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, there is hereby established in the treasury of the town of Saugus a special fund to be known as the Saugus Debt Service Reserve Fund. The amount appropriated to said fund at the special town meeting held on October sixteenth, nineteen hundred and ninety-five, shall be deposited in said fund upon the effective date of this act. At any special town meeting, said town may appropriate additional funds for and authorize additional deposits into said fund. The town treasurer shall be the custodian of said fund and may invest amounts in said fund in accordance with the provisions of section fifty-four of chapter forty-four of the General Laws. All earnings and income from such investments shall be added to and become a part of said fund.
Amounts in said fund may be used in any fiscal year to reduce the amount in the tax levy for such fiscal year to pay principal of and interest on long-term debt of the town maturing or due in such fiscal year. The amount to be so used shall be determined by the town finance director, with the approval of the town manager, on or prior to August first of each fiscal year and notice of such amount shall be given to the town assessors within ten days of the determination. Such amount shall be used without further appropriation by the town assessors to reduce the amount otherwise to be assessed for such fiscal year pursuant to section twenty-three of chapter fifty-nine of the General Laws.
SECTION 2. The vote of the town passed under Article 3 of the warrant for the special town meeting held on October sixteenth, nineteen hundred and ninety-five appropriating three million seven hundred seventy thousand dollars to said fund is hereby ratified, validated and confirmed.
SECTION 3. This act shall take effect upon its passage.