Assessed Value
The value of a property, as determined by the Assessors. This value is relative to the value of other properties in the Town, and is not intended to directly reflect the price at which any particular property could be bought or sold.

Available Funds
See Unencumbered Funds.

Tax Levy Ceiling
2½% of the total assessed value of property in the Town. This is one of the two key tax-limiting provisions of Proposition 2½.

Capital Projects Fund
Funds that are used for acquiring, improving or constructing major capital facilities and resources. Examples include: a new fire truck, a new roof for a school, etc.

CDBG Funds
Community Development Block Grant. A grant of money from the Federal government to the Town for qualified projects and programs.

Cherry Sheet
A cherry-colored State form showing all State and County charges, and the amount of State Aid to be received by the Town, in the next fiscal year.

Debt Exclusion
A provision of Proposition 2½ that allows the Town, through a Town-wide vote, to exclude the payments on the debt for a particular project (such as a new fire station) from the tax levy limit until the debt is paid.

Education Aid
Funds provided by the State to the Town for education expenditures, based on a formula that considers the kinds and numbers of students within the Town. The funds vary in amount from year to year, as does the formula. Also known as School Aid.

Enterprise Funds
Funds that are established with an independent annual budget, in order to encourage the independent operation of a Town service that has costs which can be recovered through user fees. Profits may be used to reduce user fees or pay for capital improvements. Losses must be made up from the General Fund of the Town. Arlington has enterprise funds for Water & Sewer, Veterans' Memorial Rink, Recreation, Youth Services, and Council on Aging Transportation.

Excess Levy Capacity
The difference in amounts between the allowable tax levy limit (what could be raised in revenue) and the actual tax levy (what is actually assessed).

Fiscal Year             
The period of time from July 1 through June 30.

Free Cash
See Unencumbered Funds.

General Fund
All funds that are not accounted for in other funds or accounts, such as capital projects, enterprise funds, trust funds, etc. The general fund constitutes the bulk of the Town's revenues and expenditures.

Local Aid
See State Aid.

Local Receipts
Funds that are raised locally, and are not property taxes. Examples include motor vehicle excise taxes, fees (such as building permits, etc.), licenses, permits, investment income and rental income from Town property.

New Growth Revenue
A provision of Proposition 2½  that governs property tax revenue from buildings or additions that were constructed after the enactment of Proposition 2½ . When the tax rate is applied to the total assessed value of the these properties, the Town's tax levy can be permanently increased by that amount in the year in which the properties become taxable.

Overlay
The amount of money raised by the Assessors in excess of appropriations and other charges. This money is used to create a fund to cover abatements (reductions in taxes due to over-assessments) and to avoid fractions in the tax rate.

Overlay Reserve
This is the amount of money accumulated as Overlay for previous years which has not been used and which is not required to be held in a specific Overlay account for a given year. Once this money is released by the Assessors, it may be used for any municipal purpose.

Override
A provision of Proposition 2½  that allows the Town to increase the tax levy by a Town-wide vote of the electorate. Also see Debt Exclusion.

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