise tax
payments and beach fees) and prudent management by Town and School District personnel, the Town is in relatively good financial shape. We are pleased to report that we are
able to recommend a Fiscal Year 2015 budget that we believe offers the high level of public services that the citizens of Manchester expect and deserve while still keeping within
the levy limit permitted by Proposition 2 .
However, it is worth reminding citizens that the 2011 override did not give the Town as
much flexibility as we had initially hoped. Because the Town of Essex failed to pass an
override in 2011, the state Department of Revenue disallowed the portion of Manchesters
override that applied to the School District budget, thereby reducing the override from the
expected $1,250,000 to $887,843 a reduction of $362,157 or 29%. This has constrained
the School Districts budget for the last few years, and as a result, both Manchester and
Essex may need to consider an override relating to the School District budget again in Fiscal Year 2016.
Our work also includes an attempt to benchmark the cost efficiency of the delivery of
services in Manchester to that in other similar communities. However, comparing Manchester to other towns is not straightforward and can easily be misunderstood for a number of reasons, including: (i) the types of services offered in different communities can
vary widely, (ii) the reporting and allocation of expenses differs significantly between
communities, and (iii) some towns may pay for a service through taxation, while others
may use a different revenue source such as an enterprise fund. To give just a couple of
examples of these differences, Manchester has its own ambulance service with Advanced
Life Saving capability while our neighbors rely on commercial services located in other
cities and towns. Similarly, Manchester operates its own water treatment and distribution
systems, which is not the case in many other communities. Nonetheless, the Finance Committee will continue to seek useful inter-community benchmarks.
Moreover, the Finance Committee and the Town Administration are always weighing
the cost efficiency of providing services through Town employees versus outsourcing to

private contractors. This analysis is frequently difficult because of many factors ranging
from quality and timeliness of service to effect on pension and other retirement obligations.
On the capital side, as we have discussed in prior years, the Town has struggled to keep
up-to-date with the maintenance of its infrastructure for a variety of reasons, including the
weak economy and the need to fund the Pine Street reclamation project as required by
Massachusetts Department of Environmental Protection. However, the Fiscal Year 2015
capital budget begins to implement a multi-year plan to tackle the problems with the
Towns physical assets. Fortunately, a considerable amount of the Towns current outstanding debt will be retired over the next several years, and so it should be possible to
begin to repair or replace our aging equipment and infrastructure without a significant
impact on the tax rate. As discussed in more detail below, the Town will be able to utilize
a combination of new borrowing and a portion of its financial reserves to implement this
capital improvement program.
Before turning to the Financial Highlights, it is worth noting that early in 2014, the
credit rating agency Standard & Poors, raised the Towns bond rating to AAA, its highest
level. That makes Manchester one of only 30 municipalities in Massachusetts (out of a
total of 351) to hold the top rating. In awarding Manchester its top rating, Standard &
Poors cited, among other things, the Towns strong property base, solid per capita income,
good fiscal management and policies, stable reserves, and healthy debt and contingent liabilities position as positive credit factors.
Financial Highlights
In Fiscal 2013, which ended on June 30, 2013, the Town had an operating surplus of
approximately $800,000 primarily because of increased local receipts, lower health
insurance premiums and a reduction in school-related debt service.
Fiscal 2014, ending on June 30, 2014, is projected to close with an operating surplus of
approximately $300,000 primarily because of conservative estimates of our local
receipts (various fees, rental income, etc) along with realized savings in a number of
operations.
Fiscal 2015 compared to Fiscal 2014:
Increase in Expenses:
Town

4.6% (2.5% excluding new debt previously approved)

School

3.9%

Debt service is up by 17.4% in FY15 because of the new debt recently taken on for the
Pine Street reclamation project, beach repair following the 2013 storms and the sewer
outfall repair in the harbor.
Salaries, which make up the largest part of the Town Operating budget, are up by 3.2%
from FY14 to FY15. This generally reflects salary increases of 2.5%, plus a few
longevity increases and additional part-time hours in the land use departments.
Pension expense is up 4.4%, and health insurance costs are up 3.6% from FY14 to
FY15; these are largely beyond the Towns control. The Towns health insurance
expenses are primarily dictated by union contracts. Employees will be picking up a bigger share of the premium costs over the course of the next three years. The Towns

annual pension contribution is mandated by state law.

Non-bonded capital expenditures for FY15 will be $1,434,000 and will be funded by a
combination of taxation, fund balances, water and sewer rates and other sources. As
discussed in more detail below, this is a significant increase from FY14 and previous
years because of the need to catch up on repair or replacement of our deteriorating
infrastructure.
The Town plans to borrow a total of $2,440,000 in FY15 to take advantage of a State
program that offers favorable interest rates on borrowings for water and sewer projects.
This money, only a portion of which will be actually spent in FY15, will fund a Comprehensive Wastewater Management Program (which is mandated by the State) as well
as repairs to the water and sewer systems.
Manchesters share of the Manchester-Essex Regional School District (MERSD) operating budget is up 3.9% for FY15. The student population has grown significantly over
the past several years. Moreover, because the student population from Manchester has
been growing faster than that from Essex, Manchesters share of the District expenses
has increased under the allocation formula in the District Agreement.
The budget is projected to leave the town with financial reserves (Fund Balances, which
were formerly known as Free Cash plus Stabilization Fund) of approximately $2.7
million at the end of FY15.
We also call your attention to the graphs on the back pages of this booklet.
Overview of FY15 Town Operating Budget
The department heads have once again demonstrated admirable restraint in their budget
requests. Most departmental discretionary expense budgets were either held flat or slightly
reduced for FY15. In FY15, all unionized employees are expected to receive pay increases
of 2.5% in accordance with the new union contracts that should be in place at the start of
FY15. Most non-union employees will also receive a 2.5% salary increase in FY15. The
only expansion in headcount is some additional part-time hours in support of the Planning
Board, Historic Commission and Appeals Board, and this is mostly offset by consolidating
hours in the Council on Aging and the Treasurer/Collectors Office. Further headcount
consolidations are anticipated through retirements. The new planning position will provide assistance to our land use boards, facilitate the crafting of a new master plan for the
community and help guide our capital improvement program. An updated master plan is
a prerequisite for various state grant programs.
The FY15 budget also includes an increase in the snow removal budget of $25,000 plus
funds related to the FY14 snow removal deficit. State law allows towns to carry a snow
removal deficit forward to the next year due to the unpredictability in this weather-related
budget item. As this report goes to press, we are not yet beyond the snow and ice season
so that any additional impact on the FY15 budget cannot be finalized, but it may be significant.
Other Post-Employment Benefit (OPEB) and Pension Liabilities
The Town has made good progress in dealing with its unfunded liabilities for healthcare
obligations to current and future retirees, which is often called OPEB (Other Post-Employment Benefits). The Town has taken important steps both to reduce the future liabilities
and to begin setting aside assets to fund those liabilities.

On the liability side, the structural changes made to the Towns health insurance plans
over the past few years should significantly reduce its unfunded OPEB obligations. These
changes include:
Requiring all eligible retirees to enroll in Medicare, which significantly reduces the
Towns obligations for their healthcare costs;
Auditing the benefit rolls to remove persons not entitled to Town benefits and to identify eligible retirees who had not yet enrolled in Medicare;
Enacting new rules that prevent retirees who voluntarily leave the Towns health insurance from later rejoining it;
Changing the insurance program for current employees to increase deductibles and
increase employee contributions; and
Having employees and retirees pay a higher share of the premiums for a given plan.
On the asset side, the Town has established an OPEB Trust and is funding the trust at a
level that is considered actuarially to be fully pre-funded. This means that, assuming the
Town continues to make annual contributions at the appropriate level, within 30 years the
assets in the trust are projected to be sufficient to meet the Towns OPEB liabilities at that
time.
The Town also has significant pension liabilities, but a state statute has established a
program that all municipalities must follow to fund those liabilities. Manchester is following the state mandated program, and its pension liabilities should be fully funded by
2035. For more details about the Towns pension and OPEB liabilities, see the Board of
Selectmens report that follows this report. In addition, the Towns OPEB actuarial report
and the annual Town Audit are available on line or at Town Hall.
Capital Plan and Sources of Funding
The Town is undertaking a ten-year capital improvement plan that is designed to remedy past deficiencies and meet the Towns infrastructure needs well into the future. The
plan calls for significant spending on roads, the water treatment and distribution systems,
the sewer collection system and a number of Town vehicles and buildings. The plan also
seeks to reduce future operating costs by making energy-saving improvements to a number of Town facilities.
The capital expenditures planned for FY15 total $3,874,000, which includes
$1,434,000 that are described in Article 5 and $2,440,000 funded by new borrowing for
the sewer and water systems that is described in Article 6. The Article 5 expenditures
include an expanded road improvement program, vehicle replacements, water and sewer
plant upgrades and improvements, replacement of the computer network in Town Hall,
needed enhancements to the Fire Station and public safety radio equipment and a reserve
fund for future fire and rescue vehicles.
Article 6 asks the voters to put on the ballot in the May 2014 election a proposed borrowing of $2,440,000 to fund the replacement of the main water line along Pine Street, a
new interconnection with the Gloucester water system, a waste management plan and
sewer line improvements to reduce the amount of infiltration and inflow into the sewer system. The Town has been approved for a state program that offers especially low interest
loans in part because of the high needs we have for system improvements. We can lock in
these rates now and take the next two years to finalize the engineering for the needed
improvements with loan repayment not starting until FY16 and FY17. This will allow our
7

current debt payments to drop further thereby reducing the impact of this new debt on the
tax rate.
The Town will fund the FY15 capital budget of $3,874,000 through payments of
$825,000 from taxation, $359,000 from Fund Balances, $2,440,000 from borrowing as
described above, $195,000 from the Water and Sewer Funds, and $55,000 from the Harbor
Fund. Added to this total is another $148,000 for roadwork from Chapter 90 monies paid
by the state. As part of the ten-year capital improvement plan, the amount of funding from
taxation will increase by $100,000 each year until the annual amount reaches $1 million.
A total of $684,000 ($359,000 for capital and $325,000 for the OPEB and Stabilization funds) that we are proposing to take from the Undesignated Fund Balance (often
referred to as Free Cash) will temporarily reduce the Towns financial reserves, but this
is a one-time reduction which will allow us to get a good start on our back-log of capital
needs. As shown below, the Town has been able to build up reserves (which consist of the
Undesignated Fund Balance and the Stabilization Fund) over the last few years, and the
Finance Committee and the Board of Selectmen believe it is now appropriate to devote a
portion of those reserves to fund our urgent capital needs. The graph below shows the total
of reserves (Fund Balances plus Stabilization) at the beginning of each fiscal year as a percentage of that fiscal years overall Town budget (including the School District). The FY15
estimate of 8.7% is after the $684,000 has been used for FY15 capital, OPEB and stabilization and falls within our targeted range of 8-10% of total operating expenses. Our 10
year plan anticipates keeping the reserves within this range.

Also, as noted above, a significant amount of the Towns outstanding debt will mature
over the next several years as shown on the next page. This will allow us to issue new debt
in the coming years to address our ten-year capital improvement plan without negatively
impacting the tax rate.

Manchester-Essex Regional School District Budget

While the school budget is the responsibility of the District Administration and the
School Committee, the Finance Committee reviews the budget carefully before recommending it to Town Meeting. As mentioned above, the Finance Committee has a representative on the small working group (consisting of representatives of the School District
as well as the towns of Essex and Manchester) which plays an active role in developing the
budget, beginning in the late Fall. The Committee also reviews the final budget with
School District officials.
Although the proposed increase of 3.9% in the Towns portion of the School District
Budget may seem high in this era of relatively low inflation, a couple of factors must be
taken into consideration. First, as mentioned above, because Essex failed to pass its Proposition 2 override in 2011, the School District was also denied the benefit of its portion
of Manchesters FY 2011 override. This has severely constrained the school budgets for
the last few years. The other major force that shapes the school budget is an increase in
the student population, an influx of 281 students over the last 6 years, a 24% increase.
Moreover, because more of these new students came from Manchester than from Essex,
Manchesters share of the school costs has gone up under the terms of the District Agreement. Not only has the number of students gone up, but the diversity of the students has
also increased, which puts new demands on the schools. Despite all this, while total costs
have risen, per pupil costs have decreased. The Finance Committee has concluded that the
increase in the School District Budget is reasonable in the light of these factors.
Looking Ahead to FY16
While it is always difficult to project the Towns finances, we are hopeful that we can
avoid an override request for the Towns operating budget for several years to come, especially if local receipts remain strong. Of course, this is dependent on a number of factors
such as health insurance costs, energy costs and state and federal regulation, many of
which are beyond the Towns control. However, on the school side the failed override in
2011 has constrained the Districts budget for the last few years. As a result, both Manchester and Essex may need to consider a new override to cover the needs of the School
9

District in Fiscal Year 2016.

We want to be sure that residents understand the financial condition of the Town. We
will be prepared to discuss this further at Town Meeting, and we welcome your questions
and input.
FINANCE COMMITTEE MEMBERS
George Putnam, Chair

2015

Sam Martin

2016

John Croft, Vice Chair

2015

Sarah Mellish

2016

Mory Creighton

2015

Andy Oldeman

2014

Morgan Evans

2014

Sue Thorne

2014

Ann Harrison

2014

10

BOARD OF SELECTMEN REPORT ON FUTURE OBLiGATiONS

FOR RETiREMENT AND HEALTH CARE BENEFiTS
AN UPDATE OF OUR FUTURE LiABiLiTiES
Pursuant to the provisions of Article IX, Section 3 as amended of the Towns General
By-laws, the Board of Selectmen submit the following report concerning the Towns future
obligations for pensions and retiree health insurance.
Introduction
Pensions and retiree health insurance are benefits that are offered to all Town employees who work more than 20 hours a week per the requirements of Massachusetts General
Laws. Like the vast majority of municipalities, Manchester has historically paid for these
benefits in a pay as you go fashion that is, we pay only the bill that is due that year,
not the bill we are incurring for future years in the form of promised retiree benefits.
While this approach was fine when benefits where less expensive and the number of
retirees were relatively modest, the cost trends, life expectancy trends and the desire for
truer cost accounting has put a new emphasis on putting money aside now in order to pay
for future pay-outs. It also makes financial sense to pre-fund our future obligations as the
funds put aside for future use earn interest.
Town Pensions
The Town of Manchester is a member of the Essex Regional Retirement System. All
employees contribute their own funds to the system but not enough funds have been collected to fully fund the future payments promised by the retirement board. While this has
been corrected for new employees, all municipalities are contributing funds to make up for
the under collection in the past. It is anticipated that the retirement system will be fully
funded by 2035 at which time the Town will no longer have an unfunded pension liability.
The Essex Regional Retirement Boards unfunded liability was estimated by an actuarial study to be $304,773,155 as of January 1, 2013 based on current assets of approximately $315 million and total liabilities of $619 million. This is the present day value of
obligations expected to be incurred over the next 30 years. Manchester employees comprise 3.34% of the total pool thus our share of the systems liability is $10,179,423, again
over a projected 30 years. Annually we contribute a portion of this liability. For FY15 we
will contribute $821,748 for both current and future liabilities. This number is expected
to grow by 7% annually through FY2019 and 4% annually from FY2020 -2035.
Essex Regional Retirement System
Total Assets =
$315 million
Total Liabilities =
$619 million
Unfunded Liabilities =
$305 million
Manchester Share 3.34% =
$10.2 million
Annual Town Payment =
$821,748 increasing 7% through 2019; then 4%
On schedule to be fully funded by 2035
Town OPEB (other post employment benefits retiree health insurance)
The Town provides health insurance to all retirees eligible for a pension. Voters
approved this benefit decades ago and, by state law, we must now continue to do so.
Because the Town has been in operation for hundreds of years, our pool of retirees, while
growing slightly, is relatively stable. Thus, our pay as you go amount already is 70% of
the required Annual Required Contribution, or ARC. Our most recent actuarial study,
11

completed by Sherman Actuarial Services, concluded that our total Actuarial Accrued Liability for both active employees and retirees comes to $16.7 million. This is the present
day value of the cost of retiree health insurance for the next 30 years. This calculation is
likely to come down in the next actuarial study as the full impact of the lower cost health
insurance plan that was introduced is realized and the recent years of substantially lower
annual premium increases is factored in. Under pay as you go, we are currently budgeting some $540,000 annually which fully covers the annual expenses.
In addition to this pay as you go funding, the Town has established and is funding annually a new OPEB Trust Account. The contribution schedule we are following is contained
in the Sherman Actuarial Study. Assuming voters approve the next payment installment to
the recently established OPEB Trust account, we will have over $540,000 in the trust
account which, when combined with our pay as you go amount, should put us slightly
ahead of the 30 year plan to be fully pre-funded for our OPEB obligations. The annual
appropriation to the OPEB Trust is slated to grow in the 4% range.
In addition to funding the Trust, the Town continues to work on controlling the cost of
our health insurance obligations. We have successfully implemented new plans that have
higher co-pays and deductibles. We now require all eligible retirees to enroll in Medicare.
We are aggressively pursuing wellness strategies to keep cost increases down. We are
working with our unions to negotiate fair premium cost sharing. New employees now pay
30% of the premium.
Legislative changes also may help to lower our liabilities. Beacon Hill has a proposed
bill from the Governor that continues to be debated. We will monitor these developments
and urge our legislative delegation to push through more needed reforms to the laws that
govern how we provide benefits to our retirees to ensure that we can afford to provide a
fair and cost effective package.
OPEB Assets and Liabilities
Total Liabilities over 30 years
$16.70 million
Current Assets (assuming 4/7/14 addition) $ 0.54 million
Annual Town Appropriation
$ 0.765 million increasing 4+% yrly
On schedule to be fully funded in 30 yrs

12

March 5, 2013
To the Residents of Manchester and Essex:
In the past few years, our budget presentations have included information about
"Unfunded Liabilities," specifically employee pensions (excluding teacher pensions,
which are funded by the Commonwealth) and retiree health insurance, which is also
known as Other Post Employment Benefits (OPEB). This letter is intended to provide:
A brief explanation of what these liabilities are
An update on the magnitude of these liabilities for the Manchester Essex Regional
School District (MERSD), and
A summary of steps that MERSD is taking to address these liabilities, which face not
only every other governmental entity in Massachusetts, but also most government
entities nationwide.
What Are Unfunded Liabilities?
Pensions and retiree health insurance are benefits that are offered as a requirement of
Massachusetts General Law to employees of MERSD. Because these benefits are legally
mandated, government entities must include in their financial statements an estimate of
the value of future obligations related to these programs.
In the past, MERSD, like most school districts and towns in the state, paid the cost of
these benefits as they came due each year. This is often referred to as a "pay as you go"
approach. Recently, attention has turned to the growing nature of these costs and the concern that benefit costs will grow faster than municipal budgets can absorb in future years.
A potential solution to this challenge has two main facets. First, cost growth must be
contained to ensure that benefits are appropriate and affordable for taxpayers. Second,
government employers must begin to move from the "pay as you go" approach towards
a strategy that pre-funds future year obligations and invests those funds to ensure that
larger obligations due in future years can be afforded without undue pressure on the
annual operating budget. Setting aside money for these obligations in advance would
begin to render these liabilities "funded" in accounting terms instead of "unfunded," as
they are today.
How Big Are MERSD's Unfunded Liabilities?
Estimates of these liabilities are updated each year and published in MERSD's financial
statements which are audited by an outside accounting firm. The financial statements for
the most recently concluded fiscal year (which ended on June 30, 2013), contain the following estimates.
Pensions
The unfunded portion of the pension liability attributable to MERSD is estimated to be
$5,256,948.

13

Most pension programs require contributions from employees and employers. MERSD
teachers and other licensed personnel (e.g. principals and district administrators) participate in the Commonwealth of Massachusetts' Teachers Contributory Retirement System
(MTCRS). For these employees, the Commonwealth pays 100% of the employer share
of pension expense, and employees also contribute directly by way of an 11% payroll
deduction. As a result, MERSD has no expense whatsoever, for pension costs related to
licensed employees.
Non-licensed employees (e.g. custodians, and administrative or school building assistants), participate in the county pension program, known as Essex Regional Retirement
System (ERRS). In the current fiscal year, MERSD's employer-share obligation totaled
$426,747. ERRS, by way of this contribution, has begun to require its members, including MERSD and the Towns of Manchester and Essex, to pre-fund future pension liabilities and the program is on track to achieve full-funding by 2035, in accordance with
Massachusetts General Law. Doing so requires MERSD to increase its annual pension
contribution by 7% each year through 2019 and 4% thereafter.
The estimate referenced above for MERSD's unfunded pension liability is based on the
following information from ERRS' most recent valuation dated 1/1/13:
A total pension liability for all of ERRS of $619 million and assets of $315 million. The
difference between these two figures is the ERRS-wide unfunded liability of $305 million. Based on these figures, approximately 51% of the plan's total liability is currently
funded with assets on hand.
MERSD represents 1.72% of total ERRS payroll. ERRS applies this percentage to the
total annual required contributions from its members to arrive at MERSD's employer
share obligation for the year,
Taking the $305 million total plan unfunded liability and multiplying it by MERSD's
1.72% share of costs leads to the $5.3 million estimated unfunded liability for
MERSD.
OPEB (Retiree Health Insurance)
MERSD's unfunded liability for OPEB is $25,010,077 as of July 1, 2013.
By law, MERSD must provide health insurance to all employees who retire with eligibility
for pension. For employees and retirees hired after to July 1, 2013, the district pays 70%
of insurance premiums and the remainder is paid by the insured party. For employees
hired prior July 1, 2013, the district's contribution rate is 80%. MERSD's annual obligation for insurance payments on behalf of retirees was $505,801 in the most recently concluded fiscal year. As a relatively new Regional School District, however, MERSD does not
yet have many retirees. Our actuary estimates that as this changes and costs continue
to rise, our annual obligation for retiree health insurance will grow at an average annual
rate of 6.6% through 2043. This is much faster than MERSD's typical budget growth
each year, and would put excessive constraints on important educational spending. Our
most recent actuarial study estimated that the current value of future year benefits,
including benefits not yet earned but likely to be earned in the future, is $39.5 million.
MERSD has not yet begun to set aside assets to cover future year costs, and the actuarial report estimates that an annual contribution of $2.3 million (or 4.6 times our most
recent 'pay as you go' annual expense) would be necessary to do so.

14

What is MERSD's Plan to Address these Challenges?

Management of these Unfunded Liabilities is a critical priority for MERSD. In its recently
published District Improvement Plan, MERSD identified the need to develop within three
years a sustainable, longterm financial plan to address these challenges.
Pensions are a guaranteed contract; benefit levels cannot be changed. Although MERSD
did not establish benefit levels, we are committed to paying for them and will continue to
make the contributions required by ERRS to achieve full funding by 2035. For the next
several years, the 7% increase in our annual pension expenditure will have a noticeable,
but manageable impact on the budget. Knowing this allows MERSD to plan ahead and
identify funding sources from savings in other areas of the budget. Outsourcing evening
custodial services at the new Middle High School when it first opened, for example, not
only brought savings in salaries, but also meant that fewer employees will be brought
into the pension system, which helps to keep the cost of our contributions down. The
proposed outsourcing of evening custodial services at the elementary schools could
similarly help to reduce future pension costs.
With regard to OPEB, MERSD has more flexibility, within the confines of Massachusetts
General Law, to manage costs and establish a viable plan to set aside funds and ensure
that future obligations can be met. Recently, the MERSD School Committee endorsed a
"Roadmap for Funding OPEB" with three main components that can put MERSD on a
path to fully funding its OPEB liability:
1. Take Steps Within MERSD's Control To Reduce Costs.
The recently enacted Municipal Health Reform Law allows MERSD to introduce less
expensive plans outside of the collective bargaining process. These plans could lower
the long-term OPEB liability by up to 10% and provide additional short-term savings
through reduced annual costs that can be set aside for future obligations.
2. Negotiate Cost Reductions That Must Be Collectively Bargained By Law.
Contribution rate changes for retirees and/or spouses could lower the OPEB funding
gap by an additional 50-60%. To the extent possible, MERSD would seek to exempt
current retirees and those near to retirement, focusing instead on those current employees who have more time (and current income) to plan for their eventual retirement.
3. Increase Budget Funds Over Time To Close Remaining Gap.
This year, MERSD's School Committee voted to establish a trust fund that can be
used to set aside and invest funds to make future obligations more affordable.
MERSD's Fiscal 2015 budget includes an initial deposit of $50,000 into the trust. Savings from exercising the Municipal Health Reform law could bring the total initial
deposit up to $200,000 or more. Additionally, the OPEB Roadmap envisions a 5-10
year time frame to gradually ramp up prefunding to supplement the cost savings
generated by the first two components of the plan.
A more detailed presentation of this plan, including calculations of potential savings and
the path to full funding can be found on the MERSD website (see address below).
Additional initiatives that MERSD has undertaken to mitigate the cost of OPEB include:
Annual competitive bidding of insurance programs to get the best rates from the market. Rate increases for the past three years of bids for MERSD plans have been 0%,
3.6%, and 0% respectively. This average increase of 1.2% per year is significantly
lower than the 4.5%-7.5% rate assumed by our actuaries in forecasting the future

15

costs. Savings from this bidding process reduce the annual cost of retiree health and
will help to contain growth of the OPEB liability forecasts in future actuarial reports as
well.
All retirees who are eligible for Medicare are now required to enroll, so MERSD will no
longer be their primary insurer. MERSD pays for some supplemental insurance for
these retirees, but implementing this change reduces MERSD's cost per participating
retiree by 43-60%, based on the differential in current rates between the district and
Medicare supplemental plans.
Negotiations between MERSD and META (Manchester Essex Teachers' Association)
helped to curtail growth in spending on insurance as well. Prior to 2011, the district
paid 85% of premiums. For employees hired after July 1st, 2013 the district contribution rate has declined to 70% of premiums and for those hired before that date, the
district contributes 80%.
A new policy beginning July 1, 2013 prohibits retirees from adding insurance coverage after retirement, which will make changes in enrollment levels more predictable.
A newly enacted provision of Massachusetts General Law enables MERSD to recoup
the portion of retiree health costs earned by retirees during previous service to other
school systems. MERSD is currently one of the few early adopters, having invoiced
fifteen other towns and regional school districts this year to ensure that these entities
pay their fair share of the cost.
Additionally, recognizing that legally mandated OPEB costs are a challenge statewide,
the Massachusetts state government has begun to get involved. In addition to the
Municipal Health Reform Law, a new legislative proposal from the Governor's office
could curtail MERSD's OPEB obligation further, by taking into account each retiree's
years of service and age. MERSD will continue to monitor these developments and work
collaboratively with META and other employee groups to make sure that health insurance costs are affordable to employees, retirees, and the district.
For more information about MERSDs unfunded liabilities, please visit www.mersd.org,
follow the Quick Link "Budget," and choose the "Unfunded Liabilities" link. This site contains presentations regarding MERSD's plans to address these liabilities, copies of actuarial reports, and other informational resources about this topic.

16

COMMONWEALTHOFMASSACHUSETTS

TOWN OF MANCHESTER-BY-THE-SEA

ANNUAL TOWN MEETiNG WARRANT

Essex, ss.
ToanyoftheConstablesoftheTownofManchester-by-the-Sea:
Greetings:
InthenameoftheCommonwealthofMassachusettsyouareherebyrequiredtonotify
andwarntheinhabitantsoftheTownofManchester-by-the-Seaqualifiedtovoteinelections,tomeetintheMemorialSchool,onLincolnStreet,inManchester-by-the-Sea,on
Monday,theseventhdayofApril,twothousandandfourteenAD,atseveno'clockinthe
evening,forthepurpose,towit:
ARTiCLE 1.
ToseeiftheTownwillvotetoreceiveandplaceonfilethe
reportsoftheTownboardsandcommitteesappearingintheAnnualReport,ortakeany
otheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL.
The Board of Selectmen recommends approval.
ARTiCLE 2.
ToseeiftheTownwillvotetofixthe12-monthfiscalyear
salaryandcompensationofallelectiveofficersoftheTownasprovidedinSection108of
Chapter41,asamended,asfollows:
Moderator
$0.00
Chairman,Selectmen
$0.00
OtherfourSelectmen
$0.00
ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL.
The Board of Selectmen recommends approval.
ARTiCLE 3.
ToseeiftheTownwillvotetoraiseandappropriateortransferfromavailablefundsasumofmoneyastheTown'sshareoftheNorthShoreRegional
VocationalSchoolDistrict,ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE WiLL MAKE OUR RECOMMENDATiON ON THE TOWN MEETiNG FLOOR.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.

17

ARTiCLE 4.
ToseewhatsumsofmoneytheTownwillraisebytaxation
orotherwisetopayTowndebtsandchargesfortheensuing12months,effectiveJuly1,
2014,andappropriatethesame.
PerpetitionoftheBoardofSelectmen

DEPARTMENTAL REQUESTS AND

FiNANCE COMMiTTEE RECOMMENDATiONS
Item
No.

Appropriations
FY'14

Requests
FY'15

Recommendations
FY'15
FundingSources

GENERAL GOVERNMENT
31.23% OF ARTiCLE 4

SELECTMENS DEPARTMENT
1 Salaries
198,965
2 Expenses
15,000
3 Audit
42,000
4 Information Technology 92,050

203,794
14,400
42,000
96,000

203,794
14,400
42,000
96,000

TAXATION
TAXATION
TAXATION
TAXATION

50

50

50

TAXATION

1,550
405
175,000

1,589
405
175,000

ELECTION & REGISTRATION

9 Salaries
2,500
10 Expenses
9,500
11 Town Reports
11,500

3,800
10,800
11,500

3,800
10,800
11,500

TAXATION
TAXATION
TAXATION

MODERATOR
5 Expenses
FINANCE COMMITTEE
6 Salaries
7 Expenses
8 Reserve Fund

1,589
TAXATION
405
TAXATION
175,000
TAXATION
OVERLAY SURPLUS

ACCOUNTING
12 Salaries
13 Expenses

120,273
4,400

123,325
4,370

123,325
4,370

TAXATION
TAXATION

ASSESSORS
14 Salaries
15 Expenses

127,836
54,200

132,505
40,070

132,505
40,070

TAXATION
TAXATION

TREASURER/COLLECTOR
16 Salaries
150,992
17 Expenses
25,818

152,984
25,818

152,984
25,818

TAXATION
TAXATION

TOWN CLERK
18 Salaries
19 Expenses

79,922
2,900

85,001
5,900

85,001
5,900

TAXATION
TAXATION

LEGAL
20 Expenses

100,000

100,000

100,000

TAXATION

APPEALS BOARD
21 Salaries
22 Expenses

8,000
10,800

17,800
12,900

17,800
12,900

TAXATION
TAXATION

PLANNING BOARD
23 Salaries
24 Expenses
25 Professional Services

16,625
2,820
8,000

34,641
2,820
15,000

34,641
2,820
15,000

TAXATION
TAXATION
TAXATION

18

60,000.00
115,000.00

TOWN HALL & COMMON

26 Expenses
27 Seaside One

56,200
2,000

57,600
1,750

57,600
1,750

787,478

821,748

821,748

3,100

2,400

2,400

INSURANCE
30 Group Health Insurance 1,540,000

1,595,000

1,595,000

65,000

65,000

65,000

133,000

125,000

125,000

PENSIONS
28 Contributory

29

Non-Contributory

TAXATION
TAXATION
TAXATION
733,748
SEWER RATES 44,000
WATER RATES 44,000
TAXATION
TAXATION
1,455,000
SEWER RATES 60,000
WATER RATES 80,000

31

Workers' Compensation

32

Fire/Auto/Liability

33

Unemployment
Compensation

15,000

20,000

20,000

TAXATION

FICA-Medicare

75,000

79,438

79,438

TAXATION
SEWER RATES
WATER RATES

Total General Government 3,937,884

4,080,408

4,080,408

34

TAXATION
SEWER RATES
WATER RATES

45,000
10,000
10,000

TAXATION
MOORING FEES
SEWER RATES
WATER RATES

97,000
6,000
11,000
11,000

TAXATION
3,683,408
MOORING FEES 6,000
OVERLAY
SURPLUS
115,000
SEWER RATES 128,000
WATER RATES 148,000
4,080,408.00

PUBLIC SAFETY
22.65% OF ARTICLE 4
POLICE
35 Salaries
36 Expenses

1,467,239
74,550

1,498,282
112,300

1,498,282
112,300

TAXATION
TAXATION

8,739
8,760

8,739
8,760

TAXATION
TAXATION

1,070,336
83,430

1,098,369
95,000

1,098,369
95,000

TAXATION
TAXATION

20,000

20,000

20,000

TAXATION

82,000
11,850
6,500

84,050
11,850
6,500

84,050 MOORING FEES

11,850 MOORING FEES
6,500 MOORING FEES

PARKING CLERK/RESIDENT PARKING

37 Salaries
8,124
38 Expenses
8,660
FIRE
39
40
41

Salaries
Expenses
Ambulance Billing
Expenses

HARBOR MASTER
42 Salaries
43 Expenses
44 Care of Floats

19

73,438
3,000
3,000

BUILDING DEPARTMENT
45 BUILDING
INSPECTOR
19,423
46 GAS/PLUMBING
INSPECTOR
11,468
47 SEALER OF WEIGHT'S
& MEASURES
3,231
48 ELECTRICAL
INSPECTOR
11,468
49 INSPECTORS'
EXPENSES
4,900
EMERGENCY MANAGEMENT
50 Salaries
8,500
51 Expenses
1,250
52 Emergency Notification 5,500
ANIMAL CONTROL
53 Salaries
54 Expenses
Total Public Safety

13,311
4,600
2,916,340

19,909

19,909

TAXATION

11,755

11,755

TAXATION

3,312

3,312

TAXATION

11,755

11,755

TAXATION

4,800

4,800

TAXATION

8,713
1,000
5,500

8,713
1,000
5,500

TAXATION
TAXATION
TAXATION

13,644
5,500
3,029,738

13,644
5,500
3,029,738

TAXATION
TAXATION
TAXATION
MOORING
FEES

DEPARTMENT OF PUBLIC WORKS

13.39% OF ARTICLE 4
DEPARTMENT OF PUBLIC WORKS
55 Salaries
690,153
713,214
713,214
56 Expenses
208,500
162,600
162,600

2,927,338
102,400
3,029,738.00

TAXATION
TAXATION

57

Park/Beach Maintenance

30,000

30,000

30,000

TAXATION
BEACH FEES

58
59

Maintenance
Trees

60,000
15,000

60,000
15,000

60,000
15,000

TAXATION
TAXATION

30,000
121,000

31,000
145,000

31,000
145,000

TAXATION
TAXATION

95,000

95,000

95,000

TAXATION

22,550
65,000

22,550
65,000

TAXATION
TAXATION

SNOW REMOVAL
60 Salaries
61 Expenses
62

STREET LIGHTING

SANITATION/COMPOSTING/RECYCLING
63 Salaries
22,000
64 Expenses
65,000
65
66

Rubbish
Collection/Recycling

278,837

287,202

287,202

Disposal

125,000

120,000

120,000

1,740,490

1,746,566

1,746,566

Total Dept. of
Public Works

20

TAXATION
TRASH FEES
TRASH FEES

20,000
10,000

237,202
50,000

TAXATION
1,566,566
BEACH FEES
10,000
TRASH FEES 170,000
1,746,566.00

OTHER ENVIRONMENTAL
.52% OF ARTICLE 4
HISTORIC DISTRICT COMMISSION
67 Salaries
2,100
5,353
5,353
68 Expenses
1,200
1,200
1,200
CONSERVATION COMMISSION
69 Salaries
56,815

TAXATION
TAXATION

58,411

58,411

4,650

2,650

2,650

71 CHEBACCO WOODS
800
Total Other Environmental 65,565

1,250
68,864

1,250
68,864

TAXATION
TAXATION
53,864.00
WETLANDS FD. 15,000.00
68,864.00

70

Expenses

TAXATION
43,411
WETLANDS FD. 15,000
TAXATION

HUMAN SERVICES
2.06% OF ARTICLE 4
HEALTH
72 Salaries
73 Expenses
74 HAZARDOUS
WASTE DEPOSAL
VETERANS' SERVICES
75 Veterans' Agent
76 Expenses
77 Veterans' Benefits
COUNCIL ON AGING
78 Salaries
79 Expenses
Total Human Services

57,700
56,830

59,316
56,095

59,316
56,095

TAXATION
TAXATION

4,500

4,500

4,500

TAXATION

11,930
750
2,000

12,228
550
2,000

12,228
550
2,000

TAXATION
TAXATION
TAXATION

124,721
7,800

121,954
14,700

121,954
14,700

TAXATION
TAXATION

266,231

271,343

271,343

TAXATION

271,343.00

LIBRARY
3.26% OF ARTICLE 4
LIBRARY
80 Salaries
81 Expenses
Total Culture and
Informational Services

275,845
143,162

282,670
147,062

282,670
147,062

TAXATION
TAXATION

419,007

429,732

429,732

TAXATION

TAXATION
20,414
PROGRAM FEES 40,000
BEACH FEES
62,000

429,732.00

RECREATION
2.55% OF ARTICLE 4
PARKS & RECREATION
82 Salaries

119,429

122,414

122,414

8,350

8,550

8,550

SINGING BEACH OPERATIONS

84 Salaries
60,805
85 Expenses
15,525

62,325
14,325

62,325
14,325

BEACH FEES
BEACH FEES

LIFEGUARDS
86 Salaries
87 Expenses

46,554
3,400

50,160
3,400

50,160
3,400

BEACH FEES
BEACH FEES

TUCK'S POINT
88 Salaries
89 Expenses

2,000
33,300

2,000
35,300

2,000
35,300

TAXATION
TAXATION

83

Expenses

21

PROGRAM FEES

8,550

OTHER RECREATION
90 ATHLETIC FIELD
MAINTENANCE
91 MEMORIAL DAY
92 FOURTH OF JULY
Total Recreation

25,000
1,500
10,000
325,863

25,000
1,500
10,000
334,974

25,000
1,500
10,000
334,974

TAXATION
TAXATION
TAXATION
TAXATION
94,214.00
PROGRAM
FEES
48,550.00
BEACH FEES 192,210.00
334,974.00

DEBT SERVICE
13.97% OF ARTICLE 4
DEBT SERVICE
PRINCIPAL ON BONDS 1,293,719
INTEREST ON BONDS
228,301
TEMPORARY
LOANS/INTEREST
43,000
WPAT ADMINISTRATION
FEES
3,228
93

Total Debt Service

1,568,248

1,556,779
251,587

1,556,779
251,587

30,000

30,000

2,517

2,517

1,840,883

1,840,883

TAXATION
1,519,241
SEWER RATES 321,642
1,840,883.00

ENTERPRISE FUNDS
10.55% OF ARTICLE 4
SEWER FUND
94 Salaries
95 Expenses
96 Maintenance

245,805
249,800
30,000

263,039
235,300
30,000

263,039
235,300
30,000

WATER FUND
97 Salaries
241,307
98 Distribution Expenses 66,900
99 Treatment Expenses 500,000
100 Maintenance
35,000
Total Enterprise Funds
1,368,812

243,097
57,500
524,046
37,500
1,390,482

243,097
57,500
524,046
37,500
1,390,482

412,608,440

13,192,990

13,192,990

EXPENSES BUDGET SUMMARY

GENERAL
GOVERNMENT
31%
3,937,884

4,080,408

4,080,408

TAXATION 3,683,408.00
MOORING FEES 6,000.00
OVERLAY
SURPLUS
115,000.00
SEWER
RATES
128,000.00
WATER
RATES
148,000.00
4,080,408.00

PUBLIC SAFETY

3,029,738

3,029,738

TAXATION 2,927,338.00
MOORING
FEES
102,400.00
3,029,738.00

TOTAL ARTICLE

23%

2,916,340

22

SEWER RATES
SEWER RATES
SEWER RATES
WATER RATES
WATER RATES
WATER RATES
WATER RATES
SEWER
RATES
528,339.00
WATER
RATES
862,143.00
1,390,482.00

DEPARTMENT
OF PUBLIC WORKS 13%

1,740,490

1,746,566

1,746,566

OTHER
ENVIRONMENTAL 1%

65,565

68,864

68,864

TAXATION 1,566,566.00
BEACH FEES 10,000.00
TRASH FEES 170,000.00
1,746,566.00
TAXATION
WETLANDS
FUND

53,864.00
15,000.00
68,864.00

HUMAN SERVICES 2%

266,231

271,343

271,343

TAXATION

271,343.00

LIBRARY

3%

419,007

429,732

429,732

TAXATION

429,732.00

PARKS &
RECREATION

3%

325,863

334,974

334,974

TAXATION
PROGRAM
FEES
BEACH
FEES

94,214.00
48,550.00
192,210.00
334,974.00

DEBT SERVICE

14%

1,568,248

1,840,883

1,840,883

TAXATION 1,519,241.00
SEWER
RATES
321,642.00
1,840,883.00

ENTERPRISE
FUNDS

11%

1,368,812

1,390,482

1,390,482

SEWER
RATES
WATER
RATES

TOTALS

100%

12,608,440

13,192,990

13,192,990

528,339.00
862,143.00
1,390,482.00
13,192,990.00

WE RECOMMEND APPROVAL AS iNDiCATED iN THE RECOMMENDATiONS COLUMN AND FUNDiNG AS iNDiCATED iN THE FUNDiNG
SOURCE COLUMN.
The Board of Selectmen recommends approval.

23

ARTiCLE 5.
To see if the Town will vote to raise and appropriate the
sumsofmoneycalledforunderthefollowingitems,oranyothersums,forthepurposes
indicated,andtodeterminewhetherthemoneyshallbeprovidedbytaxation,byappropriationfromavailablefundsintheTreasury,orbyborrowing,ortakeanyotheractionrelativethereto.
Dept.
item
Requested Recommended
1 DPW
RoadResurfacing
$ 127,000
$ 127,000
2 DPW
SmallDumpTruckBody
$8,000
$ 8,000
3 DPW
PickupTruck
$35,000
$ 35,000
4 DPW
Mower&2SnowBlowers
$13,000
$ 13,000
5 DPW
SidewalkTractor
$ 95,000 $ 95,000
6 DPW
MechanicalEquipment
$ 7,700
$ 7,700
7 DPW
GarageBay&OfficeAdditions
$ 250,000 $ 250,000
8 Conservation
TrailWork&LandImprovements
$ 10,000
$ 5,000
9 TownHall
ComputerNetworkReplacement $ 65,000
$ 65,000
10 Library
PaintExteriorTrim
$ 7,000
$ 7,000
11 Parks&Rec.
SweeneyParkingLot
$ 40,000 $ 40,000
12 PublicSafety
RadioEnhancements
$ 50,000
$ 50,000
13 PublicSafety
FireEngineFund
$ 50,000
$ 50,000
14 PublicSafety
FireStationRenovations
$ 65,000
$ 65,000
15 PublicSafety
PoliceCruiser
$ 36,300
$ 36,300
16 Harbormaster ReplaceDockage
$ 55,000
$ 55,000
17 Water
GeneralPlant/PumpsUpgrades $ 150,000
$ 150,000
18 Sewer
PlantImprovements $ 100,000 $100,000
19 Sewer
InfiltrationandInflowImprovements
$275,000
$ 275,000
_________
________
Total
$1,434,000 $1,434,000
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL AS iNDiCATED iN THE RECOMMENDED COLUMN, AND THAT;
iTEMS 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,11,12,13, and 14; $817,700 BE FUNDED BY TAXATiON;
iTEM 15, $7,300.00 BE FUNDED BY TAXATiON AND $29,000.00 BE FUND BY
UNDESiGNATED FUND BALANCE (FREE CASH);
iTEM 16, $55,000 BE FUNDED BY WATERWAYS FUNDS;
iTEM 17, $30,000 BE FUNDED BY UNDESiGNATED FUND BALANCE (FREE
CASH), AND $120,000 FROM WATER RATES;
iTEM 18, $25,000 BE FUNDED BY UNDESiGNATED FUND BALANCE (FREE
CASH), AND $75,000 FROM SEWER RATES;
iTEM 19, $275,000 BE FUNDED BY UNDESiGNATED FUND BALANCES (FREE
CASH).

24

REVENUES
GeneralFund(taxes)
FundBalance
WaterFunds
SewerFunds
HarborFunds
OtherFunds
GrandTotal

FY15
$ 825,000
$ 359,000
$ 120,000
$ 75,000
$ 55,000
$__________

$ 1,434,000
==========

The Board of Selectmen recommends approval.

ARTiCLE 6.
ToseeiftheTownwillvotetoraiseandappropriate,transferfromavailablefunds,orborrow$2,440,000topaycostsofcapitalimprovementstothe
Towns water and wastewater systems; and to determine whether this amount shall be
raisedbytaxation,transferfromavailablefunds,borrowingorotherwise,ortotakeany
otheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL.
The Board of Selectmen recommends approval.
ARTiCLE 7.
ToseeiftheTownwillvotetoraiseandappropriateortransferfromavailablefundsasumofmoneyfortheTownsassessmentfromtheDistrictfor
theGrossOperatingandMaintenanceBudgetoftheManchester-EssexRegionalSchool
Districtincludingdebtservice-saidsumtobecalculatedsolelyinaccordancewiththe
"AgreementBetweentheTownsofEssexandManchester-by-the-Sea,Massachusettswith
RespecttotheFormationofaRegionalSchoolDistrict",asmostrecentlyamended,by
invokingandapprovingtheprovisionfoundinparagraphfourofG.L.c.71,16BallowingDistrictmembers"toreallocatethesumoftheirrequiredlocalcontributionstotheDistrictinaccordancewiththeregionalagreement",forthefiscalyearbeginningJulyfirst,
twothousandfourteen,ortakeanyotheractionrelatingthereto.
PerpetitionoftheManchester-EssexRegionalSchoolCommittee
WE WiLL MAKE OUR RECOMMENDATiON ON THE TOWN MEETiNG FLOOR.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.
ARTiCLE 8.
ToseeiftheTownwillvotetohearandactonthereportof
theCommunityPreservationCommitteeontheFiscalYear2015CommunityPreservation
budgetandtoappropriatefromtheCommunityPreservationFundestimatedannualrevenues a sum of money to meet the administrative expenses and all other necessary and
properexpensesoftheCommunityPreservationCommitteeforFiscalYear2015;andfurthertoreserveforfutureappropriationasumofmoneyfromtheCommunityPreservation
Fundestimatedannualrevenuesforopenspace,includinglandforrecreationalspace,historicresources,andcommunityhousingpurposes,aswellasasumofmoneytobeplaced
inthe2015BudgetedReserveforgeneralCommunityPreservationActpurposes;andfurthertoappropriatefromtheCommunityPreservationFundasumorsumsofmoneyfor

25

CommunityPreservationprojectsorpurposesasrecommendedbytheCommunityPreservationCommitteeasfollows,ortakeanyotheractionrelativethereto.
CommunityPreservationCommittee
AdministrativeExpenses
WinthropFieldStonewallRestoration
CedarSwampEntrancewayProject
TucksPointChowderHouseRestoration
TownHallBoatRampEngineering&Design
TownHallRecordsManagementProject
ThePlains/NewportParkGenerators
TraskHouse/ManchesterHistorical
MuseumWindows
FirstParishChurchSteepleand
BelltowerRestoration
CommunityPreservationActAffordable
HousingReserve

(undesignatedreserve)
(recreation/openspace)
(historicpreservations)
(openspace/recreation)
(historicpreservation)
(affordablehousing)

$20,000
$18,800
$30,000
$40,000
$40,000
$15,000
$15,000

(undesignatedreserve)

$13,945

(undesignatedreserve)

$35,000

(affordablehousing)

$45,850

PerpetitionoftheCommunityPreservationCommittee
WE RECOMMEND APPROVAL.
The Board of Selectmen recommends approval.
ARTiCLE 9.
ToseeiftheTownwillvotetoauthorizetheBoardofSelectmentoacquirethefeetoandoracceptalesserinterest(including,withoutlimitation,an
optiontopurchaseand/oraleaseforatermofninety-nine(99)yearsormore)inaportionoftheAtwaterNomineeTrustlandholdings(thesocalledDonovanproperty),shown
onMap37asLot8,forrecreationalandconservationpurposes,including,withoutlimitation,forthepurposeofconstructingandmaintainingathleticfieldsthereon,saidacquisitionstobeonsuchtermsandconditionsastheSelectmendeemappropriate,ortakeany
otheractionrelatedthereto.
PerpetitionoftheCommunityPreservationCommittee
WE WiLL MAKE OUR RECOMMENDATiON ON THE TOWN MEETiNG FLOOR.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.
ARTiCLE 10.
ToseeiftheTownwillvotetoappropriateasumofmoney
from the Community PreservationAct Fund to pay for the acquisition and creation of
recreational and conservation land, including, without limitation for the construction of
athleticfieldsonandotherimprovementstotheso-calledDonovanproperty,shownon
Map37asLot8,and,asfundingtherefore,toauthorizetheTreasurer,withtheapproval
oftheBoardofSelectmentoborrowsaidsumpursuanttoG.L.c.44B,11oranyother
enablingauthority,andissuebondsandnotestherefore,theexpenditureofsuchfundsto
becontingentontheTownincreasingthesurchargeonrealpropertyunderGeneralLaws
Chapter44Bfrom1.5%to3.0%andtheapprovalthereofbythevotersattheMay20,
2014TownElection,ortotakeanyotheractioninrelationthereto.
PerPetitionoftheCommunityPreservationCommittee
WE WiLL MAKE OUR RECOMMENDATiON ON THE TOWN MEETiNG FLOOR.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.

26

ARTiCLE 11.
ToseeiftheTownwillvotetoamenditsacceptanceofthe
CommunityPreservationAct,GeneralLawsChapter44B,Sections3through7,inclusive,
originallyapprovedunderArticle15and16ofthe2005TownMeetingandacceptedatthe
May2005TownElection,andsubsequentlymodifiedatthe2010AnnualTownMeeting
andElectiontoincreasethesurchargeonrealpropertyfromthepresentlevelof1.5%to
3.0% beginning in Fiscal Year 2015, such amendment to become effective upon the
approvalofthevotersattheMay20,2014TownElection,ortotakeanyotheractionin
relationthereto.
PerPetitionoftheCommunityPreservationCommittee
WE WiLL MAKE OUR RECOMMENDATiON ON THE TOWN MEETiNG FLOOR.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.
ARTiCLE 12.
ToseeiftheTownwillvotetoamendtheZoningBy-Law
oftheTownofManchester-by-the-SeabyreplacingSection4.8.2withanewSection4.8.2
to reflect new flood maps as issued by FEMA as follows (deletions are shown as
strikethrough,andadditionsasunderlined):
4.8.2FloodPlainDistrictBoundariesandBaseFloodElevationandFloodwayData
4.8.2.1TheFloodPlainDistrictishereinestablishedasanoverlaydistrict.AnyuseotherwisepermittedintheunderlyingdistrictispermittedasamatterofrightintheFloodPlain
District, provided the use meets the following additional requirements and those of the
MassachusettsStateBuildingCodedealingwithconstructioninfloodplainsandcoastal
highhazardareasasapplicable.TheFloodPlainDistrictincludesallspecialfloodhazard
areaswithintheTownofManchester-by-the-SeadesignatedasZoneA,AE,AO,orVEon
the Essex County Flood Insurance Rate Map (FIRM) issued by the Federal Emergency
ManagementAgency(FEMA)fortheadministrationoftheNationalFloodInsuranceProgram.ThemappanelsoftheEssexCountyFIRMthatarewhollyorpartiallywithinthe
TownofManchester-by-the-Seaarepanelnumber25009C0429FdatedJuly3,2012;and
panel numbers 25009C0431G, 25009C0432G, 25009C0433G, 25009C0434G,
25009C0441G, 25009C0442G, 25009C0451G, 25009C0453G, 25009C0454G, and
25009C0475G,datedJuly16,2014.TheexactboundariesoftheDistrictshallbedefined
bythe100-yearbasefloodelevationsshownontheFIRMandfurtherdefinedbytheEssex
CountyFloodInsuranceStudy(FIS)reportdatedJuly16,2014.TheFIRMandFISbookletarebothincorporatedhereinbyreferenceandareonfilewiththeTownClerk,Planning
Board,andDirectorofPublicWorks.
andbydeletinginSection4.8.4.4.thefollowing
4.8.4.4 Other Use Regulations(a) Within Zones AHand AO on the FIRM, adequate
drainagepathsarerequiredaroundstructuresonslopestoguidefloodwatersaroundand
awayfromproposedstructures.
ortakeanyotheractionrelativethereto.
PerpetitionofthePlanningBoard
WE RECOMMEND THE ADViCE OF THE PLANNiNG BOARD.
The Board of Selectmen recommends the advice of the Planning Board.

27

ARTiCLE 13.
ToseeiftheTownwillvotetoamendArticleXVII(General
Wetlands By-Law) of the General By-Laws, as follows (deletions are shown as
strikethrough,andadditionsasunderlined):
AmendingSection4.4.3asfollows:
4.4.330feetofthetopofany coastalbank,orthetopofthebankofanystream orinlandbank.
AmendingSection5.1asfollows:
5.1ANoticeofIntent(NOI)orpermitnotis isnot requiredtobeissuedpriortocommencinganemergencyprojectnecessaryfortheprotectionofthehealthandsafetyofthe
public,providedthat:
RemovingtherequirementtonotifyabutterswhenfilingaRequestforDetermination
ofApplicability(RDA)andclarifyingthosepermitsthatrequirenotificationbyamending
Section7.1asfollows:
7.1AnypersonfilingaNOI,RDA,ANOI(AbbreviatedNoticeofIntent),ANRADor
otherrequest anAmendmenttoanOOC withtheConservationCommissionshall,atthe
sametime,givewrittennoticethereof,bycertifiedmail(returnreceiptrequested),certificateofmailing,certificationofdelivery,orbyhanddeliveryto:
AmendingthelastsentenceofSection9.11asfollows:
Anyformalevaluationshouldbeperformedbyanindividualwhoatleastmeetsthequalificationsunderthewildlifehabitatsection Section10.60(1)(b) oftheRegulations.
ortakeanyotheractionrelativethereto.
PerpetitionoftheConservationCommission
WE RECOMMEND THE ADViCE OF THE CONSERVATiON COMMiSSiON.
The Board of Selectmen recommends the advice of the Conservation Commission.
ARTiCLE 14.
ToseeiftheTownwillvotetotransferthecare,custodyand
control of the parcel of land described below from the board or officer having custody
thereofforthepurposesforwhichitisheldtosaidboardforsuchpurposesandalsotothe
BoardofSelectmenforthepurposeofenteringintotelecommunicationsleases,andauthorizetheBoardofSelectmentoenterintotelecommunicationsleasesfromtimetotimefor
termsofuptotwentyyearseachandonsuchothertermsandconditionsastheSelectmen
deemappropriate,pursuanttowhichtheTownwillleaseportion(s)oftheTown-owned
parceloflandknownasthePowderHouseHillandshownonMap42asLot4and31,
theportion(s)tobeleasedbeingthesiteoftheexistingPoliceRadioTower,andtogrant
suchaccess,utilityandrelatedeasementsontheparcelasmaybenecessaryorconvenient
to serve the telecommunications equipment thereon, and, further, to recommend  that
Town Meeting annually appropriate a minimum of 2 months  rent received from said
leasesforlandmanagementprojectsundertakenonTownconservationlandbytheTowns
ConservationCommission,and,further,toauthorizetheBoardofSelectmentopetition
the General Court for approval of such leases and/or easements underArticle 97 of the
Amendments to the Massachusetts Constitution, if the Board of Selectmen deems that
suchapprovalisneeded,ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND THE ADViCE OF THE BOARD OF SELECTMEN.
The Board of Selectmen recommends approval.
28

ARTiCLE 15.
ToseeiftheTownwillvotetoauthorizetheBoardofSelectmentoacquirebypurchase,gift,eminentdomainorotherwiseandonsuchtermsandconditions as the Board of Selectmen shall determine to be appropriate, permanent and/or
temporary easements on the parcels of land referenced below for public way purposes,
including, without limitation, the construction, alteration, maintenance, improvement,
repairand/orreplacementofrightsofway,driveways,sidewalks,ramps,parkingareas,
utilitiesand/ortrafficcontroldevices,tobeundertakeninconnectionwiththeSafeRoutes
toSchoolproject,andforallusesandpurposesincidentalthereto,saideasementstobein,
on and under the parcels of land in and around the Manchester Memorial Elementary
SchoolandtheintersectionsofSummerandLincolnStreets,allasshownmoreparticularlyonaplanentitledPreliminaryRightofWay,SafeRoutestoSchool,MemorialElementarySchool,LincolnStreetSummerStreetintheTownofManchesterbytheSea,
dated12/20/2013,preparedbyTECIncforMassDOT,acopyofwhichisonfilewiththe
TownClerk,andtoauthorizetheBoardofSelectmentograntsucheasementsintheManchester Memorial Elementary School property and other Town property shown on said
planasmayberequiredundersaidproject,and,further,toseeiftheTownwillvoteto
raise,appropriate,transferfromavailablefunds,acceptgiftsorborrowasumofmoney
forthispurposeandanyexpensesrelatedtheretoandtoauthorizetheBoardofSelectmen
toenterintoallagreementsandtakeallrelatedactionsnecessaryorappropriatetocarry
outtheseacquisitions,ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND THE ADViCE OF THE BOARD OF SELECTMEN.
The Board of Selectmen recommends approval.
ARTiCLE 16.
ToseeiftheTownwillvotetoauthorizetheSelectmento
acquireadrainageeasementoffofVineStreetonaparceloflandasshownonMap47,
Lot19andfurtherdepictedonaplanentitledDrainEasementPlandrawnbyGriffin
EngineeringGroupanddatedJanuary30,2014,acopyofwhichisonfilewiththeTown
Clerk,ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND THE ADViCE OF THE BOARD OF SELECTMEN.
The Board of Selectmen recommends approval.
ARTiCLE 17.
ToseeiftheTownwillvotetoraiseandappropriateortransferfromavailablefunds$225,000tobedepositedintotheTownsOtherPostEmployment
BenefitsTrust Fund, subject to said appropriation being expended from theTrust Fund
onlyforthepurposesauthorizedbysection20ofChapter32BoftheGeneralLawsofthe
CommonwealthofMassachusetts;ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL OF $225,000 TO BE APPROPRiATED FROM
THE UNDESiGNATED FUND BALANCE.
The Board of Selectmen recommends approval of $225,000 to be appropriated from the
Undesignated Fund Balance

29

ARTiCLE 18.
To see if the Town will vote to reauthorize the revolving
fundestablishedpursuanttotheprovisionsofChapter44,section53E1/2oftheMassachusettsGeneralLaws,forthefiscalyearbeginningJuly1,2014,saidfundtobeexpended
bytheRecreationDirectorforcostsassociatedwithTownofManchesterrecreationprograms,withregistrationfees,orotherfundsintendedtosupporttheprogramsofferedby
theRecreationDepartmentdepositedintothefund,andtotalannualexpendituresfromthe
fundnotexceeding1%oftheFY2014taxlevy,or$226,000;ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL.
The Board of Selectmen recommends approval.
ARTiCLE 19.
ToseeiftheTownwillvotetoacceptMGLChapter59,Section5KauthorizingtheBoardofSelectmentoestablishguidelinesandregulationsfora
seniorcitizenpropertytaxworkoffprogramtobegininFY2015;ortakeanyotheraction
relativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND THE ADViCE OF THE BOARD OF SELECTMEN.
The Board of Selectmen recommends approval.
ARTiCLE 20.
To see if the Town will vote to raise and appropriate or
transferfromavailablefundsasumofmoneytotheStabilizationFund,ortakeanyother
actionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE RECOMMEND APPROVAL OF $100,000 TO BE APPROPRiATED FROM
THE UNDESiGNATED FUND BALANCE..
The Board of Selectmen recommends approval of $100,000 to be appropriated from the
Undesignated Fund Balance.
ARTiCLE 21.
ToseeiftheTownwillvotetoamendtheauthorizationpursuant toArticle 4 of the Special Town Meeting Warrant datedApril 7, 2004 to change
authorizetheBoardofSelectmentoenterintolongtermleasesofuptotwentyyearsat
theTownownedparcelonPineStreet,Map58,Lot56,commonlyknownasthewater
tank site for the placement of telecommunications antennas and related equipment to
authorizetheBoardofSelectmentoenterintoasinglelong-termleaseforuptotwenty
yearsatthetown-ownedparcelonPineStreet,Map58,Lot56knownasthewatertank
site,ortakeanyotheractionrelativethereto.
Perpetitionof10ormorecitizens
WE WiLL MAKE OUR RECOMMENDATiON ON TOWN MEETiNG FLOOR.
The Board of Selectmen does not recommend approval

30

ARTiCLE 22.
To see if Town Meeting will declare that public necessity
and convenience require the repairing, resurfacing and installations and construction of
drainageonLoadingPlaceRoad,aprivatewayopentothepublic,andtoappropriatethe
sumofmoneyforsuchrepairs;providedthatpriortothecommencementofthework,an
equalsumbedepositedwiththeTownbytheabuttersandamajorityofabutterspetition
forsuchrepairs,allpursuanttoArticleX,Section29oftheTownBy-Laws,ortakeany
otheractionrelativethereto.
Perpetitionof10ormorecitizens
WE DONOTRECOMMENDTHiSARTiCLE.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.
ARTiCLE 23.
ToseeiftheTownwillvotetoamendArticleX,Section39
(SnowEmergencyParkingBan)oftheGeneralBy-Laws,asfollows(deletionsareshown
asstrikethrough,andadditionsasboldunderlined):
AmendingArticleX,Section39Aasfollows:
A.TheChiefofPolice,inconsultationwiththeDirectorofPublicWorks,isauthorized
todeclareaSnowEmergencyParkingBanwhenheorshedetermines,inhisorherdiscretion, that the likelihood of snow, ice or other forms of precipitation will cause
overnight, onstreetparkingtothreatenorimpairpublicsafety.
AmendingArticleX,Section39Casfollows:
C.WhileaSnowEmergencyParkingBanisineffect(the Blue Light system is on),it
shallbeaviolationofthisBylawtoparkanyvehicleonanyTownstreetbetweenthe
hoursof12:00a.m.and6:00a.m., punishablebyanon-criminaldispositionwithafine
of$25,payablebytheregisteredownerofthevehicle.EachnightduringwhichavehicleremainssoparkedshallconstituteaseparateviolationEachdayduringwhichthe
vehicleremainssoparkedshallconstituteaseparateviolation.
ortakeanyotheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE TAKE NO POSiTiON ON THiS ARTiCLE.
The Board of Selectmen recommends approval.
ARTiCLE 24.
ToseewhatsumofmoneytheTownwillvotetoappropriateortransferfromavailablefundsforthepurposeofreducingthetaxrate,ortakeany
otheractionrelativethereto.
PerpetitionoftheBoardofSelectmen
WE WiLL MAKE OUR RECOMMENDATiON ON TOWN MEETiNG FLOOR.
The Board of Selectmen will make its recommendation on the Town Meeting Floor.

31

Andyouaredirectedtoservethiswarrantbypostingattestedcopiesthereof,oneatthe
TownHallBuilding,oneatthePoliceStation,oneattheFireHouse,oneattheMemorial
School,andoneatthePostOffice,twenty-one(21)days,atleast,beforethetimeofholdingsaidmeeting.
Hereof fail not to make due return of this warrant, with your doings thereon, to the
TownClerkthree(3)daysbeforethedayofthismeeting.
Given under our hands at Manchester-by-the-Sea, aforesaid, this 10th day of March
2014.
BOARDOFSELECTMEN
_______________________________
PaulM.Barclay,Chairman

________________________________
MargaretF.Driscoll,ViceChairperson

_______________________________
ThomasP.Kehoe

________________________________
EliBoling

_______________________________
RobertHoff

TotheTownClerk:
IhaveservedtheforegoingWarrantbypostingattestedcopiesthereofasdirectedby
theBy-LawoftheTownandtheCommonwealth.
____________________
Constable

______________
DateofPosting

32

_________________________
ReceivedbyTownClerk

FY-2015 BUDGET
TOWN OPERATING
SCHOOL OPERATING & DEBT
CAPITAL ITEMS
OTHER ARTICLES
CPA ARTICLE
EXPENSES NOT VOTED BY TOWN MEETING

13,192,990
13,359,514
1,434,000
410,000
597,745
418,619
$ 29,412,868

Chart 1

TOWN DEPARTMENT EXPENSES

GENERAL GOVERNMENT
PUBLIC SAFETY
PUBLIC WORKS
OTHER ENVIRONMENTAL
HUMAN SERVICES
LIBRARY
PARKS & RECREATION
DEBT SERVICE
ENTERPRISE FUNDS
ARTICLE 4 TOTAL

4,080,408
3,029,738
1,746,566
68,864
271,343
429,732
334,974
1,840,883
1,390,482
$ 13,192,990

Chart 2

33

SUMMARY ARTICLE 4
SALARIES
EXPENSES
HEALTH INSURANCE
PENSION
DEBT SERVICE

6,688,014
2,244,945
1,595,000
824,148
1,840,883
$ 13,192,990

Chart 3

NON-PROPERTY TAX REVENUE

WATER & SEWER RATES
EST. LOCAL RECEIPTS
RECREATION
COMMUNITY PESERVATION
RUBBISH & RECYCLING
FREE CASH
STATE AID
OVERLAY SURPLUS
AVAILABLE FUNDS

2,183,124
1,627,500
359,160
597,745
170,000
684,000
204,900
115,000
70,000
$ 6,011,429

Chart 4
34

NON-PROPERTY TAX REVENUE

PROPERTY TAX REVENUE

6,011,429
23,433,477
$ 29,444,906

Chart 5
ESTIMATED LOCAL RECEIPTS

1,627,500

VEHICLE EXCISE
BOAT TAX
INTEREST ON TAXES
IN LIEU OF TAXES
CHARGES FOR TRASH DISPOSAL
AMBULANCE FEES
FEES
RENTALS
CEMETERIES
BEACH PASSES
LICENSES AND PERMITS
FINES & FORFEITS
EARNINGS ON INVESTMENTS
MISCELLANEOUS

750,000
17,000
65,000
4,000
30,000
150,000
75,000
160,000
14,000
270,000
51,500
6,000
35,000
$ 1,627,500

Chart 6
35

UN-USED LEVY CAPACITY UNDER/(OVER) LEVY LIMIT

32,038

REVENUES
LOCAL TAXES
STATE AID
LOCAL RECEIPTS
OFFSET RECEIPTS
ENTERPRISE FUNDS (WATER & SEWER)
AVAILABLE FUNDS

23,433,477
204,900
1,627,500
529,160
2,780,869
869,000
$ 29,444,906

Chart 7

36

EXPENDITURES
GENERAL GOVERNMENT
PUBLIC SAFETY
PUBLIC WORKS
OTHER ENVIRONMENTAL
HUMAN SERVICES
CULTURE & INFORMATION SERVICES
PARKS & RECREATION
DEBT SERVICE
ENTERPRISE FUNDS (WATER & SEWER)
MANCHESTER/ESSEX REGIONAL SCHOOL DISTRICT
MANCHESTER/ESSEX REGIONAL SCHOOL DEBT (EXEMPT)
NORTH SHORE AGRICULTURAL & TECHNICAL SCHOOL DISTRICT
CAPITAL IMPROVEMENTS
COMMUNITY PRESERVATION ACT (CPA)
WARRANT ARTICLES
NON-APPROPRIATED EXPENSES

Chart 8

37

4,080,408
3,029,738
1,746,566
68,864
271,343
429,732
334,974
1,840,883
1,390,482
11,760,720
1,598,794
85,000
1,434,000
597,745
325,000
418,619
$ 29,412,868

Notes

38

Notes

39

Definitions continued from the inside front cover

Levy
Theamountthatthetownraisesbypropertytax,computedbymultiplyingthetotal
taxableassessmentofthetown($2,306,400,000)bythetaxrate.
Local Revenues
Fundsthetownreceivesforfees,permits,excisetax,etc.
New Growth
Anamountequaltothepropertytaxthatnewconstruction,additionsandrenovations
willgenerate.
Offset
Anamountofagrantoraidpackagewhoseuseisrestrictedtoaparticularitem,
e.glibrary,roadmaintenance,etc.
Operating budget
TheroutineexpendituresoftheTownplustheschoolassessment.
Other revenue
Townincomefromfees,excisetaxes,fines,stickers,permitsetc.
Overlay Surplus
UnexpendedfundsfromtheAssessorsoverlay.
Override
AmechanismthatallowsthevotersoftheTowntoresetthelevylimitimposedby
Proposition21/2.
Proposition 2 1/2
Isthenameassociatedwithastatelawthatrestrictstheincreaseinthelevyto21/2%
peryearplusnewgrowth.
Reserve fund
Asumofmoneyavailabletomeetunforeseenexpenses.
School budget
Theamountofthewholeschoolbudgetapportionedtothetown.TheTownMeeting
cannotchangetheschoolbudget.
School choice
Statelegislationwhichallowsstudentsfromoneschooldistricttoattendschoolin
anotherdistrict.
Sewer fund
Moneyfromthesewerratesthatoffsetscostsassociatedwiththesewersystem.
Stabilization fund
MoneyputasidebytheTownformajorunexpectedevents.
Taxation
Townrevenueraisedthroughthepropertytax.Allotherformsofrevenuearereferred
toasotherrevenueorlocalrevenue.
Water fund
Moneyfromthewaterratesthatoffsetscostsassociatedwiththewatersystem.
More information is available at http://www.manchester.ma.us

40