(A) This section authorizes the creation and use of a WWDC Sinking Fund Reserve as a condition of our loans and grants from the Wyoming Water Development Commission (WWDC).
(B) This reserve is classified as a restricted reserve.
(1) Objective.
(a) To remain in total compliance with the terms and conditions of our loan and grant contract with the WWDC.
(b) To be used for repairs and maintenance to the system.
(2) Required amount. Fully funded at $500,000.
(3) Source of funds.
(a) This reserve is fully funded at the inception of this chapter. Any use of funds from this reserve shall be replaced from water fees at a rate of one-tenth (10%) per fiscal year until fully funded.
(b) All earnings from investments of this reserve’s funds shall be reinvested into the system reserve.
(4) Authorized uses.
(a) Any use of this fund shall be authorized by the WWDC.
(b) Sole purpose of this reserve is for the replacement of the water system per WWDC loan agreement.
(c) At the end of any contractual obligation to the WWDC, this reserve will be terminated and all funds transferred into system replacement and upgrade reserve.
(5) Administration. This section authorizes the Town Clerk to deposit, withdraw and pay obligations that are in full compliance with this chapter.
(Prior Code, § 4.06.030)