TOWN MEETING GLOSSARY

WHAT IS PROPOSITION 2 1/2? Proposition 2 1/2 went into effect in Massachusetts in 1981. It restricts the amount towns may raise in revenue from property taxes to 2 1/2 percent of the community's full and fair cash value of property, called a levy ceiling, and also through a levy limit, the maximum amount calculated annually by the Department of Revenue. The limit increases automatically each year by 2 1/2 percent above the previous year's limit, but may not exceed the established levy ceiling. The limit also increases yearly from new development which becomes part of its tax base or from overrides.

WHAT IS AN OVERRIDE? An override allows a community to assess taxes in excess of the automatic annual 2 1/2 percent increase and increase from new growth. An override becomes a permanent increase in a community's levy limit. Overrides require a majority vote of approval by the electorate. WHAT ARE DEBT AND CAPITAL EXCLUSION OVERRIDES? Under Proposition 2 1/2, communities may raise funds above the amount of their limit or ceiling to pay for specific capital projects or debt service costs through a debt exclusion or capital outlay expenditure exclusion. The amount to pay debt service costs is added to the levy limit or ceiling only for the life of the debt. The amount for a capital project is added only for the year in which the project is undertaken. These exclusions do not become a permanent part of the tax base.

WHAT IS A MOTION? Motions made at Town Meeting are requests for specific action on a particular article. A main motion is generally a Finance Committee or Planning Board recommendation. A secondary motion can amend an article's wording or postpone or limit its consideration.

HOW ARE ARTICLES VOTED? Atwo-thirds majority vote is required for borrowing money, land transfers, abandoning projects for which money has already been borrowed and changes in zoning bylaws. A four-fifths vote is necessary to pay a bill for which too little money was appropriated the previous year.

QUORUMS No quorum is required for action at Annual Town Meetings, however under Nantucket's bylaw a minimum of five percent of the island's registered voters must be present at Special Town Meetings for passage of appropriations and three percent for approval of fund transfers involving money previously appropriated or from the surplus

reserve account. I