(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, supplemental distributions of funds generated by the EDIT tax, or any other revenue source not prohibited to be transferred by law, whenever the purpose of such levy or fund has been fulfilled and an unused and unencumbered balance remains.
(B) Purposes of the Fund. The funds on deposit in the Rainy Day Fund may be used for the operation of the town including expenditures for salaries and wages, costs of services, cost of supplies, cost of equipment, contractual costs, capital improvements, repairs and similar expenditures.
(C) Transfer to Fund. On or before December 31 of each year, the Town Council shall determine the amount, if any, of any unused and unencumbered 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 monies.
(Ord. 2004-2, passed 2-25-2004; Ord. 2004-10, passed 7-14-2004)