10/18/2010 Annual Town Meeting - Laserfiche WebLink

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I I . approve the new Section 6-24, but caution the Town that it must also comply with G.L. y c. 40, § 5B, and c. 44, § 53. General Laws Chapter 44, Section 53,provides that "[a]ll moneys received by a w `� city, town or district officer or department, except as otherwise provided by special acts and except fees provided for by statute, shall be paid by such officers or department upon i their receipt into the city, town or district treasury." Under G.L. c. 44, § 53 all moneys received by the Town become a part of the Town's general fund, unless the Legislature has expressly made other provisions that are applicable to such receipt. In the absence of any general or special law to the contrary, Town funds must be deposited with the Town Treasurer and made part of the Town's general fund. General Laws Chapter 40, Section 5B, is one such statute which authorizes a Town to deposit money into an account separate from the general fund. Section 5B provides as follows: For the purpose of creating 1 or more stabilization funds, cities,towns and districts may appropriate in any year an amount not exceeding, in the aggregate, 10 per cent of the amount raised in the preceding fiscal year by taxation of real estate and tangible personal property or such larger amount as may be approved y. by the director of accounts. The aggregate amount in such funds at any time shall not exceed 10 percent of the equalized valuation of the city or town as defined in section 1 of chapter 44. Any interest shall be added to and become part of the fund. At the time of creating any such fund the city, town or district shall specify, and at any later time may alter, the purpose of the fund, which may be for any lawful purpose, including without limitation an approved school project under chapter 70B or any other purpose for which the city,town or district may lawfully P! borrow money. Such specification and any such alteration of purpose, and any appropriation of funds into or out of any such fund, shall be approved by two- I thirds vote, except as provided in paragraph(g) of section 2 1 C of chapter 59 for a majority referendum vote. Subject to said section 21C, in a town or district any �! •� f such vote shall be taken at an annual or special town meeting, and in a city any such vote shall be taken by city council. I General Laws Chapter 40, Section 5B, authorizes Towns to establish, by a two- ,i thirds vote, one or more stabilization funds for different purposes and may appropriate into them in any year an amount not to exceed ten percent of the prior year's tax levy. 1` Section 5B provides that at the time of creating any such fund, or at any later time, the Town may alter the purpose of the fund, which may be for any lawful purpose. Thus, ' I G.L. c. 40, § 5B, authorizes the use of stabilization funds for"any lawful purpose." We suggest the Town consult with Town Counsel and the Department of Revenue, Division of Local Services on this issue. i I Articles 9 and 11 - We remind the Town that we returned with the approval of this Office the amendments to the Town by-laws adopted under these Articles in a letter dated January 31,2011. 2 l `! I