Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. The city of Lawrence is hereby authorized to capitalize certain sums, the amortization amount, resulting from extraordinary costs incurred in fiscal year nineteen hundred and eighty-nine and fiscal year nineteen hundred and ninety. The city of Lawrence is hereby authorized to fund the amortization amount over a period starting with fiscal year nineteen hundred and ninety-one and not exceeding five years. The amortization amount for the purposes of this act, shall be the amount, determined by the city of Lawrence and certified by the commissioner of revenue; provided, however, that in no event shall the amortization amount exceed three million, one hundred thousand dollars.

Notwithstanding the provisions of any general or special law or ordinance to the contrary, but fully subject to the provisions and limitations of section twenty-one C of chapter fifty-nine of the General Laws, the assessors of the city of Lawrence may, subject to the approval of the commissioner of revenue, deduct, for fiscal year nineteen hundred and ninety, the amortization amount as certified by the commissioner of revenue from the amount to be assessed pursuant to section twenty-three of chapter fifty-nine of the General Laws. Under the conditions imposed herein, the assessors of the city of Lawrence may similarly deduct: for fiscal year nineteen hundred and ninety-one, an amount not greater than eighty percent of the amortization amount; for fiscal year nineteen hundred and ninety-two, an amount not greater than sixty percent of the amortization amount; for fiscal year nineteen hundred and ninety-three, an amount not greater than forty percent of the amortization amount, and for fiscal year nineteen hundred and ninety-four, an amount not greater than twenty percent of the amortization amount from the amount to be assessed for that fiscal year pursuant to section twenty-three of chapter fifty-nine of the General Laws.

Except as is expressly provided for herein, this act shall not authorize or permit any alteration in the maintenance of said city's accounts nor in the procedures whereby the assessors annually determine the amount of taxes to be assessed.

Such deductions as are herein authorized for the fiscal years nineteen hundred and ninety through nineteen hundred and ninety-four shall be permissible only to the extent that the commissioner of revenue annually determines and approves in each of those fiscal years that such deduction is necessary and appropriate to maintaining fiscal stability in the city of Lawrence. The commissioner of revenue is further authorized, as a condition of his annual approval as provided for herein, to require that the city of Lawrence submit for said commissioner's review a copy of the proposed annual budget document as well as any supplemental appropriation orders as may from time to time be made. The commissioner may further require that the city of Lawrence incorporate in such annual budget document and supplemental appropriation orders such specific expenditure, revenue or other financial information as he deems reasonable or useful to ensure a balanced annual budget and promote fiscal stability in the city of Lawrence. The failure of the city of Lawrence to comply with such requirements shall, without otherwise limiting the commissioner's general authority to withhold approval for such deductions, be sufficient grounds for denying such deductions.

SECTION 2. There is hereby established in the city of Lawrence the city of Lawrence fiscal oversight 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 Lawrence; the president of the city council, or his designee; and a designee of the school committee.

Said board shall initiate and assure the implementation of appropriate initiatives to secure the financial stability of the city of Lawrence, and shall continue in existence until June thirtieth, nineteen hundred and ninety-one 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 amortization as authorized pursuant to section one.

Until such time as the fiscal oversight board shall cease to exist, no appropriation, loan order or transfer by the city council shall take effect until approved by the fiscal oversight board. The board shall have full authority to adopt such rules and procedures as it deems necessary and appropriate to effectuate the purposes of this act.

In each year during which the fiscal oversight board continues in existence, the mayor shall, at the same time as the annual budget is submitted to the city council, provide to the board a copy of the proposed annual budget together with a supporting revenue and expenditure statement in such detail as the board may prescribe. The board shall review such budgetary information and issue a report of its findings no later than twenty days after receipt of the budget and revenue and expenditure statement.

In order to promote and ensure the fiscal stability of the city of Lawrence the board may require the filing of a detailed annual 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 residents of the city of Lawrence.

Each work plan shall be in such detail as the board may prescribe and may include, but not be limited to, a plan for improved financial and spending controls; budget guidelines and objectives for the fiscal year nineteen hundred and ninety-one, and for such other fiscal years for which the board may remain in existence; a professional and nonprofessional staffing plan; and a plan for other proposed savings to be implemented in fiscal year nineteen hundred and ninety-one, and for such other fiscal years for which the board may remain in existence. Any such plan submitted by the school department shall be approved by the school committee.

Prior to March first of each year for which the fiscal oversight board shall remain in existence, the school committee shall file with the said board a proposed budget in such detail as the board may prescribe 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.

During the course of each fiscal year in which the fiscal oversight board is in existence, the board may require that a status report be filed with the board by each department head on a quarterly basis.

The board shall have full authority to waive any reporting or filing requirements contained in this section; provided, however, that in no event may the board waive the requirements included herein relating to the submission by the school committee of a proposed annual budget for the ensuing fiscal year.

The fiscal oversight board may prepare such reports of its findings and reviews as it deems appropriate, and issue such recommendations for further action to the mayor, city council, municipal department heads or agencies of the commonwealth as the board determines necessary. The members of the board shall serve without compensation.

SECTION 3. On or before August first of each year, or within ten days after the approval by the city council and the mayor of the city of Lawrence of the annual budget for such fiscal year, whichever shall occur later, the persons or officers in charge of all city departments, including the superintendent of schools for the school department, or boards, commissions, agencies or other units of city government, shall submit to the director of budget and finance and the comptroller, with a copy to the city clerk who shall transmit the same to the city council, in such form as the comptroller may prescribe, an allotment schedule of its appropriations for all personnel expenditure categories included in said budget, indicating the amounts to be expended by the department, board, commission, agency or other unit of city government for such purposes during each of the following five allotment periods: July first through September thirtieth, October first through December thirty-first, January first through the last day of February, March first through April thirtieth, and May first through June thirtieth.

Whenever the director of budget and finance or the comptroller determines that any department, board, commission, agency or other unit of city government, including the school department, will exhaust or has exhausted its time period allotment and any amounts unexpended in previous periods, he shall give notice in writing to such effect to the department head or other officer in charge thereof, the mayor, the city attorney, the director of budget and finance or comptroller as appropriate, and to the city clerk who shall forthwith transmit the same to the city council and the fiscal oversight board, if such board remains in existence at the time. Upon such a determination and notice thereof the director of budget and finance shall provide to the foregoing officials additional reports on at least a monthly basis indicating the status of such accounts.

The mayor, within ten days after receiving such notice, shall determine whether to waive such allotment. A determination that such allotment shall be waived shall not become effective unless and until the director of budget and finance files with the mayor and city clerk a certificate that in his opinion sufficient financial resources are or will become available to accommodate the amount of the expenditures in excess of allotment within subsequent period allotments to such department, board, commission, agency or other unit of city government. If the allotment for such period is waived, the department, board, commission, agency or other unit of city government shall reduce subsequent periods' allotments by the amounts necessary to keep its expenditures within its annual budget, and shall file a report of such allotment adjustments with the mayor, city council, director of budget and finance, comptroller and fiscal oversight board, if such board remains in existence at the time. If the allotment for such period is not waived, the department, board, commission, agency or other unit of city government shall terminate all personnel expenditures necessary to meet allotted amounts for the remainder of such period; provided, however, that to the extent that personnel expenditures must be reduced pursuant to the foregoing for one or more allotment periods, no provision included herein shall be construed to abridge the rights of the city or its municipal employees including school department employees to negotiate the method of implementing the required reductions, within twenty-one days of the mayor's determination not to waive such allotment, pursuant to a collective bargaining agreement under the provisions of chapter one hundred and fifty E of the General Laws. All actions, notices and decisions provided for in this section shall be transmitted to the city clerk, city council and fiscal oversight board, if then in existence, within seven days.

No personnel expenses earned or accrued within any department, board, commission, agency or other unit of city government shall be charged to or paid from any allotment of a subsequent period without the written approval of the mayor, except for subsequently determined retroactive compensation adjustments, or in the case of an emergency involving the health or safety of the people or their property.

Approval of a payroll for payment of wages, salaries or other personnel expenses which would result in an expenditure in excess of the allotment, except in the case of an emergency involving the health or safety of the people or their property, shall be a violation of this section by the person or officer in charge of the department, board, commission, agency or other unit of city government, 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, board, commission, agency or other unit of city government, has exhausted the period allotment or allotments as specified above, or in any event, has exceeded its entire appropriation for a fiscal year, the city shall have no obligation to pay such personnel costs or expenses arising after such allotment or appropriation has been exhausted, except in the case of an emergency involving the health or safety of the people or their property.

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 on or after the effective date of this act shall be subject to and shall expressly incorporate the provisions of this section.

Where a supplemental appropriation which authorizes and provides for additional personnel expenditures is approved during the course of and with respect to the current fiscal year and prior to the first day of April of that fiscal year, the subsequent period allotments shall be revised and supplemented so as to include the additional personnel expenditures authorized by such supplemental appropriation.

For the purposes of this act the word "emergency" shall mean a major disaster, including but not limited to, flood, drought, fire, hurricane, earthquake, storm or other catastrophe, whether natural or otherwise, which poses an immediate threat to the health or safety of persons or property.

SECTION 4. The city of Lawrence shall establish a special reserve fund for extraordinary and unforeseen expenditures, which fund shall be denominated the "supplemental reserve fund to ensure fiscal stability". Such fund shall be separate and in addition to any amounts appropriated pursuant to the provisions of section five A of chapter forty of the General Laws.

Commencing with fiscal year nineteen hundred and ninety-one and for all fiscal years thereafter, prior to the date when the tax rate is fixed, the board of assessors shall include in the amounts to be raised pursuant to section twenty-three of chapter fifty-nine of the General Laws for such fiscal year an amount, the supplemental reserve fund sum, as determined under the provisions herein, such amount to be certified to the board of assessors by the comptroller.

The supplemental reserve fund sum for fiscal year nineteen hundred and ninety-one shall be an amount equal to one-half of one percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-two shall be an amount equal to one percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-three shall be an amount equal to one and one-half percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; and the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-four and each subsequent fiscal year shall be an amount equal to two percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; provided further that such amounts may be increased by penalty adjustments as provided for herein.

In each year the amount required to be raised for such special reserve fund may be reduced by the amount, if any, remaining in the reserve fund established for the preceding year after all expenditures have been made therefrom as herein authorized, and such remaining amount shall be retained in the special reserve fund provided for the then current fiscal year.

Transfers or expenditures may be made from the special reserve fund of any fiscal year during that fiscal year only and then only by the mayor with the approval of the city council, and provided further that if the fiscal oversight board continues in existence at the time of such transfer or expenditure, only with the approval of said board. Each such transfer or expenditure request by the mayor shall be accompanied by a written statement detailing the amount and the reason for such transfer or expenditure. Except for such transfers or expenditures as hereabove authorized, there shall be no other transfers or expenditures from such fund, nor shall there be any charges against such fund nor reductions in the amount of such fund.

If in any fiscal year the special reserve fund as provided for herein is depleted by transfers or expenditures in excess of fifty percent of the amount certified for that year by the comptroller plus the amount of any penalty adjustment as provided for hereinafter, or if the city incurs net deficits with respect to such fiscal year in excess of fifty percent of the aforementioned amount, the special reserve fund requirement for the succeeding fiscal year shall be increased by one quarter of one percent of the gross amount to be raised for the year with respect to which the use of the reserve fund or the deficits were incurred as the case may be. Such percentage increase shall be of a permanent nature and be fully effective with respect to the special reserve fund requirements of all succeeding fiscal years, except as provided for hereinafter; provided further, however, that if such penalty adjustment increase shall be made for fiscal years nineteen hundred and ninety-two, nineteen hundred and ninety-three, nineteen hundred and ninety-four or nineteen hundred and ninety-five, it shall be in addition to the percentage increase in the reserve fund provided for hereinabove. In no event, however, may the special reserve fund requirement for any fiscal year exceed five percent of the gross amount to be raised of the prior fiscal year as appearing on the city's tax rate recapitulation of said prior fiscal year. All amounts required by this act to be raised for each fiscal year shall be certified to the board of assessors by the comptroller prior to the establishment of the tax rate for the then current fiscal year.

Notwithstanding the foregoing, the mayor, with the approval of the commissioner of revenue, may for any fiscal year, reduce the amount otherwise required to be raised for the special reserve fund by one quarter of one percent of the gross amount to be raised of the prior fiscal year as appearing on the city's tax rate recapitulation of said prior fiscal year, which percentage decrease shall be of a permanent nature and be fully effective with respect to the special reserve fund requirements of all succeeding fiscal years; provided that such decrease shall not reduce the fund below one and one-half percent of the gross amount to be raised of the prior fiscal year as appearing on the city's tax rate recapitulation of said prior fiscal year, and provided further that such reduction, if any, shall not work to eliminate or modify such subsequent penalty adjustments as may arise under the provisions hereinabove.

The city of Lawrence fiscal oversight board, notwithstanding the foregoing, shall have full authority during any year in which it is in existence, to waive or modify any of the requirements of this section to the extent that it determines that such action is necessary to ensure the fiscal stability of the city of Lawrence.

SECTION 5. No official of the city of Lawrence, except in the case of an emergency involving the health or safety of the people or their property, shall intentionally expend in any fiscal year any sum in excess of such official's departmental appropriation duly made in accordance with the law, nor commit the city to any obligation for the future payment of money in excess of such appropriations.

Any official who intentionally violates the provisions of this section shall be personally liable to the city for any amounts expended in excess of an appropriation to the extent that the city does not recover such amounts from the person or persons to whom such sums were 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 the purposes of this act the word "official" shall mean a city department head, permanent, temporary or acting, including the superintendent of schools, and all municipal boards, committees and commissions which recommend, authorize or approve the expenditure of funds.

SECTION 6. Notwithstanding the provisions of any general or special law to the contrary, for purposes of temporary borrowing pursuant to the provisions of section four of chapter forty-four of the General Laws, the city of Lawrence, for fiscal years nineteen hundred and ninety and years thereafter, shall hereby be authorized to incur debt and issue notes therefor to an amount which shall not exceed in the aggregate the total tax levy of the fiscal year preceding the fiscal year in which the debt is incurred, together with the net amount received during such preceding fiscal year from the excise on motor vehicles and trailers, as provided by chapter sixty A of the General Laws, and the payments made by the commonwealth in lieu of taxes on account of property taken for institutions or for metropolitan district purposes, and the amounts estimated by the commissioner of revenue under the provisions of section twenty-five A of chapter fifty-eight of the General Laws to be distributable to the city of Lawrence in the fiscal year for which the loan is authorized.

SECTION 7. This act shall take effect upon its passage, except that the provisions of section three as to allotments shall be in effect only with respect to allotment periods ending forty-five days or more after the effective date of this act.