(A) Creation of a rainy day fund. There is hereby established a Rainy Day Fund to receive transfers of unused and unencumbered moneys whenever the purposes of a tax levy have 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 municipality and its various departments when the town does not have sufficient levies or funds to pay costs, including, but not limited to, salaries and wages, costs and services, supplies, equipment, capital improvements, repairs and similar expenditures.
(C) Transfer to fund. On or before December 31 for 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 moneys, upon making a finding that the proposed use of the funds is consistent with the intent of the fund.
(Prior Code, § 33.01) (Ord. 2004-1, passed 4-13-2004)