HomeMy WebLinkAbout2019 Voter Guide
Town of Nantucket
2019 Annual Town Meeting
The Voter’s Guide to
Warrant Articles
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INTRODUCTION
Greetings, Nantucket Voter!
And welcome to the 2019 Annual Town Meeting.
Warrant articles are written to conform to the language of various Laws and Codes and are
crafted to accomplish intended administrative and legal purposes. The language is necessarily
technical and does not always allow the articles to be easily understood. This Guide provides an
easy-to-understand overview of the warrant articles; it explains the objective(s) of an article and
how the article would realize those objectives.
The Guide takes no position on any article. It is meant for informational purposes only and is not
legally binding. There will likely be Technical Amendments to Motions that arise after the
warrant goes to print. Those amendments are not covered in this Guide. They will be addressed
as one of the first orders of business at the beginning of Town Meeting.
Also not covered are citizen-sponsored articles, except in unusual circumstances. For the 2019
Annual Town Meeting, three citizen articles are covered: Article 37 – because there is a
significant appropriation request which is also a ballot question and because the Finance
Committee Motion and Select Board Comment differ; Articles 68 and 69 – because there was
required Sewer Commissioner action; and, Article 72 – because the subject of the article is part
of a larger program that the Town is supporting. Otherwise, citizen sponsors are expected to
represent their own articles and sponsors often make informational handouts available at the
handout table in the lobby. The articles discussed in this guide have been written by Town
Boards, Committees, Town staff and Town Counsel.
Voters vote on the MOTION to an article. See the Town Moderator’s Traditions and Procedures
for Annual Town Meeting booklet (available at the handout table) for details on voting,
amendments and other procedures.
In case you wondered…How are motions and recommendations developed for Town Meeting
warrant articles?
-- In the fall, the warrant for the Annual Town Meeting “opens” to citizen petitions - usually
mid-October to mid-November. During this “open” period, citizens are encouraged to meet with
Town Counsel if they have ideas about a potential article. Multiple sessions are scheduled to help
citizens craft their language to accomplish their intended purpose. Nantucket is one of the
Commonwealth’s few towns to offer its citizens this service.
-- Several other groups expend considerable effort reviewing and preparing financial and
other articles for Town Meeting: the Planning Board, the Community Preservation Committee,
the Real Estate Advisory Committee, the Health and Human Services Contract Review
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Committee, the Finance Committee, Capital Program Committee, the Enterprise Funds: Airport
Commission, Nantucket and Sconset Water Commissions, Our Island Home, Sewer and Solid
Waste, and finally the Select Board.
-- In October, the Capital Program Committee (CapComm) begins its review of all
General Fund and Enterprise Fund capital project requests. (CapComm is a 7-member group
comprised of at-large citizens appointed by the Select Board, plus representatives from the
Finance Committee, Nantucket Planning and Economic Development Commission, and Select
Board.) CapComm typically meets once a week through December. Every department
submitting request(s) attends at least one meeting, and often several.
-- In December, the Finance Committee (a 9-member group appointed by the Select
Board) begins its comprehensive review of all warrant articles. From December through early-
March the Committee meets 1-2 times a week, generally at 4:00 PM. Department Heads,
Committee Chairs, and citizen sponsors all speak before the FinCom to represent their article.
All meetings are posted and open. Many are public hearings when citizens are encouraged to
attend and ask questions.
-- During January and February, the Planning Board holds public hearings on both citizen
and Board-sponsored Zoning Articles. All meetings are posted and open; many are public
hearings where citizens are encouraged to learn and ask questions.
-- Except for zoning articles, each article on the warrant has a Finance Committee Motion.
Zoning articles have Planning Board Motions. There also may be Comments to various articles
by the Planning Board, Finance Committee or Select Board. This Guide does not address their
Comments.
On to the Guide…
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Sense of the Meeting Request
Just prior to Article 1, you will see a “Sense of the Meeting Request Regarding Small
Mesh Fishing Gear Closure”. Occasionally, a “Sense of the Meeting Request” is sought
to gauge the reaction of Town Meeting to a particular issue, mostly in response to a
legislative initiative. In this case, a Sense of the Meeting is requested due to pending
legislation concerning changes to mobile-fishing-gear-equipment restrictions in
Massachusetts waters. The Sense of the Meeting request asks Town Meeting voters if
they would support a prohibition of this type of fishing gear entirely from Nantucket
waters. This vote is not binding but could be used at legislative hearings on the proposed
changes. An identical Sense of the Meeting Request was on the Warrant at the 2017
Annual Town Meeting. The proponents have asked for the request to be before the voters
again so that it may remain within the state’s legislative session.
Article 1 – Receipt of Reports
Article 1 follows the State law (Chapter 40, s. 49) that requires the Select Board to
provide an Annual Town Report. The Report contains the reports of specific (and other)
agencies and departments of the Town. The Annual Town Report is typically published
just before the Annual Town Meeting and covers the activities of the Town departments
for the prior Fiscal Year. A copy of the Fiscal Year 2018 Annual Town Report is on the
handout table. Fiscal Year 2018 is July 1, 2017 – June 30, 2018.
The Finance Committee’s Motion is positive.
Article 2 – Appropriation: Unpaid Bills
With few exceptions, Massachusetts municipalities are not legally allowed to pay bills
from prior fiscal years in the current fiscal year without the approval of Town Meeting.
“Unpaid bills” are generally bills which arrived after the close of a fiscal year, were
inadvertently not paid or received, or could not be paid for budgetary or other reasons in
the fiscal year within which they were incurred.
The Finance Committee’s Motion is positive. The funding source is Free Cash
(defined in the Glossary herein) for the General Fund bills, Retained Earnings (see
Glossary) for the Enterprise Fund bills.
Article 3 – Appropriation: Prior Year Articles
From time to time, previously approved capital projects are completed “under budget”. In
such cases, Town Meeting can re-appropriate the remaining funds to other eligible
projects. If the original funding was borrowed, leftover funds may only be re-
appropriated for projects that are similar to the type of project for which the original
borrowing was incurred. If the original funding was not borrowed, the funding may be re-
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appropriated to any other project or funding source (for example, Free Cash or
Stabilization Fund).
The Finance Committee’s Motion is to fund two approved Airport capital projects,
with funds left over from other projects which have been completed. The projects
are listed in the Motion. This article is not expected to have an impact on the tax
rate.
Article 4 – Revolving Accounts: Spending Limits for FY 2020 (July 1, 2019
– June 30, 2020)
A revolving account receives revenue generated by a particular activity which is used to
pay for items related to that activity. These accounts operate outside of the General Fund.
For example, the Town’s Beach Improvement Revolving Account receives revenue from
the sale of beach driving permits. Those proceeds are then used for expenses such as
printing and purchasing beach stickers and maps, beach signage and fencing, police
beach patrols, and ATV (All-Terrain Vehicle) expenses.
Town Meeting sets an annual Spending Limit on each revolving account; this limit is
based on a historical review of past years’ spending. Each revolving account is listed in
the Finance Committee’s Motion.
The Finance Committee’s Motion is positive and sets forth the Spending Limit for
each account for the coming Fiscal Year.
Article 5 – Appropriation: Reserve Fund
The Town, under Massachusetts General Law, can make appropriations by a vote of
Town Meeting to a Reserve Fund – available by law for “extraordinary or unforeseen
expenditures” that may arise during the year. Money available in the Reserve Fund may
be accessed only through a vote of the Finance Committee and any such appropriation
may not exceed 5 percent of the fiscal year tax levy (5% for FY 2020 is approximately
$4,000,000).
The Finance Committee’s Motion is to appropriate $500,000 for the FY 2020
Reserve Fund.
Article 6 – Fiscal Year 2019 (July 1, 2018 – June 30, 2019) General Fund
Budget Transfers
Transfers of funds between different departments and within a specific department’s
budget, including between the “salary” and “other expense” categories, requires a vote of
Town Meeting. Toward the end of a fiscal year, such transfers afford the Town flexibility
to adjust (or “true up”) the budget to fund remaining departmental needs as the Fiscal
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Year draws to a close. This Article will “true up” department budgets using already
appropriated funds. There is no impact on the taxpayer.
The Finance Committee’s Motion is positive and utilizes funding already
appropriated at the 2018 Annual Town Meeting.
Article 7 – Personnel Compensation Plans for Fiscal Year 2020 (July 1,
2019 – June 30, 2020)
This Article seeks approval of the compensation schedules for positions outside of
collective bargaining units, or without employment contracts, or otherwise not covered
by the Town’s personnel policies. The Article primarily lays out employee compensation
schedules for per diem (“by the day”), seasonal and temporary employees, as well as
elected officials. Funding for the positions listed is contained within various departmental
budgets.
The Finance Committee’s Motion is positive.
Article 8 – Appropriation: Fiscal Year 2020 (July 1, 2019 – June 30, 2020)
General Fund Operating Budget
Article 8 asks the Town Meeting to approve a General Fund operating budget for Town
departments and agencies. The proposed expenditures are detailed in the Finance
Committee’s Motion. The FY 2020 General Fund operating budget, which is balanced
and lives within the projected revenues of the Town, is proposed to increase by 8.6
percent over FY 2019. The tax rate is not expected to increase as a result of this budget.
The Finance Committee’s Motion is positive.
Article 9 – Appropriation: Health and Human Services
Each year, the Town of Nantucket executes grant agreements with non-profit agencies to
provide various health and human services to island residents. The Town has accorded
importance to this appropriation and provided it for over 20 years. This appropriation
provides needed services without expansion of Town departments and personnel in fields
that are not considered municipal services.
There is a specific process in place for agencies to seek an allocation of the available
funding. A rigorous review process, managed by the Town’s Human Services Contract
Review Committee, evaluates agencies’ goals and funding requests each year. The
Committee’s annual recommendations are reviewed and endorsed by the Select Board
before the Finance Committee’s consideration. Following Town Meeting approval, grant
agreements are executed with each agency. The agreements contain reporting and other
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oversight provisions meant to ensure proper use of the funds. The tax rate is not expected
to increase as a result of this article.
The Finance Committee’s Motion is positive.
Article 10 – Appropriation: General Fund Capital Expenditures
Capital expenditures are “big-ticket” items meant to last five years or longer. The Town
Code (Chapter 11, section 12.2 A and B) defines them as:
“A. A capital expenditure is a non-recurring expenditure for land, buildings and/or
building improvements having a useful life equaling or exceeding 10 years, or an
expenditure for municipal infrastructure and equipment having a useful life equaling or
exceeding five years.”
“B. Furthermore, capital expenditures must have aggregate direct and indirect costs,
even if expended in multiple fiscal years, equaling or exceeding a dollar amount to be
hereafter set forth by the Capital Program Committee. Any change in the dollar amount
must have a two-thirds majority vote by the Committee. Furthermore, $50,000 is to be
established as the initial amount until otherwise set forth in accordance with this article.”
The Town’s annual capital project review process begins in August. Proposed projects
are reviewed by: Town Administration, the Select Board, the Capital Program
Committee and the Finance Committee. Capital projects are generally funded by: 1) the
General Fund and/or other available funds, 2) the re-appropriation of funds, 3) Free Cash
or 4) Borrowing. Borrowing requires a two-thirds vote of Town Meeting (and subsequent
approval by the voters at an election, if it requires a debt or capital exclusion).
Several items this year totaling $1,282,534 are contingent upon a Capital Outlay
Exclusion to be put before the voters at the Annual Town Election on April 9, 2019.
The Finance Committee’s Motion is positive for the listed proposed projects and
funding sources. If the Capital Exclusion is approved by the voters at both the Town
Meeting and the Town Election, the tax rate will increase by approximately $73 for
a property with a residential exemption valued at $1,336,811 (average year-round
property value) for just one year. In summary, funding sources for the $13,367,521
worth of capital projects would be as follows:
$1,032,534 FY 20 Tax Levy and Other General Revenues
(Contingent upon Capital Outlay Exclusion)
$5,080,244 Free Cash
$974,256 FY 19 Tax Levy and Other General Revenues
$6,280,487 Borrowing
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$13,367,521
Article 11 – Appropriation: Old South Road/Fairgrounds Road Intersection
Area and Newtown Road Transportation Improvements
This is a request to appropriate $5,200,000 by borrowing, contingent upon a Debt
Exclusion at the April 9, 2019 Annual Election, for the costs associated with bicycle,
pedestrian, transit, and traffic calming improvements along a portion of Old South Road
(between Milestone Road and Amelia Drive), Fairgrounds Road (between Old South
Road and Newtown Road), and all of Newtown Road (between Fairgrounds Road and
Hooper Farm Road). These improvements include:
- design and construction of a roundabout at the Old South Road/Fairgrounds Road
intersection to reduce delays and greenhouse gas emissions;
- installation of bus pull-offs and a landscaped median to accommodate left turn
traffic movements, safer pedestrian crossings, and encourage slower speeds along
a portion of Old South Road;
- installation of an additional multi-use path on a portion of the south side of Old
South Road for better connectivity;
- and reconstruction of Newtown Road to include a multi-use path and traffic
calming elements, such as speed cushions (speed humps that accommodate
emergency vehicles).
The Finance Committee’s Motion is positive. The tax rate is expected to increase if
the project is approved. Assuming a conservative borrowing rate of 4 percent for 20
years, the annual tax bill for a property with a residential exemption valued at
$1,336,811 (average year-round property value) will increase by approximately
$21.60 for 20 years.
Borrowing funds requires a quantum vote of two-thirds.
Article 12 – Milestone Rotary and Milestone Road Improvements – Local
Support
This is a request to petition the Massachusetts Department of Transportation to
reconstruct the James Warren Coffin Memorial Rotary (also known as the Milestone
Rotary) and to widen Milestone Road between the Rotary and Bunker Road in a manner
that provides two 11-foot wide travel lanes and two one-foot wide roadside shoulders.
These improvements would reduce vehicle queuing, delays, and greenhouse gas
emissions at the Rotary. The improvements would also better accommodate freight
vehicles to and from the island’s industrial-zoned properties.
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The Finance Committee’s Motion is positive. There is no appropriation associated
with this Article.
Article 13 – Appropriation: Town Pier
This is a request to appropriate funds to replace the wooden floating dock and rehabilitate
the timber fixed Town Pier at 34 Washington Street. The Town Pier has been severely
damaged over the last several years by winter storms and the wooden floating dock has
suffered extensive damage that requires frequent repairs to stay in serviceable condition.
The damaged floating dock is being replaced with a concrete floating dock (same overall
size and location). The concrete floating dock, with an expected service life of 40-50
years, is designed for the weather and coastal conditions expected in the next 100 years.
The timber-fixed Town pier is being repaired to address the elements in poor condition
and to harden the structure to better withstand storm events. The Town has performed a
comprehensive analysis of storm conditions and sea-level rise, developed the
construction plans, and obtained permitting for the necessary work which includes
dredging for a portion of the site.
Last summer, the project was put out to bid, with bids coming in higher than available
funds, for a phased, multi-year project. Subsequently, following a detailed engineering
review, the design and construction specifications were modified to accommodate the
needs of both the fixed pier and floating dock. The project was advertised with the new
design and construction specifications in late February 2019, and bids were due March 20
and are undergoing evaluation before Town Meeting. The funds requested for
appropriation will be based on the bids received.
Because of this timing, the Finance Committee did not have a Motion for this Article
at the time the Warrant was sent to the printer; however, a Technical Amendment
will be put forward at the Town Meeting, with a Motion for appropriation.
Article 14 – Appropriation: Landfill Closure Costs
This is a request to appropriate $14,000,000 by borrowing, contingent upon a Debt
Exclusion at the April 9, 2019 Annual Election for capping and closure costs for both
lined and unlined landfill cells. Since 2009, under a permit from the Massachusetts
Department of Environmental Protection (MADEP), the Town of Nantucket has mined
some of its original unlined landfill as a means to reduce the size of its footprint before
required capping and closure. The Town’s mining permit expires on June 30, 2019.
Based on the Town’s current Administrative Consent Order from MADEP, the Town
shall, within 90 days of having terminated landfill mining operations submit a capping
plan for unlined cells 1A, 1B, 1C and lined landfill cells 2A and 2B as these cells are full.
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Capping of these spaces will ensure that the environment is protected from the stored
waste in the cells.
To be clear, our landfill operation is not closing. The $2,200,000 newly constructed lined
landfill cell 3A became operational in January 2019 and has a forecasted life expectancy
of approximately 10 years. DPW and our partners at Waste Options Nantucket (WON)
are working together to improve our Solid Waste and Recycling operations to divert non-
recyclable, non-compostable (NRNC) waste from our industrial composter. The NRNC
waste must be stored in Cell 3A. Any reduction of NRNC waste will extend the life of
our newest landfill cell beyond 10 years. Construction of new lined landfill space is
extremely expensive on Nantucket, making programs to reduce, reuse, recycle, and divert
non-compostable waste off-island is cost-effective.
The Finance Committee’s Motion is positive. The tax rate is expected to increase if
the project is approved. Assuming a conservative borrowing rate of 4 percent for 20
years, the annual tax bill for a property with a residential exemption valued at
$1,336,811 (average year-round property value) will increase by approximately
$57.88 for 20 years.
Borrowing funds requires a quantum vote of two-thirds.
Article 15 – Supplemental Appropriation: Public Safety Facility Auxiliary
Building
This is a request to appropriate $3,000,000 by borrowing, contingent upon a Debt
Exclusion at the April 9, 2019 Annual Election, for the costs associated with the
construction of an auxiliary building at 4 Fairgrounds Road. This building was originally
included in the design of the new Police and Fire Department buildings, but due to
increased project costs for those buildings, the funding for this building was not realized.
The auxiliary building will be a modular building and will be utilized by both the Police
and Fire Departments. The Police will utilize the space for the storage of found and
recovered property. Both the Police and Fire Department will utilize the building for the
storage of emergency equipment and to perform light vehicle and equipment
maintenance.
The Finance Committee’s Motion is positive. The tax rate is expected to increase if
the project is approved. Assuming a conservative borrowing rate of 4 percent for 20
years, the annual tax bill for a property with a residential exemption valued at
$1,336,811 (average year-round property value) will increase by approximately
$12.53 for 20 years.
Borrowing funds requires a quantum vote of two-thirds.
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Article 16 – Appropriation: In-Town (Orange Street) Bike Path
This is a request to appropriate $2,508,000 by borrowing, contingent upon a Debt
Exclusion at the April 9, 2019 Annual Election, for the costs associated with
reconstructing Orange Street between Spruce Street and the James Warren Coffin
Memorial Rotary (also known as the Milestone Rotary) to provide a bike lane on both
sides of the roadway. This improvement would provide a dedicated bicycle connection
between the Milestone Road and Old South Road multi-use paths and the Goose Pond
multi-use path at the end of Washington Street Extension.
The Finance Committee’s Motion is positive. The tax rate is expected to increase if
the project is approved. Assuming a conservative borrowing rate of 4 percent for 20
years, the annual tax bill for a property with a residential exemption valued at
$1,336,811 (average year-round property value) will increase by approximately
$10.50 for 20 years.
Borrowing funds requires a quantum vote of two-thirds.
Article 17 – Appropriation: Surfside Area Roads Reconstruction
This is a request to appropriate $6,294,022 by borrowing, contingent upon a Debt
Exclusion at the April 9, 2019 Annual Election, to reconstruct Lover’s Lane from Old
South Road to the Boulevarde, Okorwaw Avenue from Lover’s Lane to Monohansett
Avenue, and Monohansett Avenue from Okorwaw Avenue to the Nantucket Airport. The
project includes adding multi-use paths along each roadway that will provide two inter-
connected loops from Surfside to Old South Road. The project will improve traffic
circulation in the Surfside area by providing a 22-foot roadway and 10-foot multi-use
path separated by a grass strip, introducing safety improvements, and improving long-
standing drainage issues along the corridor.
The Finance Committee’s Motion is positive. The tax rate is expected to increase if
the project is approved. Assuming a conservative borrowing rate of 4 percent for 20
years, the annual tax bill for a property with a residential exemption valued at
$1,336,811 (average year-round property value) will increase by approximately
$26.11 for 20 years.
Borrowing funds requires a quantum vote of two-thirds.
Article 18 – Appropriation: Acquisition of Property at 1-3 Miller Lane
Just before the end of January, at the time the Select Board needed to adopt the 2019
Annual Town Meeting warrant, the Town was approached by a representative of the
Nantucket Inn ownership to explore whether the Town was interested in acquiring the
property at a stated cost. Because of the unique nature of the opportunity and its potential
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to accommodate several municipal and other needs, the Select Board voted to include this
warrant article and an associated ballot question on the April 9, 2019 Annual Election
warrant. They served as placeholders if agreements and due diligence could follow
expediently.
Naturally, such an opportunity requires proceeding in a prudent manner, with the
necessary and appropriate due diligence and third-party expertise so that the Town, the
community, and the voters can properly evaluate and discuss the proposal. The Town was
prepared at the time to undertake sufficient due diligence in advance of Town Meeting,
so voters could have an informed discussion regarding this opportunity. A grant was
secured from Massachusetts Housing Partnership to prepare a financial analysis of the
potential housing component for discussion with the Finance Committee. Regrettably, the
seller missed key deadlines for the Town to expend necessary funds and continue its
evaluation of the property in a timely manner (e.g., engineering and environmental
inspections, appraisal, architectural planning, risk assessment, etc.). Since the seller
missed these important deadlines, the Town could not complete the necessary review and
so the Finance Committee gave a Take No Action motion, with concurrence of the Select
Board.
Article 19 – Appropriation: Enterprise Funds Operations
Enterprise Funds under law are intended to fund their operations through user fees and
other self-generated revenue. Enterprise Funds are subsidized by the General Fund when
Enterprise Fund revenue does not cover the Enterprise operations. The Town of
Nantucket has six Enterprise Funds:
Nantucket Memorial Airport
Our Island Home*
Sewer
Solid Waste*
Water, Siasconset
Water, Wannacomet
* Has required a General Fund subsidy since inception
The Finance Committee’s Motion is positive and lists the proposed General Fund
subsidy(s) for each Fund where applicable.
Article 20 – Appropriation: Enterprise Funds Capital Expenditures
Proposed Enterprise Fund capital projects follow the same review process as General
Fund capital projects. Most Enterprise Fund capital projects are funded by that fund’s
Retained Earnings, or, more typically, through a borrowing (requiring a two-thirds vote
of Town Meeting). Any such debt is repaid over time from the Enterprise Fund’s
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operating budget. If the debt service for a particular project is beyond what the Enterprise
Fund can reasonably generate, the Town will seek approval of the voters for a debt
exclusion at an election. In certain circumstances, the Town may use Free Cash to fund
the capital expense. Neither a debt exclusion or a Free Cash disbursement is proposed.
The tax rate is not expected to increase as a result of these projects.
The Finance Committee’s Motion is positive and lists the proposed projects and
funding sources.
Article 21 – Enterprise Funds: Fiscal Year 2019 (July 1, 2018 – June 30,
2019) Budget Transfers
This article is similar to Article 6 (General Fund Budget Transfers). It authorizes transfers
of funds between salaries and expenses or additional funding from another source. It
requires a vote of Town Meeting.
The Finance Committee’s Motion is positive.
Article 22 – Appropriation: Waterways Improvement Fund
The Town of Nantucket is entitled to establish a Waterways Improvement Fund, into
which it may deposit income derived from mooring permit sales, rental of Town Pier
slips, and the Town’s share of boat excise taxes. Appropriations from the fund must be
for waterways-related purposes and require a vote of Town Meeting. Annually,
applicable projects and some personnel costs are budgeted from the Waterways Fund. For
FY 2020, Article 22 would authorize the Town to spend money on the regular annual
items.
The Finance Committee’s Motion is positive to appropriate $357,000 from the fund
for FY 2020.
Article 23 – Appropriation: Ambulance Reserve Fund
Receipts from the Town’s ambulance service are deposited into this fund, and
expenditures made from this fund support the ambulance service. That support includes
supplies, equipment and personnel costs for up to six full-time firefighter/EMT positions
and/or paramedic positions, and the periodic replacement of ambulances.
The Finance Committee’s Motion is positive to appropriate $719,630 from the Fund
for FY 2020.
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Article 24 – Appropriation: Ferry Embarkation Fee
The Town’s annual share of the 50-cent ferry ticket surcharge has been approximately
$200,000 annually. Since initiation of this fee, the Town has used the funds for seasonal
law enforcement through the Police Department budget. Each year Town Meeting must
appropriate the funds. The Fiscal Year 2020 appropriation will be used again for seasonal
law enforcement and is in-line with the projected receipts.
The Finance Committee’s Motion is positive to appropriate $225,000 for seasonal
law enforcement purposes for FY 2020.
Article 25 – Appropriation: County Assessment
The County Assessment is an amount that Nantucket County charges its one (and only)
Town for the County’s rather limited services to the Town. The assessment covers a
portion of expenses for the Registry of Deeds and for legal services, professional
services, and other expenses associated with County Administration items. This Article
will not increase the tax rate.
The Finance Committee’s Motion is positive to appropriate $170,201 for the FY
2020 County Assessment.
Article 26 – Appropriation: Finalizing Fiscal Year 2020 (July 1, 2019 –
June 30, 2020) County Budget
Article 26 is included in the warrant in the unlikely event that the Finance Committee,
acting as the County Review Committee, votes a denial of all or part of the proposed
County budget. (This has never happened since the enactment of the County Charter.)
With this article, the County Commissioners could seek such a denial to be overturned by
Town Meeting.
The Finance Committee’s Motion is to take no action, since the County budget of
$170,201 was approved by the County Review Committee as presented.
Article 27 – Appropriation: Other Post-Employment Benefits Trust Fund
The most common type of post-employment benefits is a pension. Other Post-
Employment Benefits (or OPEB) include health insurance and dental, vision, prescription
or other healthcare benefits provided to eligible retirees, and, possibly, their beneficiaries;
and certain types of life insurance. The Town currently funds the current costs for OPEB
as part of the operating budget, but actuarial studies suggest that these costs will rise
significantly in future years. The appropriation under Article 27 is intended to anticipate
these future costs by setting aside money in a trust fund for meeting future OPEB
obligations.
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Funding this trust fund annually is a prudent financial practice that improves the Town’s
credit rating. This will be the sixth year that the Town has opted to make this
appropriation. The tax rate is not expected to increase as a result of this Article.
The Finance Committee’s Motion is positive to appropriate $500,000 from the FY
2020 tax levy.
Article 28 – Appropriation: Affordable Housing Trust Fund
Article 28 provides funding for the Affordable Housing Trust Fund (AHTF) to further its
mission: creating year-round workforce/affordable housing. This year’s proposal for
$5,000,000 follows last year’s appropriation of $300,000. Concurrent with efforts for the
Housing Bank Home Rule Petition at the legislative level, continued funding is necessary
to further current and planned programs and address the year-round housing crisis on the
Island, which include: 1) closing cost assistance for low- and moderate-income
Nantucketers; 2) down payment assistance for low- and moderate-income Islanders; 3)
acquisition of land for low- and moderate-income ownership and rental opportunities; 4)
financial support for development of community-supported projects such as 6
Fairgrounds Road which materially address both need and our Subsidized Housing
Inventory requirement (the SHI list – 10% requirement imposed by the state); 5) funding
of appropriate house moves and renovations which count toward our SHI list; and 6)
rental buy-downs of proposed and existing units to affordable levels for the year-round
workforce. This appropriation allows the AHTF, with Select Board oversight, to take
advantage of opportunities when they arise. The funding is generated through bonding
done with Community Preservation Act dollars. The Community Preservation Committee
(CPC) voted to support this bonding and allow the community to have its CPC housing
dollars go much further. The recommended appropriation is a substantial increase over
prior years and the Select Board, the CPC, the Trust and the Finance Committee were all
in agreement that given housing is a priority issue for the Island, and that meaningful
resources should be dedicated to it. Given the CPC’s willingness to bond these funds, the
tax rate is not expected to increase as a result of this appropriation.
The Finance Committee’s Motion is to appropriate $5,000,000 for the Affordable
Housing Trust Fund, through borrowing, with repayment to come from the
Community Preservation Act revenue.
Borrowing funds requires a quantum vote of two-thirds.
Article 29 – Appropriation for Special Purpose Stabilization Fund for
Airport Employee Accrued Liabilities
This Stabilization Fund was authorized at the 2017 Annual Town Meeting, with an initial
appropriation of $200,000. It is intended to cover accrued liabilities for compensated
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absences (e.g., accrued unused vacation and sick days) owed to Airport employees upon
termination of Town employment. This year, the proposed appropriation is $100,000.
The tax rate is not expected to increase as a result of this Article.
The Finance Committee’s Motion is positive to appropriate $100,000 from the
Airport Fuel Revolving Fund for the Stabilization Fund.
Article 30 – Bylaw Amendment/Finances
This proposed Article would amend the Town’s Finances Bylaw to expand the authorized
use of Airport Aviation Fuel funds to include maintenance of the Fuel Farm.
The Finance Committee’s Motion is positive.
Article 31 – Fiscal Year 2020 Senior Work-Off Program
The senior work-off program allows eligible seniors to work in various Town
departments. The maximum each senior is allowed to work is 100 hours in a calendar
year. The money earned by the seniors is applied to their real estate tax bill. This program
has been valuable to both the Town and the seniors. The program has allowed eligible
seniors to gain credits toward their tax bills through work, while allowing the Town to
benefit from their experience and expertise.
The Finance Committee’s Motion is positive.
Articles 32-33 – Community Preservation Committee: FY 2020
Appropriations; Fiscal Year 2020 Budget Transfers
These two articles are citizen-sponsored on behalf of the Community Preservation
Committee (CPC). The CPC is a municipal group that recommends annual expenditures
for allowed purposes. Community Preservation funds are received through a 3-percent
surcharge on Nantucket property owners’ tax bills plus a state funded “match.” The funds
received may be spent only on projects in the statutory categories of: Open Space
Conservation/Recreation, Historic Preservation, and Community Housing. The
appropriation recommendations (Article 32) are for new and/or continuing projects for
FY 2020. The transfers (Article 33) return unspent fund balances from earlier projects.
The appropriation will have no impact on the tax rate.
The Finance Committee’s Motion is positive.
Articles 34 – 36
These are citizen’s articles and are not explained here, as noted in the Introduction to this
Guide. The Finance Committee has Comments to these Articles.
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Article 37 – Appropriation: Acquisition of Existing Properties for
Affordable Housing Purposes)
While Article 37 is a citizen-sponsored article, it is worth explaining in the Voter’s Guide
because there are unusual aspects to it. When the Select Board adopted the 2019 Annual
Town Meeting and Election Warrant on January 30, 2019, it voted to include a debt
exclusion for this appropriation at the April 9 Annual Election, which is unusual for a
citizen article. After many meetings and discussions about the Article, which the sponsors
had originally proposed at $30 million, the Finance Committee voted to adopt a Motion
to appropriate $10,000,000. The Select Board included a Comment that it supports an
appropriation of $20,000,000. The citizen article sponsor had indicated, prior to the
Finance Committee Motion and Select Board Comment finalization, that he would seek
and/or support an appropriation of $20,000,000. The article as stated by the proponent is
intended to create 24 or 25 units of year-round housing, scattered around the Island,
through a combination of acquisition and building – all of which would count on our
Subsidized Housing Inventory (SHI) list – the state-mandated 10% requirement. The
article contemplates that if both the article and ballot question received favorable votes,
the funds would be administered by the Affordable Housing Trust Fund with oversight
from the Select Board.
The tax rate is expected to increase if the project is approved. Assuming a
conservative borrowing rate of 4 percent for 20 years, the annual tax bill for a
property with a residential exemption valued at $1,336,811 (average year-round
property value) will increase by approximately:
- $41.39 for 20 years – appropriation of $10,000,000
- $82.62 for 20 years – appropriation of $20,000,000
Borrowing funds requires a quantum vote of two-thirds.
Articles 38 – 63 – Zoning Articles
These are a combination of Planning Board and citizen-sponsored zoning articles. All
have Planning Board Motions and Finance Committee Comments. Article 53 also has a
Select Board Comment.
The Planning Board Report (at the end of the Warrant) provides an overall
explanation of these articles along with a Glossary of Terms related to zoning
articles. In addition, a zoning district comparison between years 2005 and 2019
indicates how the percentage of the land area of the island within each district has
changed over time. The Land Use Implementation Schedule contained within the
Master Plan provides clear direction to the Board, and the voters at Town Meeting
have consistently supported map change articles that further implementation. In
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2005, when the Board first began the research necessary to draft the Master Plan,
8.65% of the island was in a high density (minimum lots size of 5,000 square feet or
less) zoning district and 81.75% was in a low density (minimum lot sizes of 40,000
square feet or more) zoning district. Today, 3.65% of the island is in a high-density
zoning district and 86.92% is in a low-density zoning district. Progress has been
achieved, but more work needs to be done. The articles presented to you by the
Planning Board in the 2019 Annual Town Meeting Warrant continue the work
necessary to accomplish the land-use related goals of the Master Plan that were
previously approved by Town Meeting.
Article 64 – Bylaw Amendment: Committees
The Advisory Committee of Nonvoting Taxpayers requested this bylaw amendment to
change the quorum requirement of the committee, due to difficulty in achieving a quorum
on a regular basis.
The Finance Committee’s Motion is positive.
Article 65 – Bylaw Amendment: Council for Human Services
The Council for Human Services requested this bylaw amendment to reduce the size of
the Council due to difficulty in achieving a quorum on a regular basis.
The Finance Committee’s Motion is positive.
Article 66 – Bylaw Amendment: Noise
This amendment to the Noise Bylaw modifies the definition of certain types of noise and
when it is allowed. Specifically, it:
- adds to the list of prohibited noise, the noise of vehicle or motorboat repairs and
testing, if plainly audible at a distance of 50 feet;
- adds to the list of prohibited noise, domestic power tools between 10:00 pm and
7:00 am (7:30 am June 15th to September 15th);
- redefines construction noise for specificity
The Finance Committee’s Motion is positive.
Article 67 – Bylaw Amendment: Underground Fuel Storage Tanks
In the past two years, Nantucket has had two separate oil spills from private home heating
oil tanks. One resulted in oil entering the harbor through the storm water system and the
other endangered wetlands. There have been numerous such incidents through the years
both small and large from home heating oil tanks. The typical residential oil tank holds
almost 300 gallons and by law the clean-up responsibility belongs to the property owner.
The proposed bylaw amendment will help prevent costly, harmful spills and is modeled
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after successful bylaws on the Cape. The bylaw requires that, over time older single-wall
oil tanks will be replaced with double-wall tanks with 110% containment capacity. Oil
tanks in place now would not need to be replaced until the property is transferred or (as is
currently the case) when the tank becomes unsafe due to corrosion or damage. The Fire
Department would inspect for compliance upon a real estate transfer at the same time as
it inspects for smoke detector compliance.
The Finance Committee’s Motion is positive.
Article 68 – Sewer District Map Changes
Nantucket has two sewer districts: the Town Sewer District and the Siasconset Sewer
District. Proposals to add (or remove) parcels to a Sewer District undergo internal
administrative review by the Health Director, Sewer Director, and Director of Planning.
The review scores each parcel using specific criteria for determining if a property
qualifies for inclusion, and makes a recommendation to the Select Board, acting as the
Board of Sewer Commissioners. Pursuant to the Nantucket Sewer Act, if the Board votes
affirmatively to add the parcels, a majority vote of Town Meeting is necessary for final
approval. If the Board votes not to add the parcels, a two-thirds vote of Town Meeting is
required to add the parcels.
Article 68 is a Town sponsored article. Even though Articles 69 and 70 are citizen
sponsored, they went through the same review. The Select Board acting as Sewer
Commissioners voted as follows:
Article 68 – endorsed (parcels met the required criteria)
Article 69 – endorsed (parcels met the required criteria)
Article 70 – endorsed (parcels met the required criteria)
The Finance Committee Motions support the votes taken by the Select Board.
Article 71
This is a citizen-sponsored article and not explained here, as noted in the Introduction to
this Guide.
Article 72 – Bylaw Amendment: Stretch Energy Code
This citizen-sponsored article merits comment because its adoption has an impact on a
particular designation for the Town. Town Meeting adoption of the so-called “Stretch
Code” is one of the criteria a municipality needs to become designated as a “Green
Community” in Massachusetts. This is a state program that allows the Town to be
eligible for certain types of grant opportunities for energy-related projects that would not
be available otherwise. At its March 6, 2019 meeting, the Select Board agreed to pursue
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this designation once all of the criteria are in place. Over 200 towns in Massachusetts
have been designated Green Communities.
The Finance Committee’s Motion is positive.
Articles 73 – 76
These are citizen-sponsored articles and not explained here, as noted in the Introduction
to this Guide.
Articles 77 – 80 – Home Rule Petitions
So…what’s a Home Rule Petition?
Massachusetts cities and towns are subject to the General Laws of the Commonwealth.
Sometimes though, a city or town requires special legislation (via a “Home Rule
Petition”) to address a unique need or issue – perhaps an exemption (or an addition) to
the law. Any such request for special legislation must first be approved by Town Meeting
and then enacted by the State legislature. Thousands of Home Rule Petitions are
submitted annually by Massachusetts cities and towns and years may pass before they
are enacted. Some of the Home Rule Petitions below have been approved repeatedly by
Town Meeting, seeking the Legislature’s eventual enactment. Articles 77 - 80 are this
necessary act of renewal, to keep our hopes alive.
Article 77 – Home Rule Petition: Town Charter – Select Board Amendment
This home rule petition to change the name of the Board of Selectmen to “Select Board”
in all official town documents, including the Charter and the Town Code, was initially
approved at the 2018 Annual Town Meeting. It appears again in the warrant, in the event
that the Legislature does not act on it before the end of 2019.
The Finance Committee’s Motion is positive.
Article 78 – Home Rule Petition: Merger of Nantucket Water Commission
and Siasconset Water Commission
The passage of Article 78 will create a single water enterprise fund on Nantucket by
merging the Siasconset Water Commission into the Nantucket Water Commission and
expanding the membership of the Nantucket Water Commission from three to five
elected members. The Siasconset Water Department will be dissolved and the
Wannacomet Water Company will remain as the operating enterprise fund. This article
was jointly proposed and supported by both the Siasconset and Nantucket Water
Commissions. The Commissions’ joint support acknowledges the two Commissions’ de
facto unification during the past 10 years. The Siasconset Water Commission contracts
with the Wannacomet Water Company, through the Nantucket Water Commission, to
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provide the administrative and operational support. This article neither increases nor
decreases the authority of the expanded Nantucket Water Commission.
This home rule petition was approved by the 2016, 2017 and 2018 Annual Town
Meetings and is in the warrant again, in the event that the Legislature does not act on it
before the end of 2019.
The Finance Committee’s Motion is positive.
Article 79 – Home Rule Petition: Community Housing Bank Real Estate
Transfer Fee
Article 79 reaffirms support for a Home Rule Petition to establish a real-estate transfer
fee to support the creation of workforce/affordable housing for Islanders. This home rule
petition was approved at the 2016, 2017 and 2018 Annual Town Meetings and is
currently pending at the State House. The Housing Bank would establish a transfer fee
equal to ½ percent (0.5 percent) on amounts above $2 million to be paid by the seller.
(Example: were a property sold for $2.5 million, the seller would pay: $500,000 x 0.5
percent = $2,500) The Housing Bank bill shares many of the same exemptions the
existing Land Bank Act provides. This novel approach for funding workforce/affordable
housing utilizes existing agencies and the Affordable Housing Trust Fund (AHTF) to
administer the funds and the Land Bank to collect the fee, as now done, from buyers. All
expenditures over $100,000 by the AHTF require approval by the Select Board – for
check and balance purposes. The measure also includes an automatic “sunset” provision,
so the fee terminates if and when the Island reaches its community housing goals,
including the statutory requirement that 10 percent of year-round residences be affordable
and, on the state’s Subsidized Housing Inventory (SHI) listing. Presently, Nantucket is at
just 2½ percent of this requirement.
The Finance Committee’s Motion is positive.
Article 80 – Home Rule Petition: Amending Special Act Authorizing
Affordable Housing Covenants
This article would enable island families to assist the next generation of Islanders seeking
to remain on Nantucket as homeowners. This same Home Rule Petition (approved at the
2017 and 2018 Annual Town Meetings) authorizes a modification to the Housing
Covenant program offered by the Nantucket Housing Authority (and administered by
Housing Nantucket). It would allow a Covenant lot/home to be transferred to a qualified
family member who may not meet the usual income / asset limitations. Were the
Covenant property instead transferred outside the family, the property would be subject
to the usual income and asset limitations of the Covenant program.
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The Finance Committee’s Motion is positive.
Upcoming Real Estate Articles
A few words about real estate articles:
These are permissive articles. That means the Select Board is authorized (but not
required) to take action on each of them. Approval of any articles (including citizen
articles) does not ensure action. Approval means only that the Board may take action.
Article 81 – Conveyance of Easement on Waitt Drive
In order to install and connect electrical distribution utilities to a property, the electric
utility requires that an easement be granted to it. The Town Charter requires that certain
real estate transactions, including the grant of easements over Town property, requires the
approval of Town Meeting. In order to provide the necessary electrical connections for
future housing planned for the Waitt Drive area, this approval is needed.
The Finance Committee’s Motion is positive.
Article 82 – Real Estate Acquisition and Conveyance: Naushop Sewer Lines
and Easements
Pursuant to an engineering analysis performed by the Town’s engineers in response to the
need for the Richmond housing development off Old South Road to connect to the
Town’s sewer system, a question arose as to whether or not the Naushop sewer lines had
ever been transferred to the Town. Research results were somewhat unclear and while
Town Meeting approval is not necessary for the Town to acquire private sewer lines,
there was an issue as to the crossing of private property for the purposes of sewering the
Richmond and other area housing units. Town Counsel advised that a Town Meeting vote
authorizing the Select Board to acquire any necessary real estate or other interests in
order to clearly allow for necessary sewer connections, would be appropriate.
The Finance Committee’s Motion is positive.
Articles 83 – 85
Articles 83 - 85 are citizen articles and are not explained here, as noted in the
Introduction to this Guide.
Article 86 – Appropriation: Stabilization Fund
The Stabilization Fund (aka the “Rainy Day Fund”) is what municipalities typically rely
on to fund extraordinary items (e.g., large legal settlements). The Stabilization Fund is
intended to “stabilize” the budget when emergencies arise, or to fund unanticipated
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significant future capital projects that should not be postponed. Currently, Town policy
requires that the balance in the Stabilization Fund equal at least 5 percent of revenue
(which the Town now achieves). The Town is not seeking an appropriation into or from
the Fund for FY 2020. This article recurs annually whether or not an appropriation will
be sought.
The Finance Committee’s Motion is to take no action.
Article 87 – Appropriation: Free Cash
The Town’s certified Free Cash for use in FY 2019 and FY 2020 is $9,595,671. The
Town proposes to use approximately $6,075,244 (see Articles 8, 10, 35) to fund items in
both fiscal years. Because the earlier articles if passed authorize the use of free cash, no
additional appropriation of free cash should be needed.
The Finance Committee’s Motion is to take no action.
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Glossary of Terms
Appropriation: Approval by Town Meeting to spend money for specific purposes
defined by a warrant article.
Betterment: A betterment or special assessment “is a special property tax that is
permitted where real property within a limited and determinable area receives a special
benefit or advantage, other than the general advantage to the community, from the
construction of a public improvement.” Definition from: “Massachusetts Department
of Revenue Division of Local Services, Betterments and Special Assessments”.
Budget: The Town’s annual plan of financial operations that includes an estimate of
proposed revenues and budgeted expenditures in the current fiscal year. Budget expenses
for operations include payroll, utility costs, supplies, annual maintenance and repairs, etc.
The annual capital budget is for big ticket items expected to last for more than five years.
Capital Outlay Exclusion: A Capital Outlay Exclusion allows the Town to increase its
total property tax levy above the limit set by Proposition 2½. The amount of the
exclusion is added to the levy limit for one year only. A Capital Outlay Exclusion
requires both a two-thirds quantum at a Town Meeting and a simple majority at a Town
Election.
Community Preservation Act: A State law that provides for a 3 percent surcharge
(which is partially matched by the Commonwealth) on property tax bills to fund local
projects in the categories of affordable housing, open space and recreation, and historic
preservation.
Debt Exclusion: A Debt Exclusion allows the Town to increase its total property tax
levy above the limit set by Proposition 2½. The amount of the annual debt service
payment is added to the levy limit for the life of the debt. A Debt Exclusion requires both
a two-thirds quantum at a Town Meeting and a simple majority at a Town Election.
NOTE: Surprisingly, Debt Exclusion Ballot questions do not contain amounts. The
wording of these Questions is strictly regulated by the state and towns are not allowed to
include the amounts. Nor are Towns allowed to have any explanatory information at the
Election as it could be construed as influencing the voters. If a voter wants to know the
amount of the debt exclusion, he/she may ask the Town Clerk for additional information.
The Town Clerk is permitted to provide the minutes or final vote of Town Meeting on the
article on which the Debt Exclusion was contingent, which would contain the amount.
Debt Service: Payment of interest and principal to those who loan the Town money
(technically, the holders of the Town’s bonds and notes).
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Enterprise Funds: An organizational structure that helps a community to direct the
costs for certain services to those who use those services – in other words, the user pays.
Sometimes, a particular service cannot support itself and requires a subsidy from the
General Fund. Nantucket has six enterprise funds (Airport, Our Island Home, Solid
Waste, Sewer, Wannacomet Water, Siasconset Water), two of which require a General
Fund subsidy (Our Island Home, Solid Waste).
Fiscal Year: A 12-month period running from July 1 – June 30, commonly used in
municipal government as the time period within which budget funds will be spent. Most
of the monies appropriated at the 2019 Annual Town Meeting are for the Fiscal Year
2020, which starts on July 1, 2019, and ends June 30, 2020.
Free Cash: A dollar value, which must be certified by the State, and represents revenues
that exceeded expectations and expenses that were below projections. Town Meeting
approval is required to spend Free Cash. In Nantucket, Free Cash is generally used for
one-time items such as capital projects, but not to balance the budget.
General Fund: The major Town fund created with Town receipts and tax revenues from
which most Town expenses are spent. The General Fund contains several categories
defined in the budget, such as personnel costs.
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.
Override: A majority vote by Town Meeting and an election to permanently increase
the levy limit.
Proposition 2½: A law approved by Massachusetts voters in 1980. It sets a limit of 2½
percent on the year-to-year increase of real and personal property taxes that a community
may levy on its taxpayers.
Retained Earnings: The Free Cash for an Enterprise Fund.
Stabilization Fund: A “rainy day” fund that is a special reserve account created
primarily to provide for capital improvements and unforeseen circumstances. It requires a
two-thirds vote of Town Meeting to disburse money from this fund and appropriate it for
expenditure. Appropriation into the Fund may not exceed 10 percent of the prior year’s
tax levy. The current balance in Nantucket’s Stabilization Fund exceeds the threshold
recommended by the state.
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Warrant: A list of the articles to be acted upon by Town Meeting. The language of an
article frequently conforms to the style of the code into which it will be placed if passed,
such as zoning.
Prepared by Town Administration, March 2019