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I <br /> Massachusetts Department of Revenue Division of Local Services #��� <br /> AIanLeM g�issionerUera eny, eputycomm&wner <br /> K� <br /> December 6,2004 <br /> Colleen Wilkins <br /> Finance Director <br /> Town of Lincoln <br /> 16 Lincoln Road <br /> Lincoln MA 01773 <br /> Re: Community Preservation Act Borrowings <br /> Our File No.2004-464 <br /> Dear Ms. Wilkins: <br /> This responds to your letter about borrowings authorized under the Community <br /> Preservation Act(CPA). Specifically,you asked whether such borrowings are limited to <br /> amounts that can be repaid by future local surcharge revenues. <br /> The CPA authorizes communities to "issue ... general obligation bonds or notes in <br /> anticipation of revenue raised"by assessing a property tax surcharge. G.L. c.44B 911. <br /> In our opinion, the language"in anticipation" of surcharge revenue is intended by the <br /> legislature to limit the amount a community may borrow under c.44B for community <br /> preservation purposes. We do not think a community may issue such debt unless the annual <br /> debt service on that particular borrowing, and any previously authorized community <br /> preservation borrowings,can be accommodated within the annual surcharge revenues the <br /> community can reasonably anticipate raising over the borrowing term at that time. If for some <br /> unforeseen reason the monies raised from annual surcharges alone should later prove <br /> insufficient,however,the debt service is to be paid from any other fund monies available for <br /> that purpose. <br /> If you have any further questions,please do not hesitate to contact me again. <br /> Very truly yours, <br /> • Dan��iGiu <br /> J rpy <br /> h V <br /> Chief,Property Tax Bureau <br /> DJM:KC <br /> Post 0*e Box 9569,Boston,MA 02114-9569, Tel:617-626.2300;Fax 617.626-2330 <br /> 13 <br />