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 town of Holden may create and maintain a special fund to be known as the Public Works Depreciation Fund.

The town of Holden may appropriate to the Public Works Depreciation Fund by a majority vote at an annual or special town meeting in any year such amount as it deems appropriate. If the budget for the public works department of the town of Holden for any fiscal year, as approved at an annual or special town meeting, contains an item entitled "capital depreciation fund", then the dollar amount designated for such item shall be deemed to be a specific appropriation to the fund and may not thereafter be expended, except in accordance with the provisions of section 2.

The treasurer of the town of Holden shall be the custodian of the fund and may invest the assets of the fund in any investment authorized for the Infrastructure Investment Fund of the town of Holden under chapter 365 of the acts of 1993. Any interest and earnings resulting from the investments shall be added to, and become a part of, the Public Works Depreciation Fund.

SECTION 2. The Public Works Depreciation Fund may be appropriated at an annual or special town meeting by a majority vote, only for renewals in excess of ordinary repairs, extensions, reconstructions, enlargements and additions to the capital equipment of the public works department of the town of Holden. So much of the fund as the town may from time to time approve at an annual or special town meeting may also be used to pay notes, bonds or certificates of indebtedness, issued to pay for the cost of such renewals, in excess of ordinary repairs, extensions, reconstructions, enlargements and additions to the capital equipment of the department when such notes, bonds or certificates of indebtedness become due.

Notwithstanding the foregoing, the Public Works Depreciation Fund may be appropriated for any lawful purpose at an annual town meeting by a four-fifths vote and at a special town meeting by a nine-tenths vote.