SECTION 1. Notwithstanding section 5B of chapter 40 of the General Laws and sections 53 and 53E½ of chapter 44 of the General Laws or any other general or special law to the contrary, there shall be established in the town of Westborough a special fund to be known as the Capital Improvements Fund to which shall be credited, without further appropriation, tax revenues received in connection with the property commonly referred to as the state hospital property and shown as parcel 1F on assessors map 38, to include but not be limited to property, personal and excise taxes, and which revenues shall be referred to as state hospital property tax revenues. 

SECTION 2. Not later than March 15 in any year, the Westborough board of assessors shall estimate the annual state hospital property tax revenues to be collected in the upcoming fiscal year and report the same to the board of selectmen.  As of the date of the annual town meeting in any year, the town treasurer shall allocate to the capital improvements fund, without further appropriation, estimated state hospital property tax revenues.

SECTION 3. The capital improvements fund shall be expended only for capital projects or purposes for which the town may borrow pursuant to sections 7 and 8 of chapter 44 of the general laws, which capital projects or purposes are estimated to cost $10,000 or more and are not properly categorized as annual operating expenses, as well as for the payment of debt service on capital projects or purposes meeting the standards set forth in this section, whether such projects or purposes were approved prior to or after the effective date of this act. 

SECTION 4. This act shall apply to estimated state hospital property revenues to be collected in fiscal year 2019 and thereafter.

SECTION 5. This act shall take effect upon its passage.