(A) Account created. There is hereby created a water system reserve account within the town’s Water Fund, previously known as the “water maintenance account.”
(B) Purpose of reserve. The purpose of the reserve is to allow money to accumulate from fiscal year to fiscal year for the purposes of discharging the debt incurred by the town to construct the water storage, transmission, and distribution system or to make expenditures for capital improvements (or maintenance of capital improvements) to the water system and any and all items related thereto. This reserve is created in recognition that the water storage, transmission, and distribution system is a critical capital improvement within the town which from time to time requires large expenditures of money.
(C) Disbursements. The Council may, from time to time by resolution, establish a sum to be placed in said water system reserve account. Disbursement from the reserve account shall be made by transfer to a revenue account within the Water Fund and expended pursuant to an appropriation of the fund for the purposes established herein.
(Prior Code, § 9-1-3) (Ord. 342, passed 3-18-2004)