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, the city of Holyoke is hereby authorized to borrow at one time or from time to time, a sum in the aggregate not exceeding four million dollars from the commonwealth for the purpose of maintaining and operating the city while it adjusts the level of its operating expenses and operating revenues so as to achieve fiscal stability. No interest shall be payable by the city on account of such loan.
Such loan shall be repaid to the commonwealth in ten equal installments commencing with the fiscal year nineteen hundred and ninety, or in accordance with a schedule providing for a more rapid amortization of the loan balance, as determined by the mayor of the city. The state treasurer shall deduct and withhold the amount of principal due the commonwealth in any year on account of such loan from the distribution of aid payable to the city of Holyoke pursuant to chapter fifty-eight and chapter seventy of the General Laws.
Debt incurred under authority of this act shall not be included in determining the limit of indebtedness of the city as established by law.
SECTION 2. All proceeds of any loan authorized by section one shall be deposited in a separate fund which shall be set up on the books of the city and maintained separate and apart from all other funds and accounts of the city. Such fund shall be called the City of Holyoke Finance Control Fund of 1988, hereinafter referred to as the Fund. Disbursements shall be made from the Fund in accordance with the provisions of this section only if the board established by section three is satisfied that the city has taken all feasible steps to insure the availability of adequate revenues to support its operating budgets in subsequent fiscal years.
In fiscal years nineteen hundred and eighty-nine and nineteen hundred and ninety, the finance control board established under the provisions of section three, acting on a request of the mayor and the board of aldermen, may authorize disbursements from said Fund to the city's general fund by a majority vote before the fixing of the city's tax rate, to the extent such disbursements are needed to balance the city budget; provided, however, the aggregate amounts of such disbursements shall not exceed two million dollars in either fiscal year unless the disbursements in excess of two million dollars for a given fiscal year shall be approved by a three-fourths vote of said finance control board. The amount of any such approved disbursements from said Fund shall be used by the city as an estimated receipt in establishing the tax rate for the fiscal year for which the disbursement is approved.
If on June thirtieth, nineteen hundred and ninety any amount borrowed under authority of section one remains undisbursed for the purposes provided herein, such undisbursed amount shall be returned to the commonwealth, and the amount due the commonwealth by the city of Holyoke on account of borrowing pursuant to said section one shall be diminished by the amount of such reversion.
SECTION 3. Prior to the issuance of any loan from the commonwealth to said city of Holyoke under authority of section one, there shall be established in the executive office for administration and finance, a city of Holyoke finance control board consisting of the secretary of administration and finance, or his designee; the commissioner of education or his designee; the commissioner of revenue, or his designee; the director of accounts, or his designee; the mayor of the city of Holyoke; president of the board of aldermen, or his designee; and a representative of the Holyoke business community, to be selected by the governor.
Said board shall promote the implementation of appropriate initiatives to secure the financial stability of said city of Holyoke. Said board is further empowered to approve disbursements from the Fund established by section two solely for the purposes provided in said section two. Said board shall be disbanded on June thirtieth, nineteen hundred and ninety unless continued by a majority vote of the members of said board.
SECTION 4. This act shall take effect on or after July first, nineteen hundred and eighty-eight and upon acceptance by the mayor and board of aldermen of the city of Holyoke.