I have heard people criticize the way the town is run.

If that’s true, why should I give the

town more of my hard-earned money?

What has the town done to try to eliminate waste and bring spending under control?

The town officials have found money in the past. They’ll find it again this time, won’t they?

Can’t we keep using money from the stabilization fund to get rid of our budget deficits?

I have heard some people suggest we should adopt a split tax rate that makes businesses in
Franklin pay more property taxes. Wouldn’t that solve the problem?

We wouldn’t be in a crisis if we hadn’t spent money on the senior center, fire station and
new ball fields.

Why do some citizens disagree with rating agencies about Franklin’s debt?

The wording of the override questions lists specific dollar amounts for different
departments. Can the town guarantee that the funds from the override will always be
spent exactly the same way?

What is Proposition 2½?

What is a Proposition 2½ override?

When would the impact of an override take effect in Franklin?

What is my tax rate now and how does it compare to surrounding communities?

What happens if we do not pass an override?

What would passage of a Proposition 2½ override mean to my tax bill?

Will the override solve all of our fiscal problems?

If Proposition 2½ says my property taxes can’t go up more than 2.5% per year, why have
they gone up so much in the last four years?

People tell me that our schools cost too much money, and that we have too many overpaid
administrators. Is that true?

Why should the community support the school budget?

Have you really laid off any teachers?

Why is the school district continually facing budget gaps?

What has the School Committee and administration done to budget in a fiscally
conservative manner?

What other federal and state funds support the school department’s operating budget?

What are some other sources of financial support for the Franklin Public Schools?

How does per pupil spending in Franklin compare with spending in other Massachusetts
communities?

Pension costs are killing us, so why don’t town employees fund their own pensions?

Why do parents pay fees for their children to ride the bus or participate in athletics?

I have heard people criticize the way the town is run. If that’s true, why should I give the
town more of my hard-earned money?

Not everyone agrees with every decision made by town and school officials. The facts show
Franklin is relatively well run. Our students have excellent test scores and graduation rates, yet
we spend below-average per pupil compared to similar-sized communities. Our crime rate and
rate of fires are among the lowest in the state. Our recreation programs are hugely popular.
Independent rating agencies give the town’s financial management high marks. Our tax rate is
the lowest in the area. Our median home price is among the highest. Thanks to great
representation on Beacon Hill, we receive well more than our share of state aid. Hundreds of
volunteer citizens help keep Franklin a great place to live.

Since 1989, more than 3,500 Proposition 2 1/2 override votes have occurred in communities
across Massachusetts. About 40 percent of the time citizens have agreed to raise their own
property taxes for the good of their community.

No one likes to pay more taxes, especially in tough economic times, and people can debate any
number of town and school decisions and policies. But the urgent issue Franklin faces is whether
its voters want to pay about $1 more a day to hire more police officers and firefighters, improve
staffing at its library, and to stabilize our educational programs.

What has the town done to try to eliminate waste and bring spending under control?

• Streamlined operations

o Centralized administrative functions (e.g., facilities, HR, IT, accounting)

o Automated processes using information technology (e.g., payroll system)

 • Reduced employee benefits

o Increased employee medical co-pays, saving $200K per year

• Increased volunteerism ( e.g., Senior Center reported 10,000 volunteer hours per
year)

• Enhanced revenue

o Residents passed a $2.7M override in 2007

o Leased space on water tanks for cell towers

o Increased fees for services (e.g., sports participation fees, bus service)

o Approved a 0.75% meals tax that will take effect in FY 2010

o Agreed to share recreation services and our library director with Medway

• Spent cash reserves (e.g., used $7.5M 2005 to 2008)

• Delayed repairs to the public way (e.g., roads and sidewalks)

• Town and school employees agreed to defer pay increases in FY 2010

• Reduced headcount

o –Loss of more than 100 teaching positions

o –Loss of 7 school administrative positions

o –Loss of 32 municipal positions

• Held the line on department recommendations to increase headcount. For

example, the number of police officers remains the same today as in 1999,
despite a 12% increase in town population and a two-fold increase in number of
police calls.

The fundamental financial problems the town faces have not been caused by waste, but by
Franklin’s rapid growth over the last two decades. That growth dramatically increased the need
for services like professional, well-staffed police and fire departments, updated streets and
sidewalks, sewers and water lines, additional recreational facilities, and better schools. But the
town’s ability to raise revenue through property taxes is restricted by the state law, and fixed
costs for things like contractual obligations, utilities and health insurance keep increasing.
The town officials have found money in the past. They’ll find it again this time, won’t they?

Town and school leaders have done what they could to protect services for the community. The
most critical issue facing Franklin is its dangerous reliance on state aid. We rank 1st out of 30
peer communities in the percent of town revenue that comes from state aid. But state aid is a
revenue source over which we have no control. In fact, our over-reliance on state aid was cited
by Moody’s Investors Service as a reason for downgrading Franklin’s bond rating in late 2009.
The state aid we have come to rely on is estimated to decrease in the years ahead.

In the past, Franklin was able to protect core services by annually tapping into additional sources
of revenue to avoid the need for property tax overrides. Those funding sources are no longer
available. Franklin also has used legal settlement proceeds (which have been spent), incremental
property tax revenue associated with rapid population growth (which has dried up almost
completely), one-time revenues such as federal stimulus funds (which are set to expire after this
year), and money from our emergency fund. We cannot continue to rely on one-time wind falls
or state aid. It’s time to decide the type of community we are willing to fund as citizens and
taxpayers.

Can’t we keep using money from the stabilization fund to get rid of our budget deficits?

No. Using one-time monies to pay for ongoing costs is what leads to deficits. The funds we have
set aside now are the minimum we need to have on hand in the event of a disaster or serious
emergency. If we use any more of this revenue to pay for annual costs, the money won’t exist to
help the town through a crisis. And once the money is spent, how would the town continue to
pay for important services year after year? If the town decided to use the entire $5 million rainy
day fund in the town’s fiscal 2011 budget, how would it find that same amount when it came
time to pay for the fiscal 2012 budget?

I have heard some people suggest we should adopt a split tax rate that makes businesses in
Franklin pay more property taxes. Wouldn’t that solve the problem?

A split tax rate will not generate any additional funding. Think of the amount of money a town
can raise from property taxes as a pizza. You can cut that pizza into four slices, eight slices or
even more, but it is still the same pizza.

Proposition 2½, by law, prevents the amount that a community can raise from property taxes
from increasing by more than 2.5% per year. A split tax rate would redistribute how much each
class of property will pay in taxes, but it wouldn’t change the total amount of money the town
could raise. If the town decided that commercial property owners should pay more, the tax rate
for residential property would decrease but the total amount of the tax levy would stay exactly
the same. Franklin would still have to pass a Prop 2 1/2 override for the town's total tax revenue
to increase. The Franklin Board of Assessors and Town Council have opposed a split tax rate,
arguing that a single rate creates an incentive for businesses to locate in Franklin.
We wouldn’t be in a crisis if we hadn’t spent money on the senior center, fire station and
new ball fields.

These projects are the most visible examples of the Town’s effort to maintain and improve its
buildings and facilities for the benefit of the general community. The vast majority of the
funding for these renovations comes from the town’s long-term capital improvements plan, also
known as the “20/20 Plan.” This is money the town borrows as part of its ongoing effort to
upgrade public facilities, streets, sidewalks and buildings. A small part of the town's annual
operating budget is used to pay off the debt that funds capital improvements, the same way a
homeowner would pay off a mortgage over time.

The last time the town built a new recreation facility was 1990. Since then, the population has
increased by about 10,000 people. We built three schools in that time period to house the surge
in students, but we did not build any recreational facilities for them. The Town made
improvements to existing fields, added new fields, and brought back into use the field and track
at the High School. The existing track had not been useable for many years.

The senior citizen population in Franklin continues to grow. It is currently projected that citizens
over 60 will increase from about 4,200 to over 7,500 in the next ten years. The old senior center
had just two rooms and minimal parking which was completely inadequate for our population
and programs. The new center has seen a three fold increase in participation. It has become a
focal point for older adults and their families with many varied programs, services and activities
to address the needs and interests of our senior and disabled residents.

Why do some citizens disagree with rating agencies about Franklin’s debt?

There are some assumptions about municipal borrowing that may seem contrary to the average
person. Think of it this way. Individuals need to borrow money and then pay it back in order to
establish their credit rating. Cities and towns do too. It is actually in the best interest of a city or
town to carry debt. Most folks that buy a house want to pay off the mortgage as fast as they can.
Eventually, they sell their home; hopefully make a profit; and, someone else takes on the
mortgage. In the case of Franklin, however, the Town and its taxpayers own public property
forever. We have hundreds of millions of dollars worth of infrastructure (buildings, parks, roads,
schools, utilities) that need to be maintained, replaced, repaired, expanded, etc., on an ongoing
basis to meet community needs.

Just as homeowners take out loans for additions, improvements or repairs to their property, the
Town borrows money for similar purposes. In the case of city or town, ongoing manageable debt
is one indicator of the fiscal strength because it demonstrates that the community is committed to
taking care of important community property.

If we do not re-invest in our infrastructure in a timely manner, the overall appearance and
operations of the Town suffers. The failure to invest would eventually hurt property values. Who
wants to live in a town with a crumbling infrastructure? Every homeowner knows that structural
problems don’t go away, they just get more expensive to fix.
Our goal as a Town is to maintain a debt level between 3.5% and 4% of our general fund
revenues. This is a standard range for many municipalities. Our estimated FY 10 general fund
revenue (excluding the debt exclusions) is $90,011,796 and our general fund debt is $3,283,433
or 3.6% of our general fund revenues. If we equate it to the average homeowner with a
household income of $60,000 per year, the mortgage payment would be $2,160 per year or $180
per month.

The wording of the override questions lists specific dollar amounts for different
departments. Can the town guarantee that the funds from the override will always be
spent exactly the same way?

Only for one year. There are some states where property taxes are divided into school taxes and
other taxes, but that is not the case in Massachusetts. All property tax revenues flow into the
town's general fund, and the Town Council can only allocate money from the general fund one
year at a time, based on the town's priorities and needs. This provides flexibility in case
circumstances change; one year the Police could need more money and the next, it could be the
Library.

The override will balance the budget and prevent a major deficit. It will increase the amount of
money in the general fund that Franklin will have available to meet our town's needs in future
years, providing better financial flexibility to help the schools, police, public safety and library,
as well as other important services. The percentage of Franklin's budget allocated to each town
department has been relatively stable from year to year, and it would take extreme financial
circumstances for the Town Council to attempt to dramatically change the budget. Although
they cannot legally make any guarantees, the Town Council and Town Administrator have
clearly stated their intention of adhering to the numbers given in the override question in future
years.

What is Proposition 2½?

Proposition 2½ was a Massachusetts ballot initiative that became state law when the voters
approved it in 1980. The law puts a 2.5-percent cap on the amount of money a community can
raise through property taxes from year to year, not counting revenue from the assessed value of
new construction and building improvements.

It is important to understand that Proposition 2½ does not say that your property taxes cannot
increase more than 2.5-percent a year. It simply says that the total amount of money raised
through property taxes, known as the “tax levy,” cannot increase more than 2.5-percent annually.
In addition, a community can increase its levy limit each year to reflect new growth in taxable
properties.
What is a Proposition 2½ override?

There are three different ways a community can increase its property taxes above the levy limit.
What the town of Franklin is considering putting before the voters is an override of its levy limit,
which would increase the limit by a specific amount.

The other ways for a community to change how Proposition 2½ would apply are through a debt
exclusion, which temporarily excludes from the levy limit an amount of money to pay for new
debt, and a capital outlay exclusion, which allows a community to raise its levy limit for one year
for the purpose of funding a specific capital project. In the past, Franklin voters have approved
debt exclusions to build new schools.

When would the impact of an override take effect in Franklin?

The June 2010 override ballot question would apply to the fiscal 2011 budget. That is, the
override would take effect on July 1, 2010. However, the increase in taxes would not show up
until the third quarter tax bill which is mailed at the end of December and due by February 1,
2011.
What is my tax rate now and how does it compare to surrounding communities?

Franklin employs a single tax rate for both commercial property tax payers and residential
property tax payers and that rate is currently 12.03 per thousand dollars of assessed property
value. Fourteen of our thirty peer towns employ split, or dual property tax rates, one for
residential payers and a higher rate for commercial payers. Set forth below is a chart in
descending order which shows how Franklin’s $12.03 single property tax rate compares to our
15 other peer towns that employ a single property tax rate. Franklin also happens to have a
lower property tax rate than most of our 14 peer towns that employ a split tax rate.

Town 2010Tax
Sharon 17.92
Westborough 16.98
Holliston 16.31
Medway 16.29
Hopkinton 15.76
Chelmsford 15.15
Northborough 14.38
Medfield 14.24
Southborough 14.06
Average 13.95
Reading 13.75
Millis 13.64
Franklin 12.03
Natick 11.67
Foxborough 10.91
North Attleborough 10.44
Shrewsbury 9.68
What happens if we do not pass an override? ’s in and what’s out?

Approximate Impact from

What would passage of a Proposition 2½ override mean to $3 million Override
my tax bill?
Assessed Value Impact
On average, taxpayers will pay an additional $0.69 per $1,000 in
assessed property value to support the $3 million override $ 200,000 $138
amount. The table to the right shows the impact for various $ 300,000 $207
assessed values. $ 400,000 $276
$ 500,000 $345
Will the override solve all of our fiscal problems?

Unfortunately, it will not. However, it will balance our budget this fiscal year. It is estimated that
next year’s budget may require as much as an additional $6 million in revenue for fiscal 2011 to
maintain level services. This is due largely to the anticipated decrease in state and federal aid
that have been received in each of the last two fiscal years.

Going forward, Franklin will need to confront the fact that basic municipal and school expenses
continue to outstrip its ability to raise new revenue from property taxes. There will be other
community needs, like the eventual renovation of Franklin High School, repairs to roads and
sidewalk, and the town’s unfunded retiree health care, as well as annual increases in fixed costs
for insurance, contractual obligations and utilities.

If Proposition 2½ says my property taxes can’t go up more than 2.5% per year, why have
they gone up so much in the last four years?

Proposition 2½ does not say that your taxes cannot go up more than 2.5% each year. It says that
the total amount of money the town raises from property taxes cannot increase by more than
2.5% a year plus new growth.

The reason some residential tax bills have increased significantly over the few years is because
the market value of some homes– probably your family’s most important investment – has
increased. This is due in part because Franklin is perceived to have good municipal services,
strong public safety, convenient businesses and top quality schools, and, hence, Franklin is
considered a great place to live. Our assessed and fair market property values reflect that market
perception.

Notwithstanding the appreciated values referenced above, some residential property owners
have, in fact, experienced a flattening or even a decrease in the assessed value of their homes in
recent years due to the macroeconomic environment. And, keep in mind that commercial and
industrial property is assessed based on income, so the value of those assessments has been
stagnant due to the economic downturn that affected the business community.

While the total amount of revenue the town can raise from property taxes can only increase by
law, by 2.5% each year, how much money each property in the town contributes to the total
amount can change based on changes in its respective assessed and/or fair market value.
People tell me that our schools cost too much money, and that we have too many overpaid
administrators. Is that true?

Based on statistics maintained by the Massachusetts Department of Elementary and Secondary

Education (DESE), Franklin pays less than half of the state average for administrative and labor
costs. The statistics for all 11 categories of education spending are included below:

According to Massachusetts Department of Education, more than 85 percent of the K-12 districts
in the state spend more per pupil than Franklin. Franklin’s per pupil spending is the third lowest
among its 30 peer communities. The per pupil expenditure for children in Franklin’s “regular
day” school programs (which excludes Special Education) has lagged well behind the state
average for the last 5 years, according to the Massachusetts Department of Elementary and
Secondary Education. In fiscal 2008, Franklin spent $9,751 per pupil in these programs -- $2,702
less per pupil than the statewide average of $12,453.

Why should the community support the school budget?

The commitment to educate our children is a commitment that the residents of Franklin have
long supported. Horace Mann, the father of public education and integral to Franklin’s historical
legacy stated, “Education then, beyond all devices of human origin, is the equalizer of conditions
of men, the great balance wheel of the social machinery”.

The School Committee, administration and staff developed a fiscally responsible budget that
promotes student achievement, protects core programs and is respectful of the current economic
climate. The FY 2011 proposed budget requests a 3.89% increase to maintain level services. We
have used grants, stimulus and revolving funds to reduce the budget gap and we are requesting
what we needed to maintain the program we currently have in place for our students.
Having strong and vital schools is important for every community. Those who advocate for
greater investment in education often make the economic argument: more education leads to
higher wages and is critical for financial stability and independence. They’re right. Robust
evidence supports the view that higher levels of educational attainment are linked to higher
incomes, less unemployment, less poverty, and less reliance on public assistance.

More education is also linked to better physical and mental health, longer lives, fewer crimes,
less incarceration, more voting, greater tolerance, and brighter prospects for the next generation.
More education is good for individuals who stay in school to earn their high school degree or
who enter and graduate college, but it is also good for all of us, paying big dividends in the form
of increased civic engagement, greater neighborhood safety, and a healthy, vibrant democracy.
Have you really laid off any teachers?

The tables below reflect, over a 10 year period, the increase in Franklin’s student population and
the associated decrease in its teaching population. At its peak in 2005, Franklin had 517
teachers. Since that time, Franklin has eliminated more than 100 teachers. These staffing cuts
have taken place at the same time Franklin has experienced increasing student enrollments,
resulting in larger class sizes. That is a worrisome trend and is not a good long term indicator for
positive educational results.
You can obtain additional historical teaching figures in Franklin at the following blog post:
http://franklinschoolcommittee.wordpress.com/2008/05/17/information-on-teachers-in-franklin/.

Why is the school district continually facing budget gaps?

Franklin, as with many Massachusetts municipalities, is faced with structural deficits as costs
and services rise faster than the available 2.5% increase of annual tax revenues. Health
insurance, retiree health insurance, contractual obligations, and unfunded federal and state
mandates result in cost increases that outpace the 2.5% annual increase limit. To become more
fiscally sound, Franklin needs to continue to operative efficiently and keeping cost relatively low
while and generating additional tax revenues in order to provide the high level of services that
citizens desire but at a reasonable financial cost to such citizens.

What has the School Committee and administration done to budget in a fiscally
conservative manner?

Over the last 10 years, Franklin has (i) significantly reduced and/or eliminated programs and
positions (over 100) while meeting higher educational standards/accountability requirements as
established by federal and state law, (ii) consolidated facilities and technology services, and (iii)
effectively sought and received grants to offset a variety of operational costs. Moreover, Franklin
has implemented a number of “Go Green” energy savings initiatives including (A) solar panels at
Parmenter Elementary School, and (B) water gardens at Franklin High School. Finally, Franklin
has implemented a variety of online services to reduce personnel costs and paper consumption.

What other federal and state funds support the school department’s operating budget?

Franklin regularly seeks federal and state grants to supplement the operational budget. During
FY 2010 Franklin received $2,784,792 in grants to provide additional staffing and supplemental
services to meet the needs of students.

What are some other sources of financial support for the Franklin Public Schools?

The district receives significant financial support from within the community to advance the
mission and vision of the school district; the loss of which would be detrimental. Annual gGrants
and support are received from the: (i) Franklin Education Foundation, (ii) Music Boosters, (iii)
Athletic Booster Clubs, (iv) Parent Communication Councils (PCC), etc.

How does per pupil spending in Franklin compare with spending in other Massachusetts
communities?

Based on data released by the Massachusetts Department of Elementary and Secondary

Education Office of Finance, as of FY 2009, Franklin's per pupil expenditures are $10,010 while
the state average is $13,060. Our spending per pupil is 23% less than the state average. Three
years ago, when speaking about the budget, we noted that Franklin was below the state average
in 9 of 11 categories of education spending. The only areas where we outspent other
Massachusetts communities were in classroom teachers and instructional materials. Two years
ago, Franklin slipped further. With the continued education cuts, Franklin fell below the state
average in 10 of 11 categories. Last year, we predicted that with the loss of more teachers,
Franklin was sure to dip below on all 11 categories next year. The latest data from DESE shows
that it has, indeed, happened.

By most objective measures Franklin’s School District outperforms its peer districts. Based on
these two facts, most observers believe that Franklin Public Education is a tremendous, cost-
effective value when weighing the achievement results against local taxpayer cost. To look for
yourself at all of the data comparisons, try the District Analysis and Review Tool (DART) at the
DESE website by linking to http://www.doe.mass.edu/sda/dart/. The DART offers a snapshot of
district and school performance, allowing users to easily track select data elements over time,
and make sound, meaningful comparisons to the state or to "comparable" organizations.
Pension costs are killing us, so why don’t town employees fund their own pensions?

Public employees are generally not covered by Social Security and DO self fund their retirement
through a municipal pension system. Teachers, for example, contribute as much as 11% of their
annual salary to this program and local property taxes do NOT fund the system. State tax
revenues fund a portion of current benefits but the majority of such revenues are allocated to the
unfunded municipal pension liability (i.e., in fiscal 2008, 77 percent of the Commonwealth’s
$1.3 billion contribution to State and Teachers’ Pensions covered the unfunded liability while 23
percent went to pay for current retiree benefits. Reference:
http://www.middlesexretirement.org/Special_Commission_Report_9.09.pdf

Why do parents pay fees for their children to ride the bus or participate in athletics?

Known as user fees, they were implemented to keep costs lower. Per state law, Franklin is only
obligated to bus K-6 students that live at least two miles from school. Similar to 200+
Massachusetts communities, Franklin (i) collects a student pay-to-ride fee of $325, which
represents two-thirds of the actual cost, and (ii) imposes athletic fees to help lower athletics’ cost
or prevent their elimination. Importantly, the override will not result in decreased user or athletic
fees but will only maintain current service levels and, if it fails, the School Committee will likely
increase user and athletic fees.