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 Springfield may appropriate in each fiscal year an amount as deemed necessary by the board of water commissioners of said city, but not to exceed one-twentieth of one percent of the city's equalized valuation as defined in section one of chapter forty-four of the General Laws, to establish and maintain a fund to be known as the City of Springfield Water Department Liability Insurance Fund; provided, however, that no such appropriation may be made in any fiscal year when the aggregate amount in the special fund equals or exceeds one percent of such equalized valuation. Any interest earned thereon shall become part of said fund. The treasurer of said city shall be the custodian and administrator of said fund and may deposit or invest said fund in such manner as may be permitted under the provisions of section fifty-four of said chapter forty-four for the investment of municipal trust funds.
Said treasurer shall pay from the amount in said fund such amounts as the mayor in consultation with the city solicitor of said city determines to be necessary from time to time to settle claims against the said city water department arising out of the operation of motor vehicles, and to cover the costs of defending said city water department against such claims including, without limitation, the costs of employing legal counsel, court costs and filing fees and the payment of court judgments and applicable interest. Any amount in said fund which remains at the end of a fiscal year shall be retained in said fund to be paid out by the city treasurer in subsequent years in accordance with the provisions of this act.
SECTION 2. This act shall take effect upon its passage.