VOTED: that the Town, acting under the provisions of Article II of the Amendments to the Constitution of the Commonwealth of Massachusetts, commonly called the Home Rule Amendment, will adopt the following bylaw regarding a Water Department Revolving Fund in the Town of Concord.
Section 1.
The Town of Concord hereby establishes in the Town Treasury an individual revolving fund (hereinafter called “Water Fund”) for its Water Department (hereinafter called “Department”). All receipts of the Department shall be credited to the Water Fund. This Water Fund shall be kept separate from any other monies or funds of the Town, and shall be expended only for those purposes outlined below.
Section 2.
There shall be a fixed schedule of prices or rates established by the Public Works Commission acting as the Water Commissioners for water which shall not be changed more often than once each year. Changes in the rates shall not be made unless the proposed new rates are first published in newspapers in general circulation in Concord and considered at a public hearing held for this purpose. No price or rate in said schedule shall be fixed at less than production cost as it may be determined by the Town Manager and approved by the Water Commissioners. The schedules of prices and rates shall be established to yield a zero balance after the payment of all operation and maintenance expense, principal and interest on outstanding debt, and an accrued reserve for replacement not to exceed two percent (2%) of the cost of the plant per
annum. The cost of the plant will be determined by the Town Manager and approved by the Water Commissioners, and be based upon the actual capitalization of all land, structures, reservoirs, transmission systems, distribution systems, machinery and equipment, and all other classifications comprising the total department. If a surplus exists then the schedule of prices or rates will be revised to maintain a zero balance. The water used by the Town of Concord in its public buildings shall be charged for in accordance with the prices of the fixed schedules.
Section 3.
The income from sales, jobbing and the above mentioned appropriation shall be received by the Town Collector, and shall be used by the department to pay the annual expenses of the plant, to make payments on the indebtedness of the plant, and to set up the depreciation and sinking fund accounts which will be kept and managed as separate funds for reconstruction, renewals, extensions, improvements, major repairs, enlargements, additions or similar purposes. The general authority to manage and expend the fund for the ensuing year by the Town Manager will require approval by the Town at the annual Town Meeting. The accounting system to be used for keeping the department accounts will be the Uniform System of Accounts, prescribed by the Department of Public Utilities for private water companies, which will reflect on a monthly basis,
the status of all accounts and the financial position of the department.
Interest earned on monies raised by the issuance of bonds and notes in anticipation of receipt of state or federal grants shall be received by the Town Treasurer and credited to said fund to be expended in the same manner as other income of the fund.
Section 4.
Nothing in this act shall prevent the Town of Concord from appropriating funds for repairs, improvements, extensions or additions to the water system over and above those programmed under the revolving fund. These appropriations will be treated as special deposits on the department books and administered by the Town Manager for the specific purposes for which they were appropriated. Any balance after completion of the project will be returned to the General Fund by the department. Nothing in this act shall prevent the Town of Concord by a two-thirds (2/3) vote at an annual Town Meeting from transferring funds from the accumulated sinking fund of the department to reimburse the Town for funds which may be appropriated and used for department projects as outlined herein. The department is expressly allowed to accept
grants or gifts for department projects.
Section 5.
This bylaw shall take effect upon its acceptance by a majority vote of the qualified voters of the Town present and voting thereon at the annual Town Meeting or any special Town Meeting called for the purpose. The receipts of the department for the year in which this bylaw is accepted will be retained by the department and will constitute the working capital to establish the fund. This bylaw supersedes any bylaw which is in conflict to it.
Section 6.
If this bylaw is accepted, it may only be revoked by the Town by a majority vote of the qualified voters of the Town present and voting thereon at the annual or any special Town Meeting called for the purpose three years after the year in which the bylaw is accepted.
Article 38, Town Meeting, May 1974
Article 6, Town Meeting, April 1981
Article 36, Town Meeting, April 1985
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