(A) Creation of 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 of the town whenever the purpose of such tax levy has been fulfilled and an unused and unencumbered balance remains.
(B) Purposes of Fund. The funds on deposit in the Rainy Day Fund may be used solely for the operation of the town and its various departments, if the town is without sufficient levies or funds to pay such costs, including, but not limited to, salaries and wages, costs of services, supplies, equipment, capital improvements, repairs, and similar expenditures.
(C) Transfers to Fund. On or before December 31 of each year, the Clerk-Treasurer shall transfer the unused and unencumbered funds remaining from the general or special tax levy to the Rainy Day Fund. In any fiscal year, such transfer may not exceed 10% of the town’s total budget for that fiscal year.
(D) Appropriations from Fund. The Town Council may authorize the expenditure of funds from the Rainy Day Fund by appropriations made in the same manner as other funds that receive tax monies upon making a finding that the proposed use of the funds is consistent with the intent of the fund.
(E) Nonreverting fund. Monies deposited in the Rainy Day Fund shall not revert to other funds unless the Rainy Day Fund is terminated by ordinance of the Town Council. In the event that the Rainy Day Fund is terminated, any monies in the Rainy Day Fund are to be transferred by the City Controller to the General Fund.
(Ord. 2004-01, passed 1-6-2004)