from DOR/DLS.

DOR = Department of Revenue.

DLS = Division of Local Services.

Lastly, amendments in 2003 to Ch. 40, Sec 5b allow a municipality to establish special purpose stabilization funds and to build balances in them through a type of override,

which also has characteristics of a debt exclusion. Through initial approval, by two thirds vote, of town meeting (and the selectmen), a city council or a town council, a referendum can be placed before the voters asking whether to raise tax revenue, by

majority vote, above Proposition 2½ limits for the purpose of the stabilization fund. In succeeding years, solely through an annual vote of the selectmen, city council or town

council, the override can be continued, lowered or deferred entirely and resumed, or not, in a later year. Like an override, the additional tax can continue year-after-year without town-wide or city-wide referendum votes beyond the year of inception and, each

year, the amount available to be raised increases by 2½ percent. However, like an exclusion under Proposition 2½, the levy limit increase need not be permanent. It can be discontinued in any year.

MA general law chapter 40, section 5b: Section 5B. Cities, towns and districts may create 1 or more stabilization funds and appropriate any amount into the funds. Any interest shall be added to and become part of the fund.

At the time of creating any stabilization 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 pursuant to chapter 70B or any other purpose for which the city, town or district may lawfully borrow money. The specification and any alteration of purpose, and any appropriation of funds from any such fund, shall be approved by a two-thirds vote, except as provided in paragraph (g) of section 21C of chapter 59 for a majority referendum vote. Subject to said section 21C of said chapter 59, any such vote shall be of the legislative body of the city, town or district, subject to charter.

(Templeton does not have a charter)

If a question as aforesaid shall provide for assessing taxes for the purpose of funding a stabilization fund established pursuant to section 5B of chapter 40, the assessors shall in each successive fiscal year assess property taxes for the same purpose in an amount equal to 102.5 per cent of the amount assessed in the next preceding year in which additional taxes were assessed for such purpose, but only if the local appropriating authority votes by a 2/3 vote to appropriate such increased amount in such year for such purpose. The voters of the city or town, by majority vote at a referendum, may alter the purpose of a stabilization fund or authorize the assessment of such additional property taxes for another purpose. In any year in which the local appropriating authority does not vote to appropriate such amount as aforesaid, the total property tax levy for such year shall be reduced by the amount that could otherwise have been assessed, so that such additional taxes may not be assessed for any other purpose. The maximum levy limit under paragraph (f) shall not be affected by any such reduction in the levy for such year.