A. In accordance with SDCL 9-21-31, there is hereby established in the city of Custer, a capital replacement reserve fund, not to exceed two hundred fifty thousand dollars ($250,000.00).
B. The Custer City finance officer shall determine the amount to be credited to said reserve fund by crediting fifty (50) percent of the end-of-year undesignated fund balance increase that would traditionally return to the general fund to the capital replacement reserve fund.
C. Said fund shall only be utilized for replacement of major equipment, and any purchase from this fund shall only be utilized for an asset or equipment costing more than thirty thousand dollars ($30,000.00). (Ord. 722, 2012; Ord. 540, 2001)