Funds may be withdrawn and used for the sole purposes, as defined in the specific reserve’s section, exclusively under the following conditions:
(A) Authorization for planned use of reserve funds.
(1) Budgeted projects. The project is part of and specifically identified in Water Department’s annual budgets: Chapter 34, Tax and Finance; Appropriations for Fiscal Year (current fiscal year) (published separately and on file in the office of the Town Clerk), General Information, Water Department Operating Budget, (see appendix 3.19-B1 in document published separately and on file in the office of the Town Clerk) or Water Department Capital Improvement Budget, (see appendix 3.19-B2 in document published separately and on file in the office of the Town Clerk).
(2) Procedure. The town will follow the standard procedure for project contracting when withdrawal of funds from any reserve, except the loan repayment and capital equipment reserves, for a budgeted project, following these general steps;
(a) Public notification of a water project;
(b) Initiate contract action;
(c) Council meeting:
1. Project plan; details;
2. Intent to finance the project with funds from a specific reserve; and
3. Resolution.
(B) Authorization for emergency use of reserve funds. This chapter gives the Mayor (or Mayor Pro Tem) the authority to declare a “water emergency” for the specific purpose of using funds from the system reserve to pay for the emergency repairs of the water system.
(1) Water emergency.
(a) An emergency exists which significantly threatens the continued operation of the water system; and
(b) There is insufficient time to authorize the use of reserve fund for the project in order to effectively address the emergency situation.
(2) Procedure. Prior to the actual withdrawal of funds from the system Reserve for an emergency project, steps (a) Documentation; and (b) Notification below, shall be completed.
(a) Documentation.
1. Declaration shall be within 48 hours of the detection of the condition.
2. A document shall be presented to the Town Clerk for verification of the action.
3. Description of the condition.
4. Estimate of time and cost to repair.
5. Authorization of Town Clerk to transfer funds from the system replacement reserve as needed to meet payment requirements.
6. Signed by Mayor (or Mayor Pro Tem) and one additional Council member.
(b) Notification. Town Clerk will immediately upon receipt of the documentation inform the following individuals of the “water emergency” with a copy of the declaration.
1. Town Council.
2. Town administration staff.
3. Public Works Director.
4. Water Board members.
5. Public notification.
(c) Hold an emergency Town Council meeting within ten days of declaration. Pass an emergency ordinance-Water Department budget amendment for immediate use of funds needed.
(d) Followup. At the next regularly scheduled Town Council meeting, continue to follow up the emergency ordinance process with a first reading of a budget amendment ordinance.
(Prior Code, § 4.06.020)