Session Laws

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 first paragraph of section 1 of chapter 41 of the acts of 1990 is hereby amended by striking out, in line 6, the word "five" and inserting in place thereof the word:- ten.

SECTION 2. The second paragraph of said section 1 of said chapter 41 is hereby amended by striking out the second sentence and inserting in place thereof the following sentence:- Under the conditions imposed herein, the assessors of the city of Lawrence may similarly deduct for each fiscal year from fiscal year nineteen hundred and ninety-one to fiscal year two thousand, inclusive, a percentage of the amortization amount not greater than those shown in the following table from the amount to be assessed for each respective fiscal year pursuant to section twenty-three of chapter fifty-nine of the General Laws: `tuc FISCAL YEAR PERCENTAGE 1991 20 1992 20 1993 7.5 1994 7.5 1995 7.5 1996 7.5 1997 7.5 1998 7.5 1999 7.5 2000 7.5

SECTION 3. The fourth paragraph of said section 1 of said chapter 41 is hereby amended by striking out, in line 2, the words "nineteen hundred and ninety-four" and inserting in place thereof the following words:- two thousand.

SECTION 4. Said chapter 41 is hereby further amended by inserting after section 1 the following four sections:-

Section 1A. Notwithstanding the provisions of any general or special law, city charter provision, or local ordinance to the contrary, the city of Lawrence is hereby authorized to borrow, at one time or from time to time, such sums as are first approved by the mayor and the city council by majority vote of all the members of the city council, and thereafter deemed appropriate by the fiscal oversight board to maintain and operate the city while it adjusts the level of its expenses and revenues so as to achieve balanced budgets and fiscal stability; provided however that the fiscal oversight board shall have authority hereunder to limit such borrowing to an amount or amounts less than the total amount or amounts approved by the mayor and city council. Bonds or notes issued under authority of this act for operating purposes may be issued for a term not in excess of ten years and shall be backed by the full faith and credit of the city of Lawrence; provided however that notwithstanding the term of such bonds or notes, such bonds or notes shall be eligible to be issued as qualified bonds pursuant to the Qualified Bond Act under chapter forty-four A of the General Laws.

Section 1B. All proceeds of any loan authorized by section one A 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 Lawrence Fiscal Stability Fund, hereinafter referred to as the fund. The mayor, with the approval of the city council and the city of Lawrence fiscal oversight board as established by section two, may authorize disbursements from the fund for such operating purposes as the mayor deems appropriate to maintain and continue city operations. If the fiscal oversight board so votes, funds borrowed for operating purposes may be applied, with the approval of the director of accounts, as general revenue for purposes of section twenty-three of chapter fifty-nine of the General Laws. The fiscal oversight board may establish such rules and procedures as it deems appropriate relating to disbursements from the fund and the reporting and accounting therefor.

Section 1C. Notwithstanding the provisions of sections five and nine of chapter seven hundred and fifty of the acts of nineteen hundred and sixty-eight or any other special or general law to the contrary, the city of Lawrence is hereby authorized to borrow for a period not to exceed five years an amount not to exceed one million seven hundred and seventy-one thousand dollars in order to pay to the Greater Lawrence Sanitary District those portions of the city's assessments from the district for the fiscal years nineteen hundred and ninety-one and nineteen hundred and ninety-two that have not been paid to the district, and to pay that portion of the city's fiscal nineteen hundred and ninety-three assessment from the district that is attributable to the district's capital costs.

Section 1D. The city of Lawrence shall raise in its tax rate and reserve for the payment of principal and interest on any debt issued under the authority of section one, until such reserve equals the sum of all remaining principal and interest payments on such debt, the amount by which its total assessment from the Greater Lawrence Sanitary District for any fiscal year beginning after June thirtieth, nineteen hundred and ninety-four is less than its total assessment for the fiscal year beginning July first, nineteen hundred and ninety-three.

SECTION 5. Said chapter 41 is hereby further amended by striking out section 4 and inserting in place thereof the following section:-

Section 4. Notwithstanding any general or special law, city charter provision, or local ordinance to the contrary, but subject to the provisions of section twenty-one C of chapter fifty-nine of the General Laws, the city of Lawrence shall establish a special reserve fund for extraordinary or unforeseen expenditures, which fund shall be denominated the "supplemental reserve fund to ensure fiscal stability." Such fund shall be separate and in addition to any amounts appropriated pursuant to the provisions of section five A of chapter forty of the General Laws.

Commencing with fiscal year nineteen hundred and ninety-three and for all fiscal years thereafter, prior to the date when the tax rate is fixed, the board of assessors shall include in the amounts to be raised pursuant to section twenty-three of chapter fifty-nine of the General Laws for such fiscal year an amount, the "supplemental reserve fund sum", as determined under the provisions herein, such amount to be certified to the board of assessors by the city auditor.

The supplemental reserve fund sum for fiscal year nineteen hundred and ninety-three shall be an amount equal to one-quarter of one percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-four shall be an amount equal to one-half of one percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-five shall be an amount equal to three-quarters of one percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-six shall be an amount equal to one percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year, and; the supplemental reserve fund sum for fiscal year nineteen hundred and ninety-seven and each subsequent fiscal year shall be an amount equal to one and one-half percent of the gross amount to be raised for the prior fiscal year for the general operating fund as appearing on the city's tax rate recapitulation for such prior year; provided, further that such amounts may be increased by penalty adjustments as provided for herein.

In each year the amount required to be raised for such special reserve fund may be reduced by the amount, if any, remaining in the reserve fund established for the preceding year after all expenditures have been made therefrom as herein authorized, and such remaining amount shall be retained in the special reserve fund provided for the then current fiscal year.

Transfers or expenditures may be made from the special reserve fund of any fiscal year during that fiscal year only and then only by the mayor with the approval of the city council, and provided further that if the fiscal oversight board continues in existence at the time of such transfer or expenditure, only with the approval of said board. Each such transfer or expenditure request by the mayor shall be accompanied by a written statement detailing the amount and the reason for such transfer or expenditure. Except for such transfers or expenditures as here above authorized, there shall be no other transfers or expenditures from such fund, nor shall there be any charges against such fund nor reductions in the amount of such fund.

If in any fiscal year subsequent to fiscal year nineteen hundred and ninety-two the special reserve fund as provided for herein is depleted by transfers or expenditures in excess of fifty percent of the amount certified for that year by the city auditor plus the amount of any penalty adjustment as provided for hereinafter, or if the city incurs net deficits with respect to such fiscal year in excess of fifty percent of the aforementioned amount, the special reserve fund requirement for the succeeding fiscal year shall be increased by one quarter of one percent of the gross amount to be raised for the year with respect to which the use of the reserve fund or the deficits were incurred as the case may be. Such percentage increase shall be of a permanent nature and be fully effective with respect to the special reserve fund requirements of all succeeding fiscal years, except as provided for hereinafter; provided further, however, that if such penalty adjustment increase shall be made for fiscal years nineteen hundred and ninety-four, nineteen hundred and ninety-five, nineteen hundred and ninety-six, or nineteen hundred and ninety-seven, it shall be in addition to the percentage increase in the reserve fund provided for hereinabove. In no event, however, may the special reserve fund requirement for any fiscal year exceed five percent of the gross amount to be raised of the prior fiscal year as appearing on the city's tax rate recapitulation of said prior fiscal year. All amounts required by this act to be raised for each fiscal year shall be certified to the board of assessors by the city auditor prior to the establishment of the tax rate for the then current fiscal year.

Notwithstanding the foregoing, the city council, acting upon the recommendation of the mayor, with the approval of the commissioner of revenue, may for any fiscal year commencing with fiscal year nineteen hundred and ninety-seven reduce the amount otherwise required to be raised for the special reserve fund by one quarter of one percent of the gross amount to be raised of the prior fiscal year as appearing on the city's tax rate recapitulation of said prior fiscal year, which percentage decrease shall be of a permanent nature and fully effective with respect to the special reserve fund requirements of all succeeding fiscal years; provided, however, that such decrease shall not reduce the fund below one and one-half percent of the gross amount to be raised of the prior fiscal year as appearing on the city's tax rate recapitulation of said prior fiscal year; and provided, further, that such reduction, if any shall not work to eliminate or modify such subsequent penalty adjustments as may arise under the provisions hereinabove. While the fiscal oversight board remains in existence, such board, to the extent it deems it appropriate to effectuate the purposes of this act, may waive in part or in whole the requirement of this section.

It is further provided hereby that any penalties incurred in fiscal years nineteen hundred and ninety-one and nineteen hundred and ninety-two due to the use of the fiscal nineteen hundred and ninety-one reserve and the lack of funding of a reserve in fiscal nineteen hundred and ninety-two are hereby permanently waived.

SECTION 6. This act shall take effect upon its passage.