SECTION 1. Notwithstanding the provisions of any general or special law to the contrary, the city of Beverly is hereby authorized to capitalize certain sums, the amortization amount, and fund the amortization amount over a period starting with fiscal year nineteen hundred and ninety-three and not exceeding three years, except as provided in this act. Unless determined otherwise pursuant to the provisions of this act, the amortization amount shall be the projected revenue deficit of five million, four hundred seventy-six thousand and fifty-five dollars, notwithstanding that the undesignated fund balance deficit is seven million, eight hundred twenty-three thousand, nine hundred dollars. At such time as the commissioner of revenue certifies that no further amortization as provided for herein is necessary as a result of the full funding and elimination of the amortization amount, all powers, rights, duties, obligations and requirements arising exclusively pursuant to the provisions of this act shall expire; provided, however, that the aforementioned amortization amount may be increased or decreased by said city of Beverly, with the approval of the commissioner of revenue, based upon financial information reported and certified by the city's independent certified public accounting firm. For fiscal year nineteen hundred and ninety-three, and fully subject to the provisions and limitations of section twenty-one C of chapter fifty-nine of the General Laws, the board of assessors of said city of Beverly, may, subject to the approval of the commissioner of revenue, deduct such portion of the amortization amount as the commissioner approves as consistent with the terms, requirements and purposes of the remedial plan provided for herein from the amount to be assessed pursuant to section twenty-three of said chapter fifty-nine. Under the conditions imposed herein, the assessors of said city of Beverly may similarly deduct for fiscal year nineteen hundred and ninety-four such portion of the amortization amount as the commissioner of revenue approves from the amount to be assessed for that fiscal year pursuant to said section twenty-three of said chapter fifty-nine. The deductions as are herein authorized for the fiscal years nineteen hundred and ninety-three and nineteen hundred and ninety-four shall be permissible only to the extent that said commissioner of revenue determines and approves in each of those fiscal years that such deduction is necessary and appropriate to achieving and maintaining fiscal stability in said city of Beverly.
As a condition of any amortization under authority of this act, said city of Beverly shall develop and adopt by vote of the board of aldermen with the approval of the mayor a three year remedial plan, acceptable to the commissioner of revenue, for implementing budgetary and fiscal initiatives to eliminate financial deficits and the recurrence thereof and restore fiscal stability in said city of Beverly. The plan shall contain a schedule of budgetary and operational actions and establish financial objectives and timetables to eliminate deficits and produce balanced budgets, and shall also include initiatives that will result in (a) improved budgetary and expenditure controls; (b) timely and supportable projections of anticipated revenues of all city departments and municipal enterprises for the ensuing fiscal year for use in the annual budget process; (c) monthly reporting by the city auditor/finance director for all city departments, boards and commissions of all receipts and expenditures of the month. Such reports shall include a comparison of actual expenditures to projected expenditures for the month, and actual receipts for the month to projected receipts for the month and actual receipts of the same month of the prior fiscal year; (d) quarterly reports of staffing levels and personnel changes for all city departments, including a summary of reductions in force, appointments to existing positions, new positions created, appointments to such new positions, and such other personnel expense information as the commissioner of revenue shall determine is relevant to achieving and maintaining fiscal stability in the city; (e) quarterly reports projecting personnel requirements and expenses for all city departments, boards and commissions for the ensuing fiscal quarter and the remainder of the then current fiscal year; (f) timely departmental financial reporting, prompt closure of the city's annual accounting records and issuance of annual financial statements, and the submission of the schedule A, so-called, and city balance sheet of the prior fiscal year to the commissioner of revenue on or before December fifteenth of each year; (g) procedures or programs for the improved collection of delinquent taxes, excises, user fees and other municipal accounts receivable. All statements, reports, summaries or other financial information produced pursuant to the foregoing requirements shall be submitted to the mayor, board of aldermen and the city auditor/finance director, and upon a request therefor to the commissioner of revenue.
In the event that the remedial plan adopted by said city of Beverly fails to receive the commissioner of revenue's approval, or a plan approved by the commissioner is not adhered to, whether in whole or in part, or its financial objectives or goals are not achieved, such failure in and of itself shall be a sufficient basis for the commissioner to deny or suspend approval of any amortization or deduction authorized under this act. Notwithstanding the foregoing, an approved and accepted remedial plan may be altered, amended or changed by said city of Beverly provided that said commissioner of revenue approves each alteration, amendment or change.
Except as is expressly provided for herein, this act shall not authorize or permit any alteration in the maintenance of said city of Beverly's accounts nor in the procedures whereby the assessors annually determine the amount of taxes to be assessed.
The commissioner of revenue is further authorized to require, as a condition of his annual approval of the amortization and deductions as are provided for herein, that the city of Beverly:
(a) submit for said commissioner's review a copy of the proposed annual budget document as well as any supplemental appropriation orders as may from time to time be made. The commissioner may further require that the city of Beverly incorporate in such annual budget document and supplemental appropriation orders such specific expenditure, revenue or other financial information as he deems reasonable or useful to ensure a balanced annual budget and promote fiscal stability in said city of Beverly.
(b) submit to said commissioner within three days of its enactment, or such longer time period as is approved by said commissioner, a certified copy of the annual appropriation order, together with an annual revenue budget for the year and a statement of all expenditures and liabilities for the year that will not be raised within the annual appropriation order. The aforementioned annual revenue budget and statement of expenditures and liabilities shall be in such form and detail as is prescribed by said commissioner and shall be approved by the mayor and by vote of the board of aldermen of the city. Said city of Beverly shall submit with the annual appropriation order a detailed summary, with such specificity as said commissioner may require, of all personnel positions authorized or funded by the annual appropriation order.
(c) during fiscal years nineteen hundred and ninety-four and nineteen hundred and ninety-five, by action of the city auditor/finance director, produce within thirty days of the conclusion of each month or such other time period as the commissioner deems appropriate, a report comparing the projected and budgeted revenues and appropriations for such month to actual receipts and expenditures for such month. Each such monthly report shall be in the form and detail prescribed by said commissioner, shall be certified by the city auditor/finance director, and shall be submitted to the mayor and board of aldermen. Within three days of a request therefor, a copy of such report shall be transmitted by said city auditor/finance director to said commissioner of revenue.
SECTION 2. In the event that the commissioner of revenue determines that as a result of unanticipated or extraordinary developments the city of Beverly will not be able to implement all the initiatives, actions and proposals included in the approved remedial plan, eliminate all accrued deficits, and achieve fiscal stability within the three year remedial period without impairing the ability of the city to continue to provide essential public safety and other fundamental governmental services, said commissioner may, upon such terms and conditions as he deems appropriate, allow for the extension of the remedial plan and amortization period as provided for in this act for a period not to exceed one year. In the event that the remedial plan and amortization period is extended, all provisions of this act and powers, duties, rights, obligations and requirements arising thereunder shall, so far as apt, remain fully effective for the period of the extension.
SECTION 3. The city of Beverly shall submit to the commissioner of revenue, in accordance with the schedule prescribed below, a copy of an annual audit report completed by an independent certified public accounting firm selected by said city of Beverly and approved by said commissioner: for fiscal year nineteen hundred and ninety-two, within fourteen days of the effective date of this act or such other date as is approved by said commissioner; for fiscal year nineteen hundred and ninety-three, and fiscal years thereafter that are included within the approved remedial plan provided for in this act or a duly approved extension thereof, by December fifteenth immediately succeeding the conclusion of the fiscal year. Such annual audit report shall include such statements, reports and analysis as said commissioner may prescribe. For cause shown, the commissioner of revenue may extend the aforementioned deadlines. The failure of said city of Beverly to timely submit the aforementioned annual audit reports shall be sufficient cause for the commissioner to deny or suspend approval of any deduction or continued amortization as is authorized by this act.
SECTION 4. In each fiscal year, commencing with fiscal year nineteen hundred and ninety-three, the board of aldermen of the city of Beverly, within sixty days of the issuance of the final audit report for the preceding fiscal year completed in accordance with the provisions of section three of this act, shall conduct a public hearing on the findings and recommendations of the independent auditor. The mayor of said city of Beverly, the city auditor/finance director, a representative of the independent auditor and such other financial officers or city officials as the board of aldermen shall require shall attend such public hearing.
Within thirty days of the issuance of the aforementioned audit report, said city auditor/finance director shall make available and maintain for public inspection in the office of said city auditor/finance director copies of the aforementioned audit report. Within the same thirty day period, said city auditor/finance director shall provide copies of the aforementioned audit report to the city clerk. If provided for by city ordinance, said city auditor/finance director shall make copies of such audit report available for public distribution for such charge as is prescribed by such ordinance.
SECTION 5. During the term of the approved remedial plan as provided for in this act, or a duly authorized extension thereof, no personnel appointment, re-appointment, re-classification, transfer, promotion, replacement, substitution or other employment action by the city of Beverly after the adoption of the annual budget shall become effective until approved by the board of aldermen and ratified by the commissioner of revenue; or in the case of any of the aforementioned employment actions relating to a position under the authority and control of the school committee, until approved by the school committee and ratified by said commissioner. As a condition of any such ratification, said commissioner may require such information and documentation as he shall deem appropriate to demonstrate that adequate financial resources are available to fund such appointment, re-appointment, re-classification, transfer, promotion, replacement, substitution or other employment action and the application of such financial resources will not impair the ability of the city to implement the approved remedial plan, eliminate deficits and restore fiscal stability in said city of Beverly.
SECTION 6. The city of Beverly, in or with respect to fiscal years nineteen hundred and ninety-three, nineteen hundred and ninety-four or nineteen hundred and ninety-five, shall issue no temporary loan in anticipation of taxes or revenue under authority of section four of chapter forty-four of the General Laws or any other similar provision of special law without prior written approval of the commissioner of revenue.
SECTION 7. This act shall take effect upon its passage.