Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Notwithstanding the provisions of any general or special law to the contrary, the city of Chelsea is hereby authorized to borrow at one time or from time to time, a sum in the aggregate not exceeding five million dollars from the commonwealth for the purpose of maintaining and operating the city of Chelsea in fiscal years nineteen hundred and eighty-six, eighty-seven and eighty-eight. No interest shall be payable by the city on account of such loan.
Such loan or loans shall be payable not more than ten years from their dates. For each loan the amounts payable annually shall be as nearly equal from year to year as practicable in the opinion of the chief financial officer of the city of Chelsea or shall be arranged by said chief financial officer in accordance with a schedule providing for a more rapid amortization of the loan balance.
The state treasurer shall deduct and withhold the amount of principal due the commonwealth in any year on account of such loan from the distribution of aid payable to the city of Chelsea pursuant to chapter fifty-eight and chapter seventy of the General Laws.
Debt incurred under authority of this act shall not be included in determining the limit of indebtedness of the city as established by law.
SECTION 2. All proceeds of any loan authorized by section one of this act shall be deposited in a separate fund which shall be set up on the books of the city and maintained separate and apart from all other funds and accounts of the city. Such fund shall be called the City of Chelsea Finance Control Fund of 1986, hereinafter referred to as the fund. Amounts deposited in such fund shall, upon the written direction of the mayor and with the approval of the board of aldermen and of the city of Chelsea finance control board as established in section three of this act, be expended without further appropriation for the purpose of maintenance and operation of the city in fiscal years nineteen hundred and eighty-six, eighty-seven and eighty-eight.
If on June thirtieth, nineteen hundred and eighty-eight any amount borrowed under authority of section one of this act remains undisbursed for the purposes provided herein, such undisbursed amount shall be returned to the commonwealth and the amount due the commonwealth by the city of Chelsea on account of borrowing pursuant to section one shall be diminished by the amount of such reversion.
SECTION 3. Prior to the issuance of any loan from the commonwealth to the city of Chelsea under authority of section one of this act, there shall be established in the executive office for administration and finance, a city of Chelsea finance control board consisting of the secretary of administration and finance, or his designee; the commissioner of education or his designee; the commissioner of revenue, or his designee; the director of accounts, or his designee; the mayor of the city of Chelsea; president of the board of aldermen, or his designee; chairman of Chelsea school committee, or his designee; and a representative of the Chelsea business community, to be selected by the governor.
Said board is constituted to initiate and assure the implementation of appropriate initiatives to secure the financial stability of the city of Chelsea. The board is further empowered to approve disbursements from the fund established by section two of this act solely for the purposes provided in that section. Until such time as the finance control board shall cease to exist, no appropriation by the board of aldermen whether from the fund or otherwise, shall take effect until approved by the finance control board. The finance control board shall prepare and report its findings and reviews to appropriate departments and agencies of the commonwealth and to the mayor and board of aldermen of the city of Chelsea. In addition, the board shall recommend to such departments and agencies such further action as the board determines necessary. The members shall serve without compensation.
The city of Chelsea finance control board shall continue in existence until June thirtieth, nineteen hundred and eighty-eight unless the members by majority vote shall annually vote to continue the operation of the board from year to year during the term of the loan as provided in section one.
SECTION 4. Prior to approval by the said finance control board of the disbursement of funds from the fund, that board shall require the filing of a detailed work plan by each municipal department which shall be approved by the mayor, setting forth certain actions which will be implemented by every such department through its department head to ensure greater efficiency in the delivery of services to the citizens of Chelsea.
Each workplan shall include but not be limited to the following: (1) a plan for improved financial and spending controls; (2) budget guidelines and objectives for the fiscal years nineteen hundred and eighty-seven and nineteen hundred and eighty-eight, and for such other fiscal years for which the board may remain in existence; (3) professional and non-professional staffing plan; (4) other proposed savings to be implemented in fiscal years nineteen hundred and eighty-seven, nineteen hundred and eighty-eight, and for such other fiscal years for which the board may remain in existence provided however that the plan submitted by the school department shall be approved by the school committee. In addition to the foregoing requirements the said school department workplan shall include the following: (1) a plan for curriculum review with the goal of upgrading student test scores on scholastic aptitude tests and state basic skills tests; (2) a review of school facilities and school organizations; (3) a plan for conducting a comprehensive review of vocational and occupational programs and services; (4) review of school transportation and school lunch programs; and (5) a review of special education programs. Every workplan submitted hereunder shall set forth a detailed implementation schedule. A status report shall be filed by each department head with the board on a quarterly basis.
Every request for authorization to disburse funds from the fund into the General Fund shall be submitted in writing to the finance control board by the mayor with the approval of the board of aldermen. Within twenty-one days after the submission of such request, the finance control board shall authorize the disbursement if it is satisfied that the disbursement is appropriate. The authorization shall be recorded in a resolution adopted by the board. If the board is not satisfied, it shall so indicate by the adoption of a resolution stating its disapproval. Failure to adopt an authorizing resolution within twenty-one days shall constitute a denial of the request for disbursement.
Prior to March first of each year for which the finance control board shall remain in existence, the school committee shall file with the said board a detailed proposed budget for the ensuing fiscal year. The board shall review the proposed budget and issue a report of its findings by June first following the date of filing.
SECTION 5. On or before August first of each year, or within ten days after approval by the board of aldermen and the mayor of the annual appropriation order for such fiscal year, whichever shall occur later, the department heads or agencies including the superintendent of schools for the school department, shall submit to the chief financial officer, with a copy to the city clerk in such form as the chief financial officer may prescribe, an allotment schedule of the appropriations of all personnel categories included in said budget, indicating the amounts to be expended by the department or agency for such purposes during each of the fiscal quarters of said fiscal year, or such shorter time periods as the mayor and chief financial officer may prescribe.
Whenever the chief financial officer determines that any department or agency including the school department, will exhaust or has exhausted its quarterly or shorter time period allotment and any amounts unexpended in previous periods, he shall give notice in writing to such effect to the department head, the mayor, the city solicitor, and the city clerk who shall transmit the same to the board of aldermen. Upon such a determination and upon being given such notice, the chief financial officer shall provide the foregoing officials additional reports on at least a monthly basis indicating the status of such accounts.
The mayor within seven days after receiving such notice, shall determine whether to waive or enforce such allotment. If the allotment for such period is enforced or not waived, the department head shall thereafter terminate all personnel expenses for the remainder of such period. All actions, notices, and decisions provided for in this section shall be transmitted to the board of aldermen and the city clerk within seven days.
No personnel expenses earned or accrued, within any department, shall be charged to or paid from such department's allotment of a subsequent period without approval by the mayor. Approval of a payroll for payment of wages, or salaries or other personnel expense which would result in an expenditure in excess of the allotment shall be a violation of this section by the department head, including the superintendent of schools and the school committee. If the continued payment of wages, salaries or other personnel expenses is not approved in a period where a department has exhausted the period allotment or allotments as specified above, or, in any event, if a department has exceeded its entire appropriation for a fiscal year, the city shall have no obligation to pay such personnel cost or expense arising after such allotment or appropriation has been exhausted.
Notwithstanding the provisions of chapter one hundred and fifty E of the General Laws, every collective bargaining agreement entered into by the city or the school department after the effective date of this act shall be subject to and shall expressly incorporate the provisions of this section.
SECTION 6. No official of the city of Chelsea, except in case of emergency involving the health or safety of people or property, shall expend intentionally in any fiscal year any sum in excess of the appropriations duly made in accordance with law, nor involve the city in any contract for the future payment of money in excess of such appropriations.
Any official who violates the provisions of this section shall be personally liable to the city for any amounts expended intentionally in excess of an appropriation to the extent the city does not recover such amounts from the person to whom paid. The trial court of the commonwealth or a single justice of the supreme judicial court shall have jurisdiction to adjudicate claims brought by the city hereunder and to order such relief as the court may find appropriate to prevent further violations of this section. Any official who violates the provisions of this section shall be subject to removal for cause.
SECTION 7. There shall be in the city a department known as the assessing department, which shall be under the charge and control of a three member board of assessors whose members shall be appointed by the board of aldermen for a term of three years. A full time director of assessing shall assist the board of assessors in performing the duties conferred or imposed upon assessors of cities in the commonwealth by General Laws, except as otherwise provided herein. To this end the director shall submit written recommendations to the board of assessors for its review and action as to matters affecting the administration, valuation and assessing of properties. The director shall review every application for an exemption or abatement of a tax and shall submit his written recommendation thereon to the board of assessors. The director shall appoint an operations director subject to the approval of the board of assessors and the mayor, and shall further recommend to the board of assessors the organization of the department as he shall adjudge necessary for the proper conduct thereof.
SECTION 8. A department of finance is hereby established under the charge and control of a chief financial officer who shall be appointed by the mayor subject to board of aldermen confirmation for a term of five years. The chief financial officer shall report to the mayor and shall be a person especially suited by education, training and experience to perform the duties of the office. The chief financial officer shall not hold any elective office nor shall he engage in any other business or occupation. The chief financial officer shall appoint a treasurer/collector, auditor, director of assessing with the approval of the board of assessors, and the purchasing agent subject to the approval of the mayor and board of aldermen, for a term of three years.
The powers and duties of the chief financial officer shall include the following: coordination, administration, and supervision of all financial services and activities; assistance in all matters related to municipal financial affairs; implementation and maintenance of uniform systems, controls, and procedures for all financial activities in all departments, including the school department, and including but not limited to maintenance of all financial and accounting data and records; implementation and maintenance of uniform data processing capabilities for all departments; supervision of all data processing activities; implementation and maintenance of uniform budget guidelines and procedures; assistance in development and preparation of all department budgets and spending plans; review of all contracts and obligations; monitoring of the expenditure and investment of all funds, including periodic reporting to appropriate departments of the status of accounts; establishment of a spending plan for each department; and the allotment of funds on a periodic basis as provided in section five. In all cases where the duty is not expressly charged to any other department or office, it shall be the duty of the chief financial officer to promote, secure, and preserve the financial interests of the city.
All department budgets and requests for budget transfers must be submitted to the chief financial officer for review and recommendations prior to submission to the mayor, board of aldermen or school committee as appropriate.
The chief financial officer shall report on at least a quarterly basis to the mayor and board of aldermen on the financial status of the city.
The treasurer/collector, auditor, and director of assessing and purchasing agent shall be subject to removal for cause by the chief financial officer, subject to the approval of the mayor and board of aldermen.
The mayor with the approval of the board of aldermen may remove the chief financial officer before his term of office expires. At least fifteen days before such proposed removal shall become effective there shall be filed with the city clerk a preliminary written resolution setting forth in detail the reason for the proposed removal and a copy of said resolution shall be served upon the person to be removed.
SECTION 9. Notwithstanding the provisions of section eight of this act, if the mayor of the city of Chelsea shall have failed to appoint a chief financial officer within ninety days after the effective date of this act, the city of Chelsea finance control board, shall appoint a chief financial officer to serve pursuant to the provisions of this act for such term as indicated.
Notwithstanding the provisions of section seven of this act, if the chief financial officer of the city of Chelsea shall have failed to appoint a director of assessing within one hundred and twenty days after the effective date of this act, the city of Chelsea finance control board, shall appoint a director of assessing to serve pursuant to the provisions of this act.
SECTION 10. Notwithstanding the provisions of section eight of this act, the mayor of the city of Chelsea subject to board of aldermen approval shall appoint a chief financial officer from a list of three names submitted by the commissioner of revenue. The provisions of this section shall expire ninety days from the effective date of this act.
SECTION 11. This act shall take effect upon its passage, except that the provisions of section five as to the enforcement or waiver of allotments shall be in effect only with respect to quarters ending forty-five days or more after the effective date of this act; and an allotment schedule must be submitted as provided within fifteen days of the appointment of a chief financial officer.
SECTION 12. The provisions of this act shall be deemed to supercede any ordinance which is contrary or inconsistent with the provisions of this act.
SECTION 13. No successor may be appointed to replace any individual serving as treasurer/collector, auditor, purchasing agent or assessors on the effective date of this act until the term of office shall have expired or a vacancy shall exist, whichever shall come first.