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. Notwithstanding section 53 of chapter 44 of the General Laws or any other general or special law to the contrary, the board of selectmen of the town of Needham may establish a special fund in the town treasury into which shall be deposited income derived from the investment of the proceeds of all notes and bonds issued for school building projects outlined in the town's facilities' master plan study dated September 27, 1999 and funded through a Proposition 2½ debt exclusion for the renovation, reconstruction, construction and original equipping of said town's school buildings. The town treasurer shall be the custodian of these monies and shall make an accounting of the funds to the board of selectmen. Except as allowed for in section 2, any amount in the special fund shall be applied solely to the payment of capital costs for the school building project that the money was borrowed for and no amount shall be spent on such project in excess of the amount appropriated without an additional appropriation by town meeting and upon authorization by the town treasurer.

SECTION 2. If, upon declaration of the town department or committee responsible for oversight of a project referenced herein that the project is completed, there remains a balance in the special fund attributable to that project, that balance shall be transferred to the General Fund of the town.

SECTION 3. This act shall take effect upon its passage.