GLOSSARY

Available Funds - See Free Cash.

Cherry Sheet - Cherry-colored form showing state and county charges and reimbursement to the Town as certified by the State Director of Accounts

Enterprise Funds - Funds that account for all revenues and expenditures for services and allow surpluses to be used to reduce fees for the services or to pay for capital improvements. Each fund has an independent budget. Losses are made up from the Town's general fund. Presently Arlington has five enterprise funds: Council on Aging Transportation, Recreation, Veterans' Memorial Rink, Water and Sewer, and Youth Services.

Fiscal Year - July 1 through June 30.

Free Cash - The amount of surplus revenue, minus uncollected taxes of prior years. Free cash must be certified by the State Bureau of Accounts before they can be used. Also known as Available Funds or Unencumbered Funds.

Overlay - Funds set aside to cover abatements and exemptions. The amount is determined by the Board of Assessors.

Overlay Reserve - Unused accumulated amount of Overlay from previous years that is not required to be held in a specific Overlay account for a given year. Once released by the Board of Assessors, the funds may be used for any municipal purpose.

Reserve Fund - A fund established by the Annual Town Meeting. It is under the control of the Finance Committee, which may authorize transfers for extraordinary or unforeseen expenditures. The fund may be composed of not more than 5% of the tax levy for the preceding year.

Stabilization Fund - A special account created to provide a reserve for municipal purposes.

Surplus Revenue - The total amount of cash, accounts receivable, and other current assets that exceed liabilities and reserves.

Unencumbered Funds - see Free Cash