AN ACT AUTHORIZING THE TOWN OF MILTON TO ESTABLISH A SPECIAL PURPOSE STABILIZATION FUND
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 any general or special law to the contrary, the town of Milton, hereinafter referred to in this act as the town, may establish and maintain a Special Purpose Stabilization Fund, for the sole purpose of funding future debt service obligations of certain town capital projects described in section 4, hereinafter referred to in this act as the subject capital projects, financed with debt issuances for which the town’s voters have approved an exemption from the limitations imposed by section 21C of chapter 59 of the General Laws, hereinafter referred to in this act as exempt debt.
SECTION 2. Notwithstanding section 21C of chapter 59 of the General Laws, for any fiscal year in which the total of the town's principal and interest on borrowings for the subject capital projects with exempt debt and the town’s principal and interest on borrowings for the town’s prior school and library projects is less than the principal and interest on the town's fiscal year 2018 exempt debt, the town may raise by taxation the difference between such principal and interest and the town's fiscal year 2018 exempt debt principal and interest, and such additional amount shall be deposited into the Special Purpose Stabilization Fund.
SECTION 3. For any fiscal year in which the total of the town's principal and interest on borrowings for the subject capital projects with exempt debt and the town’s principal and interest on borrowings for the town’s prior school and library projects exceeds the amount of the principal and interest on the town's fiscal year 2018 exempt debt the town shall appropriate from the Special Purpose Stabilization Fund an amount equal to the difference between such principal and interest and the principal and interest on the town's fiscal year 2018 exempt debt for the payment of such principal and interest and shall reduce the amount of principal and interest it may raise for the exempt debt pursuant to section 21C of chapter 59 of the General Laws for the year by the amount appropriated.
SECTION 4. Subject to section 7, money in the Special Purpose Stabilization Fund may be appropriated and expended only to stabilize the cost to the taxpayers for the replacement or substantial restoration and improvement of 3 town fire stations and the department of public works facilities in the town of Milton, and only if town meeting authorizes borrowing for 1 or more of the subject capital projects and the voters of the town vote to exempt the principal and interest on debt issued for 1 or more of such projects from the limitations set forth in section 21C of chapter 59 of the General Laws; provided however, that the maximum principal amount of debt associated with the foregoing projects that may be payable from the Special Purpose Stabilization Fund shall not exceed $50,000,000.
SECTION 5. The balance in the Special Purpose Stabilization Fund shall not exceed 2½ per cent of the town's annual operating budget for the then current fiscal year.
SECTION 6. Funding of the Special Purpose Stabilization Fund shall terminate when the balance in the fund is sufficient to cover future payments of principal and interest on exempt debt for the subject capital projects that exceed the fiscal year 2018 exempt debt principal and interest. The Special Purpose Stabilization Fund shall be closed when the balance in the fund is $0.
SECTION 7. Notwithstanding section 4, if the voters of the town vote not to exempt the principal and interest on debt issued for each of the subject capital projects from the limitations imposed pursuant to section 21C of chapter 59 of the General Laws, the board of selectmen of the town of Milton and the director of accounts within the department of revenue shall mutually agree upon a schedule for the town to use the balance in the Special Purpose Stabilization Fund to pay the principal and interest on the borrowings for which the town had exempt debt in fiscal year 2018 and to reduce the amount raised for principal and interest on such exempt debt pursuant to said section 21C of said chapter 59 or, if such exempt debt has been paid, to reduce the tax levy.
SECTION 8. This act shall take effect upon its passage.
Approved, July 17, 2017