DEPARTMENT OF REVENUE
 DIVISION OF LOCAL SERVICES       TECHNICAL ASSISTANCE SECTION
 FOR MORE INFORMATION EMAIL: tacontact@dor.state.ma.us
 1) STATUTORY TREATMENT OF REVENUES:

 Statutory Treatment Of Municipal Revenues General Fund Revenues A fundamental principle of municipal finance in Massachusetts is that all revenue, received or collected from any source and by any department, belongs to a common pool referred to as the general fund. As such, it is unrestricted and available for expenditure for any lawful purpose after appropriation by town meeting, a town council or city council. (M.G.L. Ch. 44 Sec. 53). Included is real and personal property taxes, excises, special assessments and betterments, unrestricted local aid, investment and rental income, voluntary and statutory payments in lieu of taxes and other local receipts not expressly dedicated by statute. Municipalities can only segregate money for specific purposes if authorized to do so by another general law or special act. Cities and towns cannot unilateraly decide to hold, earmark or set aside funds to finance a particular project or purchase, even if it intends to spend through an appropriation later. Anticipated general fund revenues for the fiscal year may be appropriated as the tax levy (raise and appropriate) until the tax rate is set. Collections during the year above the estimates used to set the rate are not ordinarily available for appropriation until after the close of the fiscal year and certification by the DOR Director of Accounts as part of the municipality's undesignated fund balance (free cash).

Templeton selectmen say they can receive an insurance reimbursement and just use it anyway they wish.

Jeff Bennett