II. STRUCTURE, ADMINISTRATION, FINANCE
No single document or charter establishes the legal basis of Amherst's government. Instead that basis must be sought in many places: the General Laws of the Commonwealth, the Representative Town Meeting Act, the Town Manager Act, the Town By-Laws, and tradition.
3. REPRESENTATIVE TOWN MEETING
The legislative function of Amherst's government is vested in Town Meeting, which makes rules, passes by-laws, and appropriates money. The traditional New England town meeting includes all registered voters of the town. Although in 1938 Amherst adopted the representative form of town meeting, the body continues to be called simply Town Meeting.
MEMBERSHIP
Amherst's 240 elected town meeting members are chosen by precinct for terms of three years, with one-third of the membership chosen each year. In addition, there are 16 ex-officio positions.
While only members may make motions and vote at Town Meeting, all of Amherst's registered voters may participate in debates and address the meeting.
MEETINGS
The Select Board calls a town meeting by issuing a warrant-the name given to the agenda. The Select Board and other town committees sponsor most items (articles) in the warrant. Citizens may also sponsor articles by a procedure described in a later chapter (see page 57). All town meetings meet for as many evenings as are required to cover all the articles in the warrant.
The state requires every town to call an Annual Meeting between February 1 and May 31 to adopt a budget for the ensuing fiscal year. When a referendum on the budget is not required (see pages 21, 24), Amherst's Annual Meeting usually begins in late April or early May. When a referendum is needed, the meeting usually begins earlier and considers only the budget. A second spring meeting then considers other business and usually begins a few weeks later. Special town meetings may be called any time during the year by the Select Board or by petition of 200 registered voters. Amherst regularly schedules a fall meeting. All meetings except the annual spring meeting are special meetings.
MODERATOR
A Town Moderator, elected annually, presides over all sessions of Town Meeting. The moderator also appoints the Finance Committee (see page 21) and appoints ad hoc committees when so directed by Town Meeting.
The powers of the Moderator stem from Massachusetts General Laws, the Rules of Town Meeting (Town By-Laws), and local custom.
More information on Town Meeting can be found in the League of Women Voters' Town Meeting Handbook, available in the Town Manager's office.
TABLE 2. ELECTED REPRESENTATIVES AND OFFICIALS
1240 elected and up to 16 ex-officio members 24 elected, I appointed by the Governor 3The Regional School Committee is composed of the five members of the Amherst School Committee, two members of the Pelham School Committee, and one member each from the Leverett and Shutesbury committees.
4. ADMINISTRATION
SELECT BOARD
The General Laws of the Commonwealth of Massachusetts recognize the Board of Selectmen as the town's chief elected officials and in many ways treat the Board as the counterpart of the city mayor. In 1988, the Amherst Select Board adopted its current name in place of the traditional Board of Selectmen, the term still used by the state and most towns.
Early town meetings chose select boards to enforce the votes of the meetings and to carry out the daily affairs of the town, thus reducing the necessity for numerous town meetings throughout the year. Over the years, select boards have been granted discretionary and regulatory authority over certain aspects of town affairs and administration.
Although the Amherst Select Board lacks the broad policy authority of a city council, it helps shape policies through recommendations to Town Meeting and decisions made within the framework established by that body. The powers and duties of the board, which also serves as Sewer Commission, include general governance, issuing warrants for town meetings, appointing the Town Manager and many committees, issuing certain licenses and permits, enforcing special sections of the town by-laws, signing all bonds and notes for borrowing money, and regulating the public ways.
TOWN MANAGER
As local government has increased in complexity, many towns have chosen to employ professional administrators. Amherst is one of 35 Massachusetts towns now administered under the Select Board/Town Manager form of government. The Town Manager-appointed by the Select Board and serving at its discretion-is the chief administrative officer of the town.
Powers and duties. Under the Town Manager Act (Chapter 11, Acts of 1951 as amended) the Town Manager:
- supervises and directs the administration of all departments, boards, and commissions except the Select Board, Moderator, Finance Committee, schools, libraries, Zoning Board of Appeals, election officers, Board of Registrars, and Elector for the Oliver Smith Will. (The Housing Authority and Redevelopment Authority are not town departments and are covered by other state laws.);
- appoints and removes, if necessary, town officers, staff, and certain boards and commissions (see Figure 3, pages 16-17 and Figure 7, pages 28-29);
- attends all regular meetings of the Select Board, keeps the Board advised as to the needs of the town, and recommends to it such measures requiring action by them or the town as the manager may deem necessary or expedient;
- has jurisdiction over the rental, use, and maintenance of all town property except property controlled by the schools or Trustees of the Town Library;
- has jurisdiction over the purchase and use of supplies, materials, and equipment and the awarding of contracts for departments under the manager's authority; at the request of the schools or library, may make purchases and award contracts on their behalf;
- administers directly or indirectly all laws applicable to the town, all bylaws, and all regulations established by the Select Board;
- prosecutes, defends, and compromises all litigation to which the town is a party, appoints Town Counsel, employs special counsel whenever in the judgment of the Select Board it may be necessary;
- acts as chief fiscal officer of the town, signs all warrants for the payment of town funds;
- prepares and administers a comprehensive annual budget.
OTHER GENERAL ADMINISTRATION
The Town Manager determines the organization of the town's departments, within the constraints of Massachusetts General Laws, the Town Manager Act, the Personnel By-Law, and the budget.
The present duties of the town's administrative officers are described below. The roles of the various departmental officials are discussed in later chapters (see also Organization Chart, pages 28-29).
The Finance Director:
- works with the manager to plan and prepare the annual budget; • oversees insurance, and data processing;
- supervises the departments of the 7keasurerlCollector, Accountant, and Assessors, acts as liaison with the Data Management Center.
The Treasurer/Collector:
- as Treasurer, acts as custodian of the town's funds, manages investments, and issues and retires debt;
- as Collector, is responsible for billing and collection of monies due the town, including property and motor vehicle excise taxes and charges for water, sewer, refuse disposal, and ambulance services;
- as Parking Clerk, is responsible for collecting parking fines.
The Town Accountant reviews all requests for payment of town funds for compliance with the law, oversees purchasing, and prepares all warrants for such payments. The accountant also maintains the complete, official financial records of the town and prepares other records and reports.
The Data Management Center provides data processing services for the town and schools. Housed in the junior high school, the center is administered by a Data Processing Director, an employee of the schools.
The Assistant Town Manager. See Administrative Organization, below.
The Human Resources Director has responsibility for personnel and works with the Personnel Board.
Town Clerk. State law assigns duties to the Town Clerk in three areas: the keeping of records and documents, the issuance of licenses, and the administration of elections. The clerk's office is also a source of information to candidates for political office-and the public at large.
- Records. As the official custodian of town records, the clerk records the proceedings of all town meetings and elections; is registrar of all vital statistics; and is filing officer for birth and death certificates, zoning decisions, and a variety of other documents. The office also keeps official listings of town boards and committees and posts notices of their meetings.
- Licenses. The clerk's office issues marriage licenses, fish and game licenses, dog licenses, and many others.
- Elections. The clerk acts as supervisor of all elections and serves as clerk of the Board of Registrars. The clerk's office also registers voters, maintains voter lists, and compiles the annual town census (street list). (See also ELECTIONS.)
The clerk is also usually appointed as director of the Federal census.
Town Counsel. Appointed by and serving at the discretion of the Town Manager, Town Counsel advises the manager and, with the manager's approval, other officials, boards, and committees. Town Counsel represents the town in most legal actions. The Manager also engages other attorneys to represent the town or to assist Town Counsel.
Administrative Organization. The organization of the town's general administration has varied with the town's needs. The Finance Director is currently the top-ranking generalist on the Town Manager's staff. The present Assistant Town Manager is a specialist in Public Works and will not be replaced when he retires. The position of Assistant Town Manager will remain unfilled because of fiscal restraints. Previous Assistant Managers have been generalists with specific responsibilities in human services and personnel.
BOARDS AND COMMITTEES
Like most New England towns, Amherst relies on citizen boards and committees for many functions of its government. All the appointed committees are advisory while some of the appointed committees also have specific responsibilities under state and local laws. Figures 2 and 3, list the major elected and appointed boards and committees of the town. Additional information will be found in later chapters, in the Town Manager's office, and in the Jones Library.
SPECIAL OFFICERS
The Elector for the Oliver Smith Will is elected annually to represent Amherst on the Board of Electors of Smith Charities. Smith Charities, established in 1848, annually provides gifts of $200 for widows with children under the age of eighteen, a one-time gift of $100 for brides, and $600 for tradespersons, nurses and licensed practical nurses. Additional monies may be disbursed to the trade and nurse categories as determined by the Trustees. Certain requirements such as residence and age apply. Further information is available at the Smith Charities office in Northampton.
Other special officers. Five offices of historical significance are still filled today, but most of their functions are performed by modern counterparts. Constables distribute town meeting warrants, and work at the polls and Town Meeting. Fence Viewers attempt to resolve disputes concerning boundary line fences. Field Drivers help remove stray farm animals from private property and public ways. Weighers weigh commercial loads, such as hay, coal, and grain. Measurers of Wood measure wood that is sold, especially if questions of full measure arise.
TABLE 3. APPOINTED STANDING COMMITTEES'
Key to Appointing Authorities: SB = Select Board TM = Town Manager M = Moderator 1Complete list of boards and committees in Town Manager's office. 2The Select Board must ratify the Manager's appointments.
5. THE TOWN AS EMPLOYER
In 1991-1992 there are about 277 full-time equivalent (FTE) employees in the elementary schools, 245 in the secondary schools, and 237 in all other departments. Figure 4, shows town employees by department. Personnel costs constitute approximately 80% of all town and school expenditures. The Town Manager hires all town employees except those selected by the library trustees and school committee. Procedures for recruiting, screening, and hiring are determined by the manager, trustees, and school committee and conform to affirmative action policies.
Personnel By-Law. All employees, except the Town Manager and school department personnel, are paid in accordance with the town's Personnel By-Law, which specifies job classifications, pay scales, and certain policies (sick leave, for example). The by-law was established by Town Meeting and can be amended only by that body. The manager is responsible for proposing changes in the bylaw to the Personnel Board and may, with the board's advice and approval, establish new positions and reclassify employees on an interim basis between town meetings.
The Personnel Board establishes personnel policies. By local custom, the board does not review collective bargaining agreements. The board:
- interprets the Personnel By-Law;
- advises the manager about policies and regulations;
- recommends to Town Meeting classifications of positions;
- recommends to Town Meeting changes in overall compensation levels and in policies covered by the by-law;
- acts as a board of appeals to hear grievances, except where collective bargaining agreements provide otherwise.
Collective bargaining. Several groups of town and school employees are organized for collective bargaining. The Town Manager is responsible for negotiating agreements with unions in departments under the manager's authority. At present, the police officers, fire fighters, and public works employees are unionized. The school committees are responsible for bargaining with school employees. Collective bargaining units now represent all school employees except cafeteria workers and the superintendent's administrative team. Both the town and the school systems hire professional consultants to assist in negotiation.
TABLE 4. TOWN EMPLOYEES BY DEPARTMENT, FY921
| Departments | FTE | |
|---|---|---|
| Select Board, Town Manager, and Human Resources | 5.03 | |
| Finance | 13.56 | |
| Clerk | 3.00 | |
| Custodial | 5.62 | |
| Planning, Zoning, Inspections, and Conservation | 13.33 | |
| Police | 39.45 | |
| Dispatch Center | 7.64 | |
| Fire, Emergency Medical Services | 32.00 | |
| Department of Public Works | ||
| Administration, Engineering | 4.48 | |
| Highway, Trees, Parks, | 24.00 | |
| Parking,and Equipment |
| Maintenance | ||
| Water | 9.50 | |
| Sewer | 16.76 | |
| Solid Waste, Recycling | 7.67 | |
| Health | 11.57 | |
| Senior Services | 4.30 | |
| LSSE, Pools, Golf Course | 8.60 | |
| Other2 (Veterans' Services, | 2.39 | |
| Children's Services, Housing | ||
| Review Board) | ||
| Libraries | 28.55 | |
| TOTAL TOWN EMPLOYEES | 237.45 |
1All counts are for full-time equivalent (FTE) employees. For current information, see the most recent town, school, and library budgets.
2Housing Authority is not included; these are not town employees.
TABLE 4A. TOWN AND SCHOOL EMPLOYEES (See Table 9 for school staffing)
| FTE | |
|---|---|
| Town, including libraries | 237.45 |
| Amherst (elementary) schools | 277.34 |
| Regional (secondary) schools (80.79% students from Amherst) | 244.92 |
| TOTAL TOWN AND SCHOOL EMPLOYEES | 759.71 |
6. AMHERST'S FINANCES
INCOME AND EXPENDITURES
The charts on figures 5 and 6 illustrate the relative importance of revenue sources and expenditure categories. Table 5A shows the recent fluctuations in revenues from major sources. The distribution of expenditures has been more stable. For current information, see the most recent Finance Committee Report.
WHERE THE MONEY COMES FROM
The town relies on three major sources of revenue: 1) the property tax; 2) state aid; and 3) receipts from fees, fines, licenses, and permits. The property tax is the largest source; it is estimated at over 40% of all revenues for FY92 (July 1, 1991-June 30, 1992). State aid is expected to account for about one-fifth and other receipts for almost one-third of revenues in FY92.
Most revenues (slightly over 50% in FY92) are not designated as to their specific use, allowing the town flexibility in deciding upon programs and budgets. Undesignated revenues include property taxes, excise taxes, and general state aid.
The major sources of designated revenue are: state aid for schools; other designated state and federal aid; fees for water, sewer, solid waste, and other services; and income on the endowment of the Jones Library.
WHERE THE MONEY GOES
The usual expenses of the town are:
- direct services (schools, police, fire, highways, libraries,...)
- regulatory activities (inspection services, environmental, health,...)
- general government and administration (elections, finance,...)
- payment of debts
- capital and special projects (land, buildings, studies,...)
- assessments for services provided through state and regional agencies, i.e., cherry sheet1 assessments.
Most expenditures require prior appropriation by Town Meeting. Exceptions include payments from revolving funds, and expenditures for legal judgments against the town, cherry sheet assessments, and some projects funded by grants.
Sources of funds for major programs. Most town services receive at least some support from local taxation. The principal exceptions are water, sewer, solid waste, and the golf course'. Services that are at least 50% self-supporting include the ambulance, most recreational activities, and some regulatory activities (building inspections, for example).
1The cherry sheet, formerly printed on cherry-colored paper, summarizes estimated receipts from the state and the town's share of expenses of certain state and regional programs.
2The golf course is self-supporting with the exception of the debt payment which is paid from taxation in FY92.
THE BUDGET
Amherst's budget is its financial plan for the provision of services. It includes estimated costs, anticipated revenues, and the expected tax levy. The budget reflects the priorities of the citizens of Amherst and the requirements of state law.
Preparation of the budget. It is the duty of the Town Manager to draw up a comprehensive budget each year. The manager is assisted in this task by the Finance Director and other staff members.
The budget process begins in July and August, when the Finance Director prepares projections on the basis of the experience of the previous year. In the early fall, the manager reviews projected revenues and needs with the Select Board, Finance Committee, School Committees, and Library Trustees. The manager then solicits budget requests and documentation from town departments and committees, reviews the proposals with department heads, draws up a budget, and submits it to the Select Board and the Finance Committee by midJanuary. The school systems and library department follow a similar procedure.
The Select Board undertakes a general review of the manager's budget with overall policy in mind, while the Finance Committee subjects it to detailed scrutiny. The Finance Committee also reviews the school and library budgets and all other warrant articles affecting finances.
The Finance Committee is the only standing committee of Town Meeting. In accordance with Massachusetts General Law (MGL) Chapter 39, Section 16, the Committee:
- presents its recommended operating budget to Town Meeting, and
- makes recommendations on all warrant articles that may affect the financial interests of the town.
The Finance Committee also controls the Reserve Fund, making transfers for unforeseen and extraordinary expenses during the year (MGL, Ch. 40, Sect. 6).
The Finance Committee's proposed operating budget includes appropriations for the town, libraries, schools, and the regional refuse district. The committee prepares a written report to Town Meeting.
The budget at town meeting. Budget requests are submitted to Annual Town Meeting each spring in the form of warrant articles calling for the expenditure of money. Most such articles, including the operating budget, are part of the proposed comprehensive budget. Ten or more voters may petition for a project not included in the proposed budget by filing a written request in the Select Board's office in time for its inclusion in the warrant.
Town Meeting votes on each requested appropriation, usually, but not always, accepting the recommendation of the Finance Committee. All appropriations include both the amount and source of money. Funds are appropriated through taxation, from available funds (for example, sewer receipts), or by borrowing.
FIGURES 5 and 6 HERE (to be added)
Tax limits and the budget process. Proposition 2 1/2, which was approved by the voters of the state in 1980 and has since been amended by the legislature, reduces the authority of Town Meeting over the amount appropriated from taxation each year. State law now limits the property tax rate to $25 per $1000 of assessed valuation and limits increases in the levy (the amount raised from property taxation) to 2 1/2% per year plus an allowance for new development. The increase in the levy limit is cumulative and does not necessarily depend on the actual levy of the previous year.
State law permits a town to override the limits-to some degree and under certain conditions-in a town-wide referendum called by the Select Board.
The state continues to consider changes in Proposition 21/2 that would give municipalities greater flexibility and decrease their dependency on state aid. Possible changes include the levy limit and requirements for referenda.
THE SCHOOL BUDGETS
Authority over the school budgets. The budgets for the elementary and secondary schools are developed by the school committees (see pages 37-38) and the Superintendent of Schools. The budgets are subject to scrutiny by the Finance Committee and Town Meeting, but Town Meeting determines only the total appropriation for each of the school districts. The school committees determine the funding for individual programs within the totals.
Requirements for passage of the school budgets. The Amherst (elementary) School Department is part of Amherst town government, and its budget is approved by vote of Town Meeting.1 The Amherst-Pelham Regional (secondary) School District, however, is an independent unit of government. Its budget requires approval of at least three of the four towns in the district. (State law specifies approval by two-thirds of the member towns.) A town is said to approve the budget if it appropriates funds to pay its assessment (that is, its share of estimated net costs after deductions for state aid and other revenues).
PUBLIC PARTICIPATION IN BUDGETING
Final decisions about budgets are, of course, made by Town Meeting and by voters in referenda on the tax levy. Equally important are the decisions affecting future budgets made throughout the year by the major town committees and boards. Citizens can influence such decisions by voting in town elections and by making their views known to town and school officials. (See "Citizen Participation, " pages 57-58.)
1A committee appointed by Town Meeting is considering formation of a two-town regional elementary district, consisting of Amherst and Pelham.
BORROWING
When a town or district authorizes any major capital item, such as a new building, the cost is usually financed by borrowing. This method spreads payment over several years, thus reducing the impact on the current tax rate and assigning some of the cost to later users.
Borrowing by the town. A town may borrow for purposes designated by state law. A two-thirds vote of Town Meeting is necessary for all appropriations involving long-term borrowing by the town-including borrowing for the elementary schools.
Borrowing by the regional schools. The Regional School Committee has the power to approve borrowing for specified types of capital projects, but the decision is subject to the veto of any member town. If the town meeting of any town in the district disapproves the proposal by majority vote within thirty days, the debt may not be incurred. The issue may be placed before Town Meeting by the Select Board or by petition (see page 57).
PROPERTY TAXES
THE BOARD OF ASSESSORS
While Town Meeting is the only body that can appropriate money, the Board of Assessors has responsibility for levying the property taxes necessary to meet appropriations and for allocating the taxes equitably on the basis of the property owned by each taxpayer. With the assistance of the full-time Principal Assessor and the part-time Appraiser, the assessors are required:
- to assess all real and taxable personal property within the town at fair cash value,
- to grant exemptions, abatements, and other special treatment to certain properties on the basis of use or ownership, and
- to compute the tax rate.
These activities are guided by state regulation and monitored closely by the Department of Revenue.
The Representative Town Meeting Act provides that the Board of Assessors and Select Board act jointly as redistricting board when the town changes its voting precincts.
The assessors are appointed by and serve at the discretion of the Town Manager. The Principal Assessor is a full-time town employee. Board members serve part-time and receive no compensation.
THE TAX RATE
The assessors compute the tax rate each year after the budget has been approved by Town Meeting, the cherry sheet (see page 20) has been received from the state, and the levy has been determined to be within the limits established by state law (see page 24). The rate depends on three factors: 1) the levy, or net amount to be raised from taxation, 2) the valuation of taxable property, and 3) property classification.
The levy. The assessors determine the levy by subtracting all other revenues (see page 20) from the total expenses of the town.
Valuation of taxable property. The board determines property values according to fair market value and the value of property qualifying for exemptions and other special treatment (see below).
Property classification. State laws (MGL, Ch. 59, Sect. 2A and Sect. 5C) permit towns, within certain limits, to shift the property tax burden from residential and open space property to commercial and industrial property and to shift the burden within the residential class. The Select Board is required to vote on both questions each year. Amherst has never made use of either option.
Definition of the tax rate . Assuming that the town sets a single tax rate for all classes of property, the tax rate is defined by the following formula:
| property tax rate per $1000 valuation | = | levy (i.e., net amount to be raised) | X | 1000 | ||
|---|---|---|---|---|---|---|
| total taxable valuation |
Stated differently, the tax rate is set so that, when multiplied by the total valuation of all taxable property, it produces the property tax revenue (i.e., levy) required to meet the town's needs:
| property tax rate per $1000 valuation | X | total taxable valuation levy | = | levy | ||
|---|---|---|---|---|---|---|
| 1000 |
Examples: tax rate and revenue. With a total property valuation of one billion dollars and a levy of $12,500,000, the tax rate would be $12.50/$1000 and the amount raised by $1 on the tax rate would be one million dollars.
tax rate = (levy x 1000)/total taxable valuation = ($12,500,000 x 1000)/$1,000,000,000 = $12.50/$1000
amount raised by $1 on the tax rate = total taxable valuation
= $1,000,000,000/1000 = $1,000,000
Individual tax bills are computed by multiplying the tax rate by the assessed property value. For example, with a hypothetical tax rate of $12.50 per $1000 and a property worth $200,000:
tax bill = tax rate x property valuation = ($12.50/$1000) x $200,000 = .01250 x $200,000 = $2,500
ABATEMENTS, EXEMPTIONS, AND OTHER PREFERENTIAL TREATMENT
Tax abatements. Taxpayers who believe that their property is incorrectly assessed may apply for reductions (abatements) to the Board of Assessors. If the assessors decide to grant only part or none of a requested abatement, the property owner may appeal the decision within 90 days to the Appellate Tax Board of the state but must pay the tax, pending appeal.
Individual tax exemptions. Persons over 65 years of age, veterans, and members of certain other groups may, in specified circumstances, qualify for real estate tax exemptions, which will reduce their property tax burden.
Tax-exempt property. State law provides for exemptions for property taxation for property owned by the state and municipalities, and for certain properties owned by nonprofit entities (e.g., colleges, churches, qualifying clubs and associations, non-profit medical groups).
Other preferential tax treatment. State laws (MGL, Chs. 61, 61A, and 61B) require towns to assess forest, agricultural, and recreation lands on the basis of use rather than cash value-if the owners apply and meet all conditions. Another state law (Ch. 121A) permits the town to grant favorable treatment for a limited time to encourage certain kinds of development, e.g., the construction of low-income housing and the redevelopment of blighted property.
Information on abatements, exemptions, and other special treatment is available at the assessors' office.
For conservation areas, see "A Guide to Amherst Conservation Areas," published by the Kestrel Trust.