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. Notwithstanding the provisions of any general or special law, city charter provision, or local ordinance to the contrary, the city of Lowell, acting by and through its City of Lowell Finance Advisory Board, established by section three, is hereby authorized to borrow, at one time or from time to time, such sums, as are approved by the city manager and the city council of said city, and thereafter deemed appropriate by said Board, to maintain and operate said city while it adjusts the level of its expenses and revenues so as to achieve balanced budgets and fiscal stability; provided, however, that said Board shall have authority hereunder to limit such borrowing to an amount or amounts less than the total amount or amounts approved by the city manager and city council. Bonds or notes issued under authority of this act for operating purposes may be issued for a term not in excess of ten years and shall be backed by the full faith of the city of Lowell; such bonds or notes shall be eligible to be issued as qualified bonds pursuant to chapter forty-four A of the General Laws.

SECTION 2. All proceeds of any loan authorized by section one shall be deposited in a separate fund which shall be set up on the books of the city of Lowell and maintained separate and apart from all other funds and accounts of said city. Such fund shall be called the "City of Lowell Finance Advisory Fund", hereinafter referred to as the Fund. The city manager, with the approval of the City of Lowell Finance Advisory Board, as established by section three, may authorize disbursements from the Fund for such operating purposes as the city manager deems appropriate to maintain and continue city operations. If said Board so votes, funds borrowed for operating purposes may be applied, with the approval of the director of accounts, as general revenue for purposes of section twenty-three of chapter fifty-nine of the General Laws. Said Board may establish such rules and procedures as it deems appropriate relating to disbursements from the Fund and the reporting and accounting therefor.

SECTION 3. There is hereby established in the city of Lowell the City of Lowell Finance Advisory Board, consisting of the secretary of administration and finance or his designee; the commissioner of revenue or his designee; the director of accounts or his designee; the mayor of the city of Lowell; and the city manager. Said Board shall initiate and assure the implementation of appropriate initiatives to secure the financial stability of the city of Lowell, and shall continue in existence until June thirtieth, nineteen hundred and ninety-three unless the members, after consideration of the recommendation of the city council should they so choose to offer one, by majority vote shall annually vote to continue the operation of said Board from year to year.

Until such time as the City of Lowell Finance Advisory Board shall cease to exist, no appropriation, loan order or transfer shall take effect until approved by said Board. In addition to the authority and powers conferred elsewhere in this act, and notwithstanding any general or special law, city charter provision, or local ordinance to the contrary, said Board shall have the following authority:

(a) The authority, subject to the express delegation thereof by the city manager and by the city council by majority vote, to amend at any time any appropriation, loan order, transfer or municipal spending authority. The authority to amend, pursuant to the authority contained herein, shall include the power to increase or decrease an existing appropriation, loan order, transfer or spending authority; the authority to eliminate an existing appropriation, loan order, transfer or spending authority; and the power to create an appropriation, transfer or spending authority. In exercising its authority under this clause, said Board may act with respect to municipal spending purposes which are not the subject of separately identified appropriations. The authority of said Board under this clause shall not be subject to the limitations of section thirty-three B of chapter forty-four of the General Laws.

(b) If there is no annual budget lawfully established for a fiscal year by the first day of such fiscal year, the authority, subject to the express delegation thereof by the city manager and the city council, by majority vote, to establish such appropriations for that fiscal year as it deems appropriate and to amend, as provided for above, such appropriations during that fiscal year.

(c) The authority, subject to the express delegation thereof by the city manager, and the city council, by majority vote, to encumber or impound, at any time, any unexpended or unencumbered appropriation or spending authority of any kind notwithstanding the prior approval of said Board of such appropriation or spending authority. To the extent that funds previously encumbered or impounded remain encumbered or impounded at the conclusion of the fiscal year, such amounts shall revert to the general fund.

(d) In addition and without limitation of the aforementioned authority, the independent authority, subject to the express delegation thereof by the city manager and the city council, by majority vote, to establish, set, raise or lower any fee, rate or charge, for any service, license, permit or other municipal activity, otherwise within the authority of the city to establish, set, raise or lower; provided, further, that no such fee, rate or charge shall be established, set, raised or lowered without written notice to the city manager and city council at least forty-five days before the effective date of such action.

Action by said Board, under authority of this act, shall in all respects constitute valid and lawful action by the city for purposes of chapters forty, forty-one, forty-four and fifty-nine of the General Laws and for all municipal finance and other matters.

In each year during which said Board continues in existence, the city manager shall, at the same time as the annual budget is submitted to the city council, provide to said Board a copy of the proposed annual budget together with a supporting revenue and expenditure statement in such detail as said Board may prescribe. Said Board shall review such budgetary information and may issue a report of its findings.

In order to promote and ensure the fiscal stability of the city of Lowell, said Board may also require the filing of a detailed annual work plan by each municipal department which shall be approved by the city manager, setting forth certain actions which may be implemented by each such department through its department head to ensure greater efficiency in the delivery of services by the city of Lowell.

Each work plan shall be in such detail as said Board may prescribe, and may 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 year nineteen hundred and ninety-three, and for such other fiscal years for which said Board may remain in existence; (3) a professional and non-professional staffing plan; (4) a plan for other proposed savings to be implemented. Any such plan submitted by the school department shall be approved by the school committee prior to submission to said Board.

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

Said Board shall have full authority to waive any reporting or filing requirements contained in this section.

Said Board may prepare such reports of its findings and review and issue such recommendations for further action to the city manager, city council, municipal department heads or agencies of the commonwealth as said Board determines appropriate. Members of said Board who are employees or officers of the commonwealth or the city of Lowell shall serve without compensation. Said Board may establish compensation, subject to the aforementioned limitations, for members of said Board; provided, however, that no such compensation shall become effective unless and until approved by the commissioner of administration and finance; and provided, further, that to the extent that such compensation is to be paid from city funds, the amount of such compensation shall be approved by a majority vote of the city council. Said Board shall have full authority to adopt such rules and procedures as it deems necessary and appropriate to effectuate the purposes of this act.

SECTION 4. School department budgets, expenditures and other financial matters requiring action by the city council shall be submitted to the city manager for review and comment after they have been acted upon by the school committee.

SECTION 5. The city auditor of the city of Lowell shall have such powers and duties as may be vested in his office by general or special law, and in addition thereto, such powers and duties as are provided for herein. To the extent not otherwise inconsistent herewith, the office of the city auditor shall also have such powers and duties as are provided by local ordinance.

The city auditor shall, in addition to his other duties, provide, upon majority vote and at the written request of either the city council or its finance committee, within a reasonable time period from such request, an oral or written assessment, or both, as the city council or its finance committee may request, of the current and future financial impact of the cost of any proposed appropriation order, lease or contract arrangement for a term including more than one fiscal year, collective bargaining agreement or borrowing authorization, particularly, but not limited to, as such cost item would relate to the continuous provision of the existing level of municipal services. To the extent reasonable, such assessment shall include such analysis or other information of a financial nature as is specifically requested by a vote of the city council or its finance committee. Such assessment and analysis shall be provided by the auditor as his professional opinion and he shall not be obligated to represent the opinion of the city manager.

The city council, by majority vote, may request such assessment, analysis or other financial information, without otherwise limiting its authority to request such, at any time it receives formal or informal notice of: (i) an expenditure which is or may be in excess of an appropriation; or (ii) any actions with respect to temporary or permanent indebtedness.

SECTION 6. Notwithstanding any general or special law, city charter provision or local ordinance to the contrary, but subject to the provisions of section twenty-one C of chapter fifty-nine of the General Laws, the city of Lowell shall establish a special reserve fund for extraordinary or unforeseen expenditures, which fund shall be called 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-three 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 city auditor.

The supplemental reserve fund sum for fiscal year nineteen hundred and ninety-three shall be an amount equal to one-quarter 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-four 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-five shall be an amount equal to three-quarters 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-six 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; and the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-seven and each subsequent fiscal year 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; 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 city manager with the approval of the city council, and provided further that if the City of Lowell Finance Advisory 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 city manager 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 hereinabove 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.

All amounts required by this act to be raised for each fiscal year shall be certified to the board of assessors by the city auditor prior to the establishment of the tax rate for the then current fiscal year. While said Board remains in existence, said Board, to the extent it deems it appropriate to effectuate the purposes of this act, may waive in part or in whole the requirement of this section.

SECTION 7. No official of the city of Lowell, except in the case of an emergency involving the health and safety of the people or their property, shall knowingly expend or cause to be expended in any fiscal year any sum in excess of such official's departmental or other governmental units appropriation duly made in accordance with law, nor commit the city, nor cause it to be committed, to any obligation for the future payment of money in excess of such appropriation, with the exception of court judgments.

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 amounts 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 violation of the provisions of this section shall be deemed sufficient cause for removal.

SECTION 8. 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, including the school committee, and commissions which recommend, authorize or approve the expenditure of funds, and 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 unexpected and immediate threat to the health or safety of persons or property.

SECTION 9. This act shall take effect upon its passage.