M.G.L. c.44, §54E½, as most recently amended requires the Town to adopt a Revolving Fund Bylaw.
1. Purpose. This By-law establishes and authorizes revolving funds for use by the Town Departments, Boards, Committees, Agencies or Officers in connection with the operation of programs or activities that generate fees, charges or other receipts to support all or some of the expenses of those programs or activities. These revolving funds are established under and governed by Massachusetts General Laws Chapter 44, Section 53E½.
2. Expenditure Limitations. A Department or Agency head, Board, Committee or Officer may incur liabilities against and spend monies from a revolving fund established and authorized by this By-law without appropriations subject to the following limitations:
A. Fringe benefits of full-time employees subject to the following limitations, except for those employed as school bus drivers.
B. No liability shall be incurred in excess of the available balance of the fund.
C. The total amount spent during a fiscal year shall be subject to the limitation established by Town Meeting or any increase therein as may be authorized in accordance with M.G.L. c.44, §53E½.
D. Interest. Interest earned on monies credited to a revolving fund established by this By-law shall be credited to the general fund.
3. The following is a list of authorized revolving funds setting forth the name of the fund, the entity authorized to expend such funds, the revenue source and the use of such fund.