(A) Creation of Rainy Day Fund. There is hereby established a "Rainy Day Fund" to receive transfers of unused and unencumbered funds raised by a general or special tax levy on taxable property within the town whenever the purpose of such tax levy has been fulfilled and an unused and unencumbered balance remains.
(B) Purposes of the fund. The fund on deposit in the Rainy Day Fund may be used for the operation of the town and its various departments, including, but not limited to, salaries and wages, costs of services, supplies, equipment, capital improvements, repairs and similar expenditures.
(C) Transfer to fund. Transfers to the Rainy Day Fund must be made between January 1, and before March 1 of each year. The Town Council shall determine the amount, if any, of any unused and encumbered funds available to be transferred to the Rainy Day Fund, which transfer may not exceed more than 10% of the town's total budget for that fiscal year.
(D) Appropriations. The Town Council may authorize the expenditure of funds from the Rainy Day Fund by appropriations made in the same manner as other funds are appropriated that receive tax moneys, upon making a finding that the proposed use of the funds is consistent with the intent of the fund.
(E) Effective date. This section shall be in full force and effect from and after the date of its passage by the Town Council.
(Ord. 04-004, passed 4-19-04)