Glossary of Terms

  • Articles: The proposed agenda for Town Meeting. These are individual proposals for action to be taken or approved by the voters at Town Meeting. They are publicized to the community well in advance and form the basis for discussion prior to and at the meeting.

  • Assessed Value: The value the Assessor’s Office places on a property that forms the basis for the actual property tax that an owner pays. It depends on factors like location, construction quality, upgrades, and neighborhood value, and may differ from market value. Property tax = Assessed Value × Tax Rate.

  • Balanced Budget: Projected revenues equal projected expenses. The town is required by law to present a Balanced Budget at Town Meeting. This process involves municipal leadership, the Select Board, Finance Committee, and School leadership. This requirement can result in service cuts, layoffs, or closures if revenues are insufficient.

  • Capital Expenditure Overrides: Temporary overrides to cover purchases typically financed within a single fiscal year.

  • Debt Exclusion Overrides: Temporary overrides that allow property tax increases above Proposition 2½ limits to pay for debt on capital projects (e.g., buildings or major equipment) until the debt is repaid.

  • Free Cash: Unused funds from a fiscal year that can be redirected to other needs if not restricted. Frequent reliance on Free Cash is not sustainable and can contribute to Structural Deficits.

  • General Election: A standard election, typically held in June, where voters elect officials and vote on ballot questions, including override proposals approved at Town Meeting.

  • General Override: A permanent increase to the Tax Levy above the 2.5% limit under Proposition 2½, if approved at Town Meeting and at the ballot. Used to support ongoing municipal services and school operations. Marblehead has not passed one since 2005.

  • Infrastructure: Physical systems like roads, bridges, water, sewer, and buildings, as well as organizational and technological systems that support town operations.

  • Level Funding: Keeping funding roughly the same year over year. In periods of rising costs, this often leads to service cuts or layoffs to maintain a Balanced Budget.

  • Level Services Budget: The funding required to maintain the same level and quality of services year over year. Typically requires increased revenue in times of inflation or contractual cost increases.

  • Memo of Understanding (MOU): A non-binding document outlining shared commitments. In this context, it may include a commitment not to seek another General Override within a defined period, helping build public trust and accountability.

  • Menu Approach to General Override (vs. Tiers): Allows voters to choose which services to fund (e.g., supporting one department but not another). This can create competition between services rather than supporting a comprehensive plan.

  • Municipal Services (aka Town Services): Non-school services including public safety, DPW, public buildings, recreation, library, Council on Aging, health services, and administrative functions. These, along with schools, make up the full town budget.

  • Office of Campaign and Political Finance (OCPF): The Massachusetts state office that regulates campaign finance related to ballot questions. Rules apply to both volunteers and public employees involved in advocacy efforts.

  • Proposition 2½: Massachusetts law limiting annual increases in total property tax revenue to 2.5% of the prior year’s levy. Overrides are required to exceed this limit. The cap applies to total revenue, not individual property tax bills.

  • Structural Deficit: An ongoing imbalance where revenues cannot keep up with expenses due to systemic constraints like Proposition 2½ and rising costs.

  • Tax Levy: The total amount of property taxes collected by the town. Override proposals increase the Tax Levy by a specified amount.

  • Tax Rate (aka Mill Rate): The tax per $1,000 of assessed value used to calculate property taxes. Example: a rate of $8.65 results in $8,650 in taxes on a $1,000,000 property.

  • Tiered Approach or Override Tier: A structured set of funding levels that build on one another. Each tier represents increasing investment across town services and is typically phased in over multiple years.

  • Town Meeting: The town’s primary governing body where voters consider and act on Articles in the Warrant. The 2026 meeting begins May 4.

  • Warrant: The full list of Articles to be discussed at Town Meeting. It is published in advance and reviewed by the Finance Committee for recommendations.