Bill > S1992

This bill authorizes the town of Milton to create a "Special Purpose Stabilization Fund" to manage costs associated with future debt for certain town capital projects. This fund is specifically designed to help cover debt service obligations, which are the payments of principal and interest on borrowed money, for projects that are exempt from the limitations imposed by Proposition 2½, a state law that restricts how much local governments can increase property taxes. The bill outlines how money will be deposited into this fund: if the town's future debt payments for these exempt projects are less than what they were in Fiscal Year 2016, the difference will go into the fund. Conversely, if future debt payments exceed the Fiscal Year 2016 amount, the fund will be used to cover the difference. The money in the fund can only be spent on replacing, substantially restoring, or improving three town fire stations and the Department of Public Works facilities, provided these projects are approved by town meeting and their debt service is also excluded from Proposition 2½ limits, with a cap of $50 million for the principal amount of debt payable from the fund. The total balance in the fund cannot exceed 2.5% of the town's annual operating budget. Funding for the stabilization fund will stop when it has enough money to cover any future debt payments that exceed the Fiscal Year 2016 amount, and the fund will be closed when its balance reaches zero.