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Establishing Article

Article that Established the Capital Investment Fund & Capital Committee

Adopted by Special Town Meeting
Article 2
May 17, 1997

ARTICLE 2.  To see if the town will vote to petition the Great and General Court for passage of a Special Act for the town of Sterling substantially as follows:

An Act Establishing a Capital Investment Fund in the town of Sterling. Be it enacted by the senate and House of Representatives in General court assembled, and by the authority of the same as follows:

Section I

Notwithstanding the provisions of any general or special law to the contrary, the town of Sterling is hereby authorized to create and maintain a special fund to be known as the Capital Investment Fund.

The town of Sterling may appropriate to the Capital Investment Fund by a majority vote at an annual or special town meeting in any year an amount not exceeding ten percent (10%) of the amount raised in the preceding year by taxation of real estate and tangible personal property. The aggregate amount of the Capital Investment Fund at any time shall not exceed ten percent (10%) of the equalized valuation of the town of Sterling as defined in section one of Chapter forty-four of the General Laws. Any interest shall be added to and become a part of the fund.

The treasurer of the town of Sterling shall be the custodian of the Fund and may deposit the proceeds in national banks or invest the proceeds by deposit in savings banks, cooperative banks or trust companies organized under the laws of the Commonwealth or invest the same in such securities as are legal for the investment of funds of savings banks under the laws of the Commonwealth or in federal savings and loan associations situated in the Commonwealth. These funds shall be protected by an insured investment vehicle.

The Capital Investment Fund may be appropriated at an annual town meeting or a special meeting by a two-thirds vote. The Capital Investment Fund may be appropriated for any purpose for which the town of Sterling would be authorized to borrow money under sections seven or eight of Chapter forty-four of the General Laws, and to pay the debt service on any projects, including but not limited to the payment of capital improvement assessments by a regional school district. Any proposal for appropriation from the Capital Investment Fund must be submitted to the Capital Budget Committee established under section 2 of the Act, for their review at least one month prior to the town meeting at which they are to be considered; the Committee may make its recommendation at said town meeting.

Section 2

There shall be a Capital Budget Committee of the town of Sterling consisting of seven (7) voters of the town of Sterling, of whom at least four ( 4) shall be members of the Finance Committee of the town of Sterling. Said Board shall choose its own officers, set its own rules and shall serve without pay, except the clerk, who may receive reasonable compensation for his or her services. The clerk of said Board may or may not be a member of the Board.

The Capital Budget Committee of the town of Sterling shall be appointed jointly by the Moderator, Board of Selectmen and Finance Committee, each entity having one (1) vote. When the Board is first established, the terms of the members shall be for one, two and three years, and so arranged that the terms of approximately one-third of the members will expire each year, and their successor shall be appointed for terms of three years each. Said Board shall meet at the call of the moderator of the town of Sterling or of its chairman and shall choose its chairman and clerk. Jointly, the Moderator, Board of Selectmen and Finance Committee each only having one (1) vote shall forthwith fill by appointment any vacancies which occur in this membership and said appointee shall serve for the remainder of his or her predecessor's term of office.

The Capital Budget Committee shall consider matters relating to appropriations from the Capital Investment Fund and may, but is not required to, make recommendations to the town of Sterling or to any board, committee or official thereof, relative to such matters and establish policies relative to the funding of capital projects of the town of Sterling and set priorities and schedules for such capital projects.

Also that the town vote to transfer from certified free cash, the sum of $559,080, to be placed into this fund.