SECTION 1: Notwithstanding the provisions of any general or special law to the contrary, the town of Milton is authorized to establish and maintain a Special Purpose Stabilization Fund, for the purpose of funding future debt service obligations of certain town capital projects financed with debt issuance that would be exempt from the limitations imposed by Proposition 2½ (Exempt Debt).
SECTION 2: For any fiscal year during which the town’s future principal and interest on Exempt Debt borrowing for capital projects with Exempt Debt is less than the principal and interest on the town’s Fiscal Year 2016 Exempt Debt, the difference between such principal and interest and the town’s Fiscal Year 2016 Exempt Debt principal and interest shall be deposited into said Special Purpose Stabilization Fund.
SECTION 3: For any fiscal year during which the town’s future principal and interest on borrowing for capital projects with Exempt Debt exceeds the amount of the principal and interest on the town’s Fiscal Year 2016 Exempt Debt, the difference between such future principal and interest and the principal and interest on the town’s Fiscal Year 2016 Exempt Debt shall be paid from the proceeds of said Special Purpose Stabilization Fund.
SECTION 4: Money in the Special Purpose Stabilization Fund may be expended only for the purpose of stabilizing the cost to the taxpayers for the future replacement or substantial restoration and improvement of three town fire stations and the town Department of Public Works facilities, and only for projects approved by town meeting and for which the voters of the town have voted to exclude the principal and interest on debt service related to said projects from the limitations set forth in Proposition 2½, provided 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 fifty million dollars ($50,000,000.00).
SECTION 5: The balance in the Special Purpose Stabilization Fund shall not exceed two and one-half percent of the town’s annual operating budget for the then current fiscal year.
SECTION 6: Funding of the Special Purpose Stabilization Fund would be suspended when the balance in said Fund is sufficient to cover any future payments of principal and interest on Exempt Debt that would exceed the Fiscal Year 2016 Exempt Debt principal and interest. The Special Purpose Stabilization Fund would be closed when the balance in said Fund is zero.
SECTION 7: This act shall take effect upon its passage.
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