(a) There is hereby established a special revenue fund in the Town Treasury which shall be designated and known as the Town Sales and Use Tax Fund. The Town Sales and Use Tax Fund shall consist of:
(1) All revenues received from collection of the town’s sales and use taxes, including any interest, additions to tax and penalties deposited with the Town of Nutter Fort;
(2) All appropriations to the fund;
(3) All interest earned from investment of the fund; and
(4) Any gifts, grants or contributions received and placed by the town into the Town Sales and Use Tax Fund.
(b) Revenues in the Town Sales and Use Tax Fund shall not be treated by any person to be a general revenue of the town. Revenues in the Town Sales and Use Tax Fund shall be disbursed in the manner and consistent with the priorities set forth for in subsection (c) below.
(c) Revenues in the Town Sales and Use Tax Fund shall be allocated by Town Council in accordance with the following priorities:
(1) First, to satisfy the debt service requirements and any prior debt service requirements deficit each fiscal year on, and to fund or replenish any required reserves in accordance with the bond documents for, any bonds or other obligations issued by, the Town of Nutter Fort, from time to time, including any refunding bonds, to finance or refinance infrastructure improvements or economic development projects or programs within the Town of Nutter Fort, including the funding or replenishing of any reserve funds relating to any such bonds or other obligations, and/or to make lease payments which repay the debt service or otherwise secure bonds or other obligations issued to finance or refinance infrastructure improvements or economic development projects and programs within the Town of Nutter Fort;
(2) Second, for capital expenditures including but not limited to infrastructure improvements with the Town of Nutter Fort;
(3) Third, to provide funding to assist with economic development projects and programs or providing the opportunity for tax incentives to help grow the town’s tax base and create jobs; and
(4) Fourth, any unencumbered revenue in the Town Sales and Use Tax Fund may periodically be transferred as necessary or convenient to the town’s General Revenue Account.
(Ord. 2020-04, passed 12-8-2020), Utilities and Public Services Code