Ayer Shirley Regional School District Preliminary Budget

Fiscal Year 2017

January 25, 2016 Updated February 22, 2016

Learn ~ Grow ~ Explore ~ Connect ~ Collaborate ~ Communicate

Table of Contents

ASRSD Administration ...... 2 ASRSD Vision & Mission Statement ...... 3 Executive Summary ...... 4 Core Beliefs ...... 5 Our History ...... 6 Awards and Accomplishments ...... 7 Regional School Committee ...... 9 Organizational Chart……………………………………………………………………………………………………..10 ASRSD by the Numbers ...... 11 Ayer Shirley Economic Data ...... 14 FY17 Budget Timeline Planning and Development ...... 15 Special Education and Student Services Summary ...... 16 Special Education Organizational Chart ...... 17 FY16 Special Education Data ...... 18 ASRSD Special Education Programs ...... 20 ASRSD Full Time Employees ...... 21 Three Year Capital Plan ...... 22 Glossary of Terms ...... 26 FY17 Budget ...... 33

District Administration

Mary E. Malone, Ed.D. Superintendent

Mary Beth Hamel Assistant Superintendent in Support of Teaching & Learning

William J. Plunkett Director of Finance

School Administration

Lura A. White Elementary School Jill Peterson, Principal Carol Poulin, Assistant Principal

Page Hilltop Elementary School Fredrick Deppe, Principal Elizabeth Lewis, Assistant Principal

Ayer Shirley Regional Middle School Roberta Aikey, Principal Bryan Oelerich, Assistant Principal

Ayer Shirley Regional High School Albert Varga, Interim Principal Sean McLaughlin, Assistant Principal

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ASRSD Vision Statement

Our vision is to connect, engage, and inspire all students in the Ayer Shirley Regional School District to reach academic excellence. We, the educators of the Ayer Shirley Regional School District, will instill habits of reflection and inquiry to challenge our students in setting ambitious academic and personal goals. Students will develop a strong voice to express their thoughts and ideas in the community, and the confidence to showcase their talents and successes in preparation for entry into college and the world of work.

ASRSD Mission Statement

The mission of the Ayer Shirley Regional School District is to educate - and to graduate - all of our students, and to foster a safe and respectful environment where each student develops the skills, character, and values needed to become a productive member of the global society.

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Executive Summary

We are pleased to present the FY17 preliminary budget. The recommended FY17 budget is $29,697,059 which is an increase of $873,643 or 3.0%. This budget was developed in collaboration with district leaders, School Committee, and local officials. Budget development was guided by:

• Academic excellence for every student • Social emotional well-being for all students • Safe, adequate and secure environments • Responsible budget • Reasonable class size • Academic needs for special education and English Language Learners

This budget funds expansion of two Advanced Placement (AP) courses at the high school: Chemistry and English Language & Composition as well as Computer Programming; the addition of two elementary Instructional Technology teachers; known special education and English Language Learner (ELLs) needs; and full implementation of the District Strategic Plan focused on strengthening instruction, developing a collaborative culture, and improving student achievement.

We have many accomplishments and successes to celebrate: the high school renovation project has been completed; we have established a continuum of special education services K-12, we made significant upgrades to technology infrastructure at all schools; provided every educator with a chrome book; rolled out a new district website; migrated to a new feature rich parent portal; online student portal; added a marching band with gorgeous uniforms at the high school; expanded sports and extracurricular programs, and implemented French I and Spanish I in 8th grade.

This budget document provides the FY17 budget and information on budget drivers as well as information on the wonderful communities of Ayer and Shirley. We look forward to your feedback.

Sincerely, Mary Malone Superintendent of Schools

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Our Core Beliefs

 We have high expectations for all students. Every student deserves a quality education.

 We believe in a personalized learning environment.

 Successful students are independent thinkers and doers, and persevere in finding solutions to problems.

 An educated child is one who has developed and evolved as a “whole child” – in the academic, social, emotional, personal and cultural domains.

 Habits of reflection, setting goals, and measuring one’s progress support lifelong learning.

 Respect for self, property, and others are essential to a healthy learning community.

 Psychological and physical safety is necessary conditions for learning.

 Service to others builds character, is supportive of personal growth and career development, and connects students to the real world.

 Educators, students, families and communities collaborating together results in high quality educational programming.

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Our History

The Ayer Shirley Regional High School was established along with the Ayer Shirley Regional School District on July 1, 2011. The new district, located in central Massachusetts Middlesex County, encompasses 25.4 square miles with a combined population of 14,600 residents. The 2000 census indicated approximately 84% of the residents were Caucasian, 6% African American, 2.5% Asian, 6% Hispanic and other nationalities comprising the last 1.5% of the population.

Both Ayer and Shirley were originally part of the town of Groton before becoming incorporated in 1871 and 1753 respectively. The town of Ayer was a major commercial railroad junction and has a history associated with the former Fort Devens, established to train and house the country’s military personnel during World War 1. Shirley’s past reflects a mill town heritage along with strong Shaker roots. The historic town center of Shirley has been well preserved and some of the mill buildings have been reinhabited by 21st century businesses.

Both town populations are growing as the suburbs of Boston continue to creep west. The convenience of the commuter rail stations in both towns make traveling east to Boston or west toward Fitchburg quite easy. Employers in the area include both federal and state prisons, the schools, as well as a variety of industrial businesses.

The Ayer Shirley Regional School District campuses are open to the communities for social, cultural, educational, and athletic events throughout the school year.

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Awards and Accomplishments

• 2015 US News and World Report 2015 Silver Medal winner as one of the top high schools in the US and Massachusetts. ASRHS is in the top 12% of high schools in the US and top 22% in MA.

• The Ayer Shirley High School addition/renovation project received the highest architecture award, the 2015 CEFPI Northeast Region Ed Kirkbride Award recognizing quality and innovation in both school planning and design.

• Ayer Shirley Regional High School has been removed from the Warning Status for Community Resources for Learning and is now fully accredited by New England Association of Schools and Colleges (NEASC).

• First Ayer Shirley Regional School District Hall of Fame Gala was a terrific success.

• ASRHS started a junior varsity program for both boys and girls soccer.

• Over fifty percent of the ASRHS student body participated in athletic programs during both the 2014-2015 and 2015-2016 school years.

• Thirty two ASRHS students were recognized by the Mid-land Wachusett League as All Stars during the 2015-2016 school year.

• Two ASRHS students were recognized by the Mid-land Wachusett League as League MVPs during the 2015-2016 school year.

• The ASRHS boys Cross Country team were Mid-land Wachusett League Champions.

• ASRHS Student Council was recognized by the Massachusetts Association of Student Councils as a Five Star Council.

• Ayer Shirley Regional High School students received Honorable Mention in the 2014- 2015 YouTube High School Burn Awareness Video Contest supported by the Massachusetts Department of Fire Services and the Shriners Hospital for Children, Boston. Students were also nominated for their 2015-2016 video.

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Awards and Accomplishments

• FIRST Robotics team presented to School Committee Members and Superintendents from across the state at the 2015 MASC/MASS Conference.

• First Lego League Robotics Competition- won TEAMWORK Award.

• ASRHS Concert Band won Massachusetts Instrumental and Choral Conductors Association (MICCA) Bronze Medal at the 2015 MICCA Concert Festival.

• Two ASRHS band students accepted into the 2016 CDMMEA Honor Band and Chorus.

• ASRMS band won Trills and Thrills Superior Award.

• Full student participation K-12 in the December 2015 Hour of Code!

• ASRSD, Empower Me and American Girl Company co-sponsored a free screening of the documentary- “The Empowerment Project”.

• ASRHS Public Broadcast Award- Tracey Carpenter

• ASRHS participated in Women in Technology Program/BAE Systems

• Ayer Shirley Regional High School student inspired to host successful on-campus American Red Cross Blood Drive.

• Lura A. White Preschool Playground Project completed by volunteers.

• JUST IN! Placed on the College Board’s Gaston Caperton Opportunity Honor Roll for Expanding Access to College (only 130 districts recognized in the U.S. and only 13 in Massachusetts).

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Regional School Committee Members

Front Row: Joyce Reischutz, Vice Chairperson, Patrick Kelly, Chairperson Back Row: Michele Granger, Secretary, James Qunity, Member, Jonathan Deforge, Member, and Daniel Gleason, Member

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Organizational Chart

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ASRSD by the Numbers Enrollment by Grade 2015 - 2016 as of October 1, 2015 PK K 1 2 3 4 5 6 7 8 9 10 11 12 Total Ayer Shirley Regional High

School 0 0 0 0 0 0 0 0 0 0 126 92 91 92 401 Ayer Shirley Regional Middle

School 0 0 0 0 0 0 0 123 127 129 0 0 0 0 379 Lura A. White

Elementary School 35 45 72 50 62 61 67 0 0 0 0 0 0 0 392 Page Hilltop

Elementary School 29 76 84 89 88 68 89 0 0 0 0 0 0 0 523 District 64 121 156 139 150 129 156 123 127 129 126 92 91 92 1,695

Enrollment by Race/Ethnicity FY16 FY15 Race % of District % of State % of District % of State African American 4.7 8.8 4.7 8.7 Asian 2.7 6.5 2.4 6.3 Hispanic 10.8 18.6 10.9 17.9 Native American 0.2 0.2 0.4 0.2 White 76.4 62.7 77.5 63.7 Native Hawaiian, Pacific Islander 0.4 0.1 0.4 0.1 Multi-Race, Non-Hispanic 4.8 3.2 3.9 3.1

Enrollment by Gender FY16 FY15 Enrollment by Gender (2014-15) District State District State Male 877 488,472 854 489,731 Female 818 464,957 803 466,113 Total 1,695 953,429 1,657 955,844

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ASRSD by the Numbers

Department of Education Indicators (2014-2015 School Year) District State Attendance Rate 95.3 94.7 Average # of days absent 8.2 9 Absent 10 or more days 29.6 32 Chronically Absent (10% or more) 9.3 12.9 Unexcused Absences > 9 19.3 12.5 Retention Rate 0.8 1.5

2013-2014 MassCore Completion Report

Student Group # Graduated # Completed MassCore % Completed MassCore Female 31 11 35.5 Male 36 11 30.6 High needs 38 7 18.4 Low income 28 7 25 Students w/disabilities 16 0 0 Afr. Amer./Black 6 0 0 Hispanic/Latino 10 1 10 White 45 20 44.4 All Students 67 22 32.8

Selected Populations FY16 FY15 Title % of District % of State % of District % of State First Language not English 7.4 19 6.2 18.5 English Language Learner 3.5 9 3.2 8.5

Students With Disabilities 24.7 17.2 23.7 17.1

High Needs 42.1 43.5 41.4 42.2 Economically Disadvantaged 23.4 27.4 23.1 26.3

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ASRSD by the Numbers

Teacher Data (2014-2015) District State Total # of Teachers 136.6 71,886.80 % of Teachers Licensed in Teaching Assignment 100 97.4 Total # of Classes in Core Academic Areas 620 346,081 % of Core Academic Classes Taught by Teachers Who are Highly Qualified 95.6 95.4 Student/Teacher Ratio 12.1 to 1 13.3 to 1

Teacher Program Area Report by Full-Time Equivalents (2014-2015) District State General Education 109.2 59,893.60 Special Education 24.9 8,640.10 Career Vocational Technical 0 1,985.40 English Language Learner 2.5 1,367.70 Totals 136.6 71,886.80

Teacher Grade and Subject by Full-Time Equivalents for All Subjects (2014-2015) District State Grades PK-2 30.1 14,138.70 Grades 3-5 28.5 12,942.40 Grades 6-8 27.5 15,170.10 Grades 9-12 33.4 17,441.10 Multiple Grades 17.2 9,800.50 All Grades 0 2,393.40 Total 136.6 71,886.80

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Ayer Shirley Economic Data

Residential Property Rate: Ayer FY16 $14.53/$1,000 of taxable value Shirley FY16 $16.51/$1,000 of taxable value

Median Value of Owner Occupied Housing Units: Ayer $276,923 (2015) Shirley $259,836 (2015)

Household Income: Ayer $60,255 (2015) Shirley $54,774 (2015)

District School Facilities and Enrollment: The Town of Ayer entered into a Regional School District Agreement on or about March 6, 2010, which created the regional school district known as Ayer Shirley Regional School District. The Town of Shirley is the owner of certain real estate and buildings known as the Ayer Shirley Regional Middle School and Lura A. White School. The town leases the premises to the School District for a twenty-year period with the right to renew the lease for an additional twenty years.

The Town of Ayer is the owner of certain real estate and buildings known as the Page Hilltop Elementary School.

Facility Grade Town Date Enrollment 15/16 Built/Renovate (as of Oct. 1, 2015) Ayer Shirley Regional High School 9 - 12 Ayer Built 1963 401 Add/Reno 2013 Ayer Shirley Regional Middle 6 - 8 Shirley Built 2002 379 School Page Hilltop School PreK – 5 Ayer Built 1964 523 Expanded 1975 Lura A. White School PreK – 5 Shirley Built 1936 392 Expanded 1959 Addition 1978 Total Enrollment 1,695

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FY17 Budget Timeline Planning and Development

November / December Develop Budget Assumptions Request Dept./Building Budget Proposals Receive Dept./Building Budget Proposals Three-Year Capital Plan Development

January Budget Policy/Assumption Discussion Preliminary Budget Presentation Last Wednesday in January Governor Normally Files Budget

February Public Hearing Budget Presentation to Town of Shirley Budget Presentation to Town of Ayer

March RSC Adopts FY17 Budget

April Shirley Annual Town Meeting

May Ayer Annual Town Meeting

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Special Education and Student Services Summary

The Office of Special Education and Student Services provides support services to all students in the Ayer Shirley Regional School District community. Services include Special Education Services (academic, occupational therapy, physical therapy, speech and language therapy), School Counselors and School Psychologists, Health, English Language Education (ELE), and Early Childhood.

Each school, Lura A. White, Page Hilltop, Ayer Shirley Regional Middle and Ayer Shirley Regional High School have a variety of programs that meet the needs of students. These programs include full inclusion, partial inclusion, and substantially separate programs. Two Team Chairpersons conduct team meetings, oversee the completion and implementation of Individualized Education Programs (IEP), and serve as technical support to all staff in addressing special education concerns. Nurses are on duty in each school during the full school day to meet the needs of students attending that school.

The counseling staff provides individual and group counseling with students as well as support to administrators in working with staff and parents. In addition, they work with school staff to provide social skills and self-management training opportunities for students in all grades. The focus is to help students develop a sense of self, to develop confidence in their ability to interact positively with others, to manage conflict in appropriate ways, and to make positive choices.

English Language Learners (ELL) are supported by trained staff to acquire the level of English required to be academically successful in the community.

The goal of the ASRSD Special Education and Student Services office is to collaborate with parents, staff, and administration to provide comprehensive services that support student access to the curriculum and support the development of the whole child.

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Special Education Organizational Chart

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2015-2016 SPECIAL EDUCATION DATA

Total ASRSD Student Population (DESE Oct 1, 2015 data): 1695 Total Special Education Student Population: (DESE Oct 1, 2015): 392 Percent of students with IEP: 23.1% State average (2015): 17.3% Percent of total student population in out of district placements: 2.24% Percent of special education students out of district: 10.32%

Income:

Special Education Increments (School Choice) 2014-2015 2015-2016 SpEd Costs $231,000 $179,000 Students over $10,000 Each 10 5 Total Special Ed Choice Students 28 30

Special Education Incomes 2014-2015 2015-2016 Required Local Contributions (RLC) $10,736,761 $10,862,666 Chapter 70 Funds $8,038,666 $8,003,886 Medicaid $110,000 $110,000 Circuit Breaker (four payments) for FY16 Services $610,000 $660,000

2015-2016 Special Education Grants Total Grants $560,515 240 Grant $451,145 Paraprofessionals & consultant services (DW - District Wide) 274 Grant $13,482 Paraprofessional Development focus Special Education (DW) 262 Grant $23,958 Paraprofessionals working in early childhood programs 391 Grant $71,930 Paraprofessionals working in inclusive preschool classes

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2015-2016 SPECIAL EDUCATION DATA Continued

Expenditures:

Out of District Placements: 37 students attend out of district programs including education collaboratives, private day placements and residential placements.

Placements Students Percentage Ed Collaboratives (FLLAC, Valley, CASE, CAPS) 20 54% Private Day School 10 27% Residential Placement 7 19% *3 Cost Shares: 1 DCF, 2 DMH TOTAL Students 37 students

Graduation/Transitions from out of district programs FY 2016:

● One (1) student “Aged Out” at 22 (Public Day Placement) ● Two (2) students anticipate graduating in June 2016 (Private Day Placement)

Out of District Budget FY 2016:

● All placements $2,715,588 ● Range per placement $8,060 to $247,932 ● Transportation $775,708

Anticipated Costs 2017 (known as of 1/15/16): $3,041,003

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ASRSD Special Education Programs

Lura A. White School (Pre K - 5):

Integrated Pre­Kindergarten (4 year olds) Autism Spectrum Disorder (ASD)/Integrated Preschool (Ages 3 & 4) Autism Spectrum Disorder (ASD) Kindergarten Inclusion (K – 5) Functional Academics (Grades 3 - 5)

Page Hilltop School (Pre K - 5):

Integrated Preschool (3 year olds) Integrated Pre­Kindergarten (4 year olds) Inclusion (K – 5) Autism Spectrum Disorder (ASD) classroom (Grades 2 - 4) Student Support Center (Grades 2 - 5) Functional Academics (Grades K – 3)

Ayer Shirley Regional Middle School (6 - 8):

Inclusion (Grades 6 – 8) Student Support Center (Grades 6 - 8) Functional Academics/Life Skills (Grades 6 – 8) Autism Spectrum Disorder (ASD) (Grades 6 – 8) Language Based Learning Center (Grades 6 - 8)

Ayer Shirley Regional High School (9 ­ 12):

Inclusion (Grades 9 – 12) Student Support Center (Grades 9 – 12) Functional Academics/Life Skills (Grades 9 - 12) NEW Autism Spectrum Disorder (ASD) (Grades 9 - 12)

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ASRSD Full Time Employees

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Three Year Capital Plan Lura A. White Elementary

LAW Background/Detail Estimated Cost Total $ Heating, Ventilation &

Cooling $45,000 savings based on BTU $125,000 - Shirley perf. Oil to Gas Heat Conversion $125,000.00 conversion contract est.

Air Handlers (Café, Sm./Lg. Electrical repair; then fan/motor Gyms) review Repair pneumatic & $15 to $20K $ 20,000.00 automated controls Control tech will assess; develop Upgrade Automated Controls TBD proposal

Water, Sewer & Plumbing

Town DPW to assist? Interior $10 to $20K with DPW Connect to Town Sewer $ 20,000.00 plumbing work? assist

Doors, Windows & Floors

Metal and glass door replace 10 Door Replacement $12K + Labor $ 15,000.00 to 15 doors Blinds proposals received $2,800 + Labor $ 5,000.00

Electric

Emergency Generator 70 to 80 KW $18 to $20K + Install $ 25,000.00 Automatic Transfer Switch $4K to $6K + Install $ 10,000.00

Grounds & Other

need survey of locations and Some lights added or Upgrade Exterior Lighting estimate replaced

Total LAW $220,000.00

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Three Year Capital Plan Page Hilltop Elementary

PH Background/Detail Estimated Cost Total $ Heating, Ventilation &

Cooling Gas Volume not from street not Oil to Gas Conversion TBD available Approx 22 fans need repair or $6K to $11K plus repair & Rooftop Exhaust Fan Repairs $ 15,000.00 replace replace time Complete Steamtrap Survey $1500 to $2000 $ 2,000.00

Page Steam Trap Repair Repair or replace 35 steam traps $9K to $12K $ 12,000.00 Page and HT Air Handling Requires total cafeteria and cultural arts center Units abatement Oil Fired. First Estimate 2 Cleaver Brooks Boilers $340,000.00 $340,000 $3,000 existing repair; Pneumatic Controls Repair $ 15,000.00 $15,000 JACE

Water, Sewer & Plumbing

11 Bubblers in school. 4 OK - 7 Bubblers $5k plus labor $ 7,500.00 adjust or replace

Doors, Windows & Floors

Walkoff Rugs - Main $2,000 $ 2,000.00 Doorways Walkoff Rugs - Other $4,000 $ 4,000.00 Doorways

Electric

transformer is original; failure = no $50-90,000; one Transformer Replacement $ 90,000.00 service estimate was $69,000 as repair is not possible

Grounds & Other

Outside Lights Some completed

Blinds Roller Shades with pull chain $8,000.00 to $9,000.00 $ 10,000.00 Door Replacement survey needed TBD

Total PH $ 497,500.00

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Three Year Capital Plan Ayer Shirley Regional Middle School

MS Background/Detail Estimated Cost Total $ Heating, Ventilation &

Cooling Library HVAC Controls TBD - proposal pending

Water, Sewer & Plumbing

Doors, Windows & Floors

Stage Floor $10,000 (quote received) $ 10,000.00

Electric

Stage Lights Control - Job Complete $4,900.00

Replace Building Lighting original system failing; company $20-$40,000 $ 40,000.00 Controls out of business

Grounds & Other

Recommend replacement with Curb Repairs TBD granite not audible or connected; fix & Intrusion Detection TBD connect to JACE Phase 1 - integrate; add Expand Camera System $20,000 state grant $ 20,000.00 bathroom Expand Camera System Phase 2 - add additional cameras $30,000 - BCM $ 30,000.00 Upgrade / repair automated Install 4 "Spider" controls - 1 $7,500 $ 7,500.00 controls already completed

Total MS $107,500.00

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Three Year Capital Plan Ayer Shirley Regional High School and District

HS Background/Detail Estimated Cost Total $ $8,000 to $25,000 - extreme - Scoreboard Wide Range $ 25,000.00 over $100K Track New $300 to $500K $500,000.00 Stands $250,000.00

Lavatory Facilities $200,000.00 Concession Buildings $2,500 to $10,000 $ 10,000.00

Soccer Field Irrigation $3,000 $ 3,000.00

Turf Field $500,000 $500,000.00 Total HS $1,488,000.00

DISTRICT Background/Detail Estimated Cost Total $ With plow and trailer hitch; for Pickup Truck - New or Used $15K to $35K $ 35,000.00 district activities Trailer Move equipment and supplies $4K to $5K $ 5,000.00

Total District $ 40,000.00 Grand Total: $ 2,353,000.00

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Glossary of Terms

Appropriation: An authorization granted by a town meeting, city council or other legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the times periods within which it may be expended.

Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes. In Massachusetts, assessed valuation is based on the property’s full and fair cash value as set by the Assessors.

Audit: An examination of a community’s financial systems, procedures, and data by a certified public accountant (independent auditor), and a report of the fairness of financial statements and on local compliance with statues and regulations. The audit serves as a valuable management tool for evaluating the fiscal performance of a community.

Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other onetime costs. Examples of available funds include free cash, stabilization fund; overlay surplus, water surplus, enterprise net assets, unrestricted (formerly retained earnings).

Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time.

Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy, rates, and identify those items that were not recommended.

Capital Improvement Program: A blueprint, for planning a community's capital expenditures that comprises an annual capital budget and a five year capital program. It coordinates community planning, fiscal capacity and physical development. While all of the community’s needs should be identified in the program, there is a set of criteria that prioritizes the expenditures.

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Chapter 70 School Funds: Chapter 70 refers to the school funding formula created under the Education Reform Act of 1993 by which state aid is distributed through the Cherry Sheet to help establish educational equity among municipal and regional school districts.

Cherry Sheets: Named for the cherry colored paper on which they were originally printed, the Cherry Sheet is the official notification to cities, towns and regional school districts of the next fiscal year’s state aid and assessments. The aid is in the form of distributions, which provide funds based on formulas and reimbursements that provide funds for costs incurred during a prior period for certain programs or services.

CMR: General Laws of Massachusetts Chapter 30A: Section 6A. Code of Massachusetts regulations; first publication. Section 6A. Prior to publication of the first issue of the Massachusetts Register, the state secretary shall first cause to be published all currently effective agency regulations in a special publication of the Massachusetts Register to be designated as the "Code of Massachusetts Regulations".

Collective Bargaining: The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union.

Cost of Living Adjustment: Reference to language in municipal contracts that provide for annual or periodic increases in salaries and wages for employees over the course of the contract. The amount of an increase is most often negotiated based on a community's ability to pay, but is sometimes tied to the annual change in a specified index, i.e., consumer price index (CPI).

Debt Authorization: Formal approval by a two-thirds vote of town meeting or city council to incur debt, in accordance with procedures stated in MGL Ch. 44 §§1, 2, 3, 4a, 6-15.

Debt Exclusion: An action taken by a community through a referendum vote to raise the funds necessary to pay debt service costs for a particular project from the property tax levy, but outside the limits under Proposition 2½. By approving a debt exclusion, a community calculates its annual levy limit under Proposition 2½, and then adds the excluded debt service cost. The amount is added to the levy limit for the life of the debt only and may increase the levy above the levy ceiling.

Deferred Revenue: Amounts that do not meet the criteria for revenue recognition. Also, earned amounts that are not yet available to liquidate liabilities of a current period.

DESE: State department providing resources to school administrators, teachers, students and parents in Massachusetts. The DESE Finance section deals with a wide range of school finance issues and takes a major role in determining state aid to municipalities for education via the Local Aid projects that make up the Cherry Sheet process.

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DOR: State department responsible for collecting a wide variety of taxes, providing taxpayer support, and administering programs related to municipal finance through the Division of Local Services (DLS).

DLS: A division within the DOR (Department of Revenue) responsible for helping Massachusetts cities and towns achieve sound and efficient fiscal management through technical assistance, training, and oversight. DLS bureaus are responsible for ensuring the fairness and equity of local property taxation, the accuracy and quality of local accounting and treasury management, interpreting state laws that affect local governance, distributing local aid, maintaining a comprehensive databank on local finances, and auditing local school districts.

Education Reform Act of 1993: State law that authorized the seven-year, Chapter 70 funding program for education and that established spending targets for school districts as a means to remedy educational inequities.

Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that is chargeable to, but not yet paid from, a specific appropriation account.

Estimated Receipts: A term that typically refers to anticipated local revenues listed on page three of the Tax Recapitulation Sheet. Projects of local revenues are often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget.

Excess Levy Capacity: The difference between the levy limit and the amount of real and personal property taxes actually levied in a given year. Annually, the board of selectmen or city council must be informed of excess levy capacity and their acknowledgment must be submitted to DOR when setting the tax rate.

Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget.

Expense: An identified cost incurred to accomplish a particular goal.

Financial Statement: A presentation of the assets and liabilities of a community as of a particular date and most often prepared after the close of the fiscal year.

Fiscal Year: Since 1974, the Commonwealth and municipalities have operated on a budget cycle that begins July 1 and ends June 30. The designation of the fiscal year is that of the calendar year in which the fiscal year ends. For example, the 2000 fiscal year is July 1, 1999 to June 30, 2000. Since 1976, the federal government fiscal year has begun October 1 and ended September 30.

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Fixed Assets: Long-lived, tangible assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances.

Foundation Budget: The spending target imposed by the Education Reform Act of 1993 for each school district as the level necessary to provide an adequate education for all students.

Fund Accounting: Organizing the financial records of a municipality into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple

General Fund: The fund used to account for most financial resources and activities governed by the normal town meeting/city council appropriation process.

General Ledger: The accountant's record of original entry, which is instrumental in forming a paper trail of all government financial activity.

General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority.

Governmental Funds: Funds generally used to account for tax-supported activities. There are five different types of governmental funds: the general fund, special revenue funds, capital projects funds, debt service funds, and permanent funds.

Internal Control Structure: The policies and procedures established by management to ensure the integrity and comprehensiveness of the data collected by the accounting system for use in internal and external financial reports, as well as the overall control environment in which the government operates.

Levy: The amount a community raises through the property tax. The levy can be any amount up to the levy limit, which is re-established every year in accordance with Proposition 2½ provisions. Local Aid Revenue allocated by the Commonwealth to cities, towns, and regional school districts. Estimates of local aid are transmitted to cities, towns, and districts annually by the "Cherry Sheets."

Levy Ceiling: A levy ceiling is one of two types of levy (tax) restrictions imposed by MGL Ch. 59 §21C (Proposition 2½). It states that, in any year, the real and personal property taxes imposed may not exceed 2½ percent of the total full and fair cash value of all taxable property. Property taxes levied may exceed this limit only if the community passes a capital exclusion, a debt exclusion, or a special exclusion.

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Levy Limit: A levy limit is one of two types of levy (tax) restrictions imposed by MGL Ch. 59 §21C (Proposition 2½). It states that the real and personal property taxes imposed by a city or town may only grow each year by 2½ percent of the prior year's levy limit, plus new growth and any overrides or exclusions. The levy limit can exceed the levy ceiling only if the community passes a capital expenditure exclusion, debt exclusion, or special exclusion.

Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget.

Line Item Transfer: The reallocation of a budget appropriation between two line-items within an expenditure category (i.e., salaries, expenses). Employed as a management tool, line-item transfer authority allows department heads to move money to where a need arises for a similar purpose and without altering the bottom line. Whether or not line item transfers are permitted depends on how the budget is presented (i.e., format) and what level of budget detail town meeting believes it is approving.

Local Aid: Revenue allocated by the Commonwealth to cities, towns, and regional school districts. Estimates of local aid are transmitted to cities, towns, and districts annually by the "Cherry Sheets." Most Cherry Sheet aid programs are considered general fund revenues and may be spent for any purpose, subject to appropriation.

Local Receipts: Locally generated revenues, other than real and personal property taxes. Examples include motor vehicle excise, investment income, hotel/motel tax, fees, rentals, and charges. Annual estimates of local receipts are shown on the tax rate recapitulation sheet.

Maintenance Budget: A no-growth budget that continues appropriations for programs and services at their current year levels. The actual appropriation to maintain programs and services may still increase due to inflation or other factors.

MGL: Laws passed by the Massachusetts legislature. The MGL is organized by chapters with multiple sections in each chapter. Currently there are 282 chapters.

Modified Accrual Basis of Accounting: A method of accounting that recognizes revenues in the accounting period in which they become available and measurable.

MRGF: An estimate of the percentage change in a municipality's revenue growth for a fiscal year. It represents the combined percentage increase in the following revenue components: automatic 2½ percent increase in the levy limit, estimated new growth, the change in selected unrestricted state aid categories, and the change in selected unrestricted local receipts (Education Reform Act of 1993).

NSS: School budget and municipal budget amounts attributable to education, excluding long- term debt service, student transportation, school lunches and certain other specified school

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expenditures. A community’s NSS funding must equal or exceed the NSS Requirement established annually by the Massachusetts Department of Elementary and Secondary Education (MA DESE) (Education Reform Act of 1993).

New Growth: The additional tax revenue generated by new construction, renovations and other increases in the property tax base during a calendar year. It does not include value increases caused by normal market forces or by revaluations. New growth is calculated by multiplying the assessed value associated with new construction, renovations and other increases by the prior year tax rate. The additional tax revenue is then incorporated into the calculation of the next year's levy limit. For example, new growth for FY06 is based on new construction, etc. that occurred between January and December 2004. In the fall of 2005, when new growth is being estimated to set the FY06 levy limit, the FY05 tax rate is used in the calculation.

Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as "personal services,” “expenses,” or "capital outlay".

Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year.

Override: A vote by a community at an election to permanently increase the levy limit. An override vote may increase the levy limit no higher than the levy ceiling. The override question on the election ballot must state a purpose for the override and the dollar amount.

Personal Property Tax: Movable items not permanently affixed to, or part of the real estate. It is assessed separately from real estate to certain businesses, public utilities, and owners of homes that are not their primary residences.

Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output.

Proposition 2 ½: State law enacted in 1980 that regulates local property tax administration. Major provisions of this legislation are located in MGL Ch 59 - Assessment of Local Taxes § 21C and relate to the determination of a levy limit and levy ceiling for each town.

Purchase Order: An official document or form authorizing the purchase of products and services.

Receipts: Money collected by and within the control of a community from any source and for any purpose.

Requisition: Form used by the requesting department when ordering products and services from external vendors. This document generates a Purchase Order.

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Revolving Fund: Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service. For departmental revolving funds, MGL Ch. 44 §53E½ stipulates that each fund must be reauthorized each year at annual town meeting or by city council action, and that a limit on the total amount that may be spent from each fund must be established at that time. The aggregate of all revolving funds may not exceed ten percent of the amount raised by taxation by the city or town in the most recent fiscal year, and no more than one percent of the amount raised by taxation may be administered by a single fund. Wages or salaries for full-time employees may be paid from the revolving fund only if the fund is also charged for all associated fringe benefits.

Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property.

Unfunded Mandate: A requirement imposed by law, regulation or order without underlying financial support, thereby resulting in direct or indirect costs to the body made responsible for its implementation.

Warrant: An authorization for an action. For example, a town meeting warrant establishes the matters that may be acted on by that town meeting. A treasury warrant authorizes the treasurer to pay specific bills. The assessors’ warrant authorizes the tax collector to collect taxes in the amount and from the persons listed, respectively.

Zero Based Budget: A budget building technique where each department begins at zero and adds the cost of essential programs up to an established funding limit. Each year the process begins again at zero prompting close scrutiny and prioritization of costs annually.

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FY17 Budget

Summary of FY17 Budget………………………………………………………………………………………page 1 Assessment Detail…………………………………………………………………………………………………page 2 • 1st Section: Operating • 2nd Section: Debt Summary • 3rd Section: Assessment Allocation Phase –In Departments…………………………………………………………………………………………………pages 3 – 16 Debt, Capital, Revolving, Grants, Enrollment………………………………………………..pages 17 - 21

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