City of Lowell, MA Article II Financial Matters

§ 28-6 Keeping of books and accounts.

The City Auditor shall be the general accountant for the City. He shall keep a complete set of books and accounts which shall comprise all of the financial transactions of the City through the various departments under their respective appropriations.

§ 28-7 Auditor to receive copies of contracts.

Whenever a contract is made for work to be done, or articles and materials furnished for the City, a certified copy thereof shall be deposited with the City Auditor before any payment shall be made thereon, to the end that the City Auditor may see that the payments are made in accordance with the terms of the contract.

§ 28-8 Payment of claims against City.

Whenever a claim against the City is allowed by the City Council, the City Auditor shall charge the same to the proper appropriation and make his draft upon the City Treasurer in favor of such person or order, which draft shall state to what appropriation the City Auditor has charged such draft.

§ 28-9 Payment of court judgments and City notes and bonds.

The City Auditor is hereby directed to draw upon the City Treasurer for the payment of any final judgment of court, or any amount determined upon and adjusted by the City Council, and any City note, bond, coupon or interest which now is, or shall hereafter become, due and payable shall be paid by the Treasurer out of any money which may be in the treasury, appropriated or not appropriated at the time such judgment, adjustment or claim or pending suit, note, bond, coupon or interest shall become due.

§ 28-10 Payrolls.

A. The City Auditor is hereby authorized to allow for payment of all payrolls for wages required to be paid weekly and for all salaries fixed by ordinance, and all officers in charge of departments shall make up payrolls of all employees in their departments required to be paid weekly, as aforesaid, and shall deliver the payrolls to the City Auditor on such day as he shall designate. As soon as any payroll has been examined and approved by the City Auditor and any other board or person authorized by law, he shall immediately draw his draft upon the City Treasurer for payment, and when the payrolls are paid in full, they shall be returned to the City Auditor for his file.

B. All blanks for payrolls shall be made on single sheets of uniform length and width, and to ensure uniformity in all respects the blanks shall be in such form as may be approved by the City Auditor and they shall be examined and approved by the City Auditor and any other body authorized by statute or by ordinance and then transmitted to the City Treasurer for payment. After payments have been made, the payrolls shall be returned to the City Auditor to be filed by him in book form, consecutively by audits.

C. All amounts due on bills or payrolls shall be turned back to the credit of the department from which the money was drawn at such times as may be agreed upon by the City Treasurer and the City Auditor.

D. Subject to the approval of the chief executive officer of the City, the City Auditor shall install cost systems, payroll systems and such other systems of control as may be necessary for the proper economic control of all departments.[1]

[1] Editor's Note: Added at time of adoption of Code (see Ch. 1, General Provisions, Art. II).

§ 28-11 Demand for payment of due accounts.

The City Treasurer shall demand payment in writing of all accounts due the City, and in case any such account remains unpaid at the expiration of two months after such demand, the City Treasurer shall report the same to the City Solicitor, who shall resort to the proper legal methods of collection.

§ 28-12 Due date on bills; interest on unpaid bills.

[Added 2-2-1999]

All bills for municipal charges and bills due to the City shall be due and payable to the City not later than the due date set forth on said bills. Unless otherwise established by Massachusetts General Laws, the due date shall be not more than 30 days after the invoice date of said bill. Any such charges and bills not paid in full to the City by the due date shall bear interest thereafter on the unpaid principal balance at the rate of 14% per annum. Any partial payment shall be first applied to any outstanding interest and then to the outstanding principal balance of said bill.

§ 28-13 Cemetery funds.

A. Cemetery Fund for Perpetual Care of Lots. The City Treasurer shall receive and have the care and custody of all sums of money paid by persons for the perpetual care of lots in any of the City cemeteries and give the vouchers of the City therefor. The money received shall constitute a special fund to be known as the "Cemetery Fund for Perpetual Care of Lots." He shall invest the money of this fund in securities in which, by law, the funds of savings banks may be invested and pay the amount of interest realized into the City treasury. He shall notify, when occasion requires, the Cemetery Commission of all such payments so made on account of lots and graves, together with the description of the lots and graves for which such payments are made. He shall annually, or at such times as the Cemetery Commission shall request, put in the perpetual care income fund the amount of interest received by him from the investment of the money.[1]

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II).

B. Payments to Cemeteries Fund. Whenever payment of money is required to be made by the City Treasurer from the general treasury fund of the City to the credit of the Cemeteries Fund of the City, the City Auditor shall sign and issue warrants upon the City Treasurer authorizing the payment of such money that may be required to be made to the Cemeteries Fund, provided that such sums for which warrants are required to be signed and issued by the City Auditor shall have been already paid into the general treasury fund of the City.

§ 28-14 Uncollected bills.

Upon application, the City Treasurer shall furnish the City Auditor with a certificate of the amount of all bills uncollected, with a statement of the accounts to which they are to be credited when paid; and all officers and departments, when so requested by the City Auditor, shall furnish a statement in detail of all accounts deposited with the City Treasurer for collection.

§ 28-15 Payments to be authorized.

Before the issuing of any order on the Treasurer for the payment of any money from the City treasury, a resolution, ordinance, order or vote authorizing or directing such payment and bearing the official signature of the City Clerk shall be filed with the City Auditor and the City Treasurer.

§ 28-16 Register of notes, bonds and other obligations.

The City Treasurer shall prepare a register of the number, date, amount, day of payment and rate of interest of every City note, bond or other obligation outstanding, which register shall be placed in the custody of the City Auditor, and whenever any note, bond or other obligation of the City shall hereafter be issued, the City Treasurer shall present the same to the City Auditor, who shall record in such register all the particulars stated above and shall certify, upon the note, bond or obligation, that it has been duly registered. Whenever any City note, bond or other obligation shall be paid or canceled, the City Treasurer shall immediately exhibit the same to the City Auditor, who shall thereupon record in the register that such payment or cancellation has been made. Every person paying a property tax in this City shall have a right to inspect the register of the City debt.

§ 28-17 Certificates of bills deposited and licenses issued.

A. All officers and departments required to deposit bills with the City Treasurer for collection or to issue licenses upon the payment of fees to the City Treasurer shall file with the City Auditor a certificate of the total amount of all bills to be deposited and of licenses so issued, with a statement of the accounts to which the same should be credited when paid.

B. All officers and departments required by law to pay fees or money received by them to the City Treasurer shall file with the City Auditor certificates of the amounts to be paid to the City Treasurer, with a statement of the sources from which the fees or money was received.

§ 28-18 Certificates of taxes assessed.

The Board of Assessors shall file with the City Auditor certificates of the amount of all taxes assessed by it whenever the same shall be certified to the City Treasurer for collection.

§ 28-19 Abatement of taxes.

A. Certificate. Upon the abatement of any unpaid tax, the Board of Assessors shall make duplicate certificates thereof and of the amount so abated and shall thereupon deliver one of the certificates to the City Treasurer as Collector of Taxes, who has in his hands for collection the tax so abated, and one to the City Auditor, and the sum so abated and certified shall be credited to the City Treasurer in the settlement of his accounts.

B. Refund of previously paid taxes. If an abated tax has been previously paid into the City treasury, a like certificate from the Board of Assessors to the City Auditor shall be sufficient warrant for the City Auditor to draw his order on the City Treasurer for the amount so abated and certified, to the person in whose favor the certificate shall be drawn.

§ 28-20 Form of bills.

All bills for labor, material and also assessments, except taxes, shall be made in triplicate form, the original and duplicate to be left with the City Auditor with a list of the same bill books and lists to be furnished by the City Auditor, the triplicate to be retained by the department issuing the bill. The City Auditor shall record such bills and give them to the City Treasurer and charge him with the collection of the same.

§ 28-21 Requisitions.

[Amended 9-9-2008]

All requisitions for material and supplies in the amount of $100 or more shall be presented to the Auditor's Department for approval before the final order is given to furnish the same. Such requisition shall show the total amount of the contract and the departments to be supplied. No requisition shall be approved by the Auditor unless the appropriation is sufficient to cover the same.

§ 28-22 Council to have access to records.

A. The City Council shall have access to all or any of the records and official papers of the City and shall have power to require from any officer or employee of the City such additional statement or statements relating to the expenditures and revenues of the City as it may deem essential and summon any officer or employee of the City to be present at any designated meeting of the City Council.

B. All departments and officers of the City government shall keep and furnish such records, in book form or otherwise, as shall be prescribed by the City Treasurer and City Auditor.

§ 28-23 Remittance of funds to City Treasurer.

Each department and officer receiving money for the City shall remit to the City Treasurer once a week all money that may be in the possession of such department or officer belonging to the City, except in such cases where the time for payment to the City Treasurer is prescribed by statute.

§ 28-24 Submission of bills.

All bills rendered the City through the various departments shall be presented to the City Auditor not later than the 13th day of each month, except where there are agreements relative to the allowance of discounts, in consideration of payments to be made weekly or semimonthly, and in such cases bills shall be submitted within such time and in the manner as determined by the Auditor.

§ 28-25 Date for payment of bills against City.

The payment of all bills against the City shall be on the 20th day of each month.

§ 28-26 Submission of annual inventory to Council.

The City Auditor shall annually present to the City Council a schedule of all the real estate of the City, also a summary of the inventories of departments, giving the valuation of all the personal property belonging to the City, which may be in the custody of any officer or agent of the City, and for this purpose every officer of the City, or other person in whose control or custody any such property may be, is hereby required to present to the City Auditor, on or before the first Monday in February in each year, a detailed inventory of all of such property, giving the items and valuation thereof.

§ 28-27 Annual report of City Auditor.

The City Auditor shall, in each year, as soon as possible, present to the City Council a printed report of the receipt and expenditures of the preceding fiscal year, giving in detail the amount of appropriations and expenditures for each specific object.

§ 28-28 Exchange or replacement of bonds, notes or certificates.

A. The City Treasurer may, in accordance with the provisions of MGL c. 107, § 4, at the request of the owner or holder of any bond, promissory note or certificate of indebtedness of the City, at any time while more than one year remains before the principal of such bond, note or certificate is payable, issue in exchange therefor a bond, note or certificate of the same effect, payable to the owner or holder of the same.

B. The City Treasurer may also, under like conditions, issue registered certificates in substitution for any mutilated, defaced or endorsed bonds, notes or certificates, and where a bond, note or certificate of any issue has been lost or destroyed the City Treasurer may issue in place thereof a new bond, note or certificate of the same effect.

C. The City Auditor, as well as the City Treasurer, shall keep a register of the dates, numbers and amounts of all bonds, notes and certificates issued by the City Treasurer, showing to whom they were issued, when they are payable, and, if issued in exchange, for what they were substituted.

§ 28-29 Depositories of City funds.

The City Treasurer and Collector of Taxes of the City shall, unless otherwise provided by statute, deposit or cause to be deposited all revenues and all money accruing to the City from any source whatever, except trust funds, in national banks and trust companies. No deposit shall be made or caused to be made in any such national banks and trust companies to an amount exceeding 60% of the capital and surplus of any such bank or trust company unless satisfactory security is given to the City Treasurer and Collector of Taxes for the City by any of such banks or trust companies for such deposits in excess of 60%.

§ 28-30 Approval of bills by officers and employees. [1]

Compliance with § 28-36 of this chapter is required.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II).

§ 28-31 Massachusetts Brownfields Act; tax agreements.

[Added 8-10-1999]

The City of Lowell is authorized, pursuant to MGL c. 59, § 59A, as amended, which was accepted by vote of the City Council on July 13, 1999, to enter into agreements regarding payment or abatements of real estate taxes and/or interest and/or penalties relative to sites or portions of sites within the City of Lowell from or at which there has been a release of oil or hazardous materials. The following are necessary conditions and components of any such agreement:

A. The site or a portion thereof must be one from or at which there has been a contaminated release of oil or hazardous material;

B. The site or portion thereof is zoned for commercial or industrial uses;

C. The agreement must be for the purpose of environmental cleanup and redevelopment of such site and shall require submission of any plans to address such;

D. The agreement must provide:

(1) The principal amount due of outstanding taxes, interest and penalties, before abatement of any amount thereof;

(2) The amount of taxes, interest and penalties to be abated, if any;

(3) The net amount of taxes, interest and penalties due after abatement;

(4) The percent of interest to accrue, if determined applicable;

(5) The inception date of payment;

(6) The date of final payment; and

(7) Late penalties and other terms of repayment;

E. Agreements can only be made with an eligible owner as defined under MGL c. 21E, § 2. Eligible owners are new, "innocent" purchasers who did not own the site at the time the oil or hazardous material was released and did not cause or contribute to its release;

F. Such agreements shall be negotiated by the City Manager (with the assistance of the Manager's various departmental staff members), the City Treasurer and the Board of Assessors;

G. Such agreements shall be subject to the approval vote of the City Council;

H. Such agreements, as required by said MGL c. 59, § 59A, shall be signed by the eligible property owner and the Mayor (as Chairperson of the City Council);

I. Such agreements shall also be signed by the City Manager and approved as to form by the City Solicitor;

J. Such agreements shall be notarized and attested to by the City Clerk;

K. Such agreements shall contain any other provisions as may be required by law, ordinance or regulation of the Department of Revenue;

L. In the event that any such agreement reduces the tax to be paid, abatements must be processed and charged to the overlays for the fiscal years of the taxes abated; and

M. Copies of the executed agreement shall be provided to the eligible property owner, the City Manager, City Council, City Treasurer, and the following state and federal agencies: Massachusetts Commissioner of Revenue, Massachusetts Department of Revenue (Property Tax Bureau), Massachusetts Department of Environmental Protection and United States Environmental Protection Agency.

§ 28-31.1 Revolving funds. [1]

[Added 6-12-2018]

The following revolving funds are hereby created and authorized by the Lowell City Council:

A. Property Maintenance Revolving Fund.

(1) Fund name: Property Maintenance.

(2) Revenues: The City Auditor shall establish the Property Maintenance Revolving Fund as a separate account and credit to the fund all fees charged to persons, organizations, or entities and received by the City of Lowell to rent or lease any property owned by the City of Lowell.

(3) Purposes and expenditures: During each fiscal year, the Assistant City Manager/Director of Planning and Development, Chief Financial Officer, or his/her designee may incur liabilities against and spend monies from the Property Maintenance Revolving Fund for contractual services to operate, maintain, or improve property owned by the City of Lowell. Salaries or wages of employees shall not be paid from the fund.

(4) Fiscal years: The Property Maintenance Revolving Fund shall operate for fiscal years that begin on or after July 1, 2018.

B. Vacant/Foreclosed Property Revolving Fund.

(1) Fund name: Vacant/Foreclosed Property Revolving Fund.

(2) Revenues: The City Auditor shall establish the Vacant/Foreclosed Property Revolving Fund as a separate account and credit to the fund all fees, fines, and/or penalties charged to persons, organizations, or entities and received by the City of Lowell's Division of Development Services in the Department of Planning and Development ("the Department") for properties in the City of Lowell registered with the Department as vacant and/or foreclosed pursuant to Chapter 227, §§ 227-7 through 227-16, of the Code of Ordinances.

(3) Purposes and expenditures: During each fiscal year, the Assistant City Manager/DPD director, Chief Financial Officer, or his/her designee may incur liabilities against and spend monies from the Vacant/Foreclosed Property Revolving Fund for contractual services to maintain any property registered with the Department as vacant and/or foreclosed pursuant to Chapter 227, §§ 227-7 through 227-16, of the Code of Ordinances, subject to the following limitations:

(a) Fringe benefits of full-time employees whose salaries or wages are paid from the fund shall also be paid from the fund.

(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 not exceed the amount authorized by the Lowell City Council on or before July 1 of that fiscal year, or any increased amount of that authorization that is later approved during that fiscal year recommended by the City Manager and approved by the City Council.

(4) Reports: Within 10 days of the end of each quarter of the fiscal year, the Director must provide the City Auditor and the Chief Financial Officer with a report of the revenues and expenditures of the Vacant/Foreclosed Property Revolving Fund during the month and fiscal year to date.

(5) Fiscal years: The Vacant/Foreclosed Property Revolving Fund shall operate for fiscal years that begin on or after July 1, 2018.

C. Disability Commission Revolving Fund.

(1) Fund name: Disability Commission Revolving Fund.

(2) Revenues: The City Auditor shall establish the Disability Commission Revolving Fund as a separate account and credit to the fund all funds appropriated to the Disability Commission by the Lowell City Council.

(3) Purposes and expenditures: During each fiscal year, the City Treasurer, upon recommendation by the Chair of the Lowell Disability Commission and approval of the City's ADA coordinator and/or the Chief Financial Officer, may incur liabilities against and spend monies from the Disability Commission Revolving Fund to support accessibility projects in municipal facilities and property owned by the City of Lowell, as well as support the mission of the Lowell Disability Commission, subject to the following limitations:

(a) Salaries or wages shall not be paid from the fund.

(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 not exceed the amount authorized by the Lowell City Council on or before July 1 of that fiscal year, or any increased amount of that authorization that is later approved during that fiscal year recommended by the City Manager and approved by the City Council.

(4) Reports: Within 10 days of the end of each quarter of the fiscal year, the City Treasurer must provide the City Auditor and the Chief Financial Officer with a report of the revenues and expenditures of the Disability Commission Revolving Fund Revolving Fund during the month and fiscal year to date.

(5) Fiscal years: The Disability Commission Revolving Fund shall operate for fiscal years that begin on or after July 1, 2018.

D. Traffic Enforcement Revolving Fund.

(1) Fund name: Traffic Enforcement Revolving Fund.

(2) Revenues: The City Auditor shall establish the Traffic Enforcement Revolving Fund as a separate account and credit to the fund all funds appropriated to the Traffic Enforcement Revolving Fund by the Lowell City Council.

(3) Purposes and expenditures: During each fiscal year, the Superintendent of Police may incur liabilities against and spend monies from the Traffic Enforcement Revolving Fund, subject to the following limitations:

(a) Fringe benefits of full-time employees whose salaries or wages are paid from the fund shall also be paid from the fund.

(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 not exceed the amount authorized by the Lowell City Council on or before July 1 of that fiscal year, or any increased amount of that authorization that is later approved during that fiscal year recommended by the City Manager and approved by the City Council.

(4) Fiscal years: The Traffic Enforcement Revolving Fund shall operate for fiscal years that begin on or after July 1, 2018.

E. LPD Training Account Revolving Fund.

[Added 6-11-2019]

(1) Fund name: LPD Training Account.

(2) Revenues: The City Auditor shall establish the LPD Training Account Revolving Fund as a separate account and credit to the fund all fees charged to persons, organizations, or entities and received by the Lowell Police Department and the City of Lowell to provide training.

(3) Purposes and expenditures: During each fiscal year, the Superintendent of Police, Chief Financial Officer, or his/her designee may incur liabilities against and spend monies from the LPD Training Account Revolving Fund for equipment, supplies, instructor payment, facility and equipment upgrades as needed and other related costs to operate the LPD Training Facility. Salaries or wages of employees shall not be paid from the fund.

(4) Fiscal years: The LPD Training Account Revolving Fund shall operate for fiscal years that begin on or after July 1, 2019.

F. LPD Vehicle Maintenance Revolving Fund:

[Added 9-22-2020]

(1) Fund name: LPD Vehicle Maintenance Revolving Fund.

(2) Revenues: The City Auditor shall establish the Garage Repair/Service Vehicles Revolving Fund as a separate account and credit to the fund all fees charged to persons, organizations, or entities and received by the Lowell Police Department Detail Office and the City of Lowell to repair and or service police vehicles.

(3) Purposes and expenditures: During each fiscal year, the Lowell Police Department Fleet Maintenance Department incurs costs related to the upkeep of Lowell Police Department vehicles. As a result of these costs the Lowell Police Department Fleet Maintenance Department will spend monies from the Lowell Police Department Garage Repair/Service Vehicles Account for parts, supplies, technical advice, service and equipment. Salaries or wages of employees shall not be paid from the fund.

(4) Fiscal years: The Lowell Police Department Garage Repair/Service Vehicles Account Revolving Fund shall operate for fiscal years that begin on or after July 1, 2020.

G. (Reserved)

H. Contractor Performance Surety Revolving Fund.

[Added 1-2-2024]

(1) Fund name: Contractor Performance Surety Revolving Fund.

(2) Revenues: The City Auditor shall establish the Contractor Performance Surety Revolving Fund as a separate account and credit to the fund all monies paid to the City for the purpose of securing or accomplishing an express condition of any City permit, license, or City contract. The expressed condition shall be in writing and agreed upon by both the City and the permit/license applicant or contractor.

(3) Purposes and expenditures. During each fiscal year, the Commissioner of Public Works ("DPW Commissioner"), Chief Financial Officer ("CFO"), or his/her designee may incur liabilities against and spend monies from the Contractor Performance Surety Revolving Fund. Salaries or wages of employees shall not be paid from the fund.

(4) Fiscal years: The Contractor Performance Surety Revolving Fund shall operate for fiscal years that begin on or after July 1, 2023.

(5) Additional requirements and conditions.

(a) Payments to the fund shall be in the form of a check made payable to the City of Lowell.

(b) The City Treasurer shall keep such funds separate and apart from other City funds and invest such monies in the manner allowed by Massachusetts law. All investment earnings shall remain with the general fund. Further, in the event of a determination by a department head pursuant to the conditions set forth in this subsection, any interest earned on the investment of cash performance surety deposits by the Treasurer shall not inure to the applicant or contractor and shall also be credited to the general fund.

(c) The City department responsible for issuance of the permit, license, or contract shall determine if the permit obligation for which money has been deposited has been met. If such condition has been met or partially met, the City department shall confer with the Chief Financial Officer (CFO), and the CFO shall determine if any deposit or portion of the deposit shall be returned to the applicant.

(d) In circumstances where the applicant has defaulted on its obligation, the City department issuing the permit or in charge of the relevant City contract shall expend the deposit to complete the work or perform the permit obligation, without further appropriation by the City Council.

(e) In circumstances where the applicant and the department have mutually agreed in advance that the permit or contractual obligation shall be performed by the City, the department issuing the permit or in charge of the relevant City contract shall expend the monies to complete the work or perform the permit obligation without further appropriation by the City Council.

(f) Authorized City officials may incur liabilities against and spend monies from said revolving fund established and authorized by this subsection without appropriation subject to the following limitations:

[1] Fringe benefits of full-time employees shall not be paid from the fund.

[2] No liability shall be incurred in excess of the available balance of the fund.

[3] This subsection shall not apply to deposits or other financial surety received under Section 81U of Chapter 41 or other general or special law.

[1] Editor's Note: See also Article VI, Revolving Funds.