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Session Law

2004

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Chapter 451 AN ACT ESTABLISHING A CAPITAL DEPRECIATION FUND IN THE TOWN OF PAXTON.

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. The town of Paxton may create and maintain a special fund to be known as the Capital Depreciation Fund. The town of Paxton may appropriate by a majority vote at an annual or special town meeting in any year such amount as it deems appropriate to the Capital Depreciation Fund. If the budget for the town of Paxton for any fiscal year, as approved at an annual or special town meeting, contains an item entitled "Capital Depreciation Fund", then the dollar amount designated for such item shall be deemed to be a specific appropriation to the Capital Depreciation Fund and may not thereafter be expanded, except in accordance with section 2. The treasurer of the town of Paxton shall be the custodian of the fund and may invest the proceeds by deposit in savings banks, co-operative banks or trust companies organized under the laws of the commonwealth or invest the same in such securities as are legal for the investment funds of saving banks under laws of the commonwealth or in federal savings and loan associations situated in the commonwealth. Any interest or earnings resulting from the investments shall be added to and become a part of the fund.

SECTION 2. The Capital Depreciation Fund may be appropriated at an annual or special town meeting by a majority vote only for renewals in excess of ordinary repairs, extensions, reconstruction and enlargements of, and additions to, the capital assets of the town of Paxton. So much of the fund as the town may from time to time approve at an annual or special town meeting may also be used to pay notes, bonds or certificates of indebtedness, issued to pay the cost of such renewals, in excess of ordinary repairs, replacements, extensions, reconstructions, enlargements, and additions to the capital assets of the town when such notes, bonds or certificates of indebtedness become due.

Approved December 30, 2004.

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