Special Town Meeting - Monday, November 7, 2005

Message from the Finance Committee

A fall Special Town Meeting for the Town of Douglas has become a regular occurrence. Typical to others,
this meeting will make corrections, supplemental appropriations and address some non-financial issues
such as By-Law changes. This meeting has some time-sensitive articles such as the prior year capital item,
correction to the payroll for an error, additional funding for the School operating budget for personnel
shortages, bringing Town oversight to the Rte. 16 project and, after receiving yet another large Federal
Grant for our Fire Truck purchase, addressing the A.D.A. concerns throughout the Town for compliance
with Federal guidelines. The funding sources for this meeting are scarce.

The Overlay Surplus statute that allows the Town to request a review of this Account by the Board of
Assessors and release of excess funds is the revenue source used for most of the articles. The definition of
Overlay and Overlay Surplus can be found in the attached mini-glossary of terms at the end of this
publication. The funds accumulated here have grown for more than 3 years; the last time that the Town
used these funds was FY2001. Other funds have been realized through receipt of a generous Homeland
Security Grant for the Fire Truck that was funded at the Annual Town Meeting in the Capital Plan; this
savings can now be re-directed for some articles. Also, the Interim-Town Accountant has corrected the
revenues expected due to changes that have occurred and the Town will realize an additional $25,000.
The appropriations to be considered by Town Meeting will exhaust all current revenues available.

Financial Term Definitions:
Overlay: An account established annually to fund anticipated property tax abatements, exemptions and
uncollected taxes in that year. The overlay reserve is not established by the normal appropriation process,
but raised on the tax rate recapitulation sheet.
Overlay Surplus: Any balance in the overlay account of a given year in excess of the amount remaining
to be collected or abated can be transferred into this account. Within ten days of a written request by the
chief executive officer of a city or town, the assessors must certify the excess amount of overlay available to
transfer. Overlay surplus may be appropriated for any lawful purpose. At the end of each fiscal year,
unused overlay surplus is “closed” to surplus revenue and becomes a part of free cash.

Article 1. Amendment of FY 06-11 Capital Improvement Plan
Article 2. Acceptance of M.G.L. Ch.71 §71E:
Article 3. FY06 School Operating Budget
Article 4. Tax Incremental Financing Plan: B& L Pools
Article 5. Tax Incremental Financing Plan: Danlyn Realty
Article 6. Community Bulletin Board
Article 7. Selectmen’s Office – Wages
Article 8. Unemployment Expenses
Article 9. Interim Town Accountant
Article 10. Sign By-Law Changes

View the full Voter Information Bulletin (108K PDF)

Additional information from the Capital Improvement Committee regarding Article 1

To save the town additional printing and mailing costs, the following information was not included in the mailed Voter Information Bulletin:

Capital Improvement Committee Report

The Capital Improvement Committee is recommending three projects for funding in FY2006, as amendments to the previously approved FY2006 Capital Plan.  These items and funding specifications are supported by both the Board of Selectmen and Finance Committee.

In the prior fiscal year the School Department began an emergency project to replace an underground oil tank at the Intermediate Elementary School that was showing signs of leakage.  The Capital Improvement Committee was not informed of this project, and school administration assigned their operating budget funds to cover the cost.  After the fiscal year ended and a change took place in school administration, the School Committee was made aware funds were not available due to overspending beyond the operating budget.  The School Committee and Interim Superintendent brought a request to fund this project to the Capital Improvement Committee.  The project was nearly complete at this point.  Capital funding is the appropriate means to fund this project and we support this funding for this Special Town Meeting. The vendor is due payment for their work completing the project.  Insurance and grants have paid for the majority of this project, and an additional $35,000 grant application is pending. 

The ongoing Route 16 construction near the High School and Intermediate Elementary School is a state funded project.  We recently received two related requests for town funding from the Town Engineer.  When the project is complete, the town will own this section of road and will be responsible for its maintenance.  The town will also be responsible for any significant overages in the project.  For these reasons, it is vital the town have its own construction administration representative to protect our interests.  The installation of sidewalks is not part of the construction project.  Sidewalk design now will allow for site preparation for possible construction later at a much lower cost than if design were postponed.  Any funding request for sidewalk construction would be brought forward at a later date.

All towns must have an evaluation and transition plan for the Americans with Disabilities Act (ADA).  A recent federal audit determined the town’s current plan does not meet current federal requirements.  To remain eligible for federal grants and to decrease our legal liabilities, the plan must be updated immediately.  An outside firm specializing in ADA evaluations will review all town buildings and property.  Upon conclusion of their evaluation they will assume legal liability for the plan, decreasing the town’s potential exposure to ADA-related lawsuits.

Due to the prior-year nature of the oil thank removal project, this article will require a nine-tenths majority vote.