The Town Council establishes such an Equipment Replacement Fund.
(A) Title. This Fund shall be known as the Equipment Replacement Fund of the town.
(B) Purpose. The purpose of this Fund is to ensure that sufficient funds are available when needed to replace outdated or worn out equipment.
(C) Included equipment. All equipment owned by the town with a replacement value in excess of $1,000 and/or a life expectancy of five years or more as listed in the Fixed Asset Account Group is included in this section.
(D) Funding. Each item of equipment in said Fixed Asset Account Group shall have a sum appropriated annually of not less than the replacement value of the item, divided by its life expectancy, until said life expectancy has expired.
(E) Disbursements. Disbursements from this Fund shall be used only for the purchase of replacement equipment and is subject to the same appropriation process as any fund receiving tax monies and shall not be used to reduce the actual or maximum permissible levy of the town and is therefore designated as a non-reverting fund.
(Ord. 3, 2004, passed 6-8-2004)